Average household surplus
Discussion
A500leroy said:
im new to owning/running a house and wondering if its normal to be close to the edge each month.
It shouldn't be, no, this is why banks have changed their lending to affordability vs just straight salary multiple. If you inherited the house and you don't pay a mortgage then it might well be unsustainable, but most 'normal' houses don't cost lots to run unless its very large?Even if there’s a average it’s impossible to say if that’s actually a reflection when it takes into account very poor and very rich people. Some people may have 3000 spare. Some might have £30
Myself is around £1300 but my mortage is £450 a month, car with fuel insurance etc £400, all other bills about £1000 including food. No kids, not including holidays
That’s on a average household income of £55k
When I first moved out of home I was on 26k and after rent and food etc it was more like £300 left.
It’s so variable everyone will be totally different.
Myself is around £1300 but my mortage is £450 a month, car with fuel insurance etc £400, all other bills about £1000 including food. No kids, not including holidays
That’s on a average household income of £55k
When I first moved out of home I was on 26k and after rent and food etc it was more like £300 left.
It’s so variable everyone will be totally different.
OP
Everyone is different.
Different priorities
Different spending profiles
Different incomes
Different stage in life
Possible inheritance
Etc etc.
All that is important is you have a budget of your spending and understand your income. If as you say your close to the wire each month then a focus on where cash is leaking away - your budget of spending is one thing but then when you look at your actual spend you may find your hugely overspending without realising.
It might be the case you want holibobs run a Goof R full sky package always latest iPhone steak dinners take always wasting cash on coke and hookers and booze.
But your income simply doesn’t enable that - so you cut your spending hard & try to increase your income (overtime second job train up/promotion) if you rent maybe your living in a house that’s nice but in reality beyond your means/beyond compromises your willing to make else where.
If things get really bad spermbank is a useful bit of pocket money.
Everyone is different.
Different priorities
Different spending profiles
Different incomes
Different stage in life
Possible inheritance
Etc etc.
All that is important is you have a budget of your spending and understand your income. If as you say your close to the wire each month then a focus on where cash is leaking away - your budget of spending is one thing but then when you look at your actual spend you may find your hugely overspending without realising.
It might be the case you want holibobs run a Goof R full sky package always latest iPhone steak dinners take always wasting cash on coke and hookers and booze.
But your income simply doesn’t enable that - so you cut your spending hard & try to increase your income (overtime second job train up/promotion) if you rent maybe your living in a house that’s nice but in reality beyond your means/beyond compromises your willing to make else where.
If things get really bad spermbank is a useful bit of pocket money.
Don't worry about averages. I'm 46, renting, and close to the edge every month. My best mate of 35 years (six days younger than me) is retired with a beautiful home, a property portfolio and two Porsches. He made good choices. I made poor choices. It would eat me up if I let it. I don't. Focus on your own journey.
Welshbeef said:
OP
Everyone is different.
Different priorities
Different spending profiles
Different incomes
Different stage in life
Possible inheritance
Etc etc.
All that is important is you have a budget of your spending and understand your income. If as you say your close to the wire each month then a focus on where cash is leaking away - your budget of spending is one thing but then when you look at your actual spend you may find your hugely overspending without realising.
It might be the case you want holibobs run a Goof R full sky package always latest iPhone steak dinners take always wasting cash on coke and hookers and booze.
But your income simply doesn’t enable that - so you cut your spending hard & try to increase your income (overtime second job train up/promotion) if you rent maybe your living in a house that’s nice but in reality beyond your means/beyond compromises your willing to make else where.
If things get really bad spermbank is a useful bit of pocket money.
I’m seriously worried that there are many Welshbeefs unknowingly now dotted around the country.Everyone is different.
Different priorities
Different spending profiles
Different incomes
Different stage in life
Possible inheritance
Etc etc.
All that is important is you have a budget of your spending and understand your income. If as you say your close to the wire each month then a focus on where cash is leaking away - your budget of spending is one thing but then when you look at your actual spend you may find your hugely overspending without realising.
It might be the case you want holibobs run a Goof R full sky package always latest iPhone steak dinners take always wasting cash on coke and hookers and booze.
But your income simply doesn’t enable that - so you cut your spending hard & try to increase your income (overtime second job train up/promotion) if you rent maybe your living in a house that’s nice but in reality beyond your means/beyond compromises your willing to make else where.
If things get really bad spermbank is a useful bit of pocket money.
How may samples did you sell in your hey day and what did you make on it ?
When I bought my first house in 1995, I used to rely on a small amount of my annual bonus (or savings) each month to cover my spend. So let's say I got a bonus of £4000, I would need £300 / month to subsidise the overspend of my monthly income vs outgoings. So yes, it was close. But 25 years on, I can live on my monthly income and save a significant amount each month. Having said that, if I lost my job and couldn't find another job for an extended period, it would be much more difficult than it would have been in 1995.
A500leroy said:
im new to owning/running a house and wondering if its normal to be close to the edge each month.
Oh yes. It's a failure to budget. Been there a few times.
You need a spreadsheet.
You start with a list of known outgoings have 52 columns next to.that column
You type in the amount you expect to go out in each week.against each item.
At the bottom, you put income and then a running total. Ie what's actually planned to be in your bank.
Each week you update it. With actual. And then you can see the months where you have a surplus and the months when.you have a deficit.
The trick is to have a side account and any surplus move there. So you don't spend it when you'll need it later.
Welshbeef said:
tighnamara said:
I’m seriously worried that there are many Welshbeefs unknowingly now dotted around the country.
How may samples did you sell in your hey day and what did you make on it ?
It was £15 from memory or was it £20? I cannot recall but a hand shandy covered some bills. How may samples did you sell in your hey day and what did you make on it ?
A500leroy said:
im new to owning/running a house and wondering if its normal to be close to the edge each month.
You need to budget properly, which means knowing your income and what your spending is going on, to see where the money goes. You need to work on getting it accurate, so that there’s no black hole in there, and then work out where you need to make changes to create a surplus.Once you’ve done that you need to use the surplus to build up at least three months of salary in a savings account.
After that you can start personalising things, such as deciding if you want to continue saving, or if you can afford to run a flat budget to let you get things for the house, and so on.
Pit Pony said:
A500leroy said:
im new to owning/running a house and wondering if its normal to be close to the edge each month.
Oh yes. It's a failure to budget. Been there a few times.
You need a spreadsheet.
You start with a list of known outgoings have 52 columns next to.that column
You type in the amount you expect to go out in each week.against each item.
At the bottom, you put income and then a running total. Ie what's actually planned to be in your bank.
Each week you update it. With actual. And then you can see the months where you have a surplus and the months when.you have a deficit.
The trick is to have a side account and any surplus move there. So you don't spend it when you'll need it later.
Going from a reasonably affluent single guy to a house owning parent is a massive system shock.
I learned to build a 'disaster' fund, those days in cash, nowadays in a separate account.
Also keep a tally of household bills etc set against earnings.
No loans or credit cards, if I couldn't afford to buy it outright how the hell can I afford it with interest payments on top?
Even now I'd be screwed if I didn't work for an extended period.
Use this tool from the Institute for Fiscal Studies to understand where you and your household sit compared to the national.
It takes 2 mins.
https://www.ifs.org.uk/tools_and_resources/where_d...
It takes 2 mins.
https://www.ifs.org.uk/tools_and_resources/where_d...
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