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!

It's rude to have over £1k per month? It really isn't, and OP is allowed to post asking for advice to manage their budget no mater what that budget is. It's a fact of life some people have more than others, and we are all allowed to discuss our own circumstances on here.

Op I would take £150 each to spend as you wish, £500 household spends (days out, clothes, household things that break or need replacing etc.), save £1000 per month.

Of course it's not the case that 'most families don't have even a pound to spare'.

Some people can't cover the basics, some people have enough money that they can spend without thinking about it.

Most people are somewhere in the middle, where they can pay for essentials with money left over, but they have to be careful about how they spend that money, in order to be able to save for a rainy day as well as annual and irregular expenses, both essential like car repairs, white goods replacement, insurance etc and 'nice to haves' like holidays, birthdays etc and be able to have day to day treats like meals out.

Many people struggle to work out how to make the best use of this money, which is what the OP is asking for help with.

I agree with you. You have debt, virtually no savings. Have you sorted a pension?

You have a decent income but I don't think your budget is accurate. mot's, days out with the kids, kids activities, white food replacement fund etc aren't there.

I'd be starting by getting a decent budget together. Then focus on 3 months of expenses. Then pay they debt v v fast. Then 6 months of expenses.

Then I'd feel like your husband

I think it’s fine to have that surplus and post in this section, but I must admit after the first two lines - income and mortgage - I thought, “ there must be a hell of a lot of debt to service for this person to get so stressed”. And there isn’t. You’re not in a bad position.

One thing I’d do - which is very personal - is I’d get rid of £147 a month 6 months of loan, by paying it off in a lump sum from Jan pay. 5 months is £735 plus a small amount of interest saved to reduce that. It can be psychologically hard to cut back your budget month in month out, but easier to have a lean month knowing it’s for a “big” purpose. Kind of like a “dry January”. It’ll give you a feel for just how much you can save from future months too. It’s not because the interest saving will be huge, it’s for the motivation not spending all your surplus, and the nice feeling of having an entire debt gone.

I think this can be one of two things.
A stealth boast. Ohh look how much money I have spare every month.
or you need some therapy over your anxiety about money.
Personally I find it a bit boastful, but that could be that due to recent ill health we have to manage on less than £900 a month for everything. All bills all food everything.
Somebody then making out ohh look how Worried I am on double that’s as fun money just make me think get with the real world and spen some of it on therapy for yourself to reduce your anxiety.

For all those who seem to think the OP is loaded, it's probably worth pointing out that their income is what you would expect for two full time workers earning slightly less than the national average, eg around £36k pa each.

They could be a pair of nurses, teachers or police officers with a few years' experience, hardly Gordon Gecko territory.

In your shoes I'd add a bit of a buffer to the £100 for extras, do you never have a day out or treat? That could swallow the £100 straight away. And there's nothing in there for clothes, holidays, dental, car servicing etc.

I have a budget but it's realistic and includes everything down to an allowance for takeaway McDonald's when I'm hungover haha. That way I can do it if I want and if I don't spend it's a bonus. It's just a misc amount that sits on my budget for those sod it moments.

It sounds like you don't have huge debt so are you overpaying the mortgage? I'd split a lot of the surplus between mortgage , savings and overpaying the loans, and chuck £200 towards living life a bit before the next bill increase.

She hasn't asked for advice on managing her budget she posted in her words because she is "really worried" and "stressed"

You mean some families, surely? I don't think the majority are struggling that much. Prices have gone up and we have less than we did but we're not on the breadline and nor are most people I know.

OP didn't actually ask for anything; she said she just wanted to share her budget.
Presumably, she expected people to comment on it?

I think your budget looks good OP, you'll be able to save a lot more in 6-12 months when some of those loans are paid off. How long do you have left on the car loans?

£150 each a month for personal spends sounds like very little to me though, that will disappear very quickly on a month where you have a big night out, want a spa day with your friends or need to buy some new makeup or whatever. I think you'll always be watching every penny when you could afford to be more relaxed. I would definitely increase this but it depends on your own spending habits.

We're lucky to have good incomes and low outgoings but I still have times where I worry about not saving enough or prices going up so I understand the anxiety.

I’m not sure what exactly you’re so stressed about, but I do agree you need to look at your finances and be careful to live within your means.

I’d focus on paying off the debts and paying into savings every month.

Yes to the £150 each. Then I’d probably put £1000 a month into longer term savings and keep the surplus in a regular savings account to pay for general life costs that aren’t regular every month. New fridge, car repairs, Christmas gifts etc.

I’d reassess after a few months so see how those figures are working out for you. Adjust if necessary.

once the debts are paid off and you’ve built up a bit of a buffer, so basically a years time, then I’d focus on paying more into pensions and overpaying mortgage etc to make the most of your money rather than just putting a large amount into a savings account every month.

this is really insensitive your surplus is more than most people earn we are in a cost of living crisis with many struggling to make ends meet I feel like you’ve just come here to say look how much money I have left a month. Single mums get themselves into debt every month because their outgoings are by far a lot more than their income. Sorry to be frank but your post was completely unnecessary

And also four months ago

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