A question about : Climbing the house deposit mountain
Hi I've finally decided to take the plunge and start a diary on here. The problem is I don't really know where to start...
Ok, I'm 22, live with my parents and am working hard to try to save a deposit for my own place. I'm self employed and earn approx 12k a year. Luckily I live in the north east where property prices are fairly low compared to the rest of the country.
Unfortunately this is where it gets complicated. At the moment I work as a nanny but this may come to an end in the next year. I should be able to get another nanny job but at some point (when I have my own place) I want to go into childminding. This means that I have a particular area of town that I want to live in, firstly because it is a nice area and secondly because it is next to a major business district, which would be good location to be a childminder. But naturally because its a nice area in a good location, property prices are higher there. I have used a mortgage calculator tool that suggests I would be able to borrow a max of 56k. I am looking for a property around 70k so I have a lot of work to do to save a 20% deposit! I have very little outgoings as I live at home, don't smoke, rarely drink, don't have a gym membership etc, so I'm struggling a bit as to how I can cut back further.
I hope that wasn't total gibberish, I have two ways of supplementing my income but I will write about them in a later post... I have waffled on enough! 
Thanks for reading,
Hayley x
Best answers:
- Good Luck I hope to be saving for a house soon
- Good luck indeed
- Goodluck Keep your thread updated with how you're doing and any tips for other people!
- Thanks for the messages of good luck
I said I had two ways of supplementing my income, they are a bit unconventional so here goes lol. Firstly I am a karate instructor, I teach a class of around 15 kids. I do it because I enjoy it, not to make money but I can make anything from Ј0-30 per class depending on the size of the class.
My second way of raising my income is kind of a work in progress. A few weeks ago I made a nappy cake for my cousin's newborn son and she was very impressed and said I should sell them. So I'm giving that a go too (although I haven't sold any yet). I have booked a stall at a craft fair on Saturday so I hope it goes well. Fingers crossed
Hope everyone has a great bank holiday weekend! - I sold my first nappy cake today It's a great feeling, knowing that someone liked my work enough to buy it! I'm still getting things together for my first craft fair on Saturday, hopefully I can make more sales there.
I'm pretty happy with how my savings are growing, my New Year's resolution was to set up a regular savings account and have money automatically transferred every month. In the end I opened two, one is a dedicated "Save to buy" savings account and now I have nearly Ј2500 between the two accounts. Not bad - Well done on the nappy cake. I think they are a fab idea! So cute
- I had my first craft fair yesterday Sold a couple of smaller things but handed out a ton of business cards so I should get more business in the future hopefully
Total profit? Something like Ј2 lol but I really enjoyed it and have signed up to go again in September. I've only been making nappy cakes for 3 weeks so just selling one was a great feeling - Excellent start, Hayley.
Just wondering if you've seen our > Making Money Online - Congratulations on you 2.5k That's great.
Something stood out that made me want to post but I should start by saying I am not a nanny so perhaps my queries are pure ignorance.
It seems unusal that a full time nanny (aka an employee with a boss) is self-employed. Unless of course you work for a number of families? My reading of your post implies you only work for one. Nannytax website also suggests that taxation for one employer is done via payroll. "If you earn more than the current tax and NI thresholds it is your employer's legal responsibility, not yours, to set up and operate a PAYE (Pay As You Earn) scheme on your behalf and to declare your wages with HMRC if they fail to do so they are breaking the law"
With your lower income it may be best to consider being an employee with all the sick pay and holiday benefits that entitles you to.
Speaking of income, what are your qualifications? It sounds strange but I think 12k is very very low (especially if this supplemented by other work). One of my nanny friends (with whom I am able to discuss private things such as salary with) nets almost twice that and only graduated last year. She is in the south, and as a live-in nanny earns less anyway, but I wonder are you being paid what you're due?
The average net per week for a nanny outside of London in 2012 is 389. assuming that the incomes are 15% lower in the NE (2010 stats) that's still: 330. Probably end up being a little less given your age (and therefore experience). But still, this net not gross. Your post implies you refer to gross.
Have I misunderstood your situation? ETA: you don't need to answer these questions by the way, just things to think about.
Sorry I kind of went overboard on the stats, I find these things interesting and hope they can help you!
Keep saving! I am so inspired by all these diaries, I might start one myself soon - Hi Dragonista,
I don't mind answering your questions, I have unusual circumstances which I should probably have explained better. Until recently I worked for 2 families (Although I worked for 3 families at 1 point!), hence being self employed. I work 29 hours a week whereas the average nanny works 40+ so on balance I consider myself well paid especially for my age and the area I live. I didn't see the point of asking the family I work for to employ me as they are relocating at some point in the near future. Plus if they are still here in September the youngest child I look after will be going to nursery so my hours will be reduced and I may try to get a second family again. I understand where you are coming from though, it was something I considered at the time =)
Thanks MSE FM I'll head over there now and have a look =)
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