In a previous post I mentioned how I’d love to get our expenses, and by that I mean our essential living costs when we move, to under £1k per month – But is this possible here in the UK in our current home? At the moment we are paying £1,114.19 a month.
When looking a expenses the three main costs to reduce are housing, transportation and food. A reduction in all of these areas will have the most impact.
Housing:We live in a three bedroom detached Victorian house. We could live in a smaller house now, but with us moving in less than three years, our mortgage rate so low at the moment and the current housing market, it makes no sense. Changing the mortgage deal by moving and the £5k-£6k costs incurred in legal fees, would if we sold, negate any saving. We are also looking to keep this house to rent out, so eventually it should provide us with income.
Transportation:We are very lucky in that we don’t have any day to day running costs for cars - we pay extra tax for having them, but apart from that, incur minimal, if any, petrol costs. When I leave work, I will be car less and walking everywhere. You can get all essential items in our village.
Food: The big one. My food planning and spending has been all over the place this year. I think I’ve stuck to my monthly budget once and I’m averaging £260 a month when I look at my overall spend this year. This is one area that I can save money on.
If you look at the chart below you’ll see our current costs and the targets I’m setting for 2010.
Mortgage: this could increase, so we may need to look at a new deal
Council Tax and Water, are fixed however the bills could rise by 6% in 2010.
Gas/Electric: has already been reduced by £23 a month this year. I need to switch providers and look to more ways to cut usage. I’ve already stopped using the dishwasher and I’m waiting to see if this has an effect.
Phone: Too high. This should only cost us line rental -£11.15 a month + vat. Will unplug! Need line rental for broadband Internet, which hubbies work pay for.
Insurance: Life insurance, fixed payment to cover both of us, which we are happy with. For the contents and building insurance I will shop around for the best price when due next year.
| Standard Monthly Expenses | |||
| Housing Costs | Fixed | Target | |
| Mortgage | 542.34 | could increase | £542.34 |
| Council Tax | £104.94 | fixed | £104.94 |
| Water | £31.67 | fixed | £31.67 |
| Gas/Electric | £98.00 | reduce | £75.00 |
| Phone | £20.00 | reduce | £12.94 |
| Contents | £10.05 | reduce | £9.00 |
| Buildings | £13.99 | reduce | £12.00 |
| TV Licence | £12.12 | fixed | £12.12 |
| Life Ins | £21.08 | fixed | £21.08 |
| Food | £260.00 | reduce | £180.00 |
| Total: | £1,114.19 | £1,001.09 |
Have I missed anything? Would you do anything differently?
{photo credit: the shopping sherpa}
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Some years ago, when I used the term “car-less,” my wife informed me that the correct term was “car-free.”
Philip Brewer´s last blog ..Urgent: Check Your Withholdings
get rid of the TV???
mo´s last blog ..off and away to Suffolk
Great breakdown; I too would get rid of the TV; that’s a lot of money each month and you’re open to all that advertising making you want to buy more stuff!
Who is your house and contents insurance with? I need to look into this as ours is about £40 per month! Do you mind me asking how much your contents insurance is for? I wonder if it’s because we had a couple of claims; does that hike the next years quote?
I’m sure you could get your gas and elec down too. We have 4 bedrooms and only electricity and we’re paying £35 per month, but we use wood to heat during the winter. See if you can borrow an OWL monitor from your local library and see where you could cut back on fuel.
Mrs Green´s last blog ..Stop wasting water! 8 tips for water conservation
I wonder if you’ve taken the vat rise in January into consideration, I imagine it will only effect things like phone line rental and possibly part of your food budget. I have a nasty feeling that a lot of companies will use it as an excuse to put prices up yet again.
You don’t show internet costs? Hardly think £20 per month phone includes internet? So you could dispose of the TV and watch iplayer for BBC programmes
there again you could get rid of the internet too! 
and your wife is right Philip – car free sounds so much better!
Mo and mrs green; i think no tv would be a step too far for my sport obssessed husband. He’ll do anything apart from give that up!
we have gas, electric and windows that might as well not be there so any suggestions on reducing the bills would be great. Borrowing an OWL monitor sounds like a good idea thank you.
Contents with AA £120 per year –
£88 for contents £40,000 and
£32 for my engagement ring
no claims (fingers crossed)
Buildings also with AA £167 per year -
Are you on any kind of mortage deal ie tracker or fixed which may be coming to an end, if so I would expect a sharp rise, we are coming to the end of our tracker so I expect a rise of about 200.00 per month to our mortgage payments in the new year
Dreamer´s last blog ..No car
Hi dreamer; yes it comes to an end in June and we expect to pay out more…we’re thinking of taking in a lodger for a short time (family friend) to cover the cost.
Hi Laura
You beat me on all counts except gas/electric at £77.
TV is a bargain to be honest and it covers you for watch programmes on your computer.
Looking pretty good to me.
Lizzie
Lizzie´s last blog ..Rambling towards a long weekend
I’ll give AA a ring; thanks! That seems like a good price, so I’m wondering if claiming hikes things too much
Taking on a lodger is a really good idea.
This post has inspired me to work out my own expenses and take a good honest look at them. I’ve always put off doing it, so thank you for the inspiration and good luck with reducing your own costs.
Mrs Green´s last blog ..Seventh Generation million baby crawl
Hi Laura – why is your water fixed, do you pay rates? Would it be worth considering a meter? We’ve had a meter in our last two houses, and has been FAR cheaper than rates for us (even bearing in mind we have a hot tub which we fill about three a year).
Caroline´s last blog ..Shopping Spot Friday (A Bit Late … Again!)
It all looks pretty good to me! As long as you check you are getting the best deals every few months or so I doubt there is much more you could cut down on.
Shoestring´s last blog ..Running through treacle
Thanks Lizzie and Shoestring!
Caroline – we had a meter at pur previos house and it cost us a fortune so I’m really scared to make the switch :=)
Hi Laura,
TV news at dinner time are so depressive!
Received your message. Miriam has been sick and needed my attention but she´s much better now, TG. I´ve been offline for a few days so only now I´m catching up.
Things are going well for me. Currently, I´m enjoying 10 days vacations, iupi! I´ve been trying to organize and clean my flat but it´s not easy because I have so much clutter…
I quieted TV for good last February…. even removed the TV from my kitchen… Survived till now
I think I was a bit traumatized by the news loud sound at dinner and by S. sports fanaticism. Don´t miss it at all, lol.
I think I´ll write a similar post with my home´s services math.
It will be a pleasure to meet you again next time you come to Algarve. I work one day at weekends but I always know which days I´m working with one moth in advance. Just let me know when you´re coming… I´d love to invite you for dinner and, if you need, I have an extra bedroom.
Take care & see you soon.
Mizé´s last blog ..Investing on Comfort Versus Saving II
Oh.. by the way. I know your blog is “Award free” (and I respect it) but I passed you a “Friendship Award” in Night Clicks as a way to thank you your continued friendship.
xx
Mizé´s last blog ..Investing on Comfort Versus Saving II
That is brilliant that your expenses are so low! Well done you!!!
Frugal Trenches´s last blog ..Thankful Tuesday!