I'm fed up with my budget - advice needed

benjo

It is a hard slog when your budget is so tight, but stick with it, you got yourself onto the property ladder dont make a backward step unless you really cant avoid it.

I know that the thought of taking a second job must be deflating, but the idea of taking a bar job sounds like a good compromise - half work/half social. Perhaps to make it feel less daunting, set yourself a goal of working your socks off with a second job for 4 months, knock yourself out during that time, save, then go have fun for the next 4 months - if there is an end in sight it wont seem nearly so bad.

If you dont fancy a full time lodger, why not advertise for people who work in the area monday - friday (you get a lodger free weekend) or look into boarding mature exchange students who come over for a few months at a time, or a full time uni student (depends how close you are to a uni) they will arrive late September and be gone by early May (usually).

Sell your unwanted gear on ebay, look at the freebie board there are posts about survey sites - they dont bring in huge amounts of money but are worth taking a look at since the effort to reward ratio is ok and come christmas you might find yourself with enough gift vouchers to cover presents.

Check out the comparison sites, see if you can get a better deal on telephone/utilities/insurance.

Set yourself some short term goals and keep us informed.

charliee_3

pinkshoes wrote: »

Why don't you rent your 2 bed apartment out then RENT a studio?

but do you realy think he'd be able to make enough rent to cover a £644 mortgage plus costs and a contingency for if he doesnt have tenants for a few months?? he could end up in a much much worse position and lose his flat..

i think a lodger is the way to go... just make sure you choose wisely!

want2bmortgage3

just an update i haven't had a lot of time due to work but now i have a week off so can get a few things sorted out.

i am going to give a lodger a go and see how i get on with it. also going to look for part time work. both of these could bring me in another 5/600 a month which would make things look a lot better.

i will see how that goes. in the future when house price go up a bit i may consider moving house. one idea (if i dont enjoy having a lodger) is to downsize to a 1 bed/studio and reduce the mortgage that way. the other option (if i do like having a lodger) is to get another bedroom and possibly not as nice an area just in order to increase my income. 2 lodgers could pay my mortgage for me.

right now i have more debt on a credit card than i have in my bank so its a bit worrying, but i think when you are put under pressure you either fail or become more determined to succeed...

Fire_Fox

You don't have any service charge in your budget, don't you pay this? How is buildings maintenance handled otherwise? Your energy and water bills are fairly high - we pay £34 a month electric between two and £20 a quarter water between two.

You definitely need to increase your income - consider carefully how you want to handle the lodger situation. If you only want to do it temporarily as a means to an end, then live in the smaller bedroom yourself and let out the larger one. Do it for six months or a year, then take a break before you reassess. I have done this and it's OK - it's your property so you can get away with storing possessions in other parts of the flat. If you think it will be longer term then let the smaller room and try to find someone who wants a part-time home (mature student, someone who travels a lot with work). Get references and have a proper contract in place - again it's your flat so you have more power than if you were in a normal sharing situation.

The problem with bar work is you will be losing 20% to income tax, and will have to factor in the cost of travel time and conveniences such as being too tired to cook from scratch. Read up on the 'Up Your Income' board to make the internet pay for itself - surveys, cashback sites, matched betting ... These are all tax-free and involve no additional outgoings.

Unless you have equity you probably won't get another mortgage. Also it will cost you several thousand pounds to sell and buy a new place, and several further thousand pounds in a few years when you want to, say, move in with a partner and scale up again.

alexlyne

Did you get a mortgage on your current income.. blimey!

I guess that's why the economy is in the dire straits that it is!

lincroft1710

FireFox - how is it you only pay £80 a year for water???

pennee1981

Do you need a car? That swallows money, then there's all the unexpected things which can go wrong and cost you a couple of hundred quid which blows the budget for a month.

Do you live in walking distance of a rail station or bus stop? can you use a bike? I know it's not ideal, it's much harder to give up a car when you are used to having one, but you would save loads. We're trying to save for a mortgage but manage to live pretty comfortably because we don't have a car. Believe me, I'd love to get one, but it's that or buy a house at the moment.:rolleyes:

Fire_Fox

lincroft1710 wrote: »

FireFox - how is it you only pay £80 a year for water???

We are metered and careful. Mr. Fire Fox has quick showers; I shower at work a couple of days a week but I always turn the water off whilst shampooing, and use a leave-on conditioner. Other than that two or three loads of laundry a week, wash up every second day (lazy!) and a bit for drinking, cooking and flushing the toilet.

lincroft1710

Thanks Fire Fox, I have wondered about meter but as we are both at home all day and OH thoroughly waters "her" garden in summer, it'd probably work out more expensive.

RomansProperties

I rented out rooms on my first flat and this worked well for 3 years.
I would say this is your best option.
Use Gumtree or easy room mate to find people.
Gumtree is prob best as its free.