How much do you have left after mortgage and bills

getmore4less

Do a SOA and make a plan with the medium term savings requirements
Good goals help in working out what you can afford.
http://www.makesenseofcards.co.uk/soacalc.html

A minimum of a years spending should be in the SOA, also include some savings to spead the cost of things you might need in the next few years.

The idea is to get the budget ballanced with all things you can think of included,

Consider emergencies as unexpected costs as a seperate risk of loss of income, they need different stratagies.

Car repairs for example should not be emergencies they should be in a budget.

You do need a cash flow buffer to take account of the lumpy nature of some spends thats why you need to consider more than a month

Having discretionary spends that can be eliminated if short one month is good as long as they are budgeted properly.

Save up for things don't take on more debt.

Eg. Save up for your holidays and only book/take them when you are sure you can spare the money, don't book and be commited to aspend before the moeny is there.

Depending how tight the budget, aim to get ahead and have a few months spends in the pot within a year or two if you don't have them before you buy.

perplexed.com

andrewmp wrote: »

For me, bills is everything I have to pay I don't include haircuts as £4 per month isn't worth thinking about.

It's ALL worth thinking about IMHO.:D

andrewmp

perplexed.com wrote: »

It's ALL worth thinking about IMHO.:D

Yeah, I suppose you're right, it's not an essential though!

jenpenpie

I am at very early (research!) stages of housebuying/mortgages and I have a figure in mind of a three way split: one third of salary for mortgage, one third for bills (incl food. petrol etc) and then savings and spends (going out, holidays and miscellaneous expenses) for the remaining third. If interest rates/bills went up, the 'savings and spends' third could then be used to cover them.

Peelerfart

jenpenpie wrote: »

I am at very early (research!) stages of housebuying/mortgages and I have a figure in mind of a three way split: one third of salary for mortgage, one third for bills (incl food. petrol etc) and then savings and spends (going out, holidays and miscellaneous expenses) for the remaining third. If interest rates/bills went up, the 'savings and spends' third could then be used to cover them.

Not bad as a rule of thumb but it really depends on your income, lifestyle and mortgage amount.

Like you say though,"very early (research!) stages "

dannymccann

Net earnings - £2000
Mortgage (incl Life insurance) - £540
ISA - £250 (this is a permanent 'bill' to pay off 20% deposit loan)
Bills (every outgoing possible incl diesel, monthly contributions towards car tax/mot/servicing etc) +10% emergency - £600

So on a bad month £450 a month left after everything.

Everything left at the end of the month will go into an ISA (probably that 3.5% A+L one unless a better one pops up in April), once that is maxed at £5100 we will use the rest to overpay capital as the deposit for this place has used all our savings :rotfl We are allowed to pay 10% of the mortgaged amount penalty free (so can over pay £10300 this year if we could)

MajorTom_2

With the new mortgage me and the OH are going for, it would leave us with around £2,700 a month between us (after bills). We were told by our FA via the mortgage company if we were to take out a £10k loan (payments worked out £166 a month) we wouldn't be able to afford the mortgage and would be declined?
We don't exactly live a millionnaire lifestyle!!!

emmadragon

After bills/food/petrol I'm on about £60 a month I wish my partner had a job! If anyone needs a painter in Portsmouth let me know!!

LittleMissAspie

Bills to me are rent, council tax, water/gas/elec, phone/internet and groceries. My half of those comes to £500 a month so I have £700 left over. Things like car costs, holidays, clothes, presents etc come out of my savings.

For when we get a mortgage, I have assumed that all bills will increase (although some won't like food, and some will be less like council tax) and have also budgetted for overpayments. I estimate £800 max for my half then, which will leave me with £400.