Imagine earning up to £10,000 a month and still feeling the pinch when it comes to holidays or paying off debts. It’s a reality for many, including Katie Barge, a 43-year-old chartered psychologist, business owner, and mum of two. Despite her impressive income, Katie admits that splurging on date nights and family outings is keeping her from achieving her dream of becoming debt-free. But here’s where it gets intriguing: how can someone earning so much still struggle financially? Let’s dive into Katie’s story as part of our Wallet Watch series, where we explore how real people manage their money.
Katie lives in Cheltenham with her husband Andy, a 44-year-old cyber security manager, and their two daughters, aged six and ten. Together, they bring in a joint monthly income of up to £10,000, yet they’re juggling a £150,000 mortgage and a £100,000 personal loan for home renovations—£15,000 of which funded business mentoring. Is their spending aligned with their financial goals? Let’s find out through Katie’s weekly money diary.
Monday kicks off with Katie working freelance as a locum psychologist, gathering evidence and writing reports from home. It’s a low-cost day, with a homemade spaghetti Bolognese for dinner using groceries delivered by Ocado. The evening is spent relaxing with Netflix or helping the girls with homework. But here’s the part most people miss: despite her high income, Katie’s self-employed status means her earnings can fluctuate, adding an extra layer of financial uncertainty.
Tuesday is another remote workday, but Katie travels to London for a podcast appearance. Instead of splurging on a £200 first-class train ticket, she opts for a £38 bus ride—a small but significant savings. She also spends £140 on a hotel in Victoria. And this is where it gets controversial: Katie’s monthly expenses total £7,631, including £3,100 for her mortgage, £1,000 for loan repayments, and £1,600 for private school fees. Is private schooling worth the cost when it eats up such a large chunk of their income?
Wednesday is all about networking in London, with Katie attending a business mastermind group that costs £62.50. She justifies the expense as an investment in growing her wellness and therapy business, Dr Katie Therapy, which she launched in 2018. With over 20,000 Instagram followers, she’s also a social media influencer. But here’s the question: Are these expenses truly necessary for her business growth, or could they be scaled back?
Thursday is straightforward, with Katie working at an independent school providing private creative therapy. She packs her own lunch to save money, cutting out £50 a month in takeaway costs. Her daughters attend the same type of school, costing £1,600 monthly, due to her eldest’s suspected neurodivergence. And this is the part most people miss: While private schooling offers benefits, is it the best financial decision for their long-term goals?
Friday is date day for Katie and Andy, with a lunch out costing £30-£50. They also take the kids to Gloucester Quays, spending around £100. But here’s where it gets controversial: Are these ‘splurge days’ derailing their financial goals? Katie admits she should probably budget for these outings, but neither she nor her husband are skilled at it.
Saturday starts with kids’ activities—football and dance—costing £24. Katie and Andy enjoy a child-free lunch for £30, followed by a £30 trip to the climbing wall. And this is the part most people miss: While these activities are enriching, could they be reduced to free up funds for debt repayment or savings?
Sunday is family day, with a football match, housework, and an Ocado shop costing up to £230. Katie loves the convenience, but here’s the question: Could switching to a cheaper supermarket like Asda, with delivery slots as low as £1.50, significantly cut their monthly expenses?
How can Katie improve her finances? Despite their impressive income, Katie and Andy’s lack of budgeting is holding them back. Cutting back on date nights and implementing a ‘one out, one in’ rule for dining could save over £200 monthly. To fund their £10,000 Canada holiday, treating savings like a bill—with a dedicated high-yield account—could be the solution. And here’s the controversial part: Is their lifestyle too lavish for their financial goals, or is it a matter of better budgeting?
What do you think? Are Katie and Andy’s spending habits justified, or do they need a financial overhaul? Share your thoughts in the comments—let’s spark a discussion!
