#3 My Budget

 So I'm sitting on top of a pile of bad debt towering £28k. I have a savings pot of £500. 

The most important thing now is to spend less than I bring in each month. So here's the budget I'm working towards each calendar month. Hopefully by putting it down on paper for the world to see will help me scrutinize to find additional ways to save.

Income

I earn £67k per annum basic or £5,583.33 monthly.

Deductions pre-tax:

£167 - 5% to my company pension

£124.00 Childcare Vouchers for children's nursery

Deductions including and post-tax:

£1,252.65 Tax

£378.40 National Insurance

£272.00 Season Ticket Loan (0% interest loan from work for Commuting train fare)

£346.00 Student Loan Repayment

Net Monthly Income = £3042.78

Outgoings

£797.18 Mortgage

£600.00 Groceries

£400.00 Entertainment

£281.65 House Loan re-payment

£150.00 Credit Card re-payment

£140.00 Council Tax

£136.00 Mrs Money Interest accessible money

£92.00 Electric and Gas

£35.00 Digital TV, Internet and Phone-line

£20.00 Mrs Money Interest Mobile

Total Outgoing = £2,652.22

Balance

Based on this budget should be able to put an additional £390 towards debt re-payment and then savings.

Thoughts….

1. Need to ensure this is realistic and first objective will have to be to stick to plan.
2. I do not include pension contributions/balance when considering my assets. Should do as this will quickly become a sizeable balance with employer matching.
3. Once Student Loan and House Loan are re-paid (target date to be confirmed) will have an additional £627 to add to the expected saving of £390 p/m. Totalling just over £1k per month. THIS EXCITES ME IMMENSELY.
4. Many variables not included within this budget (water, TV licence, car/home insurance/ MOT etc). Should total these and add figure into the outgoings to reflect this.
5. Are groceries and entertainment too large? Will see if this can be tightened.

Next I'll look at where this debt pile of £28k sits and based on this budget how quickly we can turn it into a small heap, then a little basket then clean fresh air.

Thanks for reading - although I have spent a lot of time analysing this budget someone with a pair of fresh eyes may spot issues/opportunities I have missed. PLEASE COMMENT AND LET ME KNOW so we can fix this together.