worried about the budget

[Chickenmitz]

Hi.
I am really worried about how everything is getting more expensive. I have been trying to bomb proof our budget a bit, however I am still worried. We have cut everything back to basics - cancelled sky TV etc. Thankfully we log into my mums netflix :). Phones have been moved on to sim only etc and our CC debt is 0%. Despite this I am still stressing about it, so I though I would share it on here.

here we go....
Joint income £4489
Mortgage - 894
Gas elec - £210 ( can't do anything about this right now)
water - 40
C tax - £114
Home insurance - £24
2 x mobile phones sim only - £18
internet - £21.99
Car - £198
Car fuel - £180
2 X car insurances - £64
Food - £360 ( trying very hard to stick to this)
school lunches for 2 Dc's - £100
Credit card £200 - 0% and will be clear within 12 months
loan £147 - 6 months left
Life insurance policy - £38
Christmas/birthdays/parties etc - £100

Total - £2708.99

‘surplus’ - £1780.01. I think that me and dh should take £150 each for personal spends and then save the rest to create a buffer. We only have about 3k saved currently as we have only very recently had this level of income ( I have gone back to work).

My dh thinks I am worrying over nothing!

@Chickenmitz

Your surplus is my take home pay

Why are you worrying? You have over £1500 left per month to save. That's £18k a year. Take out £2/3k for treats and emergencies, and you still have £15k a year tucked away.

That’s an enormous surplus. You could even pay for your own Netflix…

So yes, you are worrying over nothing.

I suppose the real question is, why do you have credit card debt and a loan if you genuinely have that amount free to spend every month? Is your budget real figures, or is it ‘this what we should spend’ (which is not the same as ‘this is what we do spend’)?

Car service / maintenance.
House maintenance.
Garden? If you have one they need upkeep.

Building a small emergency fund (maybe £1500) then paying off the debt would be a good idea in my view. Then bumping up the emergency fund to 3-6 months of expenses.

No pension payments in your list... is that already factored in to the joint income?

I cannot see any Income Protection payment... do you have any cover for that?

You have surplus which is more than some people have got. DH may not be worried because things are going well... but look at What Ifs.
What If... he loses his job and it takes a year for him to find another one?
What If... you become ill, cannot work.
What If... a car breaks down and needs a lot of work doing.
What If... childcare arrangements fall through (don't know how old your children are but you may be using some before/after school care and school holiday care).

Well, you're not worrying over nothing. You have been carrying debt - credit card, car and loan? - for some time, and we're in a cost of living crisis. Your head is above water right now but you're not in the lifeboat.

1. Can you pay off any of your debts sooner? You can overpay on the credit card, I assume. How long is the debt on the car(s?)?
2. I don't see less regular outgoings accounted for in your budget - clothes, shoes, haircuts, dentist, prescriptions, glasses, TV licence. No savings for holidays? Can you go back through bank statements looking for other expenses you may have forgotten about? Everything needs to be budgeted for.
3. What about bigger purchases like TV, phones, other tech? You may not be planning to replace them soon but eventually.
4. There must be other costs for the kids - games, pocket money, school clubs, activities?
5. Once you've got a handle on your true expenses, then yes, I would start to save an emergency fund so you have a buffer.

I'd recommend a budgeting tool to keep track of everything. I use YNAB but it does have a monthly fee. You could do it in a spreadsheet or there are some cheaper alternatives as well.

Yeah, your surplus is my take home pay too (ok about £40 less). The food spend seems very low for a family of 4. Have you factored in days out with the children? School expenses? Dentists? Opticians? MOT? boiler service?
You really need to think of your spending across the year rather than monthly to get a better idea of what you can really count as savings. Otherwise you'll feel like you're constantly dipping into savings when you're not.

The only thing I find unnecessary on there is £100 a month for school lunches. Couldn't you send them in with packed lunch, and maybe just do one school lunch a week on the best dinner day?

the recommendation is 3-6 months living expenses saved you have £3000 ie about a month the priority should be to get it to about 9K for 3 months, whether you should go for 6 months (17K) depends on your job security if both public sector and have been in current jobs more than 2 years it is much more secure than in a small business still on probation and everything inbetween
but in current economic climate the priority should be mostly savings as costs could rise further and you have a buffer I think £150 personal spends a month is adequate and a discussion if you feel you need more, we do £80 and it includes clothes makeup and coffees lunch out etc but not basic toiletries as that is in supermarket budget

and mine!! In fact it’s £100 more

your budget is fine @Chickenmitz. But absolutely should be saving more! Even if you saved £1k that’s still a healthy amount of disposable

oh missed the debt. I’d pay that off more quickly. You can afford to.

also your monthly budget doesn't include everything car MOT new tyres, house and garden maintenance
you could easily pay £500 a month to credit card get it paid off faster i know its 0% but still get it clear
also you are paying £198 for car is that a loan or lease, if a lease do you intend buying at the end if so save for that maybe at your level you should consider saving so you pay cash for next car assuming you have a pension
I think £850 savings a month for long term ( 3-6 months living) and £400 for short term ( things you didn't include in budget:- the house car maintenance new kettle etcuntil about £2000) and £300 personal spends and £150 towards holidays or other family outings as soon as debts paid off deliberately decide what to do with extra money you don't need to fritter in lifestyle inflation,
if you don't have pensions that needs to be factored in too
after you hav 6 months living then is time to invest for long term like university retirement over and above pensions, paying off mortgage etc

The debt was built up for home improvements from when I wasn't earning

Is this a piss take? how a f do you think people manage on MW or similar?

I think it must be very difficult, but that doesn't mean that I can't post surely?

You're being ridiculous.

You're 'really worrying' and 'stressing' about having £1700 a month surplus?

Why?

I think you need a more detailed budget which includes all the things that you actually pay out for on a regular basis. PPs have listed some. There is a good template on Money Saving Expert which lists everything to consider.

I'd pay off the credit card and the loan (If you can repay early). I think it will make you less worried, even if it doesn't matter financially. Being clear where your money goes will also make you less worrired.

I'm not sure it makes sense to keep your food bill pretty small and then spend £100 on school meals.

I agree with working through the what if type scenarios.

Once you've created your full budget, work out a regular amount that you can save and build up an emergency pot.

"My DH thinks I'm worrying over nothing.."

I'm inclined to agree. 🤨

Come, come OP, surely you know you can't post about budgeting unless you are on the bare bones of your arse.

I would probably aim to save £1k a month which will build a good buffer and not be too arduous.

I think it must be very difficult, but that doesn't mean that I can't post surely?

No but there is such a thing as reading the room. Having over £1k a month surplus when most families don't have £1 is just rude

So is Mumsnet just for poorer people now

OP has posted in money matters which is surely a forum for all, rich or poor.

That's a ridiculous argument. This is a forum for people to discuss general money matters. It's not the cost of living forum. There are posts on here from people (for example) asking where to save large inheritances.

If we all had to "read the room" most of the posts on MN would disappear. No holidays posts because some people can't afford them; no posts on buying houses as some people are struggling to pay the rent; no posts on Style and Beauty other than how to upcycle charity shop clothes as some people can't afford new stuff.

OP hasn't posted to say OMG we are two steps from the workhouse, she's stressed because she wants to get to a workable budget that will allow her to build up some savings. She has debts to pay and mouths to feed, like we all do.

You wouldn't post in Cost of Living about wanting to spend 5 grand on a handbag, but in Style and Beauty that is fair game.