30 years old - am I spending too much of my salary?

londoner01

I live and work in London (another one with Londoner in the title!) and earn around £26 gross, and save a bit under 50% of my net. (Wow, I'd never said it that way! That looks great!)

Main reasons that keep spending down:
* I am in a couple and we share costs 50:50
* We used to live in a cheap one-bedroom flat, when that recently changed we decided to move in with flatmates to keep costs the same rather than staying by ourselves but incurring in 30% higher rent (staying in the same area because we like it)
* We seek out cheap opportunities to treat ourselves and make no apologies about that! (i.e. fancy dining with 50% discounts only, etc)
* I don't smoke, and I don't really drink alcohol

I still don't save as much as I could if I really wanted: I don't make my own food, don't seek out cheaper forms of transport than the standard travel card, I take trips to the theatre and treat myself. But I've found a balance that works for me between my long term goals (also the house!) and my living life in a way that keeps me as happy as it is ever possible to "plan" to be.

My suggestion is to try and give yourself a target (I found the "Save £12K in 2012" thread really helpful, even though I'm only aiming to get to £10K), that will help you give meaning to the things you give up and also help you keep track.

I agree with others that your rent is high: we're paying pretty much the same for the whole of a two-bedroom flat, in good condition, with separate living room, and in a very good location.

If you and your girlfriend are saving towards a common goal (like a mortgage on a house together or similar) it may work better for you guys to live somewhere more affordable so that more of your income can go to savings whether you split 50:50 or proportionally.

tell_it_how_it_is

londoner01 wrote: »

... earn around £26 gross, and save a bit under 50% of my net ...

And I always thought people earned loads more in London than elsewhere. Invest your thirteen pounds or so wisely.

But seriously, good post.

londoner01

tell_it_how_it_is wrote: »

And I always thought people earned loads more in London than elsewhere. Invest your thirteen pounds or so wisely.

But seriously, good post.

Ahahahaha, would you like to become my proof reader? Salary £13 per hour. One hour per year

Jegersmart

herpderpingstein wrote: »

So you save more than £1194 on earnings around £1700 a month, whilst commuting from zone 5 too 1? Not that I don't believe you but would mind elaborating?

I'm in a similar situation to OP where rent/commute costs leave me with 20%'ish savings despite earning well above London average amounts.

Yes there would seem to be som every good savers here, including the one that also saves in excess of 50% of net on a salary of £26(k):O

That is some going!

J

cashbackproblems

herpderpingstein wrote: »

So you save more than £1194 on earnings around £1700 a month, whilst commuting from zone 5 too 1? Not that I don't believe you but would mind elaborating?

I'm in a similar situation to OP where rent/commute costs leave me with 20%'ish savings despite earning well above London average amounts.

Yes!

My net pay is 1.9k, i spend £200p/m on travel card, £100pw in a house share, £100 for gym/phone and c£200-300 on food/going out.

Key is i spend 1hr commuting so pay less in accomm than someone who lives in central/their own place

innovate

cashbackproblems wrote: »

i spend £200p/m on travel card, £100pw in a house share, £100 for gym/phone and c£200-300 on food/going out.

That's 200 + 400 +100 + some 300 = £1K. Leaves 900 from 1.9K.

What about
Clothes?
Shoes?
Towels, bedlinen?
Haircuts, personal hygiene?
Holidays?
Dentist?
Council tax?
TV licence?
Presents?
Incidentals (books, newspapers, coffees, snacks etc etc)?
Broadband / computer / printer / printer consumables?
Does the rent include all water, gas and electricity?

Does that all come out of your savings?

200/mth for a 1hr commute into London sounds cheap - does your employer subsidise your travel? An annual season ticket from Guildford to London Waterloo (45-60 mins journey; no underground) is £3,092 - £258 a month.

londoner01

innovate wrote: »

200/mth for a 1hr commute into London sounds cheap - does your employer subsidise your travel? An annual season ticket from Guildford to London Waterloo (45-60 mins journey; no underground) is £3,092 - £258 a month.

I think cashbackproblems may have meant a 1hr commute within London. As he stated earlier he lives in zone 5, and a zone 1-5 travel card is about £190 a month.

herpderpingstein

cashbackproblems wrote: »

Yes!

My net pay is 1.9k, i spend £200p/m on travel card, £100pw in a house share, £100 for gym/phone and c£200-300 on food/going out.

Key is i spend 1hr commuting so pay less in accomm than someone who lives in central/their own place

That's pretty impressive, 633 for both commute and rent is really good for London, though I guess it's a large household share?

200-300 on fool/going out is pretty impressive also, I think I come close to that on just food alone!

MelaBella

hello another londoner is here...old thread though made an interesting read. OP should definietly cut on rent. i had a "pleasure" of renting in central LOndon myself, paid high rent and the only advantage was that i could actually walk home/get a short taxi ride after late night out. i take it you work city/CW area? get somthing nice within zone 1-2 along central or jubilee line with the short walk from tube to home and its never a failure.

mania112

The OP is American, right?

Not that it matters, i'm just trying to understand why he added the $ equivalent to his salary?!