Monthly budget and new house - are we cutting it too fine?

Heth_2

We are first time buyers and just about to make an offer on a house. It is a bit beyond our budget, so wanted advice as to whether we are being over cautious or should be ok.
If we had to pay the full asking price we would then have as outgoings:

644 mortgage (we are putting down 25% deposit, and this is just under 3.7 times joint salaries)
200 petrol
110 bills (gas, electric, phone, tv license, broadband)
65 monthly train fare to work
225 food
127 car loan
50 income protection and life insurance
25 house insurance
60 car insurance
60 clothes
200 miscellaneous
210 one off expenses (car service, birthdays, holidays...)
80 council tax

This leaves us about 100 pounds a month 'spare' to put back into our savings accounts (we will have no savings once we have paid deposit). I'm basically scared this is cutting it too fine. I know some of the above figures are easily cut back on, but then i like contingency money for stuff going wrong as well.
Cheers.

ms_london

Heth wrote:

We are first time buyers and just about to make an offer on a house. It is a bit beyond our budget, so wanted advice as to whether we are being over cautious or should be ok.
If we had to pay the full asking price we would then have as outgoings:

644 mortgage (we are putting down 25% deposit, and this is just under 3.7 times joint salaries)
200 petrol
110 bills (gas, electric, phone, tv license, broadband)
65 monthly train fare to work
225 food
127 car loan
50 income protection and life insurance
25 house insurance
60 car insurance
60 clothes
200 miscellaneous
210 one off expenses (car service, birthdays, holidays...)
80 council tax

This leaves us about 100 pounds a month 'spare' to put back into our savings accounts (we will have no savings once we have paid deposit). I'm basically scared this is cutting it too fine. I know some of the above figures are easily cut back on, but then i like contingency money for stuff going wrong as well.
Cheers.

Hi there.

Although you might only have £100 a month "spare" - the £225 for food, £200 misc, £60 for clothes and £210 for one off expenses - leave more than enough flexibility within your budget. Could you not trim these down a bit and perhaps save a bit more? £200 a month on food for two people seems pretty high and could be cut back, some months perhaps you wont buy new clothes so will have an extra £60 to save.

If you feel comfortable with saving this amount then go for it, as your circumstances change perhaps you could save more, but at least you are saving - thats always a good sign.

Ms_London

black-saturn

Do you need a car if your training it to work every day?

You could cut your food bill down by making most things home made and from scratch (look on the Old Style board for tips),

£60 for clothes is a lot, perhaps you could cut this down.

rchddap1

We live in a new 2 bed house and spend £100 on food for a month, so there are areas where you can make cutbacks. However, I would suggest that you need to be very careful, as your current budget doesn't allow much room to spare

Penny-Pincher!!

Hi

Not very good with stuff like this, but what happens if the interest rates go up...or one of you loose your job Figures seem aimable ATM though

Im sure though, that someone will be able to offer more advice than me.

My main advice would be, to seriously think about everything. Im just 31 and up to 18 months ago OH & I were earning over 55k a year. Then, I became very ill and had to finally quit work all together in June 2005. My OH is now my FT carer and live entirely on benefits :eek: I am determind to get back to work ASAP, even if its from home as Im bored out of my head..LOL

I dont mean to scare you, but just to remind you that you never know whats round the next corner, so make decisions wisely

(((((((HUGS))))))))))) All the best.

PP
xx

Heth_2

The petrol and train costs are because my husband drives to work, and i get the train. We work in opposite directions so there is no way we can change this i don't think.
I know it seems we spend loads of food, but we do cook everything from scratch. I just love cooking lovely things too much i guess....

Tim_L

You are always stretched when you buy a house, and things do gradually improve. I'd go for it, personally, as you've enough slack in the miscellaneous and one off expenses for some additional saving.

kenshaz

Just adjust as you go along,keep in touch with this site,I am sure that you have made yours minds up any way ,you just want reassurance and I feel that you have that .Be happy