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Cost of living


SO16_Saint

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Was going through the old finances with the mrs last night, as we're going through financial changes atm - pay cut at work, car and other allowances being removed etc etc....

 

Worked out that on a flat month, with no allowances or commission, we would have +£30 ater bills are paid - excluding food and petrol.... and living.

 

A pretty dire state of affairs, really.

 

To live happily - not extravigantly, but an 'ok' living - so not worrying about going into town and buy the little man new clothes etc - we would need around £2k net.

 

Now, I dont think that needing £24,000 net (£31,000 gross) per year is asking too much for a family of 3....am I wrong??

 

Interested to know what other people think, and need to earn to live.

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Between us, my wife and I need to earn more than our children manage to cost us !

 

 

yep - feel the pain!! Since having our little one, we have taken a huge pay drop - as the Mrs was doing well at her job, but we took the decision that we wanted her to be a FT mum.... as long as finances allow.

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Was going through the old finances with the mrs last night, as we're going through financial changes atm - pay cut at work, car and other allowances being removed etc etc....

 

Worked out that on a flat month, with no allowances or commission, we would have +£30 ater bills are paid - excluding food and petrol.... and living.

 

A pretty dire state of affairs, really.

 

To live happily - not extravigantly, but an 'ok' living - so not worrying about going into town and buy the little man new clothes etc - we would need around £2k net.

 

Now, I dont think that needing £24,000 net (£31,000 gross) per year is asking too much for a family of 3....am I wrong??

 

Interested to know what other people think, and need to earn to live.

 

Hard to put an exact figure on it as it depends on mortgage costs etc & where you live.

 

I'm lucky that I've got a big house but it was bought before the boom so my mortgage is only £400 per month so we can afford to overpay it thus paying it off early.

 

Friends of mine seem to have mortgages that are eye wateringly huge & thus there outgoings are massive compared to mine.

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It'd be easy to dismiss the cost of living as a joke, if it didn't cause so much misery.

 

I agree massively.

 

Nothing else worries me as much as finances do.... you can invariably change / affect other things - but money, or not having enough to live, you cant

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I agree massively.

 

Nothing else worries me as much as finances do.... you can invariably change / affect other things - but money, or not having enough to live, you cant

 

It's a load of sh!t, Bridgey.

 

I wouldn't be at all surprised if the cost of living was purposefully set at the level it is to put people into debt.

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People who are old enough to have bought houses before the boom are so lucky... I've just moved, probably for the last time now as I have finally worked my way up to a 3 bed semi, and my new mortgage with rates as low as they are is... £1100 per month!! :(

 

Thats only going to go up when interest rates start creeping back up. I'm gonna be skint for the next 24 years!

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We're in the same boat, really struggling at the moment.The Mrs went back to uni to follow her dream of being a midwife so we only had one wage coming in for the past 3 years. We're just lucky that our mortgage is so cheap, I dread to think what would happen if it wasn't. We've just cut back on nights out ect, she's qualified now, so fingers crossed she get a job on decent money. It'll take a couple of years to repay the credit cards that have helped get us through.

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We're in the same boat, really struggling at the moment.The Mrs went back to uni to follow her dream of being a midwife so we only had one wage coming in for the past 3 years. We're just lucky that our mortgage is so cheap, I dread to think what would happen if it wasn't. We've just cut back on nights out ect, she's qualified now, so fingers crossed she get a job on decent money. It'll take a couple of years to repay the credit cards that have helped get us through.

 

We had similar scenario & once through the other side it's been fine.

 

That said, we always budgeted on just one of us working & only £25k coming in & our mortgage was based on that.

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People who are old enough to have bought houses before the boom are so lucky... I've just moved, probably for the last time now as I have finally worked my way up to a 3 bed semi, and my new mortgage with rates as low as they are is... £1100 per month!! :(

 

Thats only going to go up when interest rates start creeping back up. I'm gonna be skint for the next 24 years!

 

1100 UKP a month for something that in my view, should be yours by right from birth.

 

Mental.

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Finances! Aargh, this morning I've just come back from the Italian tax office: I don't earn enough to be able to afford a commercialista (tax accountant, basically) - so yes, I worry too, even if it's only me. I think many of us have some fat to spare: you only have to look at the posh cars talked about on the motoring forum here (mine's an 11 year old Fabia...), and it takes a brief look at your budget to identify things that are easily cut back on and realise that for the essentials, things aren't too bad. Some people don't have budgets and it's no surprise they get themelves in a mess, plus they have unrealistic expectations of what they can afford. Why do some of the people I know of who seem to replace 3 piece suites (other examples could be quoted..) the most often have the biggest debts? Answers on a postcard...

 

Having kids is something else again, and must increase the worry x10!

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yep - feel the pain!! Since having our little one, we have taken a huge pay drop - as the Mrs was doing well at her job, but we took the decision that we wanted her to be a FT mum.... as long as finances allow.

 

Good for you. I blame a lot of society's problems on the fact that few parents are able to stay at home and raise their kids properly. I took a year's unpaid leave of absence with our first. it was a strain financially, but I've always been glad I did and only wish we'd had the finances to do it again with the second.

 

At least when you have young kids, the cost of going out and socialising becomes irrelevant anyway.

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Finances! Aargh, this morning I've just come back from the Italian tax office: I don't earn enough to be able to afford a commercialista (tax accountant, basically) - so yes, I worry too, even if it's only me. I think many of us have some fat to spare: you only have to look at the posh cars talked about on the motoring forum here (mine's an 11 year old Fabia...), and it takes a brief look at your budget to identify things that are easily cut back on and realise that for the essentials, things aren't too bad. Some people don't have budgets and it's no surprise they get themelves in a mess, plus they have unrealistic expectations of what they can afford. Why do some of the people I know of who seem to replace 3 piece suites (other examples could be quoted..) the most often have the biggest debts? Answers on a postcard...

 

Having kids is something else again, and must increase the worry x10!

 

It definitely doesn't help if you're trying to keep up with the Joneses.

 

Unfortunately, people have developed a mindset where they need material things to be successful, and not by accident - I might add. I'm 37 and I can remember having advertisements drilled into me from a very young age. At one point, actually loved them too.

 

A big problem is that the most common definition of success is how much material wealth you acquire. It's irrelevant, in my opinion - and I say that as someone who earns more than most people. I can honestly say that the thing that has brought me the most happiness in life is seeing my two daughters become the people they are, and being a big part in that process.

 

I'm not going to pretend I've never had a consumerist thought in my life, but I'm long past the point where I care about material wealth. I know people who have the latest sh!t, go on multiple family holidays a year, etc. I also know how much debt some of them are in. Personally, I prefer being able to sleep at night.

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why buy...why in this country do we have a fixation on buying property..

 

Renting is very common on the continent because their rental laws are much tougher than ours. Tenants have more security and, in Germany, rents are controlled.

 

Most people want security. In this country the only way to get it is to buy.

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why buy...why in this country do we have a fixation on buying property..

 

I would never rent. Instead I built a property that was within a price range I new I would be able to pay off without problems in the future. It is security for my family and if sold would pay for itself three times over, so in having it, I know my family will always be okay. I'd hate for my kids to be growing up in a place we didn't own, it'd never really be home.

 

The problem is that a lot of people go heavily into debt to own a property that is really way beyond what they really need and is far further up the ladder than they should have been stepping. It's the whole sense of entitlement that saw people replacing functioning CRT TVs and DVD players with Big flat screen TVs and Blueray players or going on holidays abroad despite not really having the funds for it.

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Renting is very common on the continent because their rental laws are much tougher than ours. Tenants have more security and, in Germany, rents are controlled.

 

Most people want security. In this country the only way to get it is to buy.

is it...security for what..?

either way, if you can't afford it, you are out

 

I really do not get the "you must buy" mentality in this country

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For us buying was a no-brainer, we pay £1150 on the mortgage, and it would cost us £1400 to rent.

 

As we are just about to have kid, I had to re-look at our finances and the income we'd need to live a comfortable life when the baby comes. For us that's £3600 a month for the 9 months maternity the fiancee is taking off.

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I guess....

two years ago, I had 2 flats...just sold my one in plymouth a month ago

 

such bloody hard work...it was an easier life (and cheaper) to rent pretty much

 

Speaking as one who knows .............

 

If I hadn't bought my house, now paid off thankfully, I would really struggle to pay rent out of my tiny fixed pension.

 

However, if there was only property to rent and the rents were controlled, I guess supply and demand would mean that rents would be cheaper for everyone.

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I was in between houses recently so had to rent. I found it more expensive than buying.

interesting...I guess location in the country is major factor.

 

as said above, 2 years ago I had 2 flats, one of which was owned outright between myself and my mum and the other which i lived in down here in plymouth was mortgaged

 

both are now sold and I really am struggling to see it worth while buying again in 2 years where I will be in a position to do so...

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is it...security for what..?

either way, if you can't afford it, you are out

 

I really do not get the "you must buy" mentality in this country

 

Well for a start on the whole it's cheaper to have have a mortgage than paying rent. Secondly as VFTT has mentioned, if like me you have dependants it changes the entire picture in a heart beat.

 

I do worry for the coming generations though and believe that a more german/French way of renting will be very much on the cards for them.

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is it...security for what..?

either way, if you can't afford it, you are out

 

I really do not get the "you must buy" mentality in this country

 

What other way is there?

 

If you don't buy, you're always at the mercy of some landlord. Without much tougher rental laws, buying is the only option but always allow for the fact that mortgage rates can go up.

 

We got married and bought a house in the late 70s when mortgage interest was 15% (although you did get tax relief). There wasn't such gap then between average wages and house prices. That's what's causing the problem today.

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I might also add that we're in the process of selling our big detached home and downsizing to basically cut our mortgage in half cos I'm not convinced we're gonna be out of this mess for a long time yet and I want to cover my ass.

 

All I would say to the OP is hang in there fella and stay positive. It seems like it's something 90% of us go through at some point.

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Have you looked into getting tax credits Bridgey? If you spend a lot on childcare you might be entitled.

 

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

 

we have, yes....

 

the last time we looked we WERE entitled to tax credits etc - but our view (rightly or wrongly) is that it was our decision to a) have the child and b) for the Mrs to stay at home.... so why should we claim benefits.

 

I know some/most wouldn't agree with this way of thinking...

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we have, yes....

 

the last time we looked we WERE entitled to tax credits etc - but our view (rightly or wrongly) is that it was our decision to a) have the child and b) for the Mrs to stay at home.... so why should we claim benefits.

 

I know some/most wouldn't agree with this way of thinking...

 

I understand that attitude and its laudable - but its not claiming a benefit imo - its simply that you temporarily gain from a lower total tax bill whilst your income is reduced and your expenses are higher because you are rasing a child. The state /economy needs a steady flow of kids just as much as the parents.

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we have, yes....

 

the last time we looked we WERE entitled to tax credits etc - but our view (rightly or wrongly) is that it was our decision to a) have the child and b) for the Mrs to stay at home.... so why should we claim benefits.

 

I know some/most wouldn't agree with this way of thinking...

 

Like the attitude but take advantage of it while you need to.

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Yeah was still going strong when I left there in 2007... it's Sean by the way. :)

 

Hello mate! :)

 

Not sure it's really appropriate to pollute this topic with our map-based workplace nostalgia, but I approve of your location - winker indeed :)

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just checked again, and we dont now qualify for anything... £26k+ annual household income is deemed too much to receive benefits.... which it may well be, to be honest?!?

 

Look more closely at the web site re tax credits...

 

I believe you will still be entitled to tax credits at that level of income?

 

But you may have to sell your beloved Ferrari;)

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Buying is definitely cheaper in the long run. We pay £675 per month to rent our small 2 bedroom house in Whiteley. If we had the £25k(ish) I think we need saved up to buy the same house (next door is up for sale at £165k), the mortgage repayments would almost certainly be cheaper. Gotta remember that you won't have to pay the mortgage for the rest of your life as you would when renting.

 

The only stumbling block for us is trying to save that sort of money. I really want to buy within the next 2 years, and still need to find a spare £20k. I could just stay in for the next two years, and work hideous amounts of overtime, but I'd go insane. I couldn't do without my season ticket, an annual holiday and the occasional night out.

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Buying is definitely cheaper in the long run. We pay £675 per month to rent our small 2 bedroom house in Whiteley. If we had the £25k(ish) I think we need saved up to buy the same house (next door is up for sale at £165k), the mortgage repayments would almost certainly be cheaper. Gotta remember that you won't have to pay the mortgage for the rest of your life as you would when renting.

 

The only stumbling block for us is trying to save that sort of money. I really want to buy within the next 2 years, and still need to find a spare £20k. I could just stay in for the next two years, and work hideous amounts of overtime, but I'd go insane. I couldn't do without my season ticket, an annual holiday and the occasional night out.

let me get this straight.

 

a £140k mortgage is less that £675 per month..?

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Over 30 years, yea. £165k is a lot more than I'd look to buy at though. A £150k place would be more affordable than renting here

 

christ....just happening to be having a nose as too may well buy again in 2 years

just had a go on the halifax mortgage calculator thingy

 

a £165k property with a £25k deposit. over 30 years works out at £760+ per month

 

a huge amount of money considering the large deposit too

 

the whole market is an ass

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Yea it's a f*cker. I'd be interested to know the percentage of people under about 27/28 who have managed to buy. Bet it's low.

It's tough if you don't want to move somewhere sh*t.

 

Will move out of Whiteley when I do buy though, it's overpriced and and boring, although pleasant enough.

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I've a big 3 bed/2 bath semi in a decent enough area in a decent enough typical middle England town.

 

My next door neighbours, in a much smaller version of my gaff, pay rent that is 100% more than my mortgage and cannot save for the deposit for a mortgage despite both working in good jobs.

 

My mortgage will be gone in 8 years, their outgoings will be ongoing & they are not happy bunnies.

 

It's a crazy situation.

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