Fresh graduates saving money from their income

I know it can vary from one person to another due to individual circumstances, such as being single or couple, type of job, location, lifestyle, etc.

However, just for making a rough estimation, any idea how much money can a fresh graduate save from his/her starting salary of £20,000 (for instance) per annum?

Conditions:
Maritial Status: Single
Lifestyle: Moderate (tend to save money whenever possible)
Location: London or Edinburgh

Reply 1

<A-S-H-I-Q-U-E>

Hmm.. how much income tax one needs to pay per year?

Reply 2

Cortez

<A-S-H-I-Q-U-E>

Hmm.. how much income tax one needs to pay per year?

Too much .. about £3300 as a rough calculation.

First £5000-ish is tax free, the rest is 22% (i think) upto something like £30k.

Reply 3

Barny

20k a year, single and in london? I'd be surprised if you could afford to get to work, eat, and rent/buy a house on that money, nevermind live a "moderate" lifestyle.

Reply 4

<A-S-H-I-Q-U-E>

Cortez

Too much .. about £3300 as a rough calculation.

First £5000-ish is tax free, the rest is 22% (i think) upto something like £30k.

I see.. thanks for the info.

Don't you think one can spend around £6000 (outside London) per year for living expense?

Reply 5

<A-S-H-I-Q-U-E>

x.narb.x

20k a year, single and in london? I'd be surprised if you could afford to get to work, eat, and rent/buy a house on that money, nevermind live a "moderate" lifestyle.

How about sharing an apartment just like uni students? I think it can save one a lot of ££ than renting a house.

Reply 6

tortured

If it was me, I could probably save £6000 and live quite comfortably on the rest (for rent, food, etc). As for down south... I imagine you'd have trouble saving anything at all :/

Reply 7

Brown Patrick Bateman

x.narb.x

20k a year, single and in london? I'd be surprised if you could afford to get to work, eat, and rent/buy a house on that money, nevermind live a "moderate" lifestyle.

Rubbish. I'm a single Londoner, rent in the Square Mile, have a relatively lavish lifestyle and spend on average £1.2k a month - on £20k you could easily save £200-400 per month; more than £500 if you avoid the expensive clubs/restaurants.

Reply 8

alastair

Are you suggesting you could save £200-£400 on top of spending £1.2k per month or that someone could spend £800 pm in London? Take home salary from £20k is £1276pm.

Reply 9

Brown Patrick Bateman

Cut £1.2k down to £1k by avoiding a couple of expensive nights out and yeah. And it's possible to get by in London spending £800pm, if you rent shared accommodation in zone 2 etc. I have friends here on £15-18k gross and they're doing fine.

Reply 10

Barny

I was basing that on buying/renting your own property Chassez, obviously if you share accomodation it'll be alot cheaper.

If you buy your own property then £1250 probably wouldn't even cover the mortgage, council tax, and bills, hence my comment..

Reply 11

Brown Patrick Bateman

Sure. But next to no graduates (including those on £40k+ salaries) in London will be buying until a few years down the line, or renting an entire property to themselves. Norm is to rent with 1-2 others at £100-150/wk each.