Hi Scott,
My husband and I are in our twenties. We have just gotten our first mortgage and have had a real shock at how much it costs to be adults, and frankly we don’t like it. After living with my parents for three years, and two kids later, we are finding it tough. Our mortgage is just under 60% of our income, so I don’t know how I can get our expenses to under 60%. We both work full time and our kids are in daycare. My husband is an apprentice plumber and I’m in the public service. He tries to get cash work but it’s hard competition out there. I’m just not sure how we can survive considering we got our mortgage only three months ago so refinancing is not really an option. Any tips?
Bindi
Hey Bindi,
Yes, being an adult totally sucks.
And, just when you think it couldn’t get any suckier, you’ll get hit with your council rates, then house and contents insurance, and the hot water service will go to god … all on the same day.
Now I’m assuming you went through the ‘Bank of Mum and Dad’ to help secure the loan, because you wouldn’t have gotten it on your own.
In that case, you serve as the ‘after’ mugshot of what happens when you give kid-ults a hand-out disguised as a help-out.
You’re reaching for the ripcord three months after you got the loan?!
Surely you looked at what your repayments would be before you signed on the dotted line?!
Bindi, I’m reaching for a paper bag because I’m hyperventilating at the moment.
BREATHE, BAREFOOT!
Okay, so my breathing is back under control. Let me put away my paper bag and my passively aggressive double dose of exclamation and question marks and give you some advice.
You’re parents now, so it’s time to behave like responsible adults.
So I want you to call your bank and tell them you’re in hardship. Show them your budget. They’ll likely allow you to switch to interest only on your home loan – which will reduce your repayments – perhaps until your husband finishes his apprenticeship, and he starts earning some decent coin.
Until then, enjoy the baked beans, do your Santa shopping on Gumtree, and sell whatever you can to get at least $2,000 Mojo in the kitty.
You will get through this, and it will make you stronger and wiser.
Promise.
–Scott.