Discussion in 'General Discussion' started by TS7, Jan 31, 2017.
No wonder our banks are doing so well
I've been living on the outskirts of Poplar for the past year. If I don't spend any money on gadgets I can save 500-600 per month. This is earning just over 26k and sharing with 3 others. The house is decent enough as it was just refurbished when we moved in and each room has an ensuite. Rent works out 660 pcm for me, travel is ~120 and food maybe 200 per month. Bills aren't too bad as we don't hammer the heating as we all work so the house is empty most of the time. Then i've just got various subscriptions to pay such as gym,cinema and netflix but that only comes to £50 per month.
It helps that i'm incredibly boring and I really only watch films, go to the gym or game, I'm very low maintennance
I will start earning more soon so I just end up saving the extra I do earn. My priority is to get myself a house within a few years but I need to get 'settled' somewhere first, preferably somewhere that isn't London.
Also, I'm considering starting to cycle into work when it gets warmer, which will save me ~£150 p/m on tube fares.
Flatsharing can be fun and it can be a complete pain in the neck, it very much depends on who you end up sharing with. If you would prefer to live alone then you'll typically need to budget a bit more for that.
I think that in line with what seems to be the general consensus anywhere from £30-35k+ would be reasonable in terms of not having to worry too much about your outgoings compared to the money coming in. You won't be or feel wealthy but nor should you be struggling either provided you're not too frivolous with money.
Living South of the River is often a bit cheaper than North of the River - that does come with some trade-offs in terms of fewer Tube options and those there are tend to command a premium but the Overground is pretty good and reliable so that opens up a few more choices of location, the Overground features nicer and newer carriages than most of the Tube network with air conditioning. As a general rule South of the River is a bit more suburban and has more green spaces albeit there are some huge parks North of the River. It does very much vary according to area though as in some senses it works to think of London as lots of little villages linked by a transport network to create a big sprawling mass of a city so locations can feel very different even if they are geographically close.
Even a motorbike would be significantly cheaper and so much quicker.
I think that's probably broadly right but it is definitely a generalisation too. Someone on that money will likely be in a reasonable position for a reasonable firm. They'll be incentivised to pay into their pension, so probably pay 10 - 15% of salary. They'll likely have access to a SAYE scheme and could be paying up to £500 a month into that as there's a reasonable expectation that they'll make good money for it. There could also be other share option schemes that could take another £150 a month.
All very sensible things to do, aimed at the short and long term future, and so some people choose to put themselves in a position where things are tight today for a better tomorrow.
My flat's only a 20 minute cycle from work, almost entirely along one of the cycle superhighways, so it's free and reasonably safe.
I'd say 30 outside London. So what ever extra London costs you. May soon and up in this position myself and I'd guess at 40 in a cheap place nothing exciting on your own.
65 as a couple due to extra space etc
as a living in a 2 bedroom flat share in zone 3 in my 20s i earn 45k and enjoy life. I dont save alot but I take a lot of holidays, have a good social life, live in a nice flat with a nice housemate.
if you want that + savings probably a bit more unless you're better at living frugally (not me) if you really want to save for a 'future' (london mortgage prices etc) you'll need a partner who also earns a fair wad..
Indeed. Add on some SAYE schemes and you're easily looking at £5 - £10,000 more required salary.
I actually agree with this,
If I was Single and prepared to house share I'd want at least 40k minimum in London. To be honest, I think I'd turn my nose up at anything less than 50k. London is expensive!
London? When I lived and worked in N London (2009 ish)and used to clear just under 4k a month (apart from a mortgage, zero debt to service). Wife who was looking after our two kids.....it was too tight for me.
I am sure 30k is manageable but as you get older it is harder to compromise on the nicer things in life. Moving to London on 30k would equate to a student lifestyle in my eyes and I would have zero interest in doing it just to be in the capital.
Meanwhile about 50-100 miles North of London (skipping Luton ofc) you can live quite comfortably on less than 30k in a suburb/semi-rural area, have your own place AND greener surroundings. Why anyone would want to be in London is beyond me. It's for rich Arabs and Oligarchs now.
I live in zone 5 and am on 25k but have a flat with my gf. No way would we be able to live in central but out here its quite comfortable.
25k per year is a £1680 per month take home. The outgoings you have listed come to £1030 a month and then you still have bills on top so to save £500 to £600 a month means you spend zero, not even on clothes!!!!!!!
You are certainly not typical and wouldnt be how I would want to live but horses for courses.
lol no i do but i had never worked out how much £30k was back then, just felt like a lot at the time. It was my first job after Uni.
You buy clothes every month?
I reckon I spend maybe £400 a year on clothes, including work shirts.
What's that, £34 a month
Maybe I should buy more clothes
That's £400 more than I spend!
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