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?

Ignore this it's not right, it's gone funny when I've added student loan 🤣

I'm sorry but there is absolutely no way you need to spend £500 a month on petrol and toiletries.

I suspect there are a lot of expenses in your life that you are considering as "essentials" when they are actually luxuries.

There is a very easy way to save money: cut down on the luxuries. You don't need to buy expensive makeup and face creams every single month.

It makes me wonder what other "essentials" in your "food and bills" section are actually luxuries too... Are you buying expensive branded food and cleaning products? Are you eating out much more than necessary? Have you shopped around for the cheapest phone subscription or are you paying for an unnecessarily high-spec phone? Have you got several entertainment subscriptions? These are all the things that people who earn a lot less than you have no choice but to think about, because they actually don't have the money.

No judgement if you decide that actually you would rather live a nice comfortable life and have the expensive makeup than save money or socialise. But as long as you recognise that it's a CHOICE you are making, voluntarily.

Just seen you're sharing so obvs no council tax reduction. Do look at MoneySavingExpert - sometimes surprising tips. Latest is £200 for bank switch - which can be done more than once. Useful to put a little more cash away.

You're not paying enough tax and NI to be on £33k. I think you're only on £29,970 per year! Can you see your monthly gross salary on your payslip? Is it £2750 or £2497.50? x

You need to check all your bills. Look on Moneysavingexpert. How much is your phone?

When does the car loan end, that will help.

Do you get properly compensated by work for using your own car? They should be paying 45 p a mile, which adds up to quite a bit towards the whole cost if you're a regular user.

You might find it easier to budget if you move your energy bill to equal direct debit instead of paying all the heating costs when they occur in winter.

But you'll probably have to accept some compromises, you can't have expensive hair and makeup and lots of socialising for example.

£700 each!? My brother lives in the south east with a flat mats and only pays £800 for a 2 bed, I know rent varies but that seems like a lot!

Is your council tax really nearly £300 a month?

If you lived in a house share (more than 2 people) it should be cheaper, because you would split all the bills

Or can you move to a cheaper area ?

I own my own property & I pay less than £145 per month council tax

You have really got to "want"to save up for a property deposit. There is not much room for luxurious living or luxurys

It shouldn’t be necessary on that salary if this country wasn’t fucked (especially for single people) but maybe think about side hustles. A good survey site like prolific, some matches betting, some buying/selling - things like ghat can get you another couple of hundred a month with some intelligent effort, which could go straight into the house deposit fund.

Sadly I agree with others that you’re not doing anything wrong, it’s just that £33k for a single adult in the south east isn’t loads. If you want to make a significant change to your budget it might require something radical like a big move, a house share or a new career path.

Sad but true.

Unfortunately rents have skyrocketed. I see this with my own DCs. 700 pcm is actually not bad now - though shocking.

Seems about right to me.. I earn almost £29K and only take home just over £1700

Cut right back on make up and hair

I agree, your council tax seems very high for a 2 bed flat. Ours is £105 a month over 12 months and it's nowhere near as cheap as places like Wandsworth.

Been there! I think the only ways to afford a house on that kind of income are:

1. Find a way to live rent free or tax free for a few years (I was a teacher, so boarding school or some friends moved to Dubai etc for a couple of years to save)
2. Move to a cheaper part of the country if your job allows it
3. Get out there on the dating scene if that’s what you want out of life and meet someone else who wants to settle down.
4. Inheritance or moving back in with family for a couple of years to save
5. As others have said, flat share or cheaper rent.
6. Pick up extra work. Again, as a teacher I made £800 per year exam marking, summer schools etc

it should be possible on a professional salary but it’s just not.

33k isn’t a lot for a single person these days, I presume you live in an expensive part of the country if you pay that much rent. The £500 is presumably not just going on toiletries and petrol but everything else including car repairs and servicing, presents, clothes,shoes, stationery, household items, electricals etc, there are so many living costs that are infrequent but when you add them up they end up costing quite a bit every month! If you’re single with no responsibilities my first thought would be try and do some overtime to pay for a few luxuries

You should certainly be able to claim the tax back on any professional membership subscriptions you pay. Is it worth asking your employer whether they would pay for them (although obviously you can't then get the tax back as well)? My employer pays for my professional membership, although I realise I am lucky and not everyone has such generous employers.

I’m guessing OP must live somewhere like Brighton with rent being 1400 for a 2 bed. Absolute madness, I don’t know how anyone is supposed to be able to have savings when stuck in rentals, we are scraping by each month ourselves and have accepted we will never own a home.

I think she is saying that she has £500 left after paying bills and from that £500 she needs to cover all extras like make up, petrol, socialising and savings. I don't think she is saying she spends £500 on make up and petrol.

Hold up? You and your flatmate both pay £150 each pm for energy? That's £300 pm!

We live in a two bed flat and pay £109 pm (this is on the new energy prices - until August we were on a fixed deal and paid £59 pm)

Can you look at trying to reduce your energy costs a bit? That is massive bill for two young healthy people of working age.

I earn approx 52k and I'm massively struggling op. Just my mortgage and electricity per month is 2400. I'm in Ireland and feel like I'm failing in life.

Are you making sure to claim a tax rebate on the mileage you do in your car as part of the job?

I actually don’t understand the maths here- I have similar-ish expenditures to you bar the car, but I’m on fourteen grand and can save £100 a month. And I’m (genuinely) shit with money, shop at Sainsbury's and live in an expensive area.

How expensive are these subscriptions?!

Also look at your phone costs. I have a SIM only deal with Three and it is £11 per month. Yes I had to buy thr phone outright but there are a lot of decent reconditioned smart phones out there if you don't mind not having the very latest model.

A correction- your energy bills are a lot higher then mine.

Your council tax cannot be right at £290 pcm for a two bedroom flat. Check what equivalent flats are paying (advice re this on MoneySavingExpert).