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How much is in your bank account...?
- Thread starter acearchie
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Always save as much as you can. Never buy on credit. When you do have to buy on credit get a mortgage that lets you make over payments and pay it of as quickly as you can. As you live in the UK try and invest in property as early as you can. I bought my first flat in London when I was 26 and have never looked back. Been mortgage free for 6 years now and have about 18 months salary in isas and savings accounts.
Haha, of course. It's a quite small loan by Norwegian standards, actually.
But hey, if it was in dollars, I'd be rich. I wouldn't mind.
I try to keep $10k available, and I put any excess into paying off my mortgage. Since I've "overpaid" by doing this, I'm able to pull the extra money back out of the mortgage if I have an emergency (but so far I haven't needed to do this).
Not much! Just about to start a new job and with rent along with electricity and gas bill just come out, I'm pretty skint. I also only graduated last year, so currently paying off all my student debts too. Looking forward to getting into the pay role cycle in this new job and planning my finances.
Well, that's the plan anyway. I've always dreamed of using a spreadsheet and assigning money to cover expenses and determine a surplus so the month goes smoothly with enough for nice purchases and rainy days.
Well, that's the plan anyway. I've always dreamed of using a spreadsheet and assigning money to cover expenses and determine a surplus so the month goes smoothly with enough for nice purchases and rainy days.
My wife and I are just starting out but we have about 3 months of expenses saved up. probably closer to 6 months if you count possible unemployment.
As others have said try to save a good amount each month and avoid credit unless its for an investment or absolutely necessary. This especially applies to student loans... staring 75k in student loans in the eye is hard to swallow.
As others have said try to save a good amount each month and avoid credit unless its for an investment or absolutely necessary. This especially applies to student loans... staring 75k in student loans in the eye is hard to swallow.
my account balance would always be on the decrease too back when i was a student. i loved going to school but being poor all the time really sucked. now that i'm working and have zero debt my balance is continuously on the rise (though it will take a nose dive once the new imacs come out!!).
Its an impossible question to answer.
There are highly-paid executives and celebrities who keep virtually zero cash in checking or savings accounts, and live "paycheck to paycheck" just fine. There are retirees on fixed incomes with hundreds of thousands in their local bank, but who are in very real danger of going bankrupt at some point in the future. It all depends on your circumstances.
I think the OP is really asking a different question: How much do I need to move to London, and with my newly acquired education, embark on a career and life there?
The answer to THAT question depends on how badly you want to make the move. Plenty of immigrants and young people move to London with far, far less than £6000. But they probably are willing to share a flat in a less-desirable neighborhood; make do with furniture bought from thrift stores; and live on brown rice and hummus six days a week.
If the OP wants to move to London, my advice to him would be this: Get a job there first. Maybe stay with friends while you are looking, but once you accept a job and start working (even if its not your "dream" job) move. £6000 will be more than enough to pay the security deposit on a flat; and to buy the basics of pots, pans, kettles, towels, etc. to get you started. Make sure your monthly rent doesn't eat up too much of your monthly income. In the US, the general number is about 40% at a maximum, but I understand British (London especially) housing prices make this problematic - figure no more than 60%. If your monthly income (after tax) is £1200, then the most you can spend on rent is £720. That will leave you about £400 for food, entertainment, and transportation. Not a lot - but definitely do-able. Hopefully you will have about £4000 left over after paying your flat-deposit and kitting it out. This isn't a huge reserve for emergencies - but its probably enough to handle most things a single-person is likely to run into. Just remember not to libel Rupert Murdoch, because you almost certainly won't be able to pay the legal bills out of your emergency fund.
There are highly-paid executives and celebrities who keep virtually zero cash in checking or savings accounts, and live "paycheck to paycheck" just fine. There are retirees on fixed incomes with hundreds of thousands in their local bank, but who are in very real danger of going bankrupt at some point in the future. It all depends on your circumstances.
I think the OP is really asking a different question: How much do I need to move to London, and with my newly acquired education, embark on a career and life there?
The answer to THAT question depends on how badly you want to make the move. Plenty of immigrants and young people move to London with far, far less than £6000. But they probably are willing to share a flat in a less-desirable neighborhood; make do with furniture bought from thrift stores; and live on brown rice and hummus six days a week.
If the OP wants to move to London, my advice to him would be this: Get a job there first. Maybe stay with friends while you are looking, but once you accept a job and start working (even if its not your "dream" job) move. £6000 will be more than enough to pay the security deposit on a flat; and to buy the basics of pots, pans, kettles, towels, etc. to get you started. Make sure your monthly rent doesn't eat up too much of your monthly income. In the US, the general number is about 40% at a maximum, but I understand British (London especially) housing prices make this problematic - figure no more than 60%. If your monthly income (after tax) is £1200, then the most you can spend on rent is £720. That will leave you about £400 for food, entertainment, and transportation. Not a lot - but definitely do-able. Hopefully you will have about £4000 left over after paying your flat-deposit and kitting it out. This isn't a huge reserve for emergencies - but its probably enough to handle most things a single-person is likely to run into. Just remember not to libel Rupert Murdoch, because you almost certainly won't be able to pay the legal bills out of your emergency fund.
Thanks for the tips. Although technically this doesn't relate to me (I already live in London) it is useful information for when I really start to get my own place.
I think when I do though I will attempt to try and move in with friends to keep the costs down.
£400 disposable income per month is a little more than I am living on at the moment and it's perfectly fine so I wouldn't see issues with that.
Thanks everyone for sharing as it has educated me in different circumstances and sort of got me on the way to not be frivolous. A lot of my friends are getting money for the first time and living in overdrafts (1500)+ etc. which seems fine when you're a student and have 0% interest but as soon as you graduate the banks aren't so friendly anymore. A lot of my friends think it's stupid that sometimes I watch how much I spend and sometimes don't go out but my viewpoint is that if I am careful now hopefully it will pay off in the future.
Currently £260 - should increase a bit on Friday as it's pay day!
(then will it'll get shafted on the 1st when my mortgage comes out)
(then will it'll get shafted on the 1st when my mortgage comes out)
I currently have enough for two and a half months of rent and I have no job.
I should be getting a call telling me I have been hired tomorrow, though
I should be getting a call telling me I have been hired tomorrow, though
Depends on which bank account you look at .
I have one that has ~$30.
I have another one with a lot more than that.
Basically, I save. I'm entering university this fall, and have one semester's complete expenses saved up.
.I have one that has ~$30.
I have another one with a lot more than that.
Basically, I save. I'm entering university this fall, and have one semester's complete expenses saved up.
Not much. A few hundred at any given time as "fun" money. I don't keep much in my main checking/savings. Once my paycheck hits, it's transferred to other accounts.
I do have several savings accounts at banks that each hold a few thousand dollars in case of emergencies.
I do have several savings accounts at banks that each hold a few thousand dollars in case of emergencies.
I agree, but telling a big bank to shove it and joining a CU is great. Did it a few months ago and haven't looked back.
About $400 which has to last me through July*. Given I needed my savings to last for 3 years of undergrad and 34/36th of the way through I still have money left, I think I'm doing pretty well! (plus some loans)
*technically it's a lot more, but most of it goes to bills. I have $400 for discresionary spending
*technically it's a lot more, but most of it goes to bills. I have $400 for discresionary spending
Ok I am going to say the amount to keep in your bank account is relative.
As a good rule of thumb you want 3-6 months expenses in the account. Now that amount can really very. Some people have expenses at 4k per month. Others have 2k per month.
So now in savings you can take those 1 time hits and absorb them (say car breaks down) or if you loss your job it buys you time.
I had 6 months in my account. Lost my job and that money ended up getting spent on paying for degree number 2.
As a good rule of thumb you want 3-6 months expenses in the account. Now that amount can really very. Some people have expenses at 4k per month. Others have 2k per month.
So now in savings you can take those 1 time hits and absorb them (say car breaks down) or if you loss your job it buys you time.
I had 6 months in my account. Lost my job and that money ended up getting spent on paying for degree number 2.
If you truly believe that then you've never been debt free.
Trust me, if you've ever had the *****tain on the existence of time known as TCF Bank, you'd know how great it feels to get them and every one of their tentacles tied to all your online accounts cut completely out of your life.
Google TCF, you'll see what a horrid excuse for a bank they are. Nothing but negative reviews as far as the eye can see. Problem is, switching banks is such a hassle most people don't get around to it.
Going through the extensive process of switching banks feels GREAT when it's done; it's a time consuming process when you stop to think about how many accounts your bank is linked to and how much work and time it takes to completely eradicate a specific bank from your life.
