Does anyone else feel like this?

[Metallicemma]

Morning,

so on paper we look as though we are doing well- good joint income, nice house, etc etc but the reality is that every month is a fucjinv struggle!!

we earn well (about 100k combined pre tax ) but it just seems to hit our accounts and then fly out on a whole range of shit! We’ve never got any real money left by payday and we have significant credit card balances.

I appreciate that this is a first world problem and there are lots of people in far worse situations, but I’m just pissed off!!

does anyone else feel like this?

You need to look at what you can cancel/cut down on.

Spreadsheet. Top row have columns for ingoings, outgoings. Have rows for each month for at least a year. Map out what you have coming in, and what you have coming out over a year. See how much you have left over when the essentials are paid for. When that is determined, create pots of savings for short term things like holidays, Christmas, clothes, birthdays, and your long term, determine what proportion you want in each pot.

I find it helps to have separate sheets for the pots to enable me to set savings goals for Christmas, holidays etc so I can work out what proportion of left over should go in each pot.

As above, a spreadsheet is one way.

Are tools like the former MS Money still available?

Enter all your regular payments for mortgage, bills etc and get in the habit of adding your spending from shop receipts etc at the end of every day. You can use the system's categories for spends like food, housing fuel etc and create your own. Groceries - Alcohol showed where a helluva lot of our, at least adequate, income was going.....

I feel the same

I think there are a lot of people in the same boat as you but not me. We bring in less than half your income but we don't live in a fancy house and are perfectly comfortable. Living in Scotland helps massively. Much cheaper up here!

The big cost difference across the country is housing and commuting.

If I were my younger self today, living in Northampton and commuting to London, my mortgage would be c£2k/month and another £700 for a season ticket to Euston (only - no travelcard).

Plus car parking unless I parked remotely and cycled the last mile.

Well there are mortgage, bills, council tax, commuting/car costs, private health and dental insurance, pet insurance. I don’t know which of them you have but they all can mount really easily quite high and that’s all before cost of food.

You need a budget! YNAB revolutionised my spending

I feel the same. We bring in about the same between us. DH more but he makes sure we have the same spending money yet I’m constantly in my credit card. I’m paying off our holiday at the moment though which is eating into it. We had shopping delivered the other day though and the amount of stuff I’d ordered which we didn’t need was stupid so I’m going to have a look at that.

I don't think Money's been around for a while, I swapped to YNAB and love it.

It’s really to do with one thing - whatever your income, never live above your means.

Get rid of that credit card debt as quickly as possible. Could you move it to a 0% interest card?

good income here, not as high as yours but we:

have a cheap run around car
no credit card debts
small mortgage
hardly ever eat out
buy charity shop clothes
shop at Morrisons!
no gym/spa memberships
spend spare time walking/cycling/gardening
one cheap holiday each year

We were comfortable and then our mortgage went up by nearly £600 a month, still comfortable but earning the amount we do I have to think a lot more about budget and saving up for things than I expected

I feel the same and am concerned as the main breadwinner and about to be put on a PIP. We earn good wages but due to having got a new car the BIK is off the chart! I have 3 children and needed a bigger car. Having a tracker mortgage payments have done up significantly and we’ve had to borrow
on it so mortgage payments are astronomical. Our energy bill was in arrears and went from
£250 to £800 pm which we’ve cleared but bills still at £450 per month.
weve never scrimped but giving kids music tuition and clubs and maths help it all adds up. We’d have to sell the house if I lost my job so losing sleep! Dont want to downsize until the kids have left home (in about 6 years time) but if I don’t get a new job soon ….if I’m fired I could also be liable for up to 6 payments on the car!!

You're not alone, I've just refreshed my budget, and we should have a very healthy spare amount left over BUT;

Gas and electric has gone up again
My food bill has doubled from when I did my budget 2 years ago
Youngest has an expensive school trip which I'm paying down monthly
Clothes price has gone up just when hitting teenage years and we're buying 4x adult sized now and the season has changed.
Kids need new shoes - which are now £50 a pop if I'm lucky
New a-level course books for eldest came to £50

So it vanishes very quickly!

From similar posts by others who earn your sort of salary, it seems that you, and the other posters, think you are wealthy, as 100k is a huge amount, but the reality is that once rent or mortgage and child care are taken into account, it is actually a very small amount of income.

Budget and plan, and all recorded on a spreadsheet and every penny has to have a job.

same here op , Its absolutely rubbish

Similar income, no debt and we do save each month but I can still relate.

After bills we spend a huge amount each month. Yes I could track it but I examine each purchase and consciously decide the money is worth it.

I have no idea how people on an average income manage. It must be a huge stressful struggle, I know I am fortunate I could cut back if needed.

Yeah we feel the same. No debts luckily. But basically break even every month, despite mortgage being on a low fix still for a few months more. I dunno how we would ever move.

What's your mortgage repayment and are you paying for childcare?

The realities of it is that you £100,000 is heavily taxed and you might not bring much more home than someone earning less and if you have a huge mortgage, car finance, childcare it soon goes.

It takes a while to get you head round budget but just setting aside a day and do it. You need to look forward and predict spending before you do it.

What do you need to spend every month?
What expense do you have in the next 4 months to January?

Work out a plan for the next four months of one off spending (for me that is husbands birthday (£200), hair balayage £180, £400 holiday (kennels and spending),
£100 Weekend away (spending money), dog annual booster (£124), baby shower (£100) (not mine) new coat and boots £300 Christmas £1000

When working out monthly out goings set aside some for haircuts, medicines, school trips, work expenses, parking and tolls, gifts and cards, car wash, entertainment, exercise classes, and so on

As well as the obvious direct debits and so on.

What annual expenses do you have? Car insurance, pets, car service, holidays, birthdays, new phones/ laptops, decorating, gardening, household maintenance, birthdays, Christmas, back to school fund, school holiday fund,

Set up saving spaces in account like starling and siphon off money for holidays in there. I also have a gift space and a dog space and put money in each month. I use starling as unending account too.

Do a zero based budget: you main account should run to zero each month but each penny has a jobs to do.

On pay day transfer money to savings and spending accounts

I have three accounts:
my main account for salary and transfers
Life Savings
Starling for spending and saving small amount to be spent through the year.

In January start afresh
Get rid of credit cards is No 1
No 2 is an emergency fund of £1000 so you never have to use a credit card for a bust tyre or a broken washers

Then do a master plan for 2025!

Hopefully you have nice things to show for it. We have amazing holidays so we are lucky but we have cheaper cars and wear stuff from outlets and vinted.

Someone said you spend your money on one of these: holidays, designer clothes, cars or housewares!! I thought this true!

It’s because it’s not really that much money & doesn’t go as far as you think. Inflation, stagnant wages, high housing costs etc.

50k today is the equivalent to 40k 4 yrs or 27k in the early 00s.

If your housing and childcare costs are high I can see how a lot of your money 'just vanishes' but unless you're already ruthlessly budgeting and controlling costs, there could be room for improvement and you might be able to trim some expenses without noticing a reduction in lifestyle eg cheaper broadband, cancel unused subscriptions, which will free up money to help you get out of debt.

Have a look at:

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