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.
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?
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?
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.
No.
7.15am: I’m not prepared for the alarm this morning. I snooze several times before reluctantly peeling the cosy covers away at around 7.45am.
8.25am: Oh dear, the car is frozen this morning. I’m out of de-icer so I scrape for a while before admitting defeat, returning inside and turning the kettle on. My workplace is a 10-minute drive in good conditions but it has taken me up to an hour in bad traffic.
12.30pm: Usually I try to bring a packed lunch to the office but today I have not. I’ve been feeling hormonal and rubbish so it’s sushi for lunch. With a swift tap of my card, that’s £14 (including 0.50 Monzo round-up) GONE. The sushi is delicious though. Mood slightly improved.
12.50pm: On my way back from the sushi shop I pop into Tesco to pick up some bits I forgot to order on my recent food delivery. Milk for lattes at home, chocolate (did I mention I was hormonal?), a few snacks and some fresh bread. £11
12.58pm: Another supermarket. I go to M&S as I fancy that lovely chocolate squirty cream (hormonal). While I’m there I pick up a juice and some reduced smoked salmon. £5
5.30pm: And that’s a wrap. I still feel rubbish and I’m avoiding unnecessary spending wherever I can. I head home and self-indulgently scroll through TikTok and Instagram for a couple of hours from my bed. Time really does fly on TikTok, dangerously!
7.30pm: In the interest of spending less and saving more, my friends and I declared 2022 to be ‘year of the lentil’. A period of conscious consumption and humble, mindful existence. Obviously I need to counteract today’s sushi so I set about cooking a big dal for dinner, which I’ll divide into containers for lunch next week too. My dal makes dinner and five lunch portions with rice, plus a whole large container for the freezer.
8.30pm: I like to think of myself and G as relatively considerate neighbours BUT if there’s one thing letting us down, it’s my penchant for a nighttime clean. I love the feeling of a clean house for the weekend, it sets me up for a great, restful time. By the time I get around to hoovering it’s gone 11pm…oops. Hopefully our neighbours are out partying like normal people on a Friday.
Total: £30
9.45am: I enjoy a nice little lie-in this morning. My current obsession is the “appropriately unhinged recap of Pretty Little Liars” on YouTube so I enjoy half an hour or so of that before getting up for the day.
11am: I’m up and showered, with my makeup done, when my friend cancels on me. She was due to come over for coffee – we’re both attempting to save money so my Nespresso machine made more sense than anywhere else. I can’t lie, I’m THRILLED. G has already gone out for the day so I’m left home alone with no plans and no commitments. Perfection. I immediately remove my makeup, slip on some loungewear and turn on the TV. I rent a horror film from Amazon Prime for £3.99.
1.30pm: Brunch time! Well, technically, lunchtime. I scramble three eggs (enough for breakfast AND lunch), toast some sourdough and open my reduced smoked salmon (still in date by the way! A real steal). I pop a pod into the Nespresso machine (my true life partner) and steam some milk in my frother. At times like these I can’t help but look at myself and think, Wow, what a picture of millennial entitlement you are. But I really can’t afford a house. It’s not JUST the avocados holding me back, promise…
4.30pm: I’m overcome with the sudden urge to buy a new essential oil for my aromatherapy diffuser. I’m not supposed to be spending but essential oils last for ages and a calming scent can make all the difference to your mood. I give in to the whim and place an order online at Neal’s Yard. £11
10pm: Bed.
Total: £14.99
10.30am: I’m still trying to save money so no fancy Sunday brunch with cocktails today. Instead I opt for instant porridge with maple syrup. There’s a bit of a running joke among everybody that’s seen me make porridge before… I think it’s completely appropriate and the correct way to do it but everybody else disagrees. Boiling water, just a few tablespoons’ worth, straight into dry oats. Stir rapidly before covering the bowl with a plate and waiting for a minute or so until warm but al dente. Add something sweet and perfection. I’ll await your judgement.
1.30pm: Despite my best money-saving intentions, I’ll happily drop a conservative £7 for a bottle of wine on my way to a friend’s house. They’re also trying to save money so we’ve arranged a little Sunday lunch. They have the bigger house, with the bigger dining table, so naturally we tend to gather there more often than at my house. They’ve cooked a beautiful risotto and I’m bringing an average wine. A lovely, affordable end to the week. £7
6.30pm: I’m back home and feeling ready to cosy up on the sofa with G. It’s bitterly cold outside, even just on the very brief journey from the car to the front door. I decide to crack out the M&S chocolate cream for a decadent hot chocolate. We wrap up in blankets and start a new series on Netflix.
9.30pm: After a couple of hours I’m exhausted and head to bed. G stays up to play FIFA with his friends.
Total: £7
8.25am: Surprisingly, I find it a lot easier to wake up on time at the start of the week. I listen to some upbeat music on my commute, manage to avoid most of the morning’s traffic and snag a great parking spot to boot.
11.45am: Work is flying by this morning. I’ve got some very exciting projects on and the creative juices are flowing. I’m very thankful that my job allows me to express my creativity within the confines of the corporate world. I’m a generalist marketer, which is a nicer spin on the fact that I’m mostly a one-woman band. I’m responsible for strategy, lead generation, SEO, website maintenance and analytics, content writing, social media, graphic design, events, PR, internal comms, external comms, employee engagement and anything else I fancy having a go at. I love that no day is the same.
12.15pm: A colleague approaches me to ask if their daughter can do her school work experience with me in the summer. I jump at the idea, totally thrilled to share my passion for marketing with a new generation. Hang on… New generation… I’m feeling old now.
1.30pm: I did in fact remember to bring my packed lunch today. The dal has come through for me and it’s really hitting the spot. I’ve got a lovely warm lunch at a very, very low cost. However I still end up spending the equivalent of a Tesco meal deal as I’ve forgotten my brother’s birthday and need to pop to Paperchase to buy him a card. £3
5.15pm: My contractual hours are 9-5 but when I’m in the office I tend to stay until around 6pm or 7pm. Once you’re in the swing of things, there’s no point slowing down. That being said, I absolutely do make the most of the advantages of being in a one-person team by finishing early when I need to. Head 15 minutes to my mum’s house to see my brother for his birthday.
8.05pm: I call upon every ounce of self-control to avoid the temptation of the TWO drive-through McDonald’s en route from my mum’s house to mine. I’m yet to try the McPlant and as a pescatarian (lazy vegetarian) I feel it’s my duty to show my support and use my purchasing power to make sure it stays. But not when there’s a fridge full of food waiting for me at home.
Total: £3
7.15am: Wake up and start getting ready for work.
11am: I’m in the office again today, three days in a row – what a streak! I try to consolidate all my meetings for the same day so that I can come in and power through them before retreating to my house to get on with tasks more suited to solitude. This morning I’m training a group of new starters on social media usage and best practice.
6.25pm: I get super anxious about the car being low on petrol and when I turn the ignition I see that the dial is fast approaching the dreaded E. Don’t get me wrong, the warning light is far from being triggered. But I’m being triggered. I drive about 15 minutes in the wrong direction from home to get petrol from my favourite location, which is usually a good lot cheaper than anywhere near to my work or home. £43.72
7.30pm: I get home and G is already eating so I set about cooking fajitas for one as I MUST use up these peppers before they go bad.
8.25pm: I’ve given myself a little project to work on in the time that I might otherwise have spent in the pub with friends, back when I was spending money like it was going out of fashion. I’ve decided to try to jump on the NFT bandwagon and I’m slowly working on a collection of female nude digital studies. I know the chance of making a sale for anything – let alone the massive sums you see published in the media – is incredibly low but it’s a project that’s more for myself. If one were to sell, that would be amazing but completely unexpected. I just know that if I didn’t try it out, I’d kick myself later. I spend an hour or so at my computer, drawing.
Total: £43.72
7.15am: Alarm sounds and I start my morning routine ahead of the office.
9.20am: As I might have mentioned, I’m saving money (broken record or what?) but sometimes a flat white is necessary. I pop out of the office to grab the world’s smallest to-go cup. Honestly it’s tiny. In terms of cost per millilitre, this purchase is insane. It does taste superb though and helps me power through the next few hours of work. £4
1.30pm: By lunchtime the chaos of the morning has subsided and I’m feeling on top of things. So with my meeting over I decide to head home. On my short walk from the office to my car I linger a moment too long at a beautiful window display filled with the dreamiest skincare. I consider my bank balance and snap straight out of it.
5.45pm: I’m feeling itchy to do something this evening as cutting back my costs seems to have rendered my personal life extremely boring. I’m finding it hard to have a nice time without spending too much money. I start to think, Wow, I need to get out of the house! but then find myself opting to stay in rather than considering ways to have fun without the expense. I text my friend, asking if she wants to hang out this evening, and she immediately replies: “YES! I’m SO bored.” It’s not just me then, good.
8.30pm: Enjoy a lovely evening with my friend, gossiping and drinking plain tonic water, sans gin, in an effort to cut back on drinking in addition to spending. We get a hankering for chocolate so I drive us to Aldi. My friend buys the treats (a tub of Pringle-like crisps and two bars of choc).
10pm: Bed.
Total: £4
8.30am: I’m ashamed to say that when working from home, this is the time I set my alarm for. That’s right, I’m not even up yet…still hitting snooze.
9.05am: G has been a full-time home worker since his company closed his office location during the first lockdown. This means that he has first dibs on our home office/spare room. Usually he’ll let me enjoy the luxuries of the second monitor and the office chair two days a week but today he’s exercised his veto as he’s got too much on. I sulk a little as I set up my laptop on our tiny Ikea dining table – the same one we shared as a desk for six months in 2020.
11.20am: While I WFH, I’m in the kitchen doing a little stocktake of my baking cupboard as I’ve offered to bake cupcakes for a friend’s birthday. I bake as a hobby, mainly cupcakes. I’ve been told more than a few times that I should make a little side-hustle of it but I’ve got no intentions of doing that. I sometimes think that our generation has become too obsessed with monetising hobbies. Not every aspect of your life needs to be contributing to an income stream for it to be valuable. I notice I’m very low on piping bags and make an Amazon Prime order. £7
1pm: I try to channel a small bit of alternate me and get out of the house for a swift walk at lunchtime. Just a quick circuit around the block to get some fresh air. It’s not quite exacting enough for physical activity but it’ll do.
5.10pm: Mr Bezos gets another £2.99 as I place an order for a paperback after my friend recommends a book. I totally shouldn’t as I’ve got Audible credits to spend but I do. Some books you just want to read rather than hear… Anyway, this will hopefully help me to resist the temptation to go out for cocktails this weekend.
7pm: With both of us logged off for the week, we retreat to the sofa for some TV and snacks. I pop open a bottle of prosecco left over from Christmas and consider how much comfier it is to enjoy some bubbles in my PJs, under a blanket, than in an obnoxiously expensive bar. Part of me is definitely still thinking, Yeah, but you love obnoxiously expensive bars. Mind over matter.
11pm: Sleep.
Total: £9.99
Food & Drink: £44
Entertainment: £3.98
Clothes & Beauty: £0
Home & Health: £11
Travel: £43.72
Other: £10
Total: £112.70
Conclusion
“This week felt very positive for me. The total was a little lower than it might normally be. I didn’t order any food shopping during this seven-day window as my shops fell just before and just after. Given that, it’s a little surprising that I still managed to rack up £44 on food and drink! This is probably the biggest area for my overspending historically as I love to buy the freshest, best quality food and love eating out. This week is definitely better than some previous weeks but shows that I have a long way to go in my quest to cut down. One thing that’s struck me is just how mundane my routine feels now that I’m not gallivanting around on expensive days out and evenings with friends.
In a post-lockdown world it feels a bit too easy to retreat to the confines of my house and isolate. As I continue my saving journey I definitely need to have a long think about some affordable ways to have fun. At this point my brain is hardwired to associate socialising with spending lots of money. Of course this doesn’t have to be the case and it’s something I’ll have to work hard to unlearn. Overall I’m feeling really motivated and inspired to keep at the budgeting and tracking. I don’t want to be too harsh on myself that my week of spending wasn’t perfect because just like a real diet, a financial diet needs to be sustainable in order to work. At the end of this month I’ll be set to pay off a significant chunk of my debt thanks to the cutbacks I’ve made and money I’ve saved so far. The thought of that is spurring me on and I’m excited to be #debtfreein2023.”
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