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 tell her easy tips on exactly how to tackle it. So, take a seat, and let’s talk about money…
Let's talk money…
MY ACCOUNTS
Current account: €141
Savings account: €108
MY INCOMINGS
Annual salary pre-tax: €27,200
Annual salary post-tax: €21,000
Monthly wage pre-tax: €2,266
Monthly wage post-tax: €1,750
Any other incoming payments: €0
MY OUTGOINGS
Rent/mortgage: €400
Bills: €650
Splurges: €100
Petrol: €100
Food: €200
Phone: €75
Insurance: €155
MY DEBTS
Car loan: €243 a month (€11,495 remaining)
Personal loan: €200 a month roughly on laptop (€912 remaining)
MY MONEY THOUGHTS
My worst money habit: Eating out when there's food at home.
My biggest money worry: Never having my own place.
My financial hopes for the future: Earn €100k after tax per year.
Current money mood: 🙈😩🥴
Make your dreams a reality with these cash-saving tips.
WHAT MONEY EXPERT ALICE TAPPER SAYS:
The undervalued things
When people say they want to earn more, our mind usually goes to side-hustles. That’s one option, but I’d argue that we’ve taken this whole side-hustle thing a little far. It’s no coincidence that the term has been coined in the last 10 years or so; not because humans have rapidly evolved to be more entrepreneurial and aspire to become ‘ShEOs’ or ‘boss ladies’, but because earning money beyond your 9-5 has become a necessity for many to have a comfortable life. A whole industry has been established in helping people to ‘be their own boss’ and in turn, we’ve started to undervalue things like good employers, a secure job that provides a good life and overvalue things like entrepreneurship, freedom from employment and billionaires. The truth is, the best way to build comfortable wealth is still with a good job.
You're young
If you were 35 and worried about how you might support your family, my answers might be different, but you’re SO young. Ignore the Insta-myth of homeownership before 30 being a thing; the average first-time buyer in the UK is 33.1, you’ve got years! It’s also entirely normal not to have substantial savings at your age; your 20s are a time for exploration, discovery and just a little bit of reckless spending. Be patient, we’re all a bit jealous…
Career planning
So my suggestion for upping your income isn’t a sexy one but it’s the more practical option. As opposed to spending your time outside of work trying to make more money, decide to really make the most of the opportunities you have within your existing workplace. Here’s how to do that: Firstly decide whether your current employer is ‘good enough’ - can you see yourself happily working there for the next 3 years? Secondly, establish whether there are career opportunities you’re excited by and thirdly, consider whether there is anyone more senior to you that could become an ally or mentor in your career journey. If the answer to all of those questions is a yes or a maybe, commit to giving this employer your all for now. Find a mentor, get feedback from your manager and ask how you can progress. If it’s a no, there’s no need to jump ship right away but start to keep an eye on opportunities elsewhere.
The must-haves
I appreciate that so far my answers aren’t exactly quick fixes and you want an idea of what can you do right now to make a difference. One way to do that is by reflecting on your spending and making a realistic spending plan. Rather than vowing to just ‘spend better’ and cutting out ALL the things you love, decide on 2-3 ‘extras/non-essentials’ that are really worth the money to you; the non-negotiable stuff that brings you joy. That might be your morning coffee on the way to work, weekends away, brunch out on a Sunday or it might be something else.
The nice-to-haves
Next, ask if there’s some stuff you could happily do without or get for cheaper elsewhere. Do you really need another co-ord set? What about the Drive-Thru Maccies on the way home from work? Do these things meaningfully contribute to your quality of life? It’s not to say they’re out of the question but you might want to cut back just a little. It can be helpful to go through your bank statement for this activity. Go easy on yourself though and enjoy this time.
