Income & Outcome

[yourefreetodowhatyouwanttodo]

Please can you give me opinions on my income and future income / spending

single mum 28 1dc
income 3600
child maintainence £1050

outgoings /bills = £1054.94

Nursery £320
Food £200
Sofa £123
Fuel £100
AA £30
Gym £30
Internet £33
Phone £44
Contacts 42
HMRC repayment £632
child 200

total = £1747
savings £2043 - tax.

I want to change my car and have a better standard of living

Future income £7000
child maintainence £1050

outgoings /bills = £1054.94
Nursery £320
Food £300 (change to farm shop)
Sofa £123
Fuel £100
AA £30
Gym £94 (DL)
Internet £33
Phone £44
Contacts 42
Dining out £300
Car £1370
beauty £100
child £300

Total = £2859
savings = £4141 - tax

Sorry but it's not very clear. Is that your wished for future income or is it happening. I think you can afford to change your car on the income you have now.

Thank you

apolgies
do you think the second future income, the car is reasonable to buy with this income

Don’t you live in a house? Or flat? No rent? No mortgage?

Yes I do that’s covered under bills and the child maintainence £1054
Sorry it’s not clear

It's insanity to spend nearly £1400 pm on a car unless you already own your home outright and are making decent pension savings, have emergency fund, savings for DC etc.

Is your household income £4750? And all your bills are covered by the child maintenance?
Where is the extra £2250 to make it £7000 coming from?

Outgoings or expenditure

Not ‘outcome’

What kind of car is it? Seems v expensive

It's not very clear at the moment. Can you explain:

1. Where the change in income from £3600 to £7000 is coming from. Is this e.g. a new job you are about to start?
2. What does the saving - tax mean? Is this money you are putting into savings each month? What is the -tax for? Are you self-employed and putting money aside for tax each month? If so this needs to be a separate line in your expenditure.
3. What does outgoings/bills include? mortgage/rent, council tax, energy?

It'd also be helpful to know what you want people to coment on. Is it just the car or your general situation?

This makes no sense at all - I can’t work out what your incomings and outgoings are.

you earn 3,600 and receive another 1, 050 in child maintenance? So total income £4, 650? (Net or gross?)

Your outgoings are 1054.94 + all the other figures £1754. So your total outgoings are £2080.94 - is that right?

and the future sums are these aspirational or happening?

Hi all sorry to clarify

i have LTD company
the money will be coming from the company.

the first line is what I currently earn
I have no mortgage but shared ownership rent. Child maintainence covering all bills

The list of expenses is what comes out of my pocket currently .

Future income is what I will have from September
the increase is aspirational of what I wish to change.

i suppose what I am asking , do you think the new expenses of the future income from September is realistic on the income?

From the disposable income
£500 will go into pension pcm
£200 savings for DC , most likely more

rest savings + holidays

I'd be buying a house before I got an expensive car.

If you own a shared ownership property are you able to buy the part of your home that you're currently renting? Or plan to move to a property you can fully own? That would likely always be a good idea when you have a decent income.

Do you have good income protection insurance if you cannot work?

I can’t even articulate how insane I think spending 1370 pcm on a car when you rent is.

If you're planning on significantly expanding your business, have you accounted for crossing the VAT threshold if applicable?

Also any increase in nursery fees if you're working more?

What happens if DCs father stops paying maintenance for whatever reason?

The financial flow chart gives a good outline of the order of priorities that you should be thinking about

https://ukpersonal.finance/flowchart/

yes plan to move to a property I own in the next 5 years
the child maintainence covers the rent
i bought 40% share outright

You spend £200 a month on food for you and a child? Every money? Including extra, nappies, toiletries and cleaning products??

I would not be paying £1400 a month for a car when you don’t own a home for your child. Bizarre priority.

Put the money you’re thinking of spending on a car into monthly savings towards a house, focus on that, it’s an insane amount to consider spending on a car.

You can get a different car, you don’t need to spend that much on a car it’s ridiculous.

Your presentation and question is quite confusing but you seem to be missing an awful lot of normal expenditure e.g. rent in the remaining 60%, clothes, holidays, gifts, council tax, socialising, insurances, house and car maintenance, so many more items.

I wouldn't commit to spending that amount on a car each month until I had sorted my property (owning more than 40%) maxed my pension contributions, no other debts, got 6 months expenditure in savings and had at least £2k left at the end of each and every month, then I would know I could afford it.

Are the income amounts gross? the -tax further down suggests they are, but tax will presumably be a very important part of your financial planning. Is that HMRC repayment about to end?

Aside from the car being an insane purchase none of the rest of your figures seem remotely right (or in keeping with the idea you might spend £1400) on a car.

are you really only spending £300 on food? And no clothes, presents, holidays?

I wouldn't be budgeting anything based on aspirational income.

Talk to your accountant about any benefits to leasing the car through your Ltd company. Will likely be BIK considerations but may be offset against savings in VAT, etc. Also, lease payment would come directly from company funds rather than taxed income from you