Oh, oh, oh, I had to read this:
Money expert defends the spending habits of woman, 30, who struggles on £40k salary
The woman concerned is an accounts director for a marketing company and lives with her parents in Bournemouth. She says she has to ask for £100 to £500 from her mother to tide her over every month.
I am gobsmacked, but obviously cannot judge because I don’t know her circumstances or outgoings. I also appreciate that commission based salaries fluctuate and some months will be leaner than others.
However, if she is living with her parents, high rents and household expenses such as council tax and utility bills surely would not apply.
Yet a money expert defends her spending habits.
In order for anyone to feel sympathy, perhaps readers should be aware of what some of them are.
Bournemouth is not that far from my home town of Poole, and one of the reasons we left the area was because it was simply too expensive to live. We were both working and had a car each as it was cheaper than irregular public transport, we worked in different directions and different hours which didn’t coincide. It was a rat race, soul destroying to see our money making fat cats fatter, and we got sick of living our lives for other people.
When I say I’m from Poole, people automatically think of Sandbanks (Millionaire’s Row) and Canford Cliffs (Celebrity Alley).
I was born in a council house, there was never a lot of money, but we had everything we needed growing up and I had a happy childhood.
Hubby and I could not afford to move back there as a one bedroom purpose-built apartment is way beyond our budget, especially now. Our income is limited as we don’t qualify for a state pension for another three/four years respectively and just have our works pensions plus my 2 small annuities. Neither of us pay tax on our income, which is nowhere near the single person’s allowance currently standing at £11,850 pa.
It costs us about £5000 a year to live in our home, £1300 of that is Council Tax (which will rise by about 8% next year), £550 heating and electricity, £360 water/sewage, £150 for buildings and contents insurance, £350 for life insurance, and the luxury of broadband at £360.
Food at the moment has totalled around £1600 to date for the two and a half of us, and our car so far has cost £1500 to keep on the road as we’ve had a major service, new tyres and brakes.
Maggie has not been well and we have spent almost £600 on her care this year, but it has been budgeted for as we no longer have insurance for her.
We have to pay for our dental care, get no concessions for eye care other than a free eye test though we do get free prescriptions.
We don’t have a mortgage now as I halved it with my redundancy pay in 2001 and a year later when Hubby lost his job too, we cashed in our endowment policy which had been stripped of all profits and paid off the rest. It left us with about £200 in the bank and was the best thing we ever did. When we sold up, the proceeds were all ours and we were sensible when we bought our next house. The property market dipped and although not as badly pro rata as the negative equity we got caught with in the 1990s, we lost about £50K which included our investment in improvements in the 7 years we were there.
We have no loans or overdrafts to keep on top of, and should we use a credit card which has a minimal limit, it is paid off in full as soon as we get the statement, if not beforehand.
We don’t drink or smoke, socializing is walking the dog together, shopping or for me darts once a week, where I drink soda and lime at an average of £1 a pint.
That is us.
We manage on a fraction of this lady’s £40K salary, and there are two of us.
I am a good money manager. I have had to be as we never had a lot, and still don’t.
This lady is an accounts director, so should have a good sense of money……. or perhaps not. I don’t know.
But something appears out of kilter here if she is living at home and can’t cut her cloth to suit her purse/income.