ADVERTISEMENT
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 working in tech. I really love my current job but I feel behind as I’m three to five years older than other juniors at my company. Because of a gap year, a four-year bachelor’s degree and a master’s degree, I only have two years of full-time experience, but I’m doing my best to catch up. I live with my long-term boyfriend, C, who I met at uni. We live in outer London but are trying to buy somewhere more central to stop wasting hours on commuting. Getting on the property ladder has been my dream for ages — I opened a Help To Buy ISA in 2019 and have been saving since. I manage to save a lot by routinely putting away 80-90% of my salary but I am also extremely lucky to have received a massive gift from my parents towards the property purchase. C and I briefly experimented with a joint account for shared expenses but abandoned it in favour of better-value personal accounts. We don’t really keep track of how much we spend; when it comes to holidays, eating out and treats, whoever has a better cashback offer pays."
Occupation: Data scientist
Industry: Technology
Age: 26
Location: London
Salary: £48,000 base + 10-20% discretionary bonus if I do well enough.
Paycheque amount: £2,750
Number of housemates: One: my boyfriend, C.
Pronouns: She/her
Industry: Technology
Age: 26
Location: London
Salary: £48,000 base + 10-20% discretionary bonus if I do well enough.
Paycheque amount: £2,750
Number of housemates: One: my boyfriend, C.
Pronouns: She/her
Monthly Expenses
Housing costs: £0. I live with my boyfriend, C., in a property owned by a family member.
Loan payments: £0. The student loan comes out of my pay.
Savings? £480,000 total savings of any kind, including pensions, ISAs (cash and S&S) and savings accounts. Most of this is in cash (easy access savings) since I’m in the process of buying a property.
Pension? Yes, I contribute 6% and my employer contributes 12% of my base salary.
Utilities: £0. In our arrangement, C pays for utilities (electricity, water, gas and internet) and I pay for groceries. The family pays for council tax, service charge, etc.
All other monthly payments: £10 phone plan. Subscriptions: £25 PureGym, £48 yearly Amazon Prime.
Loan payments: £0. The student loan comes out of my pay.
Savings? £480,000 total savings of any kind, including pensions, ISAs (cash and S&S) and savings accounts. Most of this is in cash (easy access savings) since I’m in the process of buying a property.
Pension? Yes, I contribute 6% and my employer contributes 12% of my base salary.
Utilities: £0. In our arrangement, C pays for utilities (electricity, water, gas and internet) and I pay for groceries. The family pays for council tax, service charge, etc.
All other monthly payments: £10 phone plan. Subscriptions: £25 PureGym, £48 yearly Amazon Prime.
Did you participate in any form of higher education? If yes, how did you pay for it?
Yes, I have a bachelor's degree (covered by Plan 2 student loans) and a master’s (which I paid for with money saved from working in my first real job). My parents covered all my living costs throughout both degrees. I was not eligible for any maintenance loans because I was not a UK resident prior to starting my undergrad.
Growing up, what kind of conversations did you have about money?
My parents were very clear about the importance of living within one’s means and how money doesn’t grow on trees. They encouraged me to save and be financially responsible. However, they are not especially financially literate and did not teach me much beyond the basics. I used to think that my parents live quite frugally but over the past couple of years I realised that my mum frequently overspends/buys completely unnecessary items that never get used. I definitely internalised those patterns and am actively trying to unlearn them.
Yes, I have a bachelor's degree (covered by Plan 2 student loans) and a master’s (which I paid for with money saved from working in my first real job). My parents covered all my living costs throughout both degrees. I was not eligible for any maintenance loans because I was not a UK resident prior to starting my undergrad.
Growing up, what kind of conversations did you have about money?
My parents were very clear about the importance of living within one’s means and how money doesn’t grow on trees. They encouraged me to save and be financially responsible. However, they are not especially financially literate and did not teach me much beyond the basics. I used to think that my parents live quite frugally but over the past couple of years I realised that my mum frequently overspends/buys completely unnecessary items that never get used. I definitely internalised those patterns and am actively trying to unlearn them.
If you have, when did you move out of your parents'/guardians' house?
I moved out for university.
I moved out for university.
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I think I became responsible for myself when I got my first real job after my undergrad. However my parents still gave me money for living expenses (which I diligently saved!) and recently gave me a massive gift towards my property purchase. My boyfriend and family cover most of my living costs, including housing, utilities and food, so maybe that means I’m not (and never have been) actually financially responsible for myself.
I think I became responsible for myself when I got my first real job after my undergrad. However my parents still gave me money for living expenses (which I diligently saved!) and recently gave me a massive gift towards my property purchase. My boyfriend and family cover most of my living costs, including housing, utilities and food, so maybe that means I’m not (and never have been) actually financially responsible for myself.
What was your first job and why did you get it?
The first paycheque I got was at 18. I applied for a random data entry job because I felt so adult after finishing my secondary school exams and I was curious about the nine-to-five office lifestyle. It turned out to be painfully boring and emotionally draining so I ended up quitting within two weeks. I got my first real job after graduating at 23. It was a grad position in my industry and I got it because it was the expected next step after finishing uni.
The first paycheque I got was at 18. I applied for a random data entry job because I felt so adult after finishing my secondary school exams and I was curious about the nine-to-five office lifestyle. It turned out to be painfully boring and emotionally draining so I ended up quitting within two weeks. I got my first real job after graduating at 23. It was a grad position in my industry and I got it because it was the expected next step after finishing uni.
Do you worry about money now?
Constantly. Although I am in a very privileged position, I feel precarious and extremely self-conscious about how little I am paid compared to my peers in similar roles, who all earn more than me. Sometimes I feel like this reflects poorly on my skills and knowledge. I worry I will not have enough money to provide for my parents when they are older, or to start my own family. If I were to have kids, I would want them to grow up in better material conditions than I did and I am not sure if I can achieve that.
Constantly. Although I am in a very privileged position, I feel precarious and extremely self-conscious about how little I am paid compared to my peers in similar roles, who all earn more than me. Sometimes I feel like this reflects poorly on my skills and knowledge. I worry I will not have enough money to provide for my parents when they are older, or to start my own family. If I were to have kids, I would want them to grow up in better material conditions than I did and I am not sure if I can achieve that.
Do you or have you ever received passive or inherited income?
I am lucky that my immediate family is still alive and well and so I have not received any inheritance besides the gift mentioned above. I am not industrious enough for a side hustle/setting up a passive income stream.
I am lucky that my immediate family is still alive and well and so I have not received any inheritance besides the gift mentioned above. I am not industrious enough for a side hustle/setting up a passive income stream.
ADVERTISEMENT