Is £30k enough to live off

[Desdemonadryeyes]

I realise it’s a ‘how long is a piece of string’ question but I’d appreciate views. My DH died a few months ago and I think I’m now receiving the amounts which will be my monthly income (got his full works pension for a few months) and surprised to receive an extra £2k on my state pension.

Think I’m being over taxed but that will all be sorted out eventually.

My income is £30,600 per annum after tax. No mortgage. Last year I also won £1950 on PBs which is tax free plus I have other annual bonds that should bring in about £3,200 in interest some of which will be taxable. I’m taking out every year to top up my cash ISA.

I have increased expenditure due to requiring a dog walker following an injury but hope to get that sorted eventually.

I like good food, and mid price wine - drink about 3/4 bottles a week. I run a car. Have lunch out with friends probably once a week. Netflix and cheap Sky package. My yearly outgoings on bills etc is £12,400. Need to add in car and house insurance which are due soon but don’t what they will be yet. Dog walker £3,750 per year 🫣

Never really needed to budget before. DHs pensions covered day to day living expenses quite comfortably and I used my inheritance from my dad for life’s luxuries. And I didn’t need a dog walker. Now I’m alone I feel a bit daunted. My injury means I can no longer fly economy.

I could live for a couple of years on the contents of my store cupboards and freezers. When my DD comes home I pay her train fare and uber journeys. And she then shops for her expensive recovery eating plan.

I’ve lost a significant amount of weight recently so need to update my wardrobe. I do enjoy buying stuff. I really don’t need ‘stuff’ but we only pass this way once.

i intend to downsize when I’ve recovered from my injury, and after paying DHs care home fees hope to have about £250,000 left over to put somewhere to earn some interest.

So I will have about £15,500 per year for food, going out, holidays, clothes, gifts etc. I have got savings I van dip into if necessary but for some reason I don’t like doing that. Think I’ve developed the mindset that I should be saving it for my DD to inherit. But my dad had that attitude and it used to annoy me that he wouldn’t spend money on what he needed to make his life more comfortable.

So is that a reasonable amount to live comfortably?

Thanks for reading.

Only you know the answer to this. I don’t understand how someone with such a detailed overview of their income and spending habits needs to ask the Internet if it’s an adequate amount to live off.

I earn less than that and have to manage.

That’s a LOT of wine!

4 bottles of wine is 40 units a week. The recommended limit is 14. You are massively over drinking.

Is this a joke? I live in less than that and have to pay rent.

I would have thought so as twi of us live on less take home that also with no mortgage left.

Yeah you’ll be fine 👍

Go through your bank account for the last month. How much did you spend? Times that number by twelve - is it less than £15,500?

Yes, this ain’t healthy. How much are you paying for a mid price bottle of wine?

I'd say it's plenty. My household income is 48k and is plenty for a family of 5, which includes two teenagers, two adults and one younger DC.

What nasty replies from some posters.

OP you need to do a detailed budget and then you will know. There are some good templates on moneysavingexpert. The idea is to go through the previous few months statements and assign everything to a category, then also add in the category you might not have thought of (haircuts, option, home maintenance etc). That way you will know your income and outgoings. It sounds like you should be fine, particularly as you can dip into savings to smooth out any bumps.

Have you ever had to budget before if did your DH do it all?

I am sorry for your loss.

£30k AFTER tax, with no mortgage/rent costs, is quite a lot of money for a single person. I would dial back on the wine for health reasons though.

It is quite a change to adapt to. It is hard to work out too. You definitely will be OK on that amount.

After losing your husband how you spend your time will change, as will how you spend your money. As well as going through all the grief, it is a time to do more for you and try new things. If you are worried, pick things to try that are no or low cost.

This will mean changes to what you are spending on so just looking back at what you have spent and making your best guess going forwards won't give you the perfect picture. Go easy on yourself and take your time, you will make the adjustment.

I would put that into ai to work it out for you it’ll do the maths quickly

I have had to make drastic changes to our income and take over the family finances due to my DHs health. Therefore I do understand the considerations you have put forward.

We run our own small business, it is niche and is now our pension.

I do take your question, is £30k enough to live on seriously and in my experience, and coming from a position nearer to yours than the person earning nearer to the NMW, I would say no. But well done you for achieving it or aiming to.

It is my intention to reduce our income as we age and as is I think what you have done, OP.

We do give to charity and have obviously given financial support to DD and DGC.

PPs, OP is obviously not struggling financially but that does not negate her need to plan financially. Money, even for OP is not falling out of the trees, it does need to be planned and managed.

OP like most people does not have thousands and thousands of £s sitting in a bank for constant withdrawal, her finances are tied up in investments, property and savings. She has asked a serious question in my opinion and experience.

Oh and the wine, OP enjoy it. Some do, some don’t, but unless she is an alcoholic, it won’t kill her.

It’s fine if your bills are £12,400

I have a retirement spreadsheet and £30,000 is enough for me to live off and my bills are higher than that

https://www.retirementlivingstandards.org.uk/

My rent is £800 a month and I earn about £31k yet the OP has no rent or mortgage? I'm sorry for your loss OP but your financial situation seems fine, you just need to budget.

@saveforthat, thanks for that link. I did not know of it. Relevant for our times I think.

you need a detailed budget, for example this is ours. Account for everything monthly, even if it’s an annual expense

Me 3100
DP4100
CB 280
Total 7480
Housing
Mortgage: 1900.
Insurances(life, house): 150
Property tax: 50
Total Housing: 2100
Utilities
Electricity 150
Waste collection: 25
Broadband & TV: 70
Mobile phones x3: 60
Total Utilities: 305
Food & Groceries
Groceries & household food: 500
Dining out / takeaways: 200
Total Food: 700
Transportation
Fuel: 150
Car insurance & tax: 120
Maintenance & NCT: 100
Public transport / Parking: 10
Total Transport: 380
Education & Kids
School books, uniforms, fees: 50
Activities, sports, clubs: 55
Pocket money/treats: 60
Total Kids & Education: 165
Entertainment & Lifestyle
Family outings, hobbies, gifts: 250
Subscriptions: 20
Miscellaneous expenses (haircuts etc): 60
Personal spends:250x 2 = 500
Clothing: 200
Total Entertainment: 1030
Savings & Miscellaneous
Emergency fund / Savings: 2,000
Holidays (monthly allocation): 500
DC Savings: 150x 2= 300
Total Savings & Misc.: 2800
TOTAL MONTHLY SPENDING: 7,480

You are welcome. More free and impartial guidance here.
https://www.moneyhelper.org.uk/en/pensions-and-retirement

So you’ve for thirty grand NET, with no rent or mortgage?

Is this question just a disguised flex?

Have a bit more sensitivity, @op

Read the room (mood and living standards of the country).

If you’re looking for a quick fix, you’re spending 10% of your income on wine. Stopping that would save you £3000 a year, not to mention the impact on your health.

we get it you’re rich