Wishing to start our own lives ...

charleybear

Me and my partner have been together for the past 3 years and although we are 18/19, We wish to get our own place to live within the next few years.

At the moment, Its only me who has got a job,
Its only for weekends at the moment and most months I earn #£120-£150. I haven't saved anything yet as I was foolish and spent the first few wages on silly things like clothes.

I have got £605 in my savings account and I so far I have £13+ in my savings jar to put towards it.

Now I wish to save up for somewhere for us to call home
however we are starting right from the bottom & I don't understand
mortgages or debt or anything like that.

So, how do we start and how can we make that sort of money to buy somewhere to live from starting at rock bottom?

monty-doggy

Firstly you both need to get full time jobs. Owning a house is a huge responsibility, its more than just mortgage payments, you have a lot of up keep too.

You would be better getting a rented property first so you can see what it's like having to budget for gas, water, food electric and general living costs.

For a mortgage you need a deposit equating to 10% of the purchase price, although some schemes help with this. BUT you both need to be earning and you need to be stable.

I wouldn't be thinking of buying yet.

davenport151

What I wish i'd done at 18/19.

Got into a habit of saving a percentage of my wages to set the pace for the years ahead.
Its small but its a start.

monty-doggy

By the way I think it's admirable you are thinking of it now. I'm 31 and only just buying my first home. I've rented all my life

charleybear

Thank you, I just want us to have the best start in our lives together. We've talked this all through by the way and we both feel the same - we're not looking to buy or rent yet but we want to make a start rather then leaving it too late and regretting it

monty-doggy

Get good jobs and work hard. Save money up, but don't forget to live in the meantime. You can't scrimp on everything, life is too short

Marie27lol

Evening Charleybear

Great ambitions

Trying to get onto the property market and get a home together is very admirable (blimely I sound like an old maid, sorry).

Okay, and another "sorry" as this sounds like the typical wise-woman, or any of the old folks; do try to live together first. My coz, dated for 5 years and then moved in after Uni and married. Ooops, it didn't work out, as they had been given a deposit by their folks, and so the divorce / dividing up the "goods" was = OUCH

If you have not already done this, then this is perhaps what I might aim to do:

Each of you decide to save an amount of your monthly earnings e.g. 12-20% towards a deposit, and keep them in separate accounts (not interlinked) but can be seen e.g. a print-out. And now this is the horrible bit, DON'T TOUCH IT !!! As when you're renting/utilities this can take 40-60% of you're income. Perhaps start low, so get use to it, and then increase it by 5% every period 6 / 9 / 12 months to get used to paying such a large amount.

At the moment obviously, both of you don't earn enough / in work, to get a rent deposit, but it will help set the "habit".

I am sorry to say, that I didn't move in with a fella; as he had a major spending habit, and I would not move in with him. He didn't show any inclinations to changing. He didn't understand why... I had been temping since starting Uni (6+ years) and had a mortgage, so any debt (other than mortgage or monthly-paid off cc) was a VERY BAD SWEAR WORD in my vocab.

So the adage of "if you can't afford it, don't buy it" really does apply.

My other Q is, what is your partner's saving plan? Have they got anything? Things are rarely equal in earnings, and this is why I suggested the % amount - it is the indication / plans that make for an more equal relationship.

This is an extreme example, but if 1 partner earns £30k and the other earns £9k, but both put in 12% of their earnings in (after tax)... Its fairer. If the £30k earner decides to put more in, the choice is their's, as they are putting more aside for both their futures. But it is the lower partner's contribution which makes it feel more like they are contributing, rather than being a 'sleeping partner', in the nicest of context.

So my Qs:

• What are you saving?
• What is your partner saving / contributing? If not earnings cooking the food / growing dinner etc?
• Have you lived together?
• If not, go camping / live in an isolated cottage for 2 weeks - and not go to the pub / restaurant every night. If you can do this, it's a good indication you can live together.
• AND live on a limited budget whilst you do this!
• Pay a % of your income into a separate account (as though you're paying rent / mortgage).
• Increase this % periodically till you're paying 40% to 65% which could include your bills e.g. utility, council, phone/net, insurance.
• DO NOT Be surprised, if you're close to the border line each month. Just adapt your spending / going out / putting on more cloths in winter to adapt it.

So many relationships fail on finances, and it's much "easier" to get it organised before you move in together.
Good luck CB.
M

Thrugelmir

charleybear wrote: »

So, how do we start and how can we make that sort of money to buy somewhere to live from starting at rock bottom?

Other than the mortgage. Don't get yourselves into debt. Save before you spend is my basic rule of life. You'll find your money goes far further.

charleybear

What are you saving?
At the minute not a lot because I have to pay my parents for stuff.

What is your partner saving / contributing? If not earnings cooking the food / growing dinner etc?

Well nothing as of yet but does get/make me dinner whenever I stay over and he's always running around after me... he will contribute when he has a stable job.

Have you lived together?

Not properly on our own but we have had a few days without parents in the house when it's just been us two and we get on really well. We don't argue much and we do things like the house work etc....

:undecided

We've talked about it today and has set up a goal to try and aim for a house in 6 years or at least somewhere to live. And I've talked about working more and trying to get more hours in the summer holidays.

monty-doggy

to be young and carefree!