MFW Newbie - One Income, with a one year old?

kemo_2002

Here is my little, story, me and DP bought our house for £75k with 10k loan on top to do it up so total amount was £85k. This was taken out in August 2007.

The total we owe now is about 83k - we were a bit nieve and went for the smallest deposit we could which included a higher lengning charge! grrr!!

We also took it over a 10 fixed rate at 4.99% (as we wanted ot know exactly what the payments would be) oh if only we knew the intrest rates would drop!

We had out daughter last January, so i stopped work, and am a SAHM at hte moment.

Our bills are currently £1400 which included everything including food , petrol, £60 savings per month and £40 xmas savings per month. Im sure i can do better with our food though so will start there.

On a good month DF brings home about £1600 so we have £200 spare which we split between us.

I would really like to get our mortgate down, but with little spare cash its going ot be a tough one. I cant really go back to work becasue we can't afford to pay for child care and it would defeat the object of going back to work. I keep looking out for small cleaning job, but so far not found anything

Just wanted to drop in and say hi! and i love ready all your diarys!!

wantabetterlife

Hi Kemo and welcome to MFW land :j Do you think there is any savings you could make on your groceries or fuel bills for example, the old style board has loads of tips on home to save money in the home. Best of luck with your plans and every little helps
WABL

dimbo61

Your mortgage is fixed at a VERY GOOD RATE until 2017 and you can afford the payments while you are a SAHM and even up until your daughter goes to school.
Build up your savings and make small OP,s when you can

setmefree2

and Good Luck :T:T:T

SimbaSimon

kemo_2002 wrote: »

Here is my little, story, me and DP bought our house for £75k with 10k loan on top to do it up so total amount was £85k. This was taken out in August 2007.

The total we owe now is about 83k - we were a bit nieve and went for the smallest deposit we could which included a higher lengning charge! grrr!!

We also took it over a 10 fixed rate at 4.99% (as we wanted ot know exactly what the payments would be) oh if only we knew the intrest rates would drop!

We had out daughter last January, so i stopped work, and am a SAHM at hte moment.

Our bills are currently £1400 which included everything including food , petrol, £60 savings per month and £40 xmas savings per month. Im sure i can do better with our food though so will start there.

On a good month DF brings home about £1600 so we have £200 spare which we split between us.

I would really like to get our mortgate down, but with little spare cash its going ot be a tough one. I cant really go back to work becasue we can't afford to pay for child care and it would defeat the object of going back to work. I keep looking out for small cleaning job, but so far not found anything

Just wanted to drop in and say hi! and i love ready all your diarys!!

Don't worry about the bank rate. While its low at the moment and expected to be low for several months yet who knows what will happen in the future. If interest rates go up how would manage if you weren't on a fixed rate? It sounds like you made the right decision for your circumstances.

We're in a similar position with only a little bit spare each month but make the odd payment here and there with 32 years to go! Even £10 a month for us would knock 1.3 years off our mortgage and save approximately £5,000! So even small regular payments can make a difference. There is a calculator here which allows you to work out how much you'd save http://www.whatmortgage.co.uk/calculators/fleximortgage.html

SmlSave

Just popping in to say hi to the MFW's Kemo

Thriftyknickers

Hi Kemo, Why don't you look at ways you can up your income from home or with your daughter - questionnaires, Mystery shopping, Ebaying etc have all worked well for me. Combine that with trying to cut a bit off your spending and I'm sure you'll be well on your way! The Upping your income board is a good place to start! Good Luck!

kemo_2002

thanks for the warm wecome everyone Ive joing hte make 10k in 2010 thread, i dont expect to make anywhre near it but ill try make something, starting with selling my stuff!

It was a real reality shovk when i found out, of the £490 i pay on hte mortgage only about £160 actually comes of hte balance :O, £330 a month on on interest alone!! And those are only rough figures!

Not a very good start to the month tho as ive got an infected wisdom tooth which is killin me so i think im going ot have to haveit pulled, and im scared to death of hte dentist!!

setmefree2

Sorry to hear about your tooth. That sucks.

kemo_2002

Average income from DF wage - £1550

Tax Credits & Child Benifit = £60

= £1610

Well, just totted up bills and this is how it looks....

TV - 12.12
Virgin - 23.73
mortgage insurance - 30.86
life ins - 31.88
gas - 80
electric - 70
council tax - 89
loan - 122.05
mortgage - 390.95
mobiles - 60
car ins - 37
home ins - 28.45
life insurance (regular monthly payment for daughter if anything happens to us)
water - 27.85

TOTAL = £1003.55
OTHER

25 to my ISA
25 to partnersISA
10 to daughter saving
40 to christmas saving
240 food
60 petrol

TOTAL = 400

Totaled together = £1403.55

Gas & elec is so high as we are paying off a debt because they didnt read our metres properly!!

Mobiles are tied into contracts for another year

We dont always spend £240 on food, i save the exta in a separate pot

This gives me a total of £204.45 spare, DP has £75 a month for play money as he does all the working whichi think is fair. So this leave me with £131.34 for everything else including emergency savings pot and overpayments

Hmmmmm its not looking good!

deefadog

Don't forget you can make extra cash by selling things you want on ebay, boot sales etc. You will be surprised what you think is worthless but other people thing is valuable!

What i do every few months is get a large box and we go through the junk cupboards, daughter toys and we see what we don't need, then research is the key try and find out how much each item is worth - you'll be very surprised, for example an old teletubbies plush toy which we would have given away was bid up to £20