Ruth Young, 26, is a marketing manager in Newbury, Berkshire. She bought her first home, a two-bedroom apartment at Newbury racecourse, through the national shared ownership scheme just over a year ago.
I have a relaxed, yet healthy, approach to money. I know when to treat myself and when to be more frivolous, but I also know what I can afford and when I should put the debit card away. It hasn’t always been this way. A few years ago I was scared to even look at my bank balance and would try to avoid it at all costs, until I decided to get on top of things. Just knowing what my bank balance was has made a big difference.
Until I bought my own place, I was a commitment-phobe when it came to my living situation. I travelled for nearly two years, lived at home for a while, rented a room with an ex-boyfriend, then rented a lovely two-bedroom apartment with a friend for nine months – until she decided to move in with a partner. Rather than carry on renting, I finally plucked up the courage to try and get on the property ladder and discovered that there were some shared ownership apartments coming up on the development where we lived.
Now, my main monthly outgoings are my mortgage (for half my home), rent (on the other half) and a service charge. Bills – such as electricity, heating and water – also take up a large proportion of my expenditure, which I manage and pay for myself. Properly managing bills was one of the many things I was nervous about when buying my property. I avoided it at first, but then I realised that the longer I left it, the more expensive they were getting. It’s best to set payment plans up as soon as you move in, to make sure that outgoings are manageable and even throughout the year.
Because I live in a new-build house on a new development, I’m limited in the suppliers that I can choose for electricity and heating, but I always make sure I’m on the most cost-effective tariff available. After bills, my money goes towards things such as wifi, Netflix, Amazon Prime, petrol and my mobile phone. Eating out and Asos are my two biggest non-necessities.
I use several apps to simplify my money. I used to work with clients in the fintech industry and would always try to keep on top of new finance apps. I set up a Monzo account as soon as I heard of it (who can resist a shiny new card where you can categorise spending with emojis?). But it was also great to track my spending by category, set up budgets in the app, track against these and to be able to change my pin and block my card instantly.
I’ve recently reverted back to using my normal debit card from my main current account, but with the assistance of two AI assistants on Facebook Messenger that are linked up to my bank. Cleo tracks my spending against categories I set and rounds up my spending to create some savings, and Plum automatically works out how much money I can move into a separate savings account, putting away a few pounds here and there every couple of days. I also use online banking service Revolut or my 0% credit card for holidays or travelling.
I don’t have a strict budget – I prefer to just keep an eye on what I’m spending through these tools. I generally know if I’ve spent too much that month on clothes or eating out and whether I should be cutting back. I’ve recently discovered the 50-30-20 rule, which I’m looking forward to trying over the next few months. Fifty percent of your salary should go to “needs” (mortgage, bills, groceries, petrol), 30% to “wants” (eating out, shopping, entertainment), and the final 20% should go into savings.
I’ve also recently stopped doing a weekly food shop, to save money. I live alone and often spontaneously see friends, family, and my boyfriend throughout the week in the evenings, so I used to end up wasting food and money with a weekly shop. I now only buy food when I know I’m going to be eating at home, which actually saves me money. I can’t be trusted in the aisles of Tesco alone! However, years of living with my cost-conscious parents means I’m good at turning off the heating and lights whenever I leave the house. I also love my smart meter, which sits in my kitchen and not only tells me the time that I’m making a cuppa in the evening, but also how much I’ve spent that day on electricity. It’s usually a good sign that I need to get out of the house if it ever goes over £1 in a day! I also swear by Giffgaff to keep my phone costs down.
Living on your own comes with pressures, and managing a house and the bills that are associated with it can feel daunting. But if you take them in manageable steps and keep on top of your bank balance with what’s available – or not! – it can actually be really enjoyable.
Want to relieve some of the pressures of life admin? Download the Meerkat app and set up EnergyCheck so you’ll never have to spend time searching for better energy deals again. Customers of Compare the Market who purchase a qualifying product can also use the app to get two-for-one at restaurants and cinemas for a whole year.
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