Do we have enough cash left over?

Kenlly

CLAPTON wrote: »

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?

£550 is what we would have left over after everything is paid, All bills, food, fuel, everything.

We could only save £6,600 if we never ever did anything....

CLAPTON

Kenlly wrote: »

£550 is what we would have left over after everything is paid, All bills, food, fuel, everything.

We could only save £6,600 if we never ever did anything....

makes no sense

you need to work out a proper realistic budget .. one that allows you a life
and then determine where it's sensible to move
try
http://www.makesenseofcards.com/soacalc.html

for starters

chalkie99

You are basing your figures on what you estimate the mortgage will be but, in reality, no-one knows what mortgage rates will be at any given time, only that they almost certainly will rise.

space_rider

Well how many of us can actually afford children? Just remember that childcare costs will take what you have left over.

Kenlly

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1714
Partners monthly income after tax....... 1279
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2993

Monthly Expense Details
Mortgage................................ 1150
Secured/HP loan repayments.............. 238
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 45
Gas..................................... 70
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 20
Mobile phone............................ 70
TV Licence.............................. 10
Satellite/Cable TV...................... 62
Internet Services....................... 20
Groceries etc. ......................... 250
Clothing................................ 25
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 35
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 17
Buildings insurance..................... 20
Contents insurance...................... 15
Life assurance ......................... 60
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2417


Assets
Cash.................................... 0
House value (Gross)..................... 235000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 244000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 194000...(1150).....0
Hire Purchase (HP) debt ...... 7500.....(238)......0
Total secured & HP debts...... 201500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,993
Expenses (including HP & secured debts). 2,417
Available for debt repayments........... 576
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 576

Personal Balance Sheet Summary
Total assets (things you own)........... 244,000
Total HP & Secured debt................. -201,500
Total Unsecured debt.................... -0
Net Assets.............................. 42,500

Created using the SOA
Reproduced on Moneysavingexpert with permission, using other browser.

chalkie99

So it seems you are looking at a new place which is bigger but not much more expensive, given that you are aiming for only £100 a month extra on your mortgage?

One thing to consider is how realistically you have valued your current home. Many people have an idea fixed in their minds about how much they think it is worth but end up knocking off huge chunks to actually get a sale.

A house a few doors from me was "valued" at £250k by the owners last year but has gradually been reduced to £205 and still no takers.

Kenlly

chalkie99 wrote: »

So it seems you are looking at a new place which is bigger but not much more expensive, given that you are aiming for only £100 a month extra on your mortgage?

One thing to consider is how realistically you have valued your current home. Many people have an idea fixed in their minds about how much they think it is worth but end up knocking off huge chunks to actually get a sale.

A house a few doors from me was "valued" at £250k by the owners last year but has gradually been reduced to £205 and still no takers.

The figures i input were our predicted spend in a new house, Not our current home. We actually only want to borrow another 35k. I have increased everything slightly so its worst case. We would probably fix our mortgage for 3 years so we know where we are.
Just to add we have had our house valued at 215,000 but are expecting to sell for around 207,000. We currently owe 160,000 so that leaves £47,000 deposit minus around £7k for fees, so £40,000.
Hope i'm making sense.
If we find a house for £235,000 less the deposit then we need a mortgage for £195,000. Thats how i'm basing my figures. (and using Northern Rock to calculate payments on one of their current fixed rates)

Thanks everyone for taking the time to read and reply.

Incyder

Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0


The wife will need a haircut at some point.

strawberryfield2233

Hello,
Just wanted to say that out of the close colleagues who I have worked with, who have had children within recent years all the mothers have ended up working part-time as the pull of spending time with the baby was too great for them personally but all mothers are different. The problem my colleagues had was balancing the income from working with the cost of childcare which obviously must be considered as one colleague in particular is doing 30 hours but takes very little home after the cost of childcare (which makes her very annoyed as its hard work juggling everything!). I know each and every mother will be different but please work out what the scenarios would be if your wife went part-time, how would this affect your income after childcare. Also would you be able to manage with one car when the baby comes? I think that it would be great if you could cut back (gas, electric, mobile, satelite etc) and get some savings behind you before reassessing your position. Also when doing the SOA would be good to include the christmas/birthdays, holidays, hair cuts when weighing things up as unfortunately it all adds up ! Sorry a novice at posting but wish you the best whatever you decide!

CLAPTON

the biggest concern must be that you are apparently saving nothing in your current situation

for people with a house and a car your need savings for an emergency fund to pay for thing s like
white goods breaking and needing replacing (as least 3-400)
problems with the house, maybe boiler breaking down, plumbing leaks, tiles off the roof etc at least 500 and nearer a 1000
depending upon the age of your car and when you expect to replace it then you need to start saving for that too (that avoids that 238 on HP you're spending rather than saving.)

obviously you need to be more realistic about what you spend on going out/entertainment, holidays, xmas, birthdays too (and do you really only spend 300 per annum on clothes?)

you should aim to start a family with nil debts (except mortgage) and saving of at least 3-4,000 as emergency fund plus anything you need to tide you over the period of maternity leave.