Monthly disposable income & what's too little?

Monthly disposable income & what's too little?

Guys, this relates to my new car thread in the DAAM section somewhat.

After paying for my mortgage, my (new) car loan, and all my other bills (including food) every month I'll be left with approx. 700 euro spending money for 4 weeks.

This is both my socialising money and my just in case money.

Would people consider this a lot, a little, or about average? I'm single and have no commitments.

I realise it might sound a little stupid because your overall salary is important, but I wouldn't mind some other people's perspective on this.

Have you seen on a similar issue?

I have thanks. My issue is cold feet really. Right now I have no car loan and 300 euro a month more spending money. I'm worried about leaving myself tight every month and was just interested in hearing people's views, bearing in mind everyone has different lifestyles etc...

Perhaps you could post details of your net/take home income and your main weekly/monthly/annual expenses to give a clearer overall picture? As far as I can see there are no rules of thumb or averages here. Apart from varying widely in terms of relative income people also vary widely in terms of living a lifestyle above, at, or below their means/income.

It's not too much I guess but it all depends how you spent it.

IE: I have a fair bit of disposable income once all outgoing are accounted for but I recently looked at what I was spending money on and saw I was spending well over 200 euro a month on cabs - Even though I have a house in the heart of D4!!!! and work in town.

I was also spending the same on getting nice take out food delivered and wasting even more by shopping in Spar or whereever even though there's a Tesco nearby.

So it was off to Tesco with me, much more home cooking and I now cycle to work. All in all it leaves me with I'd say at least an extra 4 to 500 a month to spend on other stuff, save more or put towards a holiday or whatever.

While I'd say 700 isn't too much you do have the car and the house to run and your payments are going towards something solid.

However, on such a limited budget if I was you I'd see where you can save cash on things without suffering or becoming a skinflint so it can allow you to go out on the lash or a nice meal with the bird, buy new clothes or whatever without worrying about it.

Save on the waste so you can enjoy the money more. Even things like read the paper on your break work instead of buying it automatically saves you the best part of 30 euros a month which is a few pints out or whatever with no noticable loss to your quality of life.

Okay...here it is.

Incomings
Net monthly Income - 2217

Outgoings
Car Insurance - 100
NTL - 17.50
Broadband - 25
Phone - 30
ESB - 30
Food - 200
Petrol - 100
Health Insurance - 22.60
East Link Toll - 29
Mortgage - 585 (without taking TRS into account which hasn't been applied yet).
motor Loan - approx 287
TOTAL - 1420.43

Leaving a monthly disposable income of 796.57 or 199.14 per week.


Obviously I was wrong with the 700 euro pm figure in my original post.

Can't see anything outrageous there and short of shopping around for better deals on any of the individual expenses I can't see much room for savings. A few specific suggestions:

Car Insurance - 100

I presume that you shop around annually for the best deal?

Phone - 30

If you make mostly off-peak local, national or UK calls then perhaps something like UTV Talk (all such calls are free) or eircom talktime etc. might save you a few bob. Mind you might only yield c. €5 p.m. savings... Make sure that you're not paying equipment as opposed to line rental unnecessarily (c. €2.50 p.m.).

Food - 200

May be scope for savings here by shopping in Aldi/Lidl/Dunnes rather than more expensive stores which may be more convenient but cost more.

Health Insurance - 22.60

Make sure that you are getting the 10% group discount even if it means, say, sticking a tenner in the local Credit Union so you can quote them as your group scheme to avail of it. Shop around. I've generally found BUPA cheaper (and better in terms of service) than VHI for equivalent cover. Vivas may offer even better value for certain schemes.

Mortgage - 585 (without taking TRS into account which hasn't been applied yet).

Does this include mortgage protection life assurance and home insurance? If you bought these from the mortgage lender then chances are you can get a better deal elsewhere. Shop around. You can apply for mortgage protection life assurance [broken link removed] if you haven't already applied for it.

You don't mention other expenses such as mobile phone, waste disposal charges etc. Are you sure that the list is almost comprehensive.

Think you're doing well personally although as clubman says it really depends on your lifestyle etc. That 700 seems to be basically your luxury money as you've already accounted for food and bills. It's up to you then to decide if your luxuries are going to be nights out/savings/rainy day fund/house/........
You don't mention other items which might be an annual expense such as car servicing/repairs, TV licence, rubbish charges and so on. Where do you account for these?

Janet's contribution on how she budgeted/managed her money is worth reading.

Hi Clubman,

My present car insurance is about 650pm. I can't change my present insurer until next year as I've just renewed on my present car but it'll go up to about 950 with the new purchase. So that's 10 monthly payments of approx 100.

Good call with the phone. Again, I'm using approximations. Phone rental split by two plus whatever calls I make. It's a guesstimate to be honest.

I already shop in Aldi whenver possible but I think 200pm is about right. Albeit I could probably save a few quid alright.

Actually...the 22.60 si not health insurance. My mistake. It's the mortgage protection life insurance figure. We got that (and the mortgage) through REA.

Waste disposal charges etc are paid on a yearly basis. It's covered by my management fees. I've paid them so I'm not including them in my monthly outgoing.

In my own mind I don't think I'm that frivelous with money. I'm a pessimist at heart and want to be sure that I'm not hurting myself badly before taking on a car loan where I've had none previously. Old car at present.

Sorry Janet. missed your post.

TV license is paid this year so not a monthly expense.
Car service is a good point. But again it's a twice yearly thing so I'll deal with it that month

So it's closer to 790 pm luxury exspenses...and for what it's worth I'll spend it on going out and clothes the odd time. Just enjoying myself really. Oh...and saving of course what I can every month to have a slush fund, although the idea is to pay off my car loan as soon as I can so I'll probably overpay whenever I find myself with money left over to kill it in as few years as possible.

That's good to hear that you think that's reasonable though. I'm just trying to use other people as a gauge on where I am.

When budgeting you should take into account both ongoing monthly expenses as well as annual expenses (e.g. TV license, management charge etc.) to get an overall clear picture of your finances.

Gee, thanks Clubman, took me ages to type that lot

I agree with clubman that your budget must include annual items. I would suggest you do a weekly/montly budget then ask yourself what other costs/spending will I incure between now and this day next year. Do this and you will allow for Birthdays, Christmas, special Occasions, Car repairs, House repairs, illness (now that you are not insured for it), holidays, car replacement. Yes! 'Car Replacement' or do you want a car loan for every car you buy between now and the day you stop driving?
The amount you can afford to borrow is less than the amount you HAVE BEEN saving for the past 6 to 12 months. and that's provided those savings do not include savings for annual expenditure (e.g. Maintenance fees, hols, etc.)