How I Manage My Money: A Conversation with George Tuttle
In our ongoing series, “How I Manage My Money,” we delve into the financial habits of individuals across the UK, exploring their spending, saving, and investing strategies. This week, we chat with George Tuttle, a 29-year-old London resident who shares his financial journey. Once someone who spent every penny he earned, George now diligently invests £1,000 each month. He believes that income tax thresholds should be increased and doubts he could rely solely on the state pension for his future.
Monthly Budget Breakdown
My monthly income: I take home £2,800 each month from my role as a senior business partner in the finance team of a catering company’s procurement department.
My monthly expenses:
- Rent (including utilities like water, gas, electricity, council tax, and internet): £850
- Groceries: £250
- Mobile phone: £23
- Transport: £120
- Subscriptions (Netflix and Sky Sports): £61
- Gym membership: £41
- Investments: £1,000
- Clothing and miscellaneous items: Approximately £200, but this varies each month.
- Dining out and socializing: Around £200 monthly.
I grew up in a village in Hertfordshire with my parents and three siblings. My father has been a gardener throughout his life, while my mother was a stay-at-home parent until all four of us reached our teenage years. They do not own their home.
My Educational and Career Journey
I started my higher education studying mathematics at the University of Bath, but unfortunately, I did not finish my degree. Although I lack a formal qualification, I do carry student debt from that time. After leaving university, I worked at Tesco while self-studying to break into the accounting field. I began my career as an accounts assistant at a small accounting firm in my hometown in 2018, steadily advancing while continuing my studies. Now, I earn £45,000 annually before deductions in my finance role at the catering company.
Investing and Financial Growth
Alongside my day job, I run a YouTube channel focused on personal finance and investing. In the past, I struggled with managing my money effectively, but I sought a way to track my spending and investment goals. By sharing my experiences online, I have significantly improved my relationship with money. For the past four years, I’ve been methodically tracking my expenses and bank account balances.
Previously, I found myself in £5,000 of short-term debt and would spend my entire income monthly. Today, I am committed to investing £1,000 each month. While this may seem substantial, I aim to maximize my investment contributions while I’m still young. My investment strategy includes All World and S&P 500 ETFs, in addition to several individual UK stocks. Currently, I hold about £25,000 in investments, including £3,000 in cryptocurrency. My most successful investment has been in major tech companies, which yielded a 100% return within a year after a significant sell-off in 2023. Conversely, I once invested in a FTSE 100 ETF that underperformed for nearly a year, prompting me to sell it. I also faced losses from a tobacco company investment.
In terms of savings, I have £6,000 in a cash savings account, although I am not adding to this fund. Instead, I plan to gradually transfer this amount to the stock market to make the most of my ISA allowance. I intend to keep between £2,000 and £3,000 in the savings account for emergencies.
Future Goals and Aspirations
I have a Help to Buy ISA with Nationwide, currently containing £30. I aim to contribute more to maximize the government’s 25% bonus. However, I often find the communication surrounding ISAs and Lifetime ISAs frustrating. Previously, I believed I could only invest in one of these accounts at a time, which led me to stop contributing to my Help to Buy ISA when I wanted to open a stocks and shares ISA.
My primary objective in investing is to prepare for retirement. Currently, I contribute £150 monthly to my workplace pension and have accumulated about £12,000 across two pension pots. I am contemplating increasing my contributions to reduce my tax liabilities. I do not think the state pension will suffice for a comfortable living in retirement, which is why I advocate for raising income tax thresholds to keep pace with inflation. The notion of being taxed 40% on income over £50,000 seems excessive to me, and I believe the annual ISA allowance should also be increased.
Although I aspire to own a home someday, I recognize that the present housing market, compounded by inflation, makes this goal challenging. I need to increase my income to afford a mortgage, and while my salary is decent and provides comfort, I always strive for higher pay each year. An additional £600 monthly would allow me to fully utilize my annual ISA allowance, which is a top priority for me.
Ultimately, I envision a future where I own a home, get married, and start a family. However, I do not foresee achieving these milestones within the next three to five years. I also hope to transition my social media work into a full-time career, enabling me to leave my current job, though I understand the uncertainty associated with this path.
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