To Ask Realistically How Much I Need to Save

[Mummadeeze]

Am terrible with money but after reading lots of posts on here I am feeling really determined to try harder to save up and get on the property ladder before it is too late for me. All I really want is a small flat that I can live in when I am retired. I don’t even really mind where it is, I just don’t want to end up homeless! I earn 67k a year at the moment but don’t manage to save a penny. I think I can change this if I try harder though as I have read that others manage to save on a lower income than mine. I am 45 years old. So my question is, how long have I realistically got before I am too old to be able to afford a mortgage? And how much is the minimum I could get away with saving for a deposit between now and then? Hope some money savvy people have some advice. Thank you.

It all depends

Price of property in your area

Your level of debt/credit commitments.

Do a budget first and foremost.

Lenders will typically lend until retirement age.

I’m struggling with the concept of not being able to save on your salary........
My mortgage payments are over a third of my smaller salary and I manage to save

It’s difficult to say - where do you live? Is housing affordable? If not, would you be willing to move somewhere cheaper? When you say you don’t save any of your salary, is that because you have expensive commitments or do you spend a lot every month? Do you have debts?
The best thing to start would be to write a proper spreadsheet of your outgoings - rent/bills/travel/phone/clothing/toiletries/luxuries/entertainment etc - find out where your money goes, comb through bank statements and find where you can cut back. Make a savings goal and live strictly to your budget every month.

Break down your monthly spend between rent / bills / food and less necessary things such as clothes / going out. Then stop spending as much as you can and save as much as you can. Then you can buy sooner or get a nicer place.

Where do you live? Why are your outgoings so high?

Have you looked on the money saving expert website. If you do an SoA of your out goings people will be able to advise realistically.

That's a special talent not being able to save on 67k unless you're a single mum of 3 or something.

Even if you're in London, I'd say 1k on rent + 1k on everything else and save the rest.

OP that's insane

I live in London and earn £50k. I spend £1200 on housing, spend £600 on living and save about £1k a month if that gives you an idea?

It is literally impossible for anyone on here to tell you what you can save! Unless you want to share a list of your outgoings that is??

Sorry £1400 on housing and bills

How much does a small flat cost where you live?

Oh, I'd also add that it might be worth putting loads and loads into your pension. You can draw 25% tax free and that could go a very long way towards a property.

The MSE budgeting spreadsheet is very good.

In your shoes I would absolutely save my arse off for a couple of years, giving up everything except essentials. I think I’d find it easier to go strict for a shorter period of time than drag out smaller savings over many years.

With an annual income of 67k, you must be able to save something. What are you spending £5,000 a month on, anyway? Have a look through your last monthly statement, take a look at what's essential and what's not, direct debits you've been paying for years and forgotten about, things like that. Then find ways you can save money - for example shop in Aldi/Lidl instead of Tesco, research how to cut your energy bills, think about changing providers..

I honestly think that people just learn to live with whatever they have. If your income got halved, you'd survive. If it doubled, you'd still spend it. So, I have a standing order in place on payday (weekly for me) of £50 directly into a savings account. I don't see it, so I don't miss it. I'm not saying you have to do that amount, it can be more or less depending on what you can afford, but getting on the property ladder and out of renting is definitely worth it.

It can help if there's someone you can trust to let them take a look at a bank statement. I did it for a friend, and he was spending £150 a month on TV and £80 a month on his mobile phone, and counting them as essentials that couldn't be cut down!! Rubbish!

I'm sorry, but the racehorses are going to have to go. And it really is unnecessary to bath in the best champagne. A lower brand will get you just as sticky clean.

Think big - how much could you save? Motivation is everything.

Once you've got your eye on the prize, it's amazing what you will give up for it. What inessentials can you prune? You dont need holidays away, haircuts or colour done by other people. You could cycle not drive (though cycling is not cost free) - could you sell your car as the start of your savings? Run rather than go to the gym. Oats, lentils and spices go a long way food wise, and you can get by on smaller portions. Resist the heating, wear more clothes (and go running again to warm up). Get your excess payments back from the utility providers.

Some of these are extremes - but you COULD do them.

Tips for saving money on a £67Kpa salary:-

1. Quit snorting coke
2. Quit gambling
3. Quit paying for sex

And if none of the above apply, then WTF are you spending all your money on?!? Your take home (net) pay is £3,800 PER MONTH.

Unless of course, this is a wind-up.

I honestly thought this was a troll post until I did an advanced search. You must be pretty smart if you have a good enough job to earn £67k, surely you can research what a flat would cost in you're area and work out what to save for a deposit?

If this post is genuine then I'd try to find a good Independent Financial Advisor to help.

*your

I earn a fraction of your income but I think previous posters should lay off a bit as while not everyone shares your income I bet there are plenty of couples that do and save nothing at all or have debts and as a single person you have a disproportionate amount of expenses compared to half a couple.

Anyway I think you would need at least a 5% deposit plus fees and any stamp duty. What would it cost for a property that you would like?

I'm not sure the earnings limit for shared ownership but you could look into it.

Yes posting the "statement of affairs" on money saving expert debt free wannabe forum and people will help you to cut your expenses.

You can find a link for this in the information of the mse forum or post and ask for help and someone will provide the link.

The good news is if you can cut your expenses you can save that deposit in no time!

It is not a wind up, sorry if it annoying anyone. My take home is £3500 a month as from this month (I have just had a payrise recently as I have moved jobs. I used to earn less). Basic is £60k per month. The extra £7 (before tax) will be an annual bonus which I haven’t had before and hope will help me save. Haven’t had that yet though obviously. I basically spend £1400 a month on a one bed flat renting in South London. My DD has the bedroom, I sleep in the sitting room. Bills come to £350 per month approx incl gas, electric, council tax, TV costs, mobile phone x 2, iPad, contact lenses etc. Childcare costs me around £250 a month. Travel is around £120 per month. Which I guess will leave me around £1370 a month which I know I will fritter away unless I try harder not to. At the moment it goes on food, clothes, days out with my DD, nights out including babysitting costs with friends and v bad food shopping. I know it sounds extravagant and I am ashamed admitting it, but as I said, with my new job I want to try harder to save as it will be easier than it was when I earned less. I am not asking how to save, I was asking how many years I have to save a deposit before it was too late (someone said until retirement but if I don’t have an income then I don’t see how I could borrow anything beyond that point). And I was asking how much I should aim for to get a small flat somewhere in a city (don’t mind renting it out until I retire). Genuinely not trying to piss people off who manage on less, I know I am lucky but I can see myself living for the moment, having a great time whilst working and then being completely destitute when I have to retire because I have nowhere to live.

And thanks for all the advice so far from people trying to be helpful

P.s. also sorry if the payrise was a drip feed. I will make a daily budgeting plan. That is a good idea. And set a goal to work towards. I just wanted to make sure I am not to late to embark on this plan at 45 as I was fearful I had left it to late to change things for my future.

Put £1k into savings at the beginning of the month . Don’t spend all your money !? You must have a great lifestyle . Did you honestly never consider buying a property before now ?

I would look at somewhere like Bristol- lovely place and property cheaper than London. As you’d initially be renting it you’d need a buy to let mortgage which usually require higher deposit- 20% at least. That will mean saving £50k plus which will take probably at least three years if you save all your bonuses and cut out as much waste as possible to allow you to save £1k per month.