Money Diary Accountant in Essex On 42k

Welcome to Money Diaries where we are tackling the ever-present taboo that is money. We're asking real people how they spend their hard-earned money during a seven-day period — and we're tracking every last penny.

This week: "I’m a 25-year-old new mum who has just moved back to my home town in Essex to be closer to my family. I moved in with my fiancé in lockdown and we got engaged late 2021. Our wedding is coming up in three months’ time. In the last nine months my spending habits and social life have changed drastically but I’m slowly starting to spend more time going out with friends in the evenings and at weekends."

Occupation: Accountant
Industry: Restructuring
Age: 25
Location: Essex
Salary: £42,250
Paycheque amount: A usual month is £2,346. However as I am nine months into my maternity leave, I now have three months of no pay until I go back to work in September.
Number of housemates: Two: my fiancé, B, and our son, A.
Pronouns: She/her

Monthly Expenses

Housing costs: I usually pay £600 towards our mortgage (the split between me and B is proportionate to our salaries). At the moment I am in the last three months of my maternity leave so I do not have any income until I return to work.
Loan payments: Student loan repayments are deducted from my paycheque each month.
Savings? £15,000 in a savings account and £8,000 of premium bonds.
Pension? My company has a salary sacrifice scheme and I contribute 5% with my employer contributing 6%.
Utilities: I do not pay any utilities out of my account. As we split our contributions to our home based on our salaries, B covers the utilities.
All other monthly payments: £60 phone bill, £50 gym membership. Subscriptions: £6.99 Apple storage (this has been needed since taking hundreds of photos of A every day).

Did you participate in any form of higher education? If yes, how did you pay for it?

Yes, I obtained an undergraduate degree in economics. I received a full student loan and the maximum maintenance loans. This didn’t even cover my rent so my parents very kindly supported me, which I topped up by working at my dad’s retail shop during the holidays.

Growing up, what kind of conversations did you have about money?

We didn’t have lots of conversations about money. I was very privileged to go on two holidays most years and I never went without anything I needed. My parents divorced when I was young and I definitely learned the value of money, particularly from my mum. She made sure I never took anything for granted and appreciated what my parents did to provide me and my siblings with what we had.

If you have, when did you move out of your parents'/guardians' house?

I moved out at 18 when I went to university and moved back to my dad’s house when I finished my degree. I moved in with B during the 2020 lockdown and we moved into a new flat together after that.

At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?

I am not 100% financially responsible for myself currently. Given that I am on maternity leave, we are now reliant solely on B’s income until I go back to work. We decided as a family that I would take the full year available for maternity to avoid paying nursery fees until we have to (this will happen in September). If anything were to happen, I know I could live off my savings for a while. I am very grateful to be in the position where I can take a full year off work with A. I do not take this for granted.

What was your first job and why did you get it?

I worked in my dad’s retail shop from the age of 16 to pay for clothes and days and nights out with my friends. I also babysat for my parents’ friends occasionally.

Do you worry about money now?

Given that we are getting married soon and about to start paying childcare fees, money worries are always there in my mind. We generally live within our means, however with the rising costs, I do try and save money where possible and have changed my spending habits recently.

Do you or have you ever received passive or inherited income?

I received £10,000 from my grandparents recently, which is to be used towards a deposit for our next family home in the future. I split this between my savings and premium bonds.