This is a bit of a random thread, and I know there is no right or wrong answer, but basically I am now getting to the stage where in the next 18 months - 2 years I will want to buy my own place, but quite simply I wanted to see what people's thoughts were on how much you should realistically be earning after tax each month in order to sensibly pay the mortgage, bills, car and household expenses, without leaving myself dangerously skint and miserable, along with the risk of getting into debt and losing everything.
I know the problems with getting a mortgage at the moment due to the credit crisis, and I know property prices are uncertain, along with the fact that interest rates are only going to go one way over the next few years, and thats up, so rather than talk about the variables I'm going to throw a scenario into the pot...............
I want to borrow £100k over 25 years, and lets assume that the interest rate will be 6% fixed, so monthly payments will be £651.89 a month. Can people give me an idea of what sort of salary that I would need to be earning (as a single person) to pay this back, along with other bills such as elect, gas, water, council tax, tv license, food, phone bill, internet, home insurance, car insurance etc etc as well as running a sensibly priced (i.e. cheap to run / maintain) car such as a corsa or focus or similar?
Also I will obviously need some sort of personal allowance, otherwise I will be a miserable hermit, but i'm by no means expecting to have like £500 a month to spend on myself. Realistically I would prefer an allowance of around £200 a month, which would include things such as going out generally, clothes, birthday / xmas presents for family, gym etc, i.e. not solely for eating out and boozing down the local, but at the end of the day I can afford what I can afford and sacrifices will be made where necessary.
Hopefully some of you guys can advise on some realistic budgets based on your own experiences.
Thanks in advance for any feedback x x