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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

1 year No Saving but I have responsibilities ?!

118 replies

Peachh · 07/10/2022 16:53

I will be 30 in 2 years, I have a 7 year old and I am SP.
I want to buy a house but in London it’s very hard obviously and I only have £10k saved. Am I being irresponsible and delusional to want to have 1 year of no saving, just spending freely, buying whatever, going on holidays and treating DC. I have £5k in debt, tone of Student loans which I will be paying back for forever but now earn good money.

Convince me not to (I have some what already started as we went on holiday for the first time since the pandemic and I spent like there was no limit).

OP posts:
JudithHarper · 07/10/2022 16:56

It's your life. Fritter it away year after year if you want to. Convince yourself to save if that is what you want.

Valid8me · 07/10/2022 17:02

If you want to go a whole year and not save any money, then do it. Just don't complain down the line when you are still struggling to save a deposit and can't afford to buy a house.

Valid8me · 07/10/2022 17:03

And if you have 5K debt then you don't really have 10K in savings, you have 5K.

Testina · 07/10/2022 17:06

If you were single, go for your life.
When you have a child, yeah I think it’s irresponsible to waste an opportunity to save towards whatever is the most secure housing for you both.

SleeplessInEngland · 07/10/2022 17:09

Why London?

Plexie · 07/10/2022 17:10

Valid8me · 07/10/2022 17:03

And if you have 5K debt then you don't really have 10K in savings, you have 5K.

This.

Plus, does the year of 'spending freely' include not paying any of the £5k debt?

Original poster
Peachh · 07/10/2022 17:13

Valid8me · 07/10/2022 17:03

And if you have 5K debt then you don't really have 10K in savings, you have 5K.

I know I just wanted to state it plainly what was what. The 10k is also in a HTB so can not access it.

OP posts:
User112 · 07/10/2022 17:14

Put down some numbers on paper. It can help you assess your situation objectively

ilovepuppies2019 · 07/10/2022 17:15

As PP's mentioned, after your debt you have 5K savings. Is that anywhere near E ough to make a dent in a deposit for a London property? Sadly I expect not. I read an article about this trend OP so you're far from alone. The idea is that the payoff for the saving (buying a home) is so far away nowadays that's it too difficult for many people to remain motivated to save so they give up and spend it instead. In the past the payoff came quicker so it was easier to remain focused. Personally I wouldn't blow the money. 5K isn't that much and might be needed for emergencys or major repairs. You could end up blowing through money you really need rather than just a future deposit. I would personally look for for cheaper options elsewhere if at all possible as I imagine there you'll be saving for a long time.

Original poster
Peachh · 07/10/2022 17:16

SleeplessInEngland · 07/10/2022 17:09

Why London?

Born and raised in London. Moved to M25 area for better quality and lower cost renting. But leaving London is a no for us atm.

OP posts:
LouLouHatedHarry · 07/10/2022 17:19

You’re in a very precarious financial position and would be mad to worsen it.

Changer25 · 07/10/2022 17:23

As much as I’d like to say #yolo - spend spend spend unfortunately I’d think you’d regret it. A few years of sacrifice now and you could be on the property ladder with your own hoke for you and DC. If you can, persevere and get that deposit

Original poster
Peachh · 07/10/2022 17:24

ilovepuppies2019 · 07/10/2022 17:15

As PP's mentioned, after your debt you have 5K savings. Is that anywhere near E ough to make a dent in a deposit for a London property? Sadly I expect not. I read an article about this trend OP so you're far from alone. The idea is that the payoff for the saving (buying a home) is so far away nowadays that's it too difficult for many people to remain motivated to save so they give up and spend it instead. In the past the payoff came quicker so it was easier to remain focused. Personally I wouldn't blow the money. 5K isn't that much and might be needed for emergencys or major repairs. You could end up blowing through money you really need rather than just a future deposit. I would personally look for for cheaper options elsewhere if at all possible as I imagine there you'll be saving for a long time.

I think you’ve hit the nail on the head, this is exactly how I’m feeling. I could save about 20 K each year if I really tried but that would mean being extremely extremely tight with spending and I’m not sure I have the discipline for that. With that being said I can see myself purchasing a home in the near future but I don’t want to not live my life in my 20s only to buy a house and still have the financial burden of the mortgage.

I have thought of being a long time renter, in other countries this is the norm.

OP posts:
PrincessButtercupToo · 07/10/2022 17:26

You don’t really have £10k saved if you have £5,000 of debt.

This bit alone makes me suspect that you need to re-think your attitude to your finances.

Fir one thing, unless you’ve left something important out like a £200,000 salary then I don’t think that you can aspire to get any sort of decent house in any of the nice parts of London.

JackieCollinsExistentialQuestionTime · 07/10/2022 17:28

DO IT!

Bloody hell, all the people saying she shouldn’t - haven’t the last couple of years shown us that the future is guaranteed?

We've lost sight of what matters. If it was that she’d be destitute on the streets, then maybe not wise. But a year of experiences vs a year of saving, it’s a no brainer. There are no guarantees and I’d prefer to ‘spend’ a year living.

Original poster
Peachh · 07/10/2022 17:33

@PrincessButtercupToo I am earning good money and hope to be on £150K or more in the next 3-5 years. I would most definitely would be looking for a flat maybe a maisonette rather than a house. I want a nice house three bedrooms at max, good area I’m not looking to be in a family size home unless married.

OP posts:
Original poster
Peachh · 07/10/2022 17:40

JackieCollinsExistentialQuestionTime · 07/10/2022 17:28

DO IT!

Bloody hell, all the people saying she shouldn’t - haven’t the last couple of years shown us that the future is guaranteed?

We've lost sight of what matters. If it was that she’d be destitute on the streets, then maybe not wise. But a year of experiences vs a year of saving, it’s a no brainer. There are no guarantees and I’d prefer to ‘spend’ a year living.

I love your attitude! I’m obviously quite hesitant with the current economic outlook in the UK hence the post. I feel like I have not experienced anything in life which is probably why I really want to do this. Maybe it is FOMO. Maybe 2 big holidays, 2 city breaks, small road trip in the UK, lots of food, random experiences as DC loves adventures and London days out, loads of clubs for DC, a few weekly hobbies/classes for my self. It doesn’t sound like much but obviously all adds up.

OP posts:
MuckyPlucky · 07/10/2022 17:43

Blimey OP - “it doesn’t sound like much” …is this for real or a wind-up?!

declutteringmymind · 07/10/2022 17:44

Isn't there compromise? Does it have to be all or nothing? Maybe next year pay off your debt AND do some amazing things. You'll enjoy them much better if you are debt free at least. Then after that get saving.

Thegreenballoon · 07/10/2022 17:45

Does it have to be some kind of crazy hedonistic spending spree? Could you spend a bit more but still keep a bit back for paying off debt and savings? Because it takes very little to put you in big financial trouble if you are a lone parent with relatively small and tied up savings, debt and you rent. It’s one thing to be wild if you’re debt free and no dependents but with debt and a child then yeah, I think it’s irresponsible and a bit ridiculous to just “spend like there’s no limit”.

Thegreenballoon · 07/10/2022 17:49

Peachh · 07/10/2022 17:40

I love your attitude! I’m obviously quite hesitant with the current economic outlook in the UK hence the post. I feel like I have not experienced anything in life which is probably why I really want to do this. Maybe it is FOMO. Maybe 2 big holidays, 2 city breaks, small road trip in the UK, lots of food, random experiences as DC loves adventures and London days out, loads of clubs for DC, a few weekly hobbies/classes for my self. It doesn’t sound like much but obviously all adds up.

Show quote history

Apart from anything else I don’t believe for one second that after 365 days you’d revert to being financially sensible, and if you did it would be pretty harsh on your child to have to give it all up. Do something fun but sustainable in the longer term.

Iwouldlikesomecake · 07/10/2022 17:50

Either you already spend an absolute ton anyway or this doesn’t add up. If you’re in line for £150k in 3 years then you can’t be on subsistence wages now…. So why wouldn’t you pay off a 5k debt?? Makes no sense unless you are already spending more than you earn. Can you be sure you won’t just increase your ‘lifestyle expectation’ with the salary increase?

TabithaTittlemouse · 07/10/2022 17:53

Would it not be really hard for you and your son to go back to living more frugally?
Not saying that you shouldn’t (life is for living) but if your heart is set on buying surely it makes sense to buy and then party?

EstellaRijnveld · 07/10/2022 17:54

Get rid of the debt first. Lock your savings into a long term deposit account or premium bonds so you can't spend it on shit.

Then spend what you like but get rid of your debt first because the interest rates are only going to go up further.

www.moneysavingexpert.com/debt-help/

Original poster
Peachh · 07/10/2022 17:56

MuckyPlucky · 07/10/2022 17:43

Blimey OP - “it doesn’t sound like much” …is this for real or a wind-up?!

Sadly I’m being 100% genuine and I don’t think it’s uncommon for a lot of people of my age to have such desires. Some of my work colleagues who are in their 30s 40s, granted they’re either single or childless or married so have two incomes go on holiday multiple times a year. A colleague was telling be about the £5000 holiday last big bang before they try for a baby.

OP posts: