Is this achievable?

paulmapp8306

Starting to think about life after debt. I am working on worst case in that neither me nor my wife will be working (comming from the forces).

Neither me or her will get JSA her because shes only working 15hrs on min wage so doesnt pay tax/ni, and I will have my pension. I have been told I MAY get contribution based JSA for 6 months as this is not means tested - but Ive also been told I wont ???? Anywany, Im working on wont.

Income will be my Pension which works out at £815pm after tax (taking my full tax free allowance against it). We will continue to get Child Benefit of £135 (every 4 weeks but Im counting it as monthly) and according to the HMRC benefits calculator will also get £108 Child Tax Credits per week. thats all based on having £13k savings from my terminal lump sum as well.

That gives me a monthly income of around £1382 - unless anyone can put me clear on other benefits I should get - or indeed ones ive counted on that I wont actually get.

My Council Tax seems to be around £30 per month. Based on £1300 per year, and HMRC indicating Ill get £24 per week CT Benefit.

Dont know where well be living - but as we have a large inheritance comming before I leave the forces were thinking of buying before I leave.

So - outgoings:

Mortgage - £350
Council Tax - £30
Water - £50 (no idea - we dont pay them in NI but I will settle in England).
Gas/Elect - £180 (based on currenrtly paying £230 pm over here)
£15 - TV Licence
£30 Landline/internet
£55 - Car insurance
£30 - Car maint (inc road tax/MOT)
£20 - HFC (this is a loan I could pay off, but want to keep for credit history purposes).
£17 - Denplan (need that to get kids into dentist on NHS - may be able to stop it if we can all find an NHS dentist(.
£60 - House and Contents insurance. (currently pay £50 contents for £50k worth of goods, but Its specialist forces, no idea when I leave).
£16 - Life insurance (existing policy - need to keep for mortgage).
£30 - Savings (pressies, emergencies, xmas etc)

Thats an outgoing of £1383 - a whole £1 over my income. Of course theres no clothes, pocket money, entertainments etc BUT im trying to work out if I can survive at a basic level on just this income. Im hoping at least one of us will get work, even at 15 hours PT on minimum wage which would give us £360 extra a months for that kind of stuff. Ill also have the £13k savings to fall back on if needed.

so - is that realistic or have I missed something glaringly obviouse?

paulmapp8306

Sorry - I completely forgot about food !!!!

i had factored that in in my figures - which is why the ones posted dont add up There is £500 pm put aside for food, household goods, and potentially clothes.

laura2481

Hi
The biggest one I can see is Council Tax is too low based on figures in England- is that where you said you were going to settle? We pay £87 per month and that is the bottom tier payment based on lowest house price.. so maybe need to look at house prices where you are going to settle and then figure out what that would make your council tax?

paulmapp8306

My figures are based on £130pm council tax bill - but with only my pension income and my savings id get £24.86pw CT benefit - so £99.40 (every 4 weeks) i havent figured that in the income - Ive just taken it off the CT bill - leaving me the £30 Ive quoted (ishe).

paulmapp8306

Oh - looking at settling in Nottingham, and looking at houses up to £120k max.

laura2481

paulmapp8306 wrote: »

Oh - looking at settling in Nottingham, and looking at houses up to £120k max.

Should be able to get a decent property in Nottingham for that price- I have friends that live in the area

laura2481

paulmapp8306 wrote: »

My figures are based on £130pm council tax bill - but with only my pension income and my savings id get £24.86pw CT benefit - so £99.40 (every 4 weeks) i havent figured that in the income - Ive just taken it off the CT bill - leaving me the £30 Ive quoted (ishe).

Ah, that aboot right then

laura2481

Gas and Elec you should be able to shop around a bit cheaper- we pay £34pm elec and gas is going down to £20 pm next month from £28 (yes, down, surprised me too ) we are with EDF. HTH

RAS

Worth

1. Seeing if your missus can get an extra hour a week work (and note that son the other parent will need 8 hours a week to qualify). the check www.turn2us.org.uk
2. Your utilities are very high. It will certainly pay you to make sure the house is well insulated and i would expect you to get the cost back in reduced bills in a year or so.

natlie

your gas/elec should be cheaper, I pay £20 a month for cont/build insurance and I get cashback with quidco, £500 too high for groceries look on old style board we have in poor times managed on £90 a month for food. £300 should be plenty

Tixy

£500 for food, household goods, clothes - if by household goods you mean cleaning products, toiletries etc - then that figure is very high - I'm not sure if you mentioned how many kids but even a family of 5 can easy manage on £350 easily (and £250 if they need to). If household goods you mean furniture, white goods then seperate that out.

Insurance - should be much cheaper than that - £30 should more than cover buildings & contents.
Gas & elec - again should be lower than this - don't go for anywhere with just elec heating.

Mortgage - are you assuming a repayment mortgage? and borrowing how much of the £120k? what interest rate have you worked on to get £350?

have you forgotten petrol?