Managing my money better

strawb_shortcake

May end up being a long one, I'm not in debt beyond a mortgage (currently £55k ish owing)

I always thought I'm good with money but I've been drifting for awhile now and need to be a bit more smarter with my money. I am the main and only breadwinner, and do feel under pressure of this. I'm trying to ensure everyone has their needs and wants and mine are bottom of the list. I need to change this, and main thing I want to do is holiday more.

I'm 42, I earn £48k per year, a promotion which may be possible in next year (it's largely me holding myself back) would put me up to £60,300. 
Work in CS so have decent pension. SP is up to date and probably forecast to be 40% bracket in retirement. OH SP on target to be full and will be working this year.

3 children 2 at uni and 1 about to start A levels and wants to go to uni. 1

 child at uni costs me nothing the other around £165 pm.

Without doing a full SOA I've tried to include outgoings best I can.

All monthly otherwise specified 

Council tax £184 (10 months)
Water £55 (10 months)
Broadband £27
Electric £96
Oil - no more than £400 per year
Life insurance £22
Mortgage £503
Nhs pre payment £12
Car insurance £30
Mobile £41 (covers 5 phones)
Bike maintenance/ins £50
Car maintenance £50
Netflix £19 - covers parents and older child

If sums correct I make this £1088

Child related costs £252 - £70 (swimming lessons) will stop in July and £165 (uni support) will stop in August.

Fuel around £150 very rarely pay for parking

Food averages around £450 per month.

Child benefit of £102.40 goes directly into a savings account to pay for child bits, uniform etc throughout the year.

I save £200 a month for treats and mini emergency fund.

I save £75 a month into a LISA

I save £100 a month into RS to go towards a special holiday in 2028

To summarise 

Bills       1088
Saving   375
Child      252
Fuel       150
Food      450

Total      2310

I take home £3020 pm. I usually get a bonus of £1k a year around July/August this typically pays for Christmas.
I therefore have around £700 per month that I can use better. It often gets spent on bits for the house, meals out and entertainment but with little thought.

My OH currently isn't working, will likely only work part time, but will hopefully be working from end April. Whatever he earns we typically split 3 ways, 3rd for each of us and 3rd for the savings - its kind of an emergency fund, but does get used for buying motorbikes hence the 3rd being used to pay this back.

In the saving account mentioned above we have just shy of £11k

We have 1 x full premium bonds, winnings get paid into above saving account. 

I have £4k earmarked for a holiday in July.

£8k in my LISA

Where I pay £200 pm and CB is only sitting at £500 at the moment due to just paying for a family trip to London. But do not forsee using any of that until August.

I want to be able to save £3k a year for travelling, next year I shall only be paying for 3 not 5 like this year.

We are also going to start paying an extra £50 a month to the mortgage from April.

I know what I need to do, but I also need a structure and perhaps some other eyes to give me a steer. 

Realise we are cash heavy, but PB's likely to go towards house move and possible new kitchen and bathroom. We will either move this year on in two years time but not upsizing or downsizing so should be no real change to mortgage debt or duration.

Child 2 will be 21 next year, after spending £3k on a vehicle for child 1 at 21, expect to spend similar on child 2 - planning trip abroad Easter 26 so need to save towards that. PB wins will be part of this. 

I guess all going to plan come September I will be better off, and due a pay rose in summer but unlikely to be much as a CS. But at the moment it's causing me a lot of stress probably unnecessarily. But I've been poor and struggled and don't want to go back there. As I earn OH leaves it all to me.

So any tips pointers etc would be much appreciated 

Sorry it's so long!!

Saver73

hello @strawbshortcake I switched paying my council tax from 10 to 12 months to balance out over the year and because often the "free" months money just vanished on other stuff so I didn't find there was a benefit.

I'd put a bit in savings split between easy access in case of emergencies and regular savers.

Maybe a bit more into your pension to save tax?

You look well within budget and from what you've written look to have things under control.  

Middle_of_the_Road

Just a few thoughts on omissions in your budget..

Home insurance 
TV licence 
Haircuts
Dentist 
Travel insurance 

Not sure the LISA contribution is necessary, as you could use that to pay more into your workplace pension.

https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/lifetime-isa-vs-a-pension-what-s-the-difference

strawb_shortcake

Saver73 said:

hello @strawbshortcake I switched paying my council tax from 10 to 12 months to balance out over the year and because often the "free" months money just vanished on other stuff so I didn't find there was a benefit.

I'd put a bit in savings split between easy access in case of emergencies and regular savers.

Maybe a bit more into your pension to save tax?

You look well within budget and from what you've written look to have things under control.  

I think it's probably psychological but I like the 2 months no council tax, gives a bit extra for the February half term and towards Easter holidays

strawb_shortcake

Middle_of_the_Road said:

Just a few thoughts on omissions in your budget..

Home insurance 
TV licence 
Haircuts
Dentist 
Travel insurance 

Not sure the LISA contribution is necessary, as you could use that to pay more into your workplace pension.

https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/lifetime-isa-vs-a-pension-what-s-the-difference

Middle_of_the_Road said:

Just a few thoughts on omissions in your budget..

Home insurance - paid in a lump sump from a savings account
TV licence - no TV licence 
Haircuts - comes from the £700, but £35 every 8 weeks. The others use the clippers at home. 
Dentist - again out of the £700, but this is actually quite a bit as it's 2 x hygienist and 2 x dentist for 2 adults so around £160 every 6 months. I will look to put this aside.
Travel insurance - buy as needed as only holiday once a year. 2 years time and we aren't tied to school holiday will look for annual insurance.

Not sure the LISA contribution is necessary, as you could use that to pay more into your workplace pension.

https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/lifetime-isa-vs-a-pension-what-s-the-difference

The LISA I like as my work pension is linked to SPA so it will give me a tax free lump sum at 60 which I don't automatically get with my pension. 

I have looked at  increasing my pension in other ways but the cost of which will have a greater impact on how on our disposable income now and wanting to achieve a bit more living. However 1 promotion and 1 child leaving uni later in the year, plus my OH having regular income then I'll reassess. 

Other comments above.

Eyeful

1. As long as your income is bigger than yours out goings and you have an emergency fund
(lets say 1 or 2 years of your total yearly out goings), you have no need to worry.

2. Hope you are paying your council tax by monthly instalments over the year, That you are on a water meter.

3. Paying for swimming lessons I can understand.
 Why are you paying £165 a month for someone at university.  Unless they are a child genius, they are going to be an adult and not a child. 
They should not be depending on the bank of mum & dad but learning how life works in the real world.
If they don't it will come as a big shock to them and they may never learn how to manage money correctly.

4. If you want to save money I suggest a simple way (which you already know) is to:
Learn how to correctly brush your teeth with either a manual (or electric) tooth brush.
Brush your teeth twice a day for at least 2 minutes with a fluoride toothpaste. 
Floss between your teeth once each day. 
Have a dental check up twice a year. 

Its amazing how many people do not do this even now. This will safe you a fortune in dental bills throughout your life.

strawb_shortcake

Eyeful said:

1. As long as your income is bigger than yours out goings and you have an emergency fund
(lets say 1 or 2 years of your total yearly out goings), you have no need to worry.

2. Hope you are paying your council tax by monthly instalments over the year, That you are on a water meter. - we do, OH likes a bath so not sure we'd save just yet on a water meter. But expect to make this change before too long.

3. Paying for swimming lessons I can understand.
 Why are you paying £165 a month for someone at university.  Unless they are a child genius, they are going to be an adult and not a child. 
They should not be depending on the bank of mum & dad but learning how life works in the real world.
If they don't it will come as a big shock to them and they may never learn how to manage money correctly. The course is intensive 40 hours a week much of which is physical - it's not your typical degree. Their student loan doesn't cover all their needs. They work during the holidays but as we can help we do - I think this is fairly typical.

4. If you want to save money I suggest a simple way (which you already know) is to:
Learn how to correctly brush your teeth with either a manual (or electric) tooth brush.
Brush your teeth twice a day for at least 2 minutes with a fluoride toothpaste. 
Floss between your teeth once each day. 
Have a dental check up twice a year. Learnt the hard  way, and no on the road to redemption 

Its amazing how many people do not do this even now. This will safe you a fortune in dental bills throughout your life.

Thank you, comments above

moneytorques

Get yourself both the Snoop and Sprive Apps. Snoop is a great tool for graphical analysis of your monthly spending against a set budget and Sprive for Mortgage Overpayments, both Apps free I am using both for over a year and find its made a huge difference and encouragement to spend wisely and overpay my mortgage.