Help me budget/save

[Redtartanshoes]

I’ve recebtky got a new job, 10k payrise. It’s prompted me to set up a small standing order which is fine. But then I sat and worked out my outgoing and such like and I’m horrified at how much money I’m wasting. And wondered how much realistically I should be saving every month.

Single parent.
Bringing in £3400 inc maintainace for ds.
Total outgoings for bills/mortgage (not inc food etc) £1250

I thought I was being ace putting £300 a month away... until I realised I’m spunking £2k up the wall every month. Nothing to show for it other than clothes and gin and other wasteful stuff.

Please help

I am presuming that you Have been managing fine on the money before you got your payrise?

If so, for the first year I would bank your payrise earning into a separate account, don’t touch it at all. And live on your previous income, if you where previously putting away £300 maybe See if you can Increase it and put that into the same account, don’t touch it.

I wouldn’t live frugal but maybe be more mindful, for instance if your wasting it maybe cut back on purchasing the things your wasting it from. Use this money then for more luxury items or breaks and holidays. That way then you still feel like your enjoying your salary on something worthwhile but saving accordingly also.

I treat savings differently to money I put aside for things I want. I’m now self employed so took apt drop for the time being but I used to save 40% of my income.

Hope this helps!

Pay yourself first. Work out the monthly increase post tax and set up a standing order to a saying account plus the original £300.

If you can read Alvin halls books, he is brilliant at changing spending habits. There might be some uncomfortable home truths but it works.

Keeping a spending diary is good, that £2.50 latte looks different when you work out it’s a £100 a month habit and the cup it comes in costs mote to produce than the latte.

I’m also a single mum, income about £400 a month less than you. Outgoings roughly the same and I save £1000 a month, sometimes slightly more.
My industry can be a bit up & down so it means I sleep nights

Whoa. Get thee to ynab.com.

Have you a good pension? Mortgage? I'd be firing up one and hosing down the other.

Thanks for all the helpful replies.

I was managing fine before, but not saving anything... splurging a lot. I think because I earn a decent salary compared to a few years ago I’ve got into the habit of just spend spend spending.., like I earn 3 times as mich probably.

It’s funny you mention coffee..I’m field based and some days I’ll have 2. So £5 a day which is ridiculous.

Perhaps 2 savings accounts would be a good idea. A savings not to be touched to pay off a chunk of mortgage or whatever, and a savings for holidays and such like

Amazing on tripling your salary in three years, you should be so proud of yourself! It sounds like you’re on the right path of success.

I have several accounts just to keep it organised and especially for savings a bit like long term savings and short term, so sounds great! it’s good to not have them cross over. I also withdraw cash for birthdays and Christmas and put it aside throughout the year I also think it’s still important to have the things you like it you can afford your coffee and enjoy then I’d say have it, but if there’s something else you don’t enjoy but purchase knock it on it’s head. Even just banking your increase salary and a little extra will leave you with a good amount of savings at the end of the year, with hopefully some nice holidays, treats and good level of general living along the way. It is about balance, so just find what works for you.

No no I dined like I earn 3 x as much as I do.. although have trebled my salary since splitting up with DH 5 years ago which makes me proud.

Your right re the coffee. Probably making lunches but buying coffee would see a good saving... and stop the ~5~ 3 bottles of wine a week too!

www.moneysavingexpert.com/shopping/demotivator/#resultslocation

Use this de-motivator tool.. then when you have the figure put it into this mortgage overpayment tool www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

Then tell me buying coffee is ok 😀

Ditch the coffee, the food on the go & cut the wine to once a week. You’ll see serious savings.