How do you manage your disposable income?

General
1

What are your disposable income spending habits?

After saving and paying off debt and bills, how do you budget what remains? (I’m talking from a perspective of having £500 after paying towards financial goals)

I’m wondering if my mindset towards money is deeply flawed because I already have a list of things to spend my disposable income on before even arrives… there’s also a lot of “impromptu” invites to celebratory events.

How do you spread your disposable income generously amongst category’s such as home goods (functional and decor), clothing, socialising etc

2

I have investments and only spend the juice. That way I don’t feel guilty about it.

3

To progress to your current point, how much of that £500 should you invest? Assuming you spend £0 of your disability income?

4

I budget separately for celebrations to avoid surprises. I track “wants” with prices and a monthly budget!

5

This is so helpful! Thank you. I think I might have to integrate social events into my budget as well.

By reading your pose… I think I’m going wrong by having too many “wants” and wanting them ASAP. Because the way my mind works… there wouldn’t be any money left to save for next month.

6

Make a wants list with prices, set a monthly budget, and buy as you have the funds. Prioritize needs!

7

I allocate a % of extra money after bills to what I value: loans, house fund, discretionary funds.

8

We budget across 11 categories: Savings, Bills, Vacation, Groceries, Christmas, Gifting, Family, Miscellaneous, Household, Car, and Personal spending. We allocate a set amount to each, and any extra goes to savings. The key for us was creating a workable budget rather than just cutting costs, similar to choosing sustainable healthy habits over crash diets.

9

Thank you, how do you separate these amounts though? Is it a tangible separation by cash or do you keep a tab on which category has been spent on via your bank account

10

I keep it all in one high interest checking account. Personally, I like to write it all in a notebook and just keep a running tally for each category. I hear a lot of people use a spreadsheet or an app.

11

Put money into investments so it feels spent. Keep a small emergency fund to avoid liquidating. I use Fina to calculate my average monthly expenses and save three months’ worth for emergencies.

12

Thank you. I think the issue is, not knowing how to invest. I’ve always said I need to pay off my debt and create an Emergency Fund before I learn. Maybe I’m thinking about it wrong