20K Pay Cut for a Career Change: Cutting Out Takeout to Save

A Week of Financial Awareness and Adjustments

It feels like we’re a divided nation financially; some spend as if they’re minted, while others struggle. I fall somewhere in between. For many years, I paid little attention to my finances. I found I could drift into my overdraft during some months and accumulate a couple of thousand pounds in others.

When the pandemic hit, I was surprised by just how much more money was left in my account once life moved indoors. Seeing this prompted me to save and invest more seriously. My aim has been to save £800 a month, but following a career change out of teaching in 2024, and therefore an income drop, I’ve struggled to save at all – though at least there’s been a corresponding reduction in stress.

When I do save something, I often end up transferring it back to cover costs. I wonder if my savings mentality has made me feel poorer than I am. Now I’m 40, I’m keen to build a financial cushion for a rainy day.

Thankfully, I have paid off my student loan, so now my focus is on the mortgage. My savings and investments total around £37,000, but I still feel a little financially insecure – I’m single, and my family situation means I don’t have a “home” to go to if I find myself in a crisis. Being mortgage-free is two years of savings away if I put my other investments to work as well.

With markets wild and a potential crash on the horizon, I’m very anxious about losing everything and am moving my investments toward the safety of Premium Bonds, even though they won’t beat inflation. I have faith I’ll eventually hit a salary in the £60,000 range in my new role at a university, but that seems a distant hope in the current job market. I feel quite angry that aspiration seems to be on hold for so many people nowadays – everything feels like a game, rewarding those who can squeeze in a side hustle or talk their way into lucrative jobs.

Please don’t think this is self-pity, as I know I’m lucky compared to many people. I can pay my bills and have a nest egg saved. At the same time, I feel like I spend far less than some of the people around me, who are constantly buying new household items and upgrading their phones or cars. I’ve had my phone since 2018, and my house, though pleasant, needs a serious refurbishment.

A Week in the Life: Tracking Spending Habits

Day 1

Lunch is just a sandwich for £3.25. Now I’m earning several thousand pounds less than I used to, and having to pay to commute, I have tried making lunch and bringing it into work – but most days I either forget or don’t feel motivated to do it. After work, on Monday, I shop at the supermarket – I shop sensibly but still pick up a bottle of wine or some new foods I fancy. This comes to £75.37. Infuriatingly, I notice the free trial for the InnerFlo wellbeing app I signed up for has auto-renewed, which hasn’t helped my wellbeing! I emailed to request a refund and ended up settling for a token discount. I pay £27.65 – lesson learnt!

Total: £106.27

Day 2

I managed to keep spending down today, but did feel hungry at lunchtime and stretched my budget to a curry. It’s worth it, but it costs £8.49. I’m generally economical with my lunches, but can spare the odd treat. At first, it didn’t feel as though the cost-of-living crisis was affecting me, but in the last two years, I’ve realised I’ve cut back on things that I previously (during my carefree, bank account-neglecting days) didn’t really think about.

When I review my bank statements now, I realise that I’m often not buying much at all – supermarket shops and fortnightly drinks with friends and colleagues are about all for most months.

Total: £8.49

Day 3

I’m working remotely today and feel pleased to say I have spent nothing other than my bills. These can take a toll – per month, I pay £148 in council tax and £90 in energy. Broadband also costs £26.60, while critical illness cover costs £13.81. I sometimes wish I could have more spend-free days, but doing just about anything seems to cost money nowadays. Car repairs and two (brief) holidays a year tend to eat up any money I do manage to save.

Total: £0

Day 4

A colleague recently recommended a tasty meal from a local shop. It’s a bargain at £2.59 – my sort of deal. I buy it and microwave it back at work, which makes me feel better for not having prepared anything at home! After work, I go to a Turkish barbershop nearby and sort out my increasingly neglected hair. It’s a fair price at £16. It’s annoying that it’s still cash-only, but this seems to be the norm.

Total: £18.59

Day 5

I made lunch and brought it to work today, so at least I’m not spending out on food. I realise I’ve got to pay £4.74 in Etsy fees. I set up a drop-shipping business in 2023 as a side hustle, but I could only ever sell one item. The listings still cost me, so I pay the fees and close them down. I’m still disorganised with aspects of my finances, and although this is a small amount, I’m annoyed that I’ve wasted a fiver.

Total: £4.74

Day 6

As it’s a Saturday, I afforded myself the luxury of a social occasion, heading into the city centre with friends in the evening. I spent £24.20 on a few drinks and £5 on public transport. The price of a pint has risen significantly in recent years, but thankfully, I only have four or five nowadays.

Total: £29.20

Day 7

I’ve been contemplating getting a heated clothes airer for some time, and took the plunge today. Surely this confirms I’ve reached peak middle age – but the £105 will save me time and possibly money. At first, I’m not impressed, but on the second load, I work out how to position the clothes more strategically. A few years ago, I wouldn’t have even thought twice before buying an item like this, but now it feels like a well-considered purchase. Admittedly, this has been a fairly dull week for spending, but I’ve made it my goal to keep up my savings habits.

Total: £105

Weekly Summary

Total weekly spend: £272.29