Money Diary: A 25-Year-Old Client Success Manager On 38k

This week: "I’m a 25-year-old client success manager in advertising. I was so lucky to land my job in an incredible startup which has a great work culture and really values personal and professional development. I knew nothing about advertising or the media when I started so it’s been a huge learning curve but I’m lucky in that I absolutely love my job and it’s such a fun, dynamic and exciting industry to be a part of. I currently do two days in the office and three at home, which I’m really enjoying and I feel like I’m in a great routine at the moment.

Growing up, money was quite tight but I’ve always worked and saved. Now I’m living in London and on a good salary, I’d say I’m a mix of a spender and a saver. I put away money every month without fail but am still very happy to prioritise holidays and going out over religiously and relentlessly saving, and I do dip into my cash ISA to pay for 'fun' things most months. I recently got a generous pay rise after a review so for now I’m definitely prioritising having fun and enjoying my life after my early 20s were robbed from me during the pandemic."

Occupation: Client success manager 
Industry: Advertising
Age: 25
Location: London
Salary: £38,000 + 10% bonus
Paycheque amount: £2,270
Number of housemates: Two
Pronouns: She/her 
 
Monthly Expenses
 
Housing costs: £575 for the smallest room in a lovely three-bed flat with a garden in Zone 3 (an absolute bargain in my opinion).
Loan payments: Roughly £90 student loan comes out of my paycheque each month. I also pay £25 a month for a cordless hoover I bought on Amazon.
Pension? I pay 3% which my employer matches.
Savings? £1.5k in a stocks and shares ISA and £5.5k in a cash ISA, which I have just switched to get a better interest rate as my previous one was abysmal. I pay in anything that’s left over after I move all my money around at the start of the month but do dip into it quite regularly to cover travel or tickets.
Utilities: £55 council tax, £29 gas and electricity, £13 water, £7.50 Wi-Fi, £7.50 contents insurance.
All other monthly payments: Gym membership £49. My dad still covers my phone bill through his business. I pay £34 for Wi-Fi for my mum at home and also send her £100 to help out. Subscriptions: £30 annually for Amazon Prime (split with my sister), £5 a month for Monzo Plus as I’m obsessed with colour-coding my budgets.

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

I got the maximum loan and maintenance grants and worked throughout the holidays to pay for university. I also had various part-time jobs during uni, including some horrific catering jobs that scarred me for life. On my year abroad I also got a very generous Erasmus grant. My dad (who is more well-off than my mum – they separated when I was in primary school) was always on hand if I got really stuck and helped with housing deposits and paying for my glasses etc.
 
Growing up, what kind of conversations did you have about money?

There were very few conversations pre-parental separation. We were never rich but always comfortable and had several staycations and a European holiday every year, although my dad owned his own business so it was quite dependent on how well he did. When my parents split, my mum really struggled as a part-time NHS worker and as the older sibling I was very aware of how tight money was. I still see that firsthand now.
 
If you have, when did you move out of your parents'/guardians' house?

I moved out for uni, then went back post-university and during the first COVID lockdown. I moved out properly in August 2020 when I moved to London. 
 
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?

When I moved to London in August 2020 (unless you count the phone bill). When I lived at home post-uni I paid my mum £150 in rent and helped with groceries etc. Now I've moved out, I fully cover myself and don't get any other help. I have enough in savings to have a safety net if anything bad happened.
 
What was your first job and why did you get it?

I worked in various cafes on the weekend from the age of 14. It was tough but I learned a lot. It was a really good experience and taught me how to manage my own money.
 
Do you worry about money now?

I feel like I should but I don't. I'm so fortunate to be paid a generous salary at my age/experience level, which I'm very grateful for. I have a decent amount of disposable income, decent rent and no dependants. I'm not interested in saving for a house at the moment so I really enjoy spending my money on holidays and hanging out with friends, while still saving where I can. I worry more about money in terms of my family, which is why I started helping out my mum when I got a pay rise and had more than enough for myself each month.
 
Do you or have you ever received passive or inherited income? If yes, please explain.

I received £1,500 from my grandmother when she passed away. I was still in school and spent it on a new guitar and a World Challenge trip to Central America when I was 17. I also received £7,000 (I think?) from my dad – he put money into a fixed term ISA for us when we were younger, which matured when we turned 18. This went towards paying myself (and my dad) back for my school trip, got me through uni as a backup for fun things and paid for a lot of trips and holidays when I was at uni such as Interrailing and going to Canada. I topped it up with my own savings but it probably finally ran out during my year abroad. I could definitely have invested this better but I had a very fun time during uni so cannot complain.