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Author Topic: Disposable Income, is there such a thing?  (Read 1973 times)

Stainford

  • Guest
Is there such a thing as disposable income. You get paid, take care of the bills etc but isn't there always something that pops up out of nowhere, e.g car repair, new school uniform for the kids as they ruined the first one. It is a terrible thought of spending "spare cash" on punting only for something annoying to turn up and even more of a headache explaining it to the misuss. For me this time its an unexpected trip to the dental hygienist which will set me back.

vw

  • Guest
Spending on luxuries are classed as disposable in my eyes !

Online RedKettle

yes - but as well as paying bills etc you put something into savings.  After that you have disposable income and any unexpected costs can be met from savings.

Offline 385North

Of course there is such a thing. It's one of the key economic indicators used to gauge the overall state of the economy. It all comes down to your personal financial liabilities and commitments and what's left once all the bills have been paid. I personally have no wife and kids, no loans or outstanding finance on big ticket items like cars, etc., so my disposable income is around 60% of what I earn overall. However I do live in London, so according to those who dabble with statistics my disposable is likely to be higher then elsewhere in the country.

I'm usually careful with my expenditure and save around 40% of what I earn each month, but that's only because when I was younger and getting paid fuck all, I lived life in the red from one month to the next, literally saving maybe £20 a month to slowly pay-off a £2,000 overdraft. And as you say, it only takes something out of the blue like a massive dental bill for root canal treatment, or something, to set you back again after month's of saving. My situation was only improved when I was made redundant, received a large payout and was lucky enough to find another job within a few days. Since then I found that managing money, expenses and creating budgets can actually be quite good fun.

Stainford

  • Guest
I too enjoy managing money and savings and fairly good at it. When something unexpected comes around like this, punting has to be put on hold. I don't like it but I never let my dick do the talking like I used to do.

Offline Bikerboy

Yes there is such a thing as disposable income. However, one man's disposable income is another's rainy day fund or savings.

DI is subjective because we all have different levels of savings/other assets that we think are 'safe' or sensible. If you speak to an independant financial advisor, they will say you should retain 3-6 months living costs in an instant access account. We are also told a high percentage of UK households are only 2-3 months away from a mortgage foreclosure. Thus the subjectivity.

It's an individual judgement call, somewhat simplified for those without close family/dependants and somewhat assisted for some, by regional wage and opportunity variations, such as those in London vs Northern England.

carefree

  • Guest
I have disposable income but it wasn't always the case.

Me and the wife each have a few quid every month and combined with the odd tenner here and there syphoned off I have a lovely little private pot of money for what I call my slut fund :yahoo:

Offline unclepokey

Income in excess of the cost of one's normal day to day necessary needs can be termed 'disposable income'

Interestingly too, gifts made out of income in excess of meeting one's normal day to day necessary needs are not 'added back' in computing the value of your estate for inheritance tax purposes. (This, by the way, is the least known IHT mitigation element in the calculation of estate value).
Expenditure of a regular nature such as a weekly shag at Susi's during the last seven years would never be added back in a calculation of the value of an estate. That would be normal regular expenditure. For a start it wouldn't be a gift.

So as a tax practitioner just how glad it is to me to observe that, in terms of capital taxes, shagging is  Kinda tax-efficient.
Uncle Pokey

Offline smiths

Is there such a thing as disposable income. You get paid, take care of the bills etc but isn't there always something that pops up out of nowhere, e.g car repair, new school uniform for the kids as they ruined the first one. It is a terrible thought of spending "spare cash" on punting only for something annoying to turn up and even more of a headache explaining it to the misuss. For me this time its an unexpected trip to the dental hygienist which will set me back.

Depends on what you earn compared to your fixed outgoings of course and if smart have a reserve fund for the unexpected, if a punter cant afford to do that without using money to punt from one or both of the above my advice is be very careful not to get into debt, just for a punt.

So yes there is such a thing as disposable income where a person can choose what to spend their money on and it wont leave them short.

Offline Cuntminion

It's all disposable , just depends where you spend it

Offline JEH7376

If it isn't disposable income that I am spending on all these girls, I have no idea what it is....

Offline Bikerboy

Income in excess of the cost of one's normal day to day necessary needs can be termed 'disposable income'

Interestingly too, gifts made out of income in excess of meeting one's normal day to day necessary needs are not 'added back' in computing the value of your estate for inheritance tax purposes. (This, by the way, is the least known IHT mitigation element in the calculation of estate value).
Expenditure of a regular nature such as a weekly shag at Susi's during the last seven years would never be added back in a calculation of the value of an estate. That would be normal regular expenditure. For a start it wouldn't be a gift.

So as a tax practitioner just how glad it is to me to observe that, in terms of capital taxes, shagging is  Kinda tax-efficient.
Uncle Pokey

Not quite right...

Yes you can make gifts and they are excluded from your estate. But. There's always a but isn't there. Maximum values are imposed on those gifts and you have to live at least 7 years after you make the gifts for them to be excluded from your estate.

As paid shagging is not on the officially agreed HMRC gift list and they are not gifts, but payment for services, reference to inheritance tax/your estate isn't relevant.

So, it's a nice thought paid shagging is tax efficient, but sadly not so. Shame.

jcdmj12

  • Guest
I budget for seeing prossies in the same way I budget for housing costs, food, savings etc, so I can spend out of my hooker fund without feeling guilty about it. It's nice, sometime I get too busy to punt so it builds up over a month or so and I can have a week of depravity. :D

There are other areas where I don't spent much money (cars, clothes etc), because experiences are more important to me than things. A choice between a £150 shirt with a fancy label (but still made in China), or a £40 one plus an hour with an accommodating young Polish lady is a no brainer for me,
« Last Edit: September 19, 2015, 09:08:07 pm by jcdmj12 »

vw

  • Guest
I budget for seeing prossies in the same way I budget for housing costs, food, savings etc, so I can spend out of my hooker fund without feeling guilty about it. It's nice, sometime I get too busy to punt so it builds up over a month or so and I can have a week of depravity. :D

There are other areas where I don't spent much money (cars, clothes etc), because experiences are more important to me than things. A choice between a £150 shirt with a fancy label (but still made in China), or a £40 one plus an hour with an accommodating young Polish lady is a no brainer for me,
Thus it is an essential item and not disposable income !

fredpunter

  • Guest
I budget for seeing prossies in the same way I budget for housing costs, food, savings etc, so I can spend out of my hooker fund without feeling guilty about it. It's nice, sometime I get too busy to punt so it builds up over a month or so and I can have a week of depravity. :D

There are other areas where I don't spent much money (cars, clothes etc), because experiences are more important to me than things. A choice between a £150 shirt with a fancy label (but still made in China), or a £40 one plus an hour with an accommodating young Polish lady is a no brainer for me,

40 quid for a shirt! You can get about 6 for that in m&s ... but I do share your philosophy .... possessions are just hassle ... if only my Mrs and kids would agree ...

Ps yes there's such a thing as disposable income .... I am fortunate enough to have loads of it .... but as I was virtually destitute till my mid twenties I just never got used to spending a lot or acquiring stuff I don't really need.
« Last Edit: September 19, 2015, 09:25:12 pm by fredpunter »

Offline maxxblue

Thus it is an essential item and not disposable income !

Not sure that I agree that punting is an essential item. If you don't pay your mortgage/council tax/bills etc, you risk having essential services cut off, whereas if you don't punt, you may be disappointed, but that is about it.

Offline smiths

Not sure that I agree that punting is an essential item. If you don't pay your mortgage/council tax/bills etc, you risk having essential services cut off, whereas if you don't punt, you may be disappointed, but that is about it.

And if you don't pay your council tax you COULD be sent to prison ultimately, same with TV licence of course. For me punting is a pastime like Golf, its not essential but its damn good fun in the main.

Offline smiths

I budget for seeing prossies in the same way I budget for housing costs, food, savings etc, so I can spend out of my hooker fund without feeling guilty about it. It's nice, sometime I get too busy to punt so it builds up over a month or so and I can have a week of depravity. :D

There are other areas where I don't spent much money (cars, clothes etc), because experiences are more important to me than things. A choice between a £150 shirt with a fancy label (but still made in China), or a £40 one plus an hour with an accommodating young Polish lady is a no brainer for me,

Interesting point where you say for you experiences are more important than things, I want both but on principle i want VFM as i see it for most things so £150 for a shirt is something i wouldn't pay, i wouldn't pay £40 either, or £20.

Hawkwind71

  • Guest
It's all disposable , just depends where you spend it

Im disposing it so the kids dont have to fight over an inheritance. Working well so far.

vw

  • Guest
Interesting point where you say for you experiences are more important than things, I want both but on principle i want VFM as i see it for most things so £150 for a shirt is something i wouldn't pay, i wouldn't pay £40 either, or £20.
The best experiences in life outside punting are often free.  I'm with you on the shirts though.  Shoes I like to push the boat on.

Offline threechilliman

.....my slut fund :yahoo:

I've just renamed my punting fund! My slut fund. Love it!!

tcm

Offline NIK

Is there such a thing as disposable income. You get paid, take care of the bills etc but isn't there always something that pops up out of nowhere, e.g car repair, new school uniform for the kids as they ruined the first one. It is a terrible thought of spending "spare cash" on punting only for something annoying to turn up and even more of a headache explaining it to the misuss. For me this time its an unexpected trip to the dental hygienist which will set me back.

Totally agree. Just when you think you've got things covered there is ALWAYS something else that pops up to set you back. Especially when you run a bloody car.  :angry:

Offline threechilliman

Especially when you run a bloody car.  :angry:

Tell me about it. I punted whilst my car was being looked at the other week. The punt was completely shit and when I got back to the garage they told me the car needed repairs to the tune of several thousand pounds. I was not a happy bunny.

tcm

Topgun

  • Guest
I always make sure I have minimum £5k, and hover around the £6k mark after all bills are paid. That way when I need to make an emergency purchase then i have no worries.
Plus there are loans could use for emergencies but I haven't had one for 12 years now, total money-sinks even at the cheapest rates possible.

£14/hour, 40hour week, live by myself, no kids, £420 mortgage, 10 year old hatchback car... I could easily afford much better if it wasn't for seeing escorts.

Offline purple_t

I see where you're coming from OP but if you never spend any money on yourself for fear of something important yet unexpected occurring, you're not going to live a very fun life. My view is that I could be dead within a year, you never know what tomorrow could bring. So I try and enjoy myself without acting too impulsively or irresponsibly.

Stainford

  • Guest
I like to think I enjoy life as much as possible. Was looking forward to a punt but something so small such as risk of gum disease leading to heart disease and even cancer, its safe to say the dental hygienist will be getting my money this time.

Offline myothernameis

I used to spend all my spare money on escorts, and would do this 4 times per month, now I don't punt as much, and in the last 16 months, have began to spends less money on unnecessary things

So now to date, I have around £2300 in my bank account, which I have never had this amount of money, sitting in a bank account and not doing anything

so it just goes to show, if your not really punting that much or not at all, you can save a considerable amount of money

Offline NIK

I always make sure I have minimum £5k, and hover around the £6k mark after all bills are paid. That way when I need to make an emergency purchase then i have no worries.
Plus there are loans could use for emergencies but I haven't had one for 12 years now, total money-sinks even at the cheapest rates possible.

£14/hour, 40hour week, live by myself, no kids, £420 mortgage, 10 year old hatchback car... I could easily afford much better if it wasn't for seeing escorts.

Yes, if I hadn't fucked my life up big style 5 or 6 years ago I would be currently at least £550 per month better off with several thousand stashed in the bank.
As it is, although things are slightly better than they were a year ago as I currently have a fair income coming in, it is unreliable and I have to live from week to week without any security apart from a car that is rapidly falling to bits and a second pension I can't access for another few years, and may not be able to access at all if the trustee proves to be the rogue he appears to be.  :scare:

Offline dizietsmae

I am desperately trying to curtail my punting as it is consuming all my disposable income  :dash: 

Need better self control, I am trying to limit myself to 1 long punt a month with a very well reviewed girl but I keep impulse punting and impulse punts always seem to be hit and miss compared to the well planned punts with the better girls!

Offline Bikerboy

Been there, done that impulse thing many times.

Am a bit better behaved of late but there's always a chance of a relapse.

Especially if you are on a modest budget, it is frightening looking back at what you've spent.

But then as many have said, you are a long time dead.

Offline dizietsmae

Eeeek! I just added up my punting over the last 18 months and its £3,500  :wacko: 

Might need to reign that in a bit, although it comes out to about £200 a month which doesn't sound so bad  :drinks:

MrBridger

  • Guest
Is there such a thing as disposable income. You get paid, take care of the bills etc but isn't there always something that pops up out of nowhere, e.g car repair, new school uniform for the kids as they ruined the first one. It is a terrible thought of spending "spare cash" on punting only for something annoying to turn up and even more of a headache explaining it to the misuss. For me this time its an unexpected trip to the dental hygienist which will set me back.

That's my new punting euphemism.

Offline Plato

As long as you don't miss what you spend on girls there's no problem.  I've never regretted spending money on punting, as I've always had enough for other things.

My first punt was at age 21 and I'm sure I've spent over £100K in the 20 years since. It's been worth every penny.

greychap

  • Guest
Spending on luxuries are classed as disposable in my eyes !

Yes if you have a good income and have the money for lifes luxuries I think that is disposable.

Offline unclepokey

In his reply No.11 Bikerboy takes me to task on my comments about inheritance tax. I admit that the wording of my comments on two separate IHT issues were conflated and lacked clarity.

One of the points I tried to make was that, because as matters stand my estate will be well above the nil rate band, every £100 I spend today and is not squirreled away in a savings account will mean my estate will save £40 of tax. So for me at least it strikes me that punting is, in a way tax efficient, although I will never be around to enjoy the tax benefits. Neither will my nephews or nieces benefit as the £100 is spent. It's HMRC that will NOT get the £40!

The other point I tried rather poorly to make was less punting related and it is about the "normal expenditure out of income" exemption.
Let me give you an example:
Suppose I decide to gift £6000 a year to my niece whilst she is at university. My pension is far and away enough to cover my day to day expenditure and my normal standard of living. Shortly after completion of said said niece's degree, I pop my clogs.
Q. will these gifts be added back in the computation of my estate for IHT purposes?
No: as long as the three points below are met:
That the gift
forms part of the payer's normal expenditure
is made out of [surplus] income, and
leaves the payer with enough income to maintain normal standards of living.

The HMRC Inspector's manuals give more detail but see especially IHTM 14231

I hope this clarifies my rather garbled earlier comments.
Uncle Pokey

Offline Bikerboy

Hi Uncle Pokey

Yes, there are exemptions for those in full time education etc. etc. It's also true that if you spend it before you pop your clogs your estate won't suffer IHT tax on the assets absent at that time, unless other parts of the IHT rules haven't been complied with.

IHT gift exemptions are really complicated and as this is a punting forum, not a tax planning forum, I don't plan to go into the detail here.

I think most people on here are interested in the here and now and on what disposable income they consider is available for thier punting hobby.