Jump to content
House Price Crash Forum
jpidding

How Do People Survive On £16k?

Recommended Posts

Been tracking all my expenses for the month of Oct.

Those that I consider essential boil down as follows:

Food: £115 (been running down the stocks, so lower than usual)

Rent: £600 (includes ALL bills inc council tax, heating, gas, lighting)

Phone: £40

Petrol: £88

Clothes: £30

Gifts: £30 (Xmas & birthdays spread over the year)

Car: £135 (includes maintenance, tax, ins, but not depreciation)

Misc: £10 (bucket & mop this month)

Total: £1048.

Now according to....

http://www.charterhouseplc.com/limited-com...calculator.html

...you have to earn £308 a week gross (or £16k a year) to net £1048 a month.

There is not TV licence here (let alone Sky), no beer, no holidays, no nothing other than living. I am a single bloke renting an apartment.

Jesus, on min wage the gross would only be 2/3 of this!

How are folk living???

James.

Share this post


Link to post
Share on other sites

Been tracking all my expenses for the month of Oct.

Those that I consider essential boil down as follows:

Food: £115 (been running down the stocks, so lower than usual)

Rent: £600 (includes ALL bills inc council tax, heating, gas, lighting)

Phone: £40

Petrol: £88

Clothes: £30

Gifts: £30 (Xmas & birthdays spread over the year)

Car: £135 (includes maintenance, tax, ins, but not depreciation)

Misc: £10 (bucket & mop this month)

Total: £1048.

Now according to....

http://www.charterhouseplc.com/limited-com...calculator.html

...you have to earn £308 a week gross (or £16k a year) to net £1048 a month.

There is not TV licence here (let alone Sky), no beer, no holidays, no nothing other than living. I am a single bloke renting an apartment.

Jesus, on min wage the gross would only be 2/3 of this!

How are folk living???

James.

Sell the car and buy a bus pass (£11 per week in London), move into shared accommodation where you're paying £400 per month instead of £600 (and close enough to public transport that you can live without the car), and sharing the phone line. That saves around £400 per month. No, a single person on minimum wage can't really afford to live alone.

Share this post


Link to post
Share on other sites

Credit.

With minimum payments on a few credit cards you can live for a while...until it all catches up with you...you can't get any more credit cards to sustain your living expenses but the existing credit cards still have to be paid off.

Then it all falls down.

To be honest I think a lot of people are either living at home, have two incomes or house/flat share. Still..I agree the figures don't add up.

Share this post


Link to post
Share on other sites

Nominal UK 2004 GDP £1,164,439,000,000

UK Black Economy 2004 = 11% of GDP

That's £128,088,290,000

£128 (Billion?? :unsure: - I'm not used to working with number that high) untaxed - that buys the plasma's!

(For comparison Italy's Black economy = 32%GDP :o )

Share this post


Link to post
Share on other sites
How are folk living???

James.

you either

A. cutback on everything but dole essentials,

or you lend for a while making it look like its ok,

and then go back to point a.

16k in the uk is a slave wage.

you can do nothing but service your self and your job.

you exist to oil the wheels for those above, who throw you a fish in the form of affordable clothes or an i-pod every now and again.

at least you have your O2 texts to look forward to for the next 20 years.

not much else has been provided for you.

no council homes, no infrastructure, pay-per-learn education and 24 hour drinking and gambling.

plus rising poll tax to pay for a bunch of boomers in social nursery wanting extortionate prices for the property they collectivley own to fuel poncy retirements to spain paid for by the sweat of an initial laundry worker on £7ph.

the young are blind muppets to the crafty 40-50 somthing swindlers above..

Share this post


Link to post
Share on other sites

Credit.

With minimum payments on a few credit cards you can live for a while...until it all catches up with you...you can't get any more credit cards to sustain your living expenses but the existing credit cards still have to be paid off.

Then it all falls down.

To be honest I think a lot of people are either living at home, have two incomes or house/flat share. Still..I agree the figures don't add up.

Funny thing is, I gave a lift to a bloke coming back from a skydiving drop zone south of Madrid (no, I'm not on minimal wage!!!). We discussed various things, but he told me he had just trained to be a driving instructor and was about to double his salary. He was in his 40's had a family of 4 and worked in an office (I guess a reasonably skilled job, but I dont recall what field). I was stunned that a driving instructor would earn so much. Turns out he was only on £18k in his office job....AND SUPPORTING A FAMILY OF 4!!! Only caveat was that he lived in the west country. Would love to know how he got the money together to go to Spain to try skydiving!!!???

But £18k??? Think his wife brought home a few quid sewing curtains or something, but only pin money.

Thank god for well paid contracting work!

Right, I'm off to play squash, catch you all tomorrow HPC friends.

James.

Share this post


Link to post
Share on other sites

Been tracking all my expenses for the month of Oct.

Those that I consider essential boil down as follows:

Food: £115 (been running down the stocks, so lower than usual)

Rent: £600 (includes ALL bills inc council tax, heating, gas, lighting)

Phone: £40

Petrol: £88

Clothes: £30

Gifts: £30 (Xmas & birthdays spread over the year)

Car: £135 (includes maintenance, tax, ins, but not depreciation)

Misc: £10 (bucket & mop this month)

Total: £1048.

Now according to....

http://www.charterhouseplc.com/limited-com...calculator.html

...you have to earn £308 a week gross (or £16k a year) to net £1048 a month.

There is not TV licence here (let alone Sky), no beer, no holidays, no nothing other than living. I am a single bloke renting an apartment.

Jesus, on min wage the gross would only be 2/3 of this!

How are folk living???

James.

Ive got a friends on about 16K basic, wife, new baby, 3 bed terrace (bought 8 years ago), car , he manages by working as much overtime as possible.

Share this post


Link to post
Share on other sites

Try living in Cumbria, average salary is around 16k, skilled workers are not on much more and often have to travel to get better jobs, and locals are being forced out of the housing market by people buying holiday homes so people at the bottom end of the scale like locals who work in tourism or farming have no chance of buying a home and are leaving Cumbria in droves

Share this post


Link to post
Share on other sites

Two things stick out here:

£88 per month on petrol - what kind of car and mileage are you doing?

Suggest small engined diesel would halve that easily - not such a fanny

magnet though.

£30 per month ON CLOTHES!!!!

£360 per year - that is a small fortune.

Shop in Primark - be less fashionable.

ABB

Share this post


Link to post
Share on other sites
£30 per month ON CLOTHES!!!!

£360 per year - that is a small fortune.

Shop in Primark - be less fashionable.

yeah thats right boomer.

work 60 hours a week and live life like your unemployed picking through charity shops and eating tinned peas.

selfish i think the word is for YOUR generation,.

Share this post


Link to post
Share on other sites

Except with tax credit, housing benefit, CSA child support, etc. to make up the shortfall.

Question

On a low wage can you get tax credits for anything. If single working and on your own, can you get a credit for your rent if the numbers don't add up. If you rent a flat in the southeast for say £450 per/month and only earn £16000 per year you can't really afford it, so can you claim.

Share this post


Link to post
Share on other sites

Food: £115 (been running down the stocks, so lower than usual)

Rent: £600 (includes ALL bills inc council tax, heating, gas, lighting)

Phone: £40

Petrol: £88

Clothes: £30

Gifts: £30 (Xmas & birthdays spread over the year)

Car: £135 (includes maintenance, tax, ins, but not depreciation)

Misc: £10 (bucket & mop this month)

Total: £1048.

Woah what the hell do you eat

my bill:

Food: £60

Petrol: £30 (300 miles)

Clothes £10 (average spread over year)

Gifts £33 (Xmas & birthdays spread over the year)

Car Tax Ins : £50

bills £70

if you include rent @ £300

My total equals = £550

And I share with GF, so true values (except Car) have been split 50:50

Leaving plenty of room for savings and Holidays etc (between two people)

Share this post


Link to post
Share on other sites

I've been told that as a rule of thumb, you should aim to save a percentage of your salary equivalent to half your age when you start saving for your pension(stakeholder or whatever). So, if you're 30 when you start paying into a pension you'll need to pay in 15% of your salary every month. For someone on 16k that is £200 per month which is just impossible really. This expenditure wasn't necessary for our parent's generation. I'm surprised more isn't made of the tension between the generations. The boomers have much to answer for, ramping up house prices and apparently happy to crush younger workers with a crippling welfare burden and if it's going to bankrupt the state a generation hence, well, as long as they still get the cheques coming till they're dead, it's fine by them.

Share this post


Link to post
Share on other sites

I've been told that as a rule of thumb, you should aim to save a percentage of your salary equivalent to half your age when you start saving for your pension(stakeholder or whatever). So, if you're 30 when you start paying into a pension you'll need to pay in 15% of your salary every month. For someone on 16k that is £200 per month which is just impossible really. This expenditure wasn't necessary for our parent's generation. I'm surprised more isn't made of the tension between the generations. The boomers have much to answer for, ramping up house prices and apparently happy to crush younger workers with a crippling welfare burden and if it's going to bankrupt the state a generation hence, well, as long as they still get the cheques coming till they're dead, it's fine by them.

If you're on £16K and expecting to be earning that kind of money for your entire working life, there's not really much point saving anything towards a pension. You won't accumulate enough to get above the means-test level, so you'll only be fractionally better off.

Share this post


Link to post
Share on other sites

I totally agree people just can't afford to live anymore and I'm not sure where its going to end. I think house prices / rent and council tax are the biggest offenders.

Income tax need to be looked at for those under 12k per year as collecting 25% of 8k seems mean to me when people pay themselves 1.2 billion and don't pay a penny tax.

I really do wonder where all the money goes to be honest. They talk about the NHS and Schools and they need more money but the state gets more cash now than ever before. I don't want people to start getting political and blaming Labour as this goes much further then Tory or Labour...this is a nation wide rip off.

Think back when every local part had its own gardener and each area had a police station and cities were blessed with more than one hospital. This is only 25 years ago. Yes things and people cost more but think about how much tax gets paid.

Just look at the Taxes now

1. Road Tax

2. Parking fines

3. Speed Fines

4. Council Tax

5. Income Tax

6. Domestic Fuel Duty

7. Fuel Duty

8. Stamp Duty

9. Import Duties

10. Corp Tax

11. Just too many taxes to mention

12. Inherit Tax

13. Closure of Tax loopholes

Where is the money going

Maybe they are spending all our money on wars, certainly can't blame 1 million unemployed or a handful of benefit cheats.

I often think the Government blames those sectors of society with no voice to cover up what is really going on. The tories blamed single mothers, labour benefit cheats and anti social people.

What about the all the silly Oil Wars

Share this post


Link to post
Share on other sites

I often think the Government blames those sectors of society with no voice to cover up what is really going on. The tories blamed single mothers, labour benefit cheats and anti social people.

What about the all the silly Oil Wars

This has been argued before re: the cost of single parents etc. It is a drop in the ocean compared to what the government spend on other things.

The money is going on supporting an ever expanding public sector. Yes..I agree we need a public sector (I am not anti public sector) we need social workers, Doctors etc but why do we need so many? Why do we need the non-jobs such as 'five a day' health promoters etc. We need them because this country doesn't produce anything anymore and without the massive public sector we would have massive unemployment.

Share this post


Link to post
Share on other sites

Woah what the hell do you eat

my bill:

Food: £60

Petrol: £30 (300 miles)

Clothes £10 (average spread over year)

Gifts £33 (Xmas & birthdays spread over the year)

Car Tax Ins : £50

bills £70

if you include rent @ £300

My total equals = £550

And I share with GF, so true values (except Car) have been split 50:50

Leaving plenty of room for savings and Holidays etc (between two people)

You eat for £15 a week? I know that Tesco "Value" beans are 9p or something, but real food just cannot be had for £2 a day! Last night I bought the following:

Large pot salsa: £2

Grapes: £2

2 bananas: 45p

1kg chicken fillets: £5:60

Loaf of hi qual wholemeal bread: 70p

Pack of 3 mixed peppers: £1

Iceberg lettice: £1

Jar of mayo: £1

Washing up liquid: £1

I've rounded the numbers, but this came to over £15. I know that you can "live" without some of the above, but there are no TV dinners, no crisps, no beer, no desserts. Fruit I consider essential.

Also your car does not seem to need MOT or maintenance. Any variable cost calculation I've ever done for total running costs of a car normally mean adding in your fuel costs again for wear and tear. Depreciation is not included here either.

You spend £120 a year on clothes????????? One pair of jeans/decent trousers costs £50. I'm not saying it cant be done, but I'd struggle to not look like Worzel Gummage if I spent that.

I dont see a £100 a month council tax bill. Guess it's split with your bird, but thats still £50, isn't it?

I'm not ciricising your lifestyle, I just think your numbers are missing some things.

Yes, living with a partner saves a lot, but not everyone does this and its a wrong reason to live with someone just to save money. To get trapped into not being able to end a relationship cos you cant afford to isn't right.

Interesting topic I think.

James.

Share this post


Link to post
Share on other sites

You eat for £15 a week? I know that Tesco "Value" beans are 9p or something, but real food just cannot be had for £2 a day! Last night I bought the following:

Large pot salsa: £2

Grapes: £2

2 bananas: 45p

1kg chicken fillets: £5:60

Loaf of hi qual wholemeal bread: 70p

Pack of 3 mixed peppers: £1

Iceberg lettice: £1

Jar of mayo: £1

Washing up liquid: £1

I've rounded the numbers, but this came to over £15. I know that you can "live" without some of the above, but there are no TV dinners, no crisps, no beer, no desserts. Fruit I consider essential.

Also your car does not seem to need MOT or maintenance. Any variable cost calculation I've ever done for total running costs of a car normally mean adding in your fuel costs again for wear and tear. Depreciation is not included here either.

You spend £120 a year on clothes????????? One pair of jeans/decent trousers costs £50. I'm not saying it cant be done, but I'd struggle to not look like Worzel Gummage if I spent that.

I dont see a £100 a month council tax bill. Guess it's split with your bird, but thats still £50, isn't it?

I'm not ciricising your lifestyle, I just think your numbers are missing some things.

Yes, living with a partner saves a lot, but not everyone does this and its a wrong reason to live with someone just to save money. To get trapped into not being able to end a relationship cos you cant afford to isn't right.

Interesting topic I think.

James.

Top tip for those under 30........ Life is tough, get over it.

Modify your expectations now. You cannot expect to get your pension at 65. You cannot expect a job to last for life. Every government will continue to tax you more and more. Oh and houses, at best, will always be a struggle to afford over a loooooong mortgage period until paid off.

You are no longer a soppy teenage, you are an adult with adult responsibilities and liabilities until you are allowed to retire.

Oh and then you die.

Share this post


Link to post
Share on other sites
You cannot expect to get your pension at 65. You cannot expect a job to last for life. Every government will continue to tax you more and more. Oh and houses, at best, will always be a struggle to afford over a loooooong mortgage period until paid off.

You are no longer a soppy teenage, you are an adult with adult responsibilities and liabilities until you are allowed to retire.

Oh and then you die.

Wow, what do they call you down the pub, Cheery McCheerful? Might as well shoot myself now and get it over with.

Share this post


Link to post
Share on other sites

You eat for £15 a week?

I think sometimes people underestimate how much money they "waste" on food. Much of what is spent is for pure pleasure or convenience... which is perfectly fine if you have the inclination and money to do it. I probably average about £20 a week (on pure food items), but I have an expensive biscuit and muesli habit to support, so it could be lower if I needed to tighten the budget.

Andrew McP

Share this post


Link to post
Share on other sites

Wow, what do they call you down the pub, Cheery McCheerful? Might as well shoot myself now and get it over with.

There you go again - 'down the pub'. You've no right even to be thinking about drinking beer when there are mortgages to be paid and Primark clothes to be bought and Tesco value products to be liberated from the shelves.

Put your money towards a bike before the oil run outs (as it will before most of you reach the current retirement age).

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.