Imagine having a monthly income of £10,000 and still feeling the pinch! That's the reality for Katie Barge, a self-employed chartered psychologist and business owner, who's sharing her financial journey with us. Despite her impressive earnings, Katie and her family are struggling to make ends meet and are burdened by debt. But here's where it gets controversial...
Katie and her husband, Andy, a cyber security manager, live in Cheltenham with their two daughters, aged six and ten. With a combined income of up to £10,000 per month, you'd think they'd be living the high life, but their financial situation is far from ideal. They're paying off a mortgage of £150,000, with monthly payments of £3,100, and a personal loan of £100,000, costing them £1,000 each month. And this is the part most people miss: their income isn't consistent, as Katie is self-employed.
Katie set up her business, Dr Katie Therapy, in 2018, and while she has a solid social media presence with over 20,000 Instagram followers, her income fluctuates. She also works as a locum and a social media influencer, but her financial goals are clear: to become debt-free and start afresh.
Let's take a look at Katie's weekly money diary to understand her spending habits and see if we can uncover some money-saving tips.
Monday:
Katie works from home as a locum, gathering evidence and writing reports. She and her family enjoy a home-cooked spaghetti bolognese for dinner, using groceries from their Ocado delivery. It's a low-cost day for the family, with a chill evening of Netflix and homework.
Tuesday:
Another remote day for Katie, but she travels to London for a podcast appearance the next day. Usually, she'd book a first-class train ticket, but with Christmas expenses and holiday savings in mind, she opts for a £38 bus ticket. She stays in a £140 hotel room in Victoria, London, for the night.
Wednesday:
The podcast appearance goes well, but Katie doesn't get paid for it. She spends her travel time catching up on emails. In the evening, Katie networks to grow her brand, attending business mastermind groups, which cost £250 per month. Another home-cooked meal saves costs for the family.
Thursday:
Katie works at an independent school, providing private creative therapy. She brings her own lunch and drinks, saving money by not buying takeaway. Her children attend private school, costing £1,600 per month in fees, as they believe it provides a better learning environment for their neurodivergent eldest daughter.
Friday:
It's date day for Katie and Andy! They usually go out for lunch, spending around £30-£50. After school, they take the kids to Gloucester Quays for a movie or a meal, spending up to £100. Katie admits they don't budget specifically for these outings but feels they should, considering their financial goals.
Saturday:
The family has a busy day with football and dance classes for the kids, costing £24 per week. Katie and Andy enjoy a child-free lunch or coffee, spending up to £30. They then take the kids to the climbing wall, another £30 expense. They have another home-cooked meal after eating out. Katie mentions they've cut back on holidays, opting for wild camping in the UK, but they hope to travel to Canada and America this year, a £10,000 expense they need to budget for.
Sunday:
Sunday is family day! They start the day with a football match, followed by a run. They spend the day doing housework and organizing for the week ahead. Their Ocado shop arrives, costing anywhere from £100 to £230 per week. Katie loves the delivery service and finds it convenient. They're doing Dry January, so no alcohol in their order this week, helping to cut costs.
So, what can Katie do to improve her finances? Well, cutting back on those date days and weekend lunches could be a start. Implementing a "one out, one in" rule for dining out could save over £200 per month. Treating savings like a bill and setting up a dedicated "Canada Fund" savings account could help them reach their holiday goal. Swapping Ocado for a cheaper supermarket, like Asda, could also reduce their monthly expenses.
What do you think? Are these money-saving tips feasible? Do you have any other suggestions for Katie? We'd love to hear your thoughts in the comments below!
