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  • FIRST POST
    • Therese1
    • By Therese1 12th Apr 18, 3:31 PM
    • 139Posts
    • 74Thanks
    Therese1
    I'm going to need a (new) budget
    • #1
    • 12th Apr 18, 3:31 PM
    I'm going to need a (new) budget 12th Apr 18 at 3:31 PM
    Hi all,


    I have made the decision that later this year I WILL be giving up the corporate life and heading off in a new (currently unknown!) direction. I am in an unenviable position in saving from many years of working & earning very well. I do plan to take a few months to think about what to do next. Whatever that is, it will be part time and will be on MY terms rather than via the hamster wheel.


    I appreciate that this is the Debt Free Forum and I'm not in debt. If anyone thinks the thread should be moved then please let me know - the SOA automatically brought me here.


    The CC is a new thing, in theory to let me see what I'm spending and possibly I'll use it for any new business costs once I know what I'm doing. It is 0% til May 2020, 6,000 limit and it will be paid off by then. I have never used credit cards before and I have no intention of paying a penny interest now.


    So, my questions are....


    What is a realistic budget going forward? Initially I wont be earning at all - I'm willing to give myself 6 months at this. However, part of this exercise is also to work out what I want/need to earn in my new life to live reasonably - I am not looking to match my current earnings, I want a life to go alongside work that interests me!


    Here is my "no earnings" SOA - but using my current baseline bills. Currently I bring in 2700 per month and don't need to budget so I have no idea on food, entertainment etc, but have made a guess on what it might 'need' to be in future. Feel free to advise me here!


    Household Information
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0 (currently company car)


    Monthly Income Details
    Monthly income after tax................ 0 (once I leave)
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 0


    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 114
    Electricity............................. 28
    Gas..................................... 28
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 16
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 16
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 20
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 42 (build & cont - stupid expensive but I keep missing the "auto renew" date. Lesson learned for Feb 2019!)
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    haircuts.............................. 15 (annual spend/monthly)
    Entertainment........................... 150 (is this reasonable)
    Holiday................................. 150 (I plan on going on lots!)
    Emergency fund.......................... 200
    Total monthly expenses.................. 1061.12


    Assets
    Cash.................................... 50000
    House value (Gross)..................... 120000
    Shares and bonds........................ 10000
    Car(s).................................. 0
    Other assets............................ 1000
    Total Assets............................ 181000

    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Santander CC...................1500......50........0
    Total unsecured debts..........1500......50........-

    Monthly Budget Summary

    Total monthly income.................... 0
    Expenses (including HP & secured debts). 1,061.12
    mount avail for debt repayments.... -1,061.12
    onthly Unsecured debt repayments. 50
    Amount short for making debt repayments. -1,211.12


    Personal Balance Sheet Summary
    Total assets (things you own)........... 181,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -1,500
    Net Assets.............................. 179,500


    I have a corporate pension which in theory will be 20,000 pa when I'm 60 in 12.5 years time.


    I will be giving up my company car so will have to buy one - I have no idea what the monthly running costs are likely to be? Any clues?


    Paid my mortgage off several years ago.


    Thank you,
    T
Page 2
    • D_M_E
    • By D_M_E 16th Apr 18, 10:12 PM
    • 1,482 Posts
    • 63,469 Thanks
    D_M_E
    Yes, you can make extra (voluntary) NI contributions to boost your State Pension

    https://www.gov.uk/voluntary-national-insurance-contributions

    By the way, I wish you well in your proposed venture.
    • enthusiasticsaver
    • By enthusiasticsaver 16th Apr 18, 11:56 PM
    • 6,400 Posts
    • 13,158 Thanks
    enthusiasticsaver
    [QUOTE=Therese1;74166835]
    Congratulations on putting yourself in a position where you can do this. how old are you and what is your pension provision so far


    Re your soa I agree road testing it or putting an app for tracking spending on your phone is a good idea. 200 for food for 1 sounds a lot but if you are used to picking up wine with your food shop or have shopped without restraint up until now it may take you a while to get used to living within a tighter budget.


    Car insurance may be high as we found when my husband gave his company car back although he had no accidents on his record the lease company insisted on it going into the car body shop to have chips and dents from hospital car parks sorted out (he was a medical engineer). That ended up as a 3k claim on his insurance record and consequently showed on his letter from company insurers. Buying a car was his biggest expense and car maintenance depends on how old a car you go for.[/QUOTE

    Thank you! It's funny this hasn't been a long term plan but once I'd starting thinking "I've had enough of this" I kinda realised that THIS is what all my savings were for - I've never been a big spender it didn't know what I was saving up for!!!128514;. Now, time is worth so much more than money to me.

    I am 48 and have company pension which will be 20k if I wait til 60 or about 16k if I cash in at 55. Do you think I need to keep adding to this going forward - separately or via this existing pension? Any tips would be much appreciated.

    if you leave employment I don't think you can continue to add to this pension. You can open a SIPP but maximum per year is either 100% of earnings if you are working or 2880 which is topped up to 3600 by HMRC.
    This last 6 months I've put away 1000 per month - basically what was left on payday. This wasn't too difficult but didn't involve scrimping or the cost of running a

    My plan is to go for a 1 or 2 year old car - with the theory being start with a good condition one and run it for as long as it holds out until uneconomical. I've no need to renew every 4 years etc.

    Ouch! Was that because of an early return? I've never had any recharge when I've changed car.
    Originally posted by enthusiasticsaver
    It was an early return as DH took early retirement at 58. Originally my DH planned to work until 60 and car deal would have run out then. He could have bought it but they wanted 17k for it and he wasn't over keen on the car anyway. We did exactly as you plan to and went for 2 year old cars.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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