Why is our financial life such a slog?

[Roadsahead]

Hi, feeling the Sunday blues today. I feel like Dee H and I both workout socks off in full-time jobs, reasonably well-paid jobs too. Despite this, we never really seem to have any spare money nor be able to save any decent amount. We desperately want to go away for a week in August with our two kids. We have two sons aged 12 and 14. We are looking for anything fancy, but would like to be able to go to Devon or Cornwall for a week just to get away from it all, spend some time on the beach and relax a bit. The reality is that even a cheap holiday in the UK isn’t really cheap anymore.

We are determined to put some money away for the next few months to make this happen, however I have just checked our online bank account and as of right now we have £500 left to last us until the 25th of April.

I did a big shop this morning so at least we won’t have to worry about that for over a week, however we will need to put fuel in the car and also pick up some fresh bits that tend to run out every few days.

I reckon that if we’re lucky by payday we will have between 250 and £300 left. before people get pissed off with me I do appreciate that this is very much a first well problem and I know that there are many many people in a far west position, however I am feeling fed up today I just feel as though it’s all work work work with never any reward.

Do you have budget of how much you should/do spend per month? If not you need to start there. Moneysavingexpert has lots of advice and some bank accounts like Monzo and Sterling are really helpful at working out where you money goes.

It's hard to advise without an idea of your incomings and outgoings. You say reasonably well paid but that means different things to different people. Obviously if you're bringing in £8k a month with a small mortgage then you should be able to go on holiday. If you're bringing in £4k with a huge mortgage then I'm not surprised you're struggling.

£300 x 12 is 3.6k. I would have a look at holidays in Canaries next Easter with a heated pool.

This.

You need to review your whole budget to see what you have on paper and whether it's enough for an annual holiday. It could be that your incomes don't cover your outgoings, or it could be that you're leaking bits of money all over the place and if you spent a bit more mindfully, you'd be able to put aside enough for a holiday.

Have a look at:

https://www.moneysavingexpert.com/family/money-help/

Download your spending over the last year to see where your money has gone. Especially pay attention to what you've spent on food, both groceries and takeaways/coffees/lunches and mobiles/broadband/subscriptions.

It could well be that you've spent a lot more on these sort of things than you need to and there's quite a bit of scope to cut down.

Also, it probably costs less to go to the Canaries than it does to Cornwall as accommodation will be less, as will eating/drinking out and the weather will be better so you'll be able to swim a lot instead of likely paying for activities to get out of the rain.

Thanks guys

i don’t feel like we’re wasteful but the money is clearly going somewhere. Something always seems up break or a school trip crops up etc. these are things that we need to save for but we shears seen to be one step behind. Will take a good look at our bank statements tomorrow (day off) and see what’s going on

Devon and Cornwall are actually really expensive and often more than an abroad holiday,

Can't comment on your budget but they are not the cheapest options.

I agree with pp. It's hard to save just by spending what you need and seeing what's left at the end of the month - I think you need to take a more active approach and do a proper budget, then compare your actual expenses with the budget each month to see where you can cut back.

I’d just book a holiday for next year or maybe October half term, see it as a bill you need to pay each month and it will get paid, I find saving for a holiday harder. Least you’ll have something to look forward too.

For me this is one of the things that comes under 'paying myself first'. As soon as I am paid a transfer goes to a separate utility bill account all my DDs come out of and then I put a set amount in separate savings accounts for holidays, Christmas, birthdays, home improvements etc... What is left over is my spending for the month for groceries, going out, clothes etc...

The things I have listed above are my priorities - holidays are really important for me, much more so than clothes, so I have a separate saving pot for them but it may be the other way round for different people. Work out what's important to you and make sure that money is put aside for those things before anything else.

It’s very easy for money to just disappear. I would hazard a guess that if you added up your actual food spending for the month it would surprise. Running out of fresh “bits” every few days can be an expensive way to shop. Make a plan and focus. You have a goal in mind and that will help enormously.

I totally agree with pp that Devon/Cornwall in August is very pricey. Cheaper to go abroad, even though it shouldn’t be.

Devon and Cornwall are hideously expensive and the weather will probably be crap, I'd go somewhere for a weekend and stay somewhere cheaper like a Premier Inn (depends how far away you are though, if too far for a weekend then I'd go somewhere closer, D and C are often a nightmare in the summer hols and the roads/beaches are rammed). Then aim to go somewhere cheap abroad a little more in the future. Canaries in October or something.

I was going to recommend the moneysavingexpert budget planner as well. It’s quite downheartening to do, but at the same time quite fruitful.

Once you start putting money aside for Christmas, holidays, school uniforms etc, then when these payments are needed, you already have the money put aside, and not having to find it from this months wage. You may find initially you have a slightly smaller amount to live on day to day, but as the money lots build up, it evens out a bit.

Agree about working backwards working out what you need to save each month, and sorting out a detailed budget including regular bills and an allowance for irregular bills (haircuts, travel costs to see parents, school trips, kids' termly activity fees, holiday club fees, Christmas etc). It can be done. Dh and I saved for three years to go to Rome with ds by saving £50 a month.

I'd agree that Devon and Cornwall are seriously expensive. I've personally always found Wales to be cheaper.

I feel you op

Monzo pots have worked really well for me. I’ve been putting away £££ every month in a holiday pot for just over a year so we could go away this August to Spain. Just set it up so it’s automatic. Once that money has gone into the pot it’s not available for you to spend on fripperies.

Then go through your bank and credit card statements with a fine tooth comb for 3 months so you can see what you are actually spending on food etc, not what you think you’re spending. You are probably underestimating.

As PP’s have said, I wouldn’t bother with Devon or Cornwall in the Summer. With two kids you are looking at £1.5k - £2k for accommodation alone plus food, petrol etc. The weather will be average to ghastly and food & service not much better as both areas are over run with tourists and unhappy locals. We have enjoyed lovely breaks to Pembrokeshire over the last few years, lots of beaches and things to do and cheaper than breaks in England. But again, you need to be ok with bad weather.

I haven’t found the method of having a pot of money in my current account all month and hoping for any extra left at the end of the month to save was ever effective for me.

I think your first step, like you say, is to go through your statements. Write down a tally of what you’ve spent in each category over the last three months to get an average, and build a budget from there. Try it out for a month and see if you can make any tweaks or swaps to save money.

You need to make a complete list of all outgoing expenses - then you need to be ruthless and cut where necessary.

Thanks folks. Definitely got some work to do on this. Food shopping is an issue. I know that these needs to be addressed. After essential outgoings and food we should have about £1100 that we can save and yet we’re burning through this.

Agreeing with all the get a budget posts. It's the only way.

Then be efficient with your money. MSE is great for this.

But also, book your holidays much much further in advance, it will save you thousands. E.g booking Turkey for October is about twice the price if booked now compared to January.

You need to work out what the £1100 is going on.

I agree with the previous posters, booking a holiday for next year is a good idea, you could pay it off each month.

It is easy to spend without realising how much it adds up. There is a demotivator tool on MSE which encourages you to add up the extras. A daily coffee, a weekly takeaway, meal deals when you forget your lunch, a magazine etc

None of that would feel extravagant but when you add it up over the course of a year and combine it with other things like subscriptions it can be very surprising.

I find wales to be way better value than D&C. We loved Barmouth when we visited and will try and get back there or Llandudno when we next do a uk break.
Have a look at YNAB software for your budget; it's life changing (I don't work for them but would love to!). There's a long-running support thread on here for it.

Norfolk can be better value too for a holiday.

Don't look at Devon and Cornwall. It costs more than driving to the Netherlands. We are going to Duinrell this summer. Lots of people also go to France with Eurocamps or Yelloh.

A PP has said this already. £300 a month is £3600 a year. You should be able to find a week holiday in the summer with that budget.