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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 46-year-old living in London and working in publishing. I moved here 17 years ago from a European country and I love it! I’m now in a career I adore, which allows me frequent travel around the world, selling amazing books to international bookshops/distributors. I read Napoleon Hill’s book Think and Grow Rich and looked into buying a flat over 10 years ago; however it didn’t quite work out. In 2016 I lost a job and couldn’t work for about nine months due to mental health issues which depleted my finances. I didn’t do much about my finances until COVID hit and I realised how lucky I was to work full-time throughout the pandemic. At that point I had about £5,000 to my name, which I realised could have been problematic had I lost my job. By April 2021 I had accumulated a nice emergency fund and properly started investing. As I was well into my 40s, I really wanted to get my finances under control. I read I Will Teach You To Be Rich by Ramit Sethi and Financial Joy by Ken and Mary Okoroafor and have been following various finance channels on YouTube such as The Humble Penny and Nischa. Over the last three years I’ve achieved a lot more than I thought I would by following a pretty strict budget and living a frugal lifestyle. When I travel for work I have access to nice hotels and meals, which allows me a level of luxury I don’t otherwise incorporate into my daily life."
Occupation: Senior international sales manager
Industry: Publishing
Age: 46
Location: London
Salary: £51,750
Paycheque amount: £3,052. I’ve also been getting a bonus once a year most years (around £2k net, although nothing yet this year).
Number of housemates: None.
Pronouns: She/her
Industry: Publishing
Age: 46
Location: London
Salary: £51,750
Paycheque amount: £3,052. I’ve also been getting a bonus once a year most years (around £2k net, although nothing yet this year).
Number of housemates: None.
Pronouns: She/her
Monthly Expenses
Housing costs: £1,400 rent for a one-bedroom maisonette flat with a large balcony.
Loan payments: None.
Savings: £41,158 in a Vanguard ISA (mainly in the FTSE Global All Cap Index Fund Accumulation), £11,000 in an emergency fund, £800 in a sinking fund for holidays, gifts and experiences.
Pension: £40,600 in my current pension pot. I’ve also combined pensions from previous employers in a PensionBee account that has £10,000 in it. I currently put £186 into my pension every month and my employer pays £672.
Utilities: Water, electricity and internet are included in my rent. I only pay council tax, which comes to £144 per month.
All other monthly payments: £7 SIM-only phone plan, £220 to Unicef via my employer’s Give as You Earn (GAYE) scheme (this is taken from my gross income. The aim is to donate roughly 10% of my salary). Subscriptions: None.
Loan payments: None.
Savings: £41,158 in a Vanguard ISA (mainly in the FTSE Global All Cap Index Fund Accumulation), £11,000 in an emergency fund, £800 in a sinking fund for holidays, gifts and experiences.
Pension: £40,600 in my current pension pot. I’ve also combined pensions from previous employers in a PensionBee account that has £10,000 in it. I currently put £186 into my pension every month and my employer pays £672.
Utilities: Water, electricity and internet are included in my rent. I only pay council tax, which comes to £144 per month.
All other monthly payments: £7 SIM-only phone plan, £220 to Unicef via my employer’s Give as You Earn (GAYE) scheme (this is taken from my gross income. The aim is to donate roughly 10% of my salary). Subscriptions: None.
Did you participate in any form of higher education? If yes, how did you pay for it? I went to university in my home country from 2001 to 2006 and I have an MA in English literature. The fees were pretty low per semester — I think around £150, if that. I worked in a bookshop throughout university, which covered all my living costs as well as a semester abroad in Australia.
Growing up, what kind of conversations did you have about money?
I grew up in a very comfortable household with parents who ran their own business very successfully. We lived in a lovely village in a large house where everyone I knew had their own home and until I went to a different school aged around 10, I’d literally never met anyone who wasn’t well off. My parents prioritised an abundant and happy childhood and invested in our education and wellbeing, including ballet and piano lessons and frequent holidays, although not so much in material things such as flashy cars. I loved the idea of being independent from an early age so I often had several jobs such as babysitting — my parents didn’t quite get it and said I could just ask if I needed more pocket money, which wasn’t the point for me at all. Other than that, money wasn’t discussed much.
I grew up in a very comfortable household with parents who ran their own business very successfully. We lived in a lovely village in a large house where everyone I knew had their own home and until I went to a different school aged around 10, I’d literally never met anyone who wasn’t well off. My parents prioritised an abundant and happy childhood and invested in our education and wellbeing, including ballet and piano lessons and frequent holidays, although not so much in material things such as flashy cars. I loved the idea of being independent from an early age so I often had several jobs such as babysitting — my parents didn’t quite get it and said I could just ask if I needed more pocket money, which wasn’t the point for me at all. Other than that, money wasn’t discussed much.
If you have, when did you move out of your parents’/guardians’ house?
I moved out three times in total: the first time at 19 to go to London for a year, then at 21 and finally at 23 to go to university.
I moved out three times in total: the first time at 19 to go to London for a year, then at 21 and finally at 23 to go to university.
At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I've been financially responsible for myself on and off since the age of 19. The first time I supported myself was between the age of 19-20 while living in London. From 20-23 I did a paid apprenticeship as a bookseller in another town and my parents supported me financially (I can’t remember how much they gave me per month but I think it was around £200). Between the age of 24-28 I was financially responsible for myself. My parents offered to pay for my living costs while I was at university but I always preferred to work. At 29 I moved to London for the second time and did a three-month paid internship. During this time my parents helped me out financially. I've considered myself fully financially independent since then.
I've been financially responsible for myself on and off since the age of 19. The first time I supported myself was between the age of 19-20 while living in London. From 20-23 I did a paid apprenticeship as a bookseller in another town and my parents supported me financially (I can’t remember how much they gave me per month but I think it was around £200). Between the age of 24-28 I was financially responsible for myself. My parents offered to pay for my living costs while I was at university but I always preferred to work. At 29 I moved to London for the second time and did a three-month paid internship. During this time my parents helped me out financially. I've considered myself fully financially independent since then.
What was your first job and why did you get it?
I started babysitting once a week for three hours at the age of 16.
I started babysitting once a week for three hours at the age of 16.
Do you worry about money now?
No, I don’t. I believe in taking action and doing my best to achieve my vision of financial freedom. I’ve never been much of a worrier but over the last three years I’ve focused even more on a positive mindset and a gratitude practice. I’m grateful for my privileged background and intend to continue to pay it forward via donating and volunteering. I expect to inherit some money before I retire, which provides further peace of mind, but I’d love to build my own wealth nonetheless.
No, I don’t. I believe in taking action and doing my best to achieve my vision of financial freedom. I’ve never been much of a worrier but over the last three years I’ve focused even more on a positive mindset and a gratitude practice. I’m grateful for my privileged background and intend to continue to pay it forward via donating and volunteering. I expect to inherit some money before I retire, which provides further peace of mind, but I’d love to build my own wealth nonetheless.
Do you have or have you ever received passive or inherited income?
My only passive income at the moment is from my ISA but I’d love to come up with further passive income streams.
My only passive income at the moment is from my ISA but I’d love to come up with further passive income streams.
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