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  • FIRST POST
    • Edenrose1
    • By Edenrose1 9th Aug 18, 9:01 AM
    • 13Posts
    • 4Thanks
    Edenrose1
    Money Left After bills - *New thread*
    • #1
    • 9th Aug 18, 9:01 AM
    Money Left After bills - *New thread* 9th Aug 18 at 9:01 AM
    Hello All,


    I could see old threads on this subject, but nothing new... I am keen to know what people / families manage on after bills, mortgage and essential items.


    We have a fairly good income / bills ratio. Just bought a new house - on paper we will be 200 a month better off...as we cleared unsecured credit cards and the childcare costs will end. However I do worry that we are stretching ourselves a bit... took a 5 year fixed, on a slightly higher rate, and less term...yikes... we will be mortgage free by 58 years old...


    After all essential bills and mortgage, school dinners (Not including travel and food ) we are left with approx 2,500 to 2,900 (depending if my husbands does overtime)


    Out of this we buy food, travel to work...I believe our shopping bills are approx. 750 a month (this includes clothes), fuel is approx. 600 a month as we both commute... so on paper we are left with 1,150 for 'fun money'...which we should be saving, but it soon goes...


    On top of this I get a bonus each year of 3000 *(after tax). This is used for a holiday...


    Running 2 cars and commuting seems very costly... we probably save approx. 400 a month give or take...however keen to hear from other families ... sometimes I worry that we have stretched ourselves by taking on this mortgage...even though each month we are 200 better off ..


    We are a family of 4 (2 adults and 1 teenager and 1 toddler)


    Just out of interest - how do other families make it work and what does your household budget look like....


    Thanks
Page 1
    • LandyAndy
    • By LandyAndy 9th Aug 18, 10:56 AM
    • 24,554 Posts
    • 51,798 Thanks
    LandyAndy
    • #2
    • 9th Aug 18, 10:56 AM
    • #2
    • 9th Aug 18, 10:56 AM
    Look at how much money I've got.
    • Pollycat
    • By Pollycat 9th Aug 18, 11:10 AM
    • 21,171 Posts
    • 57,113 Thanks
    Pollycat
    • #3
    • 9th Aug 18, 11:10 AM
    • #3
    • 9th Aug 18, 11:10 AM
    In general, I'm not sure how helpful knowing what other people's budget is as there's so many variables.



    Out of this we buy food, travel to work...I believe our shopping bills are approx. 750 a month (this includes clothes), fuel is approx. 600 a month as we both commute... so on paper we are left with 1,150 for 'fun money'...which we should be saving, but it soon goes...

    Thanks
    Originally posted by Edenrose1
    I'd say 750 per month on food for your family is pretty high.
    Have you ever watched Eat Well for Less?

    If you have over 1k for 'fun money' but don't appear to know where it goes, I'd say this is the first thing you need to get a handle on? (if you really want to, that is).
    • TBagpuss
    • By TBagpuss 9th Aug 18, 11:19 AM
    • 6,959 Posts
    • 9,182 Thanks
    TBagpuss
    • #4
    • 9th Aug 18, 11:19 AM
    • #4
    • 9th Aug 18, 11:19 AM
    1,150 a month 'fun money' doesn't sound remotely 'stretched' to me.
    Have you included things such as pension contributions and savings in your 'essential bills'? If not, I'd suggest doing so.

    If you think of the surplus as fun money' it's easy to fritter it away, if you make a commitment to save and set it up to go out automatically like any other bill, it's harder for it to 'just go'
    Last edited by TBagpuss; 09-08-2018 at 11:24 AM.
    • Primrose
    • By Primrose 9th Aug 18, 11:32 AM
    • 8,439 Posts
    • 29,650 Thanks
    Primrose
    • #5
    • 9th Aug 18, 11:32 AM
    • #5
    • 9th Aug 18, 11:32 AM
    What are you doing with your spare 200 a month if you're feeling that yiu might have overstretched yourself with the mortgage.
    Should you be using some of it to create a untouchable emergency fund, or indeed using some of it to reduce your mortgage every month?
    Life has a ha it do throwing the unexpected at us when we are least prepared for it so having that money out aside or being used to reduce your o going mortgage debt isat least making some provision for the future.

    But set up a monthly standing order for that purposes. Spare cash has a nasty habit of disappearing without being accounted for
    Last edited by Primrose; 09-08-2018 at 11:34 AM.
    • getmore4less
    • By getmore4less 9th Aug 18, 1:21 PM
    • 33,583 Posts
    • 20,313 Thanks
    getmore4less
    • #6
    • 9th Aug 18, 1:21 PM
    • #6
    • 9th Aug 18, 1:21 PM
    You need to start doing proper budgets, that's a plan of where you want your money to go.

    Then track where it really goes and iterate till you get it right.

    You don't know where 15k+ a years is going finding out would be a good start.
    Once you know that you can plan better.
    • takman
    • By takman 9th Aug 18, 2:42 PM
    • 3,786 Posts
    • 3,450 Thanks
    takman
    • #7
    • 9th Aug 18, 2:42 PM
    • #7
    • 9th Aug 18, 2:42 PM
    Hello All,


    I could see old threads on this subject, but nothing new... I am keen to know what people / families manage on after bills, mortgage and essential items.


    We have a fairly good income / bills ratio. Just bought a new house - on paper we will be 200 a month better off...as we cleared unsecured credit cards and the childcare costs will end. However I do worry that we are stretching ourselves a bit... took a 5 year fixed, on a slightly higher rate, and less term...yikes... we will be mortgage free by 58 years old...


    After all essential bills and mortgage, school dinners (Not including travel and food ) we are left with approx 2,500 to 2,900 (depending if my husbands does overtime)


    Out of this we buy food, travel to work...I believe our shopping bills are approx. 750 a month (this includes clothes), fuel is approx. 600 a month as we both commute... so on paper we are left with 1,150 for 'fun money'...which we should be saving, but it soon goes...


    On top of this I get a bonus each year of 3000 *(after tax). This is used for a holiday...


    Running 2 cars and commuting seems very costly... we probably save approx. 400 a month give or take...however keen to hear from other families ... sometimes I worry that we have stretched ourselves by taking on this mortgage...even though each month we are 200 better off ..


    We are a family of 4 (2 adults and 1 teenager and 1 toddler)


    Just out of interest - how do other families make it work and what does your household budget look like....


    Thanks
    Originally posted by Edenrose1
    Like others have said you need to do a proper budget and work out exactly how much you are spending each month and where it is going so you know exactly how much you have left.

    Do you put away an amount each month to cover car and house maintenance and the eventual replacement repairs of items in your house such as TV, washing machine etc?.
    You need to make sure you have this money saved each month before it's considered "fun money".
    • mikeeboy
    • By mikeeboy 9th Aug 18, 2:49 PM
    • 150 Posts
    • 91 Thanks
    mikeeboy
    • #8
    • 9th Aug 18, 2:49 PM
    • #8
    • 9th Aug 18, 2:49 PM
    If you've got 1150 'spare' money each month, I suspect you are in a significantly better position than lots of other people.
    • Robin9
    • By Robin9 9th Aug 18, 2:50 PM
    • 3,359 Posts
    • 2,188 Thanks
    Robin9
    • #9
    • 9th Aug 18, 2:50 PM
    • #9
    • 9th Aug 18, 2:50 PM
    Do a by diary for a month - record every single thing you buy- every cup of coffee, every newspaper, every you put in a charity box, your teenagers pocket money

    Go through all the annual bills - the car tax, insurance, holiday money and all those that come at varying times - the council tax, water rates, school bits and bobs

    Everything
    Never pay on an estimated bill
    • Rubik
    • By Rubik 9th Aug 18, 3:09 PM
    • 298 Posts
    • 617 Thanks
    Rubik
    After all essential bills and mortgage, school dinners (Not including travel and food ) we are left with approx 2,500 to 2,900 (depending if my husbands does overtime)
    Your "left over" money is slightly more than our joint income before we've even paid anything.

    As others have said, do a proper monthly budget, on a spreadsheet. Add in each and every purchase (even if it's just a coffee in the morning from Pret) - you may be surprised at where you're leaking money. Check all your direct debits and give them a spring clean. Switch supermarkets - Aldi is excellent.
    • NaughtiusMaximus
    • By NaughtiusMaximus 9th Aug 18, 3:09 PM
    • 1,391 Posts
    • 3,406 Thanks
    NaughtiusMaximus
    If you've got 1150 'spare' money each month, I suspect you are in a significantly better position than lots of other people.
    Originally posted by mikeeboy
    Significantly better than the vast majority I would say. Based on what the OP has said I'd be surprised if
    they're not in the top 10% of household incomes:



    https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2017
    • chelseablue
    • By chelseablue 9th Aug 18, 5:02 PM
    • 2,651 Posts
    • 3,076 Thanks
    chelseablue
    I would look at your grocery spend, how much of the 750 is clothes?

    We're a family of 3 (2 adults and a 4 year old) and I spend about 240 a month on food in Aldi. That includes all dinners, my husbands packed lunch for work, cleaning stuff and toiletries
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • Pollycat
    • By Pollycat 9th Aug 18, 5:52 PM
    • 21,171 Posts
    • 57,113 Thanks
    Pollycat
    I would look at your grocery spend, how much of the 750 is clothes?

    We're a family of 3 (2 adults and a 4 year old) and I spend about 240 a month on food in Aldi. That includes all dinners, my husbands packed lunch for work, cleaning stuff and toiletries
    Originally posted by chelseablue
    TBH, I've never known anyone lump clothes spend in with groceries.
    • calleyw
    • By calleyw 10th Aug 18, 1:22 PM
    • 8,926 Posts
    • 16,287 Thanks
    calleyw
    TBH, I've never known anyone lump clothes spend in with groceries.
    Originally posted by Pollycat



    Because like a lot of people they buy clothes at the same time they do their grocery shopping so never separate it out!!!!




    Yours




    Calley x
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
    • getmore4less
    • By getmore4less 10th Aug 18, 1:45 PM
    • 33,583 Posts
    • 20,313 Thanks
    getmore4less
    TBH, I've never known anyone lump clothes spend in with groceries.
    Originally posted by Pollycat

    If you budget you generally don't depending on what categories you settle on.

    I used to split the traditional "groceries" category into food, alcohol, household, personal...

    for a while I had a subcategory of food, meat.

    food was also a subcategory of all food, which included the groceries, takeaways, meals out,


    If you just guess where your money is going without a plan all sorts of grouping can happen.


    It is an easy trap to get into because without a plan you tend to use up all your cash one way or another and then run short when something new(because you don't plan) needs some cash.


    reading between the lines the past has not been good.
    Just bought a new house - on paper we will be 200 a month better off...as we cleared unsecured credit cards and the childcare costs will end.
    given this was also said
    on a slightly higher rate, and less term.
    Shortening the term on the mortgage without a proper plan is often not the smartest move neither is consolidating debt.

    Love to see what the numbers were that now give 200pm less(on paper!).
    • marliepanda
    • By marliepanda 10th Aug 18, 2:25 PM
    • 6,896 Posts
    • 15,037 Thanks
    marliepanda

    Shortening the term on the mortgage without a proper plan is often not the smartest move neither is consolidating debt.

    Love to see what the numbers were that now give 200pm less(on paper!).
    Originally posted by getmore4less
    From their other posts they are with a sub prime lender due to crap credit.
    • getmore4less
    • By getmore4less 10th Aug 18, 2:27 PM
    • 33,583 Posts
    • 20,313 Thanks
    getmore4less
    These guys are in the 100k+ joint income bracket.

    Take home will be around 6k,(depending on pension contributions)

    After all essential bills and mortgage, school dinners (Not including travel and food ) we are left with approx 2,500 to 2,900 (depending if my husbands does overtime)
    That makes mortgage and bills around 3k

    Another post said mortgage around 400k looks like a rate over 3.5% so say 2kpm mortgage, leaving 1k for other bills which is loads

    There maybe some non essentials in that list of bills.

    I suspect they are haemorrhaging money all over the place and could save a load with ease with simple changes they won't even notice on lifestyle.


    Perhaps a case for a SOA on the debtfreewanabee to highlight where the choices are for reducing the wasted spending.

    (my previous post mentioned the shorter term it may have just been left at the same length rather than extended for the new one)
    • Pollycat
    • By Pollycat 11th Aug 18, 7:49 AM
    • 21,171 Posts
    • 57,113 Thanks
    Pollycat
    Because like a lot of people they buy clothes at the same time they do their grocery shopping so never separate it out!!!!
    Originally posted by calleyw
    Then no wonder the OP hasn't got a handle on her family finances.
    She could be spending 500 per month on clothes and only 250 on food.


    I suspect they are haemorrhaging money all over the place and could save a load with ease with simple changes they won't even notice on lifestyle.

    Perhaps a case for a SOA on the debtfreewanabee to highlight where the choices are for reducing the wasted spending.
    Originally posted by getmore4less
    I agree 100% with this.


    I think the SOA (statement of accounts) suggestion is a very good.
    I notice the OP has posted the same thing on the Mums board but I doubt if that's the best place to get good advice about where to all this 'wasted' money is going.

    Here is the link to the SOA:
    http://www.stoozing.com/calculator/soa.php

    If nothing else, it should give the OP an indication of what categories she should be splitting her expenditure into.
    And once completed, it should show just how much money is left over at the end of all the bills.
    • PasturesNew
    • By PasturesNew 11th Aug 18, 7:54 AM
    • 65,220 Posts
    • 382,746 Thanks
    PasturesNew
    In the main, comparing money "after bills" automatically makes any comparison a nonsense... because bills are so variable and might be the issue.

    Places that measure poverty look at the figure "after housing costs", where housing costs are limited to mortgage/rent and council tax.

    If one had, say, 1000/month "after housing costs" one'd be "rolling in it" - but if one were to spend the OP's 750 on food and left with 250/month it'd look like one had to be a bit careful.... whereas the actual problem is hidden within the bills and would be that extraordinarily high food bill being hidden as the problem.

    The word "bills" is too variable as to what's included/not - and how much is spent on each.

    Stick to "after housing costs" and it's clear how much money's actually available.
    • Tabbytabitha
    • By Tabbytabitha 11th Aug 18, 9:34 AM
    • 4,383 Posts
    • 6,976 Thanks
    Tabbytabitha
    In the main, comparing money "after bills" automatically makes any comparison a nonsense... because bills are so variable and might be the issue.

    Places that measure poverty look at the figure "after housing costs", where housing costs are limited to mortgage/rent and council tax.

    If one had, say, 1000/month "after housing costs" one'd be "rolling in it" - but if one were to spend the OP's 750 on food and left with 250/month it'd look like one had to be a bit careful.... whereas the actual problem is hidden within the bills and would be that extraordinarily high food bill being hidden as the problem.

    The word "bills" is too variable as to what's included/not - and how much is spent on each.

    Stick to "after housing costs" and it's clear how much money's actually available.
    Originally posted by PasturesNew
    For an individual perhaps, certainly not for a family!
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