Disposable income

System

midlander81 wrote: »

Perhaps 'disposable' was the wrong term to use then. For us, it's money that we have a choice over how it's spent. We choose to use some of this money to overpay our debt but don't have to do that - it's a choice.

It's not just choice. You say you have £1000 disposable income, I say that because you're in debt, really you don't have that amount of money. You've borrowed against your disposable income.


You say I have £1000 disposable income, but have £400 pcm a month debts, I say really in order to have £1000 truly disposable you need to be debt free. Chances are if you're not in debt, but have the same stuff, you probably only have a portion of that figure.

midlander81

andydownes123 wrote: »

It's not just choice. You say you have £1000 disposable income, I say that because you're in debt, really you don't have that amount of money. You've borrowed against your disposable income.


You say I have £1000 disposable income, but have £400 pcm a month debts, I say really in order to have £1000 truly disposable you need to be debt free. Chances are if you're not in debt, but have the same stuff, you probably only have a portion of that figure.

I think that we are applying different mindsets to my original question Andy. I don't agree that people need to be debt free in order to have some degree of disposable income, but I accept that different people will apply different rules based on their own context,

worriedDan

We have started using a zero budgeting system each month. We have come to realise that no two months are the same and that we need to amend our budget each month, depending on what is coming up that month.

Using zero budgeting, we basically decide where the money is going to go each month. We also have a decent amount of disposable income but each month we allocate this to different virtual pots

Yet_More_Puddylove

Well, my bills (including house bills, council tax, utilities, phone, TV, animal costs, etc.) come to £1200 each month.
My income varies a lot each month, but I'd have a minimum of £2k up to maybe £3 or £4k left over. Out of that I pay into ISAs, buy my food and diesel, my animals' food, save, etc.
I don't have any debts.

I'm not really sure how this information helps anyone other than me, though?

dano17439

getmore4less wrote: »

To put it in perspective.

Once a property is paid for mortgage rent

A retired couple can live on £1k per per month

running one cheap car and have a holiday.


I realy is about choice if most things are already paid before the £1k is left have a good look at where it is going

If you don't know then start the spending diary and find out.

You can make better choices if you k ow where it goes.

Sorry to say I disagree with this. Ive just added up all my monthly expenditure that I would have if I was retired and it totals £684 per month. This is


Council Tax
Garage Rent
Tv Licence
Water bill
Car tax
Gas and Electric
Home entertainment (TV/Internet/Telephone)
Mobile Phone
Gym subscription


So you think you can live on £306 per month. I plan to enjoy my retirement, not stare at the same 4 walls and eat beans on toast every night

enthusiasticsaver

In my view disposable income is money spare to save or spend. This should be after all essential outgoings are accounted for and any other allocated expenses. We have a joint income of £2500 approximately and are early retirees.

Essential outgoings include council tax, phone/broadband, gas and electric, mobile phones, denplan insurance and water. These come to £485.

Non essential outgoings are sky/tv licence/gym membership/ national trust sub/ personal expenses for DH and I and the cost of running two cars (not fuel). That is another £600.

Food, fuel, gifts, eating out and entertainment is a further £500.

That leaves £915 as disposable income but it is not really disposable as we save it for holidays and home improvements.

We have no debt or mortgage but we could not live on £1000 and enjoy the lifestyle we have now.

Mnd

We bring in 2400, straight away our total normal monthly outgoings are 1100. That's everything, bill's, food sky so that gives us discretionary cash of 1300 of which we aim to save 1000 so Mrs d can retire at 62

Takmon

dano17439 wrote: »

Sorry to say I disagree with this. Ive just added up all my monthly expenditure that I would have if I was retired and it totals £684 per month. This is

Council Tax
Garage Rent
Tv Licence
Water bill
Car tax
Gas and Electric
Home entertainment (TV/Internet/Telephone)
Mobile Phone
Gym subscription

So you think you can live on £306 per month. I plan to enjoy my retirement, not stare at the same 4 walls and eat beans on toast every night

My outgoings for all that excluding garage rent are £315 a month. So it doesn't have to be anywhere near £684 a month if you plan properly.

pennystretcher

For me - disposable income goes to additional pension contributions and savings. I have a ten-year plan to be able to stop working before my pension plans start to pay out.... We'll see how that works out I'm guessing my plan to retire to Spain is going to be out considering the value of Sterling

pennystretcher

dano17439 wrote: »

Sorry to say I disagree with this. Ive just added up all my monthly expenditure that I would have if I was retired and it totals £684 per month. This is

Council Tax
Garage Rent
Tv Licence
Water bill
Car tax
Gas and Electric
Home entertainment (TV/Internet/Telephone)
Mobile Phone
Gym subscription

So you think you can live on £306 per month. I plan to enjoy my retirement, not stare at the same 4 walls and eat beans on toast every night

I am still working but don't have the following:

Garage Rent - on street parking + I don't have a car
Tv Licence - don't watch live TV
Car tax - no car
Home entertainment (TV/Internet/Telephone) - £12 pm broadband/landline
Mobile Phone - £10 pm, can cut to less when I stop working
Gym subscription - no car, walk everywhere to keep me fit

So you actually have plenty of "wants" in your list