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Original poster

Will we be ok for money?

11 replies

Orangeflower7 · 08/03/2011 21:58

Hello, sorry this probably sounds a bit pathetic but dp is in a fluster about money but won't talk about it arghh!

He is worried as is on a temporary contract and I need to know if we would have enough to manage on if he couldn't get more work and what we would need to get by...

He has a mortgage which is interest only with an endowment(?). It was for £75,000 which is the price of the property over ten years ago. He earns 30,000 per year and me 5,000.

We get a little bit from tax credits not much and the usual child benefit of 138 per month approx..

I know because of his mutterings that council tax is high here bills etc (yes I know same for everyone)

I have not much experience with money stuff and just wondered as it is worrying me..for example he is stressing about our food bill, which is not a lot I keep making stuff very cheaply...does our situation look bad?

I know the property was recently valued at about 300,000 surely this should be re-assuring? Or not?

OP posts:
NonnoMum · 08/03/2011 22:00

How much are you outgoings compared to your income?

DillyDaydreaming · 08/03/2011 22:03

If he loses the contract then certainly at present the mortgage interest would be covered (although I seem to recall that this could be ending - not sure). Your tax credits would increase if there was just your income and he'd also get JSA (I warn you it isn't much but you may get more than we did as your income is under 10k). Council Tax benefit would cover that expense.

Food - well you can eat quite cheaply if you don't eat meat every day - we certainly don't as it's so expensive.

But..... you should survive - we did but it was hard. And petrol was not as high etc.

Isx it looking likely his contract will go?

LemonDifficult · 08/03/2011 22:04

Do you have savings? If not then without an income, you don't really have 'money' you have 'house' which isn't the same thing even if people tell you it is.

However, the situation doesn't look bleak but will all come down to whether you can reduce your outgoings into your income + benefits.

Hassled · 08/03/2011 22:05

A 75K mortgage on a £35K income is fine. Not fine if you're unemployed obviously - what you need to know is whether the mortgage company woudl allow a payment holiday for a couple of months to give you some breathing space should the contract not be renewed.

You need a list of all of your outgoings, and then work out what benefits you'd get if he was unemployed. Your DP not wanting to talk about it is tough, really - you're a partnership, and you have the right to know what's going on.

Original poster
Orangeflower7 · 08/03/2011 22:15

Outgoings- ok not much really, we don't have a car to pay off or anything like that, on hire purchase (just car tax) nothing much of value...just general food, heating etc. Think he mentioned 'it costs £1,200 per month to run' (meaning all the mortgage bills etc before food). So, if he gets £2,500 per month (gross) well that is okay isn't it (at present)...

OP posts:
LemonDifficult · 08/03/2011 22:20

Probably the best thing to do is to sit down together and get on top of it all. Know inside out what you are spending on and then you can look hard at where you need to spend and where you can make some savings.

I think just by knowing a bit more about this you'll be able to help your DP by discussing it.

Hassled · 08/03/2011 22:21

Yes, that's fine.

But you need to know this stuff. You need to insist on access to bank statements and from that you can easily put figures into something like Excel - total up all food bills, all clothing, all energy etc etc. Or do it on a bit of paper - it doesn't matter. It might be that he's fretting about nothing and you can afford to stash £100 a month or whatever away for emergencies - unless you do the sums, you'll never know. He needs to share the information.

Original poster
Orangeflower7 · 08/03/2011 22:52

Hi thanks for the advice... you are right of course. Problem is if I mention it he gets a bit defensive. I think it is due to stress and the pressure of being the main breadwiner. It comes across a bit as me criticising...Anyway we need to tackle it like that i guess but in the meantime me fretting is not helping any.

OP posts:
LemonDifficult · 08/03/2011 22:54

Can you suggest it as a solution?

'I was wondering if I could tighten the spending up a bit and maybe do some saving. Would it be OK if I go through all the bills?'

Original poster
Orangeflower7 · 08/03/2011 23:13

Hmm...thanks for the idea, I'll have a think.

OP posts:
Chil1234 · 09/03/2011 10:15

Definitely find a way to sit down and talk about family finances together. It's impossible to know what to do and it is also very stressful if you're in the dark. Mature adults in a loving relationship should be able to have a dialogue without anyone getting defensive.

  1. Make a list of all your income from whatever sources. Understand fully how much you have coming in.
  1. Make a list of all your outgoings such as bills, grocery shopping, petrol, insurance, mortgage payments, regular savings, etc.
  1. Assign each outgoing a category of 'essential' or 'not essential'.
  1. See if you can reduce the cost of the essential outgoings.... eg. comparison sites to get a better deal on utilities or insurance, moving the mortgage to a different lender, taking advantage of tax-free savings like Cash ISAs
  1. See if you can dispense with 'not essential' outgoings... magazine subscriptions, nights out, holidays, satellite TV etc.
  1. See if there are any ways to increase your income. Changing jobs, selling unwanted posessions, claiming all benefits available.
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