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?

It’s because she wants to wind everyone up with the child benefit at that level of income.

I’ve seen her before.

I would either put some of that towards paying off the debts quicker or towards savings.
As you are a single parent I would be prioritising savings.

I was in a similar position, but with 2/3 of your income.

I thought long and hard, and wrote down my priorities and how much they will eat out of my budget.

1. Mortgage-I chose to overpay significantly, reducing the term from 20 to 8 years
2. 3-6 months worth of salaries as an emergency fund. I get full pay for 6 months in my job, I reckoned another 6 months in savings should cover it.
3. Yearly bills fund: gym, insurances, car service, holidays etc, I set that at £5000/year.
4. I wanted a full ISA I can roll yearly, so £20,000, I challenge myself to roll that for 20 years. This is the first year 😂
5. House fund: I’ve lived here for 10 years. The bathroom cabinet is wobbly and stained, the kitchen table has had it, the sofas are not as comfortable anymore, new bed mattresses, I need a new rug or two. Needs redecorating, someone to tighten the window hinges and change the rubber around it etc. I am doing one room at a time. The budget for windows service, letter box, door lock, paint for the window frames, door mat is £500. For the living room I need a rug, a sofa and an armchair, need to redecorate and better lighting and fixtures, my budget is £4000. So when I have the first £500 I do the outside of the house, when I have £4000 I’ll do the living room etc.

So this is how I do it.

I can’t see how that’s a wind up to be honest. I’m in Ireland where it’s not means tested. Several people have stated that it’s actually possible to get cb on the same income in the uk. But that’s not the initial question I’m answering. I’m answering on HOW to budget which is a question that can be asked and answered by anyone in any country…

You don’t say anything about your real financial position. So for example do you own you house, have a mortgage or rent. Do you have any form of pension, death in service, critical illness cover or long term savings?

You're not overthinking at all. I think we all feel the same no matter what we earn or whether there is two of you or not. It's tough times at the moment but I think you're in a great position. Would definitely ensure you have a safety net as this always makes me feel better 🙂

If you have £1900 left I would double pay if possible £600 so debt is clear in 8mths

you earn a good wage and have left over what many families have as their income to pay everything

so def not scrimping

but I get it scary being on own - only provider

My relationship with money improved a lot when I started budgeting my irregular spends too. Also have a look at Rebel Finance School free course, I found that very helpful.

It’s helpful to think it through, that’s for sure. That’s a good income. Can I ask what job you do? I’m probably overthinking too.

I'm worried too. Early retiree on a fixed pension income.

I think these comments are bob on. Yes you're worried and its being the single point of failure - the "what ifs" more than anything that seems to be causing it. Totally understandable and common.

You've enough resource but you just need to ensure you feel you can stay in control by tight budgeting plus have mitigations/reserves in place should a "what if" scenario occur.

Using some of the £1900 to overpay on the debts/mortgage as a PP suggested may help you feel better.

I agree with this.