Becoming grown ups

[StealingYourWiFi]

I am finishing a university course in a few months and have my job lined up. Me and my partner both live with our parents (late 20s) and are looking to move in together - renting. Our combined income will be around £3700 per month after tax and before overtime.

Where on earth do we start?! We would be looking to move out in the new year so it will give us a few months to get sorted. My partner is recently in a newish job and is currently paying off his debts and will be completely debt free by Christmas, as will I as my debt is fairly minimal. Our credit scores are not fantastic due to missed payments etc but we have been on track for the past 6 months. How long will it take for our credit scores to improve and how else can we improve them?

How do you go about splitting bills between a couple? We would also like to save for a mortgage. Our main expenditures are currently mobile phone bills (£20-£40 each), gym membership, petrol is minimal (my job will be close and he gets milage paid) so just the usual costs of rent, council tax, utilities, food etc. No idea where to start!! Thanks in advance

No idea where to start!! - I'm not really sure what you mean by this, start with what?

Are you looking to get a joint account for bills/food/rent etc? Do you both earn a similar amount as if so, its probably easest to work out what your monthly bills come to, divide it in half and each pay that amount into the joint account. Same with savings. It could get trickier if you earn different amounts and start putting percentages of your salary in.

You can imprve your credit score by paying your credit cards on time and maing sure you don't miss anymore payments. Also make sure you are both registered on the electoral register. Time is the only other thing that will help.

I'm not really sure what you are asking either.
You have a pretty hefty income there for youngsters starting out.
Have a look at what it costs to rent near where you live.
Decide if you want somewhere 'nicer' (ie, more expensive) or if you'd rather have something a bit more basic for now, in order to save a deposit for a mortgage (or if you might live together at either of your parents for a year whilst you save?).
Decide if you are after a room in a shared house, or a whole house to yourselves, or something inbetween. Think about how 'temporary' you see this being. Think about if you are planning to stay in, if you envisage having people round, or if it's more important that you can walk to your socialising / work / hobbies., etc.

Also not sure what you're asking.
Presumably getting to your late 20s and going to uni, at least one of you has rented before? Is it help to understand the renting process that you need?

Splitting bills - there are different ways. The simplest is if you earn the same amount and split 50/50. You can split proportionate to income, but that can leave the higher earner better off.

In a committed long term relationship that both consider to be for life, I favour pooling income, paying bills and allocating savings, then having the same leisure money.

But in a bf/gf who are living together for convenience and aren't sure it's "forever" I wouldn't expect the higher earner to subsidise the other.

Save some money every month. Remember that some bills like insurance don't happen every month, but need to be paid for eventually. Also things like car repairs and holidays. Being a 'grown up' is having money ready for these things when they happen.

Make sure you both start pensions.

Look on the budgeting section of moneysavingexpert to get handle on all your household costs so you can work out how much money you have left for discretionary expenses. Make sure you shop around to get the best price for all boring things like insurance and utilities so you then have more money left for fun things, whatever they may be.

Lots of people spend their 30s getting out of or catching up after getting into a financial mess when they were in their 20s, despite having a relatively large disposable income at that age, if they were working and living with their parents.

Thanks all. Yes unsure about renting place. How do we know much to set aside for utility bills? My partner has never rented, he did not go to university. I am at uni now but commuting although spent some time in nursing accommodation when younger but that was all bills included.

We will have been together 4.5 years when moving out so would like somewhere pretty nice. 2-3 bedroom home with a garden.

We both have pensions and also both have private health insurance through our work.

I think it's mostly the bill splitting to figure out. I will earn 42% of the monthly income but I have the opportunity for overtime so no idea how to split it!

I would split everything 50/50 in that case and assume that your earning potential as a graduate will increase anyway in the next few years. I would definitely day rent together and keep finances as separate as possible for a while if your boyfriend has a few money issues. This sounds harsh but I know a few people who have been saddled with paying back the borrowed money of exs.
Rent a smallish place and each save the extra for the future.

Thank you very much! I feel clueless

That is a very good income really for your ages.

If it was me though I would stay with your parents for a further year and save every penny then try and buy. Depends on where you live of course and house prices.

We live in one of the highest priced areas just outside of London unfortunately. We should have quite a large chunk of inheritance between us in the future and would love to buy but we would need a HUGE deposit, maybe £30-50k.

We are going to have a look at what schemes are best for first time owners. There's a huge new build being built locally to us (ideally we would like to stay in the area, close to an airport and good quick train and road links to London/Cambridge - my partner works in London and from home as well as abroad travel) so we would be interested in moving there. It's estimated for completion in the next couple of years.

In that case buying after a year won't be possible. Both of you can look into opening help to buy ISAs though and the possibility of shared ownership.

We have considered moving but the work simply won't be there and the costs of commuting would outweigh the lower rent prices. Thanks leather

{We} would love to buy but we would need a HUGE deposit, maybe £30-50k

Our combined income will be around £3700 per month after tax and before overtime

If you live on £1700 (which ought to be easily manageable) then you can save £2000 per month which means you'll have saved £24,000 in just one year!
Makes sense to me to live in a shared house or with your parents or whatever for a year and save like billy-oh, then look to buy much sooner, rather than paying rent on some kind of ideal home from the start and not being able to afford to save much for a much longer period.
I realise lots of people rent, but, with your salaries, it has to make sense to keep your renting days to a minimum and start paying your own mortgage rather than someone else's.

Thanks Back! Something to consider definitely.