Please check my budget (£2,823pm) or share yours so I can get some ideas where I'm going wrong.

afis1904

schiff said:

Fighter1986 said:

LittleVoice said:

Fighter1986 said:

So the groceries are easily double what they need to be. OH and I eat very, very well and we do it on a quarter of that.

Entertainment subscriptions are excessive, too. Absolutely superfluous to requirements. 

When I was living alone and training very hard I managed to compose myself a near 4000 calorie per day diet of clean, fresh macros on £40 a week. 

£40/week for one person equals £693/month for 4 (though I realise you wouldn't expect the members of the household to require all those calories as in your diet).  Groceries would, in my view, include more than just food.

True enough but shared meals don't cost as much per head as individual meals. 

Except when the household consists of vegans, vegetarians AND meat eaters!

Not really because you still don't have to cook several meals. Last time I checked meat eaters can eat vegetarian food.

getmore4less

afis1904 said:

schiff said:

Fighter1986 said:

LittleVoice said:

Fighter1986 said:

So the groceries are easily double what they need to be. OH and I eat very, very well and we do it on a quarter of that.

Entertainment subscriptions are excessive, too. Absolutely superfluous to requirements. 

When I was living alone and training very hard I managed to compose myself a near 4000 calorie per day diet of clean, fresh macros on £40 a week. 

£40/week for one person equals £693/month for 4 (though I realise you wouldn't expect the members of the household to require all those calories as in your diet).  Groceries would, in my view, include more than just food.

True enough but shared meals don't cost as much per head as individual meals. 

Except when the household consists of vegans, vegetarians AND meat eaters!

Not really because you still don't have to cook several meals. Last time I checked meat eaters can eat vegetarian food.

When desperate.

Plenty of vegi vegan won't have food cooked anywhere near real food. 

getmore4less

Retired_Minky said:

getmore4less said:

Retired_Minky said:

maxximus75 said:

You also mention your SO in several statements?  It doesn't seem that they are too flexible with change?  Maybe that's something to work on?

Yes. It's a partnership so I have to get them on board. They'll have their red lines that they're not willing to cross. Likewise I'll have mine. We've both made some compromises hence budget v2. I think we work together well. We don't argue over money. Just negotiate and make it clear what can and can't be changed.

Sometimes the way to manage that is to have 3 budgets(maybe 5 with 4 of you).
That also need the income splitting into 3/5.

You have on the shared list everything that is part of the family budget where you make shared priorities on where the money allocated to that pot goes, anything that is over the red line gets taken off the list as that goes in one of the personal budgets.
This list also included the shared longer term goals like bigger house.

Once this joint list is planned if the big No.(income allocated)at the top  is not enough then the negotiation on how to make it bigger starts.
Then all the over red line stuff get lumped together for each person to make thier own priorities with their allocation.

Just a though  what is the interest rate on that car finance and any other debts where you pay interest?
How does that compare to the mortgage rate?

Thanks for the advice. The car is on 0% finance. Mortgage is 2.35% which might be a little high but it's an offset mortgage and I hold most of my easy access cash buffer in there.

Do not fall into the trap of thinking your savings are at 2.35%.

All you are doing is borrowing less at 2.35%.

Rates are 1/2 that for reasonable LTV. 

PipneyJane

Retired_Minky said:

newlywed said:

I wouldn’t try to halve your grocery budget in one hit, do it in a couple of stages. Otherwise you might meet moans And resistance that won’t help. Maybe try and cut it £200 the first month, then another £100 the next etc and see if anyone has noticed or not?

Thanks. I've taken this on board and agreed with the SO to go for £500 this month and then down to £400 next month. Seems like a good plan.

Hi @Retired_Minky.  I've only just started reading your thread but since everyone is discussing your Grocery budget, how about you join us on the Old Style Board's monthly Grocery Challenge?   The link is to July's Challenge but August's will be going up in a week or so.  There's lots of links to budgetting and recipe threads at the start of the monthly thread.  You may also want to browse the Lots More Sneaky Ways to Save the Pennies thread.

Hope this helps.  Good luck.

- Pip

Retired_Minky

PipneyJane said:

Retired_Minky said:

newlywed said:

I wouldn’t try to halve your grocery budget in one hit, do it in a couple of stages. Otherwise you might meet moans And resistance that won’t help. Maybe try and cut it £200 the first month, then another £100 the next etc and see if anyone has noticed or not?

Thanks. I've taken this on board and agreed with the SO to go for £500 this month and then down to £400 next month. Seems like a good plan.

Hi @Retired_Minky.  I've only just started reading your thread but since everyone is discussing your Grocery budget, how about you join us on the Old Style Board's monthly Grocery Challenge?   The link is to July's Challenge but August's will be going up in a week or so.  There's lots of links to budgetting and recipe threads at the start of the monthly thread.  You may also want to browse the Lots More Sneaky Ways to Save the Pennies thread.

Hope this helps.  Good luck.

- Pip

Thanks Pip. Will check this out.

PipneyJane

Retired_Minky said:

PipneyJane said:

Retired_Minky said:

newlywed said:

I wouldn’t try to halve your grocery budget in one hit, do it in a couple of stages. Otherwise you might meet moans And resistance that won’t help. Maybe try and cut it £200 the first month, then another £100 the next etc and see if anyone has noticed or not?

Thanks. I've taken this on board and agreed with the SO to go for £500 this month and then down to £400 next month. Seems like a good plan.

Hi @Retired_Minky.  I've only just started reading your thread but since everyone is discussing your Grocery budget, how about you join us on the Old Style Board's monthly Grocery Challenge?   The link is to July's Challenge but August's will be going up in a week or so.  There's lots of links to budgetting and recipe threads at the start of the monthly thread.  You may also want to browse the Lots More Sneaky Ways to Save the Pennies thread.

Hope this helps.  Good luck.

- Pip

Thanks Pip. Will check this out.

My pleasure.

Having finally read the rest of the thread, a few more thoughts spring to mind:-

1. Mortgage.  You’re still employed, so now is the time to speak to a mortgage broker about remortgaging.  Personally, I’d go for a five year fixed rate mortgage.  Martin’s latest email is quoting one at 1.42% on a LTV of 60%.  The security of knowing exactly how much your mortgage will cost each month is worth the hassle AND the rate is lower than what you’re currently paying, so saving you money.  Of course, if you are happy with the level of your currently payments, you can always overpay, stopping the overpayments if/when the proverbial hits the fan.
2. Life Insurance.  When you talk to your mortgage broker, ask for a review of your life insurance.  At a minimum, you’ll need a policy linked to the mortgage balance, in order to pay it off in the eventuality of your death or your SO’s death.  (I am assuming a joint mortgage.). There should be Death In Service benefits linked to your employer’s pensions scheme, but you might want to review those, too.
3. You have three dependent adults in your household.  Have you been open and honest with them about how precarious your job situation is?  It’s worth holding a family conference, telling them the truth and asking for their help/buy in before the Magic Money Fountain dries up.  That’ll make my next few bullet points easier.
4. Subscription services.   Get everyone to keep a diary for a month about what they’re watching/using on which service.  Also ask them to check whether the show is available on any of the other platforms and, if so, which one(s).  That way, you may be able eliminate some of these services.
5. Toiletries.   Are you paying your dependents an allowance?  Do they have independent income, e.g. benefits?  Unless they’re prepared to tolerate Value shampoo/hair conditioner/body wash/toothpaste/soap, they should be buying their own toiletries out of their allowance, not the household grocery budget.  Meanwhile, stop buying brands and just buy the cheapest Value products.  Seriously, there is very little difference between the cheapest Value shampoo and Tresemme; it’s mainly scent and marketing.  If you find the Value shampoo is making your hair greasy, then replace it with the next cheapest when the Value shampoo runs out.
6. Cleaning products.  Again, unless there’s a good reason (e.g. eczema) for not buying Value brand, don’t buy branded.
7. Assign everyone a “Cooking Dinner Night” and issue a £3 Dinner Challenge, i.e. whoever is cooking dinner must produce the entire meal for four people for a total of less than £3, including dessert.  All meals/ingredients must be decided upon in advance, before the weekly groceries are ordered and a list given to the grocery orderer.  (Where possible, they are to use items already in the cupboard BUT the full price must be included in their meal budget.)   This will have three effects:  a) it takes the strain off the primary cook and gives them a night off, b) it’ll foster their buy-in to reducing the grocery budget, and c) it’ll make the pickiest eaters gradually re-think their food preferences.
8. Allowances and banking.  Everyone needs to have a little of their own money to save/spend on their own priorities, yourself included.  Household expenditure (mortgage, groceries, the bills, etc) should come out of a household bank account that is separate from your own.  Then you pay everyone an equal allowance into their own bank accounts and if they want to buy Lottery tickets, clothes or expensive toiletries, it comes out of their money.  If they run out, then tough!  The same rule applies to you, too, so you will need to designate a “Money To Live Off” bank account for yourself and quarantine off into savings any money that isn’t shared out in allowances/the Household Bank Account.  Those savings can go into your Emergency Fund.

Hope this helps.

- Pip

RetSol

How amazing is the MSE forum! ?  I have read this thread - twice.  I realise that I have fought shy of drawing up a detailed budget because it seems a bit scary and, to date, I have never needed to do it.  I am good at "living within my means" but now that I am (semi-) retired it is more difficult to say what my means are right now as I am in the decumulation stage and have choices to make over how I use my resources. Time to get my head down and get real about what my spending will be over the next 12 months....

Retired_Minky

I can recommend YNAB for creating and keeping track of a budget. 

RetSol

Retired_Minky said:

I can recommend YNAB for creating and keeping track of a budget. 

Thank you, @Retired_Minky.  I have a spreadsheet downloaded from MSE which I am going to use to get started.  Thank you also for sharing your budget - it has got me thinking! I'm not sure that I feel brave enough to share mine yet, though.  

Retired_Minky

PipneyJane said:

Retired_Minky said:

PipneyJane said:

Retired_Minky said:

newlywed said:

I wouldn’t try to halve your grocery budget in one hit, do it in a couple of stages. Otherwise you might meet moans And resistance that won’t help. Maybe try and cut it £200 the first month, then another £100 the next etc and see if anyone has noticed or not?

Thanks. I've taken this on board and agreed with the SO to go for £500 this month and then down to £400 next month. Seems like a good plan.

Hi @Retired_Minky.  I've only just started reading your thread but since everyone is discussing your Grocery budget, how about you join us on the Old Style Board's monthly Grocery Challenge?   The link is to July's Challenge but August's will be going up in a week or so.  There's lots of links to budgetting and recipe threads at the start of the monthly thread.  You may also want to browse the Lots More Sneaky Ways to Save the Pennies thread.

Hope this helps.  Good luck.

- Pip

Thanks Pip. Will check this out.

My pleasure.

Having finally read the rest of the thread, a few more thoughts spring to mind:-

1. Mortgage.  You’re still employed, so now is the time to speak to a mortgage broker about remortgaging.  Personally, I’d go for a five year fixed rate mortgage.  Martin’s latest email is quoting one at 1.42% on a LTV of 60%.  The security of knowing exactly how much your mortgage will cost each month is worth the hassle AND the rate is lower than what you’re currently paying, so saving you money.  Of course, if you are happy with the level of your currently payments, you can always overpay, stopping the overpayments if/when the proverbial hits the fan.
2. Life Insurance.  When you talk to your mortgage broker, ask for a review of your life insurance.  At a minimum, you’ll need a policy linked to the mortgage balance, in order to pay it off in the eventuality of your death or your SO’s death.  (I am assuming a joint mortgage.). There should be Death In Service benefits linked to your employer’s pensions scheme, but you might want to review those, too.
3. You have three dependent adults in your household.  Have you been open and honest with them about how precarious your job situation is?  It’s worth holding a family conference, telling them the truth and asking for their help/buy in before the Magic Money Fountain dries up.  That’ll make my next few bullet points easier.
4. Subscription services.   Get everyone to keep a diary for a month about what they’re watching/using on which service.  Also ask them to check whether the show is available on any of the other platforms and, if so, which one(s).  That way, you may be able eliminate some of these services.
5. Toiletries.   Are you paying your dependents an allowance?  Do they have independent income, e.g. benefits?  Unless they’re prepared to tolerate Value shampoo/hair conditioner/body wash/toothpaste/soap, they should be buying their own toiletries out of their allowance, not the household grocery budget.  Meanwhile, stop buying brands and just buy the cheapest Value products.  Seriously, there is very little difference between the cheapest Value shampoo and Tresemme; it’s mainly scent and marketing.  If you find the Value shampoo is making your hair greasy, then replace it with the next cheapest when the Value shampoo runs out.
6. Cleaning products.  Again, unless there’s a good reason (e.g. eczema) for not buying Value brand, don’t buy branded.
7. Assign everyone a “Cooking Dinner Night” and issue a £3 Dinner Challenge, i.e. whoever is cooking dinner must produce the entire meal for four people for a total of less than £3, including dessert.  All meals/ingredients must be decided upon in advance, before the weekly groceries are ordered and a list given to the grocery orderer.  (Where possible, they are to use items already in the cupboard BUT the full price must be included in their meal budget.)   This will have three effects:  a) it takes the strain off the primary cook and gives them a night off, b) it’ll foster their buy-in to reducing the grocery budget, and c) it’ll make the pickiest eaters gradually re-think their food preferences.
8. Allowances and banking.  Everyone needs to have a little of their own money to save/spend on their own priorities, yourself included.  Household expenditure (mortgage, groceries, the bills, etc) should come out of a household bank account that is separate from your own.  Then you pay everyone an equal allowance into their own bank accounts and if they want to buy Lottery tickets, clothes or expensive toiletries, it comes out of their money.  If they run out, then tough!  The same rule applies to you, too, so you will need to designate a “Money To Live Off” bank account for yourself and quarantine off into savings any money that isn’t shared out in allowances/the Household Bank Account.  Those savings can go into your Emergency Fund.

Hope this helps.

- Pip

Thanks for this PIP. I missed this first time round for some reason. Amazing post. Really helpful.