33k and struggling

[farmanimals]

I don’t understand what I’m doing wrong. I’m earning just shy of 33k which is a really respectable salary. Yet I’ve just budgeted for the month and I’m really struggling to save anything or even have anything to spend.

My total for rent, all bills, food, car, phone bill, subscriptions I need for work is £1400. My bills have skyrocketed. I am earning £1900 a month.
This does give me £500 but this has to go towards all outgoings including petrol, all my toiletries and make up, I have to get my hair done because it’s really damaged as well. So if I want to socialise it’s basically out of the question.

Also I’m putting a lot of pressure on myself to save a deposit for a house. I’m putting lile £100 away at the moment a month if that, and only have £2k in a LISA. Makes me think I’m never ever ever going to buy a house.

Am I wrong in wondering how this is possible?

Sounds like you're doing OK, it's a stretch for most people at the moment. Keep going with your savings and seriously look at your budget. Save anywhere you can, even little savings add up. In a similar position myself and I've had to cut down on things. Try and swap out expensive make up brands for cheaper alternatives. If you have plans on a Friday night try not to spend any money that week. So fill car up on payday, make sure direct debits are paid, do a shop and then take lunch to work and just don't spend.

Not surprised tbh. Could you bring your rent down as I suspect this is one of the few areas that could change? Other than the hair care obvs! Plus 'socialising' could just be having a coffee or going to a friend's home. I don't think you are doing anything wrong, things are hard for a lot of people and sadly if you are heating and eating saving and have money left over you are doing okay.

Can you give us a complete breakdown of what you spend on each item? We'll then be able to offer better alternatives or solutions but straight away, I'm tempted to suggest that your beauty spending may have to be cut.

How much are you spending on make up and toiletries?

Out of the £500, could you put away £100 for petrol, £200 for discretionary spends and then save the rest? I’m on a larger salary but I only ‘give myself’ £200 each month for fun money after bills and savings. Is there any subscriptions you can cut back on? Toiletries and makeup don’t need to be that much surely. It is difficult as a solo renter but there are places to save here. Could you move into a house share to save money for a house in the short term?

Are you paying a lot into your pension as £1900 seems a bit low for that salary

Make up every month? Surely not? Otherwise I'd say you're doing fine in the current economic climate, better than many!

@AuntieDolly she might have student loans

OP it's tough when you're living alone. 33k is a decent salary but with inflation it won't be going as far as you'd probably expect. Is there scope to increase your salary? Are you in an industry with annual increases/likely promotion? If this is temporary you'll be fine. I lived in similar financial circumstances for a few years (good professional job but young and just starting out) and it was tough but then I got the promotion, met a partner and we're now really comfortable

I earn 5K less than you and take home £1900 a month - are you putting lots into your pension?

Are you paying for your car on a lease monthly? Is there anyway you could save money on your phone bill? I went to sim only after coming out of my contract and that has saved about £30 a month.

Could you cut back on your toiletries, make up and hair? Are you buying expensive items?

Is there any food swaps you could do for cheaper items? Or batch cook, meal prep, freeze meals etc?

Sorry that probably sounded really smug, it was not meant to. Just meant that things will get better.

Thanks Professor Brian Cox

Are you living alone? If you’re entitled to ANY amount of UC - claim it. Even if it’s one pound. That way you can open a government “help to save” account with 50% interest.

It sounds like you might be spending quite a lot on toiletries and make up. Might be worth looking at how much of that you actually need to spend or asking on the style and beauty Board for budget ideas that work. Or doing a brand swap where you swap down a brand.

I probably spend maybe £200 a year on toiletries and make up - but I am old and low maintenance. I was really shocked at what my DSD was spending a month.

Get hair cut every 2 months at £60 a time (inc tip). Sometimes the less you do to it the more quickly it repairs itself.

If you want to get some savings together ....then you probably need to have a think about priorities. e.g. what socialising means....£200 on a night out - or £20 on pizza from the shop and a bottle of wine or 2 with friends.

Agree with other posters £1900/month on £33000 sounds low. Check oension contributions and tax bracket (emergency code?).

I find with things like toiletries, a lot of what you feel you need is in your head, because it's what you're used to.

I spend about £75 a year on hair and makeup after getting myself a good pair of scissors and learning how to give myself a trim. Then it's just occasional eyeliner and mascara, tinted moisturiser, hair and brows dyed at home.

I'd rather have that than fret about money.

@yoyo1234 when’s I earnt 40k my take home was only 2300 due to pension and student loan

@Nw22 Large pension contributions are a choice though.
I earn about the same as you and take home about £2300 a month. I pay statutory minimum into a pension as that is all my employer will match.

If you are paying up to £400 a month extra into a pension above the statutory minimum then you will be short of money.

Are you local government? I'm in the LGPS and take home £1900 after tax and pension on a salary of £33k.

To be honest, I couldn't live alone. Wouldn't be able to afford it.

I meant I earn about the same as OP and take home £2300 a month.

@AtticusFrost it wasn’t a large pension contribution. It was the minimum allowed by my employer

@Nw22 Okay. Your employer must have an amazing pension plan.

I suspect the depressing truth is that 33k as a single person is just not enough any more to cover much more than the bare essentials. This is a shocking and awful state of affairs and should make us all very angry - but what I mean is, it's not like you're doing anything wrong with your budget, or should be able to save more money. Just keep on keeping on and don't be hard on yourself, that would be my only advice.

Of course it is enough to cover more than bare essentials in most of the country. Everyone I know single is earning this or less.

I absolutely get it OP. My take home is similar but I get a small pension from my late husband on top and I still struggle every month. I'm pretty financially savvy but the truth is, everything has got so much more expensive and what was doable even six months ago is a struggle now. For me the rise in groceries and bills has pushed me over the edge from "fairly comfortable" to "struggling".

Think a bit of a detailed list on your expenditure might help to identify where your spending more than you really need to.

For example is your phone costing you £10 or £40 a month? etc.