Could you live on salary of £1600 a month? (take home)
Discussion
So I'm thinking of going for a particular job, the salary is only 26k a year. Quick look on a salary calc and that equates to roughly £1585 a month take home after tax, NI, pension contribution of 5%.
I'm wanting a job which is less stressful than what I normally do, which is why I'm considering it, and am not particularly money motivated, but just idly wondering whether that's realistic. I have a partner who works, and one sprog. Live in north west london FYI.
Anyone here got an experience of downsizing your pay packet?
I'm wanting a job which is less stressful than what I normally do, which is why I'm considering it, and am not particularly money motivated, but just idly wondering whether that's realistic. I have a partner who works, and one sprog. Live in north west london FYI.
Anyone here got an experience of downsizing your pay packet?
Haven't downsized pay packet personally but family income was halved after Mrs was made redundant and subsequently stayed at home with kids.
At the time it took the pressure off and life was more relaxed. Nursery/childcare bills were crippling us anyway.
But despite the spreadsheets and good intentions we didn't really live within our means and ate into savings. Mrs Zep is now working again and we've downsized our mortgage by moving to a cheaper property area. Much happier now although this is due to a range of different life changes.
So, I wouldn't link happiness with income completely and as long as you have good financial controls and aren't too materialistic it can work perfectly well.
At the time it took the pressure off and life was more relaxed. Nursery/childcare bills were crippling us anyway.
But despite the spreadsheets and good intentions we didn't really live within our means and ate into savings. Mrs Zep is now working again and we've downsized our mortgage by moving to a cheaper property area. Much happier now although this is due to a range of different life changes.
So, I wouldn't link happiness with income completely and as long as you have good financial controls and aren't too materialistic it can work perfectly well.
Depends on your personal circumstances. If your house is paid for, no kids, car payments or other large outgoings then you could live alright on it. If you have a big mortgage, 2 lots of car payments and kids approaching university then forget it.
Also depends on your current circumstances. If you're on 100K currently and used to flying off for long weekends when you fancy and living the good life then it would be a big shock. If you're earning 35K, working your arse off and so on then it's probably not so attractive.
Also depends on your current circumstances. If you're on 100K currently and used to flying off for long weekends when you fancy and living the good life then it would be a big shock. If you're earning 35K, working your arse off and so on then it's probably not so attractive.
im living easily on 23.5k have money left over every month if I am careful (ie dont drop a couple of 100 on clothes/holiday/computer type stuff)
It helps that my car is fully paid for, I live close to work and am a tight fisted yorkshire man who likes the thrill of a bargain.
ohh and my take home every month is nearer £1700
It helps that my car is fully paid for, I live close to work and am a tight fisted yorkshire man who likes the thrill of a bargain.
ohh and my take home every month is nearer £1700
CoolHands said:
Mortgage is....I dunno. Maybe 950 a month? Small loan I'm paying back 150 a month. What else is there? food...bills etc probably 300 a month on average
Seems doable
Based on your estimation of £1585 that only leaves you with £185 spare a month, which doesn’t sound like much to me. It certainly doesn’t leave you with much spare for unexpected emergencies or anything to treat yourself with.Seems doable
Sounds odd not to know how much your monthly mortgage payments are, it’s probably your biggest outgoing. Is that estimate of £950 based on a fixed rate, variable rate or other? A change in the interest rate could seriously eat into your spare £185.
RedWhiteMonkey said:
Based on your estimation of £1585 that only leaves you with £185 spare a month, which doesn’t sound like much to me. It certainly doesn’t leave you with much spare for unexpected emergencies or anything to treat yourself with.
Sounds odd not to know how much your monthly mortgage payments are, it’s probably your biggest outgoing. Is that estimate of £950 based on a fixed rate, variable rate or other? A change in the interest rate could seriously eat into your spare £185.
But with a working partner he should be alright.Sounds odd not to know how much your monthly mortgage payments are, it’s probably your biggest outgoing. Is that estimate of £950 based on a fixed rate, variable rate or other? A change in the interest rate could seriously eat into your spare £185.
RedWhiteMonkey said:
Sounds odd not to know how much your monthly mortgage payments are, it’s probably your biggest outgoing. Is that estimate of £950 based on a fixed rate, variable rate or other? A change in the interest rate could seriously eat into your spare £185.
errr that's a bit of a guess but it's somewhere round there. TBH I don't take much notice of any of my outgoings. discounted variable rate for 2 years ISTR;we re-mortgaged last year to get a better rate.don't forget my missus works so it's not just one wage.
As said its going to be heavily dependant on you.
For example, that is about the minimum I need to earn a month to cover ALL my bills, food, mortgage, virgin, 2 x mobiles ect ect for a family of 4 living in the south east. However I have very little debt (mortgage of less then a 100k and a 5k CC) so some one else with the same size family may not be able to manage on that.
That said I would have thought if your single and don't already have massive debts then it would be more then enough if you were careful in your choice of where to live (rent, mortgage likely being the biggest drain)
For example, that is about the minimum I need to earn a month to cover ALL my bills, food, mortgage, virgin, 2 x mobiles ect ect for a family of 4 living in the south east. However I have very little debt (mortgage of less then a 100k and a 5k CC) so some one else with the same size family may not be able to manage on that.
That said I would have thought if your single and don't already have massive debts then it would be more then enough if you were careful in your choice of where to live (rent, mortgage likely being the biggest drain)
Edited by KrazyIvan on Wednesday 18th July 11:16
CoolHands said:
errr that's a bit of a guess but it's somewhere round there. TBH I don't take much notice of any of my outgoings. discounted variable rate for 2 years ISTR;we re-mortgaged last year to get a better rate.
don't forget my missus works so it's not just one wage.
I'm no Martin Lewis but you probably need to pay more attention to your outgoings if you are going to take a pay cut. Nothing wrong with going for less pay, especially if it is for a job that you really want, but you need to make sure you don't financially cripple yourself in doing so (especially if you have a kid to support).don't forget my missus works so it's not just one wage.
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