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%

Seagull in flight - A Peek into Our Monthly Budget
PIN ME!

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’

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