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 face challenges with debt and saving for holidays.
Katie, 43, lives in Cheltenham with her husband Andy, 44, a cyber security manager, and their two daughters aged six and ten. Their goal? To become debt-free from their mortgage and business loans. But here's where it gets controversial: with a fluctuating income and a long list of expenses, can they really afford their lifestyle?
Let's dive into Katie's weekly money diary and uncover the secrets behind her financial struggles.
Monday:
Katie starts her week working remotely as a locum for the local authority. She spends the day gathering evidence and writing reports, a relatively inexpensive day for her as she works from home. Dinner is a homemade spagbol, cooked with groceries from Ocado. It's a low-cost evening, with the family relaxing at home and helping with homework.
Tuesday:
Another remote day for Katie, but this time she travels to London for a podcast appearance. Opting for a cheaper bus ticket over a first-class train, she spends £38 on transportation. Katie also books a £140 hotel room in Victoria for the night. Her total spend for the day is £178.
Wednesday:
In London, Katie's podcast appearance goes well. She hopes to secure more paid media opportunities this year. In the evening, Katie networks to grow her brand, attending business masterminds groups which cost £250 a month. Her total spend for the day is £62.50.
Thursday:
A straightforward day for Katie, working at an independent school doing private creative therapy. She brings her own lunch and drinks, saving money by avoiding the school's food offerings. Katie's children attend private school, costing £1,600 a month in fees. The family believes this is best for their eldest daughter, who they think is neurodivergent and needs smaller class sizes.
Friday:
It's date day for Katie and her husband! They usually go out for lunch together, spending £30-£50. After school, they take the kids to Gloucester Quays for a movie or a meal, spending up to £100. Katie acknowledges that they don't budget specifically for these outings, but feels they should considering their financial goals.
Saturday:
The family has a busy Saturday with football and dance classes for the kids, costing £24 a week. Child-free, Katie and her husband go out for lunch or coffee, spending up to £30. They then take the kids to the climbing wall, costing another £30. Katie mentions their recent cutbacks on holidays, opting for wild camping in the UK instead of their dream trips to Canada and America, which would cost £10,000.
Sunday:
Sunday is family day, with a football match in the morning followed by housework and meal prep. Their Ocado shop arrives, costing anywhere from £100 to £230 a week. Katie loves the delivery service for its convenience and reliability. 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? With a high income, it's surprising that they struggle to budget. Cutting back on date days and weekend lunches could be a start. Implementing a "one out, one in" rule for dining could save over £200 a month, helping to reduce their debt. Treating savings like a bill and setting up a dedicated "Canada Fund" could also help them reach their holiday goal. Swapping Ocado for a cheaper supermarket like Asda could further reduce their monthly expenses.
And this is the part most people miss: it's not just about cutting back, but also about changing habits and mindset. Katie and her husband need to budget effectively and prioritize their financial goals. With some adjustments, they can achieve their dreams of being debt-free and enjoying those long-awaited holidays.
What do you think? Is Katie on the right track? Share your thoughts and let's discuss some financial strategies!
