no savings

Floxxie

BIZZYIZZY wrote: »

Thanks for all the advice, and yes i am thinking about the mfw board, It is just that when you read threads about people having lots and lots to invest I think Gulp!!!!!!!, Also I feel that a lot of you save EVERY SINGLE PENNY, where as...... wait for it we have sky (big package) I don't always look for the best bargain etc etc, So you might say what is she doing here!!!!

Hi Bizzyizzy,

I'm also from the MFW board but all my earnings come from the various ideas on this board so it can be done! Don't get caught up in what others earn or have saved. Concentrate on your target - whether it is getting some savings together or reducing the mortgage or outgoings.

Good luck!

Floxxie

Baz_2

DiggerUK wrote: »

@ BIZZYIZZY,
I'd advise you to get rid of your mortgage as quickly as possible. If the problems created by the bailouts come to fruition then we could be back to 1980 style inflation.
Having a saving plan when you still have mortgage debt is putting the cart before the horse.

If your current mortgage rate is currently, say, 5% and you make extra payments then by a reverse process your are benefiting by getting a higher rate of interest than the best paying ISA at the moment.

I would make the mortgage your number one priority.
Good luck.

Why would paying of debt as quick as possible be the best thing to do if inflation was rampant?

Surely inflation is good for people with large debts, as it means the debt reduces by itself due to the decreased spending power. The debt remains the same though so less is needed to pay it of in real terms. Using savings to go buy a holiday would cost you more due to inflation, but to draw it out and pay of the mortgage would just be the same no matter what inflation rates were.

I don't disagree that the mortgage should be paid off as soon as he can but not due to impending inflation rises. Its just the interest cost that is important.

[Deleted User]

Do a time line from now until a year or so after retirement and be very honest. Put down all your outgoings etc

Having been retired for one year and me and dh living on my small pension plus savings, I can speak from experience: I also manage my dh`s sipp which will be vested in 2012

stage 1: Pay off ALL debt as a priority and then save every penny you can. Stage 2: Start off with bs accounts until you have a nice safety net ie in case of emergency, to cover all bills for 3 months. Stage 3: Then start to diversify eg long term savings in n and i savings certs, add to your pensions in sipps perhaps. There are several options at this stage

In our case the savings came about in exactly the stages above and bit by bit the pennies do add up