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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

How would you budget £30k grad scheme salary (no kids,rent)

72 replies

levanti · 31/03/2019 19:41

In September I started my first year of a 2-year grad scheme. Luckily my first two rotations are in a commutable distance from my family home. My parents don't believe in charging rent but I contribute by paying for weekly shops, meals out, treating mum etc.

Despite hardly having any bills I don't really have any savings, my philosophy, for now, is that after having to scrimp and scrape for the past 3-4 years I just want to enjoy myself a bit.

AIBU to ask how you would manage your finances/do things differently if you were at the start of your career again. I can't help but feel a bit wasteful and guilty. At the end of the month I don't really have anything to show for myself.

OP posts:

ZippyBungleandGeorge · 31/03/2019 19:43

What's your take home and what are your bills (car insurance, phone etc)

strathmore · 31/03/2019 19:43

So about £2500 a month

£1000 to savings on payday
£1000 to spend
£500 to parents.

InspectorClouseauMNdivision · 31/03/2019 19:44

That's a LOTS of enjoying yourself. 😮

What would your rent be if you didn't live in your parent's house? I would save 2/3 or all of that and enjoyed the rest?

SunnySomer · 31/03/2019 19:46

So are you getting about £2000 a month?
If you have absolutely no requisite outgoings, I would put 50% into an ISA and carry on living frugally. That would be a big chunk of cash after two years, goid foundation for a house deposit or fall back in case of unemployment (I know it feels like this could never happen,but believe me, it could).

InspectorClouseauMNdivision · 31/03/2019 19:46

@strathmore you forgot taxes, pension and NIC

OpportunityKnocks · 31/03/2019 19:48

Have you started paying back your student loan yet? If not, remember to account for that.

Start paying into your pension, maximise it so that you get the most contribution from your employer.

Save 1/3 of the rest and 2/3rds for fun :)

amymel2016 · 31/03/2019 19:49

Assuming you’re not yet paying into a pension that will be a take home pay of £1900ish a month. Firstly, I would start a pension and sacrifice as much as possible. Then £500 to parents, £500 in savings and £900 to spend (including fuel, food, phone etc).

ElloBrian · 31/03/2019 19:49

You need to take the savings out of your salary at the start of the month, not wait and see what you’ve got left at the end. Also always pay in full into your workplace pension.

mysteryfairy · 31/03/2019 19:55

£333 a month into a LISA to get the maximum top up towards your first home.
Assuming you to be around 22 then at least 11% of earnings into pension.
If available at your new employer put as much as possible into share save schemes.
You'll still be left with a ton of disposable income.

Original poster

levanti · 31/03/2019 19:57

Oh yes, student loan repayments come to £65 a month (I think)

I also pay towards a dental and medical plan through work

Phone- £10 (sim only, dad gave me his upgrade)

OP posts:

mysteryfairy · 31/03/2019 19:57

Assume your take home salary will go down slightly from this month too as last year you possibly only had taxable income from September to March and this year you'll be taxed for 12 months.

Original poster

levanti · 31/03/2019 20:04

Great advice, thanks a lot.

I was considering a Sharesave Scheme my company offers. Need to have some savings first!

At university (in London) I got by on £5 a day but have gone from one extreme to another. Hopefully, the novelty will wear off soon.

I almost wouldn't mind being so wasteful if I had a heap of stuff but I just don't.

OP posts:

ElloBrian · 31/03/2019 20:09

Sharesave usually comes out of your salary ?

ElloBrian · 31/03/2019 20:10

There are loads of budgeting apps these days. Just get one.

happyasasandboy · 31/03/2019 20:11

How long are the rotations? Regardless of their length, I'd want to save up for the rent you may have to pay if the next rotations are not commutable from your rent-free parents house. I'd work on the assumption that the rotations could be miles away.

As others have said, the more you can get into a workplace pension now (especially if it is a Defined Benefit scheme - ask the pay office and they'll have a scheme booklet to tell you).

If you save well now, then you'll be able to maintain the pension contributions when you have to pay rent to facilitate distant rotations.

Having said all that, keep back enough to enjoy life a little too. You are at a stage of life where you've worked hard to achieve a good salary and have no responsibilities, so enjoy yourself too

BlackeyedGruesome · 31/03/2019 20:20

Save a lot, spend on bigger things like holidays to interesting places or experiences that you will not be able to do when you have children. Cut out the trivial spends like lots of takeaways, eating out coffees, buying lunch everyday new clothes every season. etc. You will need savings if you want to buy property.

If you cut out the little things that use lots of money and save us a few bigger things you will feel like you have achieved something at the end of the year.

Mummyshark2019 · 31/03/2019 20:23

When I started my grad scheme job I was also living at home. Parents didn't charge rent etc. I always put half of my salary in savings.

nauseous5000 · 31/03/2019 20:27

I'd say always save 10% if you can manage it. You don't know when you'll be glad of it. Also boring as it is, the more money you put into your pension now, the more comfortable you'll be in old age

Original poster

levanti · 31/03/2019 20:28

Would you consider weekend breaks (once a month-ish) a waste of money?

OP posts:

scattercushion17 · 31/03/2019 20:33

Echo what others have said. You are in a fantastic situation so please take advantage of it! You can still go out and enjoy life while saving.

Agree with PPs on pension and LISA.

Also could save on food by batch cooking/prepping then having an odd lunch as a treat. Reusable travel mug and take a drink from home.

Sunshine1235 · 31/03/2019 20:33

No enjoy your weekend breaks!

I would save a decent amount, try and invest in good quality things rather than frittering it away. If there are things you can do with it to learn skills you’ve always wanted like driving, or taking up a hobby or evening class or spend on travel if you’re into that. Just don’t waste it in primark and on coffee 😂

nocoolnamesleft · 31/03/2019 20:36

I would strongly suggest saving each month the amount you would be paying in rent if you weren't living with your parents. This will give you moving expenses and deposit for when you need to move into a rental, plus hopefully a bit of an emergency contingency fund. Once you're actually paying rent it will be much harder to save, but if you had got into the habit of saving the rent amount, then your lifestyle won't have to plummet.

OpportunityKnocks · 31/03/2019 21:33

I wouldn't say monthly weekend breaks are a waste of money. They can be done on the cheap and you'll enjoy the experience.

Purpletigers · 31/03/2019 21:43

In your situation I’d be saving as much as I could . Maybe one holiday and one city break a year . You’d be mad to go away once a month .

Purpletigers · 31/03/2019 21:44

You should be able to save £1000 / month while living at home . That’s 24000 grand by the time you’ve finished your second year . Don’t waste it , you’ll regret it .

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