Can you tell how much money we have just by looking at our faces? One has £1M, another is a property mogul… and a third had problem debt

They say you can judge a book by its cover, but can you tell a person’s financial situation just by looking at them?

When it comes to money, appearances can often be misleading. Someone who drives a high-end car, takes multiple foreign holidays a year or lives in a detached house may also be juggling a mortgage with high interest rates, personal loans, childcare bills and rising household costs.

Debt is widespread across the UK. About 84 per cent of UK adults have some form of credit or loan, according to the latest Financial Lives Survey by the Financial Conduct Authority.

Mortgage holders in particular are more likely than average to also have a personal loan, suggesting that even people who appear financially comfortable may be balancing several forms of borrowing at once.

Philly Ponniah, a financial coach who supports high earners, says money is one of the easiest things to misread because what you see is often funded by what you don’t. 

She says: ‘I work with high earners who look “sorted” from the outside, yet feel anxious about money behind closed doors. 

‘They might have a great salary, a nice home and regular holidays, but they are also carrying large mortgages, school fees, lifestyle costs and sometimes debt that keeps them stuck in a cycle of earning and spending.

‘The key point is that income and wealth are not the same thing. Someone can earn over six figures and still feel financially stretched. That’s why judging financial wellbeing based on appearance is so unreliable.’

The Daily Mail and This is Money spoke to five people of all different backgrounds, who reveal the reality of their finances and explain the choices, setbacks and sacrifices that have shaped their financial lives.

Lizzie…

Lizzie Davey, 35, is a freelance copywriter living in Brighton, writing for technology and software companies in e-commerce.

Lizzie has around 12 years’ experience, initially starting out as a travel writer after moving to Spain in her early 20s. When she moved back to the UK, she changed her focus to marketing for retail technology companies.

In the early days of her career, Lizzie worked very long days for low pay – sometimes working up to 14 hours and charging £25 per article that could take hours to write. Now her minimum rate per piece is £850.

Her business turnover was £231,871 in the 2023/24 financial year and about £190,000 in her latest year. 

She pays herself about £75,000 as an annual salary, with the remainder going towards tax and business costs (such as renting a co-working space), held as cash in the business or invested in the stock market through a pension and business investment account.

Lizzie’s finances: High earner with an income of £190,000-£230,000 a year 

She believes clients come to her because of her specialist knowledge in the e‑commerce sector and her ability to translate complex or technical topics into clear, accessible content.

Lizzie, who writes a weekly newsletter for freelancers offering tips for success, says: ‘I’m aware that AI is seen as a competitor. But in this space, having a specialist writer helps companies drive sales and conversions in a way that AI can’t. 

‘I have many years‘ experience and, while people may think I charge a lot, the companies earn this back and more through sales. I‘m reliable, and clients know they can count on me and are willing to pay a premium.’

Lizzie bought a three‑bedroom 1930s house on the outskirts of central Brighton in March 2024, where she lives alone but has a partner. She previously owned a small flat in the city centre.

She usually works a four‑day week, with Fridays reserved for gym classes, freelance events, the beach, long lunches or seeing family.

Lizzie describes it as ‘a good life’ that fits her preferred lifestyle and aims to retire at 55.

‘I may pivot at some point or change careers if needed. But at the moment, doing what I’m doing suits me. The plan is to retire early and that’s looking doable, although I’m not quite sure yet what retirement will look like for me,’ she adds.

Melanie…

Melanie O’Reilly, 69, from Lancashire, had a successful career, starting out as a personal assistant in London working for senior executives.

She later moved into sales and, after relocating to Johannesburg, in South Africa, built a successful office furniture business, managing major projects worth several million pounds across South Africa and Zimbabwe.

But Melanie wanted to be closer to her son, now 35, who had moved to Lancashire, and her five-year-old grandson. She returned to the UK when she was in her early 60s and rented a studio flat. 

Unable to replicate her business here, she took a job at a call centre on modest pay, dealing with queries about benefits and other council services.

With little in savings and living costs continuing to rise, Melanie took out loans to cover furniture and day-to-day expenses, borrowing a total of £15,000 from her bank.

Melanie’s finances: Fell into debt now on state pension and pension credit

Melanie says: ‘I couldn’t be a PA again because I’d been out of it for so long, and I didn’t want to go back into sales, so I ended up at a local call centre. 

‘It was extremely busy and I’d be on the phone constantly from 9 to 5, dealing for the most part with people who were unhappy or angry.’

She said the work was high pressure, breaks were limited and staff turnover was high. She stayed for three years, deciding to retire at 66 as she was able to claim her partial state pension.

After doing some research online, she discovered she could also apply for pension credit and housing benefit, as she had very little in the way of private pension income.

The problem was that, once she retired, she could no longer afford the £500-a-month loan repayments on her debt. While they had been manageable when she was working, they became unsustainable after retirement.

After contacting her bank, she was advised to speak to Money Wellness, which provides free debt advice and support.

Money Wellness carried out a full income and expenditure assessment. Based on her disposable income in retirement, it helped arrange lower, affordable repayments based on her retirement income.

This meant Melanie was able to pay off the debt without falling into financial crisis.

She says: ‘They really helped me out, and after I phoned them for advice I just couldn’t believe my good luck.

‘I was worried bailiffs would turn up at the door because I was beginning to fall behind. Their help has allowed me to retire gracefully.’

Alex…

Alex Finch, a 28-year-old management consultant from Hertfordshire, is a savvy investor who has committed to putting as much as he can into the stock market and his pensions each year.

Alex currently pays £20,000 a year into a stocks and shares Isa, the maximum annual allowance. The value of his pot stands at £83,000 since becoming serious about Isa saving since 2023, when he had £10,000 in his Isa. 

He says he has made £18,809 in investment by predominantly putting his money in funds that invest in global shares.

He also pays 6 per cent of his annual salary into his workplace pension, which his employer matches to take the annual total to 12 per cent. The minimum you can pay into your pension is 5 per cent a year, while your employer must put in at least 3 per cent. His total pension value currently stands at £58,000.

Alex’s finances: Investor with £83,000 in his Isa at 28 

Alex became serious about investing aged 23 after reading a personal finance book on holiday about investing in the stock market. He documents his saving and investing journey on his YouTube channel Finch Finance UK.

Alex bought a two-bedroom flat with his partner last year with a £50,000 deposit. Despite being a keen saver and investor, he still makes sure he enjoys life. He goes on holiday at least twice a year, most recently travelling around Thailand, Singapore and the Philippines.

He says: ‘My attitude towards money is about balancing aggressive saving with enjoying life. I prioritise investing consistently, but still spend on experiences. I see money as a tool for long-term freedom, not something to restrict my life.

‘This approach is sustainable because it’s flexible. If my circumstances change, like having children, my spending focus areas would adapt, but the core principles would stay the same – live within my means, invest regularly and plan ahead.’

Harry…

Harry Johnston OBE, 79, began his career in the RAF working in airfield construction. After being medically discharged, he embarked on a successful career in property development. 

He set up a construction company, in which he and his wife still own a 40 per cent stake, has owned hotels around Greater Manchester and built up a buy-to-let property portfolio with his brother-in-law.

Harry says they now own 40 flats, worth a combined £4.5million, which are all mortgage free and which they personally manage (alongside another five flats they manage for a charity).

He says: ‘People don’t realise that managing 45 properties is practically a full-time job. Tenants call me up at all times of the day. The other day someone flooded the entire flat and the flat below it after they decided to defrost their freezer.’

Despite the large portfolio of properties, Harry says he only makes a ‘relatively modest’ income from the buy-to-lets.

Harry’s finances: Owns 45 properties with rental income of £450,000 a year 

He says: ‘The income is shared between my wife and I, my brother in-law, his wife and my eldest son, who is involved in the business, too. In total, the flats generate around £450,000 in rent each year, but we spend around £200,000 of that on repairs, upgrades and compliance across all the properties.

‘We look after our flats and they are all high-quality units. We even employ a contract gardener.’

Splitting £250,000 five ways, pays out £50,000 to each of the family members.

At present, the portfolio is valued around £4.5million, although Harry believes that property prices are on their way down at the moment.

Aside from his businesses, Harry and his wife own a 17th century converted farm house near Clitheroe in Lancashire, a flat in Manchester and a villa in Madeira in Portugal. 

Harry received an OBE for his work as chief executive of the North Manchester Jewish Cemeteries Trust in 2017.

‘I am big believer that you have to give back to your local community, you can’t just take out,’ he says.

Katie and Alan…

Katie Donegan was an actuary earning £58,000 a year when, in 2014, she and her husband Alan, who was on £63,000 a year as a business trainer, embarked on an extreme budgeting journey.

The married couple started by investing £100 a month in stocks and shares – but soon stopped spending anything that was not just for basic survival needs, such as food and bills, until 80 per cent of their income went towards their retirement plan.

The pair subscribed to the mantra of an online community called Fire, which stands for Financial Independence Retire Early. 

The movement is popular in the US and advocates investing as much as possible in your youth so you can stop, or reduce, the amount you work long before retirement age.

Katie and Alan’s finances: £1million saved and retired at 35 

The Donegans even sold their flat in Basingstoke, Hampshire, for £240,000 in 2021 and invested the proceeds. In just five years, they say they managed to save £1million. 

Alan and Katie have set up a free online ten-week course, where they promise to share the secrets to their success and help you achieve ‘financial freedom’.

Recently, they won the British Empire Medal (BEM) for their services to financial education through the money management course Rebel Finance School (rebeldonegans.com). 

Additional reporting by ED MAGNUS and TOBY WALNE