Feel like I can't complain about my financial situation but feel fed up

[Dandelion193]

I just find it all so monotonous. I'm not in dire straits financially but just feel fed up. I earn about £40k live on my own, no children to support.

But I have about £16k of debt from various things, car(not a new one), bathroom (needed to be redone it was old and leaking) new boiler (old one was dangerous) some stuff less urgent, replacing old carpets, redecorating etc that could've waited and I did as much as I could myself but the state of the house was getting me down. I should pay off my debt in about 2 years and should finish paying off the mortgage in around 10 years. Maybe a bit earlier if I overpayment once I've paid off the other debts
The last few years I've been going on holiday once a year spending about £700/£800 a year, which I know I could have skipped and paid more on my debt but in reality it would only knock an extra month off the debt

I don't feel like I live extravagantly, I don't pay into a pension at the moment which isn't great as I know I should really. I probably go out for a fairly cheap meal once or twice a month and if I paid into my pension that would have to stop
I know there are people really struggling and I can afford my bills, pay for food etc.

I just feel like I have no ability to save and feel pretty vulnerable if I lost my job, I have no savings cushion. If anything expensive breaks, I'll need to get out more debt.

I feel like alot of people would feel very lucky in my situation that I'm able to support myself financially but I just feel like living pay check to pay check for at least the next 2 years is pretty depressing

@Dandelion193 can you not add the debt onto the mortgage and extend the mortgage term a few years? Give you breathing space now but just pay for a bit longer, assuming you’re not near retirement?

But that would be a stupid idea because she'd give up her low rate mortgage and 0% credit cards and pay interest for 10 or more years instead of 2.

Plus increase the chance of struggling with a bigger mortgage if she loses her income for any reason.

I think you are doing really well OP to be mid 30s, with a renovated 3 bedroom house that you’ll own clear of mortgage in 10 years :)

The overwhelming sense I get from your post is one of anxiety and most suggestions here have prompted an anxious negative reaction from you . I too would be anxious and worried about no pension and savings .

The best advice I’ve seen here is : leverage your asset- your debt position is because of your property so make it work it baby !

i absolutely understand your anxiety re a lodger and WFH with confidential information , can’t work in a train too .

But , I would still plough on with an advert - you don’t have to take anyone if you don’t like them and it gives you an idea of what the market or options are in your town/city.definitely say in the advert that room not suitable for wfh so you ensure you get someone out of the home during working hours .

I also suggest joining your pension immediately and working out what is left over afterwards. it’s around 5% average and reduces your tax , so ask hr or payroll what your take home would be . Your future self will thank you - as you are now thanking your past self for buying a house !

One of the online savings accounts moves your lose change into a savings pot each day -,could it be Plum or Monzo ? And then you have the beginning of an emergency fund.

I would actually redo your financial plan and throw £10- £50 into an instant access savings account,and then budget around the remaining monies , even if it means taking an extra couple of months to repay the debt. monzo have savings pots so you can name them eg car , Xmas, holiday . Even if you have 10p left in your bank account at the end of each month move this into savings or against one of your cards .

I think having some element of buffer in a savings account will make you feel less financially vulnerable and give you some moral support as you plough on with debt repayment.

i absolutely agree with having treat monies they are essential as frankly life is too short to be entirely trapped by your asset .

Good luck and be kind to yourself in the present while planning for your future self too :)

My biggest question in all of this is why can’t you increase your income? If it’s because the job you are in doesn’t have opportunities for progression can you undertake some further training / move sideways/ to a bigger organisation with more opportunities etc? It sounds like increasing your income would be far preferable for you than having a lodger and respectfully, you’re either going to have to do something or accept the situation as is. I know it’s tough carrying everything on one income -
I do too - but I made the choice many years ago that I was going to actively pursue an income that equated to two to take some of that worry off. Really hard work but far better than having someone else living in my space.

If you take a second job paying less than £12,570 pa, you will pay tax on it but you won't pay NI or student loan because of the way the system works. The second wage isn't added to the first wage for NI or student loan calculations. So even one shift in a bar at the weekend will make a bit of a difference.

Living by yourself is a lot more expensive than living as a couple and if you'll have paid off your mortgage by your mid 40s you are actually doing really well.

It worries me you're not paying anything into a pension though. Please tell me you haven't opted out of your workplace pension?

Get a lodger in. You can earn up to £7.5K tax free each year and might make a friend.

Of course it's ok to complain, the cost of living crisis sucks. It's depressing despite politicians acting as if it's over because now the Tories have gone. And yes it is worse in other countries but we don't live there so can only complain about here! I feel every few months, I have to rebalance my budget or give up another treat. I don't want to work a second or third job or find a side hustle and sleep less. I think we've got into almost a competitive race to the bottom rather than asking who ate all the cakes and has the keys to the bakeries? It's he super rich/tech bros/banks and until we can redistribute some of this concentrated wealth it's going to get worse. 😔Not for me though as I'm going to win the lottery any day now..........

WTF 🤣

I imagine you’re feeling a bit vulnerable as you’ve no spare cash for emergencies etc. I would make savings wherever you can do so without affecting your current quality of life and overpay your debt to bring it down to nearer18 months rather than 2 years.
Once you have a chance then remember to save some money for emergencies. Once your mortgage is paid you’ll be in such a great position.

I think something is going wrong with you tbh. I don’t see how a family of 4 can do
all that with £1800 per month.

Guess this is one of those threads where OP doesn’t like the replies, so pisses off.

That's good to know, I didn't realise you don't pay student loan or ni on a second job, I assumed like tax it was based on your overall income. That makes a second job much more appealing
I have opted out of the pension as I just can't afford it, I will be opting back in once the debt is cleared. If I paid into the pension at the moment I would be pushing myself further into debt. It's not ideal.

Nope, just had a busy weekend and been working today, so having been prioritising replying to posts on Mumsnet. Is there anything specific you wanted me to reply to?
You said I was being disingenuous over my debt, but not said exactly what you think I may be lying about?

I have stated my reservations around lodgers, it doesn't appeal for many reasons and even if I just look at it as a purely financial choice, I would need to spend money on furnishing the bedroom, extra council tax, increased in bills, potential damage, probably increased house insurance, risk tenant not potentially paying and sucking up the extra costs while I try to kick them out. It is not my first choice. I don't know how many more replies you want from me regarding why I don't want to jump straight to inviting a stranger to living in my house 🤷

I would also be impressed if they have genuinely managed that with only one income at minimum wage. If they have, then well done to them.

I would rather be skint and comfortable in my own home than have to put up with living with strangers for extra cash.

The thing with opting out of your pension is that you're missing out on free money from your employer and the govt. The very minimum allowed is where you contribute 5%, but that actually only costs you 4% because the govt reimburses the tax element. And then your employer contributes 3% as well. (In some schemes the employer pays more.) So by you opting out, you're saving yourself 4% but you're actually losing 8% from your pension. You're also losing out on a certain number of years invested (i.e. growth potential) which you'll never get back.

If you really can't afford to opt back in, make sure you do so immediately that the loan is paid off. It'll be so easy to forget or to think that you'll do it once you've paid for something else. That happened to a friend of mine and now, 20 years later, she's really kicking herself.

To be honest once the debt is cleared I think I'll feel pretty comfortable, I'll be able to pay into pension, save and maybe overpay the mortgage a little. It's just the next couple of years ahead that feels like a long slog and a bit joyless

I really can't afford to opt in at the moment, but once the debt is cleared I will be opting in, I think they re-enrol you onto the pension every 3 years anyway, so I wouldn't actively opt out again once the debt is cleared. I know pensions are worth it, but I don't want to be taking out anymore debt because I couldn't afford to pay essential bills if I was paying into the pension if you know what I mean