Budgeting



NorthCountryBoy said:
But wage increases generally cover that, and one big side of the cost element (mortgage payment) should stay static so theoretically he should get a bit more comfortable over time.
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We’re do you work that wage increases cover the extra that goes on bills and living each year, over that last 10 years I probs average 3% increase each year and I think I’m one of the lucky ones, that 3% does not cover the increase in living in my experience
 
phillips10 said:
Me and the mrs have just bought our first house, we've just sat and worked out how much money we have spare per month after bills, food, car etc... We are looking at having around £600 a month between us to use as disposable income, possibly a little bit more as we have rounded the bills up slightly higher than what we think they could be.

I'm panicking slightly as I don't think £300 a month each is a lot to have left over, especially when you have to factor in having to buy bloody Xmas presents etc... at this time of year.

How much disposable income to you tend to have left over per month?
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Theres about £700 leftover in my account where all the direct debits come out and then all of the missus’s income as we just live on that. Still never feels like enough like :lol:
 
joemcdokes said:
10% £60 a month isn’t going to get you much in terms of kids extras and holidays.

Maybes you can give a break down on how that one works.

Even the odd few days here and there would soak that up no problem, unless they like a good walk not too far away from home and a picnic.
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You've lost me, perhaps I didn't read correctly.

10% being £60 would mean the entire income is £600. If that is the case then yea, you would have to live to those means.
Dave Herbal said:
Once in a blue moon that these days.

The majority of the time, like tonight, I’ll have a bottle of wine in the house, then go out and have about 6 pints of strong ale. Nicely drunk for £30.

Where’s your beer money - part of living expenses?
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Everything that isn't the 30% are living expenses yea.

So beer and days out would be included in that. If there is nothing left of 70% after mortgage and bills, then you cant afford beer etc if you were to follow it to the letter.
joemcdokes said:
It probably does but 30% is a canny wedge to save when starting out.
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Its something to aim towards if not successfully hitting every month or at least it may signify that you're spending beyond means.

We don't hit it every month but then we certainly dont have £300 fritter money either.
 
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myleftfoot1978 said:
We’re do you work that wage increases cover the extra that goes on bills and living each year, over that last 10 years I probs average 3% increase each year and I think I’m one of the lucky ones, that 3% does not cover the increase in living in my experience
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Is RPI over the past ten years really as much as 3%?

My point was that if your mortgage is, say, a third of your outgoings that's a huge portion that isn't subject to RPI once you've bought your property. So your weighted average cost increase is 2% rather than 3% using those round numbers.
 
myleftfoot1978 said:
We’re do you work that wage increases cover the extra that goes on bills and living each year, over that last 10 years I probs average 3% increase each year and I think I’m one of the lucky ones, that 3% does not cover the increase in living in my experience
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Tax allowance has also increased a fair whack over last decade.
I dont think living expenses have gone up that much.
Mortgage rates have come down
Council tax we had about 4 or 5 years of freezes so average increase is still prob under 2.5%
Food hasnt gone up that much
Electrical items are cheaper.
Petrol went down loads then come back up but still lower than its peak price
 

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