I welcome Money matters: GLAMOR’s weekly dive into the world of finance – your finance. These uncertain times have reminded us of how much to understand our money matters and yet; how little we talk about it and how much we are immersed in secrecy.
It stops now.
We want to break the ban on this money, we are talking about everything from personal finance. Money Saving Tips To ISA And Pension. Each week, in a unique situation, a woman will honestly analyze her financial affairs, and our specialist will tell her simple ways on how to deal with it. So, grab a kappa, sit down, and let’s talk about money;
Rhea, 36, is an HR manager in London who earns well but is unhappy with her role. He has been offered a new job in the charity sector that would mean a pay cut and is worried about what his family’s finances will mean. Here’s his money month
I live in London with my husband and daughter. We Bought our house Five years ago. Of Mortgage It was a long time ago but we are very happy to have a place now that we have a little girl. We both have good jobs – he earns more than I do, but between us we bring in less than 130k a year.
I have been in my job for nine years. I had something. Promotions At the moment, that means more money, but I think the work itself is very soul-destroying – it’s a very ruthless corporate environment. I’ve recently been offered a very exciting new role in the charity sector, which I’ve always wanted to do, but the catch is pay.
It will be 17k less than me this year. I feel completely broken because that’s what I’ve always wanted to do, and after working in a big corporation for a long time I would like to feel like I’m giving something back to society. ۔
My husband is a helper – he says if I want to go for it we’ll work it out, he sees how. stressed out My current character makes me. But I’m worried about how we’re going to make the sudden drop in revenue. With mortgages and bills and childcare costs (our daughter’s spoon is expensive and we are considering having another child), we have a lot of financial commitments. I am also concerned about what the reduction in income means for my future. Pension.
The new job has given me time to think about it, but I need to make a decision as soon as possible. Where do I start to understand what a pay cut means for our finances so that I can make the right decision?
Current account: 1,500.
Savings Account: 22,000 (distributed in cash ISA and stocks and shares ISA)
Annual Salary: £ 48,455 pre-tax, 36,613 after-tax.
Monthly wages: , 4,038 pre-tax; 3,051 after-tax.
Any other incoming payment: 0.
Get me out
Mortgage: 50 650 (half of me)
Blues: I pay 192 192 a month for joint household bills, 200 200 for food and childcare and 49 490.
Other: My personal bills and subscriptions (Phone, Gym, Spotify, Netflix, etc.) come to 97.
Asparagus: My pleasure is beauty treatment, I probably spend £ 300 every month. Gel manicure, Hair cut / color, Faces And massage.
Weekly Budget: I Don’t Have It But I Need It!
on 6k is due for my payment. Student loan. I pay my credit card at the end of each month.
My thoughts on money
My worst habit of money: Spend without thinking – I don’t spend crazy money but I definitely don’t keep track of where my money goes.
Worrying about my biggest money: If I cut my salary, how will we adjust and how will it affect our future financial security?
My financial hopes for the future: Being able to retire comfortably and be able to help our daughter or future children if they need to grow up.
My current money mode: 3
1. Make money
First of all, it’s great to hear that you’re asking for a pay cut. Mental health And happiness. There is more to life than just maximizing earnings and sometimes we need to change things. However, what you want to avoid is exchanging one type of stress (career) for another (financial). The best way to reduce this is to do some calculations. I will talk to you step by step, but the basic premise is to assess how cheap this change will be and understand the impact it will have on your lifestyle. With this data in mind, you can then make an informed decision as to whether the change is for you.
2. Monthly expenses.
Where does your household income go every month? Calculate your after-tax household income and then review your expenses for the last 3-6 months to calculate the average monthly figure. Be sure to include large purchases, such as vacations and repairs (divided by 12), which may not have happened during this period. You will then want to categorize your expenses into essential (mortgage, utility) and non-essential (manicure, dine out). You will also be able to see what percentage of your monthly income you can save. I won’t lie, it’s not an easy task so make sure you get your husband on board and put a glass of something for yourself! A spreadsheet will come in handy here.
3. Is this lifestyle for you?
After calculating your average monthly expenses and savings, you can gauge how it stands out against your new income. Use Tax calculator To see how your household’s monthly income will change if you take on a new job. Subtracting your needs from your new household income will give you an idea of what is left to save and what to spend on unnecessary things. What will you need to cut? Numbers will only take you so far and it is at this point that you will have to call to see if this new lifestyle can ride with you. Is monthly manicure and massage a thing of the past and are you okay with it? These are questions that only you and your husband can answer.
4. Double check.
One thing I would be wary of is that the charity sector or ‘doing good’ is not without pressure or bureaucracy. The industry has had an incredibly difficult year, so before you jump in, just make sure the role is really under pressure and that your new team is well-resourced. It is also important to talk to HR to understand how their pension scheme compares.
5. Talk about it
If you haven’t already, talk to the staff inside the charity to find out if the organization is really like you. The question is whether you can get the same satisfaction within another company that pays more. If you need some objective advice, I’ve just started this. Community groups for people who question their careers. If, after all your research and reflection, it feels right and cheap; you know what to do. Wish you luck!
Alice Tapper is the author and founder. Fund yourself.. For more money guidance and tips, follow this. ofgofundyourself.
This column offers guidance, not financial advice. For personal investment advice, it is always best to talk to a financial advisor.
* Name has been changed.