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  • FIRST POST
    • rich81
    • By rich81 10th Oct 16, 7:46 AM
    • 8Posts
    • 6Thanks
    rich81
    How much spare cash?
    • #1
    • 10th Oct 16, 7:46 AM
    How much spare cash? 10th Oct 16 at 7:46 AM
    How much money do you have left after all of your bills and essential spending?
Page 1
    • lazer-zxr
    • By lazer-zxr 10th Oct 16, 8:27 AM
    • 308 Posts
    • 343 Thanks
    lazer-zxr
    • #2
    • 10th Oct 16, 8:27 AM
    • #2
    • 10th Oct 16, 8:27 AM
    So is this before debt repayments? And before putting money away for annual expenses?
    Might be easier to show:
    Income: £4530
    Monthly Expenses: £1820
    Annual Expenses: £219
    Available for Debt payments: £2491
    Spare cash = £0 (as a proper budget should show)
    Last edited by lazer-zxr; 10-10-2016 at 8:29 AM.
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • EssexHebridean
    • By EssexHebridean 10th Oct 16, 9:27 AM
    • 6,373 Posts
    • 35,180 Thanks
    EssexHebridean
    • #3
    • 10th Oct 16, 9:27 AM
    • #3
    • 10th Oct 16, 9:27 AM
    There's no "right" answer to this one you realise? Better to be honest would be for you to elaborate on why you're asking - but there is no point in comparing your situation with others, whose income & outgoings may be completely different. Even "essential" varies from one household to the next - we have no debt repayments so savings, for us, are essential, but if we were still repaying debt, beyond an emergency fund, that would not be the case. I have a mobile phone (iPhone, in fact), on contract, and we have satellite TV at a basic level - again though, if we had debts, neither of these things would be essential...
    MORTGAGE FREE 30/09/2016
    • Ilona
    • By Ilona 10th Oct 16, 9:40 AM
    • 1,540 Posts
    • 5,659 Thanks
    Ilona
    • #4
    • 10th Oct 16, 9:40 AM
    • #4
    • 10th Oct 16, 9:40 AM
    How much? Lots. I don't have many bills and I have very little essential spending. My emergency fund rises month by month.
    Ilona
    I love skip diving
    • MERFE
    • By MERFE 10th Oct 16, 9:50 AM
    • 1,787 Posts
    • 5,783 Thanks
    MERFE
    • #5
    • 10th Oct 16, 9:50 AM
    • #5
    • 10th Oct 16, 9:50 AM
    More than I used to have, not as much as I am going to have in a year or two
    Barclaycard £810/0, Halifax CC £3303/3045, MBNA CC £1976/1735, Total £6089/4780
    debt free by June 2018
    • determined new ms
    • By determined new ms 10th Oct 16, 9:57 AM
    • 5,566 Posts
    • 29,531 Thanks
    determined new ms
    • #6
    • 10th Oct 16, 9:57 AM
    • #6
    • 10th Oct 16, 9:57 AM
    After all expense, money to savings & debt I have £120pm to spend on anything I want. I also usually have a float of about £50 in my account in case of any overspends/unexpected expenses (this month I had the dentist and needed some repairs on my bike) and then put that into savings/towards debt if it hasn't been spent just before payday.

    I have to say though my expenditure is very low I think. I have for the last 4 months embarked on a challenge not to buy anything new for a year and am spending what I consider to be very low spends. This mainly goes on days out/trips/treat with our little one, a couple of pints (me & oh) and a soft drink after a walk at the weekends, any toiletries I want other than basics (which come from joint acc), catching up with friends for either a couple of glasses of wine or a coffee. This month I am going out for a meal with friends for one of their birthday's, going to a spa with another friend and meeting up a few times with friends for a drink so it's been a bit more social & than most months.

    I consider I spend next to nothing on a day to day basis but know that people have a lot less than this (and loads of ppl who have more money and spend a lot more!) I wonder how they do it? The decision not to buy anything new really has made having a low income a lot easier
    Last edited by determined new ms; 10-10-2016 at 10:04 AM.
    Debt to Bank of oh Mum: £4200/£5700
    Wombling 2016 £263.42 Roadkill £27.21
    • Helvetica Van Buren
    • By Helvetica Van Buren 10th Oct 16, 10:04 AM
    • 209 Posts
    • 293 Thanks
    Helvetica Van Buren
    • #7
    • 10th Oct 16, 10:04 AM
    • #7
    • 10th Oct 16, 10:04 AM
    Spare cash = £0 (as a proper budget should show)
    Originally posted by lazer-zxr
    I don't agree with this.
    • -taff
    • By -taff 10th Oct 16, 10:09 AM
    • 6,467 Posts
    • 3,732 Thanks
    -taff
    • #8
    • 10th Oct 16, 10:09 AM
    • #8
    • 10th Oct 16, 10:09 AM
    I expect they mean that all their cash is in a pot from which they can draw, so essentially, there is no spare cash, it's in emergency funds, or going to other spends in their budget.
    • EssexHebridean
    • By EssexHebridean 10th Oct 16, 10:37 AM
    • 6,373 Posts
    • 35,180 Thanks
    EssexHebridean
    • #9
    • 10th Oct 16, 10:37 AM
    • #9
    • 10th Oct 16, 10:37 AM
    I don't agree with this.
    Originally posted by Helvetica Van Buren
    It's usually helpful to explain why you don;t agree, rather than simply making what can come across as rather an inflammatory statement and then walking away.

    In theory the poster who stated that a "proper" budget should show a zero at the end of it is correct - in the business of making every penny work for you, anything that would otherwise come under the heading of "spare" should be deployed to savings, where it will earn interest and build. The exception to this is if you have an interest paying current account, in which case it may be sensible to leave a cushion of savings in there. In theory though that still leaves every penny accounted for. Remember "accounted for" and "Spent" are two different things.
    MORTGAGE FREE 30/09/2016
    • lazer-zxr
    • By lazer-zxr 10th Oct 16, 10:49 AM
    • 308 Posts
    • 343 Thanks
    lazer-zxr
    I don't agree with this.
    Originally posted by Helvetica Van Buren
    Can you please ellaborate.
    All of my money is put to use, 100% of it. Be that monthly expenses, annual expenses, debt repayment or savings. Everything is accounted for, and so zero is left over. A job for every penny.
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • rich81
    • By rich81 10th Oct 16, 11:14 AM
    • 8 Posts
    • 6 Thanks
    rich81
    When I posted this thread I was just trying to gauge the amount of money that people had left over after bills and essential spending. I suppose that I consider any cash that goes into savings as 'spare' as this is money that could be used elsewhere. I am not sure if I was unclear in my initial post or whether people just like to split hairs??
    • lazer-zxr
    • By lazer-zxr 10th Oct 16, 11:32 AM
    • 308 Posts
    • 343 Thanks
    lazer-zxr
    When I posted this thread I was just trying to gauge the amount of money that people had left over after bills and essential spending.
    Originally posted by rich81
    Ok, so after minimum debt repayments and essentials, no savings etc,

    We have spare £2788 / month
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • EssexHebridean
    • By EssexHebridean 10th Oct 16, 12:07 PM
    • 6,373 Posts
    • 35,180 Thanks
    EssexHebridean
    When I posted this thread I was just trying to gauge the amount of money that people had left over after bills and essential spending. I suppose that I consider any cash that goes into savings as 'spare' as this is money that could be used elsewhere. I am not sure if I was unclear in my initial post or whether people just like to split hairs??
    Originally posted by rich81
    A combination of things I would say - you weren't terribly clear on your reasons for asking, and it's not unheard of to get journalists "fishing" for stories on these boards - hence those of us that have been around a few years can be a tad suspicious of those who arrive, ask lots of questions without ever explaining their reasons (applying information to their own circumstances, assisting a family member etc). Hopefully that clarifies?

    In honesty, I'd say that pretty much everyone who replies to this would have a different definition of "spare" according to their own situations. I'm broadly like Lazer in that I don't consider any money to be "spare" as it all gets allocated somewhere.
    MORTGAGE FREE 30/09/2016
    • Helvetica Van Buren
    • By Helvetica Van Buren 10th Oct 16, 1:30 PM
    • 209 Posts
    • 293 Thanks
    Helvetica Van Buren
    Can you please ellaborate.
    All of my money is put to use, 100% of it. Be that monthly expenses, annual expenses, debt repayment or savings. Everything is accounted for, and so zero is left over. A job for every penny.
    Originally posted by lazer-zxr
    I misread your post and submitted my reply before elaborating on what I thought I'd read. Having re-read it I do agree with your allocation.
    • Ashingtonian
    • By Ashingtonian 10th Oct 16, 2:47 PM
    • 115 Posts
    • 87 Thanks
    Ashingtonian
    About £200 a month which I am currently diverting to overpay on the mortgage.
    Current MFD 1st July 2025

    Target MFD 1st April 2023
    • hohum
    • By hohum 10th Oct 16, 6:17 PM
    • 469 Posts
    • 972 Thanks
    hohum
    OP, you might be interested in looking up a book called 'All Your Worth' by Elizabeth Warren, or having a look online. It's American but, probably can be transposed. She works out that ideally you'd look to having 50% of your expenses on needs, 30% wants and 20% savings. It also means looking at what your needs, and wants are! Obviously if you have debts, your 20% savings rate might be debt pay off.

    I haven't set up our budget in that way, but I'd estimate that our 'musts' do indeed take up roughly half our income. We couldn't live on musts only long term, as that would mean ignoring annual bills, maintenance, employment expenses etc etc. But we probably have £1000 a month going into stuff that isn't 'must right now'. Probably the closest to 'spare' is our discretionary fun money: £300 of that £1000, between 2 adults a month.
    • Sanctioned Parts List
    • By Sanctioned Parts List 10th Oct 16, 9:31 PM
    • 294 Posts
    • 764 Thanks
    Sanctioned Parts List
    According to the computer, for any given 12 months, I save roughly 35% of income (split between actual savings and repaying my last remaining debt), although that's without being particularly frugal. I'm pretty sure we can prune that to get a 50% savings rate... and then I'll be able to retire before I'm 50

    • datlex
    • By datlex 10th Oct 16, 11:09 PM
    • 1,060 Posts
    • 911 Thanks
    datlex
    As I am paid weekly, I allow myself £130 a week, after bills (incl loan payment/ bus travel on season ticket) and savings funds. I use the £130 for taxis, food, toiletries, entertainment. (any thing left over at end of week goes to savings).
    • Penguin8410
    • By Penguin8410 12th Oct 16, 5:41 PM
    • 57 Posts
    • 97 Thanks
    Penguin8410
    i have just redone my budget and i have between £85 and £100 a month to myself after everything else has come out
    Car finance: £9312 £1740.51 Nationwide loan: £16176 £3092.78 All other debts £19494.28 £19494.28

    Debt free date aim: September 2019 (reduced by 1 year already!)
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 16, 7:42 PM
    • 2,568 Posts
    • 4,377 Thanks
    enthusiasticsaver
    Not sure how useful this exercise is as surely most people tend to adjust their living expenses to income but ours is as follows. We are coming up to retirement so it will change in the next 6 months to a year.

    £600 on essentials - utilities, food, work travel costs, insurances, broadband,landline and mobiles

    £1000 on discretionary spend - personal spends for OH and me, car/house savings pot, holiday savings pot, gifts pot

    £1500 + to long term saving for early retirement pot. Soon to be abandoned as retirement now approaching and income drops.
    Debt and mortgage free and saving for early retirement
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