Katie's financial journey is a fascinating one, revealing the challenges of managing money despite a seemingly high income. The struggle is real, even for those earning up to £10k a month!
Katie, a chartered psychologist, business owner, and mum, dreams of becoming debt-free but grapples with the temptation to splurge on date nights and family outings. In this Wallet Watch series, she opens up about her financial situation, offering a glimpse into how she and her husband, Andy, navigate their finances.
The couple resides in Cheltenham with their two daughters, aged six and ten. Their joint monthly income reaches £10,000, yet they face the challenge of managing significant expenses, including a £150,000 mortgage and a £100,000 personal loan for home renovations. Katie's business, Dr Katie Therapy, established in 2018, contributes to their income, along with her husband's work as a cyber security manager.
Katie's weekly diary provides a detailed account of their spending:
Monday: Katie works freelance from home, keeping costs low. They cook dinner at home and may spend the evening watching Netflix or helping the girls with homework.
Tuesday: Katie travels to London for a podcast appearance, opting for a bus ticket instead of a pricier train ticket. She spends the night in a hotel, totaling £178 for the day.
Wednesday: Katie's podcast appearance in London goes well, but she doesn't get paid. She spends the evening networking at business masterminds groups, which cost £62.50 per week.
Thursday: Katie works in a private school, bringing her own lunch to save money. She reveals that her children attend a private school, costing £1,600 per month, due to their eldest daughter's potential neurodivergence and the family's preference for a holistic learning environment.
Friday: Katie and her husband enjoy a date day, typically spending £30-£50 on lunch. They take the kids out after school, spending around £100, making it their 'splurge day'.
Saturday: The family engages in various activities, including football and dance for the kids and a coffee date for Katie and her husband. They spend £60, and Katie mentions their recent focus on budget-friendly wild camping in the UK.
Sunday: The family spends £230 on their weekly Ocado shop, which covers most of their groceries. They're doing Dry January, reducing alcohol expenses.
Despite their income, Katie admits that budgeting is a challenge. To reach her financial goals, she considers cutting back on date nights and weekend lunches, which could save over £200 per month. She's also advised to treat savings like a bill, setting up a dedicated high-yield savings account for their Canada trip, and swapping Ocado for a cheaper supermarket.
But here's where it gets controversial: is it fair to judge Katie's spending choices when her income is so high? Shouldn't she be able to enjoy her hard-earned money? Or is this a classic case of lifestyle inflation, where income growth leads to increased spending? Share your thoughts in the comments below!
