To ask about your disposable income pre-kids?

[SarahAndTheCentaur]

I don't have kids yet and am just starting a new, pretty well-paid job. I also don't have a dp right now so theoretically should have more disposable income than if I had a family etc.

I'm moving to London and worked out that once rent, council tax, bills, travel card, v cheap gym membership are taken care of... I will really not have a lot left!

I was a student in London prior to this and am going into a well-paid grad role in the finance sector, the salary seemed very generous to me when I first saw it.

I definitely realise I'm lucky to have a job etc. so please don't flame me! Just a bit shocked as I'm not bad with money and am pretty it's going to go so quickly!

Any money-saving tips, Londoners?!?

Just read that back and want to apologise if it sounds really insensitive

Are you renting a place by yourself? If so then that's going to be very expensive - most single people in London (at least those under 30) house share or flat share.

Otherwise - well you don't really need a gym membership... buy some DVDs, go running, swimming at your local pool is cheap. And packed lunches rather than Pret will save you a fair bit. But those savings are relatively insignificant compared with the housing costs.

No, I'm in a house-share in NE London. It's a really nice room but 650 per month so not terrible price-wise - don't think it would be possible to get hugely cheaper.

Good idea about lunch!

Housing will be your biggest cost. More so if you're planning on living alone. Make sure to save a portion of your salary each month - as a single person with a good job and no children yet this is doable.

Otherwise it's all pretty much the same; a gym membership isn't an essential but you would be able to find one for a reasonable monthly cost. Make your own lunches and avoid stopping by Costa to buy a coffee every morning - small as it sounds it's the little outgoings that actually add up in the end.

Some people cycle into work (saves travel money and gym membership!) however it depends exactly where you will be living and working - is there a safe route available - and also if you have bike parking available both ends.

Outside of London, the grad job salary probably sounds amazing - however, in London, the average grad starting salary doesn't go very far. I started on 38k as a trainee lawyer. I house shared, didn't spend much as I worked most hours anyway and was very good with my money, and yet I didn't save a penny for those two years. Soon as I qualified and shot up to 67k it suddenly became a much more lucrative place to be.

650 pm for a house share is average, but remember that travel is a massive expense in London which will be eating a couple of hundred a month.

Oh yes, definitely try not to get into regular habits of take away coffee, nails done, cocktails etc. Look out for free or cheap things to do with friends - have house parties, ask people round for a meal rather than going out to a restaurant, meet up in an art gallery/park/museum rather than a pub. Of course occasional blow outs are ok but it's easy to get into the habit of doing that all the time and that gets really expensive.

I really think it depends on what you considered to be a well paid job - in London it definitely doesn't go as far, so what might do you well elsewhere doesn't leave you quite so flush in the capital.

In any case, it's a good idea to get into frugal habits - not because you HAVE to but because you'll find that your money goes that much further if you do!

I'd also suggest that when you write your budget, you take what you can afford to 'fritter', put a third of it away in savings and then transfer the rest into an account earmarked for spending. That way you won't inadvertently dip into bills money.

Great ideas! I wish I lived nearer to my friends. I've always enjoyed having house parties and hosting people at mine, the only issue is that many of them live south of the river or just in completely different places to me - which is why going out for an average meal or drink is often the simplest option but annoyingly the most expensive too!

My daughter is living in London with is,liar housing expenses to you, it's her first job and she has very little money left over though they are managing a weeks holiday. Hopefully you'll be able to save in years to do,e when your salary increases.

What is considered a reasonable living wage in London?

My salary is 30k and will hopefully rise quite a lot after 3 years (well this depends on many exams being passed so we will see) - this seems a lot to me but with travel/rent/bills/CT (the essentials really) adding up to 1k each month, I can't see it stretching that far.

I have friends on more and friends on less so I do appreciate I'm lucky!

Sarah it's pretty normal IME to travel a long way to meet friends in London - I had friends in S London when living in N London and vice versa. You just have to take turns in being the one who hosts/the one who travels, then it's fair. You could offer to put them up overnight (futon in your room?) if that makes it easier/more attractive.

And you could always plan to live with or live nearer to your friends (some of them at least) next time round...