How much disposable income?

truescot

Looking for thoughts to help my decision making. How much do people reckon is a reasonable monthly disposable income for a couple in mid thirties with a 2 year old child? By disposable income I mean money left when mortgage, council tax, insurances, utilities, savings, loans, shopping and fuel are taken out. So in other words for non essentials, although occasional car servicing etc would have to come out.

We are moving house and going from not having to worry about money to really looking at what we spend and the only thing which isn't set in stone is disposable income. Don't know where to start so looking for ideas of figures. I realise its a personal thing but would be interested anyway.

Ta.

Alikay

Maybe around £100 - £200 a month? Depends if there is any opportunity for extra earnings when unexpected bills arrive. We don't have much disposable income, but I don't have a permanent job...so when the boiler broke a few months back I did a few weeks of temping to raise the money. If my wages were already taken into account in the family budget we'd have to build in more money as a buffer. Also depends on how much you're saving, and what the savings are for...ie if it's long-term such as for uni or school fees or more of an emergency/rainy day fund.

belfastgirl23

I'm a bit confused by the question. To me disposable income is salary or wages minus essential spending (ie all your direct debits plus car stuff and food spending, maybe petrol as well depending). At the minute I have around £400 a month at my disposal, although this does include basically all non-household spending, eg gifts, clothes, makeup, petrol etc. I could def trim another £100 off it if I had to fairly easily. But this is a comfortable level for me and allows me to save a little. I can't speak for DH since he is self-employed so doesn't have such a clear idea - one month it's expensive meals out, the next he doesn't go out for coffee

Does this answer the question?

Glen0000

We have around £400 a month left over and to be honest we struggle. Birthdays, Christmas, school trips, clothes, holidays, a night out or two, it all adds up.

I am sure we could manage on less, but I wouldn't want to. £100 a week does not go far.

patchwork_cat

We put, ideally, £100 pm into a clothes fund, £75 pm into Christmas and have about £50 pw after main supermarket shop - this includes top up shops and other things like cat litter, cat food etc. I say an ideal world as we are a bit skint since our mortgage renewal last October and are waiting on this years less than inflation! pay rise due last April.

We haven't had a holiday in 8 years.

At the moment all we are managing is £31 into Christmas- which covers birthdays etc.too, £41 into clothes and £40 per week after supermarket which also has to cover DD's tutor at £10 week.
We have 2 children 10 and 15, so a bit different, but gives you an idea.

Bargain_Rzl

truescot wrote: »

Looking for thoughts to help my decision making. How much do people reckon is a reasonable monthly disposable income for a couple in mid thirties with a 2 year old child? By disposable income I mean money left when mortgage, council tax, insurances, utilities, savings, loans, shopping and fuel are taken out. So in other words for non essentials, although occasional car servicing etc would have to come out.

The items I've highlighted above are things I would be inclined to leave out of a calculation of "essentials".

Utilities is a borderline one because although there are often savings to be made (cheaper phone deals, less gas/leccy usage etc), you do still need to pay something for them.

Shopping and fuel are not fixed amounts and you can spend as much or as little upon them as you need/want/can. So I would be inclined to count these as a deduction from my disposable income rather than my essential costs (except fuel to travel to work, if that's the only way of doing so).

Savings - again, for me that's definitely a disposable income item. Don't get me wrong, I consider savings to be an essential, but savings can be £5 a month or £500 a month...

Having said all that, I don't know the answer to your question

miserly_mum

Our income is OH wages , Tax Credits and Child Benefit. After we pay all basic monthly bills we have about £880 left.

Mortgage (Very small one as we bought our council house with discount)
Groceries (includes food, nappies, toiletries and cleaning products)
Electricity
Car Insurance
Petrol
Life Insurance
OH lunches in work
Sky
TalkTalk (free Broadband)
£1 a day savings for Xmas
TV licence
X amount towards Home heating oil when its needed

It sounds a lot but all entertainment, clothes, stuff for the house, holidays and pressies have to come out it. We are 2 adults and 3 boys 11,8 and 2

We are fortunate not to have any debt and have a few thousand in savings and a free £1000 overdraft incase of a real financial emergency.

We do have a set budget for food and work lunches.The DD are the same each month and electric, petrol and phone bill are more or less the same give or take a fiver or so.

happyhappygal

This will help:

http://www.moneysavingexpert.com/banking/Budget-planning

Its fabulous!!

bertiebots

I always think of disposable income in terms of what you have left when you have paid for everything else. You need to look at what you spend on leisure activities,holidays, family days ,clothes and and try to find an average monthly figure. This will give you an idea of what your family needs each month if your financial situation is going to change. Have you done your money makeover to see where you could save on utility bills etc.You may have a bigger income than you thought!

miserly_mum

bertiebots wrote: »

Have you done your money makeover to see where you could save on utility bills etc.You may have a bigger income than you thought!

I agree with bertiebots. Sometimes theres nothing we can do to increase our income but there are many ways to decrease our out goings. Although i'm sure the OP is already doing so if shes an MSE member.

I'm a miserly old coot but just when I think i've got everything as low as possible I find some new way to save money.

Just because a certain company was say cheaper for your car insurance last year doesn't mean it will be this year and so on.

Although as far as disposible income is concerned, if we are able to pay all the bills,run the car sort the kids out with what they need and still have enough for a few bottles of wine and the odd night out i'm more than happy.

This is coming from someone who in years past used to have to poke about down the back of sofas at times to try to make up the price of a loaf or a pint of milk. Been there done that and if being as tight as a virgins whatsit with money means I never have to do that again then thats what i'll keep on doing.

truescot

THanks for the comments so far...

The reason I am asking is that we have a take-home pay of roughly £2500 a month(as my wife works very part time to look after our son). the maximum mortgage the bank will lend us (155k) would work out as monthly payments of up to £1100 depending on deals. Our direct debits amount to £430 and we save £200. We are about £400 a month on shopping and £200 on fuel for work/leisure. This leaves us £170 per month on other stuff, which we think is a pittance, but it's hard to work out what we actually spend, as up to now we have had about £800 but tended to spend without thinking bad I know!). We know we could save less but think that it is good to have holiday money etc. Also have £1500 overdraft facility between 3 accounts.

Finding all the comments REALLY useful. Who needs a financial advisor.