University worker who earns £4,000 a month and hopes to retire at 50

In our How I Manage My Money series, we want to find out how people in the UK spend, save and invest to cover their costs and achieve their goals.

This week we speak to Fran Marie McKeown, 31, who lives in Brighton. Fran Marie, who works at a university and runs her own YouTube channel, has always been good with her money. She is a fan of investing and the Financial Independence, Early Retirement movement and would like to retire at 50 with a £500,000 pension pot. Fran Marie will soon say goodbye to rented accommodation as she has bought her first apartment with the help of a Lifetime Isa.

Monthly budget

My monthly income: I take home around £2,000 from my full-time job as a curriculum and assessment officer at a university. I also earn between £1,000 and £2,000 per month from my YouTube work and partnerships with companies, although this varies.

My monthly expenses: Rent: £600; Council tax: £85; groceries, about £250; electric, £125; water, £25; Broadband, £13; health insurance, £55; ClassPass, £29; BookBeat, £5.99; Microsoft, £9.99; Wix, £20; Netflix, £4.99; Eating out, £100. I contribute £200 to my work pension every month. I try to put at least £500 into investments and £500 into savings each month, but this can be higher.

My parents taught me how to manage my money from a young age. When I was 16, they opened a bank account for me and encouraged me to get a part-time job, which happened to be at a bank. My parents always encouraged me to save my pocket money and later part of my salary in a savings account.

I work full-time at a university as a curriculum and assessment officer and take home around £2,000 a month. Since I’ve always been interested in personal finance, I also have my own YouTube channel where I talk about everything from savings accounts to budgeting. The amount of money I make from my social media work varies, but is generally between £1,000 and £2,000 per month.

In my twenties, I realized that my money could do more for me and I became interested in investing and the concept of Financial Independence, Retire Early (FIRE).

I like the idea of ​​financial independence because it allows you freedom of time, which is one of the most valuable things. You can spend your time however you enjoy. What is also attractive is the intellectual freedom that comes with knowing that your own time is your own.

Read on

I typically add £500 to my savings each month and can put anything between £500 and £1,000 into investments each month. I have a number of savings accounts, checking accounts, and investment accounts, as well as a few rewards credit cards. I invest in a share and share Isa with Hargreaves Lansdown, but also invest with Trading 212, Freetrade and Wealthify. I also have a Moneybox Lifetime Isa.

I didn’t start investing until I was 25, but wish I had started earlier. The earlier you start, the more benefits you can enjoy from compound interest. reading The psychology of money by Morgan Housel made me realize that time is the most powerful force in investing.

I add £200 a month to my work pension and my employer doubles my contribution. I would like to have a pension fund of £500,000 by the time I retire. I plan to retire at age 50 and hope to achieve this by investing as much as I can now.

I think it would be very difficult to rely solely on the state pension later in life. I don’t think it’s sufficient and I think the statutory retirement age is too high.

I live in an apartment that I have been renting since the beginning of 2020. The rent has gone up since I’ve lived in the apartment, but only by about £100 a month. I recently bought my first apartment, so I won’t be renting for much longer. I managed to save £25,000 for a deposit. Because I have a Lifetime Isa, I was able to benefit from government bonuses of around £5,000 on my deposit for several years.

While I wouldn’t say money motivates me, I don’t want to have to worry about it. So I try to make sure I don’t have to worry about it by doing things like creating a budget and creating an emergency fund. I am happy with what I earn. Building wealth is not just about what you earn, but also about what you do with the money. You may earn a little or a lot, but being able to save a little each month will help you build wealth. I’m trying to find a balance between saving as much as I can and enjoying life.

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