Have we got our sums right?? Appraise our plan.

Triumph13

Sea_Shell wrote: »

We do think about inflation, and our hope is that our overall pot will grow by 3% net of inflation, but if not, then we're not trying to protect the pot from ANY erosion. At the end of the day, it's there to be spent, not hoarded (too much!!!)

Assuming starting pot of £500k, no growth, and inflation of 2%, with a stating spend of £15k, calculators show we'd still have £135k left after 20 years. So every % above inflation we get, is a bonus!

DB and state pensions then come into play.

Why 20 years? I thought you were only about 12 years from DH's DB - which covers most of your spending - coming in to play?
I'm even more curious about those £75 of bank charges! Some kind of bundled account that gives other services like breakdown and/or travel insurance?

Spreadsheetman

Sea_Shell wrote: »

Here's how we did it in 2017....
Bills 3381.85 (Gas, Elec, Water, Sky inc BB, CT)
Holidays/Entertainment 3038.36 (1 Europe, 3 UK) includes eating out etc.
Car Expenses 1114.61 (2 cars, Insurance, service,tax)
Groceries 2560.86 (Mainly Aldi)
Household 819.88 (Insurance, maintenance)
Health/Beauty 623.76 (includes gym and glasses)
Clothes/Shoes 320.45 (Mainly Primark)
Cash/Misc. 40 (we don't spend cash!!)
Fuel 804.19 (5000 miles p.a.)
Gifts/Cards 118.97
Bank Fees 75
Phones/Calls 166.25 (inc 1 new phone £150 - PAYG sim only)
13064.18

Crikey - I thought I was quite tight, but that has outed me as a complete spendthrift

My scruffy old car costs twice as much to run as two cars - how does that work? (even after correcting for mileage)

MK62

I can't help feeling though that while the budget might include all the everyday items, and even the annual recurring ones, it misses the less frequent big spend items......such as replacement cars and/or major car repairs, boilers, home appliances, home furniture and decorating, major house repairs such as a reroof or new windows/doors.....and so on (it can be a long list).

I'd like to know how two people can spend just £16.25 on mobile phone calls/texts/data in a year too.....:eek:.......and I thought our £10pm sim-only contracts were being frugal...

kidmugsy

MK62 wrote: »

I'd like to know how two people can spend just £16.25 on mobile phone calls/texts/data in a year too

So would I. We reckon to spend less than £15.

In our next austerity drive I shall learn to text.

Spreadsheetman

MK62 wrote: »

I can't help feeling though that while the budget might include all the everyday items, and even the annual recurring ones, it misses the less frequent big spend items......such as replacement cars and/or major car repairs, boilers, home appliances, home furniture and decorating, major house repairs such as a reroof or new windows/doors.....and so on (it can be a long list).
...

Yes, there's the "predictable unpredictable" category. I'm allowing about £3k pa to cover house maintenance and car replacement on top of normal yearly budgets. That will accumulate until needed.

Sea_Shell

cfw1994 wrote: »

If I shopped mainly at Aldi, the Aisle of Dreams would capture that budget alone! You know you need a small angle grinder, cycle shoes and some new ski jackets :rotfl:

DH is very good. He goes with a list and "if you're not on the list, you're not coming in (the trolley)". When I go, i'm ooh look, scented candles!!!!

Sea_Shell

Triumph13 wrote: »

Why 20 years? I thought you were only about 12 years from DH's DB - which covers most of your spending - coming in to play?
I'm even more curious about those £75 of bank charges! Some kind of bundled account that gives other services like breakdown and/or travel insurance?

No reason, 20 years was just a random number I put in the calculator just "to see".

As for the fees...We used to have multiple Santander 123's for a while at £5 fee. the cashback was accounted for under income, so was offset by that in effect.

Sea_Shell

Spreadsheetman wrote: »

Crikey - I thought I was quite tight, but that has outed me as a complete spendthrift

My scruffy old car costs twice as much to run as two cars - how does that work? (even after correcting for mileage)

Our cars are both roughly £200 each insurance, £200 service and MOT, total for tax £180 and basic breakdown at £70...the rest is sundries in Halfords etc.

Sea_Shell

MK62 wrote: »

I can't help feeling though that while the budget might include all the everyday items, and even the annual recurring ones, it misses the less frequent big spend items......such as replacement cars and/or major car repairs, boilers, home appliances, home furniture and decorating, major house repairs such as a reroof or new windows/doors.....and so on (it can be a long list).

I'd like to know how two people can spend just £16.25 on mobile phone calls/texts/data in a year too.....:eek:.......and I thought our £10pm sim-only contracts were being frugal...

Our usual spend is £13k as you say, with £15k giving us a bit more. Major spends will have to come out of capital, but we keep being told we got plenty!! We'll go down to one car once I give up work too, so that'll give us a "free change" next time, as I should get approx. £7k for mine.

As for our minuscule mobile spends....we use email, messenger, FB, or (shock) actually see people in real life!!! I only use data on Wifi, not on 4G whilst out and about, unless I really need to.

Sea_Shell

We've always been like this. We used to watch Alvin when he had his show, and I love the Eat well for less and Shop well for less type programmes. We throw our head in our hands at some of the spending on there!!!! OMG!!!

You'd do well to spot a branded product in our house, or any items of designer wear, handbags or shoes. My laptop is 6 years old (and perfectly adequate for me) and we have no "tech-gadgets".