monthly budget - 'disposable income'

alecsa

Feeling low today, and it's not only the weather, it's the bills.

So after paying all bills and setting aside grocery money and school lunches I'm left with about £500 'disposable' income and I feel like it's low. This disposable income is supposed to cover everything from clothes, school stuff (trips, etc), entertainment, holidays (what are those?), eating out (once in a blue moon), hair etc.

No debt other than the mortgage, but no savings either.. I'm unable to save in traditional ways so what I'm trying to do instead is force myself to make small overpayments to the mortgage (£50/month).

Is £500pcm that low - for one adult and one 5-yr old child in London? Or it's just me feeling like that? like I'm not able to organize my finances? And feeling poor despite a reasonable income?


ps. forgot to mention, I'm very stressed about CC debt and loans, I managed to avoid it so far but every month I feel like I'll get there soon. Like when my dishwasher broke recently... etc.

opinions4u

I'm unable to save in traditional ways

Try online savings accounts then?

£6,000 a year is a huge surplus.

Open five easy access online savings accounts and put money in them monthly.

1. Clothes account - £60
2. Holiday and days out - £180
3. Entertainment, eating out and hair - £60
4. Replacing big stuff that breaks - £130
5. Slush fund for other things - £70

Don't use the funds for anything else other than their specified purpose. Understanding where you spend this £500 each month will help you manage it better.

By the way, a broken dishwasher is annoying. A broken washing machine is stressful. Massive difference! They still do Fairy Liquid.

JuicyJesus

I wish I had £500 a month disposable income.

DragonQ

I used to have about £500pm disposable income and managed to save around £300pm. Granted I was only paying for myself though.

Maybe your lifestyle just needs to change.

anoncol

Sounds high to me.

Tiglath

Sounds like you need to save up an emergency fund pronto, and a spending diary - why can't you have a set amount go out to a savings account the day after payday? I live in London and have about £700/month after essentials, but I save £500 of that and allow myself a £200 spending amount/month. Anything that I don't spend gets swept into savings as well. How much spare would you need each month to feel NOT poor?

affordmylife

I wish I had £500 a month disposable income.

I pay that a month to cc. im left with £400 for food/bills and all the stuff you spend your excess on.

id say you are really really fortunate.

ColdIron

alecsa wrote: »

clothes, entertainment, eating out, hair.

Try cutting back on one of these a month and put the cash you save into some sort of savings account, you'd be amazed how fast it builds up

Mojisola

Keep a record of your outgoings for a month - every penny - and then add it up and see whether some of it is getting frittered away on stuff you wouldn't really miss. We sometimes spend out of habit - looking at the way it adds up over a month can be very revealing.

There's very few who can't reduce their outgoings after putting up their SOA on the Debt board and getting advice from other posters.

Lagoon

I'm another that would love that kind of spare money. For me, that has to cover everything except my rent. Bills, groceries, car costs...savings don't happen, but treats don't either.

That said, it's not something I get too low about. I'd love to be able to save for my future, but I'm not living in poverty.

alecsa

Thanks all it looks like I have to do one of those SOAs...