I'm out in the 'real world' soon- what things do I need to budget for?

Question

I'm leaving home (graduated!) and moving down to London. I have nooo experience with budgeting et al., what kind of things do I need to include in my budget?
I know the major ones, housing, phone, student loan repayments, etc., but what items may I have overlooked, those who know better than I?! :-)

Answer 1

If you think you've thought of everything believe me you'll have missed something!
The best way I found to get used to controlling my money was a "Bills" account as well as a normal bank account (all banks will be OK with you having this).
Work out the total costs of your bills add 15% of that total and transfer that amount every month into the bills account using a direct debit. Now that quantity has gone everything left in your normal account is yours to do with as you please, and you know you have enough money in your bills account to pay everything.

If your income allows I'd also set up a savings account and save a fixed amount every month, after a few months you'll be used to not having that money but it will pay for luxuries and the like when you feel you need them.

Oh yes don't become a beer hound, when I was 19 I was spending 400 pounds a month on beer! That was over 20 years ago and I still wince when I think about the money I wasted.

Good luck, be warned leaving home will be a stark realisation of just how much being your own boss and having no parental limits costs.

Oh yes be careful: areas of London are cesspits made that way by the people who live there.

Answer 2

You are gonna need a lot of money to be able to budget whilst living in London! Obviously rent/mortgage as you know, council tax, water rates, gas, electricity, food, socialising (how could you not when you're going to the party capital!). If you are renting then building insurance will be covered by the landlord but you will need contents insurance (shop around), TV license. I think that's most of it except for clothes etc. Getting or got a car? Think about those expenses too if so. Or get a bike it's cheaper!

Answer 3

The absolute most important thing that you should budget for is retirement. Start early...start now and maybe you won't have to work until you're 80. Especially starting early, you won't need to invest that much into it, rather than waiting until on down the road.

Answer 4

I can't speak on budgeting but be aware of the credit trap. It's too easy to walk up a shopping mall and run up thousands of pounds worth of credit card bills.

Answer 5

Hi,

Darling I've been in the real world since I'm 16

Nothing personal but think students have it too easy!!

Sad to hear abouts debts yeah, but you get all sorts of help!!

I've had my own place since 16 and completely loving it all yeah.

Thank-you

I don't mean to offend you,

Just stating what I believe on matter...

Answer 6

Groceries, paper products, pet food, gasoline, cleaning supplies, entertainment, haircuts, insurance, savings account, birthdays and holiday gifts, home furnishings, dental care, postage, clothing, vacation. That's the short list.

Best of luck. Excellent question.

Answer 7

I agree with 'oohbetty' but think that you should try and put some money also in a life insurance, and some money into an account for maintenance/repairs.

Answer 8

Yeah beer, ciggies, take aways and toilet roll...you can never have enough toilet roll.

Seriously...council tax, rent, utilities, Oyster card if you travel to work on public transport, food...if you are going to drive then petrol and possibly Congestion charge too, and then groceries.

Answer 9

everything you use inlcuding transport, plus unforseen expenses,

Answer 10

Don't for get lunch.