I'm going to need a (new) budget
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Therese1
Posts: 160 Forumite
Hi all,
I have made the decision that later this year I WILL be giving up the corporate life and heading off in a new (currently unknown!) direction. I am in an unenviable position in saving from many years of working & earning very well. I do plan to take a few months to think about what to do next. Whatever that is, it will be part time and will be on MY terms rather than via the hamster wheel.
I appreciate that this is the Debt Free Forum and I'm not in debt. If anyone thinks the thread should be moved then please let me know - the SOA automatically brought me here.
The CC is a new thing, in theory to let me see what I'm spending and possibly I'll use it for any new business costs once I know what I'm doing. It is 0% til May 2020, £6,000 limit and it will be paid off by then. I have never used credit cards before and I have no intention of paying a penny interest now.
So, my questions are....
What is a realistic budget going forward? Initially I wont be earning at all - I'm willing to give myself 6 months at this. However, part of this exercise is also to work out what I want/need to earn in my new life to live reasonably - I am not looking to match my current earnings, I want a life to go alongside work that interests me!
Here is my "no earnings" SOA - but using my current baseline bills. Currently I bring in £2700 per month and don't need to budget so I have no idea on food, entertainment etc, but have made a guess on what it might 'need' to be in future. Feel free to advise me here!
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0 (currently company car)
Monthly Income Details
Monthly income after tax................ 0 (once I leave)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 28
Gas..................................... 28
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 16
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 16
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 42 (build & cont - stupid expensive but I keep missing the "auto renew" date. Lesson learned for Feb 2019!)
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
haircuts.............................. 15 (annual spend/monthly)
Entertainment........................... 150 (is this reasonable)
Holiday................................. 150 (I plan on going on lots!)
Emergency fund.......................... 200
Total monthly expenses.................. 1061.12
Assets
Cash.................................... 50000
House value (Gross)..................... 120000
Shares and bonds........................ 10000
Car(s).................................. 0
Other assets............................ 1000
Total Assets............................ 181000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Santander CC...................1500......50........0
Total unsecured debts..........1500......50........-
Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 1,061.12
mount avail for debt repayments.... -1,061.12
onthly Unsecured debt repayments. 50
Amount short for making debt repayments. -1,211.12
Personal Balance Sheet Summary
Total assets (things you own)........... 181,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,500
Net Assets.............................. 179,500
I have a corporate pension which in theory will be £20,000 pa when I'm 60 in 12.5 years time.
I will be giving up my company car so will have to buy one - I have no idea what the monthly running costs are likely to be? Any clues?
Paid my mortgage off several years ago.
Thank you,
T
I have made the decision that later this year I WILL be giving up the corporate life and heading off in a new (currently unknown!) direction. I am in an unenviable position in saving from many years of working & earning very well. I do plan to take a few months to think about what to do next. Whatever that is, it will be part time and will be on MY terms rather than via the hamster wheel.
I appreciate that this is the Debt Free Forum and I'm not in debt. If anyone thinks the thread should be moved then please let me know - the SOA automatically brought me here.
The CC is a new thing, in theory to let me see what I'm spending and possibly I'll use it for any new business costs once I know what I'm doing. It is 0% til May 2020, £6,000 limit and it will be paid off by then. I have never used credit cards before and I have no intention of paying a penny interest now.
So, my questions are....
What is a realistic budget going forward? Initially I wont be earning at all - I'm willing to give myself 6 months at this. However, part of this exercise is also to work out what I want/need to earn in my new life to live reasonably - I am not looking to match my current earnings, I want a life to go alongside work that interests me!
Here is my "no earnings" SOA - but using my current baseline bills. Currently I bring in £2700 per month and don't need to budget so I have no idea on food, entertainment etc, but have made a guess on what it might 'need' to be in future. Feel free to advise me here!
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0 (currently company car)
Monthly Income Details
Monthly income after tax................ 0 (once I leave)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 28
Gas..................................... 28
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 16
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 16
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 42 (build & cont - stupid expensive but I keep missing the "auto renew" date. Lesson learned for Feb 2019!)
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
haircuts.............................. 15 (annual spend/monthly)
Entertainment........................... 150 (is this reasonable)
Holiday................................. 150 (I plan on going on lots!)
Emergency fund.......................... 200
Total monthly expenses.................. 1061.12
Assets
Cash.................................... 50000
House value (Gross)..................... 120000
Shares and bonds........................ 10000
Car(s).................................. 0
Other assets............................ 1000
Total Assets............................ 181000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Santander CC...................1500......50........0
Total unsecured debts..........1500......50........-
Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 1,061.12
mount avail for debt repayments.... -1,061.12
onthly Unsecured debt repayments. 50
Amount short for making debt repayments. -1,211.12
Personal Balance Sheet Summary
Total assets (things you own)........... 181,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,500
Net Assets.............................. 179,500
I have a corporate pension which in theory will be £20,000 pa when I'm 60 in 12.5 years time.
I will be giving up my company car so will have to buy one - I have no idea what the monthly running costs are likely to be? Any clues?
Paid my mortgage off several years ago.
Thank you,
T
0
Comments
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You could easily get that food spending down with some simple things, like downshifting a brand perhaps, it takes some effort but we feed two people on a similar budgetHi all,
I have made the decision that later this year I WILL be giving up the corporate life and heading off in a new (currently unknown!) direction. I am in an unenviable position in saving from many years of working & earning very well. I do plan to take a few months to think about what to do next. Whatever that is, it will be part time and will be on MY terms rather than via the hamster wheel.
I appreciate that this is the Debt Free Forum and I'm not in debt. If anyone thinks the thread should be moved then please let me know - the SOA automatically brought me here.
The CC is a new thing, in theory to let me see what I'm spending and possibly I'll use it for any new business costs once I know what I'm doing. It is 0% til May 2020, £6,000 limit and it will be paid off by then. I have never used credit cards before and I have no intention of paying a penny interest now.
So, my questions are....
What is a realistic budget going forward? Initially I wont be earning at all - I'm willing to give myself 6 months at this. However, part of this exercise is also to work out what I want/need to earn in my new life to live reasonably - I am not looking to match my current earnings, I want a life to go alongside work that interests me!
Here is my "no earnings" SOA - but using my current baseline bills. Currently I bring in £2700 per month and don't need to budget so I have no idea on food, entertainment etc, but have made a guess on what it might 'need' to be in future. Feel free to advise me here!
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0 (currently company car)
Monthly Income Details
Monthly income after tax................ 0 (once I leave)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 28
Gas..................................... 28
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 16
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 16
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 42 (build & cont - stupid expensive but I keep missing the "auto renew" date. Lesson learned for Feb 2019!)
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
haircuts.............................. 15 (annual spend/monthly)
Entertainment........................... 150 (is this reasonable)
Holiday................................. 150 (I plan on going on lots!)
Emergency fund.......................... 200
Total monthly expenses.................. 1061.12
Assets
Cash.................................... 50000
House value (Gross)..................... 120000
Shares and bonds........................ 10000
Car(s).................................. 0
Other assets............................ 1000
Total Assets............................ 181000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Santander CC...................1500......50........0
Total unsecured debts..........1500......50........-
Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 1,061.12
mount avail for debt repayments.... -1,061.12
onthly Unsecured debt repayments. 50
Amount short for making debt repayments. -1,211.12
Personal Balance Sheet Summary
Total assets (things you own)........... 181,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,500
Net Assets.............................. 179,500
I have a corporate pension which in theory will be £20,000 pa when I'm 60 in 12.5 years time.
I will be giving up my company car so will have to buy one - I have no idea what the monthly running costs are likely to be? Any clues?
Paid my mortgage off several years ago.
Thank you,
T
the entertainment one is a personal thing as everyone's idea of entertainment is different. 0 -
Are you guessing some of this? Electric and gas is low and really only £20 on clothes? Do you not pay water either?
Re a car, check out the likely insurance on some comparison websites for the kind of car you might like. Then car tax, breakdown insurance and a yearly mot. Are you paying cash for a car?
It's great you have the courage to take a break and change direction. Hope it works out.0 -
Thank you Ceb1995....Yep I honestly don't know what my food spend is at the minute...would be a good exercise for me to try a month on £200 just now to see how I get on and work down from there. When I'm organised I do enjoy cooking from scratch and using the slow cooker so the brand challenge will be good to try. Entertainment- you are right, it's all relative really.0
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Are you guessing some of this? Electric and gas is low and really only £20 on clothes? Do you not pay water either?
Re a car, check out the likely insurance on some comparison websites for the kind of car you might like. Then car tax, breakdown insurance and a yearly mot. Are you paying cash for a car?
It's great you have the courage to take a break and change direction. Hope it works out.
Hi Fireflyaway, thank you.
No guessing with my bills, gas and electric combined is £56 per month and in Scotland water is included in Council Tax.
The clothes is a complete guess, but then again I hate clothes shopping...it really is a "needs must" chore!!!128512; that I put off and only do it when I need something replaced. I literally wear a pair of shoes til they are done before replacing them! I'd rather shop in DIY stores or go travelling!
Having said that, maybe £40/month budget would be more practical and realistic going forward?
Re the car, yes I have to cash in the shares when I resign so I was going to use this for a car. I haven't owned a car for over 25 years so have no idea on the running costs.
Thank you for the good wishes, I'm currently flitting between excitement at leaving the rat race and toxic environment and taking back control myself, to panic thoughts of "what are you thinking of woman"??!?
I fully appreciate that I am so lucky to have the choice.0 -
Well I dream of doing something similar to what you're planning to do but as yet I haven't found the b@lls to go through with it:D. One day hopefully I will start a similar thread...
In your position I'd set a monthly budget and road test it before you jump ship. So live to whatever budget you set for say 6 months. Personally I think you may find things like entertainment and holiday spend is on the low side, particularly during the period you aren't working...you will have alot of time to fill after all.
I absolutely get the draw of leaving the rat race but the rat race has given you a comfortable mortgage free life. This decision will obviously mean a significant adjustment in lifestyle so I would attempt to live that lifestyle before you go, to ensure your budget stacks up and the lifestyle change actually suits you.0 -
How much of your salary do you save each month at present? That will let you know how much you are currently spending. Are there any things you currently spend on that you won't when you leave your job?
Without a job you will have more time, what will you be doing in it and will it cost you money? More time can easily turn into a higher entertainment budget.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Just another thing to consider - remember to ask your employers to get evidence from their insurers that you haven!!!8217;t made any claims ( if this is the case) so that you can get a good introductory no claims bonus. As you havent had insurance for many years in your own name you won!!!8217;t have any bonus. Go over to the insurance board for advice if you think you need advice before you start getting quotes.0
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Congratulations on putting yourself in a position where you can do this. how old are you and what is your pension provision so far?
Re your soa I agree road testing it or putting an app for tracking spending on your phone is a good idea. £200 for food for 1 sounds a lot but if you are used to picking up wine with your food shop or have shopped without restraint up until now it may take you a while to get used to living within a tighter budget.
Car insurance may be high as we found when my husband gave his company car back although he had no accidents on his record the lease company insisted on it going into the car body shop to have chips and dents from hospital car parks sorted out (he was a medical engineer). That ended up as a £3k claim on his insurance record and consequently showed on his letter from company insurers. Buying a car was his biggest expense and car maintenance depends on how old a car you go for.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
theoretica wrote: »How much of your salary do you save each month at present? That will let you know how much you are currently spending. Are there any things you currently spend on that you won't when you leave your job?
Without a job you will have more time, what will you be doing in it and will it cost you money? More time can easily turn into a higher entertainment budget.
Since I made the definite decision that I was going - about 6 months ago - I've saved £1000 a month without too much difficulty. This is over and above the £400 I have going out on standing order to two savings acounts each month. However I guess that is without the cost of running a car and I've not been 'careful' with my food shopping or entertainment in that time.
My main sports are cycling and walking and I already have my bicycle so no extra costs with this really.0 -
bouncydog1 wrote: »Just another thing to consider - remember to ask your employers to get evidence from their insurers that you haven!!!8217;t made any claims ( if this is the case) so that you can get a good introductory no claims bonus. As you havent had insurance for many years in your own name you won!!!8217;t have any bonus. Go over to the insurance board for advice if you think you need advice before you start getting quotes.
Good point, thank you. I am toying with the idea of asking if I could buy the company car even though it'll be short of the 4 year renewal. We have the option to buy our car at renewal and I've done this twice in the past for family (well they've bought it obviously !!!128512;) but I dunno about the mid lease? It would be 2 years old which is roughly what I was thinking of buying anyway and figured better to get one I know and like?0
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