Savings ???

[hadtochangetothisone]

I just want to ask... about 'savings' .

How do people manage this .. I am far from destitute. Earn 42K. Take home £2445. My home costs me £1100 rent. Council tax £217. Commute £345.. (pm figures ) Electric £210 .. Oil ( heating) £145 . Where am I going wrong that there is NOTHING left for savings ?

How do people manage this

They earn more than you do.

Or warn the same/less than you do, but spend less.

God your rent is so high, why is it so high?

We find it very hard to save and don't even have a mortgage although we do have kids at Uni whose rent we are paying. Things sound tight for you as it is with those commuting costs. I honestly don't know how people manage and it's going to get worse isn't it. I just see people my age going off on foreign holidays all the time and we are off on our first mini break this year to wales. I don't know how people do it. The couple opposite me are just constantly on foreign holidays and have very average jobs and another woman I know has been to Lansarote every school holiday and half term and today off to Dubai ?? Just how are they doing it??

Pretty normal rent for many areas. I consider we live in a cheaper area of the Midlands but rentals for a 3 bed semi are creeping up to £800/ £900 poundsa month.

We can't save. It is really hard. We're getting by but there is no extra. It's shit but we're glad to be getting by.

I think most will struggle to save atm, horrid as that is

I know this isn't what you've asked exactly but sometimes people assume saving is saving big, you could put away £10 a month I know it might not seem a lot but it will slowly build up over a year two years you get my point just put away what you can and it will slowly build even if it's the smallest amount xx

I don't think you are doing anything wrong. Presumably you didn't get much of a say regarding rent and commuting. it's a big part of your budget so if you could move somewhere cheaper/ wfh, that would help. It's not always possible though.

It's exactly as PPs have said, higher income and smaller outgoings. I'm lucky enough to have more coming in and less going out so am able to put away a decent amount each month. My mortgage is only £420 a month, rental prices are extortion.

Op I'm assuming you're over 30 ish?
I rented rooms in houses untill about 32 I think

A few hundred a month

I manage to save a bit because we live in an overcrowded small house and bills are split between 3 adults. Our rent is still £800 though, but not too bad 3 ways.

We earn more but also have
no mortgage
no debts/loans
little outgoings to be honest

could u look at sharing a place to rent?

Electricity sounds really high even with the current price increases - have you done a tual
readinga recently as I’d expect to be in credit

I do one extra shift a month for savings and a second one for holidays.
I used to be able to save 10% of my regular income, for comparison.

Your commute cost is insane. Is it worth looking at moving closer to work?

There’s two of us. My partner earns more then you alone and then we have my wage.
Your CT is about £70 higher then mine.
My mortgage cost over £300 less then yours.
my gas and electric is £145 combined so over £200 cheaper then yours.
commute cost combined is £200 approx so £145 less then yours.
No other debts or loans.

Your bills seem pretty high.

Is it just you, OP? Your council tax seems really high for a one person residence - with the single person discount mine is under half that. Is renting somewhere smaller an option?

Your salary is decent but your outgoings are high considering your wage.

I earn £10k less than you but downsized to pay off the mortgage, monthly bus pass to get to work is £85. So although I earn considerably less I manage to save because my outgoings are minimal.

It's all about money in v money out. There's no secret way of saving. It's a luxury that many can't afford. When my children were growing up I never had any savings at all, it's a recent phenomenon.

Your rent is nearly half your take home pay. And you clearly don't live super close to work if it's costing you £345 a month to commute! So the obvious suggestion is, can you move somewhere cheaper/closer to work?

But what are your other bills, cos there's £450 unaccounted for. Food, presumably, but that shouldn't be £450pm for a single person. You need to work out where ALL your money's going if you really want to save, not just your big bills.

Assuming you have money left over after you take all essential outgoing from your income then its your choice whether to save that or spend it on non essentials.

Your rent is a high proportion of your income, I can't imagine you have more than a few hundred left after essentials and that will easily go on non essentials most people would consider normal (socialising, holidays, new clothes).

I'm a pensioner and live alone. I am considered below the 'poverty line'

However I live in a small, well insulated modern house, no mortgage, no commute and (very much) reduced council tax.

Despite my pensions being very little over basic state pension, I have more than you left after paying my fixed costs (including energy dd).

The world is screwed.

Going by your figures you only have £400 left for food, clothes, any extras plus spending money so that is very tight. Short answer is people earn more and/or have lower outgoings.

It's your rent. I know people would be put off by a flat share but if it meant saving half of £1100 each month then I would do it. I don't like wasting money.

Based on your commute costs for assume you're in a home county and coming into London?

Our entire household is on a fair bit less than you but

mortgage is just over £250
council tax is £100 ish (band a)
gas and lec combined gone from £80 to £160 so that’s a shitter
commute for oh is about £40 diesel a week for me lucky if it’s £20 a month on diesel but he uses real diesel and I don’t normally.

Your bills are mental. You spend more on rent than we spend on everything. The most expensive private rents that aren’t holiday let’s in my area are like £600 for a four bed house.