Cost of Living

honeypop

Krissboy:

You have no water rates on your estimation of monthly outgoings, so need to include a figure for that (approx £20ish)
Also you'd have to be on a really good deal or barely using it to get gas/elec for £15 each per month, check your areas suppliers to see if thats realistic.
Also, you include £16 for internet, don't you need to pay for a phone line aswell to have that or is that included in the £16?
Do you have a mobile? That would need to be counted for.
Buildings and contents insurance, probably around £20 each depending on values of building/possessions.

kriss_boy

honeypop wrote:

Krissboy:

You have no water rates on your estimation of monthly outgoings, so need to include a figure for that (approx £20ish)
Also you'd have to be on a really good deal or barely using it to get gas/elec for £15 each per month, check your areas suppliers to see if thats realistic.
Also, you include £16 for internet, don't you need to pay for a phone line aswell to have that or is that included in the £16?
Do you have a mobile? That would need to be counted for.
Buildings and contents insurance, probably around £20 each depending on values of building/possessions.

Im from scotland so our water bill is incorporated in council tax.

Ill take on board about the elec and thanks for the estimate on home insurance!

I wouldnt get a landline number right away unless I could negociate a cheap one. Simply because my mobile fone contract is virtually free. Its only 17 quid a month but this year i got £130 credit instead of an upgrade AND the first 4 months half price.. so the whole year was nearly paid for.

scrummy_mummy_2

So, pressumably, if you're going to extend, you'll need to put a budget line in for 'savings' to pay for it all then?
Suggest you also have a contingency line for unexpected bills (car breaks down, washing machine breaks etc)
Also, what are you gonna sleep on, eat off, sit on? Have you already got furniture, plates, cutlery, fridge, freezer, oven, microwave, kettle, unfeasibly huge stock of Pot Noodles?

If you are young, remember you only get one shot at being youg so live now and worry about mortgages/bills later.

I have owned my own home since I was only just 19 and regret the first 6 years of being a home owner, the struggle, living on the bread line, worry etc...I should have been in Ibiza with my mates whilst I could wear a bikini without frightening small children (I have 3 you see!) and worried about home owning later....I'm 40 now and can't get those years back and don't really think it helped me get where I am today at all.
Still.....bitter and twisted I shall be!

tim_n

ok here is my 2p

First, make sure that when you register your council tax you get a single persons rate on your flat. That'll mean you'll be 25% better off.

Council tax is usually paid up front for 10 months, then has a two month rest period. Take this into account with your budget as you may find yourself when you're on a shoestring in this unfortunate position.

Locate your local shops that are on your route home from work. If you have an aldi/lidl/farmfoods/nettico etc you're in luck.

If you've got the inclination and the time, consider an allotment - for £20 for a year you can grow a lot of your own food, get fit and keep out of a small depressing flat (I'm in the same situation, bigger mortgage but higher income).

Limit your social fund - I find £80pm is adequate, but at 24 I don't club but pub and have friends round for evenings in playing games (dominos, cards etc) and byo bottle

You can get away with low gas electricity bills, make sure you have very warm clothes and blankets. Don't forget central heating hasn't always been available to the masses, but you need to keep above 18'C in bed otherwise you'll suffer. Try only warming your bedroom. If you're in an older property with a fireplace - think about getting it unblocked if you can as this can not only make you warm, it'll also make you happier pyschologically!

Eat less meat - perhaps only a few times a week, and make a routine of making lunches. I used to live on about £15 pw. Take up a cheap hobby as well to keep you mentally active and alert. Staying on your own on a shoestring can be very depressing and dull!

If you can, get a water meter installed, you'll use very little water and most companies install them free.

If you've got a mobile phone and don't want broadband/internet then don't pay for a landline - you can use the net at libraries etc. You can also get free mobiles from places like e2save (and I mean totally free on a contract with 200 minutes 100 texts etc). Check out the mobiles board for more details.

Don't bath too often, have showers. You can get cheap tap attachments to shower which save money not only on water but on heating the water too. You can also cut down the number of showers (every other day) if really necessary.

TV can sometimes be a necessity, but a license costs over £100. You can still get b&w sets cheap (especially from charity shops or freecycle) and the license is half. You probably won't get digital though! Radio is free. I've found radio 4 by far the best entertainment with good plays etc.

Turn off everything at the plug and only turn it on when needed. You don't need a clock on your microwave - wear a watch.

Don't spend money on decorating, furniture etc - try and get as much off freecycle and charity shops.

Don't skimp on essentials. Make sure you get your gas appliances checked and if buying electrical stuff second hand, look for the safety test.

If you can, dump your car in the short term - if it is a luxury item, leave it with your parents if you can't afford it for a bit, get a rebate on your insurance and road tax and take public transport, cycle or walk. Most journeys you can do walking is better for your health even if it is raining (take an umbrella) and saves your pennies.

Make overpayments where possible - most providers allow 10% over repayments and if you've stuck to the above tips you'll find yourself much better off. Every overpayment you make reduces your debt for the next month - so it only makes sense.

Stick around in oldstyle moneysaving. Even on £15 a week you can eat like royalty!

None of the above comments are obligitory (except perhaps the council tax one - that'd just be wasting money!) and will require a big change in lifestyle. It depends how much luxury you want in your life and when you want to retire!

lilac_lady

The fact that you've already thought about managing your money means that you'll be ok. You understand that you have to make sacrifices in the short term to ensure your long term is better for you. Lots of the above tips are great - the only one I don't like is the "don't need to shower every day" one...lol...You don't want to be broke and have no friends....

tim_n

didn't say you didn't have to wash! Just use the old fashoned flanel, soap and sink!

http://www.moneychump.org/2007/02/20/52-money-hacks-one-for-each-week/

Something posted by an American that generally rings true here too..

pinkzebra

Remember to leave a bit of money for house maintenance. If you have a car, then also budget for servicing, new tyres etc. And don't forget you may want money for a holiday or things like birthday presents, and clothes/shoes.

You can save a bit of money by taking a packed lunch to work (£40 a month on lunches is £480 a year - nearly a months mortgage repayments).

If you had packed lunches, then I would think you could get away with £60 a month on food.

Good luck with the house.

kriss_boy

Well Im trying to reduce what I spend at work.. I have a banana roll which is 52p... then soup is 95p, yogurt 40p and apple 22p. But those are from our cafe and when I get my own place fruit and rolls will be cheaper when I buy them in shops rather than our cafe.

chriss1979

Why not buy them from shops now and start saving the money straight away?