Trying to save advice!

Firstly I'd say that you do deserve congratulating for sorting out your earlier financial situations and holding it together so well. Don't undersell yourself!

It's great that you're looking to save with a view to getting on the property ladder too - without question knowing that the roof over one's head is owned and cannot be taken away is a great feeling! Comments on the SOA in red as usual...

Clouds88 wrote: »

Hey guys I am just after some advice re my SOA and life going forward. I work part time in a good job and I probably will go back full time but when the children are older and my husband is more stable. My husband is out of work as currently suffering mental health problems (worked for 15 years before this and paid his taxes ect) so on top up benefits to help. Do you have any sort of expected end date where he is likely to return to some form of employment?

Obviously life throws these obstacles at us but I am not getting any younger (30 in a few years!) and I’d love to own my own house. Has anyone else on low income managed to save and do that? Feel free to move this post elsewhere if it’s not right for this board. At the moment I cannot work more due to my husband being my only childcare and his mental health is so up and down I can’t really rely on him to do more and I’m hoping obviously once he gets better he’ll be earning more again so it’ll be easier to save but I’m not sure when this will be? Any thoughts welcome.

Thanks!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 837
Other income............................ 0
Total monthly income.................... 2437

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 652 How does this compare with the sort of money you'd be looking at monthly for mortgage payments> While you're not in a position to go there yet, there's no harm in keeping stuff like that in mind.
Management charge (leasehold property).. 0
Council tax............................. 100 Do you pay this over 12 months or the default 10? If 10 then switching to 12 equal payments can help with budgeting.
Electricity............................. 30 Are you on the best tariff for this and the gas and have you signed up to the ME cheap energy club to keep a track of any new deals that might be worth looking at?
Gas..................................... 37
Oil..................................... 0
Water rates............................. 53 Yes, it's an expensive area you live in, isn't it.
Telephone (land line)................... 0
Mobile phone............................ 43 Are you anywhere near the end of a contract? How many phones? Can either (if there are multiple) be switched to a SIM only deal?
TV Licence.............................. 0 You don't watch any live/"as live" TV at all?
Satellite/Cable TV...................... 0
Internet Services....................... 29 Allowing that this is presumably internet only is this the best deal you can get?
Groceries etc. ......................... 400 This is high, I agree with what others have said. Maybe time to cut back on buying pre-prepared snack type food if this features, and make the McDonalds trip a treat rather than a habit? Cooking from scratch for all meals is a great way to trim spends and as you are working part time that ought to be possible.
Clothing................................ 50 I'd question whether this spend should be needed every month?
Petrol/diesel........................... 120 This is really quite high - have a read of the guide on the main site about keeping costs down for motoring, and make sure to know which fuel stations locally offer the best prices.
Road tax................................ 2 Are you actually paying this as a monthly DD? If so stop and pay annually as monthly carries a premium I think. Set the money aside each month so it's ready when you come to need it.
Car Insurance........................... 15 Excellent price - and another one to work on paying annually and setting the money aside towards as again, you'll be being charged a premium to pay over 12 months.
Car maintenance (including MOT)......... 20 Sure this is enough? You seem to do high mileage so presumably at least an annual service if not more often, plus tyres (a set a year at that mileage?), MoT Test, consumables like wiper blades, screenwash etc...?
Car parking............................. 0
Other travel............................ 28
Childcare/nursery....................... 0
Other child related expenses............ 24
Medical (prescriptions, dentist etc).... 30 Any savings to be made here with a pre-paid card for prescriptions for example?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 5
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 This is pretty high if you're looking to seriously think about saving for a deposit.
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0 You mention that you're going on holiday - should there not be money here that you're putting aside for spending money etc each month, even if the holiday itself is already paid for? (And if it is, and spending was already covered, it would still be a good idea to continue saving ahead of the next holiday, too).
Emergency fund.......................... 30 Where is this going - your cash assets say zero?

Total monthly expenses.................. 1783


Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...AP
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,437
Expenses (including HP & secured debts). 1,783
Available for debt repayments........... 654
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 654 This is great - so if this was accurate then that's over £7800 you can save each year!

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,000

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I'm always a bit wary when I see an SOA where someone says they are saving money for an emergency fund, clothing, car maintenance, presents etc, but cash assets are at nil. It does suggest that your SOA is prepared to reflect what you think you *should* be doing rather than what actually happens - and if so that is the first thing you need to address.

Things like McDonalds trips for the kids should be seen as a treat, in my view, rather than "something that we do routinely" - and the financial cost should also not be understated. 2 x happy meals for the kids plus a standard adult meal for one adult with them (more obviously if both parents are there) is realistically going to be costing you over £500 a year all told. That's more than your car insurance and tax combined - in fact more than double that. On the groceries front I'd also be questioning whether people are eating food just because it is there rather than because they need that food - if so a small change here and there to what you buy might help - if you routinely buy crisps, cakes or biscuits for example, then just cutting back on those might a) cut your spend and b) increase the health of your household. Those who have suggested Aldi/Lidl for food shopping are also spot on - particularly the super 6/pick of the week fruit & veg offers - these can be great to plan meals around. On that subject also - do you meal-plan and shop to a list? If not then that's one to start as it can dramatically reduce spending all on its own.