How I Manage My Money: 34-Year-Old Living on $3,300 a Month in a Rental War

Understanding Vanessa Urena's Financial Journey

In the "How I Manage My Money" series, we explore how individuals in the UK manage their finances to meet their financial goals and daily expenses. This week, we feature Vanessa Urena, a 34-year-old living in London with her partner and their dog. Vanessa works in customer services on the supply line side and has a unique approach to managing her money.

Monthly Income Overview

Vanessa's monthly income comes from multiple sources. She earns £3,322.37 a month as a customer execution specialist at a consumer products company before deductions. Additionally, she works part-time as an online English teacher on Sundays, earning about £11 an hour. Her partner and she also own a renovated property in Portugal that they rent out for approximately £870 a month. She occasionally makes extra money through ad hoc projects via Imagen Insights.

Monthly Outgoings

Vanessa and her partner split all bills and groceries equally since they earn similar incomes. Their monthly expenses include:

• Rent: £1,600
• Council tax: £249
• Groceries: £400
• Gas and electricity: £220
• Water: £46
• Broadband: £80
• Mobile phones: £90
• Netflix: £5.99
• Pet insurance: £10.98
• Gym for two people: £60

Vanessa adds £300 to a savings account each month and contributes £100 to a cash ISA. She is mindful of her spending, often shopping at charity shops and only buying clothes when necessary. She also contributes to a work pension through her salary.

Background and Work Experience

Vanessa was born in California but moved to Portugal at the age of nine. At 13, she relocated to the UK with her mother and younger brother. Growing up, she learned to manage a household by doing cooking and cleaning at a young age. By 18, she secured a place at the University of Essex and graduated with a degree in modern languages by 23.

She has been working since a young age, starting with a job as a cleaner at 16, earning £10 an hour. Over the years, she has worked in various sectors, including recruitment and media sales, earning around £24,000 annually. Currently, she works as a customer execution specialist at a consumer goods company, dealing with customer service issues across the supply chain.

Changing Mindset and Financial Habits

Vanessa was very frugal during her teenage years and university days, sticking to a tight budget for groceries and outings. However, after the pandemic, her mindset shifted, and she decided not to live life with regrets. While she still saves, she acknowledges that she could save more. Balancing saving and enjoying life is a challenge for her.

Financial Accounts and Investments

Vanessa maintains four different accounts. A standard current account receives her salary, which she then transfers into a joint account for shared expenses. She also has a savings account where she deposits £300 monthly and a cash ISA where she adds £100 each month. Although she has explored investing through stocks and shares, she prefers tangible investments like property due to her risk-averse nature.

Living Situation and Future Goals

Vanessa and her partner currently reside in a one-bedroom flat in south-east London, paying £800 each in rent. The flat was originally listed for £1,400 a month in 2024 but saw a bidding war due to its prime location. Without her knowledge, her partner offered to pay £150 extra, securing the flat. Last year, the rent increased to £1,600 a month, but the landlord has not raised it yet. In the future, they hope to move to a city like Manchester or Leeds and eventually build their own house in Portugal.

Pension and Retirement Plans

Saving for retirement is a top priority for Vanessa. She believes in being prepared for the future and is considering consolidating her pensions into one. The earlier she can retire, the better, provided she can maintain a comfortable lifestyle.

Motivation and Financial Aspirations

Vanessa is highly motivated by money but values enjoying her work. She believes money provides freedom to travel, enjoy experiences, and support her family and friends. Her ideal income in London would be £80,000 a year, allowing her to feel financially secure, save more, and work towards building their dream home in Portugal.

Vanessa is focused on expanding her knowledge of investing, exploring ways to make her money work harder. She aims to move beyond just saving and become smarter with things like ISA allocations, understanding the stock market, and maximizing her pension for a secure future.