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A Case Study: Annual Income vs Expenditure

The final figure in each column shows the amount that each couple have available each year to cover the mortgage and the higher costs of running a larger property.  The fist couple have demonstrated that they clearly can afford the property – moreso that the second couple, despite the idntial income.

This demonstrates the importance of considering what you are able to afford rather than just working on the issue f multiples of income

 

[table caption=”Tabulated example of Annual Income vs Expenditure” width=”625″ colwidth=”20|100|50″ colalign=”left|center|center|center|left”]

Item,Couple with car and no children,Couple with two children
Income
Salary 1,£20000,£20000
Salary 2,10000,£1000
Total,£30000,£30000

Deductions,,

Food and Drink,£3640,£6240

Clothes,£800,£1000

Household expenses,£1440,£1600

Scool expenses,None,£750

Car loan,None,£2000

Fuel,None,£1200

Entertainment/holidays,£5000,£1500

Subscriptions,£150,None

Standing orders and direct debits,£100,£150

Insurances,£300,None

Water rates,£500,£500

Council tax,£1200,£1000

Loan and hire purchase repayments,None,£600

TOTAL DEDUCTIONS,£13130,£16440

INCOME MINUS DEDUCTIONS,£7870,£4560

 

[/table]

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