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Do you spend more than you earn? poll results & discussion

Poll ran between 07-14 Jan 08:

The core assessment of anyone's finances is finding out do you spend more than you earn? The free Budget Planner tells you exactly that and was last week downloaded by over 30,000 people.

What was your initial result (before you started planning any cut-backs)?
A. Spend MORE than earn by over £10,000 a year - 5% (173 votes)
B. Spend MORE than earn by between £7,500 and £10,000 a year - 2% (93 votes)
C. Spend MORE than earn by between £5,000 and £7,499 a year - 3% (127 votes)
D. Spend MORE than earn by between £2,500 and £4,999 a year - 7% (262 votes)
E. Spend MORE than earn by between £1,000 and £2,499 a year - 10% (393 votes)
F. Spend MORE than earn by under £1000 a year - 8% (314 votes)
G. Totally balanced budget - 8% (298 votes)
H. Spend LESS than earn by under £1000 a year - 10% (358 votes)
I. Spend LESS than earn by between £1,000 and £2,499 a year - 9% (347 votes)
J. Spend LESS than earn by between £2,500 and £4,999 a year - 10% (384 votes)
K. Spend LESS than earn by between £5,000 and £9,999 a year - 7% (252 votes)
L. Spend LESS than earn by between £7,500 and £10,000 a year - 5% (176 votes)
M. Spend LESS than earn by over £10,000 a year - 11% (398 votes)
N. Can’t face doing a budget (if this is your answer… it time you did it! - ML) - 5% (205 votes)
Vote here or click reply to discuss below. Thanks :)

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Replies

  • harryhoundharryhound Forumite
    2.7K Posts
    The acid test is "can you put your hands on more money at the end of the year than at the start". If the answer to that is yes, you won't go bust in the next few months;)

    However life is very complex these days and the sort of accounting, that involves different jars of coins on the mantle piece, may have been good enough for out grandfathers or more probably grandmothers, but not now.

    Most of us own "capital" goods that are wearing out. The largest of these is probably the house and the most problematic is the car.
    So enough money has to be put to one side to repair or replace these items and renting them to avoid having a fund invested, is not usually the cheapest way of doing things.

    Then you need a contingency fund, you just never know when you might have an illness or be involved in an accident.

    And finally have you factored in Martin's recommended "Rule of 72" to allow for inflation (what ever that might be now that the government is pretending prices are not going up as fast as they self evidently are (Fuel for house and car plus council tax not to mention the mortgage???).

    No I don't do it properly either:o The only time I did the calculations in full, was when we had two little children and only one wage coming in. We actually had managed to end the year with more money than we started BUT BUT BUT when I sat down for a day, during the Xmas break to do the calculations, the hound household was heading South to the tune of several thousand pounds per year and real trouble would arrive in about 3 year's time. (Earlier if there was some sort of unforeseen problem). :eek:

    In some households it is difficult to explain that everything in the garden is not coming up roses, when there still seems to be an increasing amount of money in the bank.

    Ted Heath had a similar problem when he accused Margaret Thatcher of "selling the family silver" in order to put money in the bank. There really is a difference between Capital & Income, unfortunately all governments have a tendency to borrow from the future and waste the money on current consumption.
    Sub-prime mortgage anyone or do we solve the problem by increasing inflation?

    Harry.
  • A. Spend MORE than earn by over £10,000 a year - 5% (173 votes)

    O_O That is a lot !!
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