ARIELLE SAYS:

‘My boyfriend owns 25% of the flat on a shared ownership scheme, so my other housemate and I pay a contribution (I pay £400) towards the costs of the mortgage, rent, bills, service charge and tax. It’s very reduced – if we were in private rented accommodation, we’d be paying a lot more, so I’m lucky to have that set-up. I’m quite a spender, but I’m not bad with money and never go into my overdraft. I usually use apps to track my spending. I have a Monzo card, which is useful to look over my spending in hindsight, but I don’t check on it every day. One of my biggest outgoings is travel – I spend £5.80 a day on my commute. My other main spend is food, as meals out are one of the main ways I socialise with my friends. I only save for short-term goals, like holidays. I don’t want to invest those savings because I know realistically I need that money to hand. With the current salary I’m on, I feel like I’m never going to be able to afford a house, so why should I ruin my month not doing fun things for to save a mortgage I won’t be able to afford? If I was earning more, that would be a silly approach, but I’m at a place where there’s just no point.’ What I learnt: ‘By physically writing down my outgoings, I’ve realised that what I thought was a realistic budget (£100 a week, not including rent) probably isn’t. I had an abnormal month when I was keeping my diary, as I had events that I needed new outfits for and was busy, so I picked up lunches and dinners out a lot more. I’m shocked I spent £300 in Week 1 though – it’s excessive. Now, I’ll put £600 into my Monzo account when I get paid and try to stick to only spending that each month, which feels achievable.’

KALPANA FITZPATRICK, GH FINANCE EDITOR, SAYS:

◆ Make the most of tech It’s great that Arielle uses Monzo, as this app-based bank makes tracking your spending really easy – except she doesn’t always use it to check where her money goes! Tracking her spending will help her stick to her new budget.

◆ Save first I’m impressed that she’s started saving, but instead of giving herself a £600 spending allowance, she should switch it around and put a chunk into savings first and then work out what she can spend. ◆ Every little helps Arielle doesn’t see any point in investing right now, but even if she put a small amount away for the long-term (at least five years), this money could grow at a faster rate than any savings account. Don’t forget – unless your savings earn you a higher rate than inflation, you are losing money.

‘I only save for shortterm goals’