Savings Rate of a Nurse in Central London

The data is in --- my average savings rate for 2020 is 58.57%. At the beginning of the year, my goal was to invest 50% of my income every month. This was quite ambitious considering 1) I live in Central London, and 2) I'm a basic income earner.

Okay. First of all, I have been tracking my spending habits since time immemorial so I know exactly how much I would spend in a month. For last year, my budget was £1,200 (Php78,000) which I've only breached once for an £8 difference in January. To ensure I would meet my monthly goal of 50%, I needed an extra £200/month income to complement my average monthly salary of £2,200.  This was effortlessly achievable through agency shifts. The NHS will never run out of extra shifts so there's always one for the taking.

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How did I make sure I'd meet the goal?

1. Rent close to work. I live in a front-liners shared accommodation which is less than 10 minutes walk away from work. This allows me to forecast my household expenses as I don't worry about council tax contribution, utility bills, other dwelling wear and tears, and of course, travel. The only downside to this is that the building has more than 350 residents. My hallway alone has 12 occupants and we have to share the kitchen, shower and toilet facilities. Should I enumerate the hell living in a space with communal areas? No. And I am not going to complain about that. Ego is a bitch.
2. Not fussy with food. Cap my food expense to £150 a month. I could care less about gluten-free, hyped meat-alternatives and organic fruits and vegetables. If it looks palatable, I'd consume it except for junk-food and soda. I also cook 90% of the time, pack my own dinner and/or tea. And...
3. Predictable lifestyle. I feel ill if I don't do some form of exercise so I have a gym membership. I also take regular supplements and protein shake for the gains. COVID wiped-out my "fitness" expenses for 6 months but sans the virus, I know how much I would spend on this facet anyway. Other activities I love are free like walking around Central London, reading books and listening to podcasts. I do Tough Mudder and/or Spartan Race and out-of-London hike once a year which could get a bit costly but I budget this way ahead. My budget for this has not been touched for last year so maybe I could use it to book a superior hotel next time I travel to participate in a Spartan race. Eh?

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​See? It can be done. A savings rate of 50% or more ain't that elusive if you are willing to make sacrifices for now. I don't dream to live in a shared accommodation forever; but I want to buy my first house in the UK in hard cash. It doesn't matter if I have to buy it at a premium price in the future. I'd vote freedom with my feet all day as opposed to taking that much liability by getting a mortgage now when I don't even know which locale I would settle in my geezerhood.

Furthermore,  London is undeniably a bloody expensive city to live. Forget about housing and rent, think about the temptation the place bombards you daily - discounts on luxury items, restaurants and city night life, entertainment venues, peer or colleague inflated lifestyle creeps. You can't escape the spend narrative if the discipline and focus aren't there. 

But, if you know what you are up to, living in London wouldn't matter. There are heaps of ways to save. If you are a high roller, you'll find a way to splurge even if you live in Coton in the Elms.


Recommended Reading: How to Maximise Your Savings Rate.

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