Yet when you think that most people will experience some kind of financial insecurity during their lifetime (shockingly, 49% of women claim their financial future is a top everyday stress) and consider the effect that has on mental health, you have to ask: why is the subject still so awkward?
We should be able to talk about money as freely as we do an annoying boss or doomed Hinge date over a glass of wine with friends. After all, opening up about what’s bothering you is the first step to tackling your problems – in life generally and when it comes to your financial wellness.
Often, the hardest part is admitting we might be struggling in the first place. A great first step is taking Laybuy’s five-minute Financial Health Check, which allows you to assess how you are coping financially by answering questions such as: Can you be honest with friends if you don’t have the spare cash for social plans? Do you feel optimistic that you can manage and pay off any debt you have? Do you put away a set amount of money every month into your savings? Ultimately this will build a holistic picture of your financial wellness.
It’s only in acknowledging the problem that we can then choose how to deal with it, whether that’s confiding in family, seeking support from a friend or consulting a professional for advice. Being transparent about your concerns will reduce the anxiety around your finances and provide you with greater tools to remedy them.
So, in the spirit of practising what we preach, we’ve asked five Refinery29 staffers to get honest about what freaks them out most when it comes to finance, hopefully encouraging you to do the same.
Let’s get real about money…
I finally got a grip on my money about four years ago, late into my 20s. After years of living in my overdraft and wondering where my money went every month, I made a budget spreadsheet – and honestly, I’d be lost without it. Every payday I go through my spreadsheet and work out that month’s outgoings, set aside a household food allowance and a personal allowance, and finally, put money aside for anything I’m saving for (from the small, like birthday gifts, to the big, like my wedding).
After all this, I’m either left with £0 or a little buffer – knowing that everything is covered for the month. But what about the unexpected? I ‘save’ money all the time but it’s always for something. Apparently we should aim to have three months’ salary set aside for ’emergencies’ and not having anywhere near this does worry me. Realising that chipping away at that figure is better than nothing at all, last year I added an ’emergency fund’ line to my spreadsheet and every payday I siphon off what I can for this pot – sometimes it’s £100, sometimes it’s a tenner. Slowly but surely, I’ll get there!
Natasha Slee, Senior Creative
When I was in my early 20s I had a small credit card debt to pay back. It wasn’t huge and I paid it back without accruing too much interest but how I felt during that period has stuck with me forever. While I was paying back the debt, I was so panicked over it, struggling with sleep over the stress of it all, feeling like I was being hit with a ton of bricks. Once I paid it back, I vowed never to feel so out of control again with my spending.
I can happily say that I’ve kept to my word, am now a great saver and have never had credit card debt since. However, those memories remain, particularly that feeling of panic, which has led me to swing almost too far in the other direction. I overthink purchases that I’d consider “non essential”, particularly after a short period of redundancy a few years ago. Whenever I spend a bit of money on clothing, trips etc, I feel guilt that I could have (or should have) put that money into savings, just in case I find myself without a job again.
During 2020, I reached peak worry (who’d a thunk it during a pandemic, right?). It got to a point where I’d feel guilt if I caught a taxi instead of a bus or train, if I decided to splurge on expensive clothing that I knew would last longer when there were cheaper options out there. So I stopped, took a breath and had a stern word with myself.
While I’m not fully there YET, I have started to make more of an effort to worry less and live a little more. I allow myself a little balance and can now treat myself without going into a spiral of thinking. It’s a work in progress but, in 2021, who isn’t? One step at a time!
Liz Kyneur, Production Team Lead
I’m in a constant state of panic over my finances compared to those of my friends. I’m 27 and living paycheque to paycheque in London while I watch people I went to school with buy houses, get new cars, get married and go on luxury holidays. I feel like I stagnated in my previous job for so long but now, just as I’m starting to climb the career ladder, I’m watching them go higher with bigger bonuses and pay rises.
I made some poor decisions in my early 20s which mean I have no savings. Quarantine has helped me get things in order and I now have a small ISA but, honestly, most days I feel like I’m never going to catch up with them. Sometimes it feels like a dark cloud of shame over me that I can’t shake. But it’s not all doom and gloom: I recently got a promotion and I found cheaper rent so I have more disposable income. Hopefully, in a few years I’ll be exactly where I hoped to be at this point in my life.
Lauren Seaton, Junior Operations Manager
With the world changing this year of lockdown, I had time to reflect on what my future could look like. As much as I want to get on the property ladder and feel so hopeful of owning something that is mine, my sensible, manage-all-the-risks-before-committing personality always makes me doubt this is the right time to take the leap.
This year has also made me realise that you don’t really ever know what your future is made of and the only thing we can do is live in the moment and worry less about the ‘ifs’ that cloud our decision-making.
I have started browsing property sites and daydreaming of the perfect little house and how I would make it feel homely and that fills me with hope and excited anticipation.
Sohini Gogel, Head of Production
Growing up, the idea of saving money always seemed to be for proper adults and – so I thought – you only became an adult once you had kids. Of course, that was an illusion. After turning 30 a few months ago and moving with my partner into our dream (rented) flat, we ended up talking about serious topics that require an important amount of savings, like buying a house. That was the cut-off point for me.
Young Laurene would have spent her salary until the last penny, without even thinking about saving. I loved it and I had everything I wanted (even things I didn’t need). Adult Laurene is now setting up a direct debit from payday, going straight into a savings account that I don’t look at. This way, I avoid seeing available money and having to physically move it around.
Laurene Mpia, Production Manager
As you can tell from our staffers’ stories, financial concerns affect everyone in different ways, from the niggling doubts to the huge worries that impact us daily. In fact, Laybuy found that 79% of UK women under 40 have financial concerns, which just goes to show how normal they are – and how important it is to get talking.
Remember, a huge step in tackling your financial wellness begins with finding out where yours stands. Click here to take Laybuy’s all-new five-minute Financial Health Check, to access tips and advice, and for more information about the Laybuy #MasterYourMoney Campaign.
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