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?

Subscriptions for work - like professional memberships? You could be eligible for tax relief on these, would be worth checking.

It is possible to save more but only if you're ridiculously strict with money and that really isn't easy.

This is worth thinking about OP.

£33k is a reasonable salary, but how much of that is going into things like your pension, any work based healthcare plans, student loan etc?

As you can see, some people on your salary are taking home a lot more than you. Your actual take home salary might be more like someone on £25-26k if you have a lot of (necessary) extras you are paying for.

Have you looked at opportunities for career progression or maybe negotiating a better salary as well (I know it's not always straightforward but could be worth thinking about?)

If OP is in London, she could easily be spending that as a sharer renting. My DC both rent in shared flats and spend £800 - £950 each. That’s before council tax, energy, water, broadband etc.

And no, they’re not in Knightsbridge or Hampstead

first of all, you're doing a great job with 2k saved and budgeting enough to have 500 leftover each month!
everyone is feeling a pinch right now and hopefully it will blow over gradually (as they usually do) - in the meantime it will be hard but there are some things you can do.
how much are you spending on food? how much do you spend on makeup per month? and getting your hair done is a one time expense right?

I'm on 29k and I have 2 kids half of the time. It's pretty rubbish these days, used to be fine (ish).

My total for rent, all bills, food, car, phone bill, subscriptions I need for work is £1400

How would you feel about posting the actual amounts?

Most people can cut back on food, phone and subs. Phone- haggle for cheaper deal?
Obviously if you are leasing a car or on credit you budgeted for that? If it's a huge amount you could always end the lease and get a cheaper car (if there was no penalty.)

Beauty products- can you cut back or go for cheaper? I buy high end make up (eg Bobbi Brown) but I don't buy often. Most products last me for months and I tend to stock up when they have 20% off. Most cleansers and moisturisers are the same thing but you will pay for a big name brand.

where does she say london?

I wouldn't describe it as "struggling", but I can see that you have less disposable cash each month than you would have had prior to the CoL increases.

I would look carefully at all your discretionary spending each month and decide if there is anything you can cut back on or swap to a cheaper alternative. When supermarket own brand shampoo is less than £1 per 500ml bottle, it seems crazy to spend > £5 for a branded version.

The personal grooming budget is huge, I have severe allergies to most products so can only use Clinique, it’s £45 for a pot of my moisturiser but I only use two a year. How much are you using?

When you say "all your toiletries and make up and getting your hair done", how much are you spending on these?

I bet you could cut quite a lot there tbh. Those things do not need to cost the earth.

£500 a month disposable income after bills, food etc for one person isn't bad (depending how much of that is going on petrol).

I did a small Lidl shop today, mainly vegetables and some meat. It came to around £23. I have always been a loyal sainsbury shopper, but have found lately their prices have become astronomical so I am buying more and more from said Lilly, especially meat and fish. I did a price comparison item by item on todays shop comparing the two shops and Lidl came out at around £6 cheaper and that was just a smallish shop. The only meat was a big pack,of minced lamb which I can turn into four meals by splitting it up and freezing. We are a two person household, both recently retired.

I think you’re doing ok, OP. I did a financial well-being course through work recently and they didn’t really have an answer for what to do when you’ve cut back on everything and still can’t survive. 3 years ago, we paid £75/month for gas and electric. Now it’s £250! Food and petrol cost way more. We used to have a good contingency element for fun and extras. Got paid today, £300 for food for the month for a family after all bills paid. It’s tough.

You have £500 per month after rent, bill and food. That's actually quite a lot. Toiletries, make up and hair are discretionary spends and not essentials, so it's your choice really if you want to spend a chunk of your £500 on those. It would be more sensible to spend for example, £250 on house deposit saving, £100 petrol (if you need this much), and £150 spending money, until you have enough saved for a deposit. Do your own hair or get just a cheap wet cut, essential cheap toiletries only and you really don't need to buy make-up every month. It's your own choice if you decide to prioritise your hair and make-up over buying a house.

The OP could be paying back a student loan. That could be taking a few £100 each month.

£500 a month towards toiletries, petrol and make up is a lot.
As I said I earn the same amount as you and socialise a lot. But I also only use supermarket toiletries - less than £10 a month, make up occasionally - less than £10 a month, about £120 a month on petrol. I cut my own hair and cook so make food cheaply.
If you buy beauty products you can spend a lot very quickly. You need to look at what you are actually spending and decide how much you really want them.

I don't want to patronise you but have you actually hunted around properly?

I have sensitive skin and thought I had to use expensive products as well - I was using Clinique for years. But recently I was away overnight and forgot my moisturiser, so I used Simple hydrating gel, which is like £6 a bottle, and it's absolutely fine. Just as good as Clinque.

I have stopped using Clinique altogether and I now think it's a complete rip off.

There are cheaper products which don't contain irritants, you just have to look.

This is a huge exaggeration. It completely depends on where you live and what your outgoings (negotiable and non-negotiable) are. Until a few months ago I was earning this as a single person (and the year before significantly less), loads of my single friends, family members and colleagues earned/still earn the same or less and its definitely enough to live on - even if things have been tighter this year its meant a slight cut back to some (not all) luxuries not bring unable to afford essentials.

Op is there anything you can significantly reduce, even if not now (i.e. tied into a contract) in the future - switch to sim only phone, get cheaper car, move closer to work rather than spending petrol, any opportunity to work from home occasionally, if you go to the gym do you make the most out of it (i.e. always showering there rather than at home) or could you downgrade to, for example one without a pool or gym only membershipf you don't go to classes etc., or exercise outdoors in the summer?

Work out different ways of doing things you enjoy rather than cutting them out completely-e.g. you could get a bottle of wine to catch up over a friends rather than at a bar. Get trainees to do your hair rather than the top stylist and reduce from, say, every 6 weeks to every 2 months. Do yoga at home or in the park from a free YouTube video rather than a gym class.

If you are single and want to see friends, date and socialise it can be expensive. I used to spends loads on getting hair and makeup and clothes for dates. Is that a bit of the case?

£33k coming out as £1900 a month would be correct in my field (universities) - student loan and 9.8% pension contributions. It's sort of optional, but only kind of - that's the workplace pension we have, and stopping that would mean foregoing employer contributions.

Basically, I don't think opting out of pension contributions is a good idea long term. There are some other good ideas on this thread.

I too used Clinique for years due to allergies. I swapped a while back to Olay (red pots) and choose the unperfumed variety. I buy them for around £14 from Amazon compared to £35 in the shops.

I also buy cheap cleansers - la Roche Posay for under £10 and they last for months.

@AIBUYesSometimes

She doesn’t. That’s why I said IF.

Same as other posters saying stuff about IF OP is paying student loan.

Hopefully she will come back and clarify further so we can help.

You should be taking home more like £2.2k on that salary....

And sadly £33k is not an amazing salary to live alone and fund everything yourself. Mortgage, bills, petrol, food, that's most of your money instantly gone.

I wasted more money trying to find cheaper products than if I'd just stuck with Clinique! Even Simple brought me out in spots. I now stock up on Black Friday or when Clinique have discounts. I might spend a lot that month but it lasts me ages

Ah ok @rothbury I think it's unlikely she is in London if she is running a car. I don't know anyone who lives in central London with one (not young people renting , as the congestion charges are so high and parking is a nightmare.) And rents now are close to £1K a month for even the outskirts.