It’s another budget thread…

[Prettypenny9]

I find these threads really helpful! I’m buying a new house and putting together a budget based on figures online, and some of the consumption figures from our current property. It’s difficult because our current house is a tiny old cottage, and the new house is a newer build. The new house is double the size so is likely to cost more in heating. That said, it sometimes feels like someone has left the door open with the drafts wafting through the hallway in the cottage!

I will pop the figures here and would welcome constructive feedback on how you think I could estimate the figures more accurately. I’d also appreciate any words of wisdom or personal opinions on disposable income/ savings etc.

Mortgage £1,550
Council tax £325
Food £575
Dog £175 (insurance £35, food £100, pet plan £25, additional bits like poo bags and treats £15).
Wifi £35
Mobiles £40
Water £60
Subscriptions £30
Oil £300
Electricity £250
Insurance £65
Garden waste £10

Total outgoings £3,415

Take-home pay £5,000

Left over £1,585
£700 - me (I would add £200 to savings and have £500 to spend).
£885 - DH

I have calculated this on the basis that DH has much higher personal bills so even though I’m the higher earner, I don’t spend much!

I have only calculated our household bills and any personal spends (car, hair, dental etc) all need to come from what I call our disposable income (but is probably more accurately our take home minus household bills).

What I couldn’t stomach if that were my bills, is that I’d be spending that much of my take home on a mortgage…there’s not enough left over for anything big.

1. If you need a new car, do you have savings for that?
2. What about a decent overseas holiday?
3. Will you have children? If yes where will the money to clothe them or put them in childcare come from? If no then why spend so much on a 4 bed?

Your budget just doesn’t seem to allow for anything other than living wage to wage. Which I appreciate is often the case for people, it was for me for a long long time. But I didn’t choose to get a 4 bed house and spend 1/3 of my take home on it

I’ve just re read all of it and I don’t get it’s how are you going to have so many holidays abroad, you’ll just deplete your savings with them…I feel like you’re going to tell us you have a trust fund worth millions

10% pension contributions and S&S ISA/LISA.

We don’t have a motor home so don’t need separate insurance. It’s a campervan so we just pay the normal van insurance. The expenses aren’t very high for MOT/ insurance etc so we just pay for those expenses out of our own pots.

Food is fairly low because there are only two of. Fuel is high because of the commute to work.

New house is D and current house is F.

I go abroad all the time now because I have £3.5k left over every month. That would need to change with a larger home and more outgoings.

New house is D and current house is F.

that is a big difference, I would expect heating bills to decrease even taking into account the size of the house.

The Report usually gives the ways to raise from D to C, have you looked to see what the suggestions are listed as? Getting solar may lift it to a C and not only reduce your electric bill, but even on the latest selling back schemes you can get £300 a mile nth during the summer

Your pension contributions sound low if you want to retire at 55

That’s good to know! I hope so.

Yes, there is no floor insulation and the heating system is poor. I think the windows were listed as poor as well so there are ways to boost to energy efficiency of the house.

Pension is excellent and my S&S ISA is maxed. Even if I kept the house and didn’t downsize as planned, I’m on track to be a millionaire.

Got it…so why would you want to give up on a life with plenty of travel for one with a house that is bigger than you need and does not afford you any spare money.

also, how are you going from 3.5k spare each month when you have 5k take home, you have bills on your current property surely, and food? So this is impossible to be the case - you’ve described a drop of 2k but the mortgage is less than that (nevermind the increase itself which is obv significantly less than the mortgage) so how could you be have 2k less. There is something very off here in the numbers, especially the ‘on track to be a millionaire’ it takes you almost 17 years to make that, before you pay any bills.

what am I missing here?

I’ve been replacing my double glazing using a local firm. That way u replace the windows as I want and can afford. Rather than the entire house in one go. Also small local company is cheaper than the other local company and chains. Have a search for independent and get quotes on just a couple of windows - master bedroom and lounge

your pension maybe excellent- but that’s not going to be so if you chop 13 years off, it might be good then - so add more to account for the 13 years you won’t be paying in

We are in our 30s now and want to start a family. We have built up savings and investments, have lived life to the full and it’s time to slow down a little. We also have a dog and plan to keep other animals. This house would give us the opportunity to do what we love to do. We would have space for a home gym so we would save in some ways, and we would also look at ways to make some extra money - there is a big workshop in the new house. I’d also have an office space.

We don’t have a mortgage on our current house so that might be the confusion?

We have a brilliant local firm that we use for windows and doors - not cheap but agree, we can always do a few at a time.

Thats where the stocks and shares ISA comes in! It bridges the gap.