It's not a lot, but it's enough

SpekySquarehead

Hi there.

Glad to have been of service. As Louby said, strange to think I could be of help just by going about my normal life. I swear by YNAB now and can't imagine not using it. It's worked for me and many others in not only reducing debt but saving cash too. I hope it works just as well for you and I look forward to seeing your progress.

Chandelier.

Just catching up Speky.

I totally relate with the spontaneous outings with friends.. Mainly for food, woops.

Good to see you can increase your saving goal until you can find your limit. When I was a student I used to save around £600+. Goodness knows how. Once I'm back at work and my wages are back to normal I can concentrate on debt busting/saving.

I visited my grandad yesterday. He looked very happy and pleased to see me (at one point he wasn't bothered but I think he's softened). We spoke about savings and investments. He's a funny old man. He's always maxed his income where possible to get the best potential returns. It's an eye opener, especially with him being 92. It's only now he's wondering what the best option is to lump it all together. He stated that he draws a sum of approx £400 a time and uses it till its gone so this could last any amount of time. Point is he lives within his means and saves the rest. Gave me food for thought. I'm not sure how well I'd work with cash. I struggle to keep up with it.

Hope you manage to get your 5 NSD.

SpekySquarehead

Morning,

I’ve done the maths.

If I were to a buy a place and the mortgage payments were £500 (the maximum I can afford to pay) and looking at people who are in a similar position to me (single occupancy, 2 bed) and what their bills are per month (given I’ve never paid electricity, gas etc I didn’t have a clue) which I’ve assumed will be £250, worst case scenario. I’ve probably way over budgeted that but I’d rather be on the safe side and give myself a buffer.

My current immediate obligations (car, insurance, tax, petrol, phone, contact lenses and gym) totals just shy of £500. Meaning before I’ve spend a penny on food, I’ve £1,250 out my pay packet. That leaves me about £250.

£250 to live. Is that doable? Of course it is. When I grew up and my mum was on benefits there were weeks when we had £12 to last us for 7 days, so of course it can be done.

My question though is this, should it be? Am I biting off more than I can chew? Am I searching for this dream of owning my own home, just so I can sit in and do nothing since I can’t afford to go outside and socialise, have fun, live life?

Let’s assume/hope that I continue to be smart with my cash, no more loans or credit cards, and I take Martin Lewis’ advice and have an emergency fund, or start planning for xmas in January etc. Not to mention things like a haircut, dentist, pants – I’d be left with not a lot. Would I be happy?

I’m not quite sure if I’m being dramatic or wither I’m just writing and letting my hands flow and vent.

SpekySquarehead

Chandelier - seems we posted at the same time there.

An interesting idea from your Granddad, and actually once that I've heard before. The science behind it was people are more reluctant to hand over cash than they are a bank card - especially with contactless payment now. He might well be onto something. However I couldn't do it. I'd lose my wallet. Like I lost my watch on Monday. How can you lose a watch when it's on your wrist!

louby40

£250 isn't a lot really. I have about £700 left over of which 250 is food roughly.

Could you rent one of your rooms out? I did this for a time, it wasn't ideal because of my kids but as a single guy it could work. I rented out a large double £300 and a single £200 both included bills and were furnished. If you rented to a student you would still claim your single persons council tax allowance.

SpekySquarehead

Louby - I have considered it but I need to ask myself what I think is more important. I've craved my own space since I was an early teen so I think I'll try on my tod for a while and see how I get on.

joeyjimbles

I just took a look at my bills account to see if it might help you - we have:

gas
electricity
water (10 months)
council tax (10 months)
phone/internet
buildings insurance (10 months)
contents insurance (10 months)
mortgage (also any mortgage insurance/life cover)

service charges (if its a flat)
maintenance fund (for you to replace/fix things that break)
boiler/central heating servicing

Some categories to think about perhaps?

SpekySquarehead

Very helpful indeed Joey, thank you.

Didn't think about building and contents insurance or central heating servicing. By jings it aint cheap to run a home.

SpekySquarehead

Good morning,

I was paid yesterday and for the first time, I didn’t enjoy budgeting my cash for February.

Using the maths I explained earlier, I’m now putting away £750 so that I am used to living without this cash and it has become really apparent just how tight things will be. I’ve my best friends stag in early March which I need to budget £60 for and I’ve also a £50 payment to make toward my laptop. Leaving me with not a lot for food and the likes.

I’m glad I’ve had these thoughts lately. I think a rain check is needed on location and price of property.

Anyway. Another NSD yesterday and today should be the same. My friends are trying to do something but I think I’ll turn up later once they’ve had their takeaway and I can save the cash.

Working tomorrow during the day but talks of meeting up with some friends so we’ll see how we get on.

Happy Friday everyone.

Chandelier.

Speky is stag do UK or abroad? Always good to have a budget. Once it's gone, it's gone.

In regards to thoughts re getting on property ladder.. is there anyway you could postpone the desire to buy your own place, say about 6-12 months or around that.. But get your deposit for your goal and the money after that you save is extra and can go into a pot for household budgets if you get me/towards possible household purchases/any expensive for DIY etc. Kind of like an emergency fund I suppose.

My plan for when I finally decide to move out/get on property ladder is to allocate 2/3 of saving to house deposit and the other 1/3 for any additional expenses/DIY etc.

Just food for thought.

Sounds a good plan of eating at home before joining friends.. No questions to answer then. I've just made up a batch of buttermilk chicken, it's marinating in the fridge as we speak.

Hope you have a good day.