Reality Check...

reality_check

Thanks SSG, I was tucked up in bed well before midnight - wild! Hope you had a lovely time!

New Year, New Me isn't going well....I am loaded with the cold so not quite started juicing or running as planned, life with feeling like this is bad enough without the above!

Have binned all the !!!!!! in my house, not very MSE but the cheese and chocolate and crisps had to go!! No more takeaways either, I've actually ate far too many I am craving nice home cooked meals, but just as I've wrote this the thought of a chinese is now suddently appealing...but no!

Low spend this week as plenty food in, just need some nappies, milk and fruit. Need to do a meal plan but have pretty stocked up cupboards and freezer that January shouldn't be too expesive. Zero plans too which I can't wait for!

Waiting on a few returns going back onto the credit card/my bank and then I will update total amounts...As of pay day I am starting to make savings for all the annual expenses (I think).

My household income has really changed since I started as we now have 2 incomes, we haven't actually got around to sorting everything into joint names now we are married. Mr Reality wants us to have completly joint accounts/savings which I did do with my ex husband, but this time I feel bad but I'm sure I will get over it! We have roughly the same annual income coming in (IF I get good commission that month, which I know it's a given, but it basically is). He does have far greater savings compared to my 0 but I do have a large amount of equity in my home....I also have debt, he doesn't. I am all for joint accounts though, espeically when living together and married. Not sure what the point in writing all that down is but suppose has made me realise I am not in that terrible a situation compared to him (because of the equity) xxx.

Cherryfudge

Just a thought but if anything happened to one of you, accounts in joint names could possibly get frozen? I don't know if that applies to all of them but it's worth checking. Even a relatively small independent account each would mean you had access to funds while legalities were sorted out, and of course could save giving away what you spend on presents for each other!

If it worked better for you, independent accounts could be paid for by 'pocket money' DDs from joint accounts.

There may be someone around with more up to date knowledge than I have, so get other advice. Also if you have had a negative experience in the past then that's good reason, for your peace of mind, not to hold all accounts in common unless/until you feel ready.

reality_check

My house is worth approx £275,000 with £62,000 mortgage left - so say £200,000 equity.
OH has 2 rental properties, ex council bought from his Dad and Nan so owned outright and probably about £200,000 for both - so that makes us even.

He has a better pension, salary, savings and no debt. I have a basic pension, lower salary overall plus £8,000(ish) debt.

I own my parents house plus my ex husbands aunts house (again both ex council so bought outright and roughly £250,000 for both) but that is owend jointly with my ex husband and was for topping up our pension pot/giving kids a lump sum at some point.

OH also has recently bought a 3rd buy to let property with approx £25,000 equity.

Although I have always been stupid with money and lived way beyond my means, the only good thing I ever done was buy those properties and with my ex husband we would buy houses, renovate them, make some money and move on. We loved it at the time, wasn't easy with young kids but he done all the work and I would go out and buy stuff to decorate (no wonder I enjoyed it). There was good money to make at the time, but too risky in recent times. Doing that helped us build good equity in our homes, if only I had invested all the money spent on shoes, clothes and holidays into property I wouldn't be in this mess!

enthusiasticsaver

Joint accounts are not frozen if anything happened to one of you. It is sole accounts which cannot be touched if either of you died (obviously in the one whose name it is). Safest thing I think and one we have always followed is income for both goes into joint account and joint bills comes out of there. Agreement on how much personal spends you each have and have a personal account each and savings accounts either linked to joint or personal accounts. That covers any disparity in income and as you have a child together that is important. You may want to sort out the house and equity by some sort of deed of trust as your DH now has a financial interest in it as he is living in it and presumably paying towards upkeep. At some point you may want to sort out the names on the deeds and mortgage in case anything happens to you. You also both need wills now you have a child and are married.

reality_check

Cherryfudge wrote: »

Just a thought but if anything happened to one of you, accounts in joint names could possibly get frozen? I don't know if that applies to all of them but it's worth checking. Even a relatively small independent account each would mean you had access to funds while legalities were sorted out, and of course could save giving away what you spend on presents for each other!

If it worked better for you, independent accounts could be paid for by 'pocket money' DDs from joint accounts.

There may be someone around with more up to date knowledge than I have, so get other advice. Also if you have had a negative experience in the past then that's good reason, for your peace of mind, not to hold all accounts in common unless/until you feel ready.

We will go and get legal advice, just need to hurry up and sort it out. I never knew about freezing bank accounts!! Will def look into it, thanks Yeah maybe the pocket money thing is a good idea, all incomings into the joint account and an agreed amount transfered each month to spend on whatever we each want....I am hoping having someone elses money will help me control my spending (not that it did with my ex husband, but I wasn't a debt free wannabe then!) xx

reality_check

enthusiasticsaver wrote: »

Joint accounts are not frozen if anything happened to one of you. It is sole accounts which cannot be touched if either of you died (obviously in the one whose name it is). Safest thing I think and one we have always followed is income for both goes into joint account and joint bills comes out of there. Agreement on how much personal spends you each have and have a personal account each and savings accounts either linked to joint or personal accounts. That covers any disparity in income and as you have a child together that is important. You may want to sort out the house and equity by some sort of deed of trust as your DH now has a financial interest in it as he is living in it and presumably paying towards upkeep. At some point you may want to sort out the names on the deeds and mortgage in case anything happens to you. You also both need wills now you have a child and are married.

Thanks I think joint account with a set amount is the way to go...will say to OH. He is very good at saving, but when he does spend he likes expensive things! I really do need to update my will, has been on my to do list for years, will get this done asap!! I think all property owned (other than with my ex husband) will go into joint names.

One month into the joint spending and Mr Reality will probably look at my spending and want a pre-nump! :rotfl: Well post-nump now. Of course he won't really....new year new me after all! xx

Cherryfudge

Glad you read all the posts - I think enthusiastic saver is probably better informed than I am!

Big decisions to make. Take a long hard look at everything before you make decisions.

Seasidegal58

reality_check wrote: »

Although I have always been stupid with money and lived way beyond my means, the only good thing I ever done was buy those properties and with my ex husband we would buy houses, renovate them, make some money and move on. We loved it at the time, wasn't easy with young kids but he done all the work and I would go out and buy stuff to decorate (no wonder I enjoyed it). There was good money to make at the time, but too risky in recent times. Doing that helped us build good equity in our homes, if only I had invested all the money spent on shoes, clothes and holidays into property I wouldn't be in this mess!

Re your last sentence I think that was also me to a tee! But we know better now don’t we Reality.........::D

But you’ve both got a nice little portfolio of property there. Hard to beat bricks and mortar sometimes.

reality_check

Finally had a look at my bank statements and credit cards…not as bad as I thought!

I can officially say I am CREDIT CARD FREE!! :j:T:j:T

All that is left is the outstanding debt to my dad of: £7,000, which is interest free with no immediate time to be paid back.

This time last year my debt was £9,700 so last year I only paid of £2,700 but I did have a baby, went a few holidays, had a debt free Christmas and I am also on maternity leave, so I will happily take that!!

We have also decided that I am going to be taking a full year maternity leave. Currently I am on 6 months full pay, then goes onto 3 months half pay and 3 months zero. During the zero pay I will actually have practically 2 full time wages for 2 months as I am using holidays for these.

The 2018 plan is…save, save, save!

I plan to save £500 per month, £100 towards debt and £100 towards Christmas. I am not budgeting pots for car MOT, insurance etc…this is all just going to be coming from the £500 fund pot, next year when I am back on full time wages I will start doing that. This still leaves me a very realistic amount of money for food shopping, petrol and personal spending that I really feel I can comfortably live with. I could tighten my belt even further, but right now I don’t want to. I want to enjoy my time off with our little baby but I certainly won’t be living an extravagant lifestyle.

I also have £500 aside for my daughters 21st and hoping to top this up to £1000 over my next 3 wages. I have already paid for a weekend away in Barcelona for my friends hen over her birthday weekend and she is more than happy by being there and didn’t want a party (thankfully!)

Pay day is on Monday and time to start saving!!

xxx

Seasidegal58

Big congrats on the CC debt clearing!:j:j:j

Well done! When you look back at your starting debt figure of over £18,000 you should be really proud. And you’ve done it whilst still enjoying yourself plus two major life events!

It will be lovely to have a full year off with the little one. I went back to work a month after DD was born (needed the money) and have never had a proper break since. She was in excellent hands (my mum) but it would have been good to have spent more time with her. You don’t ever get that time back.

Great news on the savings pot plans too! You’ve got it all worked out - including a nice Barcelona break to look forward to as well!