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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To wonder why it feels like we have no money?

325 replies

Wheredoesitgo · 20/01/2025 19:53

DH and I earn well between us. We aren’t mega wealthy or even close but we should be very comfortable and I just feel like we aren’t.

I just feel like we have no money? DH is self employed and had a tough few months last year and the tax return coming up isn’t helping but even month to month my earnings just seem to disappear with not a lot to show for it…

Would love to go away (2 primary school aged DC) but a week in Spain in July (just before school holidays by a few days to try and reduce the pride a bit!) is coming in at around £1100 plus each for a week AI (we spend less this way with the kids than self catering usually as they are fussy). They need spring/summer wardrobes but feel like I can’t really buy new and can only afford bundles on Vinted which I never find exactly what I want.

I dread the food shop as there’s just no way to get it cheaper.

I’d love some new boots but can’t justify the cost.

As I said we earn quite well so it just seems crazy to me that things feel so tight - anyone else in the same boat?!

OP posts:
littleblackcat247 · 21/01/2025 08:08

After tax/NI a £130k yearly income works out at roughly 6.7k per month - not accounting for student loan/maintence payments/ and large mortgage

Ginmonkeyagain · 21/01/2025 08:08

On comms we pay £21 per month for FTTP broadband, £12 per month for Netflix and then about £12 each for SIM only phone deals.

I would ditch Sky and you can use Now TV passes if there is a film or match you want to watch.

WhiteLily1 · 21/01/2025 08:11

Wheredoesitgo · 21/01/2025 08:04

@WhiteLily1 we don’t save for holidays.

we save £500 - £200 into an ISA and £300 emergency (which is to refill it as we had to fix a few household things recently, plus a car tyre and service)

Ok- sorry I thought you said at the end you had £300 over at the end so can some of that be added?
We earn a little less than you on your lower wage, have 3 kids but no maintenance, no child care costs and a slightly lower mortgage but have pretty much 0 to save for either rainy day or savings so I think you are doing really well!! The fact that you have savings and rainy day is fab- I would feel so much happier if we had money to do the same
Take home around 5.5K after pension but it hardly goes anywhere and can’t add to savings. In fact if we need any repairs etc it comes out of savings sadly

Wheredoesitgo · 21/01/2025 08:14

@WhiteLily1 this is what I mean - it’s crazy that £5.5k a month doesn’t stretch very far at all isn’t it

OP posts:
WoolySnail · 21/01/2025 08:19

denhaag · 21/01/2025 07:45

For many this is true, but it's not the case for OP, and for many other high earners who chose houses larger than then need, with the according very high mortgage. I'd be interested to know what sort of house OP has.

To be fair op already said they purchased below what they were offered, so that's not true.

Wheredoesitgo · 21/01/2025 08:21

@WoolySnail yep but some people don’t read the posts and just assume I think 😅

OP posts:
Snapncrackle · 21/01/2025 08:27

I bought a McDonald’s breakfast a few days ago
5.59.
I’m sure the last time I bought one it was 2.99
and a coffee used to be 1.19 last year I’m sure - it’s now 1.79

We often go to Wetherspoons on a Sunday for a breakfast
thats also sneaked up from under £10 for 2 breakfast wraps 2 x coffee and orange juice
to £12 and now it’s just under £15

WoolySnail · 21/01/2025 08:35

Another point is people keep saying get rid of the car, but depending on your contract you still have to pay a huge amount- it's not as simple as just handing it back. A family friend had his wife pass away and it cost him £9,000 to give his car back and move to her paid for car, because it wasn't at the end of the terms he signed up for.
Obviously i dont know op's car agreement, but if it's going to cost a lump sum handing it back, that would leave a huge deficit, so worth thinking about.

Snapncrackle · 21/01/2025 08:40

@Wheredoesitgo Look at if you want a holiday
it’s the cheapest of the canaries islands
there is fab ( if basic ) Rui Olivia
location is amazing actually right on the beach no rd to cross

its basic ( think your great grans house in the 70s 😂)
but it’s very clean great for kids
AI and very popular with families as so cheap

2 weeks in end of July AI for 2 adults & 2 kids is just under 5k inc flights transfers

if your kids are younger and you can take them out of school it drops to 2800 for two weeks in Mid May this year
And there are quite a few others that
are AI with all the kid clubs and stuff for around 750 -800 for the two weeks

Retiredearly61 · 21/01/2025 08:44

One thing to consider, you said you have a shorter term on your mortgage. I would increase the term and make your mandatory payment less to fit in with you DH leaner months, with the proviso that on better months you make overpayments to achieve the overall lower term. Hopefully by the time you have to renegotiate your next mortgage deal the rates will be lower

theressomanytinafeysicouldbe · 21/01/2025 08:50

We earn £60k between us - this is a decent wage for where we live 😕

We have no spare cash. I have an excel spreadsheets (I can't get away with apps)

I have everything coming in and everything going out on it and adjust to correct each month.

I go round the supermarket with a little calculator and buy what we need - no sweet treats.

It's very hard.

Ineedanewsofa · 21/01/2025 09:30

Have not RTFT but the smug pile on that these threads always become is so depressing!
Yes they fell into the trap of overstretching themselves while rates were low like millions of others did - what OP and many others need is practical advice on how to make adjustments rather than being told they are stupid/wasteful/a spendthrift.
Some people on this thread have a serious lack of imagination if they genuinely can’t comprehend the OPs concern

Coldanddamp · 21/01/2025 09:42

For many this is true, but it's not the case for OP, and for many other high earners who chose houses larger than then need, with the according very high mortgage. I'd be interested to know what sort of house OP has.

Except she borrowed less than she was offered...

Wheredoesitgo · 21/01/2025 09:44

@Coldanddamp @Ineedanewsofa thank you

yes significantly less. Approx 25% less which was the lowest we could reasonably go with house prices where we live.

I look on Rightmove this morning at downsize options and there arent any. We’re in the cheapest house that meets the requirements we need. Without losing a bedroom (which we can’t - as DSC still visits and so needs one) there isn’t a saving to be made in our housing costs.

OP posts:
Pumpkinpie1 · 21/01/2025 09:48

Wheredoesitgo · 20/01/2025 20:50

Trying to answer everyone…

Mortgage is v high. We have a low-ish term and then the interest rates meant our monthly mortgage went up around £700 per month when our fixed term ended!

Between us, around £130k as an estimate. Self employment skews this a little, so some months more some less. Overall, if contracting is going well it should be closer to £160k ish but DH had a rubbish few months last year.

We live in a relatively expensive part of the country but not wildly. About an hour outside of London, countryside. I think we’d be considered ‘east of England’ probably borderline SE but certainly not as pricey as places like say Hertfordshire or Essex closer to London.

we actually got a mortgage 25% less than we were offered which I am so glad about now!

I didn’t go abroad at all as a child, I’m from a very working class family in the midlands and we didn’t have the luxury of flying anyway. Once a year in my grandparents camper van was it for us! I guess I just want to give my kids more than I had…

gosh don’t the kids add up. We went to a trampoline place the other weekend at it was £50 all in by the time you added drinks and sandwich!

Did you look for vouchers before you went to the trampoline place?
Why didn’t you take a flask and a packed picnic instead of eating in where the prices are inflated?

mnat · 21/01/2025 10:08

@Wheredoesitgo I agree with another poster that suggests extending your term. A lot of your expenses will be relatively short term (child maintenance, childcare), your wages will increase reducing the impact of the mortgage over time. My approach is that we have a family now, and it's no point me paying my mortgage off young(er) at the detriment of my family life now, the time I need money more than ever. They only get one childhood, we want to go on holiday now. We will overpay when they're older and more able, but I will say we had ours young, so your ages will obviously impact how sensible of an approach that is.

Wheredoesitgo · 21/01/2025 10:37

@mnat this is a good point thanks

OP posts:
Butterfly123456 · 21/01/2025 10:44

There is so much good advice on this thread.
I agree that your media bill is huge. Sky is so expensive right now, so we ditched it just after Covid. We now switch between 3 other much cheaper platforms every couple of months and we find it sufficient. Our phone bill is under 15 quid for 2 people. Food bill is similar to yours (we have 2 DCs under 10). Our mortgage is much lower, ca. 1300 but it's just a standard 3 bed semi, 10 years to go. 3 years of fixed interest left, but we're hoping to pay it all off with our savings by then. Your car lease is insane! (Sorry) We always buy 2-hand, it really comes much cheaper. Holidays - this year we go to Canaries, there were many, many deals last year's Black Friday and we booked something for under 900 quid half-board (we don't drink) during Easter holidays, all 4 people, 5 days + flights (DH collects BA points through credit cards, so it was a bargain). Always hunt for deals and bargains with holidays. Apart from that, we visit our relatives abroad, 1 in Asia, 1 in Europe, so that comes to 3-4k per year. Also, we already saved ca. 50k for our eldest uni, still saving for the little one though. The thing is, we bought an apartment back in 2012 and sold it with a lot of profit when buying our house, so that helped a lot. BTW, our incomings per month is a little less than yours, but my DH likes to budget and look out for deals, so I think it's thanks to him really that we are where we are. Also, instead of expensive weekend treats for kids, look out for yearly National Trust membership and make packed lunch - all weekends sorted.

Wheredoesitgo · 21/01/2025 10:55

@Butterfly123456 we definitely need to do more free days out! I tend to avoid the outdoors in this weather but the kids don’t mind it so we should all just wrap up and get to the park! 😅

OP posts:
Strictlymad · 21/01/2025 11:00

deffo loose the sky package. The maintenance is obviously a big non negotiable chunk, but that means allowances need to be made elsewhere. Also you need to both track every penny of food (coffee out, pizza at co op, beer out etc) and he will probably be horrified how all the bits add up. We have very very fast virgin (run websites/servers at home) at 30 quid a month

JustMarriedBecca · 21/01/2025 11:02

We used one account so we could monitor spending.
Our big spends were £3 on coffees and £5 on lunches. Now we take pack ups
The kids had £7 a day on school lunches. Now they have pack ups
We bought a car outright
Phone contracts £6-10 a month
We cancelled extra charges like National Trust, Disney + and Apple and use on a monthly basis as and when.

We earn over £200k+ between us, mortgage is £1,500.

We eat out a reasonable amount and travel a lot. But we are pretty thrifty. I hate waste and will meal plan and use up leftovers.

Bjorkdidit · 21/01/2025 11:19

OP as it's the beginning of the year, a good exercise would be to look at how much money came into the household in 2024 and try to determine where it all went.

So your incomes and CB if you get it. For your DH, he'll have to determine an 'after tax' amount. Over the year, did your net worth increase or decrease?

What did you spend on bills, day to day spending etc? If you're like most people who pay for just about everything on card, the information should be readily available so relatively easy to do. Then you can look at the categories that take up most of your spending and see if they can be reduced.

You say you want to go on holiday. Say that costs £5k. You need to find around £100 pw of savings so look at the largest spends that are also less essential/fixed and aim to reduce the costs to free up that amount.

Your DH also needs to think about how his income varies. Is the current reduction likely to be permanent, or could it increase again? If he/the family keep on spending as if he's earning a high amount, and the money doesn't come in, you'll be in significant debt before you know it. You could take a lower figure for his income and try and live on that. Put away money for his tax and if a surplus starts to build up after his tax is paid and you have savings for annual and irregular expenses that could be your holiday fund?

Autther · 21/01/2025 11:24

We earn about the same as you op but one child, no child maintenance and no wrap around care. I would say we're very comfortable and have lots of holidays etc but if we don't watch the bank balance it does go quickly, so I can understand with those additional expenses it doesn't feel like you have as much you should do

EdithStourton · 21/01/2025 11:34

@That70sHouse said
There has been a huge lifestyle inflation which means people expect to be able to live a certain way that is honestly just not realistic. Not only do people on a “decent salary” expect to be able to have a nice secure home, nice car, nice food every week they also expect new furniture, nice interiors, a “done up” garden, holidays abroad every year, new clothes whenever they want them, days out, birthdays and Christmases full of presents and trips and activities, kids who never “miss out” and do several activities each with associated trips/kit/events, eating out, drinking out, coffees, lunches, iPhones, AirPods, iPads, MacBooks, netflix, Spotify, Amazon, gel nails, eyebrows, hobbies, spa breaks, several pairs of trainers and boots and heels and flats and handbags and and and and…

I think there is an element of truth in this.
Housing costs have gone up massively compared to wages, but a lot of discretionary spending seems to have increased. None of this is making a value judgement, it's just my perspective looking back almost 50 years.

When I was a kid (mid/late 70s, old enough to notice stuff), our local small town had a total of 13 food and drink outlets (pubs etc); it now has 25 plus a couple of vans. The population hasn't gone up to the same extent, so a lot of £££ is gong on coffees and takeaways.

Two car households were a rarity (looking at the data, about 10%), they are very common now (about a third). Homes in general were much lower spec (almost no one had a dishwasher, or a microwave; lots of people didn't have a freezer or central heating; one bathroom was the norm.) 'Home improvements' meant a can of paint or some new curtains, not a whole new bathroom or a conservatory. A lot of children had very limited wardrobes.

Nobody paid for pet insurance. Children's activities were very limited and most parents felt no obligation (and probably couldn't afford) to take DC miles for regular activities. Nobody felt that they 'had' to take the kids to Disney or Legoland, because Disneyworld and Legoland didn't exist. People travelled less (we lived less than two hours form central London, but loads of children in my year at primary school had never been; school felt no obligation to take us).

A stag night or a hen night were just that, an evening out, not a whole weekend to Amsterdam with special t-shirts and themed clothing. Weddings receptions were either in the church hall or a local hotel, and proceedings began at about 11 or 12 with the service and ended at about 4 or 5pm when the bride and groom drove away; it never crossed anyone's mind to oblige everyone to travel hundreds of miles for a long weekend.

Life was very different. The pressure to spend money wasn't the same, because things were either out of reach for ordinary mortals, or just didn't exist. So yes, lifestyle inflation is a thing - but I suspect a lot of families are screwed over by housing costs (and then because they need two incomes, by childcare fees) to such an extent that paying for a weekend to Disneyland Paris is a drop in the ocean.

mnat · 21/01/2025 11:44

There has been a huge lifestyle inflation which means people expect to be able to live a certain way that is honestly just not realistic. Not only do people on a “decent salary” expect to be able to have a nice secure home, nice car, nice food every week they also expect new furniture, nice interiors, a “done up” garden, holidays abroad every year, new clothes whenever they want them, days out, birthdays and Christmases full of presents and trips and activities, kids who never “miss out” and do several activities each with associated trips/kit/events, eating out, drinking out, coffees, lunches, iPhones, AirPods, iPads, MacBooks, netflix, Spotify, Amazon, gel nails, eyebrows, hobbies, spa breaks, several pairs of trainers and boots and heels and flats and handbags and and and and…

This absolutely describes my aspirations perfectly 😂 (except the handbags and heels). Is it too much to ask?! Grin

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