Author Topic: Advice for a UK based aspiring lady mustachian...  (Read 1375 times)

StiffUpperLip

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Advice for a UK based aspiring lady mustachian...
« on: November 13, 2012, 02:36:23 PM »
Hi,

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)

Outgoings (monthly)
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...







Langlefler

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #1 on: April 22, 2015, 03:56:16 AM »
I've enjoyed it so much.

Alan2

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #2 on: April 22, 2015, 12:21:04 PM »
As a fellow Brit those figures seem broadly OK, apart from the food bill.  If it were me I'd look to about half that.
United Kingdom

SpreadsheetMan

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #3 on: April 22, 2015, 01:38:56 PM »
(Right side of the pond here too :-) )

Quick add-up gives 1690pm out leaving 2210pm to save or invest, or 26,520 pa. That's a chunky sum.

How much can you overpay the mortgage per annum?
How much left to pay off?
How long to retirement?
Any (N)ISA savings?

frugledoc

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #4 on: April 22, 2015, 02:03:17 PM »
As a fellow Brit those figures seem broadly OK, apart from the food bill.  If it were me I'd look to about half that.

We're almost double that and do most of our shopping in Aldi.

I think 300/month is really good, assuming you are not eating out/getting take away all the time.





MajorFacepunch

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #5 on: April 23, 2015, 03:53:16 AM »
The general consensus with paying down the mortgage vs investing is that, over the long term you are better investing the money. If you are new to this, the Vanguard Lifestrategy series in the UK is the best bet.

Considerations to think about:

How long your mortgage term is.
Will you ever plan to move?
Your attitude to risk?
Length of time for investments to grow
My Blog - Getting Fired - http://gettingfired.co.uk

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ShoulderThingThatGoesUp

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Re: Advice for a UK based aspiring lady mustachian...
« Reply #6 on: April 23, 2015, 05:36:21 AM »
At 4% variable though, when you're already underwater and want to move, paying it down makes sense. What are your student loan interest rates?