Couple in ok jobs,no debts..no way to save,where are we going wrong with our budget?!

JimmyTheWig

A brilliant post, margaretclare.
Hit the nail on the head.

It's about priorities.
It's about asking "what can I get for my money?".

margaretclare

Thank you, Jimmy.

Another suggestion could be to set aside some savings FIRST, rather than thinking 'haven't enough left to save from'.

DH and I - a pair of retired wrinklies - both save. But we do it differently. I save from the income when it arrives. DH saves what is left over at the end of every 4-week period (state pension paid 4-weekly).

The current TV ads for ING savings are absolutely correct. Saving DOES give you a good feeling, like a toddler splashing in a puddle! I don't know why it does - maybe it's a very basic and atavistic sense of security - but it is so. Well, if we didn't save we wouldn't be able to plan a holiday up the Rhine from Harwich to Bodensee, something we've talked about for years and which we're just in process of planning in more detail, where to stay, what to see etc. Whereas you seem to look on an annual holiday as a 'must-have' and you've budgeted for it first. See what I mean - there's a difference.

TheKeyMaker

We have a combined income of £41,000 a year.

I might have missed something; don’t seem to me that your budget calculations were made with 41k income…what did I miss?

Debt_Free_Chick

Put the clothes spend into a savings account - instant access. Then, when you need to buy clothes, you have the money to do so, but it's in the savings account.

Do this with other similar expenditure. What you have is a "contingency" for clothes "just in case". So save it until you need/want to spend it.

Chances are that as it's in a separate account, you will start to think twice about spending it.

I started doing this about 10 years ago and it really made me careful with my spending.

I've accumulated a healthy amount of savings - but live in rags :rotfl:

gax23

Debt_Free_Chick wrote: »

Put the clothes spend into a savings account - instant access. Then, when you need to buy clothes, you have the money to do so, but it's in the savings account.

Do this with other similar expenditure. What you have is a "contingency" for clothes "just in case". So save it until you need/want to spend it.

Spot on. This is what I've started doing. I have the 6.5% instant access Kaupthing Edge account. I used the budget planner to work out what I spend in a year on things like Christmas, birthdays, clothes, car maintenance, holidays etc. I then divided this by 12, rounded it up a fair bit to be sure, and put this amount into the account each month. That way, I'll never get any nasty surprises (washing machine/car breaking down etc) and if I don't spend it, it goes into my ISA at the end of the year

nobblyned

TheKeyMaker wrote: »

We have a combined income of £41,000 a year.

I might have missed something; don’t seem to me that your budget calculations were made with 41k income…what did I miss?

Good spot, your take-home should be over £2600 pcm, rather than £2300.

Where does the rest go? Pension, work share schemes? If the latter, then you are already saving.

mickym

good spot on the take home pay... i made a huge eror there for some reason!

The extra 300 has certainly helped things!

Ill attempt ro answer some of your points.

Internet/Newsgroups - Yes binaries for legal computer software updates and also using it as a cheaper alternative to Sky + for watching programmes at a later date.

£100 on clothes a month is split between us as a couple, and to be honest, it probably wont be spent every month, but more likely to go on other bits that may be needed. Rather over budget than undercut things.

Gas / electric bills. Based on my parents current bills in a similar 3 bed property.

Content Insurance - Taken from a quick online quote with Norwich Union.

£50 for drinks, £500 for Christmas and £300. Again thats between us as a couple. I have a large family, loads of nephews and nieces. budgeted about £15 each. The parents are old enough now not to worry about for pressies really.

I like the idea of putting the cash we have left over from bills/rent into a savings account that we can get instant access to, much better than a current account i suppose!

Any recommendations?

mickym

nobblyned wrote: »

I guess the obvious question is why do you want to pay the rent, gas, water, electric and council tax on a 3 bed semi when there is only the two of you?

This is the bulk of your outgoings and could probably yield 2-300 a month in savings if there is a smaller property available that would suit.

I realise you are after a family soon, but looking at your outgoings saving for this should be a priority, how would you afford it at the moment?

Hi Ned,

we are looking at 3 bed properties as there seems to be a big lack of 2 bed places. Also 2 bed places in our area seem to be only a small amount cheaper than 3 beds.

Will need a dedicated office to work from as i will be working from home to cut my current £250 petrol bill a month.

Debt_Free_Chick

mickym wrote: »

I like the idea of putting the cash we have left over from bills/rent into a savings account that we can get instant access to, much better than a current account i suppose!

Any recommendations?

ING - plain vanilla with an "OK" rate, certainly not the best. But it will do the job and be better than what you've got.

You could find the "best" rate today, but I guarantee you will be shopping around again in 12 months time, when their headline rate is discontinued :rolleyes: