Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever, it's important to understand our money, but so many of us feel as if we don't have a handle on it – or worse, feel anxious and scared about money.
So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will give her easy tips on how to tackle it.
To submit your own anonymous money diary and get top expert tips tailored to you, simply submit your entry here. And don’t forget to join GLAMOUR’s Facebook group, Money Matters, for more exclusive finance content.
She works part-time on what is effectively a zero-hours contract. Each Monday, she finds out whether she is needed in the cafe, which dictates how much money she earns for the week ahead. She really enjoys her job and wants to progress towards a management role.
She earns roughly £10 per hour, which doesn't feel like enough to progress her life with. However, Iris has been managing to save and now has about £1500 in the bank. Her parents are covering rent (for now), but ideally, she wants to move into her own place and still have enough money left over to socialise with her friends.
Iris has a student loan but hasn't started to pay it back. She's also confused about how much tax she should be paying.
MY ACCOUNTS
Current account: £300
Savings account: £1,500
MY INCOMINGS
Annual salary pre-tax: £16,000
Annual salary post-tax: £14,503
Monthly wage pre-tax: £1,333
Monthly wage post-tax: £1,208
Other incoming payments: £0
MY OUTGOINGS
Rent/mortgage: £0
Bills: £0
Splurges: £120
Other: £100
Any student loan/credit cards/overdrafts etc: £0
MY MONEY THOUGHTS
My worst money habit: Not checking my bank account (if I can't see it – I can't let it bother me!)
My biggest money worry: Having to pay rent.
My financial hopes for the future: To be on a full-time salary and be able to pay rent for a decent property.
Current money mood: ☕️🤦🏾♀️💪
Let's talk money.
WHAT MONEY EXPERT MAKALA GREEN SAYS:
Makala Green is a multi-award-winning Chartered Financial Adviser at Schroders Personal Wealth and has over 18 years of experience in the financial industry. She understands managing money can be complicated and confusing, which is why she is passionate about making financial planning more accessible for all. She is also the Author of The Money Edit; a no shame no blame guide to taking control of your money.
Push for a pay rise
It can be an awkward conversation, but if you don't ask, you don't get! Surprising as it sounds, sometimes asking is the key to reminding your company of your contribution and why you deserve more pay. However, be ready for some negotiation and discussing additional duties and responsibilities. You want to be prepared to list your good work, including positive customer feedback and praiseworthy service. In other words, don't be afraid to speak highly of yourself and blow your own trumpet.
Pursue a promotion
You may not see this as a viable option right now; however, it won't hurt to see if there are any opportunities for promotion in your organisation. Although many employers are feeling the economic squeeze, and there may be no new positions coming up, it's worth considering the idea and whether it could be for you. It could be a brand-new role that meets new customers' demands. Start by listing your achievements and ways you have developed within your role to boost your confidence and prove your work worth. You can also reflect on any productivity gaps, identify any workplace problems that need solving, and show how you could help to support them. If you still need some more time or are not ready, make time to build your skills in preparation for promotion to show you are serious.
Job hunt for higher pay
Have you considered looking for a job in the open market recently? It's always worth a look as you might find similar roles with higher salaries in other companies. Research has shown that people who change jobs frequently have the potential for greater earnings! You can look at; Indeed, Total, Reed and Glassdoor websites to compare job roles, salaries and company benefits in your local area. Even LinkedIn can be a great place to seek new employment. Get connected with family and friends and seek introductions and recommendations to boost your profile and look more attractive to potential future employers – it's a win-win.
Chase your career goal.
Finding your dream career can be challenging, especially when you have no idea where to start. However, ignoring or not discovering your destined desires can make you unhappy and unproductive. A simple step to finding your work passion is to think about; what drives you. What makes you tick? Start by making a list of your top three things. Next, consider; what issues you feel particularly excited about. What gets you out of bed every morning (smiling)? Alternatively, consider things you don't particularly admire and aim to remove them from your daily work routine. Although you may not be able to act on your dream role right now, you can certainly start planning towards it.
Budget for the future
Having a budget helps you see where your money is going and plan for future changes, such as leaving home. As you are at home with parents currently living 'rent-free', it's about making the best use of that money. You can put aside a set amount of money each month for rent, bills and expenses even though they don't exist. It will give you an idea of what life would look like when you choose to leave home without too much of a reality shock when you do. It will also help you build up a good savings pot towards your future and support you in reaching your financial goals. Record how much money is coming in; if your income is irregular, you can calculate an average amount using the last three months' salary. You can also do some overtime (if available) to boost your income to spend more on the things you enjoy, such as socialising with friends. – it's all about striking the right balance.
Let's talk about money.
