budget worries - I know I am overthinking

[foldableone]

Hi

Let me start by saying that I know that I am actually doing ok and that I don't want to upset anyone, or make anyone feel that I am out of touch - if you are really struggling financially then this post might not be the one for you....however this is my issue and I just want to get some perspective

So I am now a single parent of a 15yo DS. I have a good job but my income is the only household income. My take home pay is £4454. I have some debts but there is only 16 months to go, at which point I will have an additional £600 per month.

Currently, after all bills, debt payments and essential direct debits are paid, I am left with about £1900 per month. I try to save some, use it for holidays, house repairs or debt overpayments - It always seems to go somewhere.

I worry about money a lot, I thnk it;s because it all lands on my shoulders now. Am I overthinking?

What does the 1900 leftover need to cover?

just food and fun really

You’re not over thinking, it’s normal I think. Especially with this extended chaotic buildup the Labour Party have enabled / encouraged. Unforgivable of them. I’m worried too x

Eta: and given all the ‘rumours’ I think we have good reason to be. But of course all unknown til the day.

And how much are you saving each month?

Seriously, I'd knuckle down for 16 months, pay down the debt as fast as you can, then live.
Holidays etc need to be pretty basis for the next 2 years.

You need to budget in depth for every
single expense, even the annual expenses. Are they covered in you bills?

i do save £150 in a monzo pot for birthdays/christmas etc but it never seems enough does it

I feel like I should feel better off, but I don't!

You need to account for absolutely everything like this. This is how I do ours. Everything has a job!

Me 3100
DP 4100
CB 280
Total 7480
Housing
Mortgage: 1900.
Insurances(life, house): 150
Property tax: 40
Total Housing: 2090
Utilities
Electricity 150
Waste collection: 30
Broadband & TV: 70
Mobile phones x3: 60
Total Utilities: 310
Food & Groceries
Groceries & household food: 500
Dining out / takeaways: 200
Total Food: 700
Transportation
Fuel: 250
Car insurance & tax: 150
Maintenance & NCT: 100
Public transport / Parking: 20
Total Transport: 520
Education & Kids
School books, uniforms, fees: 50
Activities, sports, clubs: 50
Pocket money/treats: 60
Total Kids & Education: 160
Entertainment & Lifestyle
Family outings, hobbies, gifts: 200
Subscriptions, books, etc.: 60
Miscellaneous expenses (haircuts,nails): 60
Personal spends: 200 x 2 = 400
Total Entertainment: 730
Savings & Miscellaneous
Emergency fund / Savings: 2,000
Holidays (monthly allocation): 500
Clothing: 200
Miscellaneous buffer: 260
Total Savings & Misc.: 2960
TOTAL MONTHLY SPENDING: 7,480

I’m a single parent on a similar income to you OP. Rationally I know I’m reasonably well off, but being the single point of failure in my household I budget for absolutely everything. I hate the feeling of not tracking and knowing where my money is going, even if there’s technically enough money to pay for everything each month.

Definitely work out your food spends and create a monthly budget for that. I also work out the annual total cost for non-monthly expenses like insurance, termly club fees for the DC, 6 monthly water bill etc, and put money aside for those each month. Then the same for holidays and house repairs - have a pot for each that you pay towards monthly. Then you know what you truly have left each month for savings and fun money.

I'm in the same general situation as you OP, although I earn significantly less.

So many proposals from the govt have been floated, rejected by backbenchers, and then the next idea is proposed.

I'm sick of hearing about it. Any trust I had in the govt is in tatters. They quite clearly have not a clue what they are doing, and I get stressed just thinking about it.

I have 2 years of my mortgage left and 9 months until ds goes to university. I think I have enough savings to get us to next summer, and then if I lose my job, I'll sell my house, retire (I'm in my 60s) and retreat to somewhere smaller and less expensive in order to help DS with fees.

I'll stop contributing anything to the economy because it just won't be worth the bother. With no mortgage, I can live on (or close to) my pension/tax free allowance.

If you read the post, I’m pretty certain ‘budget worries’ refers to the OPs personal budget rather than the government’s pending one!

@Statsquestion1are you just waiting with a copy of your income to post on every thread concerning budgets? Why? Its very odd.

please don't post that sort of comment on my thread. I am grateful for everyones input

It helps people to understand how to budget! I’ve had lots of people benefit from seeing it laid out that way. I keep my budget on my phone. It literally takes 2 seconds!

Yes, you are overthinking it.

How much do you have in savings? You may be less worried about money with smaller savings but no debt.

But most people have far less than £1,900 per month for food and fun, so even if you end up with a bit less post budget you’ll more than cope. The budget would be absolutely brutal to impact you to the point you are struggling financially.

There are some really great budget groups on FB- the 2 I recommend is Dave Ramseyish and my money my goals.
My advice to feel in control is to be in control. Give every pound a job- look into a zero based budget, sort your debt out, pay your savings first and have sinking funds set up.
I have lots of empathy as a single parent also- without knowing your outgoings I’d say you are potentially in a really good place.

Odd that you feel so strongly about a question! I won't post again. Good luck!

£1900 a month for food and fun is a huge amount for 2 people

in a single parent with a similar take home pay - no CMS or child benefit - I have about £1300 for me and 3 kids after bills which has to cover food, fuel, fun money

I would suggest downloading an app - track all spending against your £1900 and then decide from there which might be cut back on if you had to

£1900 for food and fun? That’s more than my monthly salary. I think you could realistically half this and pay the debts off quicker.

I understand it feeling hard when everything’s on you and there being nobody to shoulder the burden but do you think having the debt is also contributing to your anxiety? I agree with others that with so much disposable income it would be a good idea to throw more money at the debt. The quicker it’s gone the quicker you can save much more than you are now (perhaps for your son’s university costs?).

Do you have critical illness and income protection cover? That may ease your worrying.

Amazing and impressive budgeting! Good for you and thanks for sharing - it’s really interesting x

OP, I think you’ll benefit from breaking your budget down to a really granular level, like @Statsquestion1
I think it’ll give you visibility and so control.

I just use an excel spreadsheet but I’ve heard good things about ‘YNAB’ budgeting software.

Bottom line is that in your shoes I would budget rigorously, get rid of that debt ASAP and then save that £600 a month into a stocks and shares ISA for your future.

I think it’s normal to worry about money and with inflation cost of living government budget coming up I don’t know many people who are completely ok but can you maybe be a bit more specific what you are worrying about. What kind of debt is it? You say you have 16 months to pay. It might be better to clear it quicker.