May 2020 Financial Projection

Hi everyone,

I got my pay slip yesterday and pay day is tomorrow, therefore I have time to do a projection of my money for the month ahead.

I earn £20725 a year. Depending on my performance at work I can expect a bonus of about £150 (before tax) each quarter.

This month I seem to have been taxed differently as I have a slight increase in my pay. That’s fine with me!

Here is a breakdown of my bills


Rent £375 (my half)

Council Tax £77 (my half)

Energy £75 (my half)

Broadband £17.49 (my half)

Food £150 (my half)

Debt £150

Life Insurance £14.76

Mobile £7

Gym £27 (This is a £7 donation of sorts to my gym whilst it’s closed and £20 to a personal trainer to devise a lock down at home work out. Normally it would just be £19.99 a month)

TOTM £6.80 (subscription order sanitary products)

2 x Charity Donations £10

Netflix £3 (my half)

Any bill that is followed with the words ‘my half’ means the monthly cost is double, but I split that bill with my flat mate. Some bills come out of his account and some come out of mine and we transfer the respective money to each other, but for point of ease I’m just showing what my half of the bills cost.

TOTAL £913.05

INCOME £1404.42

TOTAL LEFT £491.37

Now here is where the fun starts, what do I do with my ‘disposable income’?

This is where my sinking funds come in. A sinking fund is where I keep my money for bills that come out less frequently then once a month. It’s where I put money aside for savings, etc.

Here’s what I do with mine, my budgets have been dramatically changed due to lock down so what follows may not be an accurate description of a typical month, but it is reflective of the month ahead.

Beauty £7.50

Christmas £67.50

Clothing £7.50

Health £7.50

Home Insurance £10

Races (Running) £7.50

Renew Passport £20

Royal Mail Redelivery £6

Running Trainers £7.50

Savings £200

TV License £9.85

Water Bill £40

Web Domain Names £20

Word Press £5

TOTAL £415.85


Some of the above are higher than they would be normally because at the start of this year I couldn’t save very much money at all and so some bills are due to come out soon, and I don’t have the money set aside for them just yet. For instance my ‘Water Bill’ sinking fund will usually just be about £20 a month, and Christmas would be £50 a month.

My goal is to get to a point where I am saving 20% of my net pay each month, but at the moment it is just a bit too difficult and I would rather save a bit less and keep it untouched then keep raiding the piggy bank.

There’s not much to get up to at the moment due to lockdown so it should be easy to keep to the £75 fun money in the next month. Though I am lusting after a magazine subscription, but I must be realistic about needs versus wants.

So that’s it everyone, a little glimpse into my finances. I would like to get to a point where I can pay for Duolingo each month, and I would quite like to try out Disney+, but they aren’t important and what is important to me is looking to see if I can go on holiday after lockdown with my friends.

My debts are taking care of themselves and will be gone within the next four months. It’s a little hard to believe my debts will soon be gone. I’ve had them for so long and they’ve been such a part of my identity (in a bad way) for so long that it’s hard to get used to.

I’m sure it will get easier.


Published by flodebtfreediary

Hello, I write about food, debt, saving money, mental health and social anxiety.

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