What percentage of monthly wage is high for disposable income?

[anonymous35645]

Trying to figure out if I'm in a very lucky situation here or if this is common. I'm not asking salary numbers or anything but as a percentage of income that is fully disposable, is this too high?

My monthly take home is a bit over £3100 and my outgoings for mortgage, bills, my direct debits (eg gym phone subscriptions pet insurance etc) and my food shop is around £600. So I've got around £2500 or 80% ish of my take home pay per month as disposable income.

For full disclosure I pay a small amount towards our mortgage. My partner covers all bills and has more leftover than I do, but should I be contributing more, or should we start overpaying our mortgage? I mostly save my leftover money for holidays, eating out and bits around the house or hobbies, or I spend it on friends and family. I'm wondering if I should get a buy to let, invest it or just overpay our mortgage?

And I know I might get a few sassy responses here, I appreciate compared to some I am in a fortunate situation, but I know lots of people who always have the flashiest house, car, labelled everything and this isn't me nor is it who I desire to be - just trying to make a sensible decision and not fritter my money away.

Just for clarity, I know how much I pay into a pension, I know how much my company pays (and it changes in how much you put in, so it’s worth finding out). My partner and I don’t like being the centre of attention, we got married just the two of us, no friends or family. I didn’t change my name, as like you I got married later in life and have always had my name and so had he. We bought a house equally, we both know how much savings we have. It’s not complicated, I think you’re definitely over complicating things.

OP, it does sound like you are sleepwalking. Surely you know you can have a registry wedding and you don't have to change your name. I assume you have a responsible job but it sounds like you have been living under a rock.

Could it be denial? Not wanting to have THE difficult conversation with your partner?

The reason I don't know the pension amount is because I've been in the job 5 minutes and been having issues with our online portal that stores payslips etc, and the pension documentation. I knew when I opted in or whatever but it went in one ear and out the other as I don't pay too much attention to pension (I also have a family pension I get at a certain age which I can't go into for privacy reasons, so a pension isn't a huge concern to me). My partners pension is a final salary one - I'm not expecting to be entitled to it though.

Yes I am 'in the dark' when it comes to our finances because I take care of other things and our relationship is strong. I don't think I'm the only one in that sense. I still earn my own money, have a proper career and am here asking for advice so that I can try and make the best decision going forwards.

I do have conversations with my partner about this stuff and he tells me not to worry about it. I have anxiety and I'm new to the role so don't have a redundancy buffer built up yet like I did in my previous job. I told him I was worried about this and he told me not to be and that he had enough to support me financially for a good year if the worst were to happen.

I'm just secure in my home life so haven't paid attention. I'm not planning to leave and hopefully neither is he but I know I can't assume that won't change, that would be the naive part.

But I'm fortunate to not have to worry about finances (and have a lot of other stuff on my plate I do need to worry about) so yes I admit I'm not all over it right now.

The marriage thing wasn't ever in my head, but from taking advice here that it might be a sensible thing to do for if something were to happen to me.

and yes I know I could have a registry office wedding but wouldn't want that. I'd want to elope somewhere and make an experience of it.

I know I don't HAVE to change my name too, but in reality most do

To answer your OP, if you are not married, then save as much as you can for yourself. Don't count on your partner being around. The only time you can relax on the financial front and use your spare cash for spends is if you are married and do not have dcs.

Not true about most women changing the name. For professional women anyway.

It is fine you have not thought about marriage. It does not sound you have thought deeply about it.

I don't like being the centre of attention either, but it would have broken my father's heart not to walk me down the aisle. If that isn't an issue for you, then elope to Gretna Green or Las Vegas and stay in a swanky hotel that will organise it for you. Marriage gets tied up with romance and philosophising about patriarchal social constructs, but it is just a legal recognition of a relationship that makes you one family instead of cohabiters. It means that if one of you is seriously ill then the doctors will talk to the other instead of treating you like a random acquaintance. It means that if one of you dies then the other won't find the in-laws taking charge of the funeral arrangements. It also makes probate a whole lot easier and more tax efficient. Gay people fought for these legal rights for decades for good reason. I am always slightly mystified by people who don't want to take advantage of them.

Definitely overpay mortgage, no point having debt if you have money sitting in the bank. If the 30% payrise is already more than you need then I'd say act like this didn't even get it and increase mortgage. Your future self will thank you 😊

New to mumsnet, liking the content and nice to see a community spirit on here :) I actively searched for a subject on disposable income and found this. Myself, my wife and 18 month old son are currently in a very fortunate financial situation - both working full time, household income of around £72k with no mortgage (due in part because we both had our own houses before we met and wife lost her dad at 14 and so had a small inheritance). We sold her house and stuck it all on my house, but I live in what some may describe as a less than desirable area, a council estate in Cardiff (though I don’t have any major issues with it having grown up here but appreciate it’s a lot different now and is not the area i knew as a kid and therefore we don’t want my son growing up here plus my wife has never really liked it having never lived on an estate before Christmas).

Anyway, we decided to sell up and move to a nicer area in Cardiff which as many will gather comes at a premium and we’ll no longer be mortgage free and will be paying over £1000 a month in mortgage plus more council tax etc. this will massively erode our disposable income to about £1200 after all bills and we give each other £200 each “pocket money” a month so it means we have around £800 to save or spend on unexpected things etc.

I consider that decent I guess (having never been in a position not that long ago where I had no savings or disposable income and was in a fair bit of debt). I read a lot on here though where people have multiple £1000’s in disposable income… that’d be a dream!

Anyway, that’s my contribution… I consider myself lucky either way and money doesn’t really float my boat outside of me being able to meet the essential costs of life which I’ve always been able to do