Credit: bendavisual on Unsplash
On my second post, I have indicated that my savings rate is 50%. This leaves me roughly £1500 to live off for a month and the other 50% allocated to various investment instruments like stocks and shares. As someone living in Central London, is this enough? Or am I eating purely rice and beans, noodles and discounted meals all day, everyday?
I'll show you.
T1 is my actual budget for the month (January 2020) based on my Earned Income last December.
Food and Beverages - £30/week; Food in the UK is cheap af if you know where to look.
High Protein Muesli, Peanut Butter, Oats, Assorted Berries, Coffee. Quick and easy. Just add hot water. Done.
There is no way I would cook in the morning.
Dinner: Meal Prep on Sunday (1-2 hours)
Chicken (Breasts, Boneless Legs), Ground Pork or Beef, Salad, Assorted Vegetables (mostly broccoli, bok choi, carrots), Salad (baby spinach, cabbage), Fruits (Banana, Apple), and Rice
Burger + eggs, Wraps (mostly beef or chicken). There is no limit on what I could prepare with wraps. Also, pasta (unlimited recipes on this).
Tea, Scones or fruits, High Protein Bar
Beverages: Naked High Protein, Recovery Protein Shake, Organic Milk, Lager, Stout, Wine
Eat-out: I am not a patron of any particular restaurant. I eat wherever I feel like eating, Greek, Turkish, Lebanese, Italian, Ethiopian, English, American, Vietnamese, Japanese or Chinese. Once or twice monthly. My favourite coffee lounge is Caffe Nero. Starbucks is over-rated, change my mind (lol). Admittedly, I do overspend on coffee about 5-6 times monthly. This is because I am more productive in coffee shops - give credit to the caffeine high - and the ambiance as well.
Rent, Internet, Others (Fixes, Cleaning materials). A little under £700 for a rent in Central London (shared-accommodation). Criminal right? Although, this is inclusive of utilities! I know this type of living is undesirable to many people but I prefer to walk to work as opposed to wasting time traveling to and from work 4-6 times per week for 45-60 minutes each way. I may consider moving out once I get married. For now, it works well for me despite the cons. I am paying £80 for my phone and internet, which is steep. I would be eligible to change my plan at no cost to an upgraded phone for a lesser monthly bill at £40 in 3 months. Household fixes don't happen a lot, and if it does, my landlord will fix it for me.
Health is the most important investment and therefore, should be a priority.
This covers my gym membership, Protein, supplements, etc. Budget increases when it is due for my annual eye check-up and bi-yearly dental care. Healthcare is FREE in the UK.
Remittance - Mostly for my brother's school fees, extra for my parents' medical bills if needed, friends in financial difficulties, extra help to deserving students from my previous Alma Mater, and other charity giving.
Seldom used, I walk. If I ran out of travel card credit, I top it up with £20.
NMC at £120 yearly, Indemnity Body £17 monthly.
Pub, Sports Bars, Meet-ups, Professional Sports, Video-on-demand. I must admit, I over-spend on this, especially when my team has a game (£15-£20 per ticket). I am also planning to join a Rifle Club this year which is not cheap. Nonetheless, most of the things I like are free i.e. art galleries/exhibitions, museums, arts/street arts, reading books and the like.
Cashflow - leftover money.
I could do whatever I want to do with this. Go on a date, eat-out (again), shopping (not really, I hate shopping. It is stressful). Cashflow for my next out-of-town trips (mostly hiking), paid events, replace broken gadget accessories or torn/stained clothes.
Bottomline is, a £1500 monthly budget in Central London is more than enough to live a non-restrictive lifestyle. There are extreme versions of FIRE, but I don't like it. I'm a singleton, no kids or pets to look after. I don't own a house, so no repairs, insurance, service fees nor mortgage to pay for. I also do not have any debts, no overdrafts, never owned a credit card. And I follow minimalism which, in a nutshell, owning less stuff or worldly possessions and living a life based on experiences. My personal circumstance is something to consider because everyone is different. And my version of a good life could be your version of a bland, pathetic life not worth emulating, or could be that my version is still extravagant that needs modifying. It really depends.
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