I'm wasteful with money, need advice and have a goal...
Discussion
Hi,
I could do with a bit of advice with some help and advice with my spending… I reckon the only way is to be absolutely honest with the detail:
I’m 31
Single
Earn roughly £48K basic with around £2K (gross) bonus paid in April each year
I have no debt, no loans, no credit card balance
I’ve a company car, so no running costs, other than private fuel
My net pay is around £2250 PCM - this figure is very slightly variable as my private fuel is deducted from my pay.
Outoings:
Rent - £625
Council tax £90
Gas / electric / water - £75
Gym - £30
Mobile phone / internet - £38
Contact lenses - £25
Food - £150
And so circa £1000 a month outgoings minimum.
Student loan is paid off
I’ve no pension(!)
I’ve £3.5K in savings
The issue is that I am, by my own admission, wasteful with money. I won’t go into detail about the crap that it goes on, by almost all of it is needless and in most cases not even materialistic so I’ve actually nothing to show for it. That said, I own everything I need and short/medium term there’s nothing I need to buy.
I really need to change my ways and intend to start 2016 differently, and really need a kick up the ar*e! Indeed, even typing the list made me realise how wasteful I am with the money I have spare.
I move around a lot with work, having lived in 5 different locations in as many years and I’ve always rented. I now need to grow up and buy, even if it’s a buy to let. I’d like to be on the ladder in 2-3 years. My aspiration it to own something nice in Manchester centre or close by.
Given my honest account of things, what would you do in my shoes given my outgoings and my long-term plan? Any advice gratefully received.. I reckon I could comfortably put away £500 - £700 a month.
I’ve read about the government ISAs which add 25% to whatever you save up to the value of £12K, so £15K paid out when buying times comes. What do you reckon?
Perhaps I should consider a house share which should see my save another £250 a month? But then again that’s the price of total freedom.
Thanks in advance.
I could do with a bit of advice with some help and advice with my spending… I reckon the only way is to be absolutely honest with the detail:
I’m 31
Single
Earn roughly £48K basic with around £2K (gross) bonus paid in April each year
I have no debt, no loans, no credit card balance
I’ve a company car, so no running costs, other than private fuel
My net pay is around £2250 PCM - this figure is very slightly variable as my private fuel is deducted from my pay.
Outoings:
Rent - £625
Council tax £90
Gas / electric / water - £75
Gym - £30
Mobile phone / internet - £38
Contact lenses - £25
Food - £150
And so circa £1000 a month outgoings minimum.
Student loan is paid off
I’ve no pension(!)
I’ve £3.5K in savings
The issue is that I am, by my own admission, wasteful with money. I won’t go into detail about the crap that it goes on, by almost all of it is needless and in most cases not even materialistic so I’ve actually nothing to show for it. That said, I own everything I need and short/medium term there’s nothing I need to buy.
I really need to change my ways and intend to start 2016 differently, and really need a kick up the ar*e! Indeed, even typing the list made me realise how wasteful I am with the money I have spare.
I move around a lot with work, having lived in 5 different locations in as many years and I’ve always rented. I now need to grow up and buy, even if it’s a buy to let. I’d like to be on the ladder in 2-3 years. My aspiration it to own something nice in Manchester centre or close by.
Given my honest account of things, what would you do in my shoes given my outgoings and my long-term plan? Any advice gratefully received.. I reckon I could comfortably put away £500 - £700 a month.
I’ve read about the government ISAs which add 25% to whatever you save up to the value of £12K, so £15K paid out when buying times comes. What do you reckon?
Perhaps I should consider a house share which should see my save another £250 a month? But then again that’s the price of total freedom.
Thanks in advance.
Maybe set a standing order going out after all bills a few days after payday, into your savings.
You can then only live within your means...in reality, unless it's actually a problem, you need the cash and your enjoying yourself there's not too much wrong currently, indeed I feel most for those that live champagne now on Buck's Fizz money...
You can then only live within your means...in reality, unless it's actually a problem, you need the cash and your enjoying yourself there's not too much wrong currently, indeed I feel most for those that live champagne now on Buck's Fizz money...
The answer obviously is in your own hands, when buying something think "Do I really really need this?"
However, you are single, earn a decent wage, so you don't need to turn into a miser.
Like many things, the middle ground is the best way. Spend a bit, save a bit.
If you can save around 20k you should have enough for a decent house in the Manchester area, repayments will be around (or less) what you are spending on rent, BUT buying a house might be a bad idea if you move around a lot.
However, you are single, earn a decent wage, so you don't need to turn into a miser.
Like many things, the middle ground is the best way. Spend a bit, save a bit.
If you can save around 20k you should have enough for a decent house in the Manchester area, repayments will be around (or less) what you are spending on rent, BUT buying a house might be a bad idea if you move around a lot.
Thanks for the suggestions.
I'll probably look to open an ISA and do as suggestion in terms of the monthly transfer of £500-700, set up as a S/O.
And you're right, keep moving is definitely not ideal and it's likely to be on the cards for some years to come. That is, until I say enough's enough and then career progression becomes limited. The alternative that colleagues face is Mon-Fri is a hotel and then home at the weekends, or they rent out their property and rent elsewhere.
I know there's a lot to consider in terms of buying - my mortgage provider might not allow for a buy to let and I don't know the consequences of letting out a property where the mortgage doesn't allow for this. And by the look of it, the government ISA doesn't allow you to use it for a buy to let either.
I'm just pissed off with dead money in terms of rent. What will I do if/when I retire too as I wouldn't be able to keep up rent payments!?
I'll probably look to open an ISA and do as suggestion in terms of the monthly transfer of £500-700, set up as a S/O.
And you're right, keep moving is definitely not ideal and it's likely to be on the cards for some years to come. That is, until I say enough's enough and then career progression becomes limited. The alternative that colleagues face is Mon-Fri is a hotel and then home at the weekends, or they rent out their property and rent elsewhere.
I know there's a lot to consider in terms of buying - my mortgage provider might not allow for a buy to let and I don't know the consequences of letting out a property where the mortgage doesn't allow for this. And by the look of it, the government ISA doesn't allow you to use it for a buy to let either.
I'm just pissed off with dead money in terms of rent. What will I do if/when I retire too as I wouldn't be able to keep up rent payments!?
I think I'd go down the ISA home buyer route but you need to check the max limits. I think you may exceed it
I would also look to boosting pension as much as possible
With your salary you will get a tax rebate uplift. Not sure if it's at 40 % but you will get 20%
I am retired and I gave just taken out a pension as I get a 20% uplift. Max for me is £3600 a year as I'm a non earner.
I would also look to boosting pension as much as possible
With your salary you will get a tax rebate uplift. Not sure if it's at 40 % but you will get 20%
I am retired and I gave just taken out a pension as I get a 20% uplift. Max for me is £3600 a year as I'm a non earner.
Forgive me if I'm wrong, but it sounds like gambling. Speaking as someone who spends a bit on it, you have to budget. And once it's gone, it's gone.
If not, then whatever it is, just assign it a budget. If you enjoy it and it's spare cash then spend on it - just don't let it swallow everything that's left after the essentials, whether it's booze or whatever.
Also, I'm sure it'll be something to do with your fuel/deductions/whatever, but how do you get £48k to be £2,250/month? Seems like a huge chunk for whatever the deduction is.
If not, then whatever it is, just assign it a budget. If you enjoy it and it's spare cash then spend on it - just don't let it swallow everything that's left after the essentials, whether it's booze or whatever.
Also, I'm sure it'll be something to do with your fuel/deductions/whatever, but how do you get £48k to be £2,250/month? Seems like a huge chunk for whatever the deduction is.
russ_a said:
Your Net pay is around £900 light. Get rid of the company car!
Really? Can't be right, can it? It's a MINI Cooper SD, so very low tax bracket is worth £23500 in terms of BIK.Perhaps the £2200 was less than I'd thought. Here's last months's payslip detail. Where am I going wrong?
Ps. Stuck with the car for 3 more years I'm afraid. And I do 5000 business miles a year and wouldn't fancy sticking that on a private car, not least one I'd like to run if it were my own money.
Payslip details as below:
Basic - £3929
Pension / salary exchange - £39
Chargeable benefits:
Car benefit - £371
Medical insurance/private health care - £62
Tax - £823
Fuel - £232
Car trade up value - £2
Total pay = £3890
Total deduction = £1408
Net pay = £2481
£2700 is what I've got to with an app I use, which sounds about right without the car and fuel deductions
My advice is to limit yourself in everyday spending. Open new current account and set up a standing order of, say, £300 for spending on food, beer, whatever. The account your wage goes into should just be used for direct debits. You'll get a clearer picture then of your monthly outgoings. That's what I've done and it's really helped me a lot
My advice is to limit yourself in everyday spending. Open new current account and set up a standing order of, say, £300 for spending on food, beer, whatever. The account your wage goes into should just be used for direct debits. You'll get a clearer picture then of your monthly outgoings. That's what I've done and it's really helped me a lot
Edited by Ste1987 on Monday 14th December 20:24
Just comments off the top of my head:-
5,000 business miles is trivial. Mine used to be about 40,000 and I was largely office-based !
You need to put quite a bit into a pension. Boring stuff at present but an almighty relief when you get older (and it's then too late to do much about it).
5,000 business miles is trivial. Mine used to be about 40,000 and I was largely office-based !
You need to put quite a bit into a pension. Boring stuff at present but an almighty relief when you get older (and it's then too late to do much about it).
Thanks for the feedback. Much appreciated. From what's been said my net income seems about right then. How could I get this independently checked? i.e. my tax code etc?
There's a running theme, so it looks like:
ISA - monthly instalment straight out after pay day of £600 or so
Make sure it's a government ISA
Look into a company pension asap - I've been burying my head on this for a long while
Spunk whatever's left as I still need some fun!
The company car's staying I'm afraid. It can't be given back for 3 years. And in all honesty, yes it's costs me more than it would do if I were to run the same car privately. But then again, I go through front tyres every 10K miles at £140 a corner. And when it gets damaged like that last one, I have no insurance excess to worry over. And no insurance, no VED, no depreciation, no servicing or MOT. I appreciate it still works out more expensive but I wouldn't have the deposit to chuck at financing one.
I started to think a bit more seriously about my spending when I opted for this particular co. car. It's cut my fuel bill to less than half of the previous car. I know that's not a PH thing to say.
There's a running theme, so it looks like:
ISA - monthly instalment straight out after pay day of £600 or so
Make sure it's a government ISA
Look into a company pension asap - I've been burying my head on this for a long while
Spunk whatever's left as I still need some fun!
The company car's staying I'm afraid. It can't be given back for 3 years. And in all honesty, yes it's costs me more than it would do if I were to run the same car privately. But then again, I go through front tyres every 10K miles at £140 a corner. And when it gets damaged like that last one, I have no insurance excess to worry over. And no insurance, no VED, no depreciation, no servicing or MOT. I appreciate it still works out more expensive but I wouldn't have the deposit to chuck at financing one.
I started to think a bit more seriously about my spending when I opted for this particular co. car. It's cut my fuel bill to less than half of the previous car. I know that's not a PH thing to say.
Edited by thenortherner on Monday 14th December 20:31
Your car is costing you £600 per month!
The tax value looks like it includes fuel benefit, and then you're paying over £200 for fuel as well?! That seems like a lot in a diesel MINI.
It also looks like you're paying 1% in to a pension. Increase that if you can. Think of it as a very long term savings account. With the tax/NI savings, and if your employer matches contributions then £200 in your pension might only cost you £58.
The tax value looks like it includes fuel benefit, and then you're paying over £200 for fuel as well?! That seems like a lot in a diesel MINI.
It also looks like you're paying 1% in to a pension. Increase that if you can. Think of it as a very long term savings account. With the tax/NI savings, and if your employer matches contributions then £200 in your pension might only cost you £58.
blank said:
Your car is costing you £600 per month!
The tax value looks like it includes fuel benefit, and then you're paying over £200 for fuel as well?! That seems like a lot in a diesel MINI.
It also looks like you're paying 1% in to a pension. Increase that if you can. Think of it as a very long term savings account. With the tax/NI savings, and if your employer matches contributions then £200 in your pension might only cost you £58.
Something just doesn't seem right.The tax value looks like it includes fuel benefit, and then you're paying over £200 for fuel as well?! That seems like a lot in a diesel MINI.
It also looks like you're paying 1% in to a pension. Increase that if you can. Think of it as a very long term savings account. With the tax/NI savings, and if your employer matches contributions then £200 in your pension might only cost you £58.
I have a fuel card. I have to submit my mileage monthly online. If I do 1K miles in a month, for example, and 500 of those are business, then 50% of these are business and the other 50% are therefore private miles. So 50% of the total spend gets deducted from my wage. This is how it works each month.
Trust me, there's no benefit in kind!
I'm not disagreeing with your £600 pm but how have you come to that number? I'm really curious now that a few people think there's a black hole / my car is costing me £600 in tax etc, but others reckon my net income's about right. Totally confused!
Cheers,
£600 was just the car plus the fuel in rough numbers.
Have a look on www.comcar.co.UK, it looks like the BIK you're paying includes fuel benefit and is therefore about twice what it should be.
You must be doing a lot of personal miles to get through that much diesel, too.
Have a look on www.comcar.co.UK, it looks like the BIK you're paying includes fuel benefit and is therefore about twice what it should be.
You must be doing a lot of personal miles to get through that much diesel, too.
Hold on, you've missed off national insurance.
The £371 should be the benefit value, so you should actually pay about £148 (40%).
It's confusing as your car and health benefits almost add up to your deductions, so it looks like you're paying their full value. But I think the difference is actually NI and you're probably paying the right amount.
Which means the healthcare is much better value!
www.thesalarycalculator.co.uk and the company car website will let you check it all.
The £371 should be the benefit value, so you should actually pay about £148 (40%).
It's confusing as your car and health benefits almost add up to your deductions, so it looks like you're paying their full value. But I think the difference is actually NI and you're probably paying the right amount.
Which means the healthcare is much better value!
www.thesalarycalculator.co.uk and the company car website will let you check it all.
Edited by blank on Monday 14th December 21:42
blank said:
Hold on, you've missed off national insurance.
The £371 should be the benefit value, so you should actually pay about £148 (40%).
It's confusing as your car and health benefits almost add up to your deductions, so it looks like you're paying their full value. But I think the difference is actually NI and you're probably paying the right amount.
Which means the healthcare is much better value!
www.thesalarycalculator.co.uk and the company car website will let you check it all.
Oops, you're right. NI was £350 that particular month.The £371 should be the benefit value, so you should actually pay about £148 (40%).
It's confusing as your car and health benefits almost add up to your deductions, so it looks like you're paying their full value. But I think the difference is actually NI and you're probably paying the right amount.
Which means the healthcare is much better value!
www.thesalarycalculator.co.uk and the company car website will let you check it all.
Edited by blank on Monday 14th December 21:42
As far as the co. car tax goes, how do I know for certain whether I'm overpaying or being charged BIK for a fuel card that's of no benefit? Is it reflected in my tax code? I really want to get onto this.
Fuel's usually around £100 private miles, including commuting. That seems an exceptional month at £238. I need to look into that as I can't think of why it'd be so high.
It looks like I've underestimated my net income too:
June - £2595
July - £2555
August - £2500
September £2610
October - £2481
November - £2538
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