London Investment Banker Shares Weekly Spending Insights

An investment banker based in London has detailed a week in his financial life, providing insights into the spending habits of a young professional earning a substantial salary. At just 24 years old, he earns approximately £112,000 annually, which includes a notable bonus. This account, part of a series by The Journal, reveals not only his financial decisions but also the challenges of balancing a demanding job with personal life in a bustling city.

Weekly Financial Overview

The banker, who relocated to London two years ago for his position at a large US bank, typically saves around 60% of his post-tax income each month. This translates to about £2,000 going into savings, largely to facilitate his goal of returning to Dublin to purchase a home. Monthly, his take-home pay is approximately £4,334.08 (~€4,991.56), with substantial living expenses typical of central London.

His monthly expenses include:

• Transport: £200 (~€230)
• Rent: £1,250 (~€1,439)
• Household Bills: £100 (~€115)
• Phone Bill: £10 (~€11.50)
• Health Insurance: £0 (covered through work)
• Groceries: £30 (~€35)
• Subscriptions: £11.99 (~€14)

Despite the high cost of living, he benefits from various perks at work, notably free meals which significantly reduce his grocery expenses. Throughout the week, he took advantage of these provisions, often relying on Deliveroo for his evening meals, which are also covered by work allowances.

A Day in His Life

On a typical Monday, the banker starts his week with an early flight back to London, costing him €10 for breakfast at the airport. After arriving at Heathrow, he opts for the Heathrow Express train, spending £25 (~€28.80) to reach his office quickly. The day includes complimentary breakfast and lunch at work, further easing his daily expenses.

By evening, after a full day, he utilizes his work’s £30 Deliveroo allowance for dinner, significantly minimizing his out-of-pocket costs. His total spending for the day amounts to €38.80.

Tuesday follows a similar pattern, beginning with the Tube commute costing £2.90 (~€3.34). Breakfast is once again free, and while he does spend on lunch, the day ends with another work-funded dinner. By the end of the day, his total expenditure is £12.90 (~€14.84).

As the week progresses, he continues to balance work commitments with social activities, including lunches with colleagues and evenings at the pub, where expenses are often covered. Each day reflects a blend of work-related spending and personal choices.

By the weekend, he finds himself working again, although he tries to limit weekend hours. His Saturday is largely spent in the office, with meals ordered through work allowances, while Sunday allows for a brief social outing before preparing for another busy week. His total spending for the week rounds out to £136.88 (~€155.43), showcasing his conscious efforts to manage finances despite the luxurious city lifestyle.

Reflecting on his experiences, the banker notes the importance of tracking expenses and being mindful of spending habits. He acknowledges the sacrifices made, particularly regarding sleep, but remains focused on his savings goals to ensure a stable future in Dublin.

This account not only sheds light on the financial realities faced by young professionals in London but also highlights the broader conversations around work-life balance and financial planning in high-pressure industries.