In our How I Manage My Money series we aim to find out how people in the UK are spending, saving and investing money to meet their costs and achieve their goals.
This week we speak to Sue Johnson, 75, who lives in Essex with her husband. Sue worked for decades as a librarian and retired, as she wished, at the age of 60. She doesn’t think she’d be able to live off the state pension alone. Having once been in debt amid a divorce, Sue now works as a volunteer money coach for Christians Against Poverty. She watches and makes a note of every penny she spends.
Monthly budget
My monthly income: My state pension is £824 per month. I also have £774 coming in each month from a work pension. I receive £48 per month for church administration work.
My monthly outgoings: Council tax £105; water £27; TV licence £13; Netflix £11; window cleaner £10; mobile £12; broadband £35; home and contents insurance, £10; boiler insurance £20; energy bills, groceries and household items, £542; dentist plan £14; contact lenses £49; hairdresser £21; travel – which includes everything to do with the car, bus and train fares, flights, travel insurance, and Algarve savings – £212; leisure £61; money into savings account £160; donations to charities and church organisations, £273.
Times were hard growing up in the 1960s and 70s in Tyneside, and my family was far from wealthy. I always wanted to be a librarian and went to library college for two years before starting my first full-time post, initially earning £365 a year.
Over time, I moved to work as a librarian at a school in Edinburgh. It was a very busy school and there was a lot to manage in the library and resources room. By the end, I was earning £23,000 a year.
I’d always wanted to retire at the age of 60 and managed to do just that. I was delighted to retire at 60 and took out an £18,000 lump sum from my pension.
I receive £824 per month from my state pension and £774 a month from my work pension. If I didn’t have a work pension, I think I would be in trouble, as the state pension is not adequate to live off. I don’t know how people manage on the state pension alone. I also think the triple lock should be maintained. I worked for 43 years and have paid my dues. If I didn’t have a work pension, I’d need to claim pension credit.
Things have not always been easy for me financially. My first marriage broke down and in 2003 I found myself in £1,000 worth of debt on my credit card. This doesn’t sound a lot now, but I didn’t have the money to pay it off, so for me, it was. I had no money left and had to use a credit card to buy food, which is not a good idea. I started skipping meals and would only buy the absolute basics.
I sought help from Christians Against Poverty, who taught me how to budget, haggle and manage my money properly. I managed to get my debts paid off in 10 months. It felt wonderful to get them paid off and start living again.
Since 2014, I’ve been volunteering as a money coach for the charity. Part of my role involves going into prisons and teaching people about money. It’s rewarding and I really enjoy it. The prisoners we meet are very respectful and courteous.
Even though I have no debts, money is still quite tight for me. I use an online budget sheet and have my own separate budgeting spreadsheet. I make a note of everything I purchase. I write down how much I have paid for everything, including food and petrol. I keep a very close eye on how much I’m spending, down to the last penny. I never want to be overdrawn again and do all this without thinking now.
I shop around at different supermarkets and often buy own-brand items as they are cheaper. At supermarkets, I look for items on the lowest shelves, as these are often less expensive than products at eye level.
If I pay for anything using a credit card, which can be useful online, I always pay the card off in full at the end of the month.
I’m not motivated by money, but aim to have enough so I can pay my bills and never be overdrawn. It’s a means to an end and enables me to have something to eat and put clothes on.
I give a lot of my money away to different charities and church organisations each month and yet always have enough left over. I always put money into a charity tin if I see one, even if it’s just £1. If I had more money, what would I do with it? I’d probably give more away. God loves a cheerful giver.
Want to take part in How I Manage My Money? Email money@inews.co.uk