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    • TheRoders
    • By TheRoders 16th Mar 17, 1:09 PM
    • 135Posts
    • 142Thanks
    TheRoders
    Disposable Income When Paying Off Debt
    • #1
    • 16th Mar 17, 1:09 PM
    Disposable Income When Paying Off Debt 16th Mar 17 at 1:09 PM
    Hi All

    I haven't posted in a long time and trying to realistically sort my financial situation out currently.

    I was just wondering if you allow yourself any kind of disposable income (if at all possible) whilst you are paying off your debts? Just for that cheeky takeaway, pint of milk if you run out unexpectedly etc? Or does every last penny get accounted for every month?

    I'm just setting up my spreadsheet to see exactly where our money goes and a big chunk seems to disappear each month which is unaccounted for!
Page 2
    • determined new ms
    • By determined new ms 17th Mar 17, 7:09 AM
    • 6,572 Posts
    • 37,890 Thanks
    determined new ms
    I have a low income and no debts and allow myself £120 a month for spending money. This is everything after all expenses are paid. I find this a really low amount even though I don't spend very much (I think). Allows for going out drinks a few times a month or a meal with friends, hobbies, coffee while out, ice cream with the nipper, clothes, anything I want to spend it on. I allowed myself a similar amount while debt busting but had a considerably higher income then (I earn about a 1/4 of what I earned a few years ago!).

    Takeaways - everyone is different but I always feel disappointed after a takeaway what we get for the outlay just doesn't seem worth it and if you can cook well then what you get just doesn't compare with what you can cook in terms of price. I try to allow for 1 nicer meal a week. So will this week we are making sushi. Costs about a tenner for all the ingredients for a banquet. I know I can get a takeaway in my area for sushi for about £20 and there would be a lot less. Similarly curries are easy to make. I have a Madhur Jaffry cook book and haven't been disappointed once with the recipes. I'll grab in some pilau rice from the SM and a couple of naan breads and we have a curry for less than a tenner. There's a great recipe book called "The take away secret" again haven't been disappointed.

    So when we do inevitably reach for a takeaway I always feel I can do better for a fraction of the cost
    DF as at 30/12/16
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    • TheRoders
    • By TheRoders 17th Mar 17, 9:43 AM
    • 135 Posts
    • 142 Thanks
    TheRoders
    I have factored into my budget every single penny that goes out of the account every month and the £1200 is what is left... Everything is allocated.
    • loey93
    • By loey93 17th Mar 17, 11:06 AM
    • 38 Posts
    • 21 Thanks
    loey93
    Yes I allow myself £100.00 a week but this doesn't mean I necessarily spend £100.00 a week, if I have money left over that particular week I put it straight into my sealed savings pot. I am looking at reducing my "fun" money but this works for me rather than restricting myself. Spending does seem to add up.. I.e a meal once or twice a month can set me back £80.00 when you factor in drinks and taxi! then there's clothing, additional fuel, makeup etc..
    Aiming to pay debts & save!
    • nkkingston
    • By nkkingston 17th Mar 17, 11:35 AM
    • 442 Posts
    • 498 Thanks
    nkkingston
    I built in take aways, the odd beer, weekends away. Also managed to treat myself when I paid off a card by using the next "payment" I would have made to that card on something I really wanted.
    Originally posted by indesisiv
    I think this is a really good idea to prevent you getting demotivated!
    Mortgage
    June 2016: £93,295
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    • Ben75
    • By Ben75 17th Mar 17, 12:41 PM
    • 46 Posts
    • 44 Thanks
    Ben75
    I would say the key is to budget your money and stay on top of what you are spending it on, and make allowance for adjustments where necessary. I've been using YNAB and its transformed they way I manage my money. Look up the principles behind it, and use that as a starting point for thinking about how much you allocate to debt repayments / luxuries etc. Good luck with the journey, it feels good to take control
    • Bumblebear
    • By Bumblebear 17th Mar 17, 2:28 PM
    • 98 Posts
    • 449 Thanks
    Bumblebear
    I'm somewhat inclined to agree with moneyfacts here. It's probably just a wording choice, but if the money is there for specific things that you enjoy, when, let's face it, repaying debt is not enjoyable, then I think that is different from simply "needing" to have spending money to spend.


    I now use EssexHebridian's idea of I have money put aside that is "unallocated" as it were, then if I don't spend it all it either goes as an extra payment to the credit card (or now into my small savings pot now I'm only two payments away from clearing my debt). I had been feeling too restricted when I only allowed bill and very basic food money. I wasn't worried about the fact that I had nothing, more a low level of anxiety about "what if something happens and I don't have the money to deal with it" (like a "small" vets bill), or even "what if I find a really good bargain that would save me money in the long run but I can't afford to take advantage of it" (bulk buy/heavily discounted offers). I don't have that problem now, and funnily enough it's made me more tight with what I do have!


    I spend what I considering a reasonable amount on two constructive hobbies each month (I repay £500 per month on my credit card, I spend £50-£60 on sport/training/working out and sewing) . My personal experience is that my two 'constructive hobbies' actually take away some of the opportunity to spend, because I'm spending my free time concentrating on them. I think it counts as investing to save
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