How much disposable income do you all have left per month?

snowqueen555

From my monthly wages (working for 1 year now) the ratio is roughly

All bills/transport = 40-45 %
Savings = 25-30 %
Disposable = 30 %

I have about £250-£300 a month to spend on what I want, is this too much, because it looks like a lot, but it doesn't get me very far.

Lokolo

When I was actually working, I took home around £1250.

Rent was £330
Bills were £40
Mobile was £30
Car was around £150-200 (inc insurance)
Spending on Getting Drunk was £200
Presents £40

Left over - around £400-450.

talana

snowqueen555 wrote: »

From my monthly wages (working for 1 year now) the ratio is roughly
All bills/transport = 40-45 %
Savings = 25-30 %
Disposable = 30 %
I have about £250-£300 a month to spend on what I want, is this too much, because it looks like a lot, but it doesn't get me very far.

For this thread to be of any use, you need to be clear what you're describing as disposable income. I would define the 25-30% you've put down as savings as disposable also.

Lokolo appears to agree (as savings not specifically mentioned), although presents and getting drunk are also disposable income

RobertR

I manage on around £690 per month from a public sector pension plus savings interest and investments, but I am mortgage and debt free.

After food, bills, £50 per month for Sky and £50 per month invested with H-L I have around £100-£150 in disposable income each month.

Where I fall down is that I carefully budget for all my outgoings months in advance, but then spend all my disposable income in the first couple of weeks of the month.:o

colin79666

snowqueen555 - You haven't mentioned a pension. If you don't have one you should seriously consider starting one, especially if your employer will contribute.

rictus123

I take home anything between £1,400 and £1,750, depends on overtime. As im still 19 i live with my parents.

Board = £100 a month
Phone = £40
Petrol = £100
Cards/loan payment = £100
Car finance = £240
Money on clothes/going out/take aways etc = £120
Presents (average over year) = £25

total out = £725.

So taking home £1,400 - £725 out = £675 disposable. Utpo £1,025 if i do overtime to take earnings upto £1,750.

Marine_life

snowqueen555 wrote: »

I have about £250-£300 a month to spend on what I want, is this too much?

Yes it really is too much as you should be able to manage on £100. Send me a private email and I will give you my bank details where you can transfer the excess.

rictus123

Good idea for a thread, hope we got lots of answers.

On my basic wage i think if i save the £500 at least a month then the £175 a month can be in a sort of spends account. Hopefully it will build up and il have £1,000 or so nest in my current account by the end of next year with at least £6,000 in savings.

Loughton_Monkey

Having kept accurate records for 34 years work, before early retirement, my actual figures are set out below, with notes.

Grand total earnings - Actual amount Undisclosed! This I define as all employment related income. It includes Employer Pension Contributions, Bonus, Commission (when I was selling for a short while), Consultancy fees (for short time when consulting). Gross.

1. Groceries/housekeeping - 5.3%
2. Expenses - 21.8% (Mortgage Interest, Insurance, Utilities)
3. Motoring - 2.0% (Low because mainly had Co. Car. This for 2nd car mainly)
4. Tax and National Insurance - 19.8% (But 25.2% for 28 years UK employment, significantly lower for 6 years foreign employment)
5. Free Spending - 20.9% (Holidays, meals out, books, computers etc.)

So Grand Total was 69.8%

Hence, working lifetime savings (age 22 to 56) = 30.2%

Another statistic: As a result of the 30.2% not spent, the total 'net worth' as at retirement was 103.3% of grand total 34 years gross employment income.

Marine_life

I agree it is difficult to define disposable income. Do we think it is income we could save or income we actually save (i.e. is it the income around which we have choices?)

I would guess as follows (using Loughtons model) as a percentage of Net Income:

1. Groceries/housekeeping - 4.2%
2. Expenses - 27.7% (Mortgage Interest, Insurance, Utilities, Private medical)
3. Motoring - 10.0% (We have two cars alongside a company car - and they are not cheap cars)
4. School and university fees - 16,2% (One child in private education and one child at University fully funded by us)
5. Free Spending - 9.3% (Holidays, meals out, books, computers etc.)

Total around 67.4% or almost exactly two-thirds. The remainder goes into savings.

All the above calculations are based on my regular monthly income which comprises generally about two-thirds of my total income. The remaining third is paid once a year (as bonus) and goes straight into savings.

bendix

Interesting thread, although I agree with the propisition that it really depends on how you determine disposable income. For what it's worth, this is my breakdown:

Earned income (excludes savings / investment income but includes tax relief on pension / employers contribution etc) 100%

Pension contribution - 37%
Long-term liquid savings / managed funds etc - 19%
Short-term cash savings - 4%
Fixed living costs - accomodation, power, services such as wifi, Sky, mobile, groceries, transport etc - 25%
Surplus - 15%

If you added unearned income (eg interest on savings etc), my total income would be increased by 17%. That income is reinvested so that would affect the ratios above.