My budget

[Puzzledpussy]

Hi,

trying to save 50k asap as we need to extend. Taking on more debt, or remortgaging isn’t an option. Do you think we could raise this money within 4 years based on our current budget? See below 😀

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2[b]

Monthly Income Details[/b]
Monthly income after tax................ 3998
Partners monthly income after tax....... 1550
Benefits................................ 0
Other income............................ 636[b]
Total monthly income.................... 6184[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 611
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 147
Electricity............................. 186
Gas..................................... 79
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 28
Mobile phone............................ 48
TV Licence.............................. 13
Satellite/Cable TV...................... 69
Internet Services....................... 32
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 160
Road tax................................ 20
Car Insurance........................... 78
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 47
Buildings insurance..................... 27
Contents insurance...................... 11
Life assurance ......................... 48
Other insurance......................... 0
Presents (birthday, christmas etc)...... 150
Haircuts................................ 20
Entertainment........................... 300
Holiday................................. 300
Emergency fund.......................... 100[b]
Total monthly expenses.................. 3130[/b]
[b]

Assets[/b]
Cash.................................... 3400
House value (Gross)..................... 295000
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 0[b]
Total Assets............................ 312400[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 46000....(611)......4.4[b]
Total secured & HP debts...... 46000.....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Credit cards ..................12500.....125.......0
Loan for kitchen ..............13000.....354.......8.9[b]
Total unsecured debts..........25500.....479.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 6,184
Expenses (including HP & secured debts). 3,130
Available for debt repayments........... 3,054
Monthly UNsecured debt repayments....... 479[b]
Amount left after debt repayments....... 2,575[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 312,400
Total HP & Secured debt................. -46,000
Total Unsecured debt.................... -25,500[b]
Net Assets.............................. 240,900[/b]

[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

You're already servicing a lot of debt - I don't think you should take on even more debt right now. Pay off your debts, then think saving for an extension.

Pay off the kitchen loan asap.

Save up a 10k cash emergency fund asap.

Save after this.

Budget 75k for an extension.

It’s achievable in 20 months = 20 * 2575 = 51,500

It depends if your priority is to extend or be debt free, personally I’d go for debt free (apart from mortgage) first then start to save for the extension

PS Looking at your budget - Can you claim child benefit now the limit has been increased to 80k. Do you need a house phone? Electricity it’s very high I’d shop around for a better deal.

Definitely pay down the kitchen loan before saving as higher interest rate.

You could probably shave a little off your mobile costs is that 2 x £24 for adults or is it 4 × £12 incl teens?, anyway, you should be able to get it down to about £7 pp pm.

You could cut your TV costs by switching to one or two streaming services at a time and switching regularly.

What are you doing with the £2.5k that is apparently spare at the moment?

You're obviously spending it on something that's not been mentioned in quite a comprehensive budget as if not, you'd have a lot more savings than you currently do.

So what huge change that's not been mentioned will you need to make to free this money up to save for the extension?

On electricity, prices are much of a muchness so to save money you need to cut consumption significantly rather than shop around which will save a few quid a month tops.

Yes you have £2500 a month spare to save so you can easily do it if you actually save that. If you want more to save you could cut sky tv and get Netflix instead, and cut the holiday out for a couple of years. That would give you an extra £4k a year.

I would save to pay off the other debts early instead, then take out another loan, or add to your mortgage, for the extension.

If you have £2.5k 'spare' every month, why do you have a loan, £12k of credit card debt and only a small amount of savings so far? It looks like you've been spending that spare money on something?

Maybe their income has recently increased? Our income is £2.5k higher this year than it was at the same point last year, for various reasons.
Yes it’s entirely doable OP but it might take longer than you think, just because there is always something that comes up and makes you veer off track!