Disposable Income When Paying Off Debt

TheRoders

I have factored into my budget every single penny that goes out of the account every month and the £1200 is what is left... Everything is allocated.

loey93

Yes I allow myself £100.00 a week but this doesn't mean I necessarily spend £100.00 a week, if I have money left over that particular week I put it straight into my sealed savings pot. I am looking at reducing my "fun" money but this works for me rather than restricting myself. Spending does seem to add up.. I.e a meal once or twice a month can set me back £80.00 when you factor in drinks and taxi! then there's clothing, additional fuel, makeup etc..

nkkingston

indesisiv wrote: »

I built in take aways, the odd beer, weekends away. Also managed to treat myself when I paid off a card by using the next "payment" I would have made to that card on something I really wanted.

I think this is a really good idea to prevent you getting demotivated!

Ben75

I would say the key is to budget your money and stay on top of what you are spending it on, and make allowance for adjustments where necessary. I've been using YNAB and its transformed they way I manage my money. Look up the principles behind it, and use that as a starting point for thinking about how much you allocate to debt repayments / luxuries etc. Good luck with the journey, it feels good to take control

Bumblebear

I'm somewhat inclined to agree with moneyfacts here. It's probably just a wording choice, but if the money is there for specific things that you enjoy, when, let's face it, repaying debt is not enjoyable, then I think that is different from simply "needing" to have spending money to spend.


I now use EssexHebridian's idea of I have money put aside that is "unallocated" as it were, then if I don't spend it all it either goes as an extra payment to the credit card (or now into my small savings pot now I'm only two payments away from clearing my debt). I had been feeling too restricted when I only allowed bill and very basic food money. I wasn't worried about the fact that I had nothing, more a low level of anxiety about "what if something happens and I don't have the money to deal with it" (like a "small" vets bill), or even "what if I find a really good bargain that would save me money in the long run but I can't afford to take advantage of it" (bulk buy/heavily discounted offers). I don't have that problem now, and funnily enough it's made me more tight with what I do have!


I spend what I considering a reasonable amount on two constructive hobbies each month (I repay £500 per month on my credit card, I spend £50-£60 on sport/training/working out and sewing) . My personal experience is that my two 'constructive hobbies' actually take away some of the opportunity to spend, because I'm spending my free time concentrating on them. I think it counts as investing to save