In our “How I Manage My Money” series
Our objective is to discover how individuals in the UK manage their finances through spending, saving, and investments to cover expenses and reach their aspirations.
This week, we spoke with Melissa Layton, a 34-year-old from Camden, London. Previously earning £90,000 annually in the legal field, she decided to leave her job to concentrate fully on managing her own wellness enterprise. Melissa, whose earnings get an additional boost through Airbnb hosting, shared her experiences.
The i Paper
She doesn’t regret leaving the money she earned from practicing law behind and prioritizes her liberty and well-being instead. She currently has £40,000.
kept in a retirement fund, yet doesn’t intend to stop working.
Monthly budget
My monthly income:
My earnings fluctuate each month, ranging from £2,500 to £4,500, through my wellness company called Numinity. This venture includes conducting corporate workshops, organizing retreats, offering online courses, and hosting various events. Frequently, I spend several weeks traveling; during these times, I rent out my apartment on Airbnb for approximately £500 weekly. Generally, the revenue generated from Airbnb rentals sufficiently covers both my mortgage payments and living costs when I’m away working.
My monthly outgoings:
Home mortgage, £1,165; local authority taxes, £126; food shopping, £250; electricity bills, £140; water charges, £20; internet services, £28; cell phone expenses, £55; transportation including taxi fares, £100; retirement savings with Vanguard, £200; dance classes like salsa, £45; counseling sessions, £150; individual Spanish tutoring, £60; charitable donations ranging from £30 to £50; dining experiences, leisure activities, attending events, and visiting saunas, £150. There’s an ongoing cost of £95 yearly for Amazon Prime membership and another expense of £70 annually for a Babbel subscription. Yearly premiums for both house and travel coverage total £200. Additionally, there is an annual maintenance fee for the apartment amounting to £800. Each year, approximately £5,000 goes into a stock-based Individual Savings Account (Isa).
I was raised in London, where both of my parents worked as doctors. They instilled in me the importance of being thrifty and charitable. I have a simple lifestyle and am not at all concerned with fashion or gourmet food!
I’ve always had an enterprising spirit and a knack for business. When I was young, I used to walk my neighbors’ dogs for £1 per hour and even struck deals with my babysitters to complete various chores around the house for pocket change—like setting the table for just 5p!
During my teenage years and throughout my time at university, I held various part-time positions ranging from babysitting to roles in cinemas and coffee shops. Initially, I pursued studies in music at the University of York but later switched to law.
In 2017, I embarked on my legal journey and served as the general counsel for a technology startup, where my annual salary reached £90,000 before deciding to move on. Although I enjoyed exercising my intellect, being employed by others seemed restrictive. For me, autonomy and having a meaningful impact outweigh monetary gains; therefore, I shifted gears from practicing law to dedicating myself fully to launching my venture called Numinity starting in October 2023.
I am now at the helm of the company, providing corporate wellness workshops, training sessions, retreats, and personal growth services. At present, my earnings from this venture range from £2,500 to £4,500 each month.
My entire family is incredibly diligent, and I’ve had quite a journey discovering how to reconcile the side of myself that thrives entrepreneurially and embraces intense work with the part that cherishes rest, relaxation, and simply savoring life.
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Even though a legal profession can be quite lucrative, I find myself not missing the financial rewards. My current lifestyle offers ample comfort and enriching experiences, providing me with everything I enjoy doing. When traveling, renting out my apartment through Airbnb allows me to take breaks whenever desired without stressing over finances. Should I ever desire higher earnings, returning to practice wouldn’t be an issue either. Perhaps these preferences may evolve if I decide to settle down with someone or start a family; however, presently, I prefer lower income alongside greater personal liberty.
The price of my apartment was £500,000 when I bought it in 2022.
With the help of the Help to Buy scheme, I managed to purchase the apartment with a reduced down payment. My mortgage payments are roughly half of what I would be paying to lease a comparable flat. I secured a fixed interest rate of 2.04 percent for five years through NatWest, which is set to end in 2027.
I earn around £500 per week.
If I rent out my apartment via Airbnb when I’m not around,
However, this changes based on the season and how occupied the place is. Additionally, I hire a firm to handle these tasks for me, ensuring I can enjoy my absence without worries. Their fee amounts to roughly 20 percent for cleaning the apartment, changing linens after each booking, and addressing all inquiries from guests.
My approach to managing finances is well-balanced. I tend to be generous when spending on important things but am frugal elsewhere. My investment strategy involves taking reasonable risks, and I regularly put money into a Moneyfarm stocks and shares ISA. Typically, I manage to contribute around £5,000 annually to this account.
I prioritize my pension as well, contributing £200 each month into a Vanguard pension plan. So far, I’ve accumulated approximately £40,000 in my pension savings, largely sourced from my legal career earnings. While I believe the UK state pension alone may not be sufficient for a comfortable lifestyle, I still consider it crucial for those dependent on it.
I haven’t given retirement a second thought. I thoroughly enjoy my job and manage to maintain an excellent equilibrium between work and personal life. It’s easy for me to picture myself continuing this path indefinitely. I make sure to schedule ample breaks and prioritize self-care, so the conventional idea of retiring feels quite distant at the moment.
To me, money represents liberty. It empowers individuals to make choices free from anxiety or lack. While I am not pursuing enormous riches, I highly prize fiscal self-sufficiency and the assurance to lead my life according to my preferences. My aim is to generate sufficient income to maintain an excellent lifestyle, expand Numinity, explore different places, and back initiatives dear to my soul. What drives me isn’t a particular sum of money; rather, it’s about having the option to live with agency and control.
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