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 !?

My bills alone are £450 , Which includes car finance DP's about £300 , it's scary it really is !

Forever Greek - is £40,000 p/a really £3,300 per month? I don't think so.

If the £40k is after tax then yes it is £3333.33 per month.

More like £2700 after tax -

OP you haven't said whether this is before or after tax and also whether it is being earned by one person or two so it is hrs to tell. Do you know what your joint income after tax and NI is?

You need to keep better track of your spending.

Get some personal finance software.

Sounds like you are wasting money on debt. What's with the car loan? Pay cash for cars.

If earned by one person then take home is approx £2500 per month here.

Following on from what previous poster has said, I highly recommend you do a Budget Brain from the MSE website. It's a brilliant tool and will tell you exactly where your 40k goes.

It again is what my p60 says

Your P60 has more than one number on it!
It has total earned total, paid in tax, paid in NI etc.

If you can't get to grips with, or don't even know, whether it's pre or post tax, I'm not surprised you have budgeting issues.

A good thing to do is write down what you spend everyday in a little notebook. Newspapers, coffees, hairdresser, food. Everything. Also keep a note of your direct debits. At the end of the month put the amounts into columns, eg food, treats, hair, petrol, miscellaneous. Then add up each column. It's illuminating! I do this ., it does help

Sorry comma in wrong place.

I have a post tax income of £1700 pm

My mortgage is £650pm

I run a car and manage a holiday (1adult 2dcs) in the sun

I have a little note book and I write down to the penny what I spend as I spend it so nothing is missed

It's amazing how things add up -vending machine coffee at work, adds up to £10 a week or £460 a year! On crap coffee!!

Quite easy to cut back on that one

If you are brave enough to keep track of every penny you spend for a month & post itemised all back here I think folk will help you pick thru where waste maybe happening. Have to be brave, though!

Regardless of your income £450 seems low for bills if £300 of that is for car finance. That leaves only £150 for gas, electricity, phone, broadband, council tax, mobile phone, sky etc. I know you may not pay all of those but I think you need a better understanding of what goes into the bank and comes out every month before you can think about a holiday.

We used to have the same problem before I spent one evening working out what we had coming in and what had to go out each month.

It's made a huge difference to how we manage our finances,were never overdrawn now,everything's paid on time and we have money put away for the future.

We live in the SE and there's 7 of us,we have about the same coming in as you do.

Were really lucky we've had a couple of holidays already this year in the UK and we'll be going away a couple more times later in the year to France and Greece.

Have a look at what your paying out and what your spending on bits and pieces.

It was the bits and pieces(all the non important not really needed stuff)that was crucifying us financially.

If it helps, I've got my P60 in front of me, and the most prominent number is my gross pay.
So, if the gross pay is £40,000, then the net per month will be about £2400 - £2700 ish, depending on deductions for things like pension or student loan.
LonelyBunny says her rent is £675 and her bills (including dp's car finance?) are £450.

I have to agree that £150 sounds very low for all bills, or are there things that you don't count as 'bills' (calling them soemthing else, but they still need to be paid out!)
That should still leave about £1300 a month for everything you need to spend on. It's not that clear though - is yours the only income ? Does dp not bring in any money? Presumably you can also add Child Benefit to that?

We have 4500 coming in every month - haven't been able to have a foreign holiday for 10 years or a cheap uk holiday for 3.

Huge mortgage, lots of insurance, high travel costs, 2 (unfortunately) necessary cars, live in a (not very nice) but expensive area.

I'm not fussed about holidays now though, I think it's why I got into gardening

PatPig - cash for cars?! Ha ha ha ha ha at that one. If I did that for instance I would get another old banger for £200 and throw the same amount every month at it to keep it going. Surely much better to budget a set amount every month on a reliable car on finance if a car is a neccesity for work etc? Though £300 a month does seem excessive in current market on car finance.

I think with your outgoings and incomings OP you need to put together a proper spreadsheet and see where your money is going!

I pay £450 towards bills DP spends like £300 towards then too so like £750 pm , that's a lot huh ?

About average I think.

Council Tax - 3 bed in SE with 2 adults, around £150 a month
Gas - around £80 a month
Electric - around £60 a month
Life/pet insurance - around £40 a month I'm guessing for 2 adults 1 pet
Car Insurance - £50 a month
Sky/TV - £50 a month incl broadband etc
Mobile - 2 so around £40 a month
Car finance - £300 a month you said
Water - 3 bed house with 2 adults and children about £40 a month

Thats it all there I guess

But still, where does your money go?! If you get about £2700 a month in your account, you pay the rent at £700 and around £450 of the bills, where is the rest? Shopping at £100 a week? Thats still only £1550 a month. Petrol? But guessing DP pays that? School lunches? Only £2 a day each child. Any clubs or fees?

Lonely if 300 of that is car finance, then no I don't think it is a lot.

It doesn't sound like you know how much income you have, or what your outgoings are so no wonder you are overdrawn and can't afford a holiday.

Is the £40k joint income or just you? And is it before or after tax??

Depends what you class as "bills". Like lots of people have said, you need to sit down and work it out properly. No point in guessing or asking others "is that a lot?"

People have different priorities, but if you are overdrawn every month, then no, you can't afford all inclusive holidays.