Do we have enough cash left over?

Kenlly

Hi all.

Me and my wife would like to move to find a bigger home, one to settle in to and start a family (within the next 2 years)

Do you think having £550 left over each month is enough?
That is with everything paid for in a normal month.

Our mortgage would be around £1250 per month
All our other expenses would be £1188.59

So total outgoings £2438.59 against a joint income of £3000.00 (we are due wage rises in the next few months, not a lot but prob £50 each, but let not count that at the moment)

As i say that is everything we pay for each month. we do have Sky, Gym memberships, Broadband that we might be able to save a little bit on if we had too. We don't have any credit card debt only a car loan that will finish in just under 3 years which is £240 per month. (included in the above calculation)
We don't have any savings tho.

What do you think?
Thanks in advance for all your replies.

pmduk

I'm not a home owner myself, but the first thing that struck me is the potential for unforeseen repair bills. If you're already own a home you may have that built into your budget, but at least bear it in mind.

Kenlly

pmduk wrote: »

I'm not a home owner myself, but the first thing that struck me is the potential for unforeseen repair bills. If you're already own a home you may have that built into your budget, but at least bear it in mind.

We do have our own home at the moment yes.
The plan would be to save £200 a month and then use the rest for clothes and weekend fun.

jonesMUFCforever

If you start a family will your wife be taking maternity pay and will the fact that babies are expensive to bring up not affect your disposable income?

Is there any way you can add more space in your present property?

Kenlly

jonesMUFCforever wrote: »

If you start a family will your wife be taking maternity pay and will the fact that babies are expensive to bring up not affect your disposable income?

Is there any way you can add more space in your present property?

She gets fantastic maternity pay but will have to go back to work to help pay the bills. That does play on my mind. There is really no scope to extend where we are....

Incyder

I think you have enough left over each month for a Black Labrador called Boris.

DavidHayton

Kenlly wrote: »

Do you think having £550 left over each month is enough?
That is with everything paid for in a normal month.
Our mortgage would be around £1250 per month
All our other expenses would be £1188.59
So total outgoings £2438.59 against a joint income of £3000.00 (we are due wage rises in the next few months, not a lot but prob £50 each, but let not count that at the moment)

As long as your jobs are secure, you seem to have plenty in my opinion. Essentially you will have £1750 after paying your mortgage. I could live on much less than this - and many have no alternative to. It all comes down to your lifestyle: whether you think that expenses such as the gym membership and sky subscription are essentials that you cannot live without, or unnecessary drains on your finances.

Go for it ... and in 30 years time you will be able to bore the next generation with the stories that I hear from people in their 60s with palacial houses worth £500k ... "ahhh but when we moved in we were so poor that we had to eat beans and sit on old orange boxes because the mortgage gobbled up all but 7 and 6 of the 10 pounds that we were paid each week".

Best wishes david

David

ironlady2022

I agree you have plenty, have you taken into consideration that a bigger house is more expensive to run? Also dependant on area, insurance premiums could differiente by quite a significant amount and council tax banding?

lincoln-potter

Be careful not to stretch yourself too far as you mentioned a new home and also a family. Both WILL incur unforseen costs and there would be nothing worse than to have to move again a few months later because the cost proves too great. Also don't forget to take into account that bank interest rates will increase at some point and think after your fixed rate ends would you be able to cover the additional cost.

That being said people generally regret the things they didn't do rather than those that they did.

All the best.

Bloomberg

Kenlly wrote: »

Hi all.

Me and my wife would like to move to find a bigger home, one to settle in to and start a family (within the next 2 years)

Do you think having £550 left over each month is enough?
That is with everything paid for in a normal month.

Our mortgage would be around £1250 per month
All our other expenses would be £1188.59

So total outgoings £2438.59 against a joint income of £3000.00 (we are due wage rises in the next few months, not a lot but prob £50 each, but let not count that at the moment)

As i say that is everything we pay for each month. we do have Sky, Gym memberships, Broadband that we might be able to save a little bit on if we had too. We don't have any credit card debt only a car loan that will finish in just under 3 years which is £240 per month. (included in the above calculation)
We don't have any savings tho.

What do you think?
Thanks in advance for all your replies.

In the main your situation seems quite good. However you do not mention any savings. The fact that you have enough money to get by every month is in itself encouraging because you are not stretched.

Everyone should ask themselves whether or not they could survive without their next pay day. I get the impression that if for some reason both of your incomes dries up it would be just a matter of weeks until you were found wanting.

In my opinion your top priority must be to start a regular saving, your situation is comfortable but fragile. All the best.

CLAPTON

what exactly do you mean you have 550 left over in a normal month?
is that what you currently have available or what you estimate you will have available after you move?
does that mean that every year you actually save £6,600?