I'm fed up with my budget - advice needed

want2bmortgage3

my monthly budget is too tight, i have no spare money to spend on clothes, music, going out etc. i'm a 27 year old single male and i dont want this sort of pressure knowing im working all the time to just meet the main bills.

i own a 2 bedroom flat which is worth around £130,000 (i bought nearly 3 years ago for £140,000). at the height of the market it was worth around £160,000.

these are my main outgoings:
mortgage £644.40
council tax £81.52
buildings ins £13.43
gas £15
elec £20
water £15
broadband £7.50
mobile £10
petrol £80
food etc £80
contact lenses £11.58
car insurance £25
car tax £16.96
dentist £1.35
ground rent £2.50
presents £20 (birthday/xmas)
total £1056.24
income from work £1144.95
there are other unexpected things i havent included and havent allowed for going out, buying clothes...
i know i need to make some changes, but what?

i feel my options are:
1. find a lodger to bring in £300-350 a month - might be ok but not sure if i'd mind someone else living with me, it could be annoying?
2. get a p/t job in the evenings (but i wont get hardly any free time)
3. downgrade my property - a studio nearby is for sale at £85,000 and would be fine for me on my own

any advice welcomed, thank you for reading

Marcheline

If I were you I'd get a lodger (from the p.o.v that selling a 2 bed will generally be easier than selling a studio in the future, also if you meet someone then a 2 bed allows you more space) In the current climate, I wouldn't want to be selling unless I really had to and until you explore all your options (and get a lodger in) I wouldn't say moving was a good idea. By the way, I know where you're coming from, I'm saving for a house deposit and am being REALLY stingy with myself!

white_noise

want2bmortgage3 wrote: »

my monthly budget is too tight

mortgage £644.40
income from work £1144.95

i know i need to make some changes, but what?

no wonder things are so tight your mortgage repayments are over 50% of your net pay!
from that you earn 17k which i don't think that i could feel in a secure enough position buy a house on!
i'd definatly get a lodger to increase your income and give you some breathing space, hopefully a nice pay rise will be forth coming so you don't have to have a lodger but for now i think that its the best way forward
WN

Treacle1983

I wouldn't sell - not at the moment.

How about trying your hand at a bit of bar work - it's like getting paid to be out socialising.

There are also people out there that would rent a garage or parking space from you if you had one.

You could put your name down on a car sharing site - that way, you give someone a lift to near where you work and they help towards fuel costs.

See if you could get a good package deal for doing a landline/mobile/broadband all with the same company - try virgin media.

Maybe forgoe birthday presents this year and just do token gifts at christmas. I know my family understand that bills and things come first.

llh189

I wouldn't sell, you have managed to get on the ladder and I would try and stay there, downgrading to buying a studio would be a bad move - flats can have limited appeal but studios are even worse!

Options then are:

Get a lodger - which can be problematic but it is hopefully only for the short term.

Check out the potential rental market - and move somewhere smaller that you can afford and rent to cover your mortgage.

Look for a better paid job to increase your income!

HTH

spuds_2

I wouldn't sell at the moment unless you really have to. I know it's tough sharing, but a lodger sounds like the best bet. Do you know any friends who want to share? That might be easier than a stranger. Keep £100 of the rent to ease your budget, save the rest and then make over-payments on your mortgage (provided you can do this without penalty) so that you are reducing the negative equity.

hazey31

I'd stay where you are.

Contact lenses at nearly £12 a month strikes me as a bit steep (unless you've got a special prescription) could you try to reduce that? Take a look at lens companies online and see what they're offering?

RetroBob

I'd get a lodger, if you're selective you can get someone decent and try it out for 6 months. I am about to buy a 2 bed place, my budget has flexibility but if we get to interest rates of 10-15% then I'd definitely get a lodger in.

Sprintz

hazey31 wrote: »

Take a look at lens companies online and see what they're offering?

aye I agree with hazey, keep an eye on prices

dont bother with a studio - thats suicide especially as it sounds like you want to get out there and live a bit more.

I suggest you finding yourself a rich female lass and that way split the bills and you get some fun time :rotfl:

bluu2k

want2bmortgage3 wrote: »

these are my main outgoings:
mortgage £644.40
council tax £81.52
buildings ins £13.43
gas £15
elec £20
water £15
broadband £7.50
mobile £10
petrol £80
food etc £80
contact lenses £11.58
car insurance £25
car tax £16.96
dentist £1.35
ground rent £2.50
presents £20 (birthday/xmas)
total £1056.24
income from work £1144.95
there are other unexpected things i havent included and havent allowed for going out, buying clothes...
i know i need to make some changes, but what?

i feel my options are:
1. find a lodger to bring in £300-350 a month - might be ok but not sure if i'd mind someone else living with me, it could be annoying?
2. get a p/t job in the evenings (but i wont get hardly any free time)
3. downgrade my property - a studio nearby is for sale at £85,000 and would be fine for me on my own

any advice welcomed, thank you for reading

Agree w/ other posters about having a lodger, and would want to add some little help:

Your broadband £7.50 =======> is it with O2 for that price? If so, trim down your mobile phone expenses to minimum, i.e from 10 quids per month to per every three months (just enough to get you cheaper broadband rate).

You can have 100 free text messages/month via 02 website.

Contact lenses £11.58 =======> is it a must? can you live with a pair of glasses? online order would cost you app. 15 pounds per pair, which would last at least 6 months.

pinkshoes

Why don't you rent your 2 bed apartment out then RENT a studio?

Or take a lodger? Lodgers have very few rights compared to tenants, so if it wasn't working, you could just kick them out!