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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 project manager from Devon. After I graduated, I was very fortunate to move back in with my parents and then start my first full-time position (and move out into my own place). However, COVID-19 struck, and I spent lockdown in my family home working remotely surrounded by my parents, siblings and dog! Once lockdown restrictions were relaxed, I finally moved into a two-bed flat with a friend and began being more independent again. Recently, I completed on my first house which needed an intensive amount of renovation, so I am learning how to live in DIY chaos! I’m incredibly fortunate that I work in a great team and love my job, and I’m grateful to have received three promotions and pay rises. I’ve been incredibly lucky and also so grateful that my family have been there to support and help me throughout the renovation to save money — I didn’t know my brother was good at tiling! — which has made me more appreciative of the cost of things and hunting for the best deal. I’ve had to spend all my savings on renovation and emergency repairs, which means I have a more negative attitude to money where I feel a lot of guilt with spending money on ‘nice’ things. I’ve always been careful with money, so this is a fairly new feeling of having to justify purchases to myself. My partner, A, is a lot more relaxed with money and spending which I hope to embrace a bit more.”
Occupation: Project manager
Industry: Defence
Age: 26
Location: Devon
Salary: £46,589
Paycheque Amount: £2,688, plus £550 from my housemate to cover bills.
Number of housemates: 1 (H, who lodges in the house)
Pronouns: She/her
Industry: Defence
Age: 26
Location: Devon
Salary: £46,589
Paycheque Amount: £2,688, plus £550 from my housemate to cover bills.
Number of housemates: 1 (H, who lodges in the house)
Pronouns: She/her
Monthly Expenses
Housing costs: £903.04
Loan payments: £170 per month on kitchen, £75 on laser eye surgery repayments (ends this month), £123 Plan 2 student loan finance.
Savings? £500 emergency fund
Pension? I contribute 4.5% (£174 per month) and my employer matches this and adds an additional 1%, so 5.5%.
Utilities: £180 council tax; £25 a month water; £175 for gas and electric (standing order); £16.90 building and contents insurance; £26.50 Wi-Fi; £26.50 TV licence
All other monthly payments: £10 O2 sim; £45.63 car insurance; £14.43 car tax; £37.53 life insurance and critical illness cover; £9.05 income protection. Subscriptions: £14.99 Spotify; £95 Amazon Prime
Loan payments: £170 per month on kitchen, £75 on laser eye surgery repayments (ends this month), £123 Plan 2 student loan finance.
Savings? £500 emergency fund
Pension? I contribute 4.5% (£174 per month) and my employer matches this and adds an additional 1%, so 5.5%.
Utilities: £180 council tax; £25 a month water; £175 for gas and electric (standing order); £16.90 building and contents insurance; £26.50 Wi-Fi; £26.50 TV licence
All other monthly payments: £10 O2 sim; £45.63 car insurance; £14.43 car tax; £37.53 life insurance and critical illness cover; £9.05 income protection. Subscriptions: £14.99 Spotify; £95 Amazon Prime
Did you participate in any form of higher education? If yes, how did you pay for it? I started my undergraduate degree straight after finishing A levels, and I received the lowest maintenance loan and tuition fee loan. Because of the low maintenance loan, I had to work alongside my studies to afford the rent and necessities, which I think enforced my attitude of saving and not spending unnecessarily.
Growing up, what kind of conversations did you have about money?
I was incredibly lucky to have had a very comfortable standard of living, or at least the appearance of it. My parents were great at keeping any money issues to themselves if we had any, but my step-mum (who I call Mum as she’s raised me for most of my life) was always good at budgeting and making sure the finances were in order. When we could, we would go on holidays abroad but if not, we spent many weekends down in Cornwall. We did not receive pocket money, but we would never go without.
I was incredibly lucky to have had a very comfortable standard of living, or at least the appearance of it. My parents were great at keeping any money issues to themselves if we had any, but my step-mum (who I call Mum as she’s raised me for most of my life) was always good at budgeting and making sure the finances were in order. When we could, we would go on holidays abroad but if not, we spent many weekends down in Cornwall. We did not receive pocket money, but we would never go without.
If you have, when did you move out of your parents’/guardians’ house?
I moved out for university when I was 18, but moved back once I graduated when I was 21. I lived at home throughout lockdown (I was planning on moving out) and moved out when I was 23 to shared accommodation. I recently moved home for a longer period than expected due to giving up my tenancy and an unexpected delay in completing on my house, but I fully moved out when I was 26. When living at home, I contributed to household costs, but this was reduced to allow me to build up savings for my house purchase and renovation.
I moved out for university when I was 18, but moved back once I graduated when I was 21. I lived at home throughout lockdown (I was planning on moving out) and moved out when I was 23 to shared accommodation. I recently moved home for a longer period than expected due to giving up my tenancy and an unexpected delay in completing on my house, but I fully moved out when I was 26. When living at home, I contributed to household costs, but this was reduced to allow me to build up savings for my house purchase and renovation.
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I would say I have been fully financially responsible for myself since the age of 26 when I moved into my house.
I would say I have been fully financially responsible for myself since the age of 26 when I moved into my house.
What was your first job and why did you get it?
My first job was as a kitchen assistant in a local health centre when I was 15. I actually got this job as a result of volunteering to teach children to play squash for my Duke of Edinburgh award. The kitchen were short on staff one day and I helped out. I worked two evenings a week to earn money to buy my own clothes and save to learn to drive (and eventually buy a car, insurance, et cetera).
My first job was as a kitchen assistant in a local health centre when I was 15. I actually got this job as a result of volunteering to teach children to play squash for my Duke of Edinburgh award. The kitchen were short on staff one day and I helped out. I worked two evenings a week to earn money to buy my own clothes and save to learn to drive (and eventually buy a car, insurance, et cetera).
Do you worry about money now?
I have a very bad relationship with money as I worry too much about it and restrict my own spending, so when I do spend money, I feel exceptionally guilty about it. I think this stems from having to be so financially careful when I was at university to make sure I could afford rent and food. This has continued into my adult life as although I am on a monthly salary, I feel nervous around spending money and saved throughout to buy my first house and put money aside for renovations. The house required a lot of renovation (some of which was definitely unplanned!) which saw my savings deplete and my spending on house-related activities increase, which has probably heightened my guilt around spending. I am now in a position where the majority of work is done and I can start to save again or spend money on decorating, but I will still have hesitation around spending.
I have a very bad relationship with money as I worry too much about it and restrict my own spending, so when I do spend money, I feel exceptionally guilty about it. I think this stems from having to be so financially careful when I was at university to make sure I could afford rent and food. This has continued into my adult life as although I am on a monthly salary, I feel nervous around spending money and saved throughout to buy my first house and put money aside for renovations. The house required a lot of renovation (some of which was definitely unplanned!) which saw my savings deplete and my spending on house-related activities increase, which has probably heightened my guilt around spending. I am now in a position where the majority of work is done and I can start to save again or spend money on decorating, but I will still have hesitation around spending.
Do you or have you ever received passive or inherited income?
I was extremely fortunate to be given some money towards my house deposit from my grandmother, which I invested and added to so I could afford the house. I also had some money in trust from when my mum passed, but this was not a lot as my dad didn’t really anticipate her passing at all.
I was extremely fortunate to be given some money towards my house deposit from my grandmother, which I invested and added to so I could afford the house. I also had some money in trust from when my mum passed, but this was not a lot as my dad didn’t really anticipate her passing at all.
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