Money Diary: A 26-Year-Old Marketing Manager On 32.5k
Last Updated 9 March 2022, 7:00
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Welcome to Money Diaries, where we're tackling what might be the last taboo facing modern working women: money. We're asking a cross-section of women 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 marketing manager living and working in Buckinghamshire. I’ve lived with my long-term partner and our cat for almost five years, after moving out of my family home just a few months after I graduated. Despite leaving uni having cleared my £2,000 student overdraft completely, I soon fell back into debt as I struggled to balance the costs of housing, transport and fun against my starting salary of £20,000. Since then I’ve accumulated a total of £4,500 debt. I’m now on a journey to wipe this balance in the next 12 months to get #debtfreein2023 so that I can start saving for a mortgage deposit. Outside of work I like to bake, occasionally make art (digital and acrylic painting) and frequent fancy London restaurants for sushi and cocktails with friends (although I’m trying to cut back significantly on that last hobby)."
Occupation: Marketing manager
Industry: Recruitment
Age: 26
Location: Buckinghamshire, England
Salary: £32,500 base with a 10% annual bonus
Paycheque amount: £2,100
Number of housemates: One: my partner, G
Pronouns: She/her
Monthly Expenses
Housing costs: My share is £725, this includes rent and all bills. Our total monthly rent is £1,175 for a small, two-bed terraced house.
Loan payments: £120 (£80 direct debit to one credit card which has a £1,350 balance and £40 direct debit to another credit card with a £3,250 balance). My total credit card balance is ~£4,500, which has been pretty consistent for the last three or four years. This debt mostly accumulated when we moved out and when I purchased my first car. I decided to pay for the car and the insurance on a 0% interest credit card and I guess I’ve never really dented that balance, just kept adding to it. I'm paying an additional £350 in credit card repayments monthly in an effort to clear all £4,500 this year, with the help of my bonus payments and monthly pension contribution saving.
Savings? Joint account savings £350, crypto 'investments' £30, my LISA £1, my partner's LISA £8,000.
Pension? I have a balance of £12,000 between several pots. I got a new job in October 2021 and have recently opted out of my pension with this employer in order to pay my credit card debt off more quickly.
Utilities: All included in the £725 I contribute to the joint account each month (our combined utility costs are council tax £180, water £24, contents insurance £6.30, TV licence £13.37, energy £75, broadband £29.27).
All other monthly payments: Phone £45. Pet insurance £15.24. Subscriptions: Amazon Prime £7.99, Audible £3.99, Hayu £4.99, Scent Addict (perfume subscription) £12, Apple cloud storage £2.99, Wix £9.50.
Occupation: Marketing manager
Industry: Recruitment
Age: 26
Location: Buckinghamshire, England
Salary: £32,500 base with a 10% annual bonus
Paycheque amount: £2,100
Number of housemates: One: my partner, G
Pronouns: She/her
Monthly Expenses
Housing costs: My share is £725, this includes rent and all bills. Our total monthly rent is £1,175 for a small, two-bed terraced house.
Loan payments: £120 (£80 direct debit to one credit card which has a £1,350 balance and £40 direct debit to another credit card with a £3,250 balance). My total credit card balance is ~£4,500, which has been pretty consistent for the last three or four years. This debt mostly accumulated when we moved out and when I purchased my first car. I decided to pay for the car and the insurance on a 0% interest credit card and I guess I’ve never really dented that balance, just kept adding to it. I'm paying an additional £350 in credit card repayments monthly in an effort to clear all £4,500 this year, with the help of my bonus payments and monthly pension contribution saving.
Savings? Joint account savings £350, crypto 'investments' £30, my LISA £1, my partner's LISA £8,000.
Pension? I have a balance of £12,000 between several pots. I got a new job in October 2021 and have recently opted out of my pension with this employer in order to pay my credit card debt off more quickly.
Utilities: All included in the £725 I contribute to the joint account each month (our combined utility costs are council tax £180, water £24, contents insurance £6.30, TV licence £13.37, energy £75, broadband £29.27).
All other monthly payments: Phone £45. Pet insurance £15.24. Subscriptions: Amazon Prime £7.99, Audible £3.99, Hayu £4.99, Scent Addict (perfume subscription) £12, Apple cloud storage £2.99, Wix £9.50.
Did you participate in any form of higher education? If yes, how did you pay for it?
I had the maximum student loan and bursary based on my household income, which helped a lot with my expenses. I also took a gap year but didn't do any travelling – just worked practically full-time to save for uni. I ended up saving about £1,000, which isn't much but it was an impressive feat on my £4.50 hourly wage and zero-hour contract. I also worked part-time all throughout my degree. I got a first class degree in digital marketing and advertising, which I am proud of.
Growing up, what kind of conversations did you have about money?
Growing up, what kind of conversations did you have about money?
I grew up on benefits. Neither of my parents worked, both claiming various unemployment and disability benefits instead. Our yearly 'income' was less than £10,000. Money was always tight growing up and I had to watch as my parents struggled to pay our rent and bills. They were very open about our situation (a little TOO open) and as a child I'd frequently go to bed worried about being evicted from our home. When I was about 13 or 14 my parents inherited £150,000 – which to us felt like a lottery win. However, the sudden loss that triggered the inheritance sent my parents into a grief spiral, causing serious addiction and mental health issues. I got a lot of pocket money, which was great for a teen, but the family money was severely mismanaged and had completely depleted by the time I was 16. Luckily, by then I was old enough to get a job and earn my own spending money.
If you have, when did you move out of your parents'/guardians' house?
If you have, when did you move out of your parents'/guardians' house?
I moved out of my family home the same year I graduated. I found my ideal graduate role as a marketing account manager and as soon as I had three months’ payslips I started arranging viewings and my partner, my cat and I all moved into our first home.
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I started paying for all my own food, clothes, school supplies and travel at around 16. But I didn't contribute towards rent until I was 20. I’ve received £0 in contributions from my parents since moving out. I'm lucky that my partner has always been able to pay upfront for expenses like rental deposits and big items of furniture, and that I've been able to pay him back slowly. I don't have a safety net beyond my partner and that does scare me. Hopefully I will be able to pay off all my debt this year, then I'll be able to start building some savings of my own.
What was your first job and why did you get it?
My first job at 16 was in the retail industry and I loved it! My starting wage was £3.94 an hour but I did pick up a lot of extra shifts and usually earned about £75-£150 a week. I remember I saved up my first few months of pay to buy an iPod touch and felt so proud when I did.
Do you worry about money now?
Growing up, I worried about money so much! Living under or on the poverty line for most of my early life made me hyperaware of the problems that a lack of money can cause you. I was always stressed and had pretty bad anxiety as a young child. Bills, court summons and rent arrears would literally pile up in my house. These days I'm lucky that I don't have to worry about money in the same way that I did as a child, but I do still worry. I haven't got savings and I live paycheque to paycheque. I also worry that my partner and I will never be able to buy a house and that my pension won't be enough to retire on, especially given that we might still be renting in old age. We have a decent household income of £74,000 (including both our annual bonuses), which would get us a good mortgage, but saving the size of deposit we’d need to buy locally is a BIG issue.
Do you or have you ever received passive or inherited income? If yes, please explain.
What was your first job and why did you get it?
My first job at 16 was in the retail industry and I loved it! My starting wage was £3.94 an hour but I did pick up a lot of extra shifts and usually earned about £75-£150 a week. I remember I saved up my first few months of pay to buy an iPod touch and felt so proud when I did.
Do you worry about money now?
Growing up, I worried about money so much! Living under or on the poverty line for most of my early life made me hyperaware of the problems that a lack of money can cause you. I was always stressed and had pretty bad anxiety as a young child. Bills, court summons and rent arrears would literally pile up in my house. These days I'm lucky that I don't have to worry about money in the same way that I did as a child, but I do still worry. I haven't got savings and I live paycheque to paycheque. I also worry that my partner and I will never be able to buy a house and that my pension won't be enough to retire on, especially given that we might still be renting in old age. We have a decent household income of £74,000 (including both our annual bonuses), which would get us a good mortgage, but saving the size of deposit we’d need to buy locally is a BIG issue.
Do you or have you ever received passive or inherited income? If yes, please explain.
No.
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