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  • FIRST POST
    • nicmalauren
    • By nicmalauren 6th Jan 18, 12:54 PM
    • 60Posts
    • 65Thanks
    nicmalauren
    Where am I going wrong?
    • #1
    • 6th Jan 18, 12:54 PM
    Where am I going wrong? 6th Jan 18 at 12:54 PM
    Hi folks,

    Posting because my aim for 2018 is to be debt-free (excluding my mortgage). Have generated a SOA to see how do-able anyone thinks this may or may not be. Any advice on where I can skim down my outgoings is gratefully received as I seem to be dipping into my overdraft when by my own calculations I shouldn't need to. I know I overspent at Christmas, and now I need to get back on track.

    So here goes nothing:

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1213
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1213


    Monthly Expense Details

    Mortgage................................ 186.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 2.5
    Council tax............................. 56
    Electricity............................. 30
    Gas..................................... 0
    Oil..................................... 35
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 4.99
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 27.49
    Groceries etc. ......................... 60
    Clothing................................ 10
    Petrol/diesel........................... 9
    Road tax................................ 1.5
    Car Insurance........................... 6.25
    Car maintenance (including MOT)......... 2
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 16
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 4
    Contents insurance...................... 4
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 574.93



    Assets

    Cash.................................... 0
    House value (Gross)..................... 70000
    Shares and bonds........................ 0
    Car(s).................................. 300
    Other assets............................ 0
    Total Assets............................ 70300



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 50358.3..(186.2)....2.44
    Total secured & HP debts...... 50358.3...-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    IKANO Loan.....................300.......300.......0
    MBNA CC........................1485......25........0
    VIrgin CC......................2744.28...27.44.....0
    Loan from Mum..................557.......0.........0
    Overdraft......................468.85........0.... .....15.84
    Total unsecured debts.......5555.13...352.44....-



    Monthly Budget Summary

    Total monthly income.................... 1,213
    Expenses (including HP & secured debts). 574.93
    Available for debt repayments........... 638.07
    Monthly UNsecured debt repayments....... 352.44
    Amount left after debt repayments....... 285.63


    Personal Balance Sheet Summary
    Total assets (things you own)........... 70,300
    Total HP & Secured debt................. -50,358.3
    Total Unsecured debt.................... -5,555.13
    Net Assets.............................. 14,386.57


    Anywhere it says "Car", substitute the word "Motorcycle" and the low figures should make more sense. The insurance, tax, MOT etc are all paid annually so I just divided the amount by 12. Same for my ground rent, and buildings/contents insurance as they're also paid annually.

    Ideally I want to be able to get to the point where I have enough set aside so that I can pay my rates (aka Council Tax in rest of UK) and my phone line rental annually as that typically results in savings too.

    I would also like to build up an emergency fund, especially as my boiler is on it's last legs (hence the high monthly oil spend - it's horribly inefficient) having had several repairs in the last 12 months but I'm trying to hold off replacing it until 2019 as then I'll qualify for a boiler grant (boiler will be 15yrs old by then). Not sure whether I should make provisions for this now, or if throwing all my money at debt first is the better plan.

    I'm not really sure where I should be distributing my money to make it go furthest. I'm pretty sure my top priority should be getting out of my overdraft as it's the only one that attracts any interest at the moment, but it's also the only one that I'm not obliged to pay anything towards (I would feel terrible not paying my mother back as she's partially relying on the income from me at the moment).

    I currently pay £111 per month back to my mum, so I was thinking that as the last £300 payment on the IKANO loan is this month (yay!) I could then put that towards clearing my debt to her from Feb onwards, then once it's cleared (March time?), start paying £400 towards one of the credit cards? The 0% interest deal on both of the CCs expires in September 2018.

    So far, have signed up for the January Bring Your Lunch To Work Challenge, and have set myself the challenge of not buying any food this month (except milk) to force me to clear out the freezer and be inventive with what I already have in the house.

    As I say, all advice welcome.

    TIA,
    Lauren
    "The future belongs to those who believe in the beauty of their dreams."
Page 2
    • pennystretcher
    • By pennystretcher 11th Jan 18, 11:41 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    For electricity - spend a bit of money and replace the bulbs that are used most with LED light bulbs, you'll be surprised how quickly you save the money back. Also remember not to leave things on stand-by.

    When I leave the house, I know there are five things left on - my alarm clock, fridge-freezer, router, boiler and my phone (I remove the handset from the charging base tho). My electricity bill is £17 per month even though I work from home quite a lot.

    Apart from that - looking at your figures, once you get the IKANO loan paid off and clear your overdraft, you can then add say £50 to emergency fund and the rest towards the CCs...and possibly start small payment towards your loan from mum as well If you stick to the plan you'll be debt free in no time and then maybe start paying off your mortgage quicker?
    Mortgage free
    • nicmalauren
    • By nicmalauren 15th Jan 18, 8:47 PM
    • 60 Posts
    • 65 Thanks
    nicmalauren
    Thanks for the advice.

    I did a snowball calculator and I think route I'm going to take is:
    - Final IKANO payment this week,
    - then next month take the £300 from it and add a bit extra so I can clear the loan from Mum,
    - after that I have at least £400 a month to put towards emergency fund and CCs.

    Once I'm DF, I'd love to start working towards MF - in theory, (if I lived like a pauper) I could have it paid off in less than ten years!

    Spending diary has been interesting. My food costs were about right, but I hadn't accounted for other consumables like toiletries, bin bags etc. I also seem to buy a lot of alcohol... but that's a whole other kettle of fish!

    Budgeting for monthly bills when when I get paid weekly also needs a bit of work!
    "The future belongs to those who believe in the beauty of their dreams."
    • suki1964
    • By suki1964 15th Jan 18, 9:10 PM
    • 11,101 Posts
    • 29,656 Thanks
    suki1964
    Thanks for the advice.

    I did a snowball calculator and I think route I'm going to take is:
    - Final IKANO payment this week,
    - then next month take the £300 from it and add a bit extra so I can clear the loan from Mum,
    - after that I have at least £400 a month to put towards emergency fund and CCs.

    Once I'm DF, I'd love to start working towards MF - in theory, (if I lived like a pauper) I could have it paid off in less than ten years!

    Spending diary has been interesting. My food costs were about right, but I hadn't accounted for other consumables like toiletries, bin bags etc. I also seem to buy a lot of alcohol... but that's a whole other kettle of fish!

    Budgeting for monthly bills when when I get paid weekly also needs a bit of work!
    Originally posted by nicmalauren
    Oh the alcohol does add up, very quickly and to a big chunk of expenditure

    I just quit drinking again, this time DH has come along for the ride, well he promised to do dry January at least . Anyways our booze habit was a few in the pub after work, a lot more the weekends. So, come Saturday he says lets go down, but I'll drink Coke, so down we go and the pub owner is showing off her new 70k car. He's like how can she afford that, and I retorted, you have paid for it

    He has finally sat down and totalled up how much he spends in a month on booze

    So now he says, that's it, Saturday's only if then, and he's just treated himself to a classic car with his projected savings

    My savings are for my Australia fund

    It really is worth keeping track of the spends. I knocked smoking on the head last year so I could start my Australia fund. I only work pt on NMW , but I don't want to miss out on the big stuff either
    if you lend someone £20 and never see that person again, it was probably worth it
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