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 Patrick Reid, 54, who lives in London with his partner. At the age of 38, Patrick underwent a radical career change and, inspired by the film Wall Street, made millions as an FX trader. By his own admission, Patrick became obsessed with money. Patrick has dialled down his trading and focuses more on his health. He spends £24,000 a year on holidays and, each month, splashes out over £2,000 on clothes and nearly £2,000 on spas, facials and a personal stylist. He’s concerned about what the Labour Government has in store.
Monthly budget
My monthly income: I make between £20,000 to £50,000 each month from my work as an FX mentor and trader.
My monthly outgoings: Mortgage for my girlfriend’s property, £3,000; council tax, £200; groceries, £700; gas and electric, £350; water, £150; broadband, £50; mobile phone, £47; personal stylist; £900; private sports club, £350; money into savings and investments, at least £6,000 per month; clothes, £2,200; spas and facials, £900; holidays, £2,000 a month, or around £24,000 per year; dinners and entertainment; £4,000; Uber, around £600 each month as I do not drive.
I grew up in Guernsey and had a privileged upbringing. I went to private schools and enjoyed lots of holidays. My family did very well working in niche services in private banking and my father now lives in Geneva.
I spent years working in TV and the media sector. I did a number of different jobs, ranging from a floor assistant to a scheduler.
At the age of 38 I wanted a radical career change. It’s never too late to do this. I’d always been fascinated by the Wall Street movie, and despite having a great job at the time, felt I needed to pursue my dreams.
I met a futures trader and grabbed a once in a lifetime opportunity to work for the biggest proprietary desk in Europe. It was the hardest thing I have ever done, but I knew it lit my fire. In the first year, I hardly made a living, earning £50,000. But in my second year I made over £12m through futures trading and on the Spot FX team for another proprietary desk.
I lived and breathed trading and spent at least 10 hours a day on the desk. The key thing I did was to scale aggressively, but this took a toll on my mental health. I was obsessed with money and it changed me as a person. Money was no object and I was like a kid in a candy store. I did a lot of partying.
I knew things had to change, so I started to dial back on my trading. This is partly why I ended up co-founding my business, The Adamis Principle. I’m now an FX mentor as well as a trader. The Adamis Principle is a niche FX specialist firm offering training to banks, asset managers and hedge funds through mentoring.
We also give retail clients the opportunity to pursue a career trading for an institutional desk. Our income is split between our mentoring and recruitment arms. Our signature service costs £11,690 a year, or £497 per hour for something more bespoke.
My monthly expenditure can be over £20,000. I love facials, spas and eating out. I spent £900 each month on spas and facials. Eating out at Roka costs roughly £300 a time and I do this four times a month. I usually spend £4,000 per month on dining out and entertainment. I have a brilliant stylist, Charlotte Broadbant, at a cost of £900 per month, and spend over £2,000 each month on clothes. I often buy items I’ve been shown in Harvey Nichols.
I can spend £24,000 a year on holidays. I love diving in the Maldives and enjoy visiting Thailand, Australia, Singapore, Dubai, Turkey and the US. I find The Healthy Holiday Company really good for trips. I’d like to buy a house on the Amalfi coast and a place in Dubai, each at a cost of around £3m.
In my view, cash is king. I always try to put a portion of my earnings into cash. Rainy days crop up far more frequently than we think. I generally put at least £6,000 per month into savings and investments. I trade my own account, of course, but also have an equities portfolio via UBS. In total I have less than £16m, split globally.
I added money to a work pension while working in TV and will access it when I’m 65. I always believed in saving and was sensible when it came to pensions. That said, I will never retire because my current job is my hobby. I will do it until the end!
The state pension is not worth anything, in my opinion. I’d never encourage anyone to rely solely on it for later life. In a decade it’ll probably be worth even less than it is now.
I am concerned about what a Labour Government has in store. If required, I am happy to pay more tax. However, I want to know that the money is being spent sensibly on things that matter, like education, the NHS and our transport system and roads. I don’t want my taxes spent on obscure projects which are of no or little use to society.
When it comes to money, I still like to be comfortable, but I am more focused on my health now. I’m not 21 any more. My fitness and health is a priority. I’ve been there and done it all, so as long as I’m able to earn at least a six-figure sum each year, I am happy.
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