My budget

georgiasmum

I'm now debt free and have been drawing up a monthly budget and am dissatisfied with the results.

I should have a surplus of 670.00 per month (previous debt repayments). I have allocated 500 of this to savings (to buildup a cash buffer zone) and 50 to overpay my mortgage. I am left with 120 extra per month (30 per week extra) and I feel a bit resentful.

My question is am I being too ambitious with my savings programme at this stage or am I just greedy!! I guess I thought that I would be a lot more flush post-debt but I don't seem to be.

Expenses wise everything is still cut to the bone and we don't have sky etc. Any thoughts gratefully received and if you think I'mbeing unrealistic or greedy feel free to say so - I value your constructive feedback.

chesky369

It's psychological. You feel as though you should now be able to have champagne with every meal since your overall surplus is so much more. You're ignoring the fact that the £550 you put on one side will benefit you enormously in the future. OK you may only have an extra £30 for spending now, so try to make sure you buy yourself a little treat with this every now and again - you deserve it.

Cypher

I don't get your problem, in fact I wish I had your problem.

Your treating yourself to an extra £120 a month and your SAVING a further £550 :T

You are saving a lot compared to previously but in 12 months time when your little nest egg sits at over £6000 and your mortgage is also a little smaller than previous you will be sitting pretty.

I've never had any savings, but at the moment my savings are looking pretty good (for me) and I'm feeling pretty chuffed. I've gone from about £6k on Credit Cards and Buy Now Pay Laters to over £3000 in savings all in just over two years. However I am only now starting to feel in control of my money rather than the other way around. I definitely dont feel like going out splashing my cash and have become a bit of a scrouge. Although my target is £10k in savings once I have that I may back off a little and start to enjoy things.

If I were in your position I would aim to get 3-6 months of living expenses saved and a small emergency fund of about £1000 set up. (Thats my £10k plan)


{edit}
I forgot to say well done on becoming Debt Free :T

georgiasmum

Thanks for your feedback - I am doing the right thing and I will reap the benefits!:beer: :beer:

Phoenix79_2

Well done on being debt free :beer: