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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 who has lived in Durham since I moved for uni. Five months ago I made a big career change from being a geotechnical engineer to an associate project manager in utilities (I actually wrote a Money Diary back in early 2020). The new job is a little less lively, a fair commute and I miss being outdoors so much, but the salary increase and career progression opportunities do make up for it. Staying in the construction sector utilises the knowledge I’ve picked up on site, and I’m still ploughing on in a male-dominated area.
I bought my little house two years ago and am busy rebuilding my savings with a focus on FIRE (or at least FI). I’m a naturally frugal person but still hold the view that while money isn’t everything, it does give you the luxury of choice and in doing so makes it easier to be happy."
Occupation: Associate project manager
Industry: Utilities
Age: 26
Location: Durham
Salary: £45,500, plus annual bonus and company car.
Paycheque amount: Varies depending on commuting overtime but usually around £2,800 after the cost of my hire car is taken off my salary. I also sacrifice £60 to SIP.
Number of housemates: One: my lovely lodger, K.
Industry: Utilities
Age: 26
Location: Durham
Salary: £45,500, plus annual bonus and company car.
Paycheque amount: Varies depending on commuting overtime but usually around £2,800 after the cost of my hire car is taken off my salary. I also sacrifice £60 to SIP.
Number of housemates: One: my lovely lodger, K.
Monthly Expenses
Housing costs: £376 mortgage. It used to be higher but after overpaying by the maximum amount the last two years, the bank reassessed my payment and reduced it. I don’t mind as I can get a better return on my money elsewhere, since I was lucky enough to lock in 1.98% just before interest rates skyrocketed. I know my mortgage looks outrageous to many people but every region has its perks, and low house prices are one of the northeast’s.
Loan payments: None.
Pension? Yes, I’ve contributed the maximum matched percentage ever since I started working and have transferred my previous pensions into my current one, totalling just under £18,000. I now pay 6% while my employer pays 12%. I’ve never had such generous employer contributions and plan to make the most of it.
Savings? £23,000 in a high interest savings account, £20,000 stocks, £11,600 S&S LISA (I used my H2B when buying my house so my LISA is in it for the long haul until I retire) and £5,000 in a one-year fixed term deposit at 5.1%.
Utilities: £17.69 water, £76 council tax, £10 broadband, £35-70 gas and electric (all my half).
All other monthly payments: £1.95 35GB SIM only. Subscriptions: £5.99 Spotify, £0.99 iCloud, £30 gym membership. I do some annually as they cost less, like my £59.88/year Freetrade basic account and £54.99/year Strava Premium.
Loan payments: None.
Pension? Yes, I’ve contributed the maximum matched percentage ever since I started working and have transferred my previous pensions into my current one, totalling just under £18,000. I now pay 6% while my employer pays 12%. I’ve never had such generous employer contributions and plan to make the most of it.
Savings? £23,000 in a high interest savings account, £20,000 stocks, £11,600 S&S LISA (I used my H2B when buying my house so my LISA is in it for the long haul until I retire) and £5,000 in a one-year fixed term deposit at 5.1%.
Utilities: £17.69 water, £76 council tax, £10 broadband, £35-70 gas and electric (all my half).
All other monthly payments: £1.95 35GB SIM only. Subscriptions: £5.99 Spotify, £0.99 iCloud, £30 gym membership. I do some annually as they cost less, like my £59.88/year Freetrade basic account and £54.99/year Strava Premium.
Growing up, what kind of conversations did you have about money?
When I was younger I never realised how hard my mum worked for the money to put me through private education. As a single mother who left school at 16, at one point she held down five jobs/side hustles including working at a care home, cleaning houses, childminding, selling baked goods at car boot sales and doing people’s ironing in the evening when I went to bed. I knew money was something to be worked for. She was entirely self-taught around finances and once I was older she started to educate me on things like emergency funds, passive income and the stock market.
When I was younger I never realised how hard my mum worked for the money to put me through private education. As a single mother who left school at 16, at one point she held down five jobs/side hustles including working at a care home, cleaning houses, childminding, selling baked goods at car boot sales and doing people’s ironing in the evening when I went to bed. I knew money was something to be worked for. She was entirely self-taught around finances and once I was older she started to educate me on things like emergency funds, passive income and the stock market.
If you have, when did you move out of your parents'/guardians' house?
I moved out for uni at 18, coming back for holidays. I got a full-time job and was self-sufficient straight after graduation at 21, and never moved back.
I moved out for uni at 18, coming back for holidays. I got a full-time job and was self-sufficient straight after graduation at 21, and never moved back.
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I’ve been financially responsible for myself (in that I can cover any aspect of my finances independently if I need to) since I was 21. However, my mum is aware that while an inheritance is extremely helpful, passing on money now at an earlier stage in my life allows me to focus on saving more, utilising compound interest, and paying my mortgage off early. She sends me £100 a month and often covers proportions of large bills such as when I needed a new boiler and roof. But she’s often said she would never do that if she knew I wasn’t saving the money, and if it’s around wintertime it usually ends up being my main birthday/Christmas present (which I don’t mind).
I’ve been financially responsible for myself (in that I can cover any aspect of my finances independently if I need to) since I was 21. However, my mum is aware that while an inheritance is extremely helpful, passing on money now at an earlier stage in my life allows me to focus on saving more, utilising compound interest, and paying my mortgage off early. She sends me £100 a month and often covers proportions of large bills such as when I needed a new boiler and roof. But she’s often said she would never do that if she knew I wasn’t saving the money, and if it’s around wintertime it usually ends up being my main birthday/Christmas present (which I don’t mind).
What was your first job and why did you get it?
Babysitting for a neighbour because they asked me. I loved it but Mum always made it very clear my focus should be on getting good grades, not earning money. She paid me £5 a week to clean the bathroom instead.
Babysitting for a neighbour because they asked me. I loved it but Mum always made it very clear my focus should be on getting good grades, not earning money. She paid me £5 a week to clean the bathroom instead.
Do you worry about money now?
No. I’m very aware of it at all times and record everything I spend to the penny, but not out of worry. Even if I were to lose my job, I have a large emergency fund and income from my spare room.
No. I’m very aware of it at all times and record everything I spend to the penny, but not out of worry. Even if I were to lose my job, I have a large emergency fund and income from my spare room.
Do you or have you ever received passive or inherited income?
I’ve never received any inheritance. I have a lovely lodger, K, who pays £130 p/w for the spare double ensuite, which is very reasonably priced for the area (similar rooms in the area are at least £190). It also means I’m not paying the single tax as we split all the bills. My mum gifted me £40,000 when buying my house, which was very generous of her. I could have afforded the house on my own but the larger deposit meant I could access a lower interest rate on my mortgage and not have to sell so much of my stock portfolio.
I’ve never received any inheritance. I have a lovely lodger, K, who pays £130 p/w for the spare double ensuite, which is very reasonably priced for the area (similar rooms in the area are at least £190). It also means I’m not paying the single tax as we split all the bills. My mum gifted me £40,000 when buying my house, which was very generous of her. I could have afforded the house on my own but the larger deposit meant I could access a lower interest rate on my mortgage and not have to sell so much of my stock portfolio.
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