Our January 2018 Budget Report

Our January m Monthly Budget Report Bunchy the Budgeteer

It’s time again for me to share with you our monthly budget report. Can you believe it’s now February? I’m sure time moves faster as we get older! 

From a financial point of view, January can be a difficult month. Excesses in Christmas spending and a spike in credit card borrowing can leave many people feeling the pinch when January arrives. You can change this, though.
 
By designing a realistic budget focused on careful spending and saving, you’ll find that one month holds no more money stress than any other. Make sure, if you can, to make some room in your budget for some of life’s little pleasures too!
 
You can’t protect yourself from every unexpected expense (just look at our miscellaneous category!) but by making and following a budget, you can really reduce your money worries.
 

Here’s Where January’s Income Went…

For new readers: I use percentages, instead of monetary amounts. This is both to respect my husband’s wish to keep our income private and in case you want to compare how much of your income goes to your own categoriesAs your income will be different to mine, me using percentages should be more helpful to you.
 

Our January Income Had a 3.6% Boost Because We:

  • sold our old car for scrap.
  • accumulated Nectar points (which we put towards our grocery shopping, enabling us to use the cash we saved, to treat ourselves to a takeaway pizza!).
takeaway pizza image
Photo by Kristina Bratko on Unsplash

January’s Outgoings and Our Monthly Budget Categories:

 
(Shown in percentages of January’s total income, rounded up or down to keep things simple)
 

Mortgage: 25%

Council tax: 6.7%

Gas and electricity: 3.6%

Water: 2.5%

Groceries (Includes food, toiletries, and household needs): 8.7%

We have a tiny sum left in our grocery budget. As this category is tight, we’ll roll the surplus over into next month’s grocery budget.
 

Internet and landline: 1%

Life assurance: 1.4%

Mobile phone bills: 0.5%

My dental insurance: 0.6%

Mortgage overpayment: 0%

Pensions (besides to the small automatic deduction from Mr B’s wage): 0%

calculator and paper with monthly budget report

Sinking funds: 14%  

From these sinking funds, we spent 9.3% of our total January income on:

– our annual VPN subscription.

– unexpected dental treatment for Mr B.

– a new light bulb pack for our car and sealant to try to repair where water is getting in.

– birthday and late Christmas gifts (and experiences) for family members.

– a second-hand window vacuum.

Holiday savings: (‘vacation’ ) 7.2%

We’re excited because it’s the first time in a few years that we’ve been able to save towards a holiday!
couple sat on boat deck
Photo by Evren Aydin on Unsplash
 

Emergency fund savings: 18%

This month we completed our goal of having six months of expenses saved in our emergency fund! It’s been a hard slog. Yes, we’ve gone without, but the peace of mind is worth it. I’d be more secure with more put away, but if we don’t switch to investing soon, we’ll be looking at a difficult retirement.
 

Personal spending money (which has to cover clothing, haircuts, makeup, and gifts for each other on special occasions): 8.6%

I haven’t written about where our personal allowances go every month, but tell me if you want me to show you how I spend MINE.
 

Petrol: 1.4%

Miscellaneous buffer: With January’s income, our total miscellaneous spend was 3.4%. That’s  four times what we set aside for unplanned expenses! This was due to paying for:

– the final vet bill for the cat we cared for.

– taxis to work for Mr B.

Mr B cycles to work in the finer weather and I drive him during the colder and wetter months. This week, though, I’ve been ill with yet another cold and complications of Crohn’s disease.
 
bicycle propped up against settee
Photo by Yulia Chinato on Unsplash
When we ran out of money in the miscellaneous category, we covered the overspend from the grocery and household categories. Not ideal, but no debt incurred.
 
When looking at how much and where you’re spending money each month, remember that your life and requirements will be very different to ours. Sharing our budget gives you insight into how we budget and may give you ideas for your own.
 
So, how was January for you? Are you experiencing the post-Christmas pinch? My waistband is pinching! How do you divide up your money each month? Do you need to make a budget?
 
I love hearing from you and want to grow this community. Don’t be shy! Comment, contribute to the Facebook page, send me a private message or all three! I will always try to help you.
 
Lisa aka ‘Bunchy’

Our December Budget – How Did We Do? – Christmas Edition

Hands holding smartphone by laptop - Five Possible Solutions to Crippling Debt – Part Three - Individual Voluntary Agreements

Christmas is over for another year but now is actually a good time to touch on Christmas budgets.

It feels like ages since I’ve written a proper blog post. Like many people, I took advantage of the Christmas period by spending quality time with family and relaxing.

I have lots of blog posts in my head for 2018 but first wanted to share how our monthly budget went. This is for your entertainment, encouragement, (or to compare with – and be glad that you’re doing better!).

For anyone who celebrates any of the winter festivals (be it Christmas, Hanukkah, Eid, etc,) you no doubt encountered costs that fell outside your typical monthly budget. We’re no different, How we all manage those additional costs will vary, however.

For new readers, you’ll see that I use percentages, rather than monetary amounts. This is both to respect my husband’s wish to keep our income private  (it’s a low income) and to give a better comparison, per category, for whatever size budget you’re working with.

Christmas Budgets
Image by Bunchy The Budgeteer

Here’s How It Went for Us

Mr.B’s wages were on the lower than usual side, due to him having some sick days in December.

December’s Outgoings and Our Monthly Budget Categories – (shown in percentages of December’s net/after-tax income) :

  • Mortgage: 23%
  • Council tax: 6.3%
  • Gas and electricity: 3.4%
  • Water: 2.4%
  • Groceries: (Includes food, toiletries, and household needs) 8.8%
  • Internet and landline: 1%
  • Life assurance: 1.3 %
  • Mobile phone bills: 0.5 %
  • My dental insurance: 0.6%
  • Mortgage overpayment: 0%
  • Pensions: 0.3% (In November 2017 Mr.B was been enrolled in his workplace pension. The amount taken from his wages is the compulsory minimum required. The percentage we’ll be adding when actively investing in our pension funds will be higher).
  • Holiday savings: (‘vacation’) 0%
  • Emergency fund savings: 31%
  • Personal spending money (has to cover clothing, haircuts, makeup, and gifts for each other on special occasions): 8.1%.
  • Petrol: 1.3%
  • Miscellaneous/unexpected buffer: In relation to December’s income, our total miscellaneous spend was 0.8%.
  • Sinking funds: (the linked article explains these): 12.5% allocated to our short-term savings.
  • 7.5% of our total December income was then spent from the sinking funds on the following:
    1. Some Christmas and January birthday gifts.
    2. A new hot-water bottle and cover!
Our December Budget – How Did We Do? – Christmas Edition
Image by Bunchy The Budgeteer

Now, I have to say that the percentage we spend on Christmas gifts is much lower than your average family. That’s due to:

 

  1. As a couple, we don’t celebrate Xmas, yet have felt obliged by our family to get involved, even on a small scale.
  2. The gifts we buy for each other come from our individual ‘allowances’, so that doesn’t show up in the figures.
  3. My mother-in-law puts together the most amazing hamper for us each year. While it’s not food for ‘proper’ meals, it’s packed with ‘naughty’ food and plenty of booze!
  4. I’d predict that we spend less than half on gifts for people than what the average person spends. We only buy for parents/step-parents, my grandmother, and our 10 nephews and nieces.

December 2018 will be different. We’ve decided that December 2017 was the last year that we celebrate Christmas at all. We haven’t yet told all the family. My mother-in-law has insisted that she still wants to give us a hamper because it brings her joy. I’m not going to rob her of that. We aren’t doing it for monetary reasons. The money we would allocate to the people we buy gifts for will go towards their birthday instead. This means we’ll be spending the same amount on each person, but yearly rather than twice yearly.

How was December for you? How do you divide up your budget? Do you need to make a budget? Did you spend more than you’d intended? If so, why? I’d love to know how everyone else did.


You may also be interested in reading: ‘How to Save Money on Christmas 2017‘, ‘A Peek into Our Monthly Budget‘, which is the template we use each month, ‘Are You Within The Recommended Guidelines For Your Monthly Expenses?‘, and ‘Money – Where On Earth Should I Begin?


I love hearing from you and want to grow this community that is gradually getting bigger. Don’t be shy! Comment, contribute to the Facebook page, send me a private message or all three! I will always try to help you.


Lisa a.k.a ‘Bunchy’

Our November 2017 Budget – How Did We Do?

Our November 2017 Budget - How Did We Do?

It’s a little late, but I said I’d show you how our November budget went and how we did, so here it is!

November was an unusual month. We’ve been looking after a neighbourhood cat whose owners were unable to pay his vet bills. The poor cat had been wanting to spend a lot of time at ours. With me being a qualified Veterinary Nurse, I was quick to see that something was wrong with him. Three vet visits, medications, sedation, and blood tests revealed that he was F.I.V positive. and he had to be euthanised at the beginning of December. It broke our hearts, but we don’t begrudge paying the bills.

We can’t afford to have an animal of our own full-time. Our income will reduce in April unless I can make a success of a home business I am working on. It’s important to us to have our animals insured and to have the best food and veterinary care. With this in mind, we’re not yet able to fit this into our monthly budget. Others may think we were mad to use our Emergency Fund savings on an animal that wasn’t even ours. There wasn’t a moment of hesitation for us though and we knew that it wasn’t going to be an ongoing cost. it highlights what I’ve said before, that personal finance is personal.

 3.1% of our November income was extra income from selling some stuff from around the house. One of the items sold included our secondhand PlayStation. We’d bought the PlayStation by selling our secondhand Wii. We’d bought the Wii from selling other household items. You get the picture of how we usually manage to buy ourselves ‘new’ things!

Our November income was also bumped up 9.9% above the usual amount by receiving an ‘extra’ government payment. This was because one of the two months of the year when, due to receiving my payments fortnightly, I receive three instead of the usual two payments per month.

Our November 2017 Budget - How Did We Do?
Image Photo by Volkan Olmez on Unsplash

 

November’s Outgoings and Our Monthly Budget Categories – (shown in percentages of November’s total income) :

 

  • Mortgage: 20.3%

  • Council tax: 5.5%

  • Gas and electricity: 3%

  • Water: 2.1%

  • Groceries: (Includes food, toiletries, and household needs.) 10%

This was more than we usually spend on groceries. We had some money left over from October’s grocery budget and spent that. If we’d have been frugal and used the usual amount, we could’ve put the extra amount to our Emergency Fund savings. Yet, we’re human and it was a tough month. I was ill with a cold (which I’m still fighting and now Mr.B has gone down with it). So we were lazy and treated ourselves to a couple of takeaways. We also threw some of the cat products we had to buy into our grocery bill, rather than take more from our Emergency Fund.

 

  • Internet and landline: 0.9%

  • Life assurance: 1.2%

  • Mobile phone bills: 0.5%

I went over on my mobile phone bill and so covered the overage with my personal allowance.

 

  • My dental insurance: 0.5%

  • Mortgage overpayment: 0%

  • Pensions: 0.9%

Mr.B has now been enrolled in his workplace pension. This is the compulsory amount that came out of his wages. The percentage we’ll be adding when actively invest in our pension funds will be higher.

 

  • Sinking funds (the linked article explains these): 11% allocated to our short-term savings.

5.8% of our total November income was then spent from the Sinking Funds on the following:

  • Our six-monthly dental check-up. I will get back half of what we spent, as I have dental insurance.
  • Some winter car items and we got a punctured repair on one of our car tyres.
  • A couple of Christmas and birthday gifts.
  • Some new and second-hand items for the office and kitchen.
  • Holiday savings: (‘vacation’ to U.S. readers) 0%

  • Emergency fund savings: 34%

  • Personal spending money (has to cover clothing, haircuts, and makeup): 7.1%

  • Petrol: 1.1%

  • Miscellaneous buffer: In relation to November’s income, our total miscellaneous spend was 4.5%.

4.5% is almost seven times the amount we usually allocate for unplanned expenses! This was due to caring for the cat. We added to the miscellaneous category from our Emergency Fund as the expenses arose.

 So there it is! Not a typical month by any means, but we managed. We were still able to put a decent amount towards our Emergency Fund. This was mostly due to November’s income being higher than average, thank goodness!

How was November for you? How do you allocate your budget? Do you need to make a budget? I’d love to know.

You may also be interested in reading: ‘A Peek into Our Monthly Budget, which is the template we use each month, ‘Are You Within The Recommended Guidelines For Your Monthly Expenses?,  and ‘Money – Where On Earth Should I Begin?

 

I love hearing from you and want to grow this community that is gradually getting bigger. Don’t be shy! Comment, contribute to the Facebook page, send me a private message or all three! I will always try to help you.

 Lisa a.k.a ‘Bunchy’

A Peek into Our Monthly Budget

A Peek into Our Monthly Budget

Last month I wrote a post called ‘Are You Within The Recommended Guidelines For Your Monthly Expenses?‘. It covered advice on the ideal allocation of income within a budget, as percentages. E.g. How much of your income to spend on housing, etc.

I thought you guys might find it interesting to see how we divide our money month to month.

Due to having budgeted for so long, I pretty much know how much money we need to put into each category every month. Due to this, we have an ‘ideal’monthly budget template that we begin with and this is what I’m going to share further on.

This month (or even last month!) hasn’t been ideal, as we’ve had a TON of unplanned and emergency expenses. If you’re human, you’ll know what I mean. You may start with good intentions and then BAM! It all goes Pete Tong (that’s ‘wrong’ for those not familiar with Cockney rhyming slang). I’ll be sharing our expensive October and November with you at the end of the month.

Our Income

Mr.B is not on board with me sharing our exact numbers. To show you how we divide our income, I’ll have to use percentages.

There are many conflicting pieces of data about what the average income is. We’re a two-person household. Yet, our income is lower than the median average 2017 individual UK salary. I’m not basing that on the ridiculous sources where the mean average gets used. Mean averages take into account a few earners receiving huge salaries. Most people will never have those incomes.

Our income consists of Mr.B’s wage, my very small government help (due to medical conditions). We also receive a small amount of money from somebody paying us back for a loan, plus a £3 a month reward from our bank. At times we may get extra money if we sell something we no longer want, but otherwise, that’s it.

NB: Twice a year I receive three government payments instead of the usual two payments per month. This is due to receiving my government help on a fortnightly basis. If you get paid every two weeks, this will happen to you too.

Our Outgoings and Our Monthly Budget Categories – (shown in percentages of monthly income) :

  • Mortgage: 23.1% 

  • Council Tax: 6.3%

  • Gas and electricity: 3.4%

  • Water: 2.4%

  • Groceries: (Includes food, toiletries, and household needs.) 8.2%

  • Internet and landline: 0.8%

  • Life assurance: 1.3%

  • Mobile phone bills: 0.5%

  • My dental insurance: 0.6%

  • Mortgage overpayment: 0%

  • Pensions: 0%

  • Sinking funds (the linked article explains these): 12.5%

  • Holiday savings:  (‘vacation’ to U.S. readers0%

  • Emergency fund savings: 30.8%

  • Personal spending money (has to cover clothing, haircuts, and make-up): 8%

  • Petrol: 1.3%

  • Miscellaneous buffer: 0.8%

Some of the above categories need some deeper explanation, but I’ll go into that in future posts.

Your own allocations will likely be very different to ours. That’s because it’s likely that you’re in a different financial situation.

Remember that things are always changing for most of us. For example, I have plans to begin a home business providing online services. If I can manage this with my health limitations, then our income will increase. Yay!

But, next Spring, our income is going to reduce. Also, we’ll have (all being well) completed our Emergency Fund and begun investing. This is why, though a budget template is useful, all our circumstances can and will change.

Where is your money going every month? Take a moment to find out and ask yourself if you’re happy with what you discover. Are you meeting your financial goals? Do you need to set some goals?

I love hearing from you and want to grow a community. Don’t be shy! Comment, contribute to the Facebook page, send me a private message, or all three! I will always try to help you.

Lisa a.k.a ‘Bunchy’

Why Having an Emergency Fund Will Help You to Sleep Better

Why Having an Emergency Fund Will Help You to Sleep Better

What almost all experts will tell you is that before you decide upon any other saving goals, you must first be working towards building an emergency fund (sometimes known as a ‘rainy day’ fund).

What Are Emergency Funds?

Emergency funds are predominantly a way of protecting yourself against a loss of income; which for most people will be a job loss. Of course, there may be other circumstances that will necessitate tapping into your emergency savings, such as unexpected and expensive car repairs that your usual monthly budget cannot cover.

Is an Emergency Fund worth Having?

Living ‘paycheck to paycheck‘ is a stressful existence and if using debt is your only option for dealing with a major financial incident, then anxiety levels can begin to creep up and affect your quality of life. Nobody wants to be lying awake at night worrying if a cheque is going to bounce.

Over the past two months, we’ve had to dip into our emergency savings for major and unexpected car expenses. It’s been a pretty stressful time, and although we hadn’t quite reached our goal of what we wanted to have saved in our emergency fund, the car debacle was a hell of a lot less stressful than it would’ve been had we not had some money in the bank to pay for not only the extensive gear-box work we had done but eventually a new (used) car!

What Constitutes an ‘Emergency’?

Generally, something is an emergency expense if it’s:

a) unplanned

b) necessary and

c) urgent.

So your child’s birthday wouldn’t be classed as a good reason to take from your emergency fund, as you know exactly when it’s going to occur each year!

How Much Do I Need to Have in My Emergency Fund?

Some finance specialists advise that you have an emergency fund equal to three to six months’ worth of your usual INCOME, whereas some recommend that you have three to six months’ worth of your usual monthly EXPENSES (or outgoings) saved.

If you’re going to use your expenses to calculate your emergency fund savings goal, then you may want to know that some professionals recommend that you include only vital expenses (so this wouldn’t include any of your usual recreational or discretionary spendings unless you’d end up with a penalty that would cost you more than what you’d save by cancelling it – such as a mobile phone contract).

You may also want to consider if, during whatever financial emergency you’re going through, you’ll want to temporarily pause saving, making additional debt repayments and any investing towards retirement.

Of course, you’ll be able to reach your savings goal of having a complete emergency fund much faster if you’re aiming for covering only vital expenses. However, for those on a low income who don’t have much left to spend on non-essentials each month, there may not be a lot of difference between six months of income and six months of expenses!

Consider Having an ‘Emergency Budget’

When we first decided what our absolutely vital minimal expenses were, we looked at our usual monthly budget and went through each category and expense and subtracted any budget item that we could easily cancel without penalty if Mr.B were to lose his job. By doing this, we developed our emergency budget and were quickly able to work out how much (or little) was required to hit our goal of six months of expenses in the bank.
If the proverbial hits the fan then we can follow that bare-bones budget.

If you hate the idea of tightening up on your spending habits during say, a job loss, you may prefer to have three to six months of expenses saved, but be aware that if you don’t reduce your spending during the period of unemployment (or going from two incomes down to one) and you still haven’t found another job at the end of those three or six months, you’ll face problems. By cutting right back, you’ll be able to make that emergency fund last as long as possible and furthermore, you’ll have less to put back into the emergency fund once the storm has passed.

Do you have an emergency fund? If so, how long did it take to save? How many months of income or expenses did you decide upon and why? If you don’t have an emergency fund, is it something you’d like to achieve? If not, how will you deal with large and unexpected expenses or a loss of income? I’d love to hear from you!

For more on saving, check out: Are You Within the Recommended Guidelines for Your Monthly Expenses?

I love hearing from you and want to grow this community that is gradually getting bigger. Don’t be shy! Comment, contribute to the Facebook page, send me a private message or all three! I will always try to help you.

Lisa a.k.a ‘Bunchy’

Are You Within The Recommended Guidelines For Your Monthly Expenses?

Who is Bunchy the Budgeteer? Who is 'Bunchy'?

Are you confused by all the financial advice out there, telling you how much you need to be saving each month? I know that I used to be! Would it help to know if you are within the recommended guidelines for your monthly expenses?

 
Have you got into a spin about what percentage of your income you should be investing into a pension? You know, so that you’re not eating cold baked beans in your old age (unless that’s how you roll)?
Do you ever wonder if you’re spending far too much of your income on things you enjoy? Are you worrying that those items are costing you more than the actual price tag – like your financial health?
Stressed because you can’t save what (insert financial guru) recommends you save each month due to struggling to afford the basics? (I know, I’ve been there) Well, please read on, friend…
Let me first say that there is a no ‘one size fits all’ plan to personal finance. It’s personal finance after all! I DO believe that there are good rules of thumb that we can go by. Tweak them here and there to suit your particular circumstances. That means altering things to benefit your financial situation, not to satisfy your spending desires!
 
I’ve read a lot of advice on what percentage of ones’ income should go towards various categories. Some experts vary in how they split up the categories, but for the most part, they tend to fall into these areas:
 
Saving and Investing There’s a difference. Read ‘A Beginner’s Bite-Size Guide to the Differences between Savings and Investments‘.
Debt-repayment (over and above what must get paid each month. Things such as a mortgage payment and paying the minimum balance on a credit card).
Vital household and living expenses.
Recreational/discretionary spending.
 

Let’s Start with Savings

 
General advice tells us to aim to put 10-20% of our net income towards savings &/or investments each month. Net pay is our ‘take-home’ pay, after tax and National Insurance gets deducted. What most experts will tell you is that your first goal is to have an emergency fund. Check out Why Having an Emergency Fund Will Help You to Sleep Better‘.
Once you’ve saved/are saving your emergency fund, consider other savings:
Short-Term Savings
For expenses or purchases you expect to happen in less than five years. For example, a family holiday or Christmas.
Medium-Term Savings
For expenses or purchases you expect to happen within five to 10 years, e.g. a new car.
Longer-term Savings
For expenses expected to occur in ten years or more, such as saving up for a child’s university tuition.
You may decide that you instead want to invest long-term savings, to maximise its chance of growth. Due to not needing the money for several years, it has a better chance of weathering any fluctuations. For example, if invested in the stock market. There is always a chance of losing money in investments. If you’re not willing or able to risk this, then a savings vehicle may be a better option for you.
 

Have You Ever Heard of ‘Sinking Funds’?

 
Sinking funds are savings goals for specific purposes. Read my post ‘What Are Sinking Funds and Why Do I Need Them?‘ and then come back. Our sinking funds have saved our skins and our budget many a time!
One final note before moving on to the next category. Some financial experts say that you should forget having any type of savings until you’re out of debt. This doesn’t include your mortgage. Some suggest you have a safety net of one month worth of expenses saved. Others recommend that you build your emergency fund at the same time as paying off debts.
Whatever you decide is the best option for you will depend on several things, including:
 
  • How secure you feel that your jobs are.
  • How tolerant you are to risk.
  • During a period of unemployment or illness, how your debts would affect you if you hadn’t reduced them.

Investing

For most people, this will mean the money that they save into their pension plan. It could also include other investments such as:
 
Investing in the stock market.
Buying a second property.
As mentioned before, you may also want to invest money earmarked for long-term savings. It can grow more than it could in an easily accessible savings account, but there’s more risk.
Experts recommend putting 5-20% of your take-home pay into investments/retirement savings. Other experts advise beginning at half your age as a percentage.
Example:
 
You’re 40 and have never consistently contributed to a pension or investment. Therefore, you would invest 20% (half your age) of your income until you retire.
 
The younger you begin saving for retirement, the smaller the chunk taken from your budget! Yet it all depends on how much you want to live on in retirement and what your retirement goals are.
Investing is an extensive topic and you should get professional advice about. Use a regulated independent financial advisor when making such important and long-term decisions.
Debt repayment
 
The advice seems to indicate that we should be putting 5%-20% of our take-home pay towards debt each month.
 
This percentage doesn’t include:
 
  • Your usual monthly mortgage payment (if you have one.
  • Paying any minimum credit card balance – you ‘have‘ to pay or risk additional debt.
Instead, this means, for example:
 
  • Making additional payments towards a mortgage if you want to pay it off earlier. Some financial gurus advocate this. Others feel that there are better things to be doing with your money.
  • Clearing credit card debts or paying off a car finance agreement, etc.

Vital Household and Living Expenses

We’re advised to keep this category of spending between 50-70% of our take-home pay. Though not meant to be an exhaustive list, this category will include things such as:
 
  • Food & household groceries (the basics).
  • Mortgage or rent payment.
  • Council tax.
  • Gas, electricity, and water.
  • Fuel/public transport to get to and from work.
  • Clothing basics.
  • Life assurance.
  • Home (building &/or contents) insurance.
  • Car tax, new tyres, car insurance, and M.O.T.
  • Sight tests and glasses.
  • Prescriptions.
  • Dentistry.
  • Boiler servicing.
  • Necessary hair-cuts.

Recreational/Discretionary Spending

This is where you finally get to have some fun with your money and use it for entertainment purposes!
From my research, advice indicates we try to keep these non-vital expenses between 10-30% of our net pay.
Again, the list below isn’t intended to be an exhaustive list. What you chose to spend your ‘fun money‘ on will be different to what I like to spend mine on, but it may include such things as:
 
  • TV subscription services.
  • Sports equipment, toys, and gadgets.
  • Beauty salon treatments.
  • Restaurants/eating out.
  • Alcohol
  • Smoking and vaping.
  • Days out.
  • Non-essential home improvements.
  • Make-up.
  • Junk food and takeaways.
  • Luxury grocery items.
  • Clothing (above the basics to keep from getting arrested, etc.).
  • Jewellery.
Some financial specialists list the following as non-vital budget items:
 
  • Home internet, landline telephones, mobile phones (and their tariffs). Unless it’s used for business purposes.
I hope that by reading this, you now have a clearer picture of how your spending compares.
If you’re aware of the potential impact of where you allocate your money each month, then that’s great. Whatever you decide to do is going to be very personal to you and your circumstances.
Some people don’t have the luxury of choosing where they prioritise their spending. They may have cut back everywhere possible and still don’t have enough for the basics or for saving. In these situations, it’s not a spending issue that they have, but an income issue. Until that’s improved, they shouldn’t, for example, concern themselves with investing.

Have you calculated how much of your income goes into the categories above? Are you a natural saver or spender? What are your views on prioritising debt repayment over saving or vice versa? Do you have an emergency fund?

 

I love hearing from you and want to grow this community that is gradually getting bigger. Don’t be shy! Comment, contribute to the Facebook page, send me a private message or all three! I will always try to help you.

Lisa a.k.a ‘Bunchy’