Household Budget Series - Part 3, The Millennial £30,000 household income
Each and every one of us has a personal money journey. Here at MoneyNotes, we’ll be producing a three part series to take a deeper look into how some of our MoneyNoters manage their different monthly budgets.
Part 3 – Introducing the Millennial
Millennial - the avocado toast eating, unicycle riding me me me generation according to many. It seems that just about everyone (particularly those who are born outside of the millennial timeline) has a generally negative view on millennials from how their penchant for brunch is blocking their ability to get a foot on the property ladder to how they expect to work less and play more but still enjoy all the perks that previous generations benefited from.
However according to research from the Resolution Foundation, UK millennials have found themselves on the receiving end of a severe decline in living standard improvements in comparison with other generations. This means that income, employment and home ownership rates have all been severely impacted, and really does discredit Linda*, the baby boomer in HR’s theory about how millennials' love of eggs royale is the only thing stopping them from saving that all important deposit.
So who’s right? The thinktank, the baby boomer or neither? We decided to speak with a millennial to get the lowdown on their budget and priorities.
1. Thanks for speaking with us. What’s your income? £30,000 a year working full time.
2. What type of hours do you work? Well, my contract says 9:00 am to 5:30 pm but I think I can count the days I’ve worked those hours on one hand. I usually get in around 8:30 am / 8:45 am and will often be there after 6:00 pm or 7:00 pm. I tend to work later as I really don’t like taking work home with me, though this can’t always be avoided.
3. Is it just you in your household? I recently made the tough choice to move back in with my parents. I was renting a flat with friends but things constantly felt tough and I was struggling with rent and bills. Living at home isn’t ideal, but at least I have some wriggle room at the end of the month.
4. How much do you actually think about budgeting? I’m actually gearing up to start working as a self employed freelancer so I am budgeting to give myself a bit of a cushion in case that doesn’t work out. It’s a big part of the reason I moved back in with my parents so that I could take this very big leap! I really love working in the media industry and would not want to do anything else. However, as the industry is so popular, good, well paid jobs are like unicorns. Since I want to carry on doing what I do, and earn more money working for myself seems like the best option.
5. What does your household budget look like: See below
|The £30,000 Budget - The Millennial|
|Total Household Income per year||£30,000.00|
|Monthly disposable Income||£1,905.89|
|Contribution towards household rent and other bills||£ 350.00|
|Daily Coffee||£ 50.00|
|Mobile phone||£ 45.00|
|Eating out||£ 275.00|
|Holidays savings||£ 90.00|
|Charitable giving||£ 20.00|
|Credit card loan repayment||£ 250.00|
|Saving towards business||£ 350.00|
|Total Expense||£ 1,855.00|
|Buffer at the end of the month||£ 50.89|
6. What’s your biggest indulgence? I do enjoy eating out, and nights out with friends. I don’t see the point in working as hard as I do and not getting to enjoy myself. i know people will say this is a typical entitled attitude but honestly I think it’s important to try and find the time and money to do the things that you love as this can also motivate you to keep working hard.
7. Are you spending too much on going out? I’m not careless and I wouldn’t for example spend my food budget or savings on a night out but I do always make sure I find the pennies to have a good time. I don’t think saving the money I spend going out would magically allow me to put a deposit on a flat. Even with schemes like help to buy I’m going to need around £15,000 to even try to get a foot on the property ladder- even if I don’t go out for the next three years I don’t think I will save that!
8. If not for a home of your own, what are you saving towards? At the moment I’m saving to launch my own business. After that I want to focus on getting my own place, even if that just means finding somewhere to rent. I really want to save towards a deposit for a flat but honestly it does sometimes seems pointless when I look at how much I will need.
9. What part of budgeting do you find the hardest?
Honestly I don’t actually find budgeting that hard - I just see it as a means to an end which is me being self employed, making a good living, and having a place that I can call my own. I try not to focus on the things that I may be missing and instead think about my goals which makes it all a lot easier.
10. Are you putting something away towards your pension?
I have a workplace pension through my employer so have been putting in 2.4% of my salary. I know you all at MoneyNotes will baulk at this, but my pension really isn’t my biggest priority right now. Retirement is still a long way away and I will think about it sometime in the future.
* The name has been changed - we don't actually know any baby boomer Lindas that work in HR.