Can you live on £18k a year?

[peeweechigs]

Run a house with two kids? No childcare expenses. Is it possible? Thinking what might happen when separating....

None of us can tell you without understanding your expenses.

Even knowing your pre-tax pay isn't that useful as it depends what your pension contributions are.

You need to sit down and document what your expenses will be, and see if you have enough money to cover that.

Plan out all your expenses for the year, so utility bills, transport, roughly what you spend on food, birthdays and Christmas, budget for clothes/grooming for yourself and the kids like haircuts. Everything.

Then divide those costs into 12. Do you have enough money to cover them?

300 per week.

Isn't not having enough to live on an emergency?

Also, who has 16k of emergencies?

I'm thinking long term, as my earning capacity may be limited. I don't want to spend it unless I have to. It might need to last some years

Me too. I think it's doable. Would you also have maintenance ?

Yes it’s perfectly doable, especially as you have 16k+ in savings. You could top up your salary using your savings by 2k a year if you wanted and have enough to last 8 years (assuming 16k, and you have more than that). What child maintenance would you get?

I could easily. I currently have about 10k per year after housing costs. For me and 2 teens.

18 would feel like untold riches!

Even if you were to be pessmistic and assume your children's father will only give you about 150 a month, if you add that onto the child benefit, your monthly income would be about 1600. Thats a fair amount without housing costs.

I'm hoping I'd get around £400 maintenance but one dc is 16 so would decrease after they go to uni.

So that’s an extra £4800 a year… you will be fine

Yes my total income including my wage and UC is less than this and I manage with 1 DC and pay rent & council tax which comes to just under £500 a month.
I also don’t have any savings.

Of course it isn’t easy and there isn’t usually anything left at the end of the month to have nice holidays and things but it is definitely workable.

NMW is currently £9.50 which many people are on. If they work 40 hours a week that’s £1520 pre tax and £18240 pre tax - so you’ll be on what the majority of the country is on.

Definitely doable but you won’t be living a life of luxury.

For how many people and what are your outgoings? With rent or mortgage it would be EXTREMELY hard to do, unless you get significant benefit / UC top-ups.

Do you get benefits?

So £16k in savings would be paying £62 per month interest at 4.6% obviously if there is more in savings the amount will increase

have you included that in your income if £18k gross?

So your net income could be

£1350 salary
£400 child maintenance
£60 interest
£1810 total

Plus around £1885 a year in child benefit.

Where do you get 4.5% interest at £60 per month from?!

www.thesavings.guru/saving-accounts/notice-accounts

Not sure 4.5 percent is available at the moment

That is not right!

I know these threads bring out competitive poverty, but I do think being able to live on £8000 a year with 2 children (who I'm guessing must be younger than OP's where one at least is a teen) must be pretty tough. That's just £667 a month. You grow your own food, don't turn the heating on and walk everywhere?

Very few people have over 16k for emergencies I imagine !

We are mortgage free. Our house costs are:
£225 council tax
£23 house insurance
£21 water
£185 gas & electric
£10 management company
£62 sky (phone line, broadband, tv, Netflix)
£12 Spotify
£68 pet industry
£15 tv licence
£29 life assurance

I then pay £230 car insurance and £180 car tax annually

Obviously food, petrol, other things.

So yes tight but doable

Could you share how?

I live off 18k with 4 kids but I get full rent covered by housing benefit