Can we afford to rent??!!

jaype

Good luck to you both - I think you could live on the £400 pm, though make sure that you take it out in cash and have a 'once it's gone, it's gone' attitude. we lived on that with 2 children while my dp was doing teacher training, so it can be done - though what we spent on nappies will be spent by you on going to the pub and good on you! One thing, where in Cornwall are you renting? I am from those parts and I know (because we considered moving back there recently) that you can get a 3 bed house for £650 pcm away from the coast in places like Camelford or Bodmin. What you are payiong for a one bed seems like London prices...

sarah_elton

litaus wrote: »

Noone has any money early in their career or when they first leave home. Enjoy it and remember that it gets better (hopefully)

I have to agree. Could you save more money each month by each living at home? Of course. Do you want to do this? Probably not or you wouldn't be going through this thought process. If you're confident that in your chosen career salary progression will be reasonable, then a couple of years of living on a tight budget won't do you any harm. I moved out of home three years ago (couple of years after graduating) and money was tight the first couple of years. Now I'm in a better paid job and own my own place. I still have to budget carefully but it's certainly all go easier.

It's true that you'll be able to put little to nothing into savings, but when renting you don't have huge unexpected costs that homeowners do when something goes wrong. Biggest risk is probably a big car repair bill.

Only thing I did notice was the budget for debt repayment - you don't mention the size of debts, but if £50/month is only minimum repayments then my view above changes. If you want to buy together in future you really want to clear debts first (excluding student loans which I don't think it's necessary to). Visit the debt-free wannabe board for links to snowballing sites (where you work out how long your debts will take to clear), and other budgeting/debt reducing tips.

Unlike a lot of people, you're going into it eyes wide open with a clear budget. If you know your disposable income each month and stick within it you won't rack up debts, so there's nothing wrong with what you're doing. As others have said, £425/month disposable for two people is low, but you know your own spending patterns. Have a look at what you each spend per month beyond bills/food. If it's currently much higher, it'll be tough to cut back. If you're frugal already you won't notice it as much.

sarah_elton

Melissa177 wrote: »

Agree.

Even in the City, you rarely get starting salaries for grads at 50K. 38K is about the top end.

Spot on. As others have said, a good degree might get you training as an accountant/actuary etc but they involve professional study for a few years, after which newly-qualified starting salaries can be £40-50k.

I studied business at Oxford so had a lot of friends heading straight into decent City firms, and no-one started on £50k, even with joining bonuses. Places on top entry schemes are very, very limited when you look at the number of graduates in the country. And people who do get into these jobs work horrendous hours - the reason I didn't even bother applying. I earn less than them now but I'm home at 6:30 every night. And on a per-hour basis I probably earn more.

Generali

peter999 wrote: »

You're having a laugh.

They hand out £50k+ jobs like smarties, do they !!??

peter999

I didn't say that. When I said 'easily' I meant that it was perfectly possible to exceed that, not that you could get a job like that as easily as picking up a tin of beans in Tesco.

For example, Maths Grad with a 1st starting in Economic Analysis, Derrivative Pricing or some areas of arbitrage can make £45-60k plus pension, perks and bonus in their 1st year.

I stand by what I say although I should have phrased it more accurately. The original point was to say to the poster that claimed that it was pointless to get a degree that (s)he was wrong.

Sorry for posting on Mrs Generali's name.

Re the OP, I wasn't trying to suggest that it's easy starting out. I started out inputting money market trades into an antiquated middle office system at £5.50 an hour. That was very little, even then

mrkenneth

Found somewhere advertised today for £200 cheaper at £425 a month, however this is through a private landlord and not an agency.

olly300

mrkenneth wrote: »

Found somewhere advertised today for £200 cheaper at £425 a month, however this is through a private landlord and not an agency.

Makes no difference who you rent from.

The only thing I found with renting from an agency is that if they manage the property it takes a while for them to inform the landlord that something is wrong. There as most private landlords who manage their own properties have some interest in checking their property isn't falling apart if you tell them there is a water leak.

I would use the search facility on this forum and you will see complaints about both agencies, letting and estate agents, and private landlords.

There are good landlords out there but you won't hear about them.