Saving Advice

BubbleBoy

Hey all,

I am a single male 28 year old Londoner.

I'm ashamed to say I've only got 4k in savings currently and its taken me 27 years to learn how to budget

I kind of feel like I should be making up for lost time now. Just had a pay rise and this is my current monthly budget:

Pension Contribution before Tax 4% (employer contribution matched at 4%)

Net Income 1700

Rent 480 inc bills
Phone 30
Gym 120
Tube 135
Food Budget 150
Netflix 6
Spending Money (eating out/entertainment) 100

Savings 679

Over the past few years I've developed anxiety over not having sustained income in the future. I work in a project based industry and its very common to be let go after a project has finished. I however know that I am safe for at least till the end of 2014. I also feel like I just do not earn anywhere near enough to even consider having a family or dating a girl seriously!

Do you think my budget is reasonable?

I am considering cutting my gym membership (its so expensive because its with an instructor but I have lost over 5 stone from it and its a source of happiness for me). The phone contract ends in August and I will be switching to PAYG. Never getting another phone contract again!!

BubbleBoy

sweetilemon

4k savings are better than debt. Wouldnt put your life on hold not dating due to your income! Relationships dont have to cost money, and if u end up living together your bills are halved...although also not a good reason to date! Its a good income though good choice to save for future. Well done on your weight loss!
Virgin mobile do 30day rolling contacts - cheaper than PAYG but not tied in longer than a month at a time.

averageish

I have not lived in London for many years, but £120/month for a gym seems incredibly expensive unless you're doing weekly 1 on 1 sessions. Working out at home would save you almost 10% of your income, quite a chunk.

There are plenty of running, cycling etc clubs you could join which would cost next to nothing or perhaps even be free. Then again, it seems to be your main entertainment spend, so it cutting it would have to result in a tangible benefit either now or in the future, for you to feel good about doing so.

Cutting expenditure is like dieting, it should not feel like a punishment or you end up rebelling against yourself, at least in my experience.

Obvious question, but is there any way of cutting out the £135/month travel costs, cycling perhaps?

Your income is quite low for the London area, if you're not tied, could you move North, say, to Leeds and district, earn the same and potentially enjoy a higher standard of living?

innovate

You are doing the right thing by detailing your spend but a few bits are missing - clothes, shoes, holidays.....http://www.stoozing.com/calculator/soa.php

opinions4u

Gym 120

I know where I'd be freeing up £1,440 a year!

amiehall

You do need something to keep you busy and if you love going to the gym, it's worth paying for it. However, surely there is a cheaper option than this £120 gym. I was shocked when my bf told me his cost £50pm!

Also how expensive do you think a girlfriend is? Quite funny! Most women don't need financial support while you're dating.

BubbleBoy

innovate wrote: »

You are doing the right thing by detailing your spend but a few bits are missing - clothes, shoes, holidays.....

I do not go on holiday, or buy clothes. If I need to buy an item of clothing this comes out of my 'spending' category. The gym is actually Crossfit, but yes youre all right its quite expensive, but its probably my only consistent source of entertainment, I'll have to mull that one over and consider joining a regular gym.

Working out at home really is not an option. Im paying 480 inc bills in London. This basically means I live in a cupboard and am far from central (where I work).

Its interesting that you say its low pay for London, I honestly thought I was on good pay for someone my age, maybe I need to set my sights a litter higher!

Maybe I'm dating the wrong people but for me it costs money to go out and eat or have a little fun, even if I'm just paying for myself!

ViolaLass

BubbleBoy wrote: »

Maybe I'm dating the wrong people but for me it costs money to go out and eat or have a little fun, even if I'm just paying for myself!

There are so many free things you could do - museums, performances, the South Bank etc. Hunt them out.

averageish

BubbleBoy wrote: »

I do not go on holiday, or buy clothes. If I need to buy an item of clothing this comes out of my 'spending' category. The gym is actually Crossfit, but yes youre all right its quite expensive, but its probably my only consistent source of entertainment, I'll have to mull that one over and consider joining a regular gym.

Working out at home really is not an option. Im paying 480 inc bills in London. This basically means I live in a cupboard and am far from central (where I work).

Its interesting that you say its low pay for London, I honestly thought I was on good pay for someone my age, maybe I need to set my sights a litter higher!

Maybe I'm dating the wrong people but for me it costs money to go out and eat or have a little fun, even if I'm just paying for myself!

Never anything wrong with aiming higher thats for sure.

Salary will very much depend on industry. In 2001 I was 21, a software developer (not particularly skilled compared to some) and my take home was £1900/month plus a bonus of around £5k per annum. I lived in harrow on the hill in a shared flat on a very posh road despite my room being an oversize cupboard, it served me well. I was reasonably ok for money but I did not have to travel to work by tube, just a five minute walk to work, which was a big advantage. I did not save anything at the time though, oops.

You may fare better up north but up north is not London and London certainly had, for me at least, a certain attraction. I missed it for many years!

The gym is still screaming at me to be cut. I'm no fitness fanatic, but I think my limit for a gym would be about £20/mo (in the north). Then again, if you enjoy it mate, you cant put a price on that I suppose.

Good luck!

atush

I'd keep with a Gym, just not your current one?

Wilkins

Cut the gym and start running. Visit your local Parkrun -you'll meet lots of people and it's free.