How much spare cash?

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  • lazer-zxr
    lazer-zxr Posts: 446 Forumite
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    rich81 wrote: »
    When I posted this thread I was just trying to gauge the amount of money that people had left over after bills and essential spending.

    Ok, so after minimum debt repayments and essentials, no savings etc,

    We have spare £2788 / month
  • EssexHebridean
    EssexHebridean Posts: 21,372 Forumite
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    rich81 wrote: »
    When I posted this thread I was just trying to gauge the amount of money that people had left over after bills and essential spending. I suppose that I consider any cash that goes into savings as 'spare' as this is money that could be used elsewhere. I am not sure if I was unclear in my initial post or whether people just like to split hairs??

    A combination of things I would say - you weren't terribly clear on your reasons for asking, and it's not unheard of to get journalists "fishing" for stories on these boards - hence those of us that have been around a few years can be a tad suspicious of those who arrive, ask lots of questions without ever explaining their reasons (applying information to their own circumstances, assisting a family member etc). Hopefully that clarifies?

    In honesty, I'd say that pretty much everyone who replies to this would have a different definition of "spare" according to their own situations. I'm broadly like Lazer in that I don't consider any money to be "spare" as it all gets allocated somewhere.
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  • Helvetica_Van_Buren
    Helvetica_Van_Buren Posts: 270 Forumite
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    lazer-zxr wrote: »
    Can you please ellaborate.
    All of my money is put to use, 100% of it. Be that monthly expenses, annual expenses, debt repayment or savings. Everything is accounted for, and so zero is left over. A job for every penny.

    I misread your post and submitted my reply before elaborating on what I thought I'd read. Having re-read it I do agree with your allocation.
  • Ashingtonian
    Ashingtonian Posts: 137 Forumite
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    About £200 a month which I am currently diverting to overpay on the mortgage.
    Current MFD 1st July 2026

    Target MFD 1st April 2023
  • hohum
    hohum Posts: 476 Forumite
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    OP, you might be interested in looking up a book called 'All Your Worth' by Elizabeth Warren, or having a look online. It's American but, probably can be transposed. She works out that ideally you'd look to having 50% of your expenses on needs, 30% wants and 20% savings. It also means looking at what your needs, and wants are! Obviously if you have debts, your 20% savings rate might be debt pay off.

    I haven't set up our budget in that way, but I'd estimate that our 'musts' do indeed take up roughly half our income. We couldn't live on musts only long term, as that would mean ignoring annual bills, maintenance, employment expenses etc etc. But we probably have £1000 a month going into stuff that isn't 'must right now'. Probably the closest to 'spare' is our discretionary fun money: £300 of that £1000, between 2 adults a month.
  • Sanctioned_Parts_List
    Sanctioned_Parts_List Posts: 491 Forumite
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    According to the computer, for any given 12 months, I save roughly 35% of income (split between actual savings and repaying my last remaining debt), although that's without being particularly frugal. I'm pretty sure we can prune that to get a 50% savings rate... and then I'll be able to retire before I'm 50 :D
  • datlex
    datlex Posts: 2,239 Forumite
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    As I am paid weekly, I allow myself £130 a week, after bills (incl loan payment/ bus travel on season ticket) and savings funds. I use the £130 for taxis, food, toiletries, entertainment. (any thing left over at end of week goes to savings).
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • Penguin8410
    Penguin8410 Posts: 96 Forumite
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    i have just redone my budget and i have between £85 and £100 a month to myself after everything else has come out
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    Not sure how useful this exercise is as surely most people tend to adjust their living expenses to income but ours is as follows. We are coming up to retirement so it will change in the next 6 months to a year.

    £600 on essentials - utilities, food, work travel costs, insurances, broadband,landline and mobiles

    £1000 on discretionary spend - personal spends for OH and me, car/house savings pot, holiday savings pot, gifts pot

    £1500 + to long term saving for early retirement pot. Soon to be abandoned as retirement now approaching and income drops.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • theoretica
    theoretica Posts: 12,306 Forumite
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    hohum wrote: »
    She works out that ideally you'd look to having 50% of your expenses on needs, 30% wants and 20% savings.

    I find this sort of division guide unhelpful as a personal guide - my 'needs' are fairly fixed and won't increase just because my income does, until something huge happens like moving house. And they are needs so I can't decrease them if income falls.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
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