Money Diary: A Programme Manager On 42k

This week: "I'm a 30-year-old living and working in London. I've always saved and I'm really conscious of not allowing lifestyle creep. I have not increased my spending at all since my recent pay rise; the extra just goes into savings. Aside from rent payments, my outgoings during COVID dwindled dramatically so I was able to save a significant amount. Combined with having more headspace during lockdown, this led to me looking into shared ownership and I managed to buy a flat through this scheme with some inheritance to help me with the deposit. I’m grateful for my flat every day and I love having my own space after spending many years in extremely grotty shared flats (how did we live like that?). I have spent most of my working life in the charity sector and despite the more limited earning opportunities, I don’t plan on changing this any time soon. I really value the work/life balance and I find it much easier to wake up for work knowing I am making a positive difference to people’s lives."

Occupation: Programme manager
Industry: Charity
Age: 30
Location: London
Salary: £42,000
Paycheque amount: £2,500 after tax and deductions
Number of housemates: None
Pronouns: She/her

Housing costs: I own my flat through shared ownership so I pay £199.50 mortgage on the percentage I own and £702 rent on the rest. I’m grateful for this scheme as I would never have been able to get onto the property ladder otherwise. 
Pension? About £100 comes out of my salary each month towards my pension. My employer contributes more but I am not sure exactly how much.
Loan payments: I am on the student loan Plan 2, which is deducted from my paycheque each month (about £100).
Savings? About £11,000 across various savings pots.
Utilities: £79 council tax, £15.99 electricity, £54 energy (although this should go down as I am massively in credit), £20 water, £25.28 wi-fi.
All other monthly payments: £6.50 SIM-only phone plan, £17.50 contact lenses. Subscriptions: £10.99 Netflix, £3 family Spotify plan, £8 gym access.

I completed a bachelor's degree at uni in London. I started the year that fees rose to £9,000 per year and the amount I repay each month doesn’t even cover the interest so I don’t anticipate ever being able to pay it off. I managed to get a decent maintenance grant, which helped, and I lived in some pretty awful shared flats, which kept my outgoings very low. I think that living in London taught me to be extremely frugal and to find the best deals and anything free!

I grew up comfortable but I think my mum worried about money as she didn’t earn a lot. My dad was more relaxed about it but I was always encouraged to save by both of them and have continued to have that mindset throughout my life. I remember my dad telling me when I left for uni how to look for the best deals at the supermarket, and he was always very happy to chat about money and advise me if I had questions. I wish we were taught more at school though.

I moved out at 18 to go to uni and never moved back permanently, just for summer breaks. 

I would say when I got my first full-time job a few months after graduating. From then on I was completely financially independent. 

I did a mix of babysitting and retail work as a teenager and during uni summers. This was to save money and gain experience.

I don’t necessarily worry about money but I think about it all the time. I set myself a strict budget each week, which enables me to be in the best position to save, and I have to plan purchases carefully around that. I am also conscious of the future. I would like to be able to pay more into my pension as well as maybe buy a house with my boyfriend down the line, so I want to keep saving as much as I can.

Yes, I inherited £50,000 from a family member, which I put towards my flat deposit.