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

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.

Plus you never know what's around the corner.

Do you have wills, life assurance and good critical illness cover?

You also need to have a buffer for potential issues with new house - not necessarily early on but all homes eventually need new roofs etc plus there's when govt brings in new regs - eg there's a lot of owners getting stung at the moment for the cost of removing cladding in the wake of grenfell (personally I think the developers who put the cladding on should be paying)

And yes your energy and water bills will likely increase with a larger property

Is your energy bill really that small?

Do you really spend more eating out than you do on your entire food bill?

You mention animal insurance, but not pet food, grooming, etc.

What is "shopping" if you both then have £500 each to spend per month?

And you've not said what money you'll actually have left after these expenses.

So much of what you're spending seems like luxuries.

There's so much slack in that budget that it's incomprehensible to most people that you think it couldn't be enough. How much do you spend now if you're worried about sticking to that budget?

You'd be insane to consider not moving because you'd have to restrict your spending to a level that is beyond the wildest dreams of just about everyone.

You've about £3k of discretionary spends or savings available above your basic expenses. Most people don't even have that to cover everything.

But if you have a campervan it needs insurance, maintenance, fuel, mot, and tax if it's not exempt. Do you park it on your own property or do you need to pay to park/store it somewhere?

we have no money worries and spend without ever thinking about the money.

You can't beat this feeling in my opinion, it's why we bought below our means.

I don’t think the higher mortgage should be a concern. But I do think you should see and independent financial advisor.

What you have here is people picking over your discretionary spend. What you need is someone to advise on your savings levels, investments, pensions and insurances.

Thanks all. It’s been incredibly insightful. I think last night I came to the same realisation @Ideasplease322 we need to speak to an independent financial advisor. Thanks again

Thanks OP, it’s been an interesting thread for me as we have similar income levels and I started a thread tho week about personal spend amounts. We currently have 500 each too but DH feels it’s not enough.

How is your savings cushion? I think that would affect how likely I was to make this move

Cash savings are far too high imo. We’re far to liquid. We’ve been maxing out our stocks and shares isa and I found a stock broker to help with our share etc. We also have equity in companies we work with. One of us is on a earn out. It’s all quite messy and complicated.

You spend £600 a month on eating out?

@southeastlady

You spend £600 a month on eating out?

People have different lifestyles.

A meal for two plus wine etc at a high end restaurant once a week plus a family meal at a mid level restaurant once a week could easily come to £600.

That’s surely okay if op can afford it??