Financial advice please

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 stayfreejc 10 Feb 2015
Right. I'm just after a bit of financial advice. Me and me wife have just had an offer accepted on a new house. Now our outgoings are going to go up by £200 a month. My wages will cover all of the bills and mortgage. So if she lost her job then my wages would cover everything that could potentially get you in trouble if you didn't pay. This then leaves her wages for food and living.

My basic pay £1500
My usual pay with OT £2000

Wife's pay £1200.

These figures are after tax. So worst case scenario if we both had a basic month then we would have £1200 for food, petrol and living although realistically it would usually be more like £1700. I'm just after some honest opinions as to whether or not this is a good/bad situation. I know finances are very much down to opinions so would you feel comfortable living like this?
 Philip 10 Feb 2015
It depends on how safe your and your wife's job is. We have both got good jobs, but no job is safe. We both work in the private sector in well paid but niche areas. We've never been in a situation where one salary can't pay all bills and food. I would not want to pay more than 1/3 of out total net on mortgage.

Treat OT as saving / fun money. If you rely on it then it will go.

The new mortgage rules are supposed to ensure that your lender / broker goes through this with you.
In reply to stayfreejc:

Do you have any savings at all? If you do, and it's enough to cover the mortgage/important bills for 6 months, then I would feel reasonably comfortable.

Is the mortgage fixed rate? If so, for how long? I don't think rates are going anywhere for a long time (personal opinion) but be aware that when you come off a fixed, you might not get as good a rate as you have now, potentially increasing your monthly mortgage.

Also consider (if applicable to yourselves) if you want to start a family in the future and how this could impact your finances.

But on the information you have given above, I think I would go for it.
J1234 10 Feb 2015
In reply to stayfreejc:

If you want decent advice, my first port of call would be Citizens Advice, before you get in trouble not after.
 wintertree 10 Feb 2015
In reply to stayfreejc:
> Would you feel comfortable...

That's the key. Being "one job safe" puts you ahead of many partnerships. How safe that one remaining job would be is a question for you.

I feel comfortable, but then I've spent almost a decade penny pinching, budgeting and cultivating miserly ways. for the other view, I believe there's a classic Mumsnet thread from a kept partner who worried about only enough to afford two foreign holidays after the private schooling...

Beyond survival which is objective you have comfort which is subjective. The only tips I have for setting a low financial level for comfort are 1) do fun, cheap stuff lots 2) budget meticulously - once you know precisely where it all goes you may be much happier about it and more able to save it and 3) try and save everything above your comfort level until you hace a nice big buffer zone. In fact push into the comfort zone with the savings for a few months and prove to yourself that you could live happily for less.

> £1200 for food, petrol and living

Sounds like a metric shed load of cash. £250 for all household bills, £200 for grocery for two - no ready prepared food, £100 for "running costs" for a car, £200 for fuel for 1800 miles of motoring, £100 for a few meals out... That's £850 - so £350 spare, that'll leave room if I underestimated your bills (get em under control!) or miles.
Post edited at 08:53
OP stayfreejc 10 Feb 2015
In reply to stayfreejc:
Cheers for the responses. Made me feel a lot better about it all. I've always been a worrier when it comes to money so it's good to get some varied advice.
 ianstevens 11 Feb 2015
In reply to stayfreejc:
So worst case scenario if we both had a basic month then we would have £1200 for food, petrol and living although realistically it would usually be more like £1700.

I would kill for that in a good month.

 Cú Chullain 12 Feb 2015
In reply to stayfreejc:

Take your wifes pay and stick on Jolly Dockers Fist @ 22/1 at 3.45 Doncaster.
 marsbar 12 Feb 2015
In reply to stayfreejc:
https://www.moneyadviceservice.org.uk/en

They have a spreadsheet set up so you can put in your money in and out and see what is going on. I found it useful.

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