Living alone, spending money question.

MallyGirl · 18 October 2016 at 4:32PM

Nubnub wrote: »

currently my credit card isn't cleared, but will be cleared by the time of the move, and im my rough budget plan i have allotted £50 a month to be put on there if needed

your CC is just a payment vehicle, it is not an outgoing. Anything that gets put on it should feature against a proper heading in your budget. Setup a DD to pay in full each month so you don't get hit with interest or late charges.

I would plan to have a very careful first few months till you see how much the bills really are. You are moving in just as Winter really kicks in so bills could surprise you. Then there is Christmas.
Have you included TV licence, water rates, council tax, home AND contents insurance, phone land line, pet insurance, a small decorating fund?
Do you have furniture for your new place - freecycle/gumtree can really help here. Same goes for white goods - fridge, washing machine, kettle, toaster.
Do you have curtains, bedding, towels?
Then there is all the little stuff - an airer, pegs, tea towels, cutlery, pans, crockery.
Maybe you have all this stuff already but I know that I didn't when I bought my first place.

EssexHebridean · 18 October 2016 at 8:38PM

Loads of great advice above. I'll second the suggestion to put together a Statement of Affairs too - they really aren't just for those in debt - they can help you budget as well. Remember you'll have a lump sum when you first start for your buildings & contents insurance (You said a house - if it's a rental then the landlord will probably cover the buildings insurance but you still need contents. If you decide to do your first years insurances paid over 12 months remember to put the same amount again into a savings account so that when they are up for renewal you have the money there ready. The same applies to your car costs - open a specific savings account and set aside money each month for your next year's insurance & tax, plus servicing costs, MOT and depreciation on things like tyres.

Set your CC now to clear the full balance every month - that or simply don't use it. If you're already thinking about "needing to put things on the CC" then you're thinking in the wrong direction already and potentially steering yourself into trouble. Think of a CC as a useful device for gaining extra consumer rights on some essential purchases, NOT as something to get you out of trouble if money is tight - that is the very last situation in which you should use a CC in my opinion.

Setting yourself on the right road now with proper budgeting will set you up for life - good luck in your new home and remember if you want another set of eyes over your budget we'll be happy to help!

Ilona · 18 October 2016 at 9:31PM

EssexHebridean wrote: »

Loads of great advice above. I'll second the suggestion to put together a Statement of Affairs too - they really aren't just for those in debt - they can help you budget as well. Remember you'll have a lump sum when you first start for your buildings & contents insurance (You said a house - if it's a rental then the landlord will probably cover the buildings insurance but you still need contents. If you decide to do your first years insurances paid over 12 months remember to put the same amount again into a savings account so that when they are up for renewal you have the money there ready. The same applies to your car costs - open a specific savings account and set aside money each month for your next year's insurance & tax, plus servicing costs, MOT and depreciation on things like tyres.

Set your CC now to clear the full balance every month - that or simply don't use it. If you're already thinking about "needing to put things on the CC" then you're thinking in the wrong direction already and potentially steering yourself into trouble. Think of a CC as a useful device for gaining extra consumer rights on some essential purchases, NOT as something to get you out of trouble if money is tight - that is the very last situation in which you should use a CC in my opinion.

Setting yourself on the right road now with proper budgeting will set you up for life - good luck in your new home and remember if you want another set of eyes over your budget we'll be happy to help!

Good points EH. The OP said it's a mortgage.

Ilona

[Deleted User] · 18 October 2016 at 9:39PM

Ilona wrote: »

The OP said it's a mortgage.

Then they'll need both building and contents insurance.

Helvetica_Van_Buren · 19 October 2016 at 9:16AM

Nubnub wrote: »

now is this enough to treat myself with?

It depends how much you want to spend on treating yourself.

I think you'll be sailing too close to the wind.

What about putting money aside for repairs?
An emergency fund for if you lose your job?
The price of food is going to rise - have you factored that in?
The weak pound will mean the cost of other things will rise also - have you got a tolerance in for increased energy costs?

You don't sound as ready as prepared as you ought to be.

EssexHebridean · 19 October 2016 at 9:26AM

Bedsit_Bob wrote: »

Then they'll need both building and contents insurance.

The contents insurance will need to be arranged and put in place on exchange of contracts so for this first year it will need to be split policies too - that may increase the costs a little unless the OP is going for a simultaneous exchange/completion.

e13 · 21 October 2016 at 1:21PM

EssexHebridean wrote: »

The contents insurance will need to be arranged and put in place on exchange of contracts so for this first year it will need to be split policies too - that may increase the costs a little unless the OP is going for a simultaneous exchange/completion.

I was given free buildings cover from exchange of contracts by my insurance provider. I just rang them up and they sent a covering note explaining that I was covered from exchange of contracts for no extra cost.

Living alone, spending money question.

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