Ricardo Alba has £23,000 saved in pension pots but is hoping to rely on a buy-to-let portfolio to finance his retirement
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 Ricardo Alba, 37, who lives in London with his partner, Tom, 31. Ricardo quit his full-time job in architecture in 2024 and took the plunge creating his own money coaching business, The Money Architect. This reality of quitting a regular nine-to-five was stark, with Ricardo making zero money in some months. Ricardo does not plan to rely heavily on pensions in later life and is, along with Tom, keen to build a portfolio of rental properties.
Monthly budget
My monthly income: I make between £400 and £600 a month from my money coaching business, The Money Architect. I also bring in about £1,100 a month from project work as a solo architect. Each month I also earn between £80 to £200 from teaching Spanish. My partner works in finance and has a much higher income. The dividends and interest from our existing investments and savings come in at about £285 a month.
My monthly outgoings: Most of these, including the rent and bills, are shared with my partner. Mortgage, £1,340; council tax, £265; groceries, £400; gas and electricity, £100; water, £52, home and contents insurance, £28; broadband, £25; mobile, £14; gym, £80; Netflix subscription, £12; eating out, around £500, but this varies. I don’t have a car, so I spend money on public transport and taxis each month. I am not currently adding money to savings, investments or a pension. Last year, we had eight holidays costing £7,000 in total, but that was a one-off and we won’t be repeating it every year. For clothes, we both like shopping at charity shops.
I grew up in Malaga, Spain, with my parents and sister. My parents taught us the value of money and how to manage it from an early age. They instilled an excellent work ethic in us.
My dad worked at a natural gas company, while my mum had various on-and-off secretarial and accounting jobs.
I studied architecture at the University of Malaga from 2006, completing work experience in Poland and Chile.
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I moved to London in 2016 and started working in architecture full-time, focusing on high-end residential projects. Over the years, my pay increased to £46,000 a year, with two Fridays off per month. I enjoyed it, but the job was demanding and intense.
In 2024 I quit my full-time job in architecture. Tom and I both needed a break from London and went on a mini-sabbatical to Athens, Greece.
At this point, I knew I wanted to build a different career for myself and find new sources of income, while enabling us to enjoy a more nomadic lifestyle.
Ricardo Alba with his partner, Tom. Ricardo gave up his full-time career in architecture
But I went from having a monthly salary to total uncertainty, and that was daunting, even though I knew Tom’s income would still be there.
I started my money coaching business, The Money Architect, last year. My interest in money management really kicked in when I first moved to London. I managed to save £25,000 on low pay within three years and have never been in debt.
I became a bit obsessed with the idea of increasing my net worth and my savings, as well as keeping track of all my income and outgoings.
In some months early on, I made no money from the business. But I knew I had to persist and wanted to help other people with their approach to their finances, no matter how small the issue they face.
I now make between £400 and £600 from face-to-face and video consultations with people. I hope to grow the business significantly in the coming years. On top of my money coaching business, I’m still doing projects as a self-employed architect. I also teach Spanish.
The whole point of me quitting my job was to try and enjoy a more digital nomad lifestyle and create a new way of life. Tom works remotely, and now I don’t have an office to commute to, we split our time between London, Athens and Spain.
I’m not adding any money to savings or investments at present, though I do have a cash Isa, stocks and shares Isa and investing account. Tom and I purchased a one-bedroom flat for £52,000 in Athens recently. We are renovating it and turning it into a rental property later this year.
This project is eating into our savings, but will hopefully prove fruitful in the long run. In time, we hope to have at least five rental properties.
In London, we live in a two-bedroom flat near Elephant and Castle that we purchased in December 2020 for £362,000.
The cost of living in the UK, and London in particular, is very high and has risen significantly in the past few years. What is problematic is that tax thresholds have remained frozen in the UK. It’s a stealth tax, and people are paying the price.
I have £23,000 saved in old work pensions, but am not currently contributing to a pension. In later life, I plan to rely on a mixture of savings, investments and income from rental properties. I view money in pensions as an additional source of income in later life, but not the main source.
I am quite motivated by money, but not as much as I used to be. I used to count every penny. That’s not happening now and I’m not as anxious about money as I was. That said, I want to amass as much as possible to be financially secure.
Once mortgage-free, £2,000 to £3,000 net each, every month, would be more than enough for us as a couple. We are aiming to get our mortgage in London paid off within the next five years.
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