Budgeting as a Single Man

bloc75

Hi,

2 months ago my IVA was formally completed, I got my certificate.
At the same time my wife decided to leave me. We were just getting financially sorted and then she decides that is the moment to throw it all away.

My employment situation is that I am a web designer who works 3 days for an agency pulling in £15k a year pro-rata from £25k. I also work 2 days as freelancer. Which gives me a variable extra income.

Now I have to rely solely on my own income and am currently taking advantage of my parents hospitality until I can sort out a place.

I have business expenses and also I'm going to have domestic ones. I don't really want to dilute my lifestyle, if anything I should enjoy my life now.

I am considering just taking on a fulltime job, and with my experience and skills and because my current job is £25k (they can't afford to pay me £25k anymore), I feel I can move into a job of that level.

If I do that some of my business expenses will be reduced, but some are on contract such as business services.

Or I just go fulltime freelancing and make a business out of it, because it can be more lucrative. Only drawback is the lack of a guaranteed income.

Any advice? I really don't know what to do.

Gromitt

Do you have any savings? If not, fulltime freelancing could be quite difficult, and banks are much like likely to borrow you money.

Maybe the best way would be to stay as you are with guaranteed 15K income and try to build your business. When you have sufficient backing, then leave it behind and go fulltime freelance.

telboyo

lend lend lend lend

bloc75

Gromitt wrote: »

Do you have any savings? If not, fulltime freelancing could be quite difficult, and banks are much like likely to borrow you money.

Maybe the best way would be to stay as you are with guaranteed 15K income and try to build your business. When you have sufficient backing, then leave it behind and go fulltime freelance.

Need to save up for a deposit for a rental place because £15k a year doesn't get me a decent house to live in.

I also don't want to lend of nobody. I've just paid back 2k overdraft and before that around £20k in an IVA.

I don't want anymore debt.

prowla

Budgeting for a single man...

Have you got enough for beer?
Yes?
Sorted!

:-)

bloc75

I don't drink that much, maybe once a week.

bloc75

Ok I have started to try and budget, here are some figures.

Domestic Expenses

Rent - £600
Electricity - £60
Gas - £60
Water - £30
Council Tax - £87 (including single man discount)
Home Insurance - £15
Broadband - £11
Car Insurance - £45
Pet Insurance - £15
TV License - £15
Green Flag - £3.75 (£45 p/a)
Gym - £40

£978.45

Business Expenses

£260.68

Business Liabilities
£2168 (2 credit cards, 1 overdraft)

Minimum payments for C/C = £78

Subtotal

£1317.43

I currently work for a company who pay me £1087 after tax per month, and that is for 3 days per week. Which gives me 2 days per week to freelance with.

So I essentially need to earn about another 1k a month from freelance to afford to live, as I haven't factored in food, petrol, entertainment and savings.

If I decide to take the plunge and go for a fulltime job at £25k which is what my current role is pro-rata, then I will be better off, but some of my business expenses would not disappear as I have equipment that is payable over 3 years.

Any advice? Is there anywhere I could potentially save? Is my projections correct?

PasturesNew

Your maths is shot. If you work 3 days a week, that gives you 4 days and 7 evenings to work on your freelance business

bloc75

PasturesNew wrote: »

Your maths is shot. If you work 3 days a week, that gives you 4 days and 7 evenings to work on your freelance business

No, working weekends is the reason my marriage suffered. Well one of the reasons.

I'm trying to find a balance between financial stability and a life.

I work out and run 5 days a week, Saturday and Sunday I want to keep for a life.

bloc75

Then again if I decide to go freelance 5 days a week. I don't have a guaranteed income, but I could potentially earn much more money.

mgdavid

reality check needed; well done for sorting your debt situation and not wanting to go there again.
Therefore you are going to have to earn at least as much as your intended lifestyle will cost. You either work harder / longer and have money to spare (no bad thing as you haven't budgeted to save into a pension) or you jog along and are continually short of readies. If your ex-partner couldn't tolerate you working long hours then they weren't right for you.