Dip into savings?

[flatcat]

Hi there,

I'm currently self-employed and earn half my income that way. The other half comes through a PAYE job I work part-time. Due to severe burn out with that job, I'm strongly considering not going back to it in a couple of months time (it's in the teaching area). I think I actually reached burn out with it a couple of years ago but kept going and now it's causing some real anxiety and stress.

Anyhow, I'm trying to find a full-time position to replace both sources of salary but I'm not sure how long that will take. I do think I need to retrain or move into another area as I've worked in the same field for 10 years and don't find it fulfilling any more (though I know I shouldn't complain having a job in the first place).

I have savings of close to €20,000 built up and I'm considering dipping into them, along with my self-employed income, in the interim.

Does anyone have any comments on budget below? I've cut my spending to the absolute minimum in terms of bills, a little for living expenses but nothing really for holidays, clothes etc. I'm not afraid to live frugally for a while but don't want to get into debt either.


Current situation

[FONT=&quot]Your budget summary:[/FONT]​

[FONT=&quot]Per Month[/FONT]
[FONT=&quot]Total income:[/FONT]
[FONT=&quot]€2410.00[/FONT]
[FONT=&quot]Total spending:[/FONT]
[FONT=&quot]€1641.20[/FONT]
[FONT=&quot]Total left over:[/FONT]
[FONT=&quot]€768.80[/FONT]

[FONT=&quot]Your spending breakdown:[/FONT]​

[FONT=&quot]Loans & debts:[/FONT]
[FONT=&quot]€0.00[/FONT]
[FONT=&quot]Savings:[/FONT]
[FONT=&quot]€0.00[/FONT]
[FONT=&quot]Pension:[/FONT]
[FONT=&quot]€0.00[/FONT]
[FONT=&quot]Work related:[/FONT]
[FONT=&quot]€65.00[/FONT]
[FONT=&quot]Home expenses:[/FONT]
[FONT=&quot]€840.70[/FONT]
[FONT=&quot]Phone expenses:[/FONT]
[FONT=&quot]€37.00[/FONT]
[FONT=&quot]Insurance:[/FONT]
[FONT=&quot]€79.75[/FONT]
[FONT=&quot]Car costs:[/FONT]
[FONT=&quot]€263.75[/FONT]
[FONT=&quot]Education and courses:[/FONT]
[FONT=&quot]€0.00[/FONT]
[FONT=&quot]Leisure:[/FONT]
[FONT=&quot]€223.33[/FONT]
[FONT=&quot]Occasional expenses:[/FONT]
[FONT=&quot]€131.67[/FONT]
[FONT=&quot]Family costs:[/FONT]
[FONT=&quot]€0.00[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Total spending:[/FONT]
[FONT=&quot]€1641.20[/FONT]

Add in tax 150 per month

Total actual spending: 1791.20 a month


New situation
Total income 1333.33 a month
Total spending 1791.20 a month (have left tax in but that would come down as earning significantly less)


That seems to me that I'd be running a deficit of 457.67 a month which would mean I'd be able to live for a year or more just on reduced income plus savings.

 

[flatcat]

Just to say I used the NCA Budget calculator so all categories are covered even if they don't seem reflected in the titles used above e.g. food, management fees...pretty much everything you need is included, even still the less regular trip to the hairdresser.