After absolutely everything else, how much disposable budget?

[youreonmylastnerve]

Someone kindly suggested I post this here for a better range of replies, so here goes.

I am hoping to move in the next 6 months or so, and this will likely see my mortgage double and council tax increase.

I have estimated that once I pay off some small credit card/OD debt before moving, my total outgoings will be approximately £1200 all in, including food, car costs, etc. and I'll have about £600 disposable income left over. I have one teenage DC, which are expensive in themselves!

Now, that sounds a reasonable amount leftover, to me, but I know I've not had that amount to spare each month until now, and there will always be MOT bills, birthdays, house repairs to factor in.

Just wonder if it others think that's a safe amount or should I be budgeting for a smaller mortgage?

Thanks.

I live on £50 a week, my partner does the same.
MOT/house repair money comes from savings as i save for it all year.

Mine £40/50 week

Mine, after bills, food and petrol is £25-£30 a week. Your £600 a month is loads.

You will be fine. I have a separate account with 2k in it that I use on a high expense month and pay back. You could set something like that up maybe.

At least that’s after all your bills etc, You’ll be fine.

I think you have to be disciplined about what you’re going to spend the £600 on - I would allow £50/week as available spends and put the rest aside on the understanding that it’s there if really needed but otherwise you’re not going to spend it that month.

Do you need to pay for things for the teenagers from that? Does your original budget include school expenses, uniform, clothes, outings/entertainment etc? That’s where you could go wrong I think. Maybe £50/week for you, £25/week for the teenager and save the rest?

Split the cost of all the annual bills like the mot, car tax, servicing etc over the year too so you get a reflection of average money left. My bills (not mortgage) come to £760 a month to give you an idea, but that's an average so I save money for the annual ones

Is that really disposable? Have you included budgeting for clothes, shoes, haircuts, cosmetics, Christmas and birthdays? Gifts for family or friends? Car maintenance? Travel to see family or friends? Holidays? School trips? Hobbies, equipment and clubs? Home maintenance like painting? Garden maintenance?

It looks good on paper, but beware of all the unexpected costs that crop up seemingly every month! I think if I were in your situation, I would be putting as much as possible into savings each month, to give me a "safety net" for larger expenses (e.g. replacing the boiler, mending the roof, repairing the fence...).

I’d work out exactly what extra money you’ll be putting into the mortgage and bills, and then work out how you can cut that out of your current spending. E.g if the extra mortgage/council tax is £600 a month, how can you cut £600 a month from your spending? What would you have to stop spending money on?

Would it be cancelling gym memberships, not putting any money into savings, reducing daily spending etc? I think when you work out exactly where you’d reduce your spending, and what you’d have to stop spending money on, you can work out whether it’s really doable or not.

Look back through your bank statements and credit card statements over 12 months. How much did you spend on clothes, entertainment, holidays, birthdays, Christmas, school trips, charity donations and so on? Divide by 12.

If you’re carrying credit card debt do you spend more than you can afford - be honest? £600 sound loads but if you spend £600 on Christmas presents that’s £50 a month, you probably spend at least that and more on eating out, holidays can add up to a lot, then there’s kids clubs and clothes etc. £600 can start to feel quite tight depending on your expectations and lifestyle,

You need a good hard look at your spending habits to see what’s reasonable for you.

but I know I've not had that amount to spare each month until now

This is crucial - you’re going to double your housing costs but you currently don’t have £600 left over at the moment - why not? Your costs are going to go up so you need to know why you don’t have much leftover whilst your costs are lower...

Last 18 months have been expensive - holiday abroad for DS and I, two close friends weddings/hen weekends, redecorated DS bedroom, two school/club trips for DS. None of that will be happening anywhere near to the same extent over the next few years, so I can see where it's all gone. I was still saving some on top of that though.

Unfortunately, I have no hobbies and DS' is paid by his dad. From now on, I'm going to put my additional travel expenses away into a separate account and use that for my car costs as they come up. I also already put a small amount away in a credit union for Xmas each year.

When I say "disposable", I did mean to cover my odd hair cut, new shoes. I don't spend on those things every month. And I have got much better at not spending on hot chocolates, breakfast/lunch at work, etc.

I'm going to make a conscious effort and see exactly how much extra can put away into savings over the next six months.

Thanks for the replies and points to think about!

You mentioned some small credit card/OD debt. When did you acquire that debt? Was it whilst you had your current amount of income/expenses? If yes I would be wary, as obviously that means adding bigger expenses might lead to more debt.

In theory £600 should be OK, but only you know how good you are with sticking to your budget.

Also, be very sure whether you really want less spending money and how long this would be for. For me personally £600 a month wouldn't work. I would be happy to do it for say 1 or 2 years to save for something expensive, but not as my new 'normal'. Hence I have a small flat and small mortgage, but slightly more spending money. Definitely not saying that's right, I know financially it isn't, but everyone is different.