Page 2 | Rate my financial situation

Juniperberry55 · 2025-07-07T14:25:05+00:00

Everything finance wise on Mumsnet seems to be very polarised, either those on £100k+ income with tens of thousands in savings and a holiday home, or not having 2 pennies to rub together I'm quite curious to see how people would rate my financial situation on average for my age So I'm 33, live alone I own a house worth roughly £220k with around £45k mortgage left to pay Around £14k in debt on 0% credit cards and a low interest loan all due to be paid off in around 2 years Income around £42k a year Almost no money in savings, currently trying to build up an emergency fund of a couple of months pay £0 retirement I'm guessing there will be the odd comment about this being a stealth post. It is not, I am in debt, I think my finances are not great in some areas, in others I think they're not too bad Score me 0-10 on how you think my financial situation is for my age 0=awful 5= average 10=Jeff bazos level 😂

Original poster

Juniperberry55 · 08/07/2025 23:16

dementedmummy · 08/07/2025 23:09

Look up Dave Ramsay baby steps - the plan works brilliantly to clear the debt and get financial stability. There's a whole community on Facebook dedicated to the plan

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I've seen a fair bit of Dave Ramsey stuff, I agree with some of it. I think his $1000 emergency fund to start with and then clearing the debt before saving anything else, I'd rather have more in savings before going crazy on debt repayments but I agree with the principle of some of it albeit I find him a bit preachy and obviously it's aimed at American economy. I quite like Caleb hammer as well tbf.

OP posts:

dementedmummy · 08/07/2025 23:09

Juniperberry55 · 07/07/2025 15:32

Trying to build up a couple of months pay and then really hammer down on the debt repayments and then go back to paying into emergency fund to get a full 6 months expenses in there as I don't want to get into more debt because I have £0 in savings if something crops up with house/car repairs etc if you know what I mean

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Look up Dave Ramsay baby steps - the plan works brilliantly to clear the debt and get financial stability. There's a whole community on Facebook dedicated to the plan

Original poster

Juniperberry55 · 08/07/2025 23:01

Blablibladirladada · 08/07/2025 22:47

Your reasoning is based on the fact that you have time.

I am pointing that you might or not. You falsely assume that you have time because you are 30ish. I certainly wish for you to remain healthy but a lot of people feel very differently in early 30s, early 40s, early 50s…etc. Retirement is to be bumped 67?68?

My point in talking about care : evident long term needs and my point in « paying the bank all your life » : paying a mortgage which includes the fees but fail to secure being able to pay this mortgage if loose job/accident. Yes, in 2 years you will be able…etc and I hope nothing happen in the next 24months but who knows? You simply put could loose the house and a big part of the equity as the bank won’t care about « leaving you some ».

I think that it is quite clear what I say. Yes, you are working at it but I would seriously make some change now and not wait later.

Join the retirement scheme now could be a start. But someone whose job to talk you through this and with a better assessment than mumsnet would be a financial advisor. They aren’t just for people with extra money…a reshuffle of budget is also something they do.

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I mean even if the bank forced me to sell the house for 150k they would still have to give me back 100k they don't get to keep my equity and there's if I fail to pay the mortgage. If I lose my job through redundancy I would get about £10k. I would also have a couple of thousand in savings as redundancies usually takes a few months before you actually stop work. So I could get by for a few months without the world ending, banks will also let you pause payments for a couple of months usually and at one point I was overpaying the mortgage (not any more) so that would probably get me another month or 2. If I got very sick I would get 6 months full pay, 6 months half pay so again would give me some time, if I was desperate I could sell the house in those 12 months. I agree my position with debt and savings isn't good but I'm am currently doing something to improve my position and payijg into my pension from today instead of 18months-2 years wouldn't immediately made this position less precarious so I'm not sure what you think I should do about this except for trying to save and pay off my debt, which I am

In regards to paying for care, like I said I understand paying towards care al ot better than the average person, possibly in more detail than some financial advisors. It was literally my job at one point. I have explained why paying for care is not a concern for me whether that be in 5 years or 40 years

There is literally nothing I would like from a financial advisor at the moment as I am comfortable with my plan and I don't want to pay for one. I am happy in my choices and it is fine you disagree but it doesn't stop me being absolutely fine with my choices

OP posts:

HeyThereDelila · 08/07/2025 22:48

You must, must, must start a pension. Now.

Having only £45k left to pay on your mortgage at the age of 33 is amazing, but make sure you’ve got £20k aside for emergencies and ensure 17% of salary is going in to a pension - that’s a combination of your contribution (pre tax so isn’t that noticeable), employer contribution and Govt tax relief.

Blablibladirladada · 08/07/2025 22:47

Juniperberry55 · 08/07/2025 22:09

Happy with the 0 rating as some people would indeed feel very uncomfortable in my position currently with low savings and the debt but I'm not sure how paying for care had anything to do with it or paying the banks forever
In regards to a financial advisor, I don't see much point in seeing one currently. Maybe at the point when I've paid off debt and got an emergency fund and started paying into the pension. At that point I may have spare cash that I want to save and invest that might need some expertise but I'm not sure it would be worth paying for a financial advisor at this stage

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Your reasoning is based on the fact that you have time.

I am pointing that you might or not. You falsely assume that you have time because you are 30ish. I certainly wish for you to remain healthy but a lot of people feel very differently in early 30s, early 40s, early 50s…etc. Retirement is to be bumped 67?68?

My point in talking about care : evident long term needs and my point in « paying the bank all your life » : paying a mortgage which includes the fees but fail to secure being able to pay this mortgage if loose job/accident. Yes, in 2 years you will be able…etc and I hope nothing happen in the next 24months but who knows? You simply put could loose the house and a big part of the equity as the bank won’t care about « leaving you some ».

I think that it is quite clear what I say. Yes, you are working at it but I would seriously make some change now and not wait later.

Join the retirement scheme now could be a start. But someone whose job to talk you through this and with a better assessment than mumsnet would be a financial advisor. They aren’t just for people with extra money…a reshuffle of budget is also something they do.

Original poster

Juniperberry55 · 08/07/2025 22:34

AbzMoz · 08/07/2025 22:23

Like PP, the lack of long term savings/pension would be my worry. Not contributing to the workplace pension scheme means you’re missing out on matched contributions and the impact of compounding but also (all?most?) schemes are calculated based on age and also years in plan, so if you could be penalised if you fall short of the membership/vesting periods…

As someone under 40, you could also / alternatively give your pension boost with the LISA (for retirement), maybe even just the small amounts left over from the ‘buffer not needed’ category on your itemised list?

maybe consider income protection insurance?

I've answered the pension stuff a few times, CBA to repeat on that one
The buffer category is to cover birthday presents, unexpected vet visit, small repair on house/car so used fairly often, I don't want to get out anymore debt to cover these, any left over at the end of the month is to be added to savings/debt currently
I don't want to pay for income protection due to my sick policy at work being decent and if I got made redundant I would be paid redundancy money and hopefully emergency fund would be looking a bit healthier by then

OP posts:

Original poster

Juniperberry55 · 08/07/2025 22:26

AvidJadeShaker · 08/07/2025 21:58

6.48223/10

Edited

Thank you for your very precise rating 😂

OP posts:

DoYouReally · 08/07/2025 22:25

There isn't a financial advisor in the world that will tell you to ignore pension until your 35, especially one where your employer contributes.

If there's a workplace pension, there will be a pension firm that you should be able to contact and get them to run the numbers if you start it now vs waiting to 35.

Then make a fully informed financial decision. I will bet anything that you will see the benefit of it after talking to them.

AbzMoz · 08/07/2025 22:23

Like PP, the lack of long term savings/pension would be my worry. Not contributing to the workplace pension scheme means you’re missing out on matched contributions and the impact of compounding but also (all?most?) schemes are calculated based on age and also years in plan, so if you could be penalised if you fall short of the membership/vesting periods…

As someone under 40, you could also / alternatively give your pension boost with the LISA (for retirement), maybe even just the small amounts left over from the ‘buffer not needed’ category on your itemised list?

maybe consider income protection insurance?

CatusFlatus · 08/07/2025 22:18

PeapodMcgee · 07/07/2025 15:39

See, I disagree with prioritising a workplace pension to the detriment of today. Most people do end up inheriting something (not guaranteed, but most do), and OP will have few outgoings in her 70s, unless she wants to let rip.

A workplace pension is literally free money and the government pay in too (via tax relief). It's false economy not to join a workplace pension.

Original poster

Juniperberry55 · 08/07/2025 22:14

AvidJadeShaker · 08/07/2025 22:07

So when you do start your pension at 35 you/your employer need to aim for 17.5% of your income. If you had started at 22 it would have been 11% to get the same amount.

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That's fair enough. I kind of see it as a trade off. I may have to put more into pensions when I start paying in at 35 Vs 22. But it has meant I could afford to pay to get the house earlier. My employer pension may fall below the 17.5% needed but it would just mean I'll need to make up the rest in some other way, another private pension or investments I guess .I think 17.5% doesn't sound too bad at that point to be honest

OP posts:

Original poster

Juniperberry55 · 08/07/2025 22:09

Blablibladirladada · 08/07/2025 22:03

Yes was formatting.

Of course you can’t go back in time but as it is more « urgent » than to accumulate equity in your house and that effectively the bank wouldn’t care much for you to sold your house to have access to this equity in case of emergency…all these are the reasons why I said 0. that was your question.

My answer is that because of the « now » not being secured and the « future » not being secured too. Let alone if you have any accident of life. Only the « a little later may become secured ».My advice is that you speak to a financial advisor. Your situation seems very precarious.

Have a good evening.

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Happy with the 0 rating as some people would indeed feel very uncomfortable in my position currently with low savings and the debt but I'm not sure how paying for care had anything to do with it or paying the banks forever
In regards to a financial advisor, I don't see much point in seeing one currently. Maybe at the point when I've paid off debt and got an emergency fund and started paying into the pension. At that point I may have spare cash that I want to save and invest that might need some expertise but I'm not sure it would be worth paying for a financial advisor at this stage

OP posts:

AvidJadeShaker · 08/07/2025 22:07

Juniperberry55 · 08/07/2025 22:04

My house value Vs mortgage is purely to do with timing on property ladder when I bought it in 2013 it was worth about 125k, mortgage has always been 2.something% and is secured at that rate for another 4 years. Its needed some pretty big repairs over the years, hence the debt.
So basically my equity position is good because of a bit of luck with house prices increasing and low interest rates. Luckily when this rate ends I will have a small mortgage so hopefully any rate increase won't cripple me as much as if i was just starting out
Definitely working on point 1 and 2 and then can move onto your 3rd point

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So when you do start your pension at 35 you/your employer need to aim for 17.5% of your income. If you had started at 22 it would have been 11% to get the same amount.

tillyandmilly · 08/07/2025 22:06

I made the mistake of not putting into a pension fund as was temping until I was 40 and only putting minimum amount with my permanent role in a small company 10 years later made redundant - so only have £18,000 pension late 50’s - all my contemporaries have retired - I could kick myself and there won’t be any inheritance for me ! Please start now paying something into one -

Original poster

Juniperberry55 · 08/07/2025 22:04

winter8090 · 08/07/2025 21:57

How did you get to the position with such a low mortgage v value on your property?
Youd be in good shape if

you had no debt
you had 6 months savings
you were funding a pension with 15% of your income

My house value Vs mortgage is purely to do with timing on property ladder when I bought it in 2013 it was worth about 125k, mortgage has always been 2.something% and is secured at that rate for another 4 years. Its needed some pretty big repairs over the years, hence the debt.
So basically my equity position is good because of a bit of luck with house prices increasing and low interest rates. Luckily when this rate ends I will have a small mortgage so hopefully any rate increase won't cripple me as much as if i was just starting out
Definitely working on point 1 and 2 and then can move onto your 3rd point

OP posts:

Blablibladirladada · 08/07/2025 22:03

Juniperberry55 · 08/07/2025 21:02

I'm not sure what all the arrows mean, I assume it's formatting that's gone funny
In regards to the right here and now, yes I have low savings, so I'm working on it, within the next few months I'll have a couple of grand, if I got made redundant I would get some money from that to get me through a couple of months. I agree it's too little money in my savings but I can't go back in time so I'm working on it now

I'm am very aware of social care charging legislation. Home care (carers coming into your home), your home doesn't get sold from under you I can guarantee you that is not allowed and they cannot expect next of kin to contribute to your care contributions unless you want more care over and above the care that would meet your needs. In which case it isn't something the council would fund but your family could choose to pay for anything on top of what the council decides is essential, you would be means tested based on your income if your savings were below £23250.
If I was in the position to need to go into a residential home because I couldn't safely stay in my own home with carers coming in, I couldn't give a monkeys about selling the house and paying for my care in the care home of my choice. I'm not sure what point you're trying to make. Do you think I'd be better off paying rent forever or something? In fact you can even rent out your house and enter into a deferred payment agreement where the house doesn't need to be sold until you die, house can be rented out, you pay a contribution based on your income and then the difference between your contribution and the cost of the placement is charged against the property when you die and the property is sold. Effectively potentially allowing you to extend how long the house funds your care and potentially meaning there might be a bit more equity for your beneficiaries when you pass away as the rental income can help with the costs protecting the equity a little

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Yes was formatting.

Of course you can’t go back in time but as it is more « urgent » than to accumulate equity in your house and that effectively the bank wouldn’t care much for you to sold your house to have access to this equity in case of emergency…all these are the reasons why I said 0. that was your question.

My answer is that because of the « now » not being secured and the « future » not being secured too. Let alone if you have any accident of life. Only the « a little later may become secured ».My advice is that you speak to a financial advisor. Your situation seems very precarious.

Have a good evening.

AvidJadeShaker · 08/07/2025 22:02

Juniperberry55 · 07/07/2025 16:35

State pension will be fine I pay national insurance and have done at all jobs since I was 17 so by the time I hit retirement age I'll be entitled to the state pension.
When I say I have no pension I mean I'm not paying into a pension fund where my employer would also contribute. This is in addition to state pension. I plan on starting contributing when I am 35 debt free and have an emergency fund

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This is madness.

winter8090 · 08/07/2025 21:59

Right now I think your about a 4

Makingpeace · 08/07/2025 21:59

Juniperberry55 · 07/07/2025 16:35

State pension will be fine I pay national insurance and have done at all jobs since I was 17 so by the time I hit retirement age I'll be entitled to the state pension.
When I say I have no pension I mean I'm not paying into a pension fund where my employer would also contribute. This is in addition to state pension. I plan on starting contributing when I am 35 debt free and have an emergency fund

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I'm not paying into a pension fund where my employer would also contribute.

Whyever would you not?!! 🤯

AvidJadeShaker · 08/07/2025 21:58

6.48223/10

Original poster

Juniperberry55 · 08/07/2025 21:58

IwasDueANameChange · 08/07/2025 21:47

5

You have equity in your home (is home definitely worth that?) But the £14k debt is a lot on that income and no pension whatsoever at age 33 would worry me a lot.

Yep, slightly smaller houses on same street have gone for slightly less, houses same as mine have sold for 220k-240k over the last few years so should be fairly accurate as I'm going on sold prices rather than listing prices
The 14k debt is definitely the thing that concerns me currently, not overwhelming but high enough for me to want to tackle it asap

OP posts:

winter8090 · 08/07/2025 21:57

How did you get to the position with such a low mortgage v value on your property?
Youd be in good shape if

you had no debt
you had 6 months savings
you were funding a pension with 15% of your income

Original poster

Juniperberry55 · 08/07/2025 21:53

restingbitchface30 · 08/07/2025 21:45

You’re in a better position than me and I’m almost 40. Still not managed to buy a house and we are currently living on my partners wage alone as I’m a SAHM. We have savings and only 2k debt but you’re still way better off!

Swings and roundabouts in my opinion. Being a sahm means you've achieved differently to me, you have a child and you've kept your heads above water and savings. You could potentially return to work at some point and still have time to get on the housing ladder if you choose

OP posts:

Shellyash · 08/07/2025 21:52

You asked for a rating between 1-10, I'd say 6.5
Steady and stable. But remember 80% of wealth is held by 20% of population so at 6.5 you are up towards the top of the remaining mere mortals. Well done and keep going.

IwasDueANameChange · 08/07/2025 21:47

5

You have equity in your home (is home definitely worth that?) But the £14k debt is a lot on that income and no pension whatsoever at age 33 would worry me a lot.