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Original poster

Can we survive on £500?

69 replies

Ozster · 03/10/2020 07:03

We are looking to move into catchment area for DD secondary school but it would mean taking on a much bigger mortgage (no surprise there!)

I've worked out that after ALL expenditures (mortgage,bills,petrol,food,kids clubs,childcare) we will have £500 left.

This £500 would be for days out/saving/emergencies.

I know it's not a lot but do you think I could make it work for a couple of years ?
I am at the beginning of my new career so my salary will increase each year.

I was thinking maybe £100 for days out etc and £400 save for emergencies?

Any tips and tricks ?

OP posts:
Restlessinthenorth · 03/10/2020 07:12

OP, said kindly....this thread isn't going to end well for you. Some people exist on less than £50 for extras each month. Obviously you can survive on £500 for luxuries, it's just a decision for you as to if it's too much of a compromise on the lifestyle you are used to, weighed up against the benefit of a better house/school. Only you can answer that!

My feelings would be to for it, but with a word of caution; it's a tricky time for the job market. I would be making an assessment of how secure your employment is, and how easily you will pick up with if you lost your job. Don't overstretch yourself now if there is any chance covid might impact on your ability to earn

KihoBebiluPute · 03/10/2020 07:20

£500 disposable income after all essentials paid for is a very comfortable lifestyle, making you pretty wealthy. Of course you can "survive" - you know that some families just have £500 left after paying rent and have to get food and bills out of that before they get to any kind of leisure spending.

You will be fine. Manage your expectations and pretend to yourself that you have less than you do. Every possible income bracket contains some people who manage to exceed their income, build up debt and have chaotic finances, and some people who manage to keep things balanced. I am "naturally" one of the former type but I manage to keep my finances reasonably ok by pretending to myself and keeping my views of what is a reasonable amount to spend on leisure etc firmly pegged several steps less luxurious than I could. That way when I overspend as I inevitably do, there is still a bit of slack.

FlatShite · 03/10/2020 07:28

Obviously it's enough if all your bills and essential living costs are covered Hmm

JourneyToThePlacentaOfTheEarth · 03/10/2020 07:32

Did you budget for clothes? I've got 2 teenage boys and one tracksuit costs more than a suit for work, it's ridiculous! If you've budgeted carefully (including cheeky take aways) you'll be OK on that amount. Although The price of groceries seems to be going up too, sigh

Toomanycats99 · 03/10/2020 07:33

Does it include stuff like annual boiler servicing. Money out away each month for birthdays / Xmas.

Those things can all add up abs out a dent into that £500!

overnightangel · 03/10/2020 07:34

Only 6 grand a year to spend on holidays? You poor soul

Passthecake30 · 03/10/2020 07:35

How old is your DD? You’ve put childcare on your list, but if you’re moving for a secondary school, that might stop in the near future releasing up some money?
Secondary school also comes with it’s own increased costs, uniform, the trip away that “everyone” is going on etc.
How often do you go out now, would it be a hard change?
I have 2dcs and we could live off £500 just for normal entertainment - however, you’ve not mentioned holidays, Christmas, bdays...

hopefulhalf · 03/10/2020 07:38

It's doable, but beware teenagers are expensive those essential bills especially food and clothes will increase enormously in the next 5 years. You essentially go from primary school dc who are happy enough in supermarket clothes and cheap activities. To young adults with adult tastes.

Blondeshavemorefun · 03/10/2020 07:44

Many families survive on £500 a month after rent

This is play money as such

Uou will be fine.

Original poster
Ozster · 03/10/2020 07:45

@overnightangel Not just for 'holidays' . The £500 would have to cover car/boiler breakdowns etc

Your comment wasn't helpful.

OP posts:
cakeforbreakfast1 · 03/10/2020 07:48

As @Restlessinthenorth said @Ozster this isn't going to go well for you. £500 is a lot for most people but it depends on your spending.

After everything I'm lucky if we have £100 for "extras and savings" despite living as frugally as possible.

Just accept everyone's answer as yes you can and move on

fairydustandpixies · 03/10/2020 07:49

OP, £500 a month is all I get. That has to cover all bills, food and so on.

BuffaloCauliflower · 03/10/2020 07:51

Yes it’s fine just be sensible. Have a look at things like a boiler cover you pay regularly to avoid unexpected large bills. I’d do as you suggest and split savings from ‘doing stuff’ money

Zoflorabore · 03/10/2020 07:53

If you’re able to put £400 in your savings each month then this is not about “survival”

Survival is where there are no savings and pretty much every penny has to be budgeted for.

Back to your op though, yes of course you would be fine but I think you already know that. So many people on here are living on next to nothing when all is paid for but it you’re used to having much more to play with then of course you will feel the pinch.

Ihopeyourcakeisshit · 03/10/2020 07:53

In the words of someone else similarly tone deaf, yes you'll survive, maybe just not thrive.

dashoflime · 03/10/2020 07:55

Obviously its fine.
But yy to pp who said to think hard about job security. Its good to keep fixed costs low if you're at all worried.

Bertyb7 · 03/10/2020 07:58

I think it's all about perspective. Would you be happy having £500 left over at the end of every month and not being able to save or have spontaneous treats? It is 100% do-able as a lot will say but would it be enjoyable, relaxing and fulfilling probably not for everyone... it would be the not being able to save much which would get to me and feeling like I was trapped into specific jobs in order to pay the mortgage. DH and I usually look at things from the perspective of if one of us lost our current job and needed to go on minimum wage, could we still afford it. If not we don't let our lifestyle creep.

goalpostmover · 03/10/2020 07:58

Start doing it now, draw out the £500 per month if it's easier and don't dip into savings unless it's a real emergency.

Snog · 03/10/2020 08:02

£500 a month - yes fine
£500 a year - hairy

2020hello · 03/10/2020 08:09

We did the same thing you have done and we are left with £200 per month which has to cover petrol and treats. I cant wait to have £500 disposable income.
You should definitely do it it will be worth it.
But it depends what you are used to as if you think 500 is not a lot of money left then you may be used to alot more disposable income so you may struggle depending of if you waste a lot of money.
You should already have savings if you had more disposable income previously and have been saving anyway. So take the leap.

Disfordarkchocolate · 03/10/2020 08:16

It depends, have you been realistic with your outgoings. Lots of people forget the multitude of little outgoings that crop up.

SandysMam · 03/10/2020 08:17

There’s so many of these threads at the moment. I am more sympathetic to the ones that are based on “is x amount enough after rent is paid for all other bills”. They then lead to tips on how to shop better, cheaper utilities etc, some of which aren’t commonly known and are very helpful. I find these types of thread are just the OP needing to have it confirmed that this is plenty, they are in a privileged position and then the icing on the cake...examples of poverty porn to really get them salivating. Hearing how others have to use the foodbank or chose between heating and eating is what they need to be able to breathe a sigh of relief and say “of course we’re ok, silly me”. Not saying you specifically OP but there have been so many of these I’m sure some are guilty of this.

notso · 03/10/2020 08:20

Surely part of it depends what your used to having left over.
Have you considered how costs might change if you move, we moved to a house with a water meter and our water bill doubled which we weren't expecting.

AltoCation · 03/10/2020 08:29

Have you also taken into account one off costs : Car service and MOT, boiler service, annual direct debits like TV licence? Have you checked the Council Tax band and cost of your likely house type?

Taken into account changed to child care costs, included child benefit?

Yes, you can probably do it, because there are always costs you can cut. Food bills for example.

And when push comes to shove, days out every month are not an ‘essential’.

Original poster
Ozster · 03/10/2020 08:32

@SandysMam
I’m sure that is true for some OP’s on other threads.

I, however have been ‘in poverty’ . I have now done a MSc and worked three jobs to get into theirs new, better solid career.

I have had a year of being ‘comfortable ‘ and the prospect of maybe going back to being tight with money terrifies me. Perhaps that’s me over reacting but my past experiences had scarred me.

I started this thread to try and get tip (which I have had) about what else to consider and how to play it safer

I apologies if it seemed otherwise

OP posts:
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