Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Monthly outgoings - huge

64 replies

SouthWestmom · 28/11/2017 09:25

So how do people not on a high salary manage? I always think on paper we look amazing and actually we live in a normal house in an average area, drive a normal car (3 years old) and can't afford holidays every year.

We recently remortgaged as we needed a better deal and at the same time I added everything to the joint account - bills, food etc.

We each pay into it and out of anything left have to cover clothes, gifts, meals out, petrol etc.

The joint account comes to 4026 going out.

This includes mortgage, council tax, house, life, pet, boiler insurance.

Mobile phones on contract.

Childcare.

Utilities.

TV and broadband (basic package but also NOW tv)

Activities - this is high at £200 pcm

Uni costs - 200

Savings - 500 (new, don't have any, will see if they last)

Car £150

Pension at 30

So I'm not after sympathy obviously, but even taking out the non essentials it's £3k.

How is it affordable for anyone? It's crazy.

OP posts:
SouthWestmom · 03/12/2017 08:45

Ebaying is really hard work. I do use our local selling sites which works - it's just the hassle of it I suppose, plus getting the kids to part with anything!

We do go to the cinema once a month thinking about it. Not unusual to spend £45 on that.

Not sure what to do about tv/broadband. We are in a 'dip' where it's either Virgin or Sky so hard to be competitive, currently Virgin.

OP posts:
Middleoftheroad · 03/12/2017 09:01

I know what you mean about Ebay OP! But what about cinema costs. Maybe this will help...

See I do find it unusual to spend £45 on a cinmea trip, but we are in Midlands so may be cheaper. The Empire does a 1.50 ticket each weekend for kids specials, normally its £24 for a family ticket and we smuggle in snacks Grin or just go to Meerkat Movies in holidays in groups of two (so DH and 1 DS with code) and same again with me and other DS sp its £12 all four.

Middleoftheroad · 03/12/2017 09:03

We did split broadband and TV between BT and Sky. We got Sky package with box sets etc hd on a rolling contract 15 per month but stopped that.

I have heard some people stream films and use Kodi....

slimyslitheryslug · 03/12/2017 09:08

To come at it from the other way, a net income of £3500 per month is a gross salary of around £60,000 which means (if both of you are working full time) an average salary of £30,000 (and, actually, two salaries of £30k are going to bring in more than one salary of £60k due to tax bands and child benefit). Depending on where you live and the fields you work in, a £30k salary isn't that high. As well as looking at possible ways to economise, are there any options for increasing income through promotion?
On the boiler insurance, you seem to have lucked out having actually got it to pay out. It's always seemed like a bit of a scam to me. I did have one for a while. It turns out that, at peak times, the guaranteed response time isn't guaranteed and, as a 20 something, healthy person, I was way down their priority list as (understandably) they prioritised the ill, old and very young so I had 6 days without heat or water and then I was tied to one of their replacement products & their fitters on which the mark up was so extortionate it was much cheaper for me to go to the local plumbing centre, ask their advice & sort it out myself.

somewhereovertherain · 03/12/2017 09:12

If you want a propper reality check on your budget post it on the debt free wannabe page on moneysavingexpert.com

For me our Moblies are 30 quid a month for 3. Don’t to sky, self insure for boiler, run a well maintained older car, spend £250 per month on food for a family of 4.

Start a spending diary and you’ll be shocked how much your waisting.

SouthWestmom · 03/12/2017 09:51

We don't get tax credits or child benefit.

I think it's the regular stuff I need to think about, maybe cancelling Netflix and stopping the cinema trips - even once every other month. I do have meerkat movies actually so maybe o should see how that works.

I've signed up to delivery saver and saved 21 apparently over the last three weeks.

Just shocked at the stuff I can't change although I do see that some of what o thought was pretty normal isn't.

OP posts:
Chasingsquirrels · 03/12/2017 10:42

I think the differences in what people expect can be massive.

ExH and I were together from 19 - 36, so through end of uni, training in professional jobs, having kids, me being part time.
Our earnings improved but I don't think our lifestyle did massively - we had nicer holidays and cars but I still reviewed daily spending etc.

We split up, our kids were 5 & 2, I was working part time.
I was by no means on the breadline, my part time was in a professional job, ExH paid child maint, and most importantly with regards to my standard of living I didn't have any housing cost, nor significant childcare costs.
We had a good lifestyle, a UK short break and a summer break in europe, a decent car, the kids did activities, I saved and made pension contributions.
I fully appreciate that the ability to do this was mainly due to the low housing & childcare costs - and that these are a killer for most people.

But I also kept my everyday costs low.
I took the kids to the cinema - but we did kids club and took snacks & drinks with us.
I always shop around for utilities & insurance, buy with quidco,
We eat relatively cheaply (mainly because I'm not a foodie).
The kids do activities but they aren't that expensive - judo is £1 a week plus £21 annual licence, jogging club is £70pa each, scouts was the most expensive at £40 per term.
I had National Trust membership and we go to local properties for walks & take snacks and drinks.
I had a smartphone but I've always brought outright and then have low contract costs, currently ds1 & I are both on £5pm and dd2 has a free SIM deal with my broadband provider.
I drive a nice car, I brought it 2nd hand but only 6 months old. But now it's over 6 years old and I expect to keep it for another few years as long as nothing serious goes wrong with it.

A few years later I got together with late-DH, he earned significantly more than me but probably not than ExH had been earning until just a few years before we got together.
But his lifestyle expectations were poles apart, Waitrose v Aldi. And tellingly I think not even realising that choice was an expensive one.
Along with all the other choices - full fat sky, new cars, expensive pets and hobbies, always new phones etc. Never taking drinks & snacks places and then buying them while out.

I think it is easy if those are the circles you move in to assume that it's normal, and even more so if your circles are higher income than you.

Late-DH was amazed (literally) the first time we went to an Aldi at the cost of things like fruit & veg. I (now) appreciate that Waitrose has some lovely stuff, but a cauliflower is a cauliower.

Late-DH and I, as a household, spent more than I had done previously, but nothing like what he had done previously in his 1st marriage.

I do think it is very easy to think that things are just normal when actually there is a lot of discretionary spend.

It seems that maybe this thread has opened your eyes to that OP.
But it is also important not to take it too far, there is no joy in a life on the breadine nor in replicating it if you don't have to.

As an aside OP, you don't mention what your pension provision is, but £30 if thats all you have between you (no enhanced employer schemes) is seriously inadequate. I really would be looking at that.

Finally, how long had you been paying that boiler maintenance? £24pm is £300pa, less say £70 for an annual service. 4 years of that has covered your £900 claim. I'm not saying it isn't worthwhile, but you do need to look at the whole picture.
Then again it would be sods law that you ceased it next week and in the new year needed a major claim!

Passthecake30 · 03/12/2017 11:40

Wow, your mortgage is high!

When we moved house and had children (almost simultaneously) we cut our budget in areas that we wouldn't notice so much in order that we could continue the "nice" stuff. So no cable tv (just Netflix), picnics instead of lunch out, mo magazines for me, cheaper gym, no "finest" foods anymore. That way we can still have a little splurge every now and then. Do you have any quick wins like that?

SouthWestmom · 03/12/2017 13:02

Mortgage is massive. But it's over half the usual term as we are old.

Pension scares the life out of me. Dh has one that will pay £14000. Mine will only be 1000 a year at the moment.

I just can't find spare to save for a pension, pay uni costs for dd and pay the mortgage.

Definitely will revisit the 'necessaries' though.

OP posts:
LuluJakey1 · 03/12/2017 13:28

We halfed our income when I became SAHM. Monthly income now £4200 a month.
No mortgage as we paid it off using money inherited.
Utilities - gas, water, electric £150- reduced from 230 by using Hive
We have a woodburner we use in one room rather than heat the house all the time.
Phones - £28 for house phone and broadband. Never use house phone. £17 for unlimited use iphone me (old iphone 4s). Just use for texts and calls. DH phone paid for by work.
Cars - both paid off mine is 5 years old, Dh’s is 6, serviced by local garage once a year £120 each. We keep meaning to get newer ones but have had no problems with these.
No credit cards
Pet and car insurance £140 total
House insurance £30 a month.
Life insurance £30 total
Childcare - £280 per month. DS only goes for 3 mornings.
Food £440, including pets
No Sky package at all
We feel really well off and are not frugal at all. We eat out a lot, go to local ‘jam jar’ cinema, Ds and DD get treats and go to activities. We save about £1500 a month, sometimes more.

SouthWestmom · 03/12/2017 13:37

Do you think not having a mortgage is part of feeling really well off though?

I don't know many people who have done this yet (1 Family I know of).

I need to look at the frilly spending I think.

I cut insurance etc costs and utilities in the summer so saving there.

OP posts:
Chasingsquirrels · 03/12/2017 14:31

Not having a mortgage is a MASSIVE part of it.
If you didn't have your mortgage or other housing costs you'd be £1,500 pm better off. That's £18,000 a year.

I wrote below about how I watch the pennies - but I fully acknowledge that the ability to have the lifestyle I've had in the circumstances I've found myself in were in the main due to having paid off our mortgage in our mid-thirties (through a combination of factors, but mainly having brought early before the current housing price madness, although other factors were involved) together with not having extortionate childcare costs (my mum looked after my children part time for a nominal sum to cover her petrol and incidentials).

Trying2bgd · 03/12/2017 14:47

I think someone mentioned a spending diary. Do one religiously for about a month and it is shocking. We mindlessly spend and with contactless cards, its only becoming easier to do so!

If you have already looked at insurance, phone providers etc and got them down then it is really going to be about discretionary spending.
Avoid brand named products. Don't over buy fresh food. Turn down the heating. Walk to places as much as you can. Look out for deals if you go out or eat out. It is a pain being frugal but it will help especially if you put the spare change towards your mortgage or pension.

Good luck

SouthWestmom · 03/12/2017 16:22

I did a spending spreadsheet and was surprised at the top up shopping I did.

On the back of the comments I've gone through the dc wardrobes with them and bundled loads of clothes to sell.

Also, importantly, listed what they need - no more buying stuff cos it's cute or nice or on sale.

OP posts:
New posts on this thread. Refresh page