average spare weekly income

Nasqueron

Mine is typically budgeted to the day in one sense, I have a spreadsheet with all my payment dates to know when I need to move money in to settle them, I have an average expected CC bill for the month which is adjusted after statement

kimwp

Petriix said:

Do people really budget on a weekly basis? Don't most wages and bill payments in/out happen monthly?

Personally I find the concept of 'spare' money quite strange. All my money is in use all of the time, earning as much interest as possible until it's needed - I have maybe 10 regular savers earning between 6-8% and a stocks and shares isa but the total monthly pay in exceeds my regular income so it becomes a juggle and some don't get funded in some months.

Any 'spare' money sits in the best easy access savings account I can find - currently up to £4k in Santander Edge saver at 6% and anything over with Chase at [4.55%]. I move money back to my current account on the day before each direct debit goes out while all spending is done on cashback credit cards where possible which allows me to earn interest on that money for longer.

I don't have a specific savings target and my savings go down in some months and up in others depending on which annual bills come around (insurance and holidays etc.) so it's definitely a longer term game with me. My earnings are quite variable too because I work a split between a part time PAYE job and self-employed freelance work which is more sporadic in terms of how much money comes in when invoices are paid. 

Ultimately I live reasonably frugally most of the time which allows me to be a little frivolous occasionally. I eat out maybe once per month, make use of free cinema tickets from Lloyds and socialise at my/friends' homes which keeps costs down.

The long term aim is to pay off the mortgage while paying as little interest as possible. At the moment I'm in the very lucky position of having a fix way below the current base rate so I put the money aside rather than overpaying as I can earn more interest than I pay out. My frivolous spending simply reduces the virtual pot that will eventually go to into the mortgage, but that pot also covers the emergency fund and any bigger spending like a new appliance or DIY project.

I used to track things in more detail but, as I've already reduced costs wherever possible, I'm happy with my spending and don't want to reduce my quality of life by cutting other non-essential things like Netflix and Spotify though they could go if necessary. 

Wowee, what ten regular savers have 6%+?

PRAISETHESUN

kimwp said:

Petriix said:

Do people really budget on a weekly basis? Don't most wages and bill payments in/out happen monthly?

Personally I find the concept of 'spare' money quite strange. All my money is in use all of the time, earning as much interest as possible until it's needed - I have maybe 10 regular savers earning between 6-8% and a stocks and shares isa but the total monthly pay in exceeds my regular income so it becomes a juggle and some don't get funded in some months.

Any 'spare' money sits in the best easy access savings account I can find - currently up to £4k in Santander Edge saver at 6% and anything over with Chase at [4.55%]. I move money back to my current account on the day before each direct debit goes out while all spending is done on cashback credit cards where possible which allows me to earn interest on that money for longer.

I don't have a specific savings target and my savings go down in some months and up in others depending on which annual bills come around (insurance and holidays etc.) so it's definitely a longer term game with me. My earnings are quite variable too because I work a split between a part time PAYE job and self-employed freelance work which is more sporadic in terms of how much money comes in when invoices are paid. 

Ultimately I live reasonably frugally most of the time which allows me to be a little frivolous occasionally. I eat out maybe once per month, make use of free cinema tickets from Lloyds and socialise at my/friends' homes which keeps costs down.

The long term aim is to pay off the mortgage while paying as little interest as possible. At the moment I'm in the very lucky position of having a fix way below the current base rate so I put the money aside rather than overpaying as I can earn more interest than I pay out. My frivolous spending simply reduces the virtual pot that will eventually go to into the mortgage, but that pot also covers the emergency fund and any bigger spending like a new appliance or DIY project.

I used to track things in more detail but, as I've already reduced costs wherever possible, I'm happy with my spending and don't want to reduce my quality of life by cutting other non-essential things like Netflix and Spotify though they could go if necessary. 

Wowee, what ten regular savers have 6%+?

https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

Rich1976

Jo1923 said:

can i ask what is the average amount people have each week for spare cash - ie after all bills , food petrol, etc 
so money for the odd takeaway , cofee, little treat ?

If you’re talking purely about spending money then we have about £400 on an average month between the two of us. Sometimes it’s less and sometimes it’s more, just depends on what is happening in a month. 

This would be usually for any meals out, a coffee a couple of times a week, any clothing needed, parking if we are off out somewhere for the day, birthday presents etc.

As both of us wear glasses, these are replaced every 18 months to 2 years so the cost of those comes out of the spending money allocation ( but I normally increase the amount available to allow for this and just means less goes into savings on that month ).

HillStreetBlues

Personally I find it a pointless question as far to many variables.

Petriix

kimwp said:

Petriix said:

Do people really budget on a weekly basis? Don't most wages and bill payments in/out happen monthly?

Personally I find the concept of 'spare' money quite strange. All my money is in use all of the time, earning as much interest as possible until it's needed - I have maybe 10 regular savers earning between 6-8% and a stocks and shares isa but the total monthly pay in exceeds my regular income so it becomes a juggle and some don't get funded in some months.

Any 'spare' money sits in the best easy access savings account I can find - currently up to £4k in Santander Edge saver at 6% and anything over with Chase at [4.55%]. I move money back to my current account on the day before each direct debit goes out while all spending is done on cashback credit cards where possible which allows me to earn interest on that money for longer.

I don't have a specific savings target and my savings go down in some months and up in others depending on which annual bills come around (insurance and holidays etc.) so it's definitely a longer term game with me. My earnings are quite variable too because I work a split between a part time PAYE job and self-employed freelance work which is more sporadic in terms of how much money comes in when invoices are paid. 

Ultimately I live reasonably frugally most of the time which allows me to be a little frivolous occasionally. I eat out maybe once per month, make use of free cinema tickets from Lloyds and socialise at my/friends' homes which keeps costs down.

The long term aim is to pay off the mortgage while paying as little interest as possible. At the moment I'm in the very lucky position of having a fix way below the current base rate so I put the money aside rather than overpaying as I can earn more interest than I pay out. My frivolous spending simply reduces the virtual pot that will eventually go to into the mortgage, but that pot also covers the emergency fund and any bigger spending like a new appliance or DIY project.

I used to track things in more detail but, as I've already reduced costs wherever possible, I'm happy with my spending and don't want to reduce my quality of life by cutting other non-essential things like Netflix and Spotify though they could go if necessary. 

Wowee, what ten regular savers have 6%+?

Off the top of my head:

YBS £50 @ 8%
Principality £200 @ 7.5%
Zopa £300 @ 7.5%
Coop £250 @ 7.5%
First Direct £300 @ 7%
Nationwide £200 @ 6.5%
Lloyds £400 @ 6.25%
Natwest £150 @ 6.15%
TSB £250 @ 6%

Some of these might be no longer available or have lowered the rate very recently, or I might have misremembered. And it's only 9 not 10, but there are others. 

Altior

El_Torro said:

MattMattMattUK said:

The median household disposable income after housing costs for the UK is £2,495 per month (£2,865-£370) or £574 per week (£659-£85). That does not cover food, transport, insurance, debt repayment etc. 

Beyond that figures get messy, the average seems to be about £210 per adult, but that varies between negative figures and millions of pounds. It is augmented with borrowing, net unsecured consumer borrowing increases by about £58 per household per year, but 58% of adults have zero unsecured debt.

I imagine it's very difficult to get a clear picture, as you say. For example if someone is putting a lot more than the minimum into their workplace pension every month through payroll (a common occurrence on some MSE forums, not so common in the wider population though I guess) then do the extra pension contributions count as disposable income? There are arguments for why it should and shouldn't be. 

In the real world I'd count it as what's left in my bank account over a pay period after subtracting all the things I have to pay. So for example I could toggle my net pay by reducing SS or cancelling BIK, but I don't count those optional salary reductions in net income. I only count what arrives in my current account. 

The slightly more difficult analysis are costs that don't align with a pay period. For example, mortgage pcm, pay pcm, easy. Council tax 10 months out of 12, car insurance once in 12 months, not as straight forward.

It will seem obvious to most on mse, but I imagine a lot of every day people fall into the trap of not accounting for the one off and irregular costs in their perceived budget. So they'll see all income over a pay period (eg month), pay all their monthly bills and feel like they are free to spend the rest. Then in September their car needs servicing and a bit of work, that will wipe out a positive current account balance, or they'll reach for their flexible friend.

HillStreetBlues

Altior said:

In the real world I'd count it as what's left in my bank account over a pay period after subtracting all the things I have to pay. So for example I could toggle my net pay by reducing SS or cancelling BIK, but I don't count those optional salary reductions in net income. I only count what arrives in my current account. 

The slightly more difficult analysis are costs that don't align with a pay period. For example, mortgage pcm, pay pcm, easy. Council tax 10 months out of 12, car insurance once in 12 months, not as straight forward.

It will seem obvious to most on mse, but I imagine a lot of every day people fall into the trap of not accounting for the one off and irregular costs in their perceived budget. So they'll see all income over a pay period (eg month), pay all their monthly bills and feel like they are free to spend the rest. Then in September their car needs servicing and a bit of work, that will wipe out a positive current account balance, or they'll reach for their flexible friend.

You can pay over 12 months but normally need to request it.

Ordinary_Yet_Unique

As a retired person I have about £500 plus a month for what I call personal spends. This is after all bills have been paid and savings topped up. For me personal spends includes hair cuts, chiropodist, meals out, buying books, health and beauty and such like. I do not smoke or drink alcohol. I keep a spending diary for these things and any surplus is sent to savings at the end of the month. I may also use some personal spends money to buy Christmas and Birthday presents during the year, which means less from those savings pots lol. 

Fun doesn’t have to be expensive!

Altior

HillStreetBlues said:

Altior said:

In the real world I'd count it as what's left in my bank account over a pay period after subtracting all the things I have to pay. So for example I could toggle my net pay by reducing SS or cancelling BIK, but I don't count those optional salary reductions in net income. I only count what arrives in my current account. 

The slightly more difficult analysis are costs that don't align with a pay period. For example, mortgage pcm, pay pcm, easy. Council tax 10 months out of 12, car insurance once in 12 months, not as straight forward.

It will seem obvious to most on mse, but I imagine a lot of every day people fall into the trap of not accounting for the one off and irregular costs in their perceived budget. So they'll see all income over a pay period (eg month), pay all their monthly bills and feel like they are free to spend the rest. Then in September their car needs servicing and a bit of work, that will wipe out a positive current account balance, or they'll reach for their flexible friend.

You can pay over 12 months but normally need to request it.

Indeed. Personally it feels like a nice little end of year bonus 

I'm quite lucky (and big headed), my challenges come from managing cash positions, account requirements, stoozing et al. I actually managed to drop the ball and pay a non refundable £3 club Lloyds fee this week, evidently not as shrewd as I think !