Money Diary: An Assessment Developer On £45,000

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 26-year-old living in Sheffield with my boyfriend. We don’t have any children and at this stage we don’t think we want any. We also don’t have any pets yet, but have plans to get a cat in the future. We moved to Sheffield only three months ago and have just bought our first house here. We have really stretched our budget with our house and bought a more expensive house than I think an average first-time buyer might buy, but we both work remotely, so we wanted the extra space, and I was keen to live close to the city centre. I’m really happy to finally be on the property ladder and have my own space.

Previously, I lived at home with my parents after university, which ended up being for five years. I’m very grateful for this as it allowed me to save lots of money quite quickly and still maintain a good quality of life.

I work in developing assessments now for health and safety professionals. I have worked in the health and safety industry since graduating but love what I do now as it combines my skills well. My family and several of my friends live in my home city so I have struggled with the adjustment to moving to Sheffield, but I’m getting used to it now and I’m sure I’ll feel happier and less lonely here as time goes on!

In my spare time I like to go the gym, do classes, swimming and cycling. I also love to travel and can’t resist a cheap city break."

Occupation: Assessment developer 
Industry: Assessments
Age: 26
Location: Sheffield 
Salary: £45,000
Paycheque Amount: This is a new job and I haven’t had a normal paycheque yet, but I estimate around £2,700-£2,800 ish — depending on what my student loan repayments are and how much I decide to contribute to my pension.
Number of housemates: One, my boyfriend J.
Pronouns: She/her

Housing costs: £858.72 mortgage payment — for my half.
Loan payments: I have no outstanding debts apart from my mortgage and my student loan. I estimate I will pay about £250ish a month towards my student loans. 
Pension? I have been paying into my workplace pension since I turned 22. It is currently with Aviva and worth about £9,000 ish which I know isn’t very good, but I will start building it up. Currently my employer pays 5% and I will try to match this once I have my paycheque and can review everything.
Savings? I have several savings pots within my Monzo account, these are for various things such as holidays, my car, Christmas etc — the total value of these is £3,100. I have a stocks and shares ISA, the value of this is £675 (It was higher but has dropped significantly in value recently due to global events.) I have a separate savings account with Nationwide, which sits at 6% interest, the current value of this is £1,200. I also have €3,000 euros in an Irish bank account. 
Utilities: We split everything 50/50, my share is £28 water, £63 council tax, £83 gas and electric, £15 internet. I also personally pay £220 car tax and £300 car insurance annually.
All other monthly payments: £8 phone, £17 Monzo Max, £72 gym, £40 nails, £37 brows. Subscriptions: £1.59 Google storage, £10.99 Spotify, £2.40 Patreon.

Did you participate in any form of higher education? If yes, how did you pay for it? I went to university when I was 18 to do an undergraduate degree. I then decided to stay at the same university and complete a master’s degree. I paid for these using the student loans system and now have a large student loan debt. I had a part-time job while at university to top up my maintenance loan. My parents did not give me an allowance, however, did send me money here and there and often paid for my food shopping.

Growing up, what kind of conversations did you have about money?
We had a comfortable upbringing and both of my parents worked very hard. They are from poor backgrounds but worked to give us a great upbringing and a good start in life. The attitude to money differed, my mum is very savvy with money and taught me to budget well and to allow room in my budget for the small little treats as these are important. My dad, on the other hand, often made money a pressure topic. As I got a bit older, I educated myself about investing, credit and budgets, and continue to do so.

If you have, when did you move out of your parents/guardian’s house?
I initially moved out at 18 to go to university, then moved back to my parents’ house at 22, just as my master's was coming to an end, due to COVID. I moved out fully at 26 when I bought this house. 

At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I would say age 26 when I moved out. Up until then I lived at home rent-free and didn’t contribute anything, apart from the occasional takeaway etc. I am aware of how privileged this situation is, but my parents did not want me to pay them anything as they wanted to help me to save for my house deposit, which I did. Now that I don’t live there anymore, when I go back to visit, I make an effort to pay for things such as a lunch out, or some nice extra food bits. I am very grateful for the leg up that living at home rent free has given me. 

What was your first job and why did you get it?
My first job was as a lifeguard at a swimming pool at a holiday resort on the coast. I got it because I wanted to go on holiday to Barcelona with one of my friends! 

Do you worry about money now?
Yes, although I now have a good salary, I also have high outgoings. We did take on a large mortgage, which I worry about sometimes. We also have lots to buy as our house still feels empty! Overall, I think I have enough money left over to treat myself a little each month, which is important. 
I think about money all the time and track all my spending via my Monzo account. I used to do this manually. I am very aware of what goes in and out of both my account and our joint account. I want to build wealth and am aware of lifestyle creep. There are of course, aspects of my life I want to and will upgrade, but I don’t want to just earn more and spend more. 

Do you or have you ever received passive or inherited income?
My parents gifted me £5,000 when I bought this house, which I’ve used to buy furniture and household appliances etc. My parents sold a house in Ireland and gifted me €3,000. I’ve not used this yet but will probably put a deposit on a car at some point.