New job = more going out than coming in

Thatsthespirit

Sorry if this is in the wrong place, wasn't sure where to put it.

I'm working in a dead end job at the moment which I hate, currently off on 2 weeks sick through stress! I'm only 23. Spoke to my Dad and he's going to try and get me on with a contractor through his company. Assuming I get an interview + offer, I will start at the bottom but will have greater opportunities to work up and earn a better salary over time.

However, he's told me that starting wage after tax is usually around £950 p/m. My bills all in literally equate to that in my 2 bed flat, if not more when interest rates go up end of the year. (I have a mortgage via help to buy scheme)

How can I prepare for this, what can I do and what can I cut?

Mortgage/ 330 (due to rise when interest rate goes up - end of year)
Poll Tax/ 79
Water/ 23
All electric meter/ 86
Life + Buildings insurance/ 29
TV/PHONE/INTERNET/ 78
Mobile/ 12
Car finance /155 (stinger)
Food + toiletries/ 160
Petrol/ 20-40
Apple Music/ 10

I have £700 in a savings account and £200 in another account. My current account is as good as empty but I'm paid end of the month

Despite earning £1400 after tax in my job at the moment, I will do anything financially to make it work if it means getting out of the hell hole!

Any tips to prepare if I am successful? Cheers

clint_S

You really need to fill out a complete budget, but looking at your figures shown do you need £78 on TV/phone /internet? and the £10 on Apple Music isn't really required.

Ebe_Scrooge

From what you've posted here, a few things spring to mind :


Mortgage/ 330 (due to rise when interest rate goes up - end of year)
Poll Tax/ 79
Water/ 23
All electric meter/ 86
Life + Buildings insurance/ 29
TV/PHONE/INTERNET/ 78 - this seems very high, you should be able to reduce this significantly by switching suppliers. And you don't need to be paying any TV subscription, there's plenty of choice on the standard Freeview.
Mobile/ 12
Car finance /155 (stinger)
Food + toiletries/ 160 - Can you reduce this by shopping at Lidl / Aldi ?
Petrol/ 20-40
Apple Music/ 10 - This can go.


You've not specified any spending on entertainment, holidays, going out etc. If you are spending anything here then that's another area for cutbacks.


It's worth filling out a complete SOA and posting it back here, then others can come up with suggestions as to where savings could be made : http://www.stoozing.com/calculator/soa.php


Ultimately, if your outgoings are more than your income then you need to cut back on your outgoings. Or else ( or maybe additionally ), look for extra work at evenings / weekends to tide you over the rough patch.

andyfromotley

Well the good news is that you can meet yur current obligations just. Why is your interest rate going up? what will your payments rise to?Some solutions of the top of my head. I am assuming that you are single and no kids.

Get rid of sky. You can get phone and internet for £15 pcm or less.
Get rid of apple music.
Rent a room.
Move in with family and rent your flat.
Get a job in the evenings.
Get a job at weekends.


All and any of these will help your current situation until you move up the ladder a bit in your new job.

moneyistooshorttomention

Why have you got life insurance?

That's the type of thing people only have if they have a joint mortgage with a spouse and/or have children. You have neither....colour me puzzled at that...

Siamese

I think you need to redo your outgoings as there is nothing in there for
- car tax
- car insurance
- car maintenance
- entertainment/holidays/christmas
- clothes
etc.

You could save a lot by getting a better broadband and tv deal (you need to budget for a tv licence too) and getting rid of the car
Get a lodger?
An evening/weekend job?

fruitisbad

Could you get a lodger? You say you have a 2 bed flat.

You can charge up to £354/month tax free plus get them to chip in on bills etc.

Thatsthespirit

moneyistooshorttomention wrote: »

Why have you got life insurance?

That's the type of thing people only have if they have a joint mortgage with a spouse and/or have children. You have neither....colour me puzzled at that...

I bought this flat with my ex so perhaps thats why?

Thank you all for such quick replies. Agree apple music can go and the reason my tv is so high is down to having sports + HD I'm guessing.

I agree I haven't included a lot of hidden bills such as TV license (just paid off the year last month) car tax is £20 and due March, as is car insurance which was paid off for the year (£400). MOT is due March also.

Flat is nowhere near big enough for a lodger. Been with my current girlfriend 6 months, could ask her to move in (she happily would), I'm guessing this could help me out loads.

HappyMJ

Thatsthespirit wrote: »

Sorry if this is in the wrong place, wasn't sure where to put it.

I'm working in a dead end job at the moment which I hate, currently off on 2 weeks sick through stress! I'm only 23. Spoke to my Dad and he's going to try and get me on with a contractor through his company. Assuming I get an interview + offer, I will start at the bottom but will have greater opportunities to work up and earn a better salary over time.

However, he's told me that starting wage after tax is usually around £950 p/m. My bills all in literally equate to that in my 2 bed flat, if not more when interest rates go up end of the year. (I have a mortgage via help to buy scheme)

How can I prepare for this, what can I do and what can I cut?

Mortgage/ 330 (due to rise when interest rate goes up - end of year)
Poll Tax/ 79
Water/ 23
All electric meter/ 86
Life + Buildings insurance/ 29
TV/PHONE/INTERNET/ 78
Mobile/ 12
Car finance /155 (stinger)
Food + toiletries/ 160
Petrol/ 20-40
Apple Music/ 10

I have £700 in a savings account and £200 in another account. My current account is as good as empty but I'm paid end of the month

Despite earning £1400 after tax in my job at the moment, I will do anything financially to make it work if it means getting out of the hell hole!

Any tips to prepare if I am successful? Cheers

You're 23 and calling Council Tax Poll Tax. That was way before your time. It was withdrawn in 1990 before you were born.

You've also got Life Insurance. Does that mean you have a dependant? You do not need life insurance if you don't have a partner or a child who relies on your income. It's not required.

£20 a month in petrol. You must either have a very economic car or don't travel far. If you don't travel far consider getting rid of the car, walking, cycling and getting taxi's on poor weather days. You've not listed any amount for car insurance, vehicle excise duty (commonly known as road tax) or maintenance of the vehicle. Are these amounts included in your lease payment? If a car is essential you might consider buying a cheap vehicle and paying these expenses yourself. You'd save money.

Thatsthespirit

HappyMJ wrote: »

You're 23 and calling Council Tax Poll Tax. That was way before your time. It was withdrawn in 1990 before you were born.

You've also got Life Insurance. Does that mean you have a dependant? You do not need life insurance if you don't have a partner or a child who relies on your income. It's not required.

£20 a month in petrol. You must either have a very economic car or don't travel far. If you don't travel far consider getting rid of the car, walking, cycling and getting taxi's on poor weather days. You've not listed any amount for car insurance, vehicle excise duty (commonly known as road tax) or maintenance of the vehicle. Are these amounts included in your lease payment? If a car is essential you might consider buying a cheap vehicle and paying these expenses yourself. You'd save money.

Alright patronize. :money:

See above re. LIFE insurance.

See above. Between 20-40, not '20'. How would I get rid of a car I have on finance?

Deep_In_Debt

Thatsthespirit wrote: »

I bought this flat with my ex so perhaps thats why?

Thank you all for such quick replies. Agree apple music can go and the reason my tv is so high is down to having sports + HD I'm guessing.

I agree I haven't included a lot of hidden bills such as TV license (just paid off the year last month) car tax is £20 and due March, as is car insurance which was paid off for the year (£400). MOT is due March also.

Flat is nowhere near big enough for a lodger. Been with my current girlfriend 6 months, could ask her to move in (she happily would), I'm guessing this could help me out loads.

If you did have a lodger and if your GF moves in...your Council Tax will rise as you will no longer have singer person discount. I had lodgers for a while a few years ago and didn't find it cost effective as all my bills increased and lodger's rent was not enough to cover the increase.

Plus my house insurance costs were more expensive. I'd never do the lodger route again.