Unlock the Secrets of Financial Well-being Through Real Stories

Occupation: Associate Project Manager in Utilities

Meet our 26-year-old protagonist who has called Durham home since moving for university. Five months ago, a significant career change took place, transitioning from a geotechnical engineer to an associate project manager in the utilities sector. This new role offers a slightly less lively work environment and a considerable commute, yet the salary increase and career progression opportunities make it worthwhile. Despite missing the outdoors, the individual continues to thrive in a male-dominated industry while leveraging the knowledge gained on-site.

Two years ago, this person bought a little house and is now dedicated to rebuilding their savings with a focus on Financial Independence Retire Early (FIRE) or at least Financial Independence (FI). Naturally frugal, they understand that while money isn't everything, it provides the luxury of choice and contributes to overall happiness.

Monthly Expenses

Housing costs stand at £376 per month through a mortgage. Thanks to overpaying the maximum amount in the past two years, the bank reassessed the payment and reduced it. Although the mortgage might seem high to some, it's a trade-off for the perks of the northeast region with its lower house prices. There are no loan payments, and the individual has been contributing the maximum matched percentage to their pension since starting work. With a total of just under £18,000, they now pay 6% while the employer contributes 12%. Their savings are diversified, with £23,000 in a high-interest savings account, £20,000 in stocks, £11,600 in an S&S LISA (which they used for their house purchase and will hold until retirement), and £5,000 in a one-year fixed term deposit at 5.1%.

Monthly utility expenses include £17.69 for water, £76 for council tax, £10 for broadband, and £35-70 for gas and electric (split evenly). Other monthly payments amount to £1.95 for a 35GB SIM only. Subscriptions include £5.99 for Spotify, £0.99 for iCloud, and a £30 gym membership. Some subscriptions are annual, such as the £59.88/year Freetrade basic account and the £54.99/year Strava Premium.

Growing Up and Money

During childhood, the individual had little awareness of their mother's hard work to afford private education. As a single mother who left school at 16, she held down five jobs or side hustles including working at a care home, cleaning houses, childminding, selling baked goods at car boot sales, and doing ironing in the evenings. This taught the person the value of working for money. As they grew older, their mother began educating them about important financial concepts like emergency funds, passive income, and the stock market.

Moving Out and Financial Responsibility

At 18, the person moved out for university and returned during holidays. After graduating at 21, they got a full-time job and became self-sufficient. They have been financially responsible for themselves since then and can handle any financial aspect independently. However, their mother still sends £100 per month and often covers large bills like a new boiler and roof. She believes in passing on money early to help with saving and utilizing compound interest, and this has become an important part of their financial life.

First Job and Its Reason

The first job was babysitting for a neighbor who asked. Although the person loved it, their mother emphasized the importance of good grades over earning money. As a result, they were paid £5 per week to clean the bathroom instead.

Worry About Money

Despite being constantly aware of their finances and recording every expense, there is no worry. With a large emergency fund and income from the spare room, they feel secure even in the face of potential job loss.

Passive and Inherited Income

There is no inherited income, but they have a lovely lodger, K, who pays £130 per week for the spare double ensuite, which is a great deal for the area. This not only helps with the mortgage but also saves on single tax as they split the bills. Additionally, their mother gifted them £40,000 when buying the house, enabling them to access a lower interest rate and avoid selling a significant portion of their stock portfolio.