AIBU - monthly budget, is this a reasonable amount

[HollieTalbut1997]

Hi, thanks for any advice. I’m currently looking at buying a new home and would mean higher mortgage payments. It’s be the best thing to do for our future but I do worry about money. I grew up very poor and there was never enough money so I think that has caused me anxiety as an adult about not having enough even though my financial situation is vastly better.

After all bills are paid including food and non essentials eg Netflix I will have £850 left per month to pay for meals out, clothes etc and to save for the future and for holidays. Is this a reasonable figure? What do others have and how do you find it?

Hi. If that's after all bills(Christmas/birthdays?) then I think you'll be fine👍

Is this for 1 person?

I feel like if money causes you anxiety then this is a strange use for your remaining money. I feel like a lot of these fall in to non essentials.

If you’ve got £850 left each month then you budget to £850, if it means one less meal out than your used to isn’t that worth the sacrifice if it is the best thing for your future?

How many people is that for ? What kind of holidays do you envisage having ?

£850 now is fine. If it's just for extras and savings. But have you future tested it? So how long is your mortgage fixed for? What happens if mortgage rates go up?

What happens if tax increases slightly? So its now £750 a month left over.

Are you considering children, or planning more? Childcare costs?

What sort of lifestyle are you happy with if that disposable had to go down for a while?

These are all things i'd sit and plan out personally.

Sorry a lot of what? Not sure what you mean?

Wish I had £850 surplus after all bills and expenses paid each month!

If it’s just you, seems fine. Doesn’t seem enough for a partner and kids as well. Can you take a longer mortgage term to reduce the monthly payments? It’s more unexpected house expenses I’d be concerned about like needing a new boiler or roof issues.

£850 a month left over is a huge amount

Sure you will be fine

How many people for?

How generous is your budget before you get to the remaining £850? Eg does it include all top up shops, ad hoc expenses, annual and irregular costs like car insurance, MOT, servicing etc? Could you cut anything out if needed? Have you covered all transport costs?

It sounds like it will be 'enough' but it does depend on what sort of lifestyle you're used to and what you value most - the new house or a certain level of holidays, clothes etc.

I'm currently trying to budget and after all bills and essential food I give myself £300 a month plus £100 for unforeseen/ unexpected things so if this is just additional money to food/ fuel/ bills then I think that amount is fine with plenty of room for savings.