£32,000 salary - How can I save?

LucyTheDwarf

Francesanne wrote: »

He'd be better off hiring one. An awful lot cheaper.

Depends how long he would plan to keep it. I hope mine will last me at least another 10 years, I doubt hiring could beat that price per month...

catz1ct

lol £400 a month. What car is it? Don't be a show off.

Francesanne

LucyTheDwarf wrote: »

Depends how long he would plan to keep it. I hope mine will last me at least another 10 years, I doubt hiring could beat that price per month...

Wouldn't think at 22 he's looking that far ahead. I agree with you but just thought if he wasn't going to use the car very much, it would work out cheaper to hire one when needed.

Running_Horse

Level103 wrote: »

Anyone been in my situation before?

Nope. I've never earned £32,000, and am unlikely ever to do so.

We do own a nice little house though, and an old car essential for the wife's work. And this year's holiday was a weekend in a holiday park (no holiday the year before, and a cheap honeymoon the year before that). Recently gave up my luxury of a motorbike and pedal to work now. We will never be rich, but are the happiest and luckiest people in the world.

Only you know what are your priorities in life, but you really cannot have everything.

GDB2222

That is practically £5000 a year on motoring costs. Hopefully, it's quite a car. :-)

Fire_Fox

Level103 wrote: »

Hi guys,

I'm currently living at home in London, 22, paying only £300 rent, and spending about £700 on everything else (phone bills, going out, food and travel to work).

I take home £32,000 - which means £2,000 take home.

I can save probably around £1,000 a month, but I want to buy a car which will set me back with finance £400 a month (with insurance).

So that is taken down to £600 a month.

Any tips on saving for a deposit for a home?

I need to stay in Greater London, and probably looking at £175-£200,000 for a one bedroom flat.

Anyone been in my situation before?

This would basically mean no holidays for the whole saving duration also and not taking into account christmas etc.

Any tips?

First tip is don't expect to have everything all at once when you are only 22. London flat, nice car, holidays AND a very high disposable income leaves you nothing left to work towards. Why would you buy a car on finance? You will pay through the nose in interest and the car will depreciate very quickly. Can you even afford the insurance?

Try this, both for budgeting (Christmas shouldn't just happen, plan for it) and for the snowball calculator (how much money you will waste through finance).
http://www.makesenseofcards.com/soacalc.html

suze_g

You need to be looking at how much you can borrow - 3x 32k is 96K, 3.5 is 112k. 4 x 32 is 128K. That should give you an idea how much deposit you will be needing.

If I really wanted to buy I wouldn't be prioritising a new car. If you saved 1k a month for 4 months you could buy a pretty good car, then you could buckle down to saving.

Get youself internet banking, set up accounts for savings, name them, for example "Car" "deposit" etc.

I take home around the same as you and have two children. My current rent is £500 pm, I pay Council Tax, all the bills, clothes for all of us, food, car costs, travel etc, and have been saving £500 per month for my deposit.

I think you need to decide what you want and then go all out to get it. You have hardly any overheads so now is the time to save if you are serious about buying.

[Deleted User]

£600 x 12 x 3 = £21,600

There you go. It'll take you 3 years to get a deposit together at that rate, which is alright really. Also consider in that time you'll probably have payrises.

£400 sounds like a lot for a car finance.. my sister in law is paying £245 a month to finance an Audi A3 so I dunno what you plan on driving but i hope it's fancy.

It might just be easiest to accept that its going to take a few years of saving to get to where you want to be.

silvercar

I need to stay in Greater London, and probably looking at £175-£200,000 for a one bedroom flat.

You could find a cheaper area, persuade a parent to go on the mortgage with you and rent out a second bedroom to a lodger. (tax free upto £4500? a year).

ukcarper

Is this why young people say they can’t afford to buy houses now. If I had spent like that when I was saving to buy a house I wouldn’t have one.