how would you do it?

double_mummy

patanne wrote: »

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.

thankfully we have been quite sensible and xmas is already paid for except for the fresh veg for xmas dinner and both childrens birthdays are between now and xmas and they are all paid for except for the cakes (daughter loves a £10 one from asda and son is undecided)

i think the problem we have always both found is that when we just have general savings we spend them which is why we wanted to separated out so we know esp when it comes to holidays we have x ammount for our holiday this year rather than theres a large pot with the house money emergency money and holiday money in i think we would be tempted to go for a much larger holiday than if it was separate

we have been through our budget and trimmed it down where possible we are not having a proper childminder but my best friends will be our childcare they have been in my childrens life since their birth and i feel they would be better looking after the kids than a childminder so my childcare costs are a tiny percentage of what they could be and i have over budgeted as i always do

we know that we wont miss the extra money but as it is partly due to an increase in hours we would like to use some of it to treat the kids and each other with a little bit more big family things than we currently do

we want to find the right balance of having a life and building a life

Mojisola

double_mummy wrote: »

we have been through our budget and trimmed it down where possible we are not having a proper childminder but my best friends will be our childcare they have been in my childrens life since their birth and i feel they would be better looking after the kids than a childminder so my childcare costs are a tiny percentage of what they could be and i have over budgeted as i always do

Is your friend getting registered as a childminder?

https://www.ofsted.gov.uk/resources/factsheet-childcare-childminding-between-friends

double_mummy

thanks mojisola had no idea about that i will discuss it with her we have always watched each others kids and never thought we would have to register

Mojisola

double_mummy wrote: »

thanks mojisola had no idea about that i will discuss it with her we have always watched each others kids and never thought we would have to register

If you weren't paying each other, that's fine.

It's when it's done for money (or any other kind of renumeration) that you need to be registered.

double_mummy

yeah we never paid because it always ended up i would have hers once a months and she had mine once a month

it does say she doesnt have to register if im giving her goods or services so i could go and do some shopping for her instead of giving her cash i suppose

gingin_2

I would go with your idea.

We left buying a house until we were 32(me) and 40 (OH) and in hindsight we regret it - the biggest mistake we have made in our lives. I know the Milton Keynes market to an extent and it's very similar to where I am (Cambridge) and I would aim to buy asap if it were me, we saw prices run away in the 6 years we were renting here and I know Milton Keynes has a similar fast market. £260 ish a month that your husband proposes is not that much when you also have to factor in fees, stamp duty and moving costs when you do come to buy.

I'd put aside a small amount each month for a holiday and perhaps £50 a month for days out, (clubcard is brilliant for paying for activities, particularly with younger children) and save the rest.

Mojisola

double_mummy wrote: »

it does say she doesnt have to register if im giving her goods or services so i could go and do some shopping for her instead of giving her cash i suppose

I don't think that would work if you mean you will pay for her shopping - giving her any financial reward instead of cash still counts as payment.

double_mummy

if we aim to buy in 2019 my way we would have saved around 50k doing it his way we would save about 15k so its the difference between a 90% mortgage and a 60% one then also if we are used to saving that amount we can then transfer the money that we pay in rent and have been saving and use it to over pay the mortgage as we would have been paying it out anyway

this obviously doesnt take into account any possible future pay rises or reduction in outgoings

sillygoose

I would prioritise getting on the housing market, even if its not a 'keeper' something to invest in until the time to buy something more longer term.

It sounds like you have your head screwed on when it comes to budgeting, all credit to you.

One thing I would say is avoid the temptation for taking on financial commitments, I have known many people who having stepped up in income be tempted by fancy phone contracts, gym memberships, wine clubs and all kinds of 'direct debit' things as it seems only a few pounds a month here and there and you can easily afford it.

But things can go wrong like illness or job loss and it usually happens without warning, then these commitments can be the difference between a roof or a repossession. I know many people who's commitments are truly frightening.

You can get yourself into an enviable position, protect it! getting a £10,000 cash buffer set aside first makes life vastly more robust.

Yorkie1

This is a very useful post from a very experienced poster / saver:
http://forums.moneysavingexpert.com/showpost.php?p=63108027&postcount=5