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    • liz3chickens
    • By liz3chickens 30th Aug 17, 10:12 AM
    • 11Posts
    • 93Thanks
    liz3chickens
    'Spending Money' in retirement
    • #1
    • 30th Aug 17, 10:12 AM
    'Spending Money' in retirement 30th Aug 17 at 10:12 AM
    My husband retired in June at 70, I retired a couple of years ago with two small pensions but no SP until 2019. We have savings but our income is less than half pre retirement.
    All household bills, food, petrol, savings for expenses etc are paid from our current account and we agreed (or so I thought ) that we would draw out £100 each in cash every four weeks for personal spending money - newspapers, coffee, drinks etc.
    For the third month running my husband has spent all his money after two weeks and has drawn out more. At this rate we will be dipping into our savings to cover household expenses every month. Our last discussion about finances ended in a row.
    Does anyone have advice on how to resolve this?
    Grocery Challenge 2017
    Jan £203/£200
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Page 3
    • Pollycat
    • By Pollycat 3rd Sep 17, 4:09 PM
    • 18,319 Posts
    • 46,895 Thanks
    Pollycat
    My original question was about spending money and I think we have resolved that but it has been interesting to read what others think is a reasonable amount to spend every week.
    Originally posted by liz3chickens
    When you say 'resolved' do you mean your OH is going to stick to his spending budget from now on?
    • maman
    • By maman 3rd Sep 17, 4:52 PM
    • 16,985 Posts
    • 101,583 Thanks
    maman
    I find it interesting what isn't in spending money... clothes, haircuts, cinema, meals. Personally, I would lump those with spending. You also seem to be saving at least twice over for holidays with the 200 regular savers, 300 standing order and your existing savings.
    Originally posted by theoretica
    I agree. It's a very mixed list. DH and I would include most cinema and meals in our shared household budget as we'd go together and spending would be the same . Clothes and haircuts are personal spending (DH pays £10, I pay £100). It's a bit like toiletries, basics come from the grocery budget but things from cosmetic counters are personal.
    There is for us

    One of our delights is trying out restaurants. We live in a part of the world which is pretty well off for restaurants/hotels etc and we have a couple of favourites but continue to seek out new places

    Most restaurants down here do very good value (not cheap) lunches which is ideal if you are retired. A long lazy lunch with some wine, maybe a Cointreau and an afternoon rounded off in one of our favourite watering holes. Bliss!

    I can honestly say I've eaten out far more in retirement than when I was working
    Originally posted by NeilCr
    Isn't that why bus passes were invented?
    • harrys dad
    • By harrys dad 3rd Sep 17, 6:08 PM
    • 1,833 Posts
    • 2,060 Thanks
    harrys dad
    My wife and I have told our children we are spending our savings in retirement at a rate that means we will spend our last penny on the day we die. (They encourage us to spend them, they won't need them after we are gone).

    My daughter asked what would happen if we live longer than we have estimated (which we all hope we will). I told her we would remortgage the house.

    You can't take it with you.
    • DUTR
    • By DUTR 3rd Sep 17, 7:29 PM
    • 11,033 Posts
    • 6,271 Thanks
    DUTR
    Please tell me .... in retirement there is more to eating out than hunting for cheap afternoon meal deals??
    Originally posted by svain
    I don't know.... I'm not retired, I just know around here you can get 2 course or 3 course for under a tenner with a drink in the afternoons, but the OP mentions that the regular houshold expenses are already covered, just the pocket money was at issue.
    • maman
    • By maman 3rd Sep 17, 8:16 PM
    • 16,985 Posts
    • 101,583 Thanks
    maman
    I don't know.... I'm not retired, I just know around here you can get 2 course or 3 course for under a tenner with a drink in the afternoons, but the OP mentions that the regular houshold expenses are already covered, just the pocket money was at issue.
    Originally posted by DUTR
    All we've heard really is that it's been resolved not how. So we're left imagining he must love his coffee and newspapers!
    • liz3chickens
    • By liz3chickens 3rd Sep 17, 8:26 PM
    • 11 Posts
    • 93 Thanks
    liz3chickens
    I find it interesting what isn't in spending money... clothes, haircuts, cinema, meals. Personally, I would lump those with spending. You also seem to be saving at least twice over for holidays with the 200 regular savers, 300 standing order and your existing savings.
    Originally posted by theoretica
    We usually go to the cinema and eat out together, hairdressers every six weeks or so, his costs £10 mine £14.50 and we both spend about the same on clothes, so all these come out of our joint account. The £25 a week each for spending money is for whatever we choose. If I wanted a coffee in town and a magazine every day, which I don't, or he wanted a bet on the horses and a packet of cigars, we would pay it from our £25.
    The £300 per month is the total for standing orders to four separate accounts one of which is the holiday account.
    Holiday account is £85 a month so for instance in Jan this year I used money from this account to book a ferry for summer hols, April paid balance for holiday in France, in June withdrew spending money for the holiday and last month bought a Groupon deal for a weekend away. All money from the holiday account. I'm sure Martin Lewis says something on here about saving into different 'pots' to pay yearly bills. So that's what I do.
    The £200 regular savers we started last year ended in May so we decided to have a trip to India in October. When this year's 12 month regular savers end next year we will have a good sum to use as we want.
    Grocery Challenge 2017
    Jan £203/£200
    Slimming World 2017 Get to Target Lose the lbs and save the £s
    • liz3chickens
    • By liz3chickens 3rd Sep 17, 8:49 PM
    • 11 Posts
    • 93 Thanks
    liz3chickens
    All we've heard really is that it's been resolved not how. So we're left imagining he must love his coffee and newspapers!
    Originally posted by maman
    Sorry should have said. We had a talk and he says he doesn't remember what he spent £100 on in two weeks. We have agreed to take a bit more notice of what we are spending, take time to discuss finances and how things are going. Retirement is new to both of us and we both need time to adjust.
    Grocery Challenge 2017
    Jan £203/£200
    Slimming World 2017 Get to Target Lose the lbs and save the £s
    • svain
    • By svain 3rd Sep 17, 10:14 PM
    • 196 Posts
    • 348 Thanks
    svain
    I don't know.... I'm not retired, I just know around here you can get 2 course or 3 course for under a tenner with a drink in the afternoons, but the OP mentions that the regular houshold expenses are already covered, just the pocket money was at issue.
    Originally posted by DUTR

    You can eat in most towns eat at that money .... however who would want to or restrict themselves to eating in these type of places on a regular basis?? .... especially when retired ... surrounded by the afternoon drinkers or the chavvy families and their screaming kids.
    • maman
    • By maman 3rd Sep 17, 10:30 PM
    • 16,985 Posts
    • 101,583 Thanks
    maman
    Sorry should have said. We had a talk and he says he doesn't remember what he spent £100 on in two weeks. We have agreed to take a bit more notice of what we are spending, take time to discuss finances and how things are going. Retirement is new to both of us and we both need time to adjust.
    Originally posted by liz3chickens
    Oh, that's good. Maybe he just needed a bit of a wake up call. Being recently retired he probably just has more time to spend in shops whereas you've had a couple of years to acclimatise.

    You're doing amazingly well to manage holidays on just £85 a month.
    • getmore4less
    • By getmore4less 4th Sep 17, 9:12 AM
    • 30,265 Posts
    • 18,100 Thanks
    getmore4less
    Thank you to everyone for your very interesting and varied responses.
    During 45 years of marriage my husband has never been interested in our finances. Mortgages, bank accounts, credit cards, savings, holidays - his attitude is that if I think we can afford it ( I make sure we can) then it's OK. That's the way it has worked.
    We have a Santander 123 account which is kept at £20,000. No mortgage, loans or cc debt, the cashback doesn't cover the £5 fee but worth it for the interest.
    Monthly income is £1590 from pensions.
    Outgoings - Council tax, water, gas, phone etc £250
    Monthly savings by s/o for Christmas & birthdays, holidays, insurance, hobbies (golf & fitness classes) £300
    Food £200 - 250 Spending money £216 (£25 week)
    So about £500 to cover petrol, meals out, cinema, clothes, dentist, haircuts etc. So not a lot left over.
    We save £200 each in 5% regular savers, money transfered from another savings account and have a pensioner bond, fixed rate cash ISAs and some money in premium bonds.
    Our plan is to spend some of our savings on holidays, trips and treats together over the next ten years while we are fit and able.
    My original question was about spending money and I think we have resolved that but it has been interesting to read what others think is a reasonable amount to spend every week.
    Originally posted by liz3chickens
    That lot comes to £1900.
    • frannyj543
    • By frannyj543 7th Sep 17, 11:49 PM
    • 99 Posts
    • 42 Thanks
    frannyj543
    You mention "a bet on the horses". If he doesn't remember where money is going and can't be accountable for it likelihood is it's going on the favourite at Goodwood.
    • pollypenny
    • By pollypenny 8th Sep 17, 8:14 AM
    • 22,920 Posts
    • 59,213 Thanks
    pollypenny
    We enjoy our retirement and if eating in Prezzo on one of their offers allows us to fly to the USA twice a year to see our grandsons, as well as another good holiday, we will take advantage of offers.

    We go to the cinema about twice a month, 2 for 1 on the meerkats, usually eat afterwards. This week I've had two lunches out with different U3A groups, we were out to eat last night and are again tonight.

    We had decades of counting every penny - no more! Therefore, I would say choose your bargains without being parsimonious in order to afford the real treats!
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
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