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  • FIRST POST
    • Frugaldom
    • By Frugaldom 17th Dec 07, 10:01 PM
    • 6,137Posts
    • 54,184Thanks
    Frugaldom
    Live on 4000 for a full year: Jan-March 2008
    • #1
    • 17th Dec 07, 10:01 PM
    Live on 4000 for a full year: Jan-March 2008 17th Dec 07 at 10:01 PM
    Can you live on £4000 a year?
    Part 1 - 1st quarter of 2008

    Part 2 - 2nd quarter of 2008 HERE

    Throughout 2007 there were several of us accepted this challenge elsewhere for various reasons. With only a week or two to go, I can say that it IS possible and I WILL succeed. I'm setting myself the exact same challenge for 2008 and have heard from a few people on here that would like to know how it's done.

    CHALLENGE RUNS 01 JANUARY - 31ST DECEMBER 2008 - GOOD LUCK TO ALL!

    Please remember that 2008 is a leap year. £4000 over 366 days = £76.50 per week

    Edited in - For those participating in the challenge, £4000 is for EVERYTHING except rent/mortgage, council tax/water rates. Hopefully, this should avoid confusion. Budget wisely and, if all else fails, learn to play 'catch-up' rather than "rob Peter to pay Paul".

    The target figure is for essentials and all regular household bills. It does NOT include rent, mortgage payments, council tax or water rates. However, since announcing the challenge, numerous variations appear throughout this thread to reflect individual circumstances. For some, their target does not include repaying debts, essential work related expenses or 'luxury' items such as holidays - that's what everything over the target figure is for. That and, of course, savings.

    Set your targets, I can list them here, then from 01/01/08 you deduct your essential spending throughout the year, not forgetting that the amount includes gifts for friends and family for birthdays, Christmas etc.

    The Live on £4,000 a year Challenge starts here - have you got what it takes to succeed? The figure was calculated against minimum wage earnings, feel free to join using your own target figure. If you have a family, then you should be in receipt of Family Allowance/Child Benefit, so your target would be £4000 + Child Benefit.

    CHALLENGER LIST

    001. Nykmedia - £4000
    002. Whitetigeress333 - £3920
    003. Notanothergreyhair - £4000
    004. Mini_huny_money - £4000
    005. Penny2myname - £4000
    006. Hypno06 - £4000
    007. Impomdasp - £5000
    008. Whitewing - £5300
    009. LoadedIWish - £4000
    010. Tigerseye - £4000
    011. Oliveoyl - £4000
    012. Funbrum - £4000
    013. Tryingtodobetter - £5000
    014. 87p - £4000
    015. Cranky40 - £5000
    016. Bluesteel705 - £4000
    017. Chewits - £4000
    018. Prudent - £5500
    019. Shell37 - £4000
    020. Juliejay - £5000
    021. Azjh77 - £4650
    022. Nicola1982 - £4000
    023. Rachyp - £4000
    024. Kiki - £5300
    025. McSaver - £3000
    026. Pollydaydream - £4000
    027. Maverickangel - £4000
    028. Loadedlaura - £4000
    029. Kayharcombe - £4000
    030. Buffythedebtslayer - £4560
    031. Flowerofthewest - £4000
    032. Mollymop5 - £4000 + Child Benefit
    033. DdraigGoch - £4000
    034. Shazrobo - £5000
    035. 1274 - £4000
    036. Always_amazed - £4000
    037. Protogenia - £4500
    038. Georgiasmum - £5200
    039. Chaddee - £4000
    040. Chriz1000 - £4000
    041. Bigbullyweedave - £6000
    042. Affordmylife - £5000
    043. Liuhut - £6000
    044. Cumbrianmum - £4000
    045. Che75 - £4000
    046. Sweetpea03 - £4900
    047. Scorpio04 - £4000
    048. Broke mum of three - £5200
    049. Artnoble - £4000
    050. Barole - £4000
    051. Ephemera - £4000
    052. Liloandstitch - £4000
    053. LyndaSharp - £3500
    054. Sassamac - £4000 + Child Benefit
    055. Sue09 - £6000
    056. Don't want to be in debt - £6760
    057. Princess Leia - £6200
    058. Saverram - £4000
    059. Sashacat - £4000
    060. Whiskylizzie - £4000
    061. Slackster - £4000
    062. Jamiedodger - £4000
    063. Whitevanwoman - £4000
    064. Skintwellie - £5000
    065. Fairywings - £5000
    066. Sos999 - £4000
    067. Mumzyof2 - £5000
    068. Keren29 - £4000
    069. OldMcDonald - £4000 + Child Benefit
    070. Mah_Jong - £3500
    071. Hardup Hester - £4000
    072. Miss_Pink - £4000
    073. Grunnie - £4000
    074. Rafiki - £4000
    075. Catzine - £5000
    076. Andromache - £2750 (student)
    077. Doom_and_Gloom - £3000
    078. Tracey04 - £4000
    079. Wherediditallgo - £4000
    080. Sallyrsm - £4000
    081. Wornoutmumoftwo - £4000 + Child Benefit
    082. Lexxi - £4000
    083. NEGirl - £5000
    084. Wendyw1947 - £4000
    085. Truthseeker - £1500 (a teenage budget - I am most impressed!)
    086. FrankieM - £4000 + Child Benefit
    087. JustKeepSwimming - £4000 + Child Benefit
    088. RedMel1621 - £5200
    089. Blackfairykitten - £5000
    090. Funkyfunkymonkey - £4000
    091. Carlsberg - £4000
    092. Nate123 - £4000
    093. DJenks - £4000 + Child Benefit
    094. Miss Empty Piggy - £4000
    095. Micron - £4000
    096. Hopeless_Spendthrift - £4000
    097. The_Cat - £5800 inc Child Benefit
    098. LilyBee - £3000 from 01/04/08
    099. Carolinabirichina - £5000
    100. Bails - £4000
    101. Debrag - £3000
    102. LittleMissClimsy - £5000
    103. Gem2509 - £4000
    104. LMac - £4000
    105. LollopyBear - £4000
    106. Slowlyfading - £4000
    107. IHateDebt - £4000
    108. Frugal Fox - £4000
    109. Looby-Loo - £4000 + Child Benefit
    110. LingoJingo - £5000 inc Child Benefit
    111. Fizzel81 - £4000 + Child Benefit
    112. Summertea - £4000
    113. Jammiejen - £4000
    114. Jay1 - £4000
    115. Yoshimi2306 - £5720
    116. Janey51 - £4000
    117. Freyaluck - £4000
    118. DJJoJoJuice - £4000 (£3836.07 from start date 15/01/08)
    119. Frugalmum - £4000 (£3836.07 from start date 15/01/08)
    120. Lysasparkles - £3,500 (from 16/01/08)
    121. Shelovestobuystuff - £3,700
    122. Angelofthenorth - £4000 (from 17/01/08)
    123. Mama67 - £3661 (from 01/02/08)
    124. BigEars - £3661 (from 01/02/08)
    125. Paul Varjak - £3661 plus disabled vehicle expenses (from 01/02/08)
    126. Stefejb - £3661 (from 01/02/08)
    127. Laurabelle - £4000 (from 20/01/08)
    128. MSHAWX - £3661 (from 01/02/08)
    129. Hansolo81 - £3661 (from 01/02/08)
    130. Jumble-Bee - £2008 (from 01/02/08)
    131. Nimbo - £3661 (from 01/02/08)
    132. GemGems - £3661 (from 01/02/08)
    133. DFW844 - £4000
    134. Elantan - £80/week (from 08/02/08)
    135. Marru - £3345 + nursery fees (starting 1/3/08)
    136. Alli_Baba2 - £3388 (from 25/02/08)
    137. SophiesMum - £3388 + child Benefit (from 25/02/08)
    138. Charlies Angel - Living on under £1000 a year
    139. Tigwell - £3333 (from 25/02/08)
    140. Headofsteam - £2983.50 (from 01/04/08)
    141. Bleufleur - £3158 (from 17/03/08)
    142. All_hours - £80 per week

    Please note that this is part of a cyberdosh (online money) challenge

    Last edited by Frugaldom; 31-03-2008 at 4:39 PM. Reason: Adding in names & modifying post
    I reserve the right NOT to spend:
    The less I spend, the more I can afford!
    Now running Frugaldom as a lifestyle social enterprise!
Page 1
    • ringo_24601
    • By ringo_24601 17th Dec 07, 10:09 PM
    • 17,148 Posts
    • 27,896 Thanks
    ringo_24601
    • #2
    • 17th Dec 07, 10:09 PM
    • #2
    • 17th Dec 07, 10:09 PM
    £4k.. with or without any form of benefits? Even when I was a student my rent was £2184 a year.

    Frankly, i don't think it's possible without state assistance, and if funded with benefits, then this is quite an irresponsible challenge.
    • Frugaldom
    • By Frugaldom 17th Dec 07, 10:21 PM
    • 6,137 Posts
    • 54,184 Thanks
    Frugaldom
    • #3
    • 17th Dec 07, 10:21 PM
    • #3
    • 17th Dec 07, 10:21 PM
    UPDATED: updates in blue

    £4000 excludes rent or mortgage and council tax/water rates and, frankly, it is possible - and no, I am not on benefits

    I didn't say that's what anyone is earning, only that after rent or mortgage & council tax/water rates £4,000 is what you attempt to live on - everything else is used to pay off debts or gets saved. (I think there is some confusion over what constitutes 'the cost of living' - if anyone is unemployed or disabled and relying on Social Security benefits, they will not be paying full rent or Council Tax.) This challenge is for a purpose - you either need to pay off debts in order for you to afford to live, or you want to save cash for something.

    I'm may be mis-understanding you, but what is irresponsible about living on a budget of 4k?

    ======================

    Edited in for further clarification:

    I'm still being asked the question, why £4000? So I'm going to try to explain, again, how I can arrive at that figure. I compared several very different lifestyles, such as the following:

    Lifestyle 1
    Couple with 2 of a family, husband works full time on a salary of £30,000 and wife is a full time mother/homemaker (not sure what the politically correct term for this category is any more!) Total income approx £452 per week including Child Benefit.

    Mortgage & Buildings insurance - £740 per month = £170 per week
    Council Tax/Water - £125 per month = £24 per week
    2 cars, both on HP - £300 per month = £70 week
    2 x road tax, insurance, servicing, petrol/diesel etc = £270 per month = £62 week
    Credit cards - £100 per month = £23 week
    Bank loan - £100 per month = £23 week
    Total expenditure before actual living expenses - £372 per week
    Balance to live off - £80 for everything else

    Lifestyle 2
    Couple with 2 of a family, husband works full time, wife part time, joint salary of £18,000 plus Child Benefit, total income approx £300 per week

    Mortgage & Buildings insurance - £303 per month = £70 week
    Council Tax/Water - £100 per month = £23 week
    Home Improvement loan - £266 per month = £61 week
    Credit Cards - £100 per month = £23 week
    Other debts - £100 per month = £23 week
    Car - road tax, insurance, servicing, fuel etc - £100 per month = £23 week
    Total expenditure before actual living expenses - £223
    Balance to live off - £77.00 for everything else

    (There is a slight difference in today's figures in that both of the above would now qualify for Child Tax Credits. Family one would be entitled to about £130 per year, family 2 would be entitled to about £878)

    It didn't really seem to matter what the annual income was, there always seemed to be a significant difference in the way that income was spent. As an example, a single professional person earning £52,000 a year may well only have £4000 to actually live off after paying the upkeep of a rather spectacular house complete with tennis court, swimming pool, fast car, regular entertaining, foreign holidays and paying for the resident gardener and housekeeper. No matter what your income bracket, we could all be in the exact same boat. Fortunately, we have the freedom to choose how we stay afloat. No matter what you do or how you do it, you are always going to have to pay the cost of living. If you can reduce the cost of living and clear off ALL debts, then think of the fun you can have from thereon in.

    I'd love to reduce my overall cost of living to £10 per day over the coming year (£3660) and my main motivation for this is to save every penny I can towards living debt free in a mortgage free house.

    Budget to within an inch of your life and see just how much it costs you to live. You can see by the above how I arrived at the £4000 and hopefully this will make things a little clearer for our newest members rather than having to scroll through about 50+ pages of posts

    Thank you to every single one of you for helping make my year 2 a very, very exciting prospect and I really do hope you will stick around to see this challenge through to a successful conclusion for 2009.
    Last edited by Frugaldom; 09-01-2008 at 9:41 PM. Reason: Further clarification was needed
    I reserve the right NOT to spend:
    The less I spend, the more I can afford!
    Now running Frugaldom as a lifestyle social enterprise!
    • ringo_24601
    • By ringo_24601 17th Dec 07, 10:24 PM
    • 17,148 Posts
    • 27,896 Thanks
    ringo_24601
    • #4
    • 17th Dec 07, 10:24 PM
    • #4
    • 17th Dec 07, 10:24 PM
    Perhaps a link to the original thread may have been of use then
  • hopeless case
    • #5
    • 17th Dec 07, 10:25 PM
    • #5
    • 17th Dec 07, 10:25 PM
    Well yes maybe. 76 per week is this for a family of 2/3/4 or just a single person?
  • mumzyof2
    • #6
    • 17th Dec 07, 10:26 PM
    • #6
    • 17th Dec 07, 10:26 PM
    sooooo what does this include? sorry i ask so many uestions just i need things in simple terms to understand it..sorry xx
    if iam correct i can make 4k from ebay amazon extra work etc? but what des it include
    Sealed Pot dec 08 - dec 09 so far 27.67, Live off 4k Spent 330.20 GC 1,200 for 2009 Spent 50.78 PaD so far 650.07
    Debts: L/woods 154.00 C/One PAID O/D 649.90 Next 299.95 O/D PAID Gas 72.60 Electric 155.73 Mum 640.00 Orange 490.32
    • Frugaldom
    • By Frugaldom 17th Dec 07, 10:27 PM
    • 6,137 Posts
    • 54,184 Thanks
    Frugaldom
    • #7
    • 17th Dec 07, 10:27 PM
    How many people?
    • #7
    • 17th Dec 07, 10:27 PM
    Well yes maybe. 76 per week is this for a family of 2/3/4 or just a single person?
    Originally posted by hopeless case
    Mine was for a family of 3
    I reserve the right NOT to spend:
    The less I spend, the more I can afford!
    Now running Frugaldom as a lifestyle social enterprise!
    • Mollymop5
    • By Mollymop5 17th Dec 07, 10:28 PM
    • 2,089 Posts
    • 6,791 Thanks
    Mollymop5
    • #8
    • 17th Dec 07, 10:28 PM
    • #8
    • 17th Dec 07, 10:28 PM
    If you'd seen the original threads elsewhere then you would know that 4k excludes rent or mortgage and council tax/water rates and, frankly, it is possible - and no, I am not on benefits

    I didn't say that's what anyone is earning, only that after rent or mortgage & council tax/water rates 4,000 is what you attempt to live on - everything else gets saved.

    I'm maybe mis-understanding you, but what is irresponsible about living on a budget of 4k?
    Originally posted by nykmedia
    I haven't een the original threads.what does the 4000 per year cover? what would I pay out of this ? I do find this interesting
    lost my way but now I'm back ! roll on 2013
    spc member 72

  • mumzyof2
    • #9
    • 17th Dec 07, 10:29 PM
    • #9
    • 17th Dec 07, 10:29 PM
    i fidn it intresting too
    Sealed Pot dec 08 - dec 09 so far 27.67, Live off 4k Spent 330.20 GC 1,200 for 2009 Spent 50.78 PaD so far 650.07
    Debts: L/woods 154.00 C/One PAID O/D 649.90 Next 299.95 O/D PAID Gas 72.60 Electric 155.73 Mum 640.00 Orange 490.32
  • mumzyof2
    4k.. with or without any form of benefits? Even when I was a student my rent was 2184 a year.

    Frankly, i don't think it's possible without state assistance, and if funded with benefits, then this is quite an irresponsible challenge.
    Originally posted by ringo_24601
    Ringo im on benifits at the mo..so at end of year il let you know if i do it..i bet i do! I KNOW i will. I will cut back on things like im doing now
    Sealed Pot dec 08 - dec 09 so far 27.67, Live off 4k Spent 330.20 GC 1,200 for 2009 Spent 50.78 PaD so far 650.07
    Debts: L/woods 154.00 C/One PAID O/D 649.90 Next 299.95 O/D PAID Gas 72.60 Electric 155.73 Mum 640.00 Orange 490.32
    • Frugaldom
    • By Frugaldom 17th Dec 07, 10:31 PM
    • 6,137 Posts
    • 54,184 Thanks
    Frugaldom
    First of all, this is not about earning extra money, it is about an economic lifestyle that allows you to either clear debts or increase savings. I did the challenge in 2007 so I could clear my debts and start saving to buy a house. Initially, I'd just like to know if there's anyone here who lives on a really tight budget and fancies making it 4k so there's a bit of moral support. It is a very difficult challenge, in my opinion.
    I reserve the right NOT to spend:
    The less I spend, the more I can afford!
    Now running Frugaldom as a lifestyle social enterprise!
  • hopeless case
    so do you only have 4000 to live on or do you want to save for something?
  • mumzyof2
    could you pm me and tell me that way in easy language lol sorry xx hope you dont mind
    Sealed Pot dec 08 - dec 09 so far 27.67, Live off 4k Spent 330.20 GC 1,200 for 2009 Spent 50.78 PaD so far 650.07
    Debts: L/woods 154.00 C/One PAID O/D 649.90 Next 299.95 O/D PAID Gas 72.60 Electric 155.73 Mum 640.00 Orange 490.32
    • ringo_24601
    • By ringo_24601 17th Dec 07, 10:58 PM
    • 17,148 Posts
    • 27,896 Thanks
    ringo_24601
    Sounds like forced economic hardship.. surely you should budget what you spend in a year based around your situation and income? Setting a value X to spend is odd.. wouldn't it be better to say 'live on 80% of what you live on at the moment'

    Case example: It'll cost me £2k to get to work on the train next year. I can't cut this down (and i'm not cycling 26 miles a day through heavy london traffic)
    • PasturesNew
    • By PasturesNew 17th Dec 07, 11:01 PM
    • 66,246 Posts
    • 389,299 Thanks
    PasturesNew
    That is what I live on anyway. And most of 2004-2007 I had less.
    • Frugaldom
    • By Frugaldom 17th Dec 07, 11:03 PM
    • 6,137 Posts
    • 54,184 Thanks
    Frugaldom
    LIVING ON 4K A YEAR

    Regardless of what you have coming in each week or month or over the full year, this challenge is to live on 4,000, which EXCLUDES rent/mortgage and CouncilTax/Water Rates.

    In order to embark on such a strict, "shoestring budget" lifestyle, you'll need to have a target and a budget, so here is an example using easy to convert figures:

    Annual Income = 10,000 which, I think, is about 190 per week, or 825 per month

    Deduct rent or mortgage
    Deduct council tax/water rates

    Whatever is left is what you have to pay bills, pay debts and live

    In this example, if the rent/mortgage and council tax/water rates added up to 6000 then you would only have 4,000 left to live on and yes, you would probably be eligible for benefits of some description, but I don't know anything about them. I guess if you were able to live on the 4k then any extra benefits you might receive would be money in the bank if you were debt free or else the extra would be paying off debts.

    If you are earning 40,000 a year and paying out 15,000 in rent/mortgage/council tax etc then you have 25,000 left to live on. If you managed to live on 4k then that would be 21k to pay debts or save. Whichever way you want to look at it, this is about a lifestyle geared towards paying off debts and/or building savings.

    If you are spending 2k a year on travel then that would be essential in order to maintain your current income, and would be deducted from the overall figure, not the 4k.
    I reserve the right NOT to spend:
    The less I spend, the more I can afford!
    Now running Frugaldom as a lifestyle social enterprise!
  • mumzyof2
    ringo its just a set figure..if you get to end of year and you have only lived on 3k then you have still won...anyway..cant be bothered (wrist is hurting now)
    Sealed Pot dec 08 - dec 09 so far 27.67, Live off 4k Spent 330.20 GC 1,200 for 2009 Spent 50.78 PaD so far 650.07
    Debts: L/woods 154.00 C/One PAID O/D 649.90 Next 299.95 O/D PAID Gas 72.60 Electric 155.73 Mum 640.00 Orange 490.32
    • PasturesNew
    • By PasturesNew 17th Dec 07, 11:03 PM
    • 66,246 Posts
    • 389,299 Thanks
    PasturesNew
    The link to last year's one was hidden in the OP's signature.

    Here it is (I think):

    Nope... it was back to here. So I've removed the link.
    • marc.faulkner
    • By marc.faulkner 17th Dec 07, 11:04 PM
    • 635 Posts
    • 735 Thanks
    marc.faulkner
    Here's an example (using my current circumstances)...

    I earn 12.5k PA (approx)

    I pay out 3.9k PA for my rent (which, in may case include water rates)

    I am left with a total of 8.6k.

    If I was to take part in this challenge, I'd be aiming to reduce my various living expenses so that I was able to live on 4k, leaving 4.6k either to save or pay off debts...

    I won't be participating in this challenge, as to be honest I don't believe I have the resolve to see it through to the end, although I do wish the best of luck to all who do take part - It's a helluva goal to set yourselves, but I have faith.
  • southernscouser
    surely you should budget what you spend
    Originally posted by ringo_24601
    If thats all you had said then I think you may have got it. I could be mistaken but I think the idea is to set yourself a budget of 4,000 for the year and live within that. :confused:
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