Keep wasting money

Debt_is_terrifying

Hi all
I was just wondering what a healthy budget to have left over each month after all the direct debits are gone, food is paid for etc. 

Between my partner and I we have roughly £1500 left but it always seems to disappear. I don't think this is a normal level of spending and I'm quite worried that we're wasting a good level of income. 

Outside of the mortgage we have debts of £25k. £16k car loan and £9k left of a loan than we took for an extension at home. We were worse than this with our spending and I've started saving £1000 per month and now have £6k. I feel that £1500 per month should be more than enough money for us to do what we want with as a family but we always seem to run out. 

I earn a lot more than my partner and pay the vast majority of the bills. I try and make it as fair as possible and we have £750 per month in our own accounts to spend. She's currently on maternity leave and we have two children, I worry that when her maternity pay begins to decrease we are going to struggle for money. 

I was just wondering whether having £1500 per month after all bills (apart from putting fuel in cars) was a normal amount and if we are being particularly wasteful?

Penguin_

Keep a spending diary & you will soon see, & may be shocked when you do see, where your money goes. Do you drink in the house? During lockdown I was having a glass or 2 of wine most nights as I was furloughed, that soon adds up!! 

DebtHurricane

I’d be singing from the rooftops if I had £1500 left AFTER bills and food was paid for. Not criticising, but yes that’s a lot considering 2 adults can eat healthily for £250 a month or even much less. 

Debt_is_terrifying

That's after food, gym memberships, cars, phones everything. It just seems to disappear and our income is about to drop whilst she's off on maternity leave and it really worries me. 

RobM99

I'd be happy with £1500 a month total income.

elsien

Debt_is_terrifying said:

That's after food, gym memberships, cars, phones everything. It just seems to disappear and our income is about to drop whilst she's off on maternity leave and it really worries me. 

You need to work out where it's going - that's a lot of money to be just evaporating if its after all your bills have been paid. It's nearly as much as my take home pay before any bills come into play. 
Can you and she go through your credit card statements and receipts for the last month to try to get a grip on what's going on? 

fiwen30

That is an awfully large amount to just be disappearing. If I were you, I’d print off 3 months worth of bank statements, create categories such as ‘eating out’, ‘entertainment’, ‘health & beauty’, or whatever else you’re spending this money on, and go through the statements and highlight where the spending is happening.

If you can have a visual of where the money is going, you’ll understand it better.

Penguin_

fiwen30 said:

That is an awfully large amount to just be disappearing. If I were you, I’d print off 3 months worth of bank statements, create categories such as ‘eating out’, ‘entertainment’, ‘health & beauty’, or whatever else you’re spending this money on, and go through the statements and highlight where the spending is happening.

If you can have a visual of where the money is going, you’ll understand it better.

Do this!! And be prepared for a lightbulb moment when you see where your money really is going.

webnibbler

fiwen30 said:

That is an awfully large amount to just be disappearing. If I were you, I’d print off 3 months worth of bank statements, create categories such as ‘eating out’, ‘entertainment’, ‘health & beauty’, or whatever else you’re spending this money on, and go through the statements and highlight where the spending is happening.

If you can have a visual of where the money is going, you’ll understand it better.

Also use an app to track any cash spending. I use Spending Tracker - https://apps.apple.com/gb/app/spending-tracker/id548615579

alt80

Echo the above. I see £7750/m after tax and would be very happy if there was £1500/m left, would be very happy just to break even tbf after everything had been paid for. You're doing great. 

Coffeekup

Your asking the right question, but only you know the answer.
As others have said write down your spends in a diary or plop them in to a spreadsheet. Highlight in colours in spends for each category. I'm guessing you spend more on food than you think you do with top up shops, buying lunches for work and coffee's on the go all add up, as do treats for the kid's, same with food going in bin.

£1500 spare between the two of you is something most can only hope for including myself. If I were you I'd work out your partner's worse case scenario for pay and see what you have spare a month on that income then you'll know if it's manageable. Many say keep 3-6 months expenditures in savings.

One you start budgeting it changes everything, more so when you can financially plan ahead for the next 9 month's +. Doing this will give you goals, it'll also flag up your over spends or forgotten planning and help keep you on track. Also save you money in the long run by having the funds there to pay for insurances in one go compared to a 12 month plan where interest is added.  Doing a statement of affairs will really help open your eyes. 

Then if you really wanna get serious and save more look at new energy/internet and TV services like sky, Netflix and Amazon deal's, and get the best deals the same with your insurance's. Stop direct debits you've forgotten about or no longer want to pay.

Good luck hope you find the answer your looking for.