Money Diary: A 24-Year-Old PhD Student On A 20k Stipend

This week: "I'm a 24-year-old PhD student at the University of Cambridge, currently in my final year studying history. I absolutely love what I do, and I feel so privileged to be able to spend my days researching a project I designed. I live in London as my archives are here and I wanted to live closer to my main group of friends. I live with three wonderful housemates in a really lovely house which is part of a housing co-operative. Being part of a housing co-operative is such an amazing privilege: it’s fantastic to collectively manage and run your own housing rather than be at the mercy of a landlord.

I'm trying to balance saving for my future and enjoying myself at the moment. In the next 10 years it’s my dream to own a house but I don’t want to have to be in a relationship to be able to do this, which is the case for many of us. Being paid every quarter can be tricky because it requires good budgeting. When I get paid, I immediately 'lock away' the savings I want to make. This sometimes means I’m scrambling around for extra tutoring work at the end of the three months."
 
Occupation: PhD student
Industry: Academia
Age: 24
Location: London
Salary: £20,413
Paycheque amount: £5,103 paid once every quarter (£1,701 per month). I pay no tax on this as it is a PhD stipend. I also make around £2-3k extra per year through tutoring and teaching undergraduates. 
Number of housemates: Three
Pronouns: She/her
 
Monthly Expenses
 
Housing costs: £295. I know this is unbelievably low for London. I live in a housing co-operative so while the rent is extremely low, you are expected to give your time to help manage the co-op. I was on the waiting list for around three years and feel so ridiculously lucky to live here. 
Loan payments: I have £45,000+ as a student loan, which I haven’t started paying back yet. 
Savings? I have around £20,500 in savings, which includes: £8,500 in a LISA (this is for a house deposit), £5,000 in investments (with Hargreaves Lansdown), £2,000 in a Help to Buy ISA (I got this before they closed and I can still use it on a purchase until 2029) and £5,000 in crypto.
Utilities: £8 for Wi-Fi, £10 for water (it changes), £20 for gas and electric. Council tax is covered in my rent. 
All other monthly payments: £25 for my phone. £35 split between Woodland Trust, Greenpeace, Rainforest Alliance, Anthony Nolan, Panzi Foundation and Sightsavers. Subscriptions: £10.91 direct debit for my NHS prescriptions (this is so good if you get multiple medicines a month), £9.99 Dropbox.
Pension? No (I’ve been a student since I was 18). 

Did you participate in any form of higher education? If yes, how did you pay for it?
 
I studied history as an undergrad. I paid for this with a student loan and the maximum maintenance grant I was eligible for, which I haven’t even begun paying off. My master’s was fully paid for by a scholarship which covered maintenance (about £11,000 a year) and fees (about £11,000). I also worked at international summer schools in the summer, which helped me to save a bit. Cambridge has a 'no job policy' in term time so you’re not allowed to work.
 
Growing up, what kind of conversations did you have about money?
 
We had quite open conversations about money growing up. Although we were comfortable, I knew my parents worried about money a bit, especially when we had a big purchase. Before she had me, my mum was a single parent living on benefits and consequently she has always been very frugal. My mum is very knowledgeable about finances and has taught me the importance of having a safety net. My dad is much more relaxed about money but he is also less clued up.
 
If you have, when did you move out of your parents'/guardians' house?
 
I moved out at 18 to go to university but feel like I properly moved out when I graduated from my first degree, at 21. 
 
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
 
My parents supported me throughout undergrad because my maintenance grant didn’t even cover my rent. I lived off £150 a month, which I found really stressful but which I was also very grateful for. I became financially responsible for myself when I started my master’s at 21, as I could live off my scholarship. 
 
What was your first job and why did you get it?
 
My first job was as a waitress at 17. I got it to pay for fun things to do and for going out with my friends. 
 
Do you worry about money now?
 
Yes, I do. I know I shouldn’t – I'm comfortable and I'm really privileged to have been given such a generous PhD stipend (mine is more generous than the average in the humanities, which is about £15,500 a year). However, academia is also a really insecure industry. It’s not uncommon for one history post to attract 800 applicants. Although it’s my dream, I really worry that I will not be able to make it in the industry and then I will be behind my peers if I have to try something else. 
 
Do you or have you ever received passive or inherited income?

I received £2,000 from my grandma when she passed away, which I was very grateful for and know I’m really lucky to have received.