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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Is £1k a month enough to live on?

283 replies

EL8888 · 14/02/2020 16:10

I was debating with my mother whether it was possible for a person to live on £1,000 per month. Bearing in mind there is no rent / mortgage to pay (house is paid for), no debts and they own a newish car plus they have a Freedom card to use. They live alone with no dependents or pets. I said it was enough and she said it really wasn’t

OP posts:
BarbaraofSeville · 16/02/2020 06:19

If no public transport then lots of extra costs which soon mount up

The person in question has a freedom pass which means they are a pensioner living in London so they have the London transport network at their disposal for free.

This infers that the nearly new car they have is an unnecessary luxury and financial burden, because insurance and parking is likely to be costly.

Plus they have a paid for house in London so likely to be a very valuable asset so if they are really that hard done by there is always the option of downsizing, moving to a cheaper area or releasing equity by way of a lifetime mortgage, so financially this person is in a much better position than many people.

Alsohuman · 16/02/2020 08:48

The person in question has a freedom pass which means they are a pensioner living in London

No, it means they’re a person over 60 living in London. The car may well be a necessity if - God forbid - they’d want to travel outside London. Equity release is financial suicide and why would or should you move away from the area that’s your home, away from all your friends?

I’m with OP’s mum. If you want more than a very basic lifestyle, it’s going to be very tight on £1k a month. I wouldn’t want to try it.

BarbaraofSeville · 16/02/2020 08:55

The OP says this person only really drives locally and doesn't like going further afield. Hiring cars or being a member of a car club would be far more cost effective for this person.

If they are single with no dependents, wouldn't it be better for their assets to enhance their lifestyle now, if that's their preference. Lifetime mortgages are by no means financial suicide that they used to be.

My point is that this person has options not available to the majority, many of lesser means would consider themselves to be very fortunate to be in such a position.

ArriettyJones · 16/02/2020 08:58

Probably fine until the roof needs replacing, or the car gets written off.

Whiskeylover45 · 16/02/2020 08:59

Er yes lol, it only wouldnt be if you had an extravagant lifestyle

AJPTaylor · 16/02/2020 09:04

My council tax is 235 pm, gas/electric avg at 120, another 100 for house and car insurance,20 for road fund licence. I'm sure it all goes pretty quickly.

BarbaraofSeville · 16/02/2020 09:39

Of course it goes pretty quickly if you choose the most expensive option at every turn.

A single person living in my house would pay about £65 pm council tax, £70 gas and electricity, £15-20 house insurance, water £15-20 pm.

You can run a car for much less than what you've said, some cars have road fund licence that's free or under £5 pm, insurance maybe £20 pm, you'd pick one of those cars if you wanted to make your money go further, surely?

Or do people consider themselves 'poor' if they have to think at all about what they spend their money on?

Singlenotsingle · 16/02/2020 09:44

No way. We bring in £3k pm and I still have to check the account at the end of the month.

AriadnesFilament · 16/02/2020 09:47

In my area, with no rent/mortgage, no debts, no dependents, no pets? Absolutely. And comfortably actually.

PettyContractor · 16/02/2020 09:50

you’ll need to spend at least a bit of money on clothes during the year

Over the last 5 years, when I've only worked from home, I've averaged £4 per month on clothing. Admittedly this doesn't include anything bought as part of a supermarket shop, but that's not going to have cost much.

Getoffmylilo · 16/02/2020 09:53

Yes in theory but normal life still happens and things go wrong, repairs need doing, cars break down, stuff breaks.

bluenoir · 16/02/2020 09:56

You wouldn't have a luxurious lifestyle and you'd have to budget and save but it's doable.

Alsohuman · 16/02/2020 10:05

No dependents isn’t the same thing as no descendants. Equity release doesn’t work if you want your kids to inherit.

Insideimsprinting · 16/02/2020 10:24

Depends what spending they want to be able to do.

That's the point though isn't it, under circumstances op describes it will allow spending for what you need. Spending for your wants is nice but if you don't have the money then as long as your needs are covered what's the problem?

To many people get used to the wants in life so when they need to curb them and stick to theirs needs they don't like it and then risk living beyond their means instead of being grateful of the fact that they are mortgage/rent free, free of debt etc.
Wanting is a bad mindset to get into.

Insideimsprinting · 16/02/2020 10:24

Wanting in ops circumstances will end up with debts being racked up...

ChasingRainbows19 · 16/02/2020 10:47

Haven't RTFT. I'm left with £1000 after mortgage . Bills are shared with my partner but I still manage to save a good portion. I have money for shopping, meals out and leisure activities. We aren't materialistic so would rather spend money on experience, days out and short break holidays ( cheap and cheerful do me!) So yes it's of course do able. But then again it's lifestyle isn't some people want the finer things in life which then it doesn't go as far.

I have a single friend on minimum wage who pays £600 rent then all her bills. It must be tight she must only have around half her wage for bills, transport, food and other activities. I doubt she saves!

StripeyDeckchair · 16/02/2020 13:21

It depends doesnt it?
Are you living in a 2 bed flat or a 5 bed mansion with grounds - they'll have very different running costs.
Is the car a small run around, a 4x4 or a Ferrari- they'll have very different running costs.
One person, a couple or a family
Location - rural small town, suburban or city centre

Without more detail it's an impossible question to answer

Original poster
EL8888 · 16/02/2020 14:32

@Topseyt lm not criticising the car. But would agree I don’t think they need it, when my finances were tougher then l got rid of having a car

OP posts:
Original poster
EL8888 · 16/02/2020 14:34

@BarbaraofSeville you are correct. They live in London and do own a property. There are options there. But yep are also being moaned about as well Hmm

OP posts:
Topseyt · 16/02/2020 17:02

So, unless they need the car for mobility reasons (i.e. a disability or medical condition that might make public transport difficult to manage) then they could live without the car, but the other expenses can still come to a tidy sum in some areas.

WallyDancre · 16/02/2020 20:57

One person, a couple or a family

OP clearly stated living alone with no dependants or pets.

ByeMF · 16/02/2020 21:03

Me plus two teens, monthly income £1300 before bills. I have no debt and manage to save every month. So £1k for a single person with no mortgage/rent is absolutely doable.

dodgeballchamp · 16/02/2020 21:18

I’m a single child free person and my food and utilities are less than £350 a month. I shop at Lidl so my weekly shop is 25-30 and bills inc. council tax are around 250. I am in London, earn above average wage and have less than 1000 to play with after rent and bills, but that’s because I also choose to save and pay into a private pension. I feel like I’m doing just fine.

Anyone saying it isn’t enough must have been very lucky and well-paid all their lives because the vast majority of people earning average UK wages won’t have £1000 disposable income a month. I hope all those saying it isn’t enough aren’t also the people who berate others for making bad financial choices, not owning properties or having no savings as we often see on housing threads, because how are people simultaneously meant to live on what you consider a paltry amount and also future proof themselves financially?

MsAnnThropic · 16/02/2020 21:21

Bloody hell! I'd love that much to live off!

formerbabe · 16/02/2020 21:46

@ByeMF

How do you manage on that amount with two teens?! Shock especially if that amount is before bills? Genuine question as I have a similar budget but bills don't come out of it...it's just for food, petrol and non essential stuff and I'm very frugal but have nothing left over to save!