Need Advice on Budget

Hi All: I mentioned this subject on the Expat board but thought it might be useful to post on this board as well since it pertains specifically to money.

Ok, here goes...I will be transferring with my company sometime between March and May 2010 and until DH finds a job we will be living on my salary. We are looking at the SW area of London, specifically Wimbledon, Colliers Wood, Merton, Raynes Park areas, nothing fancy just a 2 bed flat with garden within a 1/2 mile of the tube/station. I have listed below what our initial budget will look like until DH finds a job, then below I've listed our budget once he begins working. Will you please review those budgets and advise if they are realistic to living in the above-mentioned areas? I would very much appreciate your help!

Initial Budget (on 2200 GBP after taxes):

Rent -- 1000
Gas/Electric -- 100
Water -- 20
Cable, Web Landline -- 65
Cell Phone -- 30
Council Tax -- 60 (Wandsworth borough?)
Commute   -- 120
Food -- 300
Spending (for 2) -- 300
Miscellaneous -- 150

Total= 2145 GBP

Budget once DH finds Work (3300 GBP after taxes at a minimum):

Rent -- 1000
Gas/Electric -- 100
Water -- 20
Cable, Web Landline -- 65
Cell Phone -- 50 (for 2 ppl)
Council Tax -- 60
Commute   -- 220
Food -- 300
Daycare -- 150 (after school care for 2 hrs)
Spending (for 2) -- 300
Miscellaneous -- 150

Total = 2415 GBP
Savings -- Remainder of money -- 885 GBP?

*I would like to mention that we have a 4 yr DS and do not go out to clubs or partying per se. We go to dinner twice a month, maybe to the pub twice as well in a month.

Thanks!

Hi Kdhgreen,

On the initial look of those figures they look to be a good basis to start from. They do need some tweaking however and I'll put forward some of the things I mean.

I'm going to concentrate on your salary as a start point.

1. Gas/electric/Water bills will vary month to month and there should be a noticeable reduction during summer (haha!) months due to not requiring as much heat. £100 seems a good base for a winter month for both. I'd say you'd save some of that over the summer.
2. Cellphone will also vary, one month you may not use it much, another you may well go over your allowance and need to pay the extra. I'd double the figure you've put in once your better half needs/has one.
3. Council tax seems very low - Winmbledon & SW london area has some desirable areas and the price tages to match. You won't qualify (I believe) for the single persons discount. I'd push that estimate up to around £120/month.
4. Travelling - yes you've included the commute - you'll need to add in some more for shopping trips and days out as well.
5. Please allocate some money for Contents insurance for your belongings. This can vary quite a bit depending on what and how much you insure. As a starting point, I'd say about £30-40/month. You may need things like specialist insurance as well, life insurance policies etc.
6. I like the £300 and the £150 misc spending catagory. You can allocate some of that to the elements I've mentioned above.
7. Within Your salary, I'd put forward you'd probably be able to cover all basics and an element of discretionary spending etc
8 By adding your husbands salary, you can adjust acordingly. for this example's feedback, that funding could be your emergency stash fund for any unexpected occurances, also can be invested wisely by opening up savings accounts and pension funds and the like for you both as well as agreeing say an amount for 'splurge' spending every now and again - see Christmas being just round the corner!

I don't know of course what your levels of debt are currently, and or ow you spend and go for leisure activities etc, so the reaminder might well be towards specific interests etc.

Overall, £3300 after taxes for both of you is plenty comfortable in the area you are looking at. I'd daresay, Wimbledon may cost a littlemore in rent per month though.

Cheers, DtM! West London & Slough UK!

Thanks DtM for your thorough response! I originally had 120GBP for council tax but another member said that the borough I was looking to rent in had very cheap council taxes, which is why I lowered to 60. I will add the additional flat insurance to my budget. Regarding debt, we are very lucky in that we do not have any at all, so we are good on that front. And as for going out to dinner or a pub, I can't imagine going more than twice a month to each (40 for 2 ppl for dinner (?)/20 for 4 drinks in the pub = 120 GBP pm). Can you think of anything else I may have overlooked?

Thanks again

Thanks DtM for your thorough response! I originally had 120GBP for council tax but another member said that the borough I was looking to rent in had very cheap council taxes, which is why I lowered to 60.

Council tax is tricky as it is calculated on the value of each individual house in 1991, which means that different houses/flats on the same road can pay different amounts of council tax:

Band   Value (of property in 1991)    Average (council tax per year)
A          up to £40,000                     £845
B          £40,001 to £52,000             £986
C          £52,001 to £68,000             £1,127
D          £68,001 to £88,000             £1,268
E          £88,001 to £120,000            £1,550
F          £120,001 to £160,000          £1,832
G          £160,001 to £320,000          £2,113
H          £320,001 and above            £2,536

As an example, my flat in Bristol was in band D, so we were paying approx. £1,200 per year, but the flat beneath ours in the same building was in band E, so they were paying around £1,500. The flats at number 1 further down our road were band C, so they were paying around £1,100, but number 9 was in band G... about £2,500 a year!

Hiya,

A couple thoughts...

You may be able to get a combination tv/internet/phone deal for 30 or 40 quid. Also don't forget TV license, I think that's like 140 a year?

But, if your area is wired for cable internet (check Virgin) you could skip getting a landline. We have excellent broadband internet for 20/month.

Council tax is tricky. We pay 120/month for a small 1BR in Lambeth, but it's true that Wandsworth is a lot cheaper. 60 for a 2BR seems really cheap though, especially if it's near a tube.

Rents are consistently going up all over London. You might want to budget a bit more for rent in the spring. Right now a decent 2BR in Brixton is 900-1000 and the areas you are looking at (especially if you want a garden, tube access) are likely to be more. Also, will you be using an agency to find a flat? That may cost you a couple hundred pounds in fees.

Good luck!!

Thanks Jenx, I will bear what you said in mind. What is your opinion of Brixton? Raynes Park?

Off Topic, but if you make it as far as Raynes Park, we'll practically be neighbours

I think Dennis should be my personal financial advisor. 

I'll let you know GrumpyJet if we wind up in your area! We'll be in the area in early February to begin scouting neighborhoods. How do you like raynes park area?

Thanks Jenx, I will bear what you said in mind. What is your opinion of Brixton? Raynes Park?

I'm afraid I don't know Raynes Park. I love Brixton! But, some people don't. It's true that later at night, Brixton Road can have pockets of dodginess around the statin (which is true of virtually any area in London) but 90 percent of Brixton (and going a bit further south into Herne Hill and Brixton Hill) is quiet, safe and really nice. I'm actually expecting a baby in the spring and I'm happy to have a kid in this area because:

There's a huge, very nice park, Brockwell Park, with lots of stuff for kids (including a swimming pool and kids wading pool). There's also a big recreation centre with lots of kids stuff.

There are loads of kids in Brixton so there are lots of playgroups and activities in the area. The local cinema, the Ritzy (which is a nice theatre/cafe) has baby/kid screenings during the day.

There is a real community feel here. Lots of independent stores and coffee shops, a big market where you can get great food and cheap goods, lots of free family events and stuff like that. The town centre has all the standard high street chains you would need (even a Body Shop

It's very diverse, which I think makes it a bit easier to acclimate to being in a different country, also you'll find food and music and events going on from all over the place, which I think is more fun.
On the tube, 10 minutes to central London. In the catchment area for one of the best hospitals in the UK, St Thomas. I'm afraid I don't know about the schools though.

The centre of Brixton is a bit busy but you may want to check out Brixton Hill and Herne Hill, especially near the park. There are loads of old rowhouses with gardens.

Okay sorry to ramble, I just try to spread the brixton gospel when I can
Good luck with the move!

Thanks Jenx, I will add Brixton to our list. You touched on many amenities that we value and if Brixton has them then we will def look into it. The only other concern are schools which I will look into as well.

I have a mate who's lived in Brixton for many years, but is a bit disillusioned lately with a spate of muggings in her street. I think that's VERY unusual though.


I don't live in Raynes Park, but in Epsom which is about 5 miles away (15 minutes by car or train). Raynes Park is a very nice area, close to Kingston, on the mainline into Waterloo. Think suburbia

You really can get mugged anywhere in London. I only know a couple people who have been but they were all in the "nicer" areas (Chelsea, Highgate). Most of my friends live in and around Brixton and no one has ever been mugged. Also, some of the London suburbs are really dodgy (not Raynes Park, it sounds like, but basically you can't assume suburbs are safer here).

I think it just depends what you're used to. I personally haven't taken to any of the suburb-type places I've been around here, in part because I don't drive, I hate long commutes, and my experience taking the train (instead of the tube) was pretty negative. They also feel less "London-ish" to me. But that's just me, obviously loads of people like it there.

But back to your original concern, if you are looking at Zone 3 or 4 in southwest london you should bump up your commuting costs a bit (I think Raynes Park is zone 4). Right now you have 120 but that's only up to zone 2.

Raynes Park is ok but suburban.  Other than the mainline train station, you have to go into Wimbledon for almost anything.  Raynes Park is really only a 10 minute bus ride away from Wimbledon, so that isn't too bad.  You do still get some Wimbledon prices though.  It isn't significantly cheaper.  And Raynes Park is certainly not Wandsworth, so don't expect half price council tax prices.

I think Dennis should be my personal financial advisor. 

Ha! No problem, at a UKY special discounted rate of course!

Cheers! DtM! West London & Slough UK!