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Living with parents equivalent to earning another £17k Watch

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    I agree with you and tbh I've seen this in London...there are people who have jobs paying £50k plus who have parents living in commutable distance and go back to their parents for a while because they can save £2k plus a month, and it does help with a deposit.
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    (Original post by MagicNMedicine)
    I agree with you and tbh I've seen this in London...there are people who have jobs paying £50k plus who have parents living in commutable distance and go back to their parents for a while because they can save £2k plus a month, and it does help with a deposit.
    Hahah I'm looking to take advantage of my parents place for as long as I can
    Not even keen on moving out for Uni :/
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    (Original post by 122025278)
    Over a period of say 5 years, how much do you expect to spend on decorating, repairs, buying or replacing gadgets, furniture and applicances?
    I would be very surprised if I had to replace things like my fridge, freezer, washing machine, printer and tumble drier. May have to replace my sofa; but mine were only second hand and cost me about £130.
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    (Original post by z33)
    red gems *__*
    As has become apparent, he's red because he cant do maths
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    (Original post by Death Grips)
    As has become apparent, he's red because he cant do maths
    Savage but true
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    (Original post by 122025278)
    You don't get it, perhaps it's too nuanced for you.

    I'm talking about comparing someone who lives with a parent and works full time on the minumum wage earning £15k a year and the earnings that a person who has their own modest house (circa £130k), possible first time buyer, would need to have the same spending money as that person on the minimum wage living with mum.

    Imagine two people. They both earn say for example £30k a year. Assume for arguments sake none of them claim any benefits. Person A is single. Person B has 3 children and a partner, the partner does not work. Person B has much more outgoings than person A by virtue of the 3 people their salary supports. Person B would probably need to earn around £50k-£60k to have the same level of spending money as single person A with no dependents. This is what I'm getting at.
    Yes. It must be too 'nuanced' for me...


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    (Original post by 122025278)
    I think living with your parents is equivalent to earning AT LEAST another £17k (Assuming you're a basic rate tax payer, who pays national insurance contributions and contributes a small amount towards a pension scheme)

    Monthly costs:
    Rent/Mortgage: ~£450/~£600 (£600 based on a 25 year mortgage of £130k, less than half the national average price, at low interest rates)
    Council tax: £80 (About average for a property in the £130k region, with a working occupant who gets the 25% discount)
    Electricity and Gas: £60 (Probably less than most people would use if anything, especially in cold months)
    TV licence: £12
    Phone and Broadband: £18 line rental + £17 for call and internet package = £35
    Home insurance: £25 ( Bank would certainly insist on building insurance)
    Water: £25
    Maintenance: £50 (Covering appliances and fixtures and fittings)

    Total: £887 a month

    Do people agree with my costings?
    your figures are a little steep my parents let me off with £6k a year
    £225/month rent (1 full week as there's three of us)
    no council tax
    no maintenance
    water is about right-£25
    home insurance is about £10 a month but my separate policy is £100 a month for my average stock holding range
    phone and broadband is £5 a month (my share)
    tv licence £2 a month (my share)
    gas+electric is about £50 a month (my share)
    plus other services form the remainder
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    (Original post by Tiger Rag)
    I would be very surprised if I had to replace things like my fridge, freezer, washing machine, printer and tumble drier. May have to replace my sofa; but mine were only second hand and cost me about £130.
    I moved out completely nearly 3 years ago and my fridge/freezer/washing machine etc are still going strong. I think a couple of them were second hand too (I moved out in a bit of a hurry so money was an issue) My sofa needs replacing but meh, cost about 150. The only major thing that has broken was the living room tv but we were given that free anyway and that lasted 2 years so can't complain.
    I would gladly never see this money I would save living with my parents. I couldn't stand the idea of living at home again unless I desperately needed to, and even then it would only be until I saved the money to move out again.
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    (Original post by 122025278)
    How much you'd need to earn a year working full time on the minimum wage to have £887 a month after tax: £17000, meaning you'd need to earn £32k a year.
    887*12=10,644GBP post-tax

    which corresponds to about 11,100GBP pre-tax

    check it: http://www.moneysavingexpert.com/tax-calculator/

    Of course this is still a lot of money, but assumes your parents will let you do this indefinitely and that you can explain it to your girlfriend.
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    (Original post by Tw1x)
    I moved out completely nearly 3 years ago and my fridge/freezer/washing machine etc are still going strong. I think a couple of them were second hand too (I moved out in a bit of a hurry so money was an issue) My sofa needs replacing but meh, cost about 150. The only major thing that has broken was the living room tv but we were given that free anyway and that lasted 2 years so can't complain.
    I would gladly never see this money I would save living with my parents. I couldn't stand the idea of living at home again unless I desperately needed to, and even then it would only be until I saved the money to move out again.
    I'm trying to remember the last time my parents replaced their fridge / freezer - I can't. They've replaced their sofas a few times; but they have dogs. I think they've replaced their washing machine once, maybe twice.
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    (Original post by 122025278)
    Monthly costs:
    Rent/Mortgage: ~£450/~£600 (£600 based on a 25 year mortgage of £130k, less than half the national average price, at low interest rates)
    Council tax: £80 (About average for a property in the £130k region, with a working occupant who gets the 25% discount)
    Electricity and Gas: £60 (Probably less than most people would use if anything, especially in cold months)
    TV licence: £12
    Phone and Broadband: £18 line rental + £17 for call and internet package = £35
    Home insurance: £25 ( Bank would certainly insist on building insurance)
    Water: £25
    Maintenance: £50 (Covering appliances and fixtures and fittings)

    Total: £887 a month
    You've never lived away from home, have you?
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    (Original post by Tiger Rag)
    I'm trying to remember the last time my parents replaced their fridge / freezer - I can't. They've replaced their sofas a few times; but they have dogs. I think they've replaced their washing machine once, maybe twice.
    We have a dog too so our sofa does need replacing - that's our own fault though, who buys a cream sofa when you have a black dog that moults like hell?!? Most household appliances last for forever though! I know my mum n step dad went through a phase of breaking dishwashers but apart from that nothing big.
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    (Original post by Tw1x)
    We have a dog too so our sofa does need replacing - that's our own fault though, who buys a cream sofa when you have a black dog that moults like hell?!? Most household appliances last for forever though! I know my mum n step dad went through a phase of breaking dishwashers but apart from that nothing big.
    We're another who bought a cream sofa and has a black dog. Our current sofa is now black.
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    (Original post by 122025278)
    Your post was a complete straw man.

    The £887 comes from the cost that a person saves, each month, from living with their parents (assuming negligible contributions). I was very conservative in my calculations too. Ergo, a person would need to come up with £887 a month to cover fairly modest living costs. To come up with an extra £887 a month, a basic rate tax payer who makes national insurance contributions would need to earn an extra £17k a year before tax, without doubt.

    What I was trying to show was that someone on the minimum wage of £15k a year living with a parent has the same standard of living as someone earning £32k a year, with a very modest house (circa £130k value, less than half the national average price).
    No offence, I think you are talking waffle. None of your blurb makes any sense. Nice try though.
 
 
 
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