£32,000 salary - How can I save?

mel19632

Having read this thread, there seems to be more arguement about who earns what in London rather then helping OP!

For the record, I am a trainee accountant in London (school leaver - so quite unusual) and I am on £36k. Once qualified it should be around £45k - so whoever was saying that accountants earn £28k (or whatever it was) is a little off - I would expect an accountant in London to be on nearer 60k with 5 years post qualified experience

GrammarGirl

I'm a 23 year old professional on £22,000! This dude is a year younger and earns £10k more than me... unfair!

Seriously though... I think graduates' wages are hugely variable. I started (in the same professional role) on £16k only 2 years ago. Progression can be swift, but it also depends on geography (I'm in Leeds, so although I earn £10k less I probably spend £10k less as stuff is cheaper here!.. Although maybe not £10k less!)

Ok, back on topic. It sounds to me like the OP isn't quite ready to give up the trappings of a high wage and disposable income quite yet. If going without holidays, expensive cars and £700 on 'stuff' every month is unbearable, you're not ready to buy a house and should wait a few years until those things become less important. No shame in it, and people shouldn't be making the OP feel guilty for fully enjoying their hard-earned cash.

KiKi

pfpf wrote: »

could i ask how? i have taken out our mortgage and this is what we have left.

23.81 LIFE INSURANCE
11.64 HOUSE INSURANCE
69.00 GAS & ELECTRICITY
44.10 WATER (10 payments)
131.00 COUNCIL TAX (10 payments)
10.50 LIFE INSURANCE
24.40 TELEPHONE & INTERNET
17.37 BOILER INSURANCE

£331.82 TOTAL.

this doesnt, unlike yourself inc. gym, food, mobile or "charitable donations".

for our small car we have the usual annual costs and petrol.

thank you.

edit: actually, you dont mention any insurances, if i take the 4 out i have listed that takes the monthly down to £268.50. we could probably cover the food bill for £100 so thats the same as your £370.00 but with no gym, mobile etc....plus theres still the house insurance and car costs.

Hi there

Don't want to take it too off-topic, but sure. Firstly, I live alone, so that makes a difference. I don't have life insurance as I don't need it - no-one for it to go to!

Summary:
GAS - £20
ELEC - £20
WATER - £20
C TAX - £72
GYM - £37
CHARITIES - £45
MOBILE - £10 (O2 simplicity - 400 texts, 200 mins)
NET/LANDLINE - £14 (Virgin)
CONTENTS INSURANCE - £9 (Post Office)
FOOD - £70
OTHER SPENDING - £50

To be fair, that doesn't include my TV licence, or Christmas and birthdays, but I pay for those separately as one offs. I would pay for holidays separately, too. These are just bills.

As the OP doesn't pay any other bills (notice how I got my post back on track...?!), the £700 can definitely be cut back in order to save for a deposit.

Hope that makes things clear!
KiKi

KiKi

GrammarGirl wrote: »

I'm a 23 year old professional on £22,000! This dude is a year younger and earns £10k more than me... unfair!

Although, actually, the 'dude' takes home £32k, but earns more than that (as per another post he made last year when he wanted to save then, too).


KiKi

GrammarGirl

KiKi wrote: »

Although, actually, the 'dude' takes home £32k, but earns more than that (as per another post he made last year when he wanted to save then, too).


KiKi

Then the dude is lucky to have such a high wage for his age and I wish him all the best.

Grumble grumble grumble, living in Yorkshire sucks, lower wages, need to move to London and possibly retrain as accountant... :rotfl:

Level103

Hi guys,

Thanks for everybody's feedback and response.

I was actually on a higher wage before but it was based on bonuses, and was far too much work - now I'd rather a lower wage and work less hours.

So...

Taking in all the advice so far - I've pretty much come to the conclusion that £400 is too much outgoings.

Maybe what I should do is if I really want a nice car, then save for a few months, and then start saving for a deposit?

I already have a few grand saved up for a car, but like people have said it is only for travel for me and my mates to go out, and for going to the gym etc.

Like something flash but I suppose that comes with a price!

Any recommendations for a nice car?

I don't want to take myself seriously but I want to have a place at 25.

Taking that into account I'm looking at 36 months x £1,000. Which for in London isn't going to be anywhere near enough money for a deposit, unless I have a partner.

I often do freelance work in the evening so could maybe make an extra £500 a month, but that would taking on more work, which I don't really want to do.

Is 25 young to move out in London?

I do wonder about the statistics.

I want it all, but its very difficult to pull that off.

Also does anyone have any advice on taking CIM (Marketing Diploma), and then taking a Masters degree in Marketing?

I'm thinking of doing both over the next 4 years or so - so I can have 6 years experience with a masters in digital marketing.

Thanks for all your advice so far

mr.broderick

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?

Looking at your previous posts you may find it hard to get car finance at a reasonable interest rate, maybe won't get it at all.

Level103

My credit rating has improved since then.

I'm lucky enough to have my Dad who would be willing to take on the burden if necessary of him doing the finance.

Most of my friends have parents who seemingly have £20k available for when 'the kids' want a house. I'm not so lucky, but I've worked bloody hard, and love my work.

Basically I want to drive my wage up for the next few years, and I want to reward myself with a nice car.

Work hard, spend hard? or... Work Hard, save hard?

KiKi

Level103 wrote: »

Work hard, spend hard? or... Work Hard, save hard?

Depends what your priorities are right now. Simple as that.

If you want to work hard and reward that with a car, then do so! But accept you can't have a house as well.

Most people don't get both when they want it, because most people don't have a daddy with a spare £20k for the kids. You might not be 'so lucky' as your friends, but I can assure you, mate, that 99% of people are in that same position as you on that, and most are worse off.

As you say - you want it all. Your salary doesn't allow for that, so either budget and make sacrifices, or take on extra work.

KiKi

TotallyBroke

Level103 wrote: »

Hi guys,

Thanks for everybody's feedback and response.

That's ok

Level103 wrote: »

Taking in all the advice so far - I've pretty much come to the conclusion that £400 is too much outgoings.

It sure is, you don't have to become a hermit, you just need to learn to restrict your outgoings

Level103 wrote: »

Maybe what I should do is if I really want a nice car, then save for a few months, and then start saving for a deposit?

You can do both. See my post. You could split the savings, 1 for car the other for the house.

TotallyBroke wrote: »

You are looking at buying a property in London.
My suggestion to you is to look at how much the council tax, water rates etc will cost you for that property now.
Add all the house bills together even if just approximates, so Mortgage payment £1000, Life Ins £10, Buildings & contents ins £20, council tax £120, water £35, Service charges £100, Tv Licence £12, Gas & Electric £90. = £1387 say £1300 per month.
You pay £300 to your parents so put the other £1000 straight into a savings account.
Now look at the other niceties that you will need for your life in a new home. Telephone line £15, Sky £20, Food £100, car insurance £150, car servicing £50, petrol £100 = £435 so round to say £400 and put that into savings each month.
This leaves you with what is left for mobile phones, going out etc. £2000-1300-400= £300.

Start practising on living on that £300 now because if you cannot do it now with the security of your family you will not be able to do it on your own in a property.
Just think as well, that in 10months at saving £1400 per month you can buy a fantastic new car. 3months will have paid for a good holiday.
It's a real test but one I wish I had done and I am sure so many others here wished they had done had they had known then what they do now.

Level103 wrote: »

I don't want to take myself seriously but I want to have a place at 25.
Taking that into account I'm looking at 36 months x £1,000. Which for in London isn't going to be anywhere near enough money for a deposit, unless I have a partner.

If you can save the way I have suggested above you can easily save £50,000 in the 3 years that includes no interest earned year on year etc. That would be a 25% deposit on the property prices you have suggested you will be looking at. So can be done.

Level103 wrote: »

I often do freelance work in the evening so could maybe make an extra £500 a month, but that would taking on more work, which I don't really want to do.

The harder you work now and the more money wise you become the less you will need to work when you are older. When you may have a family.

Level103 wrote: »

Is 25 young to move out in London?

No, I was about the same age. But because I was not money clever I did not use it to my full advantage. I'm now 10 years older and wish I had taken my own advice.