Hundred grand in 23 years

135

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  • Fatbritabroad
    Fatbritabroad Posts: 573 Forumite
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    Can I also just say congrats on getting out of debt
  • BananaRepublic
    BananaRepublic Posts: 2,103 Forumite
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    Renting rather than buying a home is plain stupid, you are throwing away money. A house is a great investment, so why fund your landlord's retirement? As to the house you can afford, learn to live within your means. And move up in ten years. Or buy a run down place and do it up.

    A pension is good, at age 55 you can take money out, but best not.
  • jdw2000
    jdw2000 Posts: 418 Forumite
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    I have friends the same age (early 40s) in the same postition. They could have bought properties but chose not to.

    Buying my house was the single best decision I ever made.
  • Bravepants
    Bravepants Posts: 1,502 Forumite
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    edited 18 March 2017 at 11:56AM
    I live in a terraced house, it's beautiful, comfortable, has everything my partner and I need. We have space to entertain friends and family, with BBQs and parties, space for private parking, wooden floors, a piano, big TV, mortgage is fully paid off. You don't have to live in a massive house and pay rent to be comfortable or "happy" as you call it.

    I grew up on a crappy council estate as part of a one parent family, on the poverty line, yes I know what it's like to be truly flippin' miserable. I know now I do not intend EVER to go back there and I've worked hard for it, but I still live in a modest house because well that's more than I had when I was a kid, and i'm very comfortable and happy thank you.

    You would be better moving to the North of England (if not already there) buying a terraced house where they are cheap, paying the cheaper mortgage (compared to throwing money away on rent) and then investing in a SIPP if you don't have a work's pension, or an ISA as has been said.

    In the meantime spend some time developing your skills and knowledge to improve yourself and find a better paying job.

    It's a cold hard world out there and people need to fight to survive sometimes.

    But you don't want to be doing your fighting when you are too old or ill to work anymore; do it now while you got 23 years ahead of you before retiring!!

    If you're living beyond your means now, you will definitely be living WELL beyond your means in 23 years time.
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • atush
    atush Posts: 18,726 Forumite
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    BananaRepublic wrote: »
    Renting rather than buying a home is plain stupid, you are throwing away money. A house is a great investment, so why fund your landlord's retirement? As to the house you can afford, learn to live within your means. And move up in ten years. Or buy a run down place and do it up.

    A pension is good, at age 55 you can take money out, but best not.

    This.

    Buy yourself a home. Get over your attitude against a terrace if that is all you can afford, you wont be able to afford even that once you retire with just 100K.

    Build up another 20k plus, then get on the ladder.

    In the meantime, try and change your thinking. Having money in a pension where you cant spend it is a great thing. No one can take it from you to pay debts, and no one can make you spend it on living if 'disaster' strikes. Your 20K could suffer one or both of these fates.
  • sparkychris
    sparkychris Posts: 572 Forumite
    Morning team.

    With regards previous posts...

    I don't have an attitude towards terraced homes and I don't consider it beneath me. Like bravepants I was also brought up on a council estate and have seen struggle. I have lived in terraced houses, bedsits, flats, house shares and have been a lodger. I've even lived rough in a sleeping bag. Unlike bravepants it has taken me much longer to get my botty in gear. I'm not a victim and I'm not bitter about anything- I have made all of my own ill informed decisions.

    However, I am now in the position I'm in and can honestly say that living where I live right now has made me the happiest I've ever been in my life and although it would make good economical sense for my to move to Rochdale and buy a terraced house, it's just not going to happen.

    My bills are split 50/50 with my partner, I have one holiday a year in the lakes, my car cost two grand and it has years left in it. When it dies I'll get another two grand car.I have no credit cards or loans. I shop carefully, eat my own sheep and eggs and brew my own beer. I don't feel that I live beyond my means.

    I appreciate the time everyone has taken to reply and have been thinking about this thread and think that I should indeed be looking into a pension now I have my buffer. I think that I have felt so proud of my little nest egg that I have wanted to watch it grow!

    I do think though, that's it's not the worst idea in the whole world to buy a place (perhaps even terrace! ) that I may be happy to live in when i'm old and manky and I've got no teeth and I wee when I laugh and my back is ruined and I'm blind now, and spend the next 23 years (or whatever) renting it out and looking after it, whilst renting my place in the country.

    So... I will be looking at pensions.

    You win ;)

    Thank you.
    :cool::cool: lurker:cool::cool:
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    sparkychris wrote: »
    Hello team!

    I have been awful with money my whole life and up to my neck in debt until a few years ago when I had my light bulb moment and dug myself out of debt.

    I am now allergic to borrowing and rent my home, which is not wise, I know.

    If I want to retire in 23 years time with a lump sum, how would/could I work out how much I would need to accrue, one way or the other that would equate to a hundred grand of today's money?

    I am up to about 20k at the minute, and won't lock my cash away in pensions. I pay into a ls 80 fund, punt on shares and basically just save up!


    So, you are continuing to be awful with money.

    Really no point advising you, what's the point telling someone best way to save if they burn a fiver each time they save a pound?

    Edit; just seen your last post, so, good decision.
  • atush
    atush Posts: 18,726 Forumite
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    I agree, you are coming around. And if the terrace you buy to rent is your only home, you will save some of the extra costs BTL investors face now. Basically, you need somewhere (not isolated) to live one you are old, and privately renting is very expensive for pensioners and insecure as you could be told to leave at any time.

    Pensions really are the way forward for you. Are you employed or self employed?

    PS, you c an continue to watch your 20K grow, if you keep putting it in high interest accts available, and consider putting half in a S&S isa for long term growth.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    atush wrote: »

    PS, you c an continue to watch your 20K grow, if you keep putting it in high interest accts available, and consider putting half in a S&S isa for long term growth.

    You can also watch it grow by putting it in a pension and reading the statements every year.
  • Dird
    Dird Posts: 2,702 Forumite
    First Anniversary Combo Breaker First Post
    sparkychris wrote: »
    My slightly less scary idea is a buy to let so that a tenant would help pay for my property over 20 years or so.
    I suggest you watch the following:
    - Can't Pay We'll Take It Away
    - Here Come the Sheriffs
    - Nightmare Tenants, Slum Landlords

    There's a real chance that not only would you be paying your £650/month but you'd also be paying the mortgage on your BTL and eviction fees when you get a tenant who stops paying; then rennovation fees to make it presentable to rent again as they typically leave the places in a mess. Also many mortgage providers expect you to own your own home before BTL

    Are you working now? Does your company provide a work pension? If so I'd max out the matched contributions in that then keep the £20k in the bank (filtering some towards Regular Savers paying 5%) with the plan on using it to buy your own house, not a BTL. You say you like a tenant paying your mortgage...the same way you're paying someone else's mortgage right now? There's no major difference between a semi & a terraced
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 11
    Mortgage (May 19): £71,754 | £30k in 2016: £30,300 (101%)
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