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

[Lonelybunny]

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 !?

High rent?

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

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.

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

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

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

Clothes budget?

Alcohol?

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.

one word. Monsoon

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. with virtually no effort.

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 !

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 .

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.

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

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

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.

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.

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 :( I was thinking a holiday to Spain all inclusive , am I being stoopid ?

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.

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.

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.

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.

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?

We wouldn't either on 40k, but live in London, with a rent ( of one bed) over half that! Plus x2 pre schoolers childcare.

I would look at all expenses though as your rent is very low ( compared to ours), and have no childcare.

40k a year is roughly £3330 a month. So if rent is approx £700 and no childcare what do you spend the other £2600 on? You should be able to afford a holiday IMO,

Rent £700
Bills £300
Food £500
Petrol £200

All at guess but that's £1700 only.

Adding £1000 for extras should still leave £600+