Looking for some general advice, situation is as follows:
We're a couple with a 5 month old, living in the UK. We live close to Mr's work, walking distance, but 40mins drive from my work - in a job which brings in the lions share of the money but cannot be relocated. We'd maybe move closer to work if our mortgage weren't underwater... I currently pool driving with a colleague who works in the same dept which works out better value than taking the train (my only public transport option). Really want to maximise our savings and become much more financially stable in light of our new parental status - we need to be 'grown-ups' now...
Income (Mr + Mrs) = £3900 net per month ( I won't give gross due to UK tax/National Insurance deductions which are very different to the US system plus there're student loan payments deducted directly which I have no contol over)
Mortgage = £670
Council Tax = £100
Gas, Electric & Water = £89
Mobile Phones = £40
Sky (TV, broadband and landline telephone) = 41
Life & Critical Illness insurance = £35
House Insurance = £30
Car Insurance = £35
Petrol = £50
Food = £300
Misc spends = £300
We're starting out with £4k in the bank earning 3% at the moment (best I could get cash savings rate wise...). Initially my question is whether all of the spare disposable every month should be going to pay down the mortgage (~£8k underwater, on a 3.99% variable rate) or whether this money (or some of it at least) is better off in investments?
Any advice on where we could do better at not-buying-stuff also welcome...
Thanks in advance from across the pond...