How much is enough to live on?

georgiasmum

I recently became debt free (Dec 2006), I overpay my mortgage, and save my previous debt repayments in an ISA, regular savings account and a small amount into an AVC. My monthly expenses haven't changed - I am still paying the same for bills etc. My question is that I have a student living with me now and the income is £300 per month which is not an insignificant sum - what should I do with the money? He will be with us for at least 2 years. My current savings plan has a medium term priority of paying for my maternity leave - we a thinking of trying for our second baby later this year and I am trying to save at least 6 months living expenses so I can enjoy my maternity leave if/when it comes. I also contribute £40 per month into savings schemes for my daughter but this is already included in my savings amount. I will receive the firtst payment this week and was just going to put into my Halifax websaver as my 'rainyday' cushion.

We have lived so frugally for so long now that it is really hard to think that I can spend money without feeling guilty or stressing completely. I bought new trainers last week (nothing fancy) and I agonised over the £45 despite the fact that I work out 6 times per week and need decent footwear... Am I abnormal????

Primrose

No I don't think you're abnormal at all.. Frugality often becomes a habit out of necessity and then you start to realise that you don't really need many of the fancy or expensive extras that many people feel they can't survive without. By all means have the odd splurge. You deserve it and that is what you work hard for. You sound as if you're still fairly young. As you and your husband grow older you never know what unexpected hiccups lie round the next corner - illness, redundancy, etc. . Having now lived long enough to experience some of these crises I can't tell you what a comfort it gives to know that surplus money had been steadily tucked away against these contingencies. Money can't buy you health or happiness but it can buy you some peace of mind, and when other diffkiculties are plaguing you, that is worth having. Don't berate yourself. Many thousands of people deeply in debt would give their right arm to be in your position but you've got there by your own efforts.

maryotuam

Maybe you should set aside £50 -£100 a month purely for treats. You know the old sayings "All work and no play makes Jack a dull boy" and "A little of what you fancy does you good"!! You will lose some privacy from having someone stay with you so maybe a weekend break every few months might do you the world of good.

nearlyrich

Being careful with money is a good way to live, you can only spend it once and having money in the bank for emergencies is a great comfort as is being mortgage free. I think sometimes people spend money to buy "happiness", which is peace of mind and you already have that so spending money doesn't hit that button for you. I can spend money no problem if I need something or want something badly enought but I prefer to see my bank balance grow.

It's nice to know you can afford to spend some quality time with your baby when you want to and I hope that your plans come to fruition.

Astaroth

It very much comes down to personal preference on these sorts of things.

Whilst you can only spend money once there is little point being a very rich corpse either - my uncle who had never been on holiday out of this country (the only time he did have a holiday at all was for his honeymoon and golden wedding), always drove an old banger (but always loved nice cars) etc died recently and it turns out he owned 6 houses with no debts on them. He out lived his wife and 2 kids so there is no one for them logically to go to. It has left everyone wondering why.

missile

There is no I in team, what does your partner think?

georgiasmum

Missile that is a very fair point.
My husband and I have separate finances. I earn considerably more than he does and he contributes a small amount towards shared expenses - electric,phone,council tax. I pay the mortgage, insurances, food etc etc. When I talk to him he says 'Whatever you think'. It does make it difficult because I am saving for the both of is out of my salary and he (aside from his 250 per month) looks after himself. Any ideas.... as for saving for a second baby he leaves that up to me as well. I imagine his contribution to that will be the sperm donation!!l lol!!!