Can I afford to live?

[Deleted User]

EmilySmith19921 wrote: »

Overall I have budgeted 800, purely for CT, all bills, mortgage, house insurance and car. I've taken this estimate rrom friends, family and my partner who live in the area and think I should be paying around that.

Why would you not get your own quotes, rather than assuming your outgoings will be the same as someone who isn't you and doesn't live in your house?

grumbler

EmilySmith19921 wrote: »

Overall I have budgeted 800, purely for CT, all bills, mortgage, house insurance and car. I've taken this estimate rrom friends, family and my partner who live in the area and think I should be paying around that. I have researched the CT, insurance and water prices for the area I have bought in (my partner owns a house just round the corner).

So, ~£340 purely for the CT, bills and house insurance? Looks too much to me, especially for a person on a tight budget and if, as I said above, insurance can be virtually free for a smallish house.

jonesMUFCforever

OP do you live by yourself?
If so does your local authority offer 25% reduction in CT and have you claimed it?

No_6

Get MS money or some new phone thingy money program,
that tells you what you SPEND !
after entering all your data !!!
Use it to enter EVERY thing, DD's what ever....
to see what you have or have not.

No one knows...apart from you

firely2327

EmilySmith19921 wrote: »

I have just bought my own house, on my own. Yay!
However now, I am starting to panic. Can I afford to live? I earn £21,000 a year, and my mortgage will be around £260 a month. As I'm on my own, I have no other help or income.
I also pay out 200 a month for my car and insurance.
I estimated 800 a month but that figure appears to be growing the more I think about it! Have I made a mistake?

Of course you can afford to live. Your mortgage lender wouldn't have given you the mortgage otherwise. However, you may have to cut back on some frills that you've been enjoying up till now, and as others here have said, you should have a detailed budget worked out. I'm surprised this wasn't done before the mortgage application. Making your own lunch if you already don't, is a big area for saving. Make sure also you're not paying more than you need to for utilities.


Just don't panic. Owning your own pad feels great but also a bit of a burden if I can use such a word, so it's not unusual to feel a bit overwhelmed. You'll be okay if you're sensible.

JuicyJesus

To be honest £21k is about £1400 a month. £260 for a mortgage means you'll be more than fine. My bills are more than that (even when split with my partner) and my income is less than that and I still have a fair whack left over.

EmilySmith19921

Hi everyone,


Thanks for all the replies.
I have now completed a spreadsheet with all my outgoings and incomings (I only have a laptop at work).
I have done my research and got estimates for everything from Council Tax to Home Insurance. These were all well within my original estimates. In total I am looking at paying out £890 per month, and I have also left some either side to prepare me, as well as set a tiny amount aside for savings (for emergencies etc). All in all I will have around £500 a month left over (give or take), so while I will have to change the slightly extravagant lifestyle I'm used to I know I can manage. This will be worth it to say that I own my own home... I'm also hoping to get a pay rise within the next 6-12 months.


Thanks for the help, it was definitely useful to write everything down as I now have a good idea.

p00hsticks

EmilySmith19921 wrote: »

I have also left some either side to prepare me, as well as set a tiny amount aside for savings (for emergencies etc). All in all I will have around £500 a month left over (give or take), so while I will have to change the slightly extravagant lifestyle I'm used to I know I can manage.

If you have £500 a month left over, then it would be a good idea to set aside more than 'a tiny amount' for savings, at least until they reach a comfortable amount. A rule of thumb is that savings of three to six months salary is a reasonable 'emergency fund' in case of losing your job, having to take extended sick leave etc.

Natasha.rb

Don't let people panic you straight away!

I took on my house when i only earned £14K a year when me and my ex split.
First thing I did was a spreadsheet! Cancelled all none essentials (Sky TV, gym etc) and got myself down to basics and built up from there.

I can't express enough how much a good spreadsheet or budget will help you.

PeacefulWaters

£500 a month spare? Get saving half of it. Minimum.