Money Diary: A Junior Doctor In Melbourne On £57,000

Welcome to Money Diaries where we are tackling the ever-present taboo that is money. We’re asking real people how they spend their hard-earned money during a seven-day period — and we’re tracking every last penny.

This week: “I’m a 26-year-old junior doctor in Australia. I relocated earlier this year from London, where I’d been working in the NHS for around three years. I moved with my partner who is also a doctor. We decided to move for better pay and working conditions, having both experienced pretty bad burnout, which unfortunately is standard in UK public healthcare. Having said that, although the pay is much better here and services have much better funding, our work schedules are very tough so the grass isn’t completely greener. Currently the plan is to move back in a year or two, though this is in continuous review. In London, due to living costs, I hadn’t managed to save any money compared to uni friends who worked elsewhere in the UK, particularly those in the north of England, where I went to medical school. I don’t regret moving to London, as I had the best few years, but it did make budgeting hard, especially in preparation for moving here.

My partner and I have been together for around three years. We are loosely saving for a house if/when we move back to the UK and have fairly similar attitudes towards money despite coming from very different financial backgrounds. I would say most of my disposable income at the moment goes on eating out, live music events (there are so many here) and travelling. I have included the costs in GBP for ease, using a standard currency converter.”

Occupation: Doctor 
Industry: Healthcare
Age: 26
Location: Melbourne, Australia
Salary: £57,000 (pre-tax).
Paycheque amount: £4,445 (although we get paid fortnightly here) + pre-tax “salary packaging” benefit of £300.
Number of housemates: One: my partner, J.
Pronouns: She/her

Monthly Expenses

Housing costs: £818.50 for my half. 
Loan payments: £57 student loan (on international repayment scheme). 
Savings? Around £9,300 in a stocks and shares ISA, spread across managed and index funds; £7,875 in a high interest savings account in the UK; £4,500 in an easy access savings account in Australia. 
Pension? NHS pension (I don’t have a clue how much gross is in there but broadly, NHS pension scheme is 1/54th of earnings/year + treasury order + 1.5%/year) and here we have a Super, which is the Australian equivalent (also don’t have a clue).
Utilities: £30 gas and electricity, £17.50 wi-fi, £15 water (all my half).
All other monthly payments: £42 UK phone bill, £30 AU phone bill, £6.30 GMC licence fee (international retention fee), £4.99 medical defence insurance, £5.99 iCloud. Subscriptions: £4.99 Netflix, £4.99 Spotify, £4.99 Disney+, £1.99 NY Times, £2.99 Deliciously Ella app, £33 ClassPass.

Did you participate in any form of higher education? If yes, how did you pay for it?
Yes, I went to medical school for five years. I paid for the first four years with minimum maintenance loan and standard tuition fee loan, and then the final year is subsidised by the NHS. We received a £100/month bursary during this year and an extra £100 from our uni for travel fees during placement. My parents helped me with living costs and I worked during summers and throughout COVID to pay for holidays with friends/a car. 

Growing up, what kind of conversations did you have about money?
My parents are both extremely hardworking and have always been careful to educate me and my sibling on good spending practices. Both of them have always worked full-time and open conversations about money weren’t unusual growing up — like when we were in a more frugal period after a big holiday, for example. I am very grateful to have been in a very stable financial position throughout my childhood and I know if I did get into any trouble, my parents would be there as a safety net. 

If you have, when did you move out of your parents’/guardians’ house?
I moved out at 18, worked most summers and only returned with my partner, J, for a five-month period last year to save money before the big move to Australia. 

At what age did you become financially responsible for yourself? Does anyone else cover any aspects of your financial life?
I’d say when I started working as a doctor in 2021 is when I became fully responsible for rent, bills, etc. Currently, my parents very kindly help me pay for therapy (it is very expensive here). 

What was your first job and why did you get it?
My first job was at a summer camp for children with additional needs. It didn’t pay much but the novelty of having my own paycheque was very exciting. Lord knows what I spent the money on. 

Do you worry about money now?
I would say I do and I don’t. I am pretty cautious with spending on things like clothes (I rent for big events, and Depop/charity shop the rest), makeup and beauty treatments but I love eating out so I spend a fair amount in that respect. I worry about the cost of buying a house when/if we come home, and how we can save for this day to day (I worry about lifestyle creep here in particular). In general, I would say I have a fairly balanced approach to money but could probably be more savings-focused if pushed. 

Do you or have you ever received passive or inherited income?
Yes, I received £10,000 when my lovely, gorgeous, brilliant grandma passed away in 2021 — but I’d give it all back a thousand times over for one more day with her. We also both received £5,000 from the government when we moved to Australia as part of a relocation fee for skilled workers — a policy which has since been discontinued.

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