how would you do it?

double_mummy

hubby and i are in disagreement about finances we are both mid 20s with 2 kids 7 and 3 we have defaults on our credit report from last year but no debt now

we are both starting new jobs and will be earning much more than before and we are trying to work out what to do with it

income will be 3000 pcm outgoings 1800 pcm (this includes everything childcare rent all bills diesel food absolutely everything)

this leave us with 1200 per month that has no where specific to go

OH wants to save 800 pm to be split 3 ways between saving an emergency fund, start saving for a house and saving for holidays days out etc (like a leisure fund)

I on the other hand want to save 1000 pm all of it going towards an emergency fund for around 6 months and then save 800pm for the house deposit and 200 pm for a leisure fund

we realistically know that we wont be buying for around 6 years so we want a half decent deposit by then (as house prices here are mad) but also want to enjoy with the kids the extra money we have to spoil them a little by having more days and weekends out

what would you do with the spare 1200pm?

pink_princess

Does it really matter?

We just save it then use it as and when we think there is something worth spending it on.

samtoby

I would save it all. But thats me now. Quicker you get on the property ladder the quicker you are not throwing rent money away.

When I got a large payrise I decided to save the difference between my old and my new. I was able to cope on a lower income and it makes sence to me. A lot of people live to their income as in when ever it goes up the bills and lifestyle costs go up!

Good luck

fluffnutter

I'd probably start saving as much as possible as soon as possible for the house. Every month you continue to pay rent is simply paying into someone else's pocket. But that's an opinion from someone who prioritises home-ownership and everyone has different priorities.

TBH, there's not a huge difference in what you're both suggesting and I'm sure if you play around with the figures you'll come to an agreement. It's not like one of you is saying 'save! save!' and the other's saying 'spend! spend!'. You both want to save, the detail just differs a little.

fluffnutter

pink_princess wrote: »

Does it really matter?

We just save it then use it as and when we think there is something worth spending it on.

Yeah, but they're planning to buy a house which tends to need a bit of forethought.

fluffnutter

One thing I'd definitely do - start saving the money before I got used to it. It's amazing how quickly you get used to a new level of income and then you find you've spent it all without noticing where it's gone

patanne

Well the really good thing here is that you both agree that you want to save. Which pot you are saving into is very much a personal opinion. Having said that, my opinion or what I would do in these circumstances is firstly, before you get used to a larger income save all £1200. Christmas (sorry for using the C word) is only 3 pay packets away. You've got out of debt so the last thing you need is for this years to be via a credit card. I would prioritise emergency fund and Christmas for now. Then in the new year allow a little more in normal spends & go for a split to - finish the emergency fund to 6 x £1800, house deposit savings and a holiday fund. Although I would only split out the holiday fund having decided how much was wanted and for when.

getmore4less

THe key is both just starting new jobs.

Save until you are sure they are secure,

Why not have a look at the current budget an look for saving/better value there as well.

As above when you have more money than you need it is easy to loose sight of where you spend and what is good value.

pollypenny

Get as much put away as you can. It does not have to be predesignated, but you can allow some holiday money from it, once you know your jobs are secure.

Get as much into cash ISAs as you can, then find the best interest rates, save a lump dum, then try a fixed rate for a couple of years. This will contribute to your deposit.

Good luck.

CH27

Start saving from the very first higher pay packets.
You won't miss what you've never had.

Mojisola

double_mummy wrote: »

hubby and i are in disagreement about finances we are both mid 20s with 2 kids 7 and 3 we have defaults on our credit report from last year but no debt now

we realistically know that we wont be buying for around 6 years so we want a half decent deposit by then (as house prices here are mad) but also want to enjoy with the kids the extra money we have to spoil them a little by having more days and weekends out

what would you do with the spare 1200pm?

As long as it is saved, it doesn't matter to start with what it's for. Don't let disagreements over how to divide it up stop you putting the money aside.

While putting an emergency fund and house deposit savings to one side is really important, so is daily life. Do enjoy some of the extra earnings now with your children.