'Running costs'

TTMCMschine

theartfullodger wrote: »

Compared with your £1,050 you are rolling in it...must be great to realise how lucky you are eh!!!

Cheers!

Lodger

They are working for their money, not just sitting on piles of cash drinking champagne! Lucky that they've got jobs in this climate, but not down to luck that they've probably worked hard to get their jobs. In reality they're probably not in the higher tax bracket, looking at the figure as a joint income.

Castleman

k1984 wrote: »

Our total combined yearly income is £48k which for us is after tax + pension is £2800 monthly.

Minus
2 X cars @ £200 each = £400
2 X student loan @ £100 each = £200
1 X Bank Loan @ £200 (34 months left )
total = £800 leaving £2000 per month

K

Student loan comes out from your pay slip, so will be in your net pay. Make sure you're not budgeting twice.

You should pay off your bank loan asap with your savings but leave your student loan to be repaid automatically through PAYE.

If you've never rented anywhere before, this is a good way of understanding what it costs to run your own place and you could do it for 6months before you find yourselves with a large mortgage that it turns out you can't afford.

blunt_crayon

hi k, i have a spreadsheet of our outgoings (we are a young couple in rented accommodation, after-tax income same as yours), if you pm me with your email address i'll send it over. you can easily modify it to suit your needs and it's good because you can play around with the figures to see how it changes the totals e.g. if interest rates go up.

£1050 doesn't sound a huge amount to me - our outgoings for bills, groceries etc not including rent come to about £850 which wouldn't leave you with much for saving and spending! we do spend a lot on food though (the boy likes his meat), have sky and have expensive gym memberships.

i agree with what the other posters have said about paying off your debts with your savings but i also understand what it feels like to want to own your own place so it's up to you to decide if that's worth the deficit between interest earned and interest paid. in any case you may have personal loans where you would be penalised for paying them off early so it might not be an option. i don't think there would be any harm in waiting a bit though. have you considered renting for a while to see how you get on (money, relationship etc) before making the huge commitment to buy?

going back to the original budget thing, one thing that hasn't been mentioned is car tax, mot, etc. this is quite a chunk if it comes in the same month! we are going to start paying £30 a month (for one car) into a separate savings account so this will hopefully cover the basics. really it should probably be a bit more in case it blows up or something.

for other stuff like boiler insurance, a tip that i read is not to bother with it but to pay the same amount that you would have into a separate 'calamity' savings account. chances are you won't need it but if you do it's there, if you don't you get to keep the extra money - kind of like managing your own insurance but you get the profit instead of the company. insurance that you must have is buildings, contents, car but most of the random ones that they try and sell you can be dealt with this way.

hope this is helpful anyway. let me know if you want the spreadsheet.

cheers, bc

blunt_crayon

just noticed that your original post mentions 2 cars @ £200 each but it isn't clear if this is loans or running costs?