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Are you financially comfortable?
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Andrew_Ryan_89
Posts: 530 Forumite
Hey guys,
I thought it would be interesting to know whether people on this forum are financially comfortable. The reason I ask is because I have seen some stories popping on a number of news channels saying something along the lines about how "shocking" it is that 33% of someones salary is going on mortgage/rent. It left me a little baffled as I thought that a reasonable amount to be spending on living, if not more!
Between my partner and I, exactly 33.52% of our combine salary goes on our mortgage. Including the mortgage, all other monthly expenses (utility bills, council tax etc. and a couple other direct debits) takes just over 54% of our salary.
At the end of each month, we have a disposable income of just over £2,000 or £1,000 each. This does not include any type of grocery shopping or lunch money. We are though currently saving for a wedding so a lot of that extra money has gone in to fixing the odd things in the house as we recently moved in and saving. At a work dinner a colleague brought up this topic and when I mentioned my disposable income, they all seemed pretty shocked though they all earned more than I do.
I owe it to my new job why we are quite comfortable financially but I'm quite a pessimistic person and so always preparing for the worst. Or at least trying to anyway. After the wedding, I will be concentrating on building up a decent saving pot for a rainy day. We also plan to overpaying the mortgage by around £1,000 a month in order to get the monthly payment down to under £1,000 (we got a 5% mortgage).
The main thing at the moment is the wedding and I am sure when that is done (hopefully) children and maternity leave will be another concern. :T
I thought it would be interesting to know whether people on this forum are financially comfortable. The reason I ask is because I have seen some stories popping on a number of news channels saying something along the lines about how "shocking" it is that 33% of someones salary is going on mortgage/rent. It left me a little baffled as I thought that a reasonable amount to be spending on living, if not more!
Between my partner and I, exactly 33.52% of our combine salary goes on our mortgage. Including the mortgage, all other monthly expenses (utility bills, council tax etc. and a couple other direct debits) takes just over 54% of our salary.
At the end of each month, we have a disposable income of just over £2,000 or £1,000 each. This does not include any type of grocery shopping or lunch money. We are though currently saving for a wedding so a lot of that extra money has gone in to fixing the odd things in the house as we recently moved in and saving. At a work dinner a colleague brought up this topic and when I mentioned my disposable income, they all seemed pretty shocked though they all earned more than I do.
I owe it to my new job why we are quite comfortable financially but I'm quite a pessimistic person and so always preparing for the worst. Or at least trying to anyway. After the wedding, I will be concentrating on building up a decent saving pot for a rainy day. We also plan to overpaying the mortgage by around £1,000 a month in order to get the monthly payment down to under £1,000 (we got a 5% mortgage).
The main thing at the moment is the wedding and I am sure when that is done (hopefully) children and maternity leave will be another concern. :T
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Comments
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People are going to have vastly different views on what they feel being "financial comfortable" means - for some it might mean having enough left over at the end of the week to buy a bag of chips on the way home, for others it might be buying a new BMW every 3 years. Different standards of living, expectations and age are going to be major factors too.0
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In short, no. Compared to you, no way. Perpetually single person households will always be bottom of the heap.0
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I'm a Single person household, and yes, I'm very comfortable.
BUT.
That's because I live within my means - I don't buy a new car (or a car!), go out regularly, or indulge expensive whims.
It does mean I'm a little regretful I can't afford the kitchenaid that's currently heavily discounted - for which I have a prefect spot on the counter for; But I could afford the new washing machine I needed last month.
Swings and roundabouts.That sounds like a classic case of premature extrapolation.
House Bought July 2020 - 19 years 0 months remaining on term
Next Step: Bathroom renovation booked for January 2021
Goal: Keep the bigger picture in mind...0 -
Not really, we live within our means and 'get by'
As a comparison, we are bringing up a family of 5 + 2 pets on what you have as disposable income, and we both work!
ETA - We don't have any debt, other than our ( small ) mortgage, which is probably why we get by :-)
Linda xThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
People are going to have vastly different views on what they feel being "financial comfortable" means - for some it might mean having enough left over at the end of the week to buy a bag of chips on the way home, for others it might be buying a new BMW every 3 years. Different standards of living, expectations and age are going to be major factors too.
True and the point I was trying to get across in the thread. I live relatively below my means. I don't take out any debt and happy to keep my car for 10 years. When I do get a new one, I'll save for 6 months or so I buy it in cash. With my car insurance, I pay that yearly but every month put money aside for it and the road tax.
Don't go abroad pretty much ever and not much into clothes. My biggest expense is probably food as I love to go out and eat!0 -
Yes; but to get into the ins and outs would cause too much strife from some forum members. Our income is above UK average household income but we are lucky in that our home is much less than the average house cost.
Xxx0 -
I would say I am comfortable: none of those really expensive things, children, here!But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Housing costs, including broadband, Netflix and food come to approximately 45% of our household income.
However I'm currently on mat leave, so it's more like 65% of our household income.
When I return to work, 25% of our joint income will be child care. So 70% of our joint income will be 'living' a further 10% will be transport (required for our jobs) 1% is savings for our son and the rest is clothes, birthday and Christmas presents, meals out, hobbies, family days, holidays and savings. Pre children I saved approximately 10% of my income, husband approximately 3% despite us earning roughly the same (him slightly more). When I return to work I'll try to save 1% but without vastly changing our standard of living, that will be difficult.
We don't live hand to mouth, but I do need to choose between clothes and holidays. I'd say we are reasonably comfortable but not overly so. We could afford the new washing machine and to fix my car if it broke down but not to move house or a regular cleaner or gardener.
Depends on your description of comfortable.
Household income above the national average, but housing costs also slightly above, I think.0 -
I'm a Single person household, and yes, I'm very comfortable.
BUT.
That's because I live within my means - I don't buy a new car (or a car!), go out regularly, or indulge expensive whims.
It does mean I'm a little regretful I can't afford the kitchenaid that's currently heavily discounted - for which I have a prefect spot on the counter for; But I could afford the new washing machine I needed last month.
Swings and roundabouts.
Same here, I would LOVE a KitchenAid!
I have never been financially comfortable, which was probably what originally led me to this site.0 -
I am a single person just shy of 30 and I would say I am very comfortable. I have hobbies which some might consider extravagant, but on the other hand I live in a small 1-bed flat and many would probably find my general lifestyle boring (no car, don't smoke, don't drink much, in bed by 10 most nights).
At the end of the month I am on average worse off than my childless friends in couples, but better off than my friends with children (whether single or in a couple).0
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