Live on £6,000 a Year

LeeSouthEast

Hi!

Inspired by this idea over on DFW, I'd like to welcome you all to my challenge. There don't appear to be any other diary-type boards beyond DFW, yet that is what this is hopefully going to be. As you can see from my signature, I've cleared almost £20k of debt between January and November 2009 (only the 3 CCA debts listed in sig). Now that's done, I want to start saving up to be terribly grown up and buy a house.

The only way that can realistically be done these days it seems is to have a good-sized deposit. My aim is to save £20k/year for the next 3-4 years. That will hopefully provide a ~£40-50k deposit and have £10k left for fees and maybe even some initial furniture, as well as my other financial goals. I'd like to move in somewhere before my 30th birthday.

To manage this, I have budgeted my life to hell and back. My challenge, is to survive on £6,000 a year or less in order to do this. I'll also work all the overtime going in order to bump up the savings but that will not alter the amount I am permitted to spend.

£6,000 includes all spending, such as rent, fuel, bills, fun and general living costs. Nothing is excluded from this £6k challenge.

I don't imagine I'll get too many people trying to join the challenge like the DFW £4k challenge, but that's not the primary reason for this post. It's just encouragement for me.

Am I mad? Probably.
Am I committed? Definitely.

The challenge will officially begin January 20th 2010 (first payday of the new year), but any preparation advice you lovely folks might be able to give, would be appreciated. :T

Lee

Lokolo

WOW.

I just added up my income and expenditure since Jan. I have spent £17,455.....

And I am a FT student....

This does include 'spending' into my savings account. Gimme 5min and I'll work out how much of it was actually saving!

---

I have saved £7,050 of that...

LeeSouthEast

Yikes. It's going to be fun, then.. !

A breakdown of an average month looks like this:

Rent £ 120.00
Mobile Phone £ 20.00
Sky £ 43.00
3G Broadband £ 5.00
LoveFilm £ 16.00
Diesel £ 110.00
Food £ 45.00
VPS £ 12.00
Phone Service £ 11.00
Me Fund £ 10.00

(2010 prices already adjusted for the VAT rise)

There are months where these figures change, and 'one offs' in places (like car insurance renewal), but that's what most months look like.

Food seems low, before anyone says it. But that's my average over the previous 11 months. I cook a lot of fresh food at home in batch, and my dear mum occasionally throws a tenner in my direction when I go shopping for her. Yes, I also know Sky is high, but that includes Sky+ and 2 multi-rooms. :rolleyes:

lauriepops

Rent at 120? Sounds lovely.

My rent is 425pcm, c.tax is 90ish (145 atm cos they missed a couple of months DD when changing back to single occupancy)

So from purely that alone I doubt I shall be joining you in your challenge, but all the best to you!

LeeSouthEast

Not the best situation in the world, but it was a "needs must" at the time, and it'll speed up the longer-term goal.

Lokolo

Wow. Cheap rent.

I don't budget really. Just track everything so I know whats coming, then can have an idea what I could spend, what can save and such.

I also change places a lot, I haven't stayed in the same place for more than a year over the past 3 years, so its hard to budget for a whole year!

On a normalish month this year:

Rent: £320
Bills: £40 (water, gas and elec - I live in a house of 4)
Phone: £30
Food: £95 (it has gone up a lot over the past year! ARGH)
Petrol: £70 on average
Work: £20
Going out:.... this one I hate. £200 on average.

This then doesn't include Car Maintenance or Insurace. No CT as I am student :money:

It would be great if I could cut down on my going out amount though. I just can't seem to do it, I like to drink a lot

LeeSouthEast

Interesting comparison. The figures are much of a muchness if you cut out your 'going out' budget. I like a drink, but I ration myself. Due to the work I do the chance to actually get stonking drunk is maybe once every 3 months anyway.

anotherginger

what's your living situation? how on earth is your rent so cheap!?

HellsGranny

How about Gas, Electricity, Water, Landline, Council Tax?

Or are you still living at home?

Cheers, HG

bristol_pilot

My rent alone is over £8k, so I guess I won't be joining you!

£120 per month on rent - where on earth do you live? With parents, by any chance?

bristol_pilot

Maybe its a cardboard box in't middle o't road.