Budget- Does it make sense

[newuserolduser]

Hi all,

We're moving house and taking on a much bigger mortgage. I am worried, we have no money worries and spend without ever thinking about the money. It will be a change to have to stick to a budget.
Does the below look realistic?

The offer we received on our place is better than expected, so that mortgage is the worst case and at the top end of what we're looking at. We are speaking to our advisor Monday to do the specific sums.

I love our flat, its in the most brilliant location, but we've outgrown it.

Does this look ok? Are we crazy? Have I forgotten anything?
We need to decide this weekend if we take the offer.

Expenses

Other 100
Food Budget 550
TV Licensing 13.2
Holiday 500
Shopping 250
Eating Out 600
Transport 100
Internet 20
Thames Water 29.45
Octopus Energy 48.09
spotify 15
Savings 650
School Fees 1000
Entertainment 200
Disney Plus 5.99
my Spend 500
his Spend 500
stock investment 100
animal insurance 4.48
his maintenace 1635
life insurance 13.54
DD Savings 250
Mortage 4134
University fees 25

I think you are right in the statement that you are far too liquid. Can I be harsh...? Time to grow up! (Said with kindness)

House repairs, gardening etc?

School fees usually increase 5% a year plus all the extras. £1K a month seems cheap.

No cars? No cleaners/gardners or similar? Childcare for 3yo? 500 a month seems light for holidays for 5 out of term time.

@wedswench our mortgage is half of what it is now... we are way to liquid!

Have you done any calcareous around the interest rate going up 0.5/1/2%?

If you are moving away from your “brilliant location”, will you have more travel costs?

[quote newuserolduser]@wedswench our mortgage is half of what it is now... we are way to liquid![/quote]
Yeah so I get that it feels scary. You might have to adjust your lifestyle a little.

@Lightsabre There is a separate saving account for all kids school fees...
@Gazelda yes to house repairs, no to gardener (it will be very small!) @Vetyveriohohoh you're right about cars. Its bought outright but still needs MOT etc.
My biggest fear is that holidays will be light if I'm honest!

*calcareous = calculations!

The holidays may take a hit but you'll have a garden. That will massively improve your well being

@BikeRunSki we cycle everywhere!
We should do worst case scenario planning. good idea

FWIW we budget around 10k a year for 2 weeks big hol plus a decent city/UK break.

[quote newuserolduser]@BikeRunSki we cycle everywhere!
We should do worst case scenario planning. good idea[/quote]
That's a really good idea. You know like when you make a business plan. Best case, worse case, likely.

Pension

@BikeRunSki pay pension straight off salary before tax at around 15%. Hopefully its enough!

(It never enough....)

No it's never enough but a house is a sort of pension

[quote newuserolduser]@Lightsabre There is a separate saving account for all kids school fees...
@Gazelda yes to house repairs, no to gardener (it will be very small!) @Vetyveriohohoh you're right about cars. Its bought outright but still needs MOT etc.
My biggest fear is that holidays will be light if I'm honest![/quote]
I meant gardening. Not gardener.
Won't you want to buy a mower? Rose bushes cost 30 each. Compost, mulch, bedding plants, pots, bench, swing etc.

What about furnishings for the bigger place?

Why don't you go through the last years bank statement to see what you've spent and then add on a percentage to allow for bigger premises, uniform, wear abs tear etc.

For starters "other" is more than a bit vague!!

How many people is this covering? Just you and partner or any dc?

Roughly where you live - living costs vary greatly across the Uk.

There seem to be dc based on "school fees"

You also don't seem to segregate budget items by "need" v "want" which is an odd approach to my mind.

From what I can see and based on my own budget which is based on the following list -

TOP PRIORITY

Rent (mortgage in your case)

Council tax - these always have to be the priority payments
Debt - inc car payments, credit card expenditure as you need to keep on top of this in order to avoid high interest or late fees
Energy (gas/electric)

OTHER ESSENTIALS

Contents ins
Wifi
Phone & phone ins
Groceries (not just food but toiletries, cleaning products etc)
Clothes and shoes
Household items/home maintenance (everything from light bulbs to new furniture)

PERSONAL CHOICE/LUXURIES

Which? Membership
Streaming services
Birthdays and Christmas (I save through the year for Xmas)
Personal expenditure

WHAT YOU SEEM TO HAVE FORGOTTEN IS :

Council tax - as mentioned
Childcare - for 3 yo
Clothes and shoes - is that "shopping"? If so does this include school uniform, gym kit and equipment?
Toys and equipment - for 3yo as their needs change so quickly at this stage
Haircuts - I cut my own but most don't and it's an often forgotten budgetary item
Transport - not sure if you forgot car stuff or if you meant you don't have a car
Medical - first aid, cold n flu bits, opticians, dentist etc

My rent is about 25% of my income

£6000 a year on holidays seems a lot to me but then it's been a while for me

You seem to have a very vague approach to finances generally. I think you'd benefit from creating a proper Statement of affairs listing at the top the essential costs and at the bottom expendable luxuries.

I think perhaps you'd also benefit from considering wastage too.

Yes you're fortunate to be comfortably off but you never know what's around the corner, plus it's silly to spend more unnecessarily if you can still get the same product/service for less.

Have you both got employment protection?

@Gazelda no- it will be tiny. We would probably just cover it in fake grass. It would literally take a table and chairs. Depressing but true.
furnishing yup.
I'll look at last year and see where our money goes!

Buildings and contents insurance
Cleaner

I think @Graphista is right. It would help enormously to do a full analysis of your finances.

You say you'll astroturf the garden. It'll fit a table and chairs. But these cost. You haven't budgeted for them. I know it's only a very small outgoing and a one-off expense, but it demonstrates how you don't have a firm grip on your finances.

If your mortgage of £4K+ is 35% of your take home, this implies you're taking home £140k+ pa. so you don't have real money worries. But it never hurts to do a review of your expenses when you're about to make a life change, such as buying a property.

£600 on eating out vs £200 on entertainment? Does that include days out for the kids?

We love a good meal including Michelin star, but even we would struggle to hit £600 every month!

@RosieGuacamosie weirdly kiddies don't like paid 'days out'. At the moment we do huge 40k cycles as a family (well, I take the toddler) and have a picnic. That is their ideal day. Its bloody tiring. But all the kids like food. Thats general 3x £200 meal for us 5!

[quote newuserolduser]@RosieGuacamosie weirdly kiddies don't like paid 'days out'. At the moment we do huge 40k cycles as a family (well, I take the toddler) and have a picnic. That is their ideal day. Its bloody tiring. But all the kids like food. Thats general 3x £200 meal for us 5![/quote]
How does a picnic cost £200?