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  • FIRST POST
    • kteara
    • By kteara 13th Oct 16, 10:40 PM
    • 229Posts
    • 39Thanks
    kteara
    Budgeting advice for my new job on 18,000 per annum
    • #1
    • 13th Oct 16, 10:40 PM
    Budgeting advice for my new job on 18,000 per annum 13th Oct 16 at 10:40 PM
    Hi everyone,

    It's been a long time since I've posted here but I graduated university in May this year (2016) and I have since been working at a used car dealership, five minutes from my house. I've managed to land a job just now which is based on my IT degree at a prestigious company for 18k a year. What is everyone's thoughts on this salary?

    It equates to 1283 per month after tax which I don't feel too amazing about but I have no other choice. I really am motivated by money and would like to earn as much as possible.Can you help me budget this money? I live at home and I only pay for the gym (37p/m) and my fuel for this job will cost me (120p/m)

    I am considering staying at this used car dealership weekend which is an extra 320 per month, bringing it to a grand total of 1603 per month. This will be working 7 days a week which I don't mind doing in this current mindset.

    Thanks!
    Last edited by kteara; 14-10-2016 at 8:17 AM.
Page 1
    • Joe_Bloggs
    • By Joe_Bloggs 13th Oct 16, 11:32 PM
    • 4,358 Posts
    • 1,541 Thanks
    Joe_Bloggs
    • #2
    • 13th Oct 16, 11:32 PM
    • #2
    • 13th Oct 16, 11:32 PM
    I am not a car owner. My car was stolen. It can never be replaced. If I lived in a rural environment then it would be a critical loss.

    Learn about the cars that you have and target your cars to the consumers who have needs that would be satisfied by what cars you have in stock.
    There are all ways in which consumers churn so you can recycle /mix and match if you are part of the cycle.
    J_B.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • kteara
    • By kteara 14th Oct 16, 8:17 AM
    • 229 Posts
    • 39 Thanks
    kteara
    • #3
    • 14th Oct 16, 8:17 AM
    • #3
    • 14th Oct 16, 8:17 AM
    ^ im sorry but this is not relevant to my post but thanks
    • colin79666
    • By colin79666 14th Oct 16, 8:21 AM
    • 1,279 Posts
    • 720 Thanks
    colin79666
    • #4
    • 14th Oct 16, 8:21 AM
    • #4
    • 14th Oct 16, 8:21 AM
    Take the job. 18k isn't great but it is a lot easier to get a job once you have one and with a bit of luck the employer will recognise your talent as you build experience and you will get some decent pay rises after the first year. If they don't at least you will have more experience and can look for something better. This is my experience at least.

    Not sure I'd recommend working 7 days however. You need some rest, at least 1 day off IMO. Also keep in mind at 18k you will be paying income tax so did you factor that in to your weekend job plans?

    Even if you live at home you should be contributing to the household expenses. It is cheaper than renting but you can't expect to be housed and fed for free, especially when you have a full time job.
    • kteara
    • By kteara 14th Oct 16, 10:13 AM
    • 229 Posts
    • 39 Thanks
    kteara
    • #5
    • 14th Oct 16, 10:13 AM
    • #5
    • 14th Oct 16, 10:13 AM
    Take the job. 18k isn't great but it is a lot easier to get a job once you have one and with a bit of luck the employer will recognise your talent as you build experience and you will get some decent pay rises after the first year. If they don't at least you will have more experience and can look for something better. This is my experience at least.

    Not sure I'd recommend working 7 days however. You need some rest, at least 1 day off IMO. Also keep in mind at 18k you will be paying income tax so did you factor that in to your weekend job plans?

    Even if you live at home you should be contributing to the household expenses. It is cheaper than renting but you can't expect to be housed and fed for free, especially when you have a full time job.
    Originally posted by colin79666
    Would you recommend just working saturdays at my family friends used car dealership then? I earn 50 per day there and it is paid in cash by the owner. This will bring my total up to 200 per month and a grand total of 1483 per month with the two jobs combined.
    • Jackieboy
    • By Jackieboy 14th Oct 16, 10:19 AM
    • 251 Posts
    • 396 Thanks
    Jackieboy
    • #6
    • 14th Oct 16, 10:19 AM
    • #6
    • 14th Oct 16, 10:19 AM
    Would you recommend just working saturdays at my family friends used car dealership then? I earn 50 per day there and it is paid in cash by the owner. This will bring my total up to 200 per month and a grand total of 1483 per month with the two jobs combined.
    Originally posted by kteara
    You don't seem to have allowed for paying tax and NI on this Saturday job, which also seems to pay below NMW.
    • mollycat
    • By mollycat 14th Oct 16, 10:34 AM
    • 562 Posts
    • 829 Thanks
    mollycat
    • #7
    • 14th Oct 16, 10:34 AM
    • #7
    • 14th Oct 16, 10:34 AM
    Hi OP.

    Sorry you consider your starting salary of 18K as "not amazing".

    Reassure yourself with the fact that you are only earning slightly less than myself, a qualified professional, at the top of my pay grade and with over 30 years experience with the same employer.

    Presumable you have scope for promotion and increases and hopefully decent conditions of service.

    No real criticism here; just thought the tone of your OP was a bit more negative than it should be given the context.

    If you were a young relative of mine I would be delighted at this outcome and I encourage you to be also; it's a great start.

    Good luck, happy saving
    • kteara
    • By kteara 14th Oct 16, 10:38 AM
    • 229 Posts
    • 39 Thanks
    kteara
    • #8
    • 14th Oct 16, 10:38 AM
    • #8
    • 14th Oct 16, 10:38 AM
    Do you think I should work on saturdays for 50 per day or is it not worth my while?
    • Jackieboy
    • By Jackieboy 14th Oct 16, 10:41 AM
    • 251 Posts
    • 396 Thanks
    Jackieboy
    • #9
    • 14th Oct 16, 10:41 AM
    • #9
    • 14th Oct 16, 10:41 AM
    Do you think I should work on saturdays for 50 per day or is it not worth my while?
    Originally posted by kteara
    You seem to have ignore the points I made in my last post.
    • kteara
    • By kteara 14th Oct 16, 11:02 AM
    • 229 Posts
    • 39 Thanks
    kteara
    You seem to have ignore the points I made in my last post.
    Originally posted by Jackieboy
    I haven't ignored your post
    • sysadmin
    • By sysadmin 14th Oct 16, 11:07 AM
    • 114 Posts
    • 55 Thanks
    sysadmin
    unfortunately in IT starting salary's are not great until you can prove your worth. Ive been in IT for about 15 years and its only in the past year or so that ive started to earn relatively good money
    • mollycat
    • By mollycat 14th Oct 16, 11:28 AM
    • 562 Posts
    • 829 Thanks
    mollycat
    Do you think I should work on saturdays for 50 per day or is it not worth my while?
    Originally posted by kteara
    I wouldn't, but you have to work out how much the 50 squares against other stuff you would like to do.

    I don't think people that don't know you can help you with this bit
    • ringo_24601
    • By ringo_24601 14th Oct 16, 11:31 AM
    • 16,088 Posts
    • 25,600 Thanks
    ringo_24601
    You're earning 18k because you're a new graduate. The trick to earning well in IT, is to take all the training and experience you can get, then move on - especially if you've not been promoted.
    • Sharon87
    • By Sharon87 14th Oct 16, 11:34 AM
    • 3,428 Posts
    • 2,877 Thanks
    Sharon87
    You still need to declare the 50/day Saturday job to HMRC or you could get in trouble.

    18k is a decent starting salary. Degrees are not the be all and end all for getting a job. I know some people who thinks it entitles them to start higher up than they're qualified for. Don't be one of those people, I wish I had that starting salary after uni.

    As for budgetting, you have very little expenses. Do your parents want you to pay rent? I'm sure they will once you have a full time job. My advice is save a percentage of your wages - how much is up to you. Then use the rest on paying your parents something for rent, travel to work, gym, food, going out.etc

    Get a budget app for your phone if that makes it easier to budget. Count yourself lucky you've managed to secure a job straight out of uni, not many people do.

    Good luck on the new job.
    • kteara
    • By kteara 14th Oct 16, 12:08 PM
    • 229 Posts
    • 39 Thanks
    kteara
    I wouldn't, but you have to work out how much the 50 squares against other stuff you would like to do.

    I don't think people that don't know you can help you with this bit
    Originally posted by mollycat
    Can you explain why? I know its different for everyone and to be honest with you it is only five minutes from my house, relatively fun to work here as I get along with everyone and the work is not too hard but I am only doing it for the money, which (50) is not great... My biggest concern is do you think it will affect my new job? I want to give this new job 110% as to improve and become promoted, do you think this saturday job will affect it even slightly or am I just overthinking?
    • mollycat
    • By mollycat 14th Oct 16, 12:17 PM
    • 562 Posts
    • 829 Thanks
    mollycat
    Well, the reason I wouldn't is that I've got better things to do on my days off.

    But each to his/her own.

    Overthinking it? Possibly .

    Why not try it and give up the 50 Saturday if it's not working out?
    • getmore4less
    • By getmore4less 14th Oct 16, 12:50 PM
    • 26,238 Posts
    • 15,783 Thanks
    getmore4less
    You were after budget advice.

    Start by getting MSMoney(still the best personal finance option) and recording everything you do with your money.

    You can then use that to look at options and budgeting.

    You need to allocate all income to category be it a spend or a save

    The real trick is having goals.
    Start with an easy one like an emergency fund of 6 then 12 months expenses.

    Will you ever want to move out of home then a house deposit fund might be handy

    holidays fancy one put it in the budget

    Just keep populating till all the money is allocated

    Have a "savings because I can't think of anything else" category to catch any surplus.


    if you can't think of things focus on getting a special friend and spend it on them.

    The Saturday Job just do it till you find something better to do,

    I also believe that 7day working is not sustainable long term so stick to one day but offer to cover the other as and when.

    Don't forget you probably need to inform your main employer you are doing other work, as there is no conflict other than potentially the hours they should not have a problem, just make it clear that if you are needed for your main job you have the flexibility to not work that job.
    • eskbanker
    • By eskbanker 14th Oct 16, 1:17 PM
    • 3,616 Posts
    • 3,236 Thanks
    eskbanker
    As above, if you may wish to get on the housing ladder at some point then worth bearing that in mind, consider opening a Help to Buy ISA to get access to the 25% government bonus.

    Also worth thinking about pension provision - provided you get the balance right between accessible savings and longer term investment then it's never too early to start building up your pension fund, as you'll benefit not just from tax advantages but also maximum compounding and growth on what goes in at the beginning....

    But don't forget to live a bit too!
    • kteara
    • By kteara 14th Oct 16, 1:33 PM
    • 229 Posts
    • 39 Thanks
    kteara
    As above, if you may wish to get on the housing ladder at some point then worth bearing that in mind, consider opening a Help to Buy ISA to get access to the 25% government bonus.

    Also worth thinking about pension provision - provided you get the balance right between accessible savings and longer term investment then it's never too early to start building up your pension fund, as you'll benefit not just from tax advantages but also maximum compounding and growth on what goes in at the beginning....

    But don't forget to live a bit too!
    Originally posted by eskbanker
    Would you be able to educate me a little on the pension scheme? Especially the tax advantages part? On my contract it says they will give me 3% of my salary after 12 months in employment but I really do not understand it very well.
    • eskbanker
    • By eskbanker 14th Oct 16, 1:46 PM
    • 3,616 Posts
    • 3,236 Thanks
    eskbanker
    There's a whole MSE section at http://www.moneysavingexpert.com/pensions/, including a decent beginner's guide at http://www.moneysavingexpert.com/savings/discount-pensions which is a good place to start, it covers the tax benefit among other key points....
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