How much is reasonable to spend on holidays vs income ?

[holidayprince]

How do you calculate how much you can spend on holidays vs your monthly income for example ?

I'm having a debate with H about it and no matter how much we spend, for him, it's always a waste when it's spent on a holiday. He thinks is frivolous.

If you spend say half a monthly pay cheque on a holiday, is that too much ?

Do you save up a long time to go on holiday ?

Just wondering because to me it isn't money wasted to make memories with your family.

I know holidays are expensive but we have savings as well as investments and aren't spending more than half of what we make a month on a holiday, so I don't see a problem with having a nice time with your family once a year.

My DH has always been this way about holidays.

Not it’s not daft @JaydeeeeP. If I lost my job tmw who will pay my mortgage if I didn’t have savings or insurance? If I lose my house will I get a council house? In London, my hometown, unlikely?

@Beezknees true but many posters seem to think someone earning more isn’t impacted by this. I don’t begrudge you your holidays but I do see how it annoys some.

I came on to say yes I couldn't justify spending 6k a year on holidays. I just wouldn't feel comfortable with that. I am not living above my means. I just have to think about things like what would happen if we lose our jobs, higher education for DC, maybe a house deposit for them as they will likely have to pay extortionate rent otherwise. I suppose I look at long-term goals not short-term.

We do go on holidays but mainly camping and then short breaks and every few years abroad.

It's long term though. Long term the people earning a lot more will be better off than anyone getting benefits. Yes I can go on nice holidays that I take my DC on. However he won't have anything to inherit from me. I will have to work my whole life as I won't be able to afford to retire, I'll always have rent to pay. Unless I have a lottery win! And my UC will stop in 18 months when my DC turns 18 anyway. I've been and past the years of paying for childcare (which is the worst time imo).

what annoys me is it's creating a situation where some people who don't get copious child payments from ex partners struggle for essentials whilst working and claiming UC top ups ( or not working in some cases)

This is a problem created by worthless parents (usually fathers) who do not care enough to contribute to their children's upbringing. The same parents on whom the decision to not base UC on maintenance received is based, as you can't guarantee they won't leave their children hungry.

Are you a £100k plus household with no savings and no insurance? That's also daft.

@JaydeeeeP perhaps you need to actually read my posts..

@rewilded exactly!

They don't, otherwise they'd be signing up too. You're just being harassed for being able to afford more than the air you breathe whilst claiming UC.

This is absolute rubbish. She wouldn't need to reapply, because she can have up to £16k in savings before her claim is closed. The first £6k of savings is disregarded, then any savings between £6k and £16k are treated as if they give a monthly income of £4.35 for each £250 (or part of £250).

In general terms, I think half monthly earnings spent on holidays is too much.

I say this from a position of being close to retirement, owing 2 homes without mortgages and no debt at all (even credit cards are paid in full every month).

We spend less than 20% of our annual income on holidays. We do one big trip a year - last year was Fiji, this year is Hamilton Island but we eat out every week. DH is a bit of a homebody and prefers to go fishing with his mates and relax at home the rest of his holidays. I have more time available and love spending a few weekends a year with girlfriends. We book a hotel, a nice restaurant and catch a show. Even with all these outgoings, we won't come even close to 30% of our yearly income.

What's reasonable depend on personal circumstances. For DINKs in their 20s with a 6 figure income, it's probably reasonable. For a couple with 2 kids, a mortgage, nursery fees, plus bills, food etc, it'd be like you are coming from a different planet.

I've read them. I came on and said:

Someone coming on saying I couldn't afford a £6k holiday on our high tax salaries.....its just daft.

You said:

Not it’s not daft. If I lost my job tmw who will pay my mortgage if I didn’t have savings or insurance?

So because I was talking about high tax salaries (that means over £100k for a couple)...how come you're commenting about losing your job and paying your mortgage if you're not in the bracket I'm talking about? What's the point in comparing apples and pears?

I'd still end up having to spend it eventually and then reapply.

Agreed

The people who are on those 6 figure salaries work to get the money that they earn (and subsidize people like yous lifestyle) so yes they have every right to be proud and should not be made to feel bad because they have worked for it. You openly admitted you purposefully don't put money into your savings to avoid lowering your universal credit (in other words milking the system). You have nothing to be proud of.

The posters also works, and full-time too 🫢. Maybe we should blame her for not insisting her employer pays a decent living wage, that doesn't require government top-ups.

And what happens then? Employers have to pay employees more, therefore have to increase cost for product or service they are providing which therefore means said products and services are more expensive for everyone.

It's not as if we are talking about someone who can't put food on the table here. This is someone who openly admitted they spend 6k on holidays a year. That's hardly on the breadline is it? To have 6k of disposable income?

I also WORK full time.

Well there's the catch 22. Employers either need to pay more, or the UC system stays.

We like to travel, so do go away quite often.

We have a joint account, both our wages go into that account, then bills go out, we set aside money for essential spending (weekly grocery shopping, petrol, etc), with what is left we transfer some to our long term savings account and what is left is our spending money. Out of this spending money we spend at least 50% on holidays.

It depends on how much you have in savings, not on how much you earn imo.

If you don't have at least 3 months salary in savings then you shouldn't be going on any holidays. If you have six months salary in savings then spend away.

What happens is that the welfare system remains to plug the gap between low wages and affordable living, until such time as employers able able/made to pay decent wages. This might not be so difficult when the gap between the lowest and highest earners return to sensible levels.

For what it's worth, we don't know what she forgoes to save / afford holidays. Someone with her income will tell you they can't have a holiday because it's unaffordable, but they may drive a nice car, send their children to numerous clubs, pay for an extra shop to deliver to the foodhub... Some people can save something out of nothing, and credit to them.

UC has set awards and is paid based on individual circumstances. It is then up to her how she spend her household finances, as long as her child is not neglected.

40% of UC claimants are in work. They may not be on the breadline, but their wages are such that they qualify. And once her child is out of education, she no longer qualifies for UC, so may then end have vastly reduced circumstances.

Must admit, I was slightly surprised that someone can afford £6k (£500 per month) on holidays in that situation.

@Beezknees I too was taken aback by your post. On reflection I think it's the way you keep repeating that you're entitled to it that I find most challenging. It would be completely different if you'd described yourself as eligible.

I do not keep repeating it, I think I said that once!