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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Rate my financial situation

159 replies

Juniperberry55 · 07/07/2025 15:25

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 😂

OP posts:
Nousernamesleftatall · 07/07/2025 15:27

Your equity outweighs your debts so I would say you are doing very well.

HelloGreen · 07/07/2025 15:28

How much is your mortgage every month? Any other big outgoings?

Original poster
Juniperberry55 · 07/07/2025 15:29

HelloGreen · 07/07/2025 15:28

How much is your mortgage every month? Any other big outgoings?

Mortgage is about £500 a month

OP posts:
Poopeepoopee · 07/07/2025 15:29

You just need to work on your emergency fund but obviously pay off debt first.

emergency fund = 6 months expenses.

HollyhockDays · 07/07/2025 15:29

Do you not have any pension?

Original poster
Juniperberry55 · 07/07/2025 15:30

HollyhockDays · 07/07/2025 15:29

Do you not have any pension?

Nope, the plan is to join pension fund once the 14k debt is cleared and I have an emergency fund. So will probably join when I'm 35

OP posts:
minnienono · 07/07/2025 15:31

Average, the debt is a a lot for your income but you have a lot of equity balancing it out.

I hope you have assessed why you have credit card debt and put measures in place so as not to repeat. I would be looking ti start building savings as soon as the loans and credit card debt is repaid

Jellycatspyjamas · 07/07/2025 15:32

Have a look at Dave Ramseys baby steps - £1000 emergency fund, pay off debt except your mortgage then build 3-6 months emergency fund. His stuff is very Americanised but the steps make sense and give you a plan.

Original poster
Juniperberry55 · 07/07/2025 15:32

Poopeepoopee · 07/07/2025 15:29

You just need to work on your emergency fund but obviously pay off debt first.

emergency fund = 6 months expenses.

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

OP posts:
Bobbybobbins · 07/07/2025 15:32

House situation = 10
Debt= 4
Savings and pension= 3

But the last two should be easier to build up than if the house situation was worse.

TeflonMom · 07/07/2025 15:34

You’d be mad to delay starting a pension any longer. Even a small amount starting from now each month would make a difference

Original poster
Juniperberry55 · 07/07/2025 15:34

minnienono · 07/07/2025 15:31

Average, the debt is a a lot for your income but you have a lot of equity balancing it out.

I hope you have assessed why you have credit card debt and put measures in place so as not to repeat. I would be looking ti start building savings as soon as the loans and credit card debt is repaid

Yes, I know how I ended up with the £14k debt, no previous emergency fund, having to buy a cheap car, house repairs. And I haven't spent anymore on it, certainly no day to day expenses going on there, so I won't be adding to it hopefully

OP posts:
notatinydancer · 07/07/2025 15:35

Not too bad. It’s good (imo) you’re on the property ladder.
You need to sort a pension asap ( from experience and 20 years older). I know you say you’ve got plans.
As you say , you need some savings.
Any scope to earn more ?

OneNewLeader · 07/07/2025 15:36

Join the pension fund, clear debt alongside that. Otherwise crack on.

Original poster
Juniperberry55 · 07/07/2025 15:36

TeflonMom · 07/07/2025 15:34

You’d be mad to delay starting a pension any longer. Even a small amount starting from now each month would make a difference

Agreed my lack of pension is rubbish, but I would like to be in a position that if I lost my job, I have no debt and an emergency fund to get me through before I start paying into a pension
Not ideal but money in my pension won't help if I lose my job, that's my theory anyway

OP posts:
Gonk123 · 07/07/2025 15:38

I think if you’re 35 you’re doing great with regards to mortgage. Get that debt paid off - you don’t and shouldn’t be in debt with a good income and a low mortgage. Then build up your saving and you’ll be so pleased with yourself. You could also think about over paying your mortgage. How many years do you have left on it…

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.

Original poster
Juniperberry55 · 07/07/2025 15:40

notatinydancer · 07/07/2025 15:35

Not too bad. It’s good (imo) you’re on the property ladder.
You need to sort a pension asap ( from experience and 20 years older). I know you say you’ve got plans.
As you say , you need some savings.
Any scope to earn more ?

I'm hoping if I can clear debt and build emergency fund by the time I'm 35, then I've got 32/33 years to put as much as I can into my pension. I know it's not going to be as good as someone paying in since their 20s but hoping it won't be too bad
Not any scope to earn more to be honest, knackered from my full time job and an autoimmune disease. I think if I tried to work more than that I'd burn out pretty quick

OP posts:
OnlyFoolsnMothers · 07/07/2025 15:40

i wouldn’t be panicked but I wouldn’t say you’re living the high life- the debt worries me as it indicates that day to day life and things that crop up aren’t manageable. Any hope of increasing your salary?

Overthebow · 07/07/2025 15:43

You’re doing very well with your mortgage and equity, but not at all good with debt, savings and pension. Start your pension now, it’s much better to start earlier even if it’s just small contributions at first.

Original poster
Juniperberry55 · 07/07/2025 15:45

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.

That's basically how I look at it. I know without the emergency fund I could leave myself in a very precarious position if I lost my job so I'm prioritising the emergency fund and being debt free except the mortgage before joining. It'll only be 2 years of missed contributions

OP posts:
LangmaLady · 07/07/2025 15:46

I’m not sure what the average is but I think you are doing OK. I would focus on the following in this order.

1/check what employer pension contributions you can get if you join works pension now and put in as much as you can to start benefiting from that and tax relief .
2/build up emergency fund to 3 months of spending whilst cc is 0%
3/ pay off cc and loan
4/ split monthly savings between building emergency fund to 6months and pension/long term savings. Look for the most tax efficient options.

Original poster
Juniperberry55 · 07/07/2025 15:46

OnlyFoolsnMothers · 07/07/2025 15:40

i wouldn’t be panicked but I wouldn’t say you’re living the high life- the debt worries me as it indicates that day to day life and things that crop up aren’t manageable. Any hope of increasing your salary?

Yes I'm not super panicked but it feels a little risky in my current position. It's basically been big repairs to the house when I haven't had any savings that landed me with the debts, so I'll hopefully not need to add anything to my debts if I get an emergency fund sorted

OP posts:
milkhoarder · 07/07/2025 15:50

Maybe 3 on your scale? Having no pension, no savings/emergency fund and £14K debt sounds really scary, but you do have decent equity in your home so it isn't all bad.

I would feel stressed in your financial situation, but it does sound like you have plans to improve it. What is the interest on your loan? Is it above or below what your money could earn in savings?

If you're earning £42K a year that's approx £2.8K a month? If your mortgage is only £500pcm, where is the rest of your money going? Unless you've missed something major you could likely be saving £1000 a month towards your goals.

GasPanic · 07/07/2025 15:50

You're probably better off waiting until you earn 50k+ or whatever the higher rate tax is at the moment for pension contributions and contributing more then as you will get 40% relief. If you are on 42K now you are only a promotion/couple of pay rises away from that.

A lot of people stuff £stupid into pensions only to never be able to take advantage of it.