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 Melissa Layton, 34, who lives in Camden, London. Melissa used to earn £90,000 a year working in law, but quit to focus on running her own wellness business. Melissa, who boosts her income via Airbnb, told
The i Paper
she doesn’t miss the money she made in law and values her freedom and health more. She has £40,000
saved in a pension, but has no plans to retire.
Monthly budget
My monthly income:
My income varies from between £2,500 and £4,500 per month via my wellbeing business, Numinity. Via this, I do corporate workshops, retreats, online courses and events. When I travel, which is often for weeks at a time, I Airbnb my flat for about £500 a week. The income via Airbnb will usually comfortably cover my mortgage and expenses for the periods I am not working.
My monthly outgoings:
Mortgage, £1,165; council tax, £126; groceries, £250; electric, £140; water, £20; broadband, £28; mobile, £55; public transport and taxis, £100; Vanguard pension, £200; salsa lessons, £45; therapy, £150; private Spanish lessons, £60; money to charity, between £30 to £50; eating out, social activities, events and going to the sauna, £150. I have Amazon Prime, which costs £95 a year, and a Babbel subscription, costing £70 per year. My home and travel insurance costs £200 a year. The annual service charge for my flat is £800. I add about £5,000 a year to a stocks and shares Isa.
I grew up in London and both my parents were doctors. My family taught me the value of frugality and generosity. I’m very minimalist and couldn’t care less about fashion or fine dining!
I’ve always been enterprising and entrepreneurial. As a child, I would walk my neighbours’ dogs for £1 an hour and negotiate with my babysitter to do household chores for small sums of money – 5p to set the table, for example!
I always had part-time jobs throughout my teens and university years, from babysitting to working in cinemas and cafes. I studied music at the University of York before converting to law.
I started my legal career in 2017 and worked as general counsel for a tech start-up, earning £90,000 a year by the end. I loved using my brain, but working for someone else felt limiting. Freedom and a sense of purpose matter more to me than amassing wealth, so I transitioned from law to working on my own start-up, Numinity, full-time in October 2023.
I now run the firm, which offers corporate wellbeing workshops, courses, retreats and personal development services. I’m currently making between £2,500 to £4,500 per month from this.
My family are all super hard working and it’s been a journey for me to find a balance between the part of me that is very entrepreneurial and enjoys working hard and the part of me that loves resting, relaxing and generally enjoying my life.
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Despite the high earning potential of a career in law, I don’t miss the money at all. My life is very comfortable and rich in experiences, and I have more than enough to do the things I love. By Airbnbing my flat when I travel, I am able to take time off freely without worrying about money. I also know if I wanted to earn more, I could. My priorities might shift if I have a partner or family one day, but for now I’m content with earning less and having more freedom.
My flat cost £500,000 to purchase in 2022.
Using Help to Buy meant I was able to buy the flat with a lower deposit. My mortgage repayments are about half what I would pay to rent a similar flat. I fixed my interest rate with Natwest at 2.04 per cent for five years and it will expire in 2027.
I bring in about £500 a week
if I Airbnb my flat while I’m away,
but this varies depending on the time of year and occupancy. I also pay a company to manage this for me so I don’t have to think about it while I’m away! They charge about 20 per cent to clean the flat, change the bedding between bookings and respond to all guest enquiries.
I would say my relationship with money is balanced. I spend generously on what matters and save where it doesn’t. I have a moderate risk appetite for investing and contribute to a Moneyfarm stocks and shares Isa. I usually manage to add about £5,000 a year to this.
I also prioritise my pension, putting £200 per month in a Vanguard pension. I have around £40,000 saved in my pension to date, most of which came from my legal work. I don’t think the UK state pension is enough to live on comfortably, but still feel maintaining it is essential for those who rely on it.
Retirement isn’t on my radar. I love my work and have a great work-life balance. I can envision doing what I am doing now for life. I take plenty of time off and look after my health, meaning the traditional concept of retirement doesn’t feel urgent.
I see money as freedom. It gives people the ability to make decisions unclouded by fear or scarcity. I’m not chasing vast wealth but value financial independence and the security to live life on my own terms. Ideally, I’d like to earn enough to continue living well, growing Numinity, travelling, and supporting causes close to my heart. I’m not motivated by a specific figure, just the ability to live with choice and autonomy.
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