WWYD with £2000 a month

[Snoods]

Posting in chat for a few more responses.

Our financial situation is due to change soon, and I know we are all different how we live and prices where we live, but I would like other people’s opinions.

If as a couple you had £2000 a month to cover food, going out, clothes, yearly holiday savings and long term or emergency savings, how would you split it? So the mortgage, work pensions, all other bills such as council tax and mobile phones, plus petrol are covered and not in this £2000.

Thank you

I'd open savings accounts for each thing that money is for.

So acct 1- clothes
Acct 2 - food
Acct 3- holidays.

I'd go over the bank statements for the last year and see how much you spend on food on average per month and out that amount each month into the food account. Then decide how to split the rest. I'd probably have an additional account where I saved enough to give a 3 month buffer on bills if ever you need it.

Then the next account I'd be paying the most into is the holiday account.

But, have you considered over paying the mortgage a bit? And general savings accounts don't give you any interest, so if the amounts become significant, of be looking at ISAs for some of it.

Thank you. The mortgage is something we need to look at. As in speak to the lender about making over payments.

I started off doing this and immediately came to the conclusion the answer has to be very individual. I don't go on holiday that much - I like shared weekends with groups of friends 2 or 3 times a year. I don't spend that much on clothes though shoes really adds up as I buy new trainers often, and its still more than you'd think. I eat out a bit, which costs a ton, and I go to the theatre and pay for gallery subscriptions.

Work out your long term financial goals, set the long term savings amount you need, and go from there. And don't forget income and life insurance, and Christmas.

£500 savings longterm
£500 emergency fund short term savings to cover car stuff, house. repairs, domestic appliance etc
£400 food to include all cleaning stuff alcohol etc
£150 holidays
£150 going out
£100 clothes
£50 dentists, hairdressers
£50 christmas, birthdays
£100'personal spends

This is what I'd want to cover but if course you can change the amounts

Overpay mortgage
Get amazing private health insurance for all the family incl dental
Pay into pension pots
ISAs for kids
Save £500 a month for holidays/days out/emergencies

@Snoods

Posting in chat for a few more responses.

Our financial situation is due to change soon, and I know we are all different how we live and prices where we live, but I would like other people’s opinions.

If as a couple you had £2000 a month to cover food, going out, clothes, yearly holiday savings and long term or emergency savings, how would you split it? So the mortgage, work pensions, all other bills such as council tax and mobile phones, plus petrol are covered and not in this £2000.

Thank you

I have nearly double this and invest most of it and save the rest.

Thank you everyone. These are helpful

The biggest variable for me is whether you think children might be on the horizon and if so what sort of timeframe. Also whether you are planning to stay in your current house for the medium-long term.

£1000 split between savings and mortgage overpayment (I'd use the savings for holidays)

£500 food (inc takeaways/meals out)
£250 each to you and dh to cover own clothes/hair etc.

We have 1 DC who is now an adult. We will be staying in our current home long term.

I think then it’s probably about retirement planning and whether you would want to stop work before pensions are likely to kick in abs then also how much longer you’ve got to pay off the mortgage.

Thank you. I am hoping I can always work, at least part time. But reading the comments it does seem overpaying the mortgage when we can would be a good option. Thanks all