How I Manage My Money: University worker, on £4k a month, hoping to retire at 50
We speak to Fran Marie McKeown, 31 years old, who lives in Brighton. Fran Marie, who works at a university and runs her own YouTube channel, has always been good at managing her money. She is a fan of investing and the Financial Independence, Retire Early movement and would love to retire at 50 with a £500,000 pension pot. Fran Marie will soon be saying goodbye to renting, having purchased her first flat with the help of a Lifetime Isa. (Photo: Supplied)
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 to £2,000 per month from my YouTube work and partnerships with businesses, though this varies.” My monthly outgoings: “Rent, £600; council tax, £85; groceries, around £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 each month. I try to put at least £500 into investments and £500 into savings each month, but this can be higher.” (Photo: Reuters)
Saving from an early age
“My parents taught me how to manage my money from a young age. They opened a bank account for me when I was 16 and encouraged me to get a part-time job, which happened to be at a bank. My parents always encouraged me to save pocket money and, later on, a portion of any wages, in a savings account. I work full-time at a university as a curriculum and assessment officer, taking home around £2,000 a month. Having always been interested in personal finance, I also have my own YouTube channel, where I talk about anything from savings accounts to budgeting. The amount of money I make from my social media work varies, but is generally between £1,000 to £2,000 per month. In my twenties, I realised my money could be doing more for me and I became interested in investing and the Financial Independence, Retire Early (FIRE) concept. The idea of financial independence appeals to me because it allows you to have time freedom, which is one of the most valuable things. You can choose to spend your time in whatever way brings you joy. The mental freedom that comes with knowing your time is your own is also appealing.” (Photo: Gareth Fuller/PA)
Time 'the most powerful force in investing'
“I usually add £500 to savings each month and can put anything from £500 to £1,000 into investments every month. I have a range of savings accounts, current accounts and investment accounts, as well as some reward credit cards. I invest in a stock and shares Isa with Hargreaves Lansdown, but also invest with Trading 212, Freetrade and Wealthify. I also have a Moneybox Lifetime Isa. I only started investing when I was 25, but wish I had started earlier. The earlier you start, the more benefit you can get from compound interest. Reading The Psychology of Money by Morgan Housel made me appreciate that time is the most powerful force in investing. I add £200 per month into my work pension and my employer doubles my contribution. I would like a £500,000 pension pot by the time I retire. I plan to retire at the age of 50 and hope to achieve this by investing as much as I can now.” (Photo: Andrii Yalanskyi/Getty/iStockphoto)
'Building wealth isn't just about your earnings'
“I think it would be very difficult to rely solely on the state pension in later life. I don’t think it’s adequate and believe the state pension age is too high. I live in a flat that I’ve been renting since the start of 2020. The rent has gone up since I have been in the flat, but only by around £100 a month. I’ve recently purchased my first flat, so won’t be renting for much longer. I managed to save £25,000 for a deposit. As I’ve got a Lifetime Isa, I’ve been able to use several years of government bonuses, which amounted to around £5,000 towards my deposit. While I wouldn’t say I am motivated by money, I don’t want to have to worry about it. So, I try to ensure that I don’t have to worry about it by doing things like budgeting and saving an emergency fund. I’m happy with what I earn. Building wealth isn’t just about what you earn, but what you do with the money. You can earn a little or a lot, but if you are able to save a bit each month, you can build wealth. I try to find a balance between saving as much as I can and enjoying life.” (Photo: Peter Summers/Getty)
