Not much spare cash to play with

[spikywhenwet]

Morning guys,
I am trying to get organised for the new year financially. Our current situation is that we are married, 3 kids aged 2,8 and 13. We own our home ( mortgaged) and both work in decent jobs. I am very grateful for what we have and know that a lot of people would be envious of my life - I don't take that for granted.. however I am feeling a little worried about our money and how our budget is going to look for the next 3-4 years.

Our mortgage has increased quite a bit. We don't really want to extend the term as dh is older and will already be 65 when it's paid off. We are also incurring some child care costs, along with the usual cost of living things - everything seems so expensive!

I have spent the last week writing a detailed budget plan. I have been careful to include those hidden expenses - clothes, shoes for the kids, car repairs, prescriptions etc. I am confident that I have covered every single expense. I have also budgeted £120 per week for food although I can actually do it for around £100 if I meal plan. I have also included an amount for birthdays/christmas. We have decided to not include holidays as we can't afford one! We have included a set amount for emergency house repairs - new washing machine etc etc.
After every single thing is accounted for we are left with approx £265 per month as truly/fully disposable income. This seems a very low amount and this worries me. It also makes me feel as though there isn't going to much in the way of fun.
Things will change in a few years when child care costs end and we have created a few debts etc.

I know that I am lucky to be able to make ends meet, but I can't help but feel stressed over it. AIBU?

You feel stressed as it's less than you would like and are used to - that's ok

You are also at the time in life when things are tightest - kids in childcare

But if you have included everything- then theoretically you could save that each month

In your situation I'd have. 100 for long term saving 100 for one or two fun event each month and the test short term saved for extra treats - a couple nights in a glam ping pod for example

It's probably too early to tell. I would test it for 6 months and see if the budget feels stressful or unachievable and see what you end up doing with the disposable income.
Then you can decide if you need any other changes. You might find that it's all fine, or you might want to make a few changes to cut back on spending.
I have no disposable income most months, so it sounds ok to me, but I'm also not a family of five.
Perhaps try allocating the disposable income too? Eg 30% savings, 30% days out, 40%clothes or what you think you'll be spending the disposable income on.

If you’ve really accounted for everything in your budget then that’s actually not too bad. You could also try to make a little more on the side by selling old clothes on vinted etc which you only use for fun things.

is it possible to earn anymore?

The childcare is so much at the time but improves.

That low amount of disposable income would also worry me, if I were a parent in a family of five. Do you have any savings?

Could one or both of you increase your income by taking a second job? Any promotions on the horizon?

As you’ve budgeted for everything approximately 3k per year for fun/other stuff isn’t too bad.
Will you and your DH take some each month as personal spends?
Do you have any savings, if not perhaps save £50 ish per month for longish term savings.