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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think I will always have financial stress now others have pointed this out?

286 replies

Baept15 · 11/08/2024 07:34

I’m almost forty. I have 190k owing on my home which was last valued as 550k.

I have 20k savings and an old car that I may need to replace in next couple of years. I have a dc age 6 and save around 200 a month for her for future but I’ve worked out that won’t even touch the sides for support through uni. Dc should theoretically get a decent house deposit from inheritance (not guaranteed but is my parents’ plan). Again theoretically I should have inheritance to cover the last of my mortgage but who really knows.

I pay into a pension but only 8 percent of my 54k salary. I can’t pay more it’s tight as it is.

I feel like I have no security. Dc has no security through me either, what will 20k savings be and I can’t even add more than 100 or so a month to them at the moment. I feel worried. I didn’t think I would get to forty and still feel like I did in my twenties, panicking about making ends meet.

OP posts:
Bearpawk · 11/08/2024 14:40

It sounds like you're sole provider and although you're feeling the pressure have a lot more financial security and options than most single parents - or indeed a lot of parents altogether.

Stop thinking about uni
Downsize if needed
Stop saving so much if you can't eat

BunnyLake · 11/08/2024 15:17

OP you are going to have to get help for your anxiety. It isn’t fair on your dd to have to spend her childhood and teens dealing with this first hand, as she will inevitably have to. You won’t be able to hide this level of stress and anxiety from her, if this thread and your other one is anything to go by.

usernamealreadytaken · 11/08/2024 15:23

Baept15 · 11/08/2024 07:39

@DustyLee123 200 extra a month seems pointless? I owe so much still? And then what if she does go to uni and I have absolutely nothing to support her? So stressed about it all

If you paid that extra £200 per month off your mortgage, you’d pay it off years early and save thousands. Assuming your £190k still has around 15 years left, you’d save over £12k and pay off nearly three years early. Use the MSE overpayment calculator to check.

otherwise, the £30k-odd that you’ll have saved for DD will not be insignificant, whatever she decides to spend it on.

usernamealreadytaken · 11/08/2024 15:25

Baept15 · 11/08/2024 08:45

@Sapphire387 wow. I wonder if you are alone with a six year old with it all on you? It’s a horrendous feeling and you may re think your post if you can imagine being in that situation. I have nobody to help me with these decisions let alone actually contribute financially

Can we ask why her father isn’t contributing to her upkeep and future?

SunshinyDay1 · 11/08/2024 15:43

Op where are you saving the money, is it in stock and shares because it should be grow well by the time she's at uni.
Not so much in 5 % saving account.

You need to say where your money is going and I honestly would reduce the 200 a month, find better return instead, and don't worry too much about uni. There are many amazing apprenticeships available now which pay as well as learn.

GoldOnyx · 11/08/2024 15:46

Baept15 · 11/08/2024 07:34

I’m almost forty. I have 190k owing on my home which was last valued as 550k.

I have 20k savings and an old car that I may need to replace in next couple of years. I have a dc age 6 and save around 200 a month for her for future but I’ve worked out that won’t even touch the sides for support through uni. Dc should theoretically get a decent house deposit from inheritance (not guaranteed but is my parents’ plan). Again theoretically I should have inheritance to cover the last of my mortgage but who really knows.

I pay into a pension but only 8 percent of my 54k salary. I can’t pay more it’s tight as it is.

I feel like I have no security. Dc has no security through me either, what will 20k savings be and I can’t even add more than 100 or so a month to them at the moment. I feel worried. I didn’t think I would get to forty and still feel like I did in my twenties, panicking about making ends meet.

Saving £200 per month for your DD will (roughly) add up to £29k, if you use it when she’s 18/19 to support her through uni. That is a lot of money and I’m sure she’ll welcome it!

None of us know, of course, how much uni fees will be when your DD is old enough to go to uni - or even if she’ll want to go. However, whatever she decides to do after she finishes school, £29k is a very generous sum of money that will help her a lot. Are you planning to use that money to pay for your DD’s uni fees or to help her with maintenance costs? I think it will go a long way towards helping her with maintenance costs (if she chooses to go to uni).

Also, I wondered if you’re saving this in cash or in stocks/shares? I’d suggest investing it in stocks and shares, if you feel comfortable with that, as you’ve still got a long time before you’ll need to use the money (at least 10 years, if your DD is 6). There are loads of helpful and clear guides on how to start investing money, on the Internet. I like Martin Lewis’s advice, but there is a lot more out there if you want to compare it for yourself, which is probably the best way of doing it.

MrsWombat · 11/08/2024 15:56

Have you done the maths for paying your mortgage off quickly? No savings (other than a basic three-month emergency fund) but no mortgage by the time she's 18 will put you in a good position to spend what would have been the mortgage money on putting her through university.

BonifaceBonanza · 11/08/2024 16:14

Do investigate whether overpaying your mortgage would be the best use of your surplus

Normallynumb · 11/08/2024 16:22

Your DD is 6 Who knows what her future will bringyou have an asset which you can downsize if necessary in the future.
Pension, savings, good salary which does represent security( you have options) but FGS save £50 less so you can afford to eat
I think this is not about finances, it's anxiety which you need some help with.

happysoul23 · 11/08/2024 19:14

Lone mother here, no savings, earn 34k per year, rent over half of monthly salary. No hope of ever buying g, minimal pension.
You are in a good position, one I certainly would appreciate.
You choose to put £200 a month away for your child in case they go to university. It's madness that you go without good for this!
You really are not struggling , you are prioritising to be in that place x

Maryamlouise · 11/08/2024 19:31

Pretty similar finances to you though am a little older with two DC and a DP but less savings and more owed on mortgage and while I know we are very well off it does seem like we have little leftover at the end of the month and I am easily stressed about money so I can see why you worry. We are downsizing but only staying within school catchment and so I wouldn't do it if it is going to uproot your DD but at least you know it is an option for the future (there is very little in our school catchment that makes downsizing worthwhile so if this property chain breaks down then we will probably just stay put and look to make a move when the DC leave for uni/work)

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