£1k a month

[RosieIs44]

I realise it’s different for everyone, but do people think £1k a month for 2 people (adult and child) is enough/a lot/too little to live on? This is after rent and utilities so it’s to cover:

• food
• transport
• mobile phone
• clothes, hair cuts, toiletries etc
• days out
• anything else that pops up ie random repairs to house, car etc

Just interested to know what other people think about that figure, as have friends who say they spend that amount just on themselves a month, and others who get by on a lot less. Maybe it’s a moot question given everyone’s wildly differing situations

Certainly very much doable on £232 a week. Will you be taking 3 holidays a year no unlikely. Will you be able plan days out and stuff yes.

You could spent £50 a week on food or £150 it’s entirely up to what you buy. Same with clothes will your child need £250 trainers or £60 ones?

Could you afford it of your boiler broken down tomorrow then no. But if you Save £50 a month for 3 years then you be better able to cover large problems.

Have you had a benefit check?

@TigerRag have checked myself and looks like as I have savings over the threshold (small inheritance, have no pension etc though) that I don’t qualify for a penny

It really is like saying "are size 6 shoes ok" well yeah if you're a size 6, or maybe a 5, but not if you're a 10.

You said at the start it's different for everyone. Some people will think that's a fortune. Others would be horrified it wouldn't pay for their daily tennis tuition 🤷🏼‍♀️

Know it’s different for everyone, still interested in what those differences are and what people think… have lost touch a bit

Plenty!

I have far less before bills and manage. Takes a lot of budgeting and I have a Hyper Jar account to help save for Christmas, MOT, what have you.

I mean, our food shop comes to the best part of that per month, so no it wouldn't work for us. But I imagine it's certainly doable if you have no other option, people live on much less.

Given that you must have savings over £16k which you could use In an emergency I would say that is fine.

Very reasonable. Obviously it isn't going to stretch to a lot of luxuries but for a fairly frugal lifestyle it would be fine.

I budget £1000 for 4 of us and that covers food, petrol and days out.

But I save £1800 for holidays, emergencies etc so if we struggled one month I could always dip in but find it pretty manageable.

Why leave the savings in savings?

Why not put a lump sum into a pension?
To the best of my knowledge that would potentially make you eligible for benefits again. And be better long term regarding the value of the lump sum.

I live alone and take home around £1750pm
My bills monthly are (if it helps)

£100 gas and electric
£130 c tax
£28 water
£385 mortgage
£170 apartment management
£10 contents insurance

Then I have stuff like
£22 denplan
I allocate £240pm for food
£10 car tax
£35 car insurance
£39 fitness membership

I think it’s reasonable amount to cover the things you listed after utilities etc. It’s about what we have, we are able to have tests and luxuries occasionally eg birthdays and holiday days out but are generally frugal Day to day… for example I buy quality clothes for myself and 2 teens eg boden, North face, ASICS but never pay full price, always stick up in the sales. We favour low budget activities and outings rather than eating out or takeaways every week. They do paid clubs / activities but limited to two each per week. Agree with others who have said that it’s all relative and depends on what is important to you and your family… I think it’s probably the difference between needing to plan and make strategic decisions and just being able to say yes to everything without thinking! X

Thank you.
Thats helpful.

I spend more than that per month after utilities but I could reduce to that level if I had to without much difficulty (basically I would cut out holidays and dining out). I would rather include do those activities though so I would choose to work more rather than reducing my budget if that was an option.

How does knowing that help? What’s the underlying question?

Thank you. I find it helpful to know to get some perspective. Had a change of circumstance recently and I’m managing to get through that every month and needing to go into my savings as something else always comes up, dentist etc. Taking more work isn’t easy in this situation but that’s my plan…

Re the savings (inheritance) I have, I looked into transferring to a pension but have been told that could raise alarm bells - the movement of a large sum, before applying for benefits? Not sure if that’s correct or a pension is somehow ringfenced. Also, I can’t really lock away all that money for so long as I’m going to probably need it beforehand. I was going to try and invest some mid-term but then it still counts as assets against benefits…

I think DWP would not look on you favourably for sticking your savings into pension and claiming benefits. It sounds plenty btw. We have less than that for a family of four who claim top ups.

That’s what I heard… but those that have more and enough to stick it into houses can claim benefits, so it does seem slightly unfair. I have no house, no pension etc but need to run down (lucky to have inherited) savings first. Anyway, will soon be under the threshold at this rate!

Thinking about this, I need some financial advice.

Good to know it’s plenty for you also, thank you.

That’s not what I understand.
It seems that DWP has no issue with people putting money into their pension at all. The logic behind is that you then have a private pension and won’t need top up from your state pension aka pension credit.
Thats also why pensions are not taken into account when claiming benefits either.

Nope, that amount wouldn't work for me.

But if it works for you, great 👍

Yes you are correct, it can be put into a pension and like you say the reasons being that if someone has even a small private pension coming in when they turn pension age it is likely to put them over the pension credit threshold and thus save the government having to pay pension credit for potentially 30 years ! It is quite incredible what the DWP will allow and consider ok. I was just reading on another forum that someone could inherit a huge amount of money, use it to pay off the entirety of their mortgage and then continue to claim means tested benefits/ UC, thus having no housing costs but still receive benefits. I was amazed that this would be allowed but apparently paying off a mortgage ( considered a debt) is allowed and would not be seen as deprivation of assets. I guess it means in the long term you own your home, and don't claim any help towards rent, but I was surprised there was no limit at all as to what could be paid off a mortgage, you could literally inherit 300k but as long as it paid a mortgage off you could carry on claiming UC !

If it’s genuinely that list then yes I think it’s enough. It won’t be a luxurious lifestyle, but I think it would be manageable for an adult and child as long as you keep on top of it.

It does depend a bit on how much you need to spend on petrol, car expenses, house expenses etc. If you already have a decent car and don’t do a load of miles then that’s different to having something that needs significant repairs and you spend £100 a week on petrol to get to work. Also sounds like you rent, so you don’t need to budget for large house repairs, but then moving can be very expensive if you get given notice? Same as if you know you have good teeth or whatever, you won’t likely be facing £1000 dental bills.

Food bills can be crazy high or kept a a reasonable budget. Same with things like toiletries, haircuts, clothes, eating out or takeaways etc.

I couldn't manage it on my current lifestyle but I imagine it's perfectly doable if you live a modest life (UK holidays, buying cheaper clothing, walking rather than driving where possible).

FFS this is everything that is wrong with the system and attitudes today. Whatever happened to paying for yourself rather than taking money from the taxpayer just because you can.

People will always take advantage if the rules allow them to.