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.

I don’t get this reply. Read the room yes if sitting in company and someone mentions this. She has asks on a forum for help. She doesn’t need to read the room. Whether you think it’s ridiculous or not is irrelevant. If you can’t answer her question then ignore. Seems to me people read posts and take offence as though it’s a personal attack.

I earn £42k take home. £11k is mortgage. There are 4 of us at home and 2 students. I never have spare at the end of the month, but £80 is DH car costs, £90 his insurance, and if I didn’t have to feed anyone else that’d be an extra £600pcm. So for me that’d be £770 for clothes (currently average £2pcm for my clothes!), holidays, mid range wine (current fave £5.25!). I would be comfortable with that. I suppose it depends on what your total essentials cost, and what level of luxury spending you are accustomed to.

Cool story bro!
I think this is rage bait to wind people up who live on far less with more outgoings...

Hardly. And her husband has just passed away?

"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."

OP literally tells us that she has - on top of the pension income - £250,0000! That is significantly more than many of us will ever have. She may be thinking about putting that somewhere where it will generate even more income in interest, but at the moment has access to all of it, so it's not "tied up" at all!

I'm retired, live alone with no mortgage. I have more disposable income now than I did when working full time. My mortgage had been paid off ten years before retirement, so it wasn't that. I don't know.... I'm a few years in now, and I have to look twice every month to gaze in wonder at the amount I have left over after all bills and essentials are budgeted for. My pension is a bit more than yours OP but not hugely so, (and I still have State Pension to come), I would have similar outgoings, without the child/children. That must be it, no kids!!

You will be absolutely fine, especially with the big capital sum as a cushion plus the other investments that I suspect you also have. That is so reassuring.

My advice is - enjoy your wine habit. Go on holidays, treat the kids, whatever, we only pass through here once. I did put a certain amount of pension lump sum into my "fun" account and I spend that with abandon. I add a decent amount to it every month and that's what I use to enjoy life. I don't scrimp on anything, food, heat, etc. After all, it's what I worked hard for all my working life!

People like us are the lucky ones. I don't take it for granted, but there ain't no pockets in a shroud either.

It’s a financial change and a loss of income, a house doesn’t suddenly cost half what it did to run. So it’s a fair question. I’m sorry for your loss op and your injury, when my sister was widowed she had also let her DH deal with finances which meant she found it very overwhelming. She also needed a lot of new clothes as she lost a lot of weight through the upset of watching him die

You can have a decent life on that amount.

If you are worried I think their is a buffer in not spending on wine and flying.

I’m afraid MN isn’t a very helpful place for money advice unless you’re on a low income, op- you’ll just get people who earn less telling you off.

Based on what you’ve said I think you might struggle to maintain this lifestyle on £30k. Have a look at https://www.retirementlivingstandards.org.uk/ which suggests your income would fund a moderate lifestyle- definitely no business class etc.

The MSE budget planner is good. I’d suggest you put everything in there and play with the figures to see what you can cut and what you can keep. £30k is certainly enough for a decent quality of life, it just might not be exactly the same as previously.

I’m sorry for your loss.

Sorry for your loss OP. It must be scary facing life alone now, but you sound very organised and on top of financial matters, so that is positive.

I do think you have a good income as well as very comfortable savings, once you have downsized, so I think you will be absolutely fine. What pp are saying about your life and your expenses changing is true, which is why you probably find it difficult to work out how comfortable your life is going to be. It will take a period of adjustment to this stage of life and you will no doubt be naturally cautious in that time, but I think you are in a good position.

That's more than many with rent & mortgages to pay. Bit shocked you needed to ask

From the bottom of my heart (lost a sister), cut down on your drinking. Otherwise you will be absolutely fine on that amount of money!

Sorry for your loss. Yes it’s enough money. Please reconsider how much you are drinking.

It depends on your lifestyle. There are many situations where that would mean a big change in what you are able to do.

I’m answering as a daughter of someone who has lived a long life but looking at needing residential care. You mention DD inheriting. Think about (get advice about) how that will work. You clearly know how much care home fees cost. If you want DD to inherit rather than any savings going to pay your care home fees think about giving it to her sooner when it makes a difference (such as reducing mortgage costs).

Good luck with your premium bonds. I got £25 this month. Still waiting for anything over £100.

doesn't matter whether it’s good quality wine or white lightning though, it’s still well over the recommended amount. Your body doesn’t care what type it is

So... the OP is bereaved and missing her lifetime partner and you want to regulate her alcohol consumption. Sorry @Preppyprepper you sound like a miserable git.

OP has posted on the right forum ‘Money Matters’.

Is there a forum for ‘Aggrieved, I am surviving on much less, so shut up!’

Or

’OP is an alcoholic but doesn’t know it, but I do!’

All opinions and posts are valid. I am not trying to shut down the debate.

Add up your income and your bills. Then see what you have left for spending money. If its enough then you'll be find. If you have extravagant habits then perhaps not fine.

Not the point of the thread but I love when people assume that just because they're not downing a can of Kestrel before they get out of bed that it means they're somehow immune from liver damage. 40 units of naice wine is still 40 units!

Did everyone read to the end?

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.

Why so worried when you have a huge amount of cash?

You won’t be going on a lot of overseas non-economy flight holidays on that income, but otherwise you’ll be fine.

You will be fine op. Plenty amd plenty savings . Spend on dog walker wine and whatever makes you feel good .

@scoopsahoooy, I actually know this! I am in the wine industry and maybe that is why -

1. I should know better
2. I over consume

She coukd blow 10k on a nice lux holiday and still have 240k left in savings
Or blow 10k a year for nx 25 years :/ enjoy yourself op
Life is for living and you can afford it