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Why if we brought in 40k last year can we not afford a holiday ?

(168 Posts)
Lonelybunny Wed 12-Jun-13 17:32:31

I can't believe after looking at p60's we brought in 40k where does the money go exactly? We have 3 dc under 8 no child care costs we rent but seriously I can't afford to save ? I must b doing something wrong seriously !?

expatinscotland Wed 12-Jun-13 17:33:47

High rent?

Lonelybunny Wed 12-Jun-13 17:37:44

£675 pm ? Not too high? What are we doing !?!?

50shadesofbrown Wed 12-Jun-13 17:38:07

Have you looked at your total expenditures for the year? It's very easy to let little expenses, coffee, taxis etc mount up, £50 plus a month is common even on a below average income.

FruitSaladIsNotPudding Wed 12-Jun-13 17:38:47

You don't have to be doing anything wrong. If you live in se and have three dcs 40k would disappear pretty quickly.

helenaconhambarter Wed 12-Jun-13 17:40:14

When you say "brought in" are you referring to net or gross income?

FoundAChopinLizt Wed 12-Jun-13 17:42:04

Monthly supermarket spend? Food plus toiletries, washing powder, etc?

Clothes budget?


You need to break it down, then you'll see where you can save.

How about a cheap holiday? House swap, camping, visit relatives/friends.

NotDead Wed 12-Jun-13 17:44:53

one word. Monsoon

Bluecarrot Wed 12-Jun-13 17:47:04

If you look on money saving expert website they have a budget planner to help you work out where your money goes.

I helped a friend do it and it made her realised she spent £3k a year on hairdressers and salons. She felt sick and worked out how to cut back on it immediately, along with other areas and instead put the amount into a savings account ( the day after payday, by direct debit) and also put an any she had left the day before the next payday, instead of shopping spree. She didn't look for a year and was estatic to find she had £11k. shock with virtually no effort.

Lonelybunny Wed 12-Jun-13 17:48:14

Lol nope not monsoon ! We don't go out that often , rarely have take ours , shop at asda , but we do live in the SE !

Mintyy Wed 12-Jun-13 17:50:33

We would not be able to afford a holiday either if our joint income was £40,000 - and our mortgage is not much more than your rent. And we only have two children. Things are very expensive, that amount of money just doesn't go very far sad.

Flicktheswitch Wed 12-Jun-13 17:51:58

Message withdrawn at poster's request.

BackforGood Wed 12-Jun-13 17:56:14

depends what you mean by "a holiday" too. People have different expectations.
I'm regularly stunned at what some people spend on things that we just wouldn't have the available cash for though, so I suppose it's about looking where each month's money does go.

GibberTheMonkey Wed 12-Jun-13 17:59:33

Is that gross or net to start?

I do think your income is high enough for some treats and if that means saving £150 a month towards a holiday you could do it. Spreadsheet time methinks smile

Smudging Wed 12-Jun-13 18:01:11

Message withdrawn at poster's request.

smokinaces Wed 12-Jun-13 18:03:28

What kind of holiday though? Surely you can afford four nights at pontins for £200?!

WarmAndSunny Wed 12-Jun-13 18:05:50

We bring in 40k before tax. 2 kids and not child care. We haven't managed a holiday as such but have done weekends away to cities. Your rent is twice our mortgage though, but we stay in the sticks.

Lavenderandroses Wed 12-Jun-13 18:06:05

I hope this doesn't come across the wrong way, but I your household income is 40k and you have three children, it's not a massive in come.

As others have mentioned, budgeting is the only way forward. Have a direct debit into a savings account for holidays.

Lonelybunny Wed 12-Jun-13 18:06:36

I'm going on the p60 amounts ? For the year ? I've just bought a bike to save on petrol ? I go over drawn each month sad I was thinking a holiday to Spain all inclusive , am I being stoopid ?

Alibabaandthe40nappies Wed 12-Jun-13 18:09:25

Our mortgage is about the same as your rent, we have two children and we couldn't afford a holiday if our income was £40k either pre or post tax.

MrsDeVere Wed 12-Jun-13 18:09:52

Message withdrawn at poster's request.

50shadesofbrown Wed 12-Jun-13 18:09:57

Wow I am glad I don't live in the SE. DH, DD & I live on my salary which is about half of yours. We don't have (or need) a car though so that's a massive expense we don't have.

Look at a few bank statements. Go through, figure out how much you spend in an average month on groceries, clothes, hair & nails etc, car expenses, utilities, credit or store cards, any other direct debts. List all regular payments. Figure out what you're spending the rest of the money on that's not a regular/essential payment. We did this & I was mortified to realise how much we were wasting, given that I was on maternity leave at the time. We sorted out our spending & our finances have really improved.

Hope you figure something out.

scarlettsmummy2 Wed 12-Jun-13 18:10:54

40k isn't a particularly high salary, so I wouldn't be overly shocked not to afford a holiday. Just try your best to save.

lucidlady Wed 12-Jun-13 18:11:09

The P60 number is your gross income. What you actually bring in is that number less the tax. That will probably be quite a bit less than £40K.

Alibabaandthe40nappies Wed 12-Jun-13 18:11:20

OP you have to think about the costs and where the money is coming from. If you are overdrawn every month then no you can't afford it.

All inclusive in Spain for 5 of you in the summer is going to be, I don't know - £2.5k? You need to save £200 a month to afford that, plus a bit for spending money. Can you start to put that away now so that you are in a position to book something for next summer?

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