The cost of living

eastcorkram

westv wrote: »

Any budget that didn't allow for two overseas holidays a year just wouldn't float my boat but that's just me.

Thankfully, I won't be wanting any of those, so my figure will be lower

Goldiegirl

I think this is one of those 'how long is a piece if string' questions


Everyone is going to be different, depending on what they've earned in their lifetimes, and how they like to live their lives.


Some figures that have been bandied around on this board in the past are beyond my wildest dreams, yet others seem quite small


For what it's worth, for the last 15 months, we've been comfortably living on an annual income of around £18500, giving us a monthly income of around £1500. (neither of us are currently tax payers)


This includes all bills, food, general and day to day spending, days out and entertainment (we like theatre, cinema and meals out) We run one car, bought new last year.


Our household income will increase by about £10000 pa in October, when my husband reaches state pension age.


There's also the prospect of my state pension in 10 years time, and we have savings and 2 other pension pots, as yet untouched.


All this makes me feel comfortable, but my comfort level would be considerably less if our household income was going to stay at £18500pa with no savings and no prospect of large increases. That would be my 'getting by' level.


But our true situation is my 'living well' level.

westv wrote: »

Any budget that didn't allow for two overseas holidays a year just wouldn't float my boat but that's just me.

Exactly. We expect to have a couple of cruises a year - currently paid for by savings, but when my husband's state pension starts, we will be more or less paying for cruises from our income

kidmugsy

Goldiegirl wrote: »

We run one car, bought new last year.

Do you include the writing-off of capital expenditures in your monthly figure?

Stubod

..probably need £2k per month for a couple to live "OK"...but will also needs to increase with inflation.

....OK you can survive on a lot less..probably 12K..so really depends on your expectations as to "...what is living?...."

Goldiegirl

kidmugsy wrote: »

Do you include the writing-off of capital expenditures in your monthly figure?

No, we don't

mark5

westv wrote: »

Any budget that didn't allow for two overseas holidays a year just wouldn't float my boat but that's just me.

Agreed

It's a long way off for me and I would love to retire early but would never do it if it meant no foreign holidays, a couple of short breaks each year, no meals out, football season ticket, trips to the cinema, theatre, take away on a Saturday night etc.

Triumph13

See 'The Number' thread for more discussion of this subject than you can shake a stick at. The consensus seemed to come out a little over £2k per month for a couple.
https://forums.moneysavingexpert.com/discussion/2146737


Personally, we are currently living very well on about £2,750 a month as a family of 4, but I'm actually targeting about £4k per month before we pull the trigger and retire early as we do have some expensive hobbies like scuba diving that we'd like to get back when the kids are off our hands.

Ganga

Any budget that didn't allow for two overseas holidays a year just wouldn't float my boat but that's just me.
Depends what sort of holidays you want,i could sit in the sun all day with a cold cheap beer in my hand but some people are used to 5 star holidays/luxury whilst i could get by on 3 star but must admit love my hols in the sun.

Ganga

westv

Part of my plan involves using the 25% lump sum to fund part of the income gap between retirement and the SPA.

fatbeetle

Thanks very much for your thoughts guys. As we currently live in Aus it's hard to get a reasonable picture of what we need. We'd rather retire earlier than hang on in there just to have a few bob extra a month, but also would like a reasonable standard of living. (This forum is going to be a godsend in minimising outlay!)

We're happy to holiday in Devon and Cornwall, but will want a biannual trip back to Aus to see our daughter.

Our hobbies are walking and photography, as as we have all the kit, the outlay for those is minimal, petrol basically. We'd like gym membership, but may set up a home gym which will pay for it'self in the long run.

Any more thoughts or info needed, please fire away

Thanks

Thom