Early-retirement wannabe

gadgetmind

I don't buy new and go for quality cars that are 2-3 years old. We just got our first all electric car and it's a revelation regards speed, smoothness, free road tax, close to free "fuel", and free parking in Leeds city centre. Let's gloss over the purchase price ...

DairyQueen

hugheskevi wrote: »

Statement of Affairs and Personal Balance Sheet (several nil values excluded)

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3,450[plus £1,031 of pension contributions]
Partners monthly income after tax....... 3,416[plus £1,085 of pension contributions]
Total monthly income.................... 6,866

Monthly Expense Details
Mortgage................................ 263
Council tax............................. 136
Electricity............................. 31.5
Gas..................................... 30.5
Water rates............................. 23
Telephone (land line)................... 17
Mobile phone (for 2 people)............. 27
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services(offer until March).... 1
Groceries etc. ......................... 400
Clothing................................ 10
Petrol/diesel........................... 20
Road tax................................ 2.5
Car Insurance........................... 23
Car maintenance (including MOT)......... 30
Car parking............................. 5
Other travel(bicycles/public transport). 50
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 0
Buildings insurance..................... 6
Contents insurance...................... 6
Life assurance (included in pension).... 0
Other insurance (bicycles).............. 2
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 1,000
Holiday (varies a lot year-to-year)..... 300
Emergency fund (not really relevant).... 0
Total monthly expenses.................. 2432.5

Assets
Cash.................................... 20,403
House value (Gross)..................... 514,543
Shares and bonds (ISA).................. 133,373
Car(s).................................. 2,000
Other assets (piano, jewelry, etc)...... 15,000
Total Assets............................ 685,319

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52,111....(263)......1.69
Total secured & HP debts...... 52,111.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................57,655.....600.......0
Total unsecured debts..........57,655.....600.......-

Monthly Budget Summary
Total monthly income.................... 6,866
Expenses (including HP & secured debts). 2,432.5
Available for debt repayments........... 4,433.5
Monthly UNsecured debt repayments....... 600
Amount left after debt repayments....... 3,833.5

Personal Balance Sheet Summary
Total assets (things you own)........... 685,319
Total mortgage.......................... -52,111
Total credit card debt (Stoozing)....... -57,655
Net Assets.............................. 575,553

Two items highlighted.

You earn almost £7k net a month as a couple and spend £240p.a. on gifts between you - including to each other?

You clothe and shoe both of you on £120p.a.?

And you only spend a total of £120kp.a. on haircuts between you?

The second point is especially stunning. If you don't mind me asking, how on earth do you maintain yourselves in everything from drawers/shoes to winter coats on 60 quid a year each?!

mgdavid

what about travel insurance for the trips and holidays?

hugheskevi

Probably to understand the answers below, it is worth appreciating a few things about my beliefs, which I guess most would consider eccentric :

• I have quite strong environmental beliefs, and being an economist by background strongly believe consuming less is the best way to conserve the environment. Thus, I despise waste and limit consumption wherever possible. Although like most who identify with environmental concerns, I still consume considerably more than essential by virtue of having the resources to do so (ie this is a bit hypocritical).

• I view income and consumption as two completely separate things. Just because I can trivially afford something does not mean I will purchase it, even if I would like it (eg impulse purchases). The decision to purchase will be based solely on the need for the item.

• Following on from above, I don't see the point of presents. If you need something buy it. I won't know what you want better than you do, and the present may well be a waste, and at best not perfect. In terms of presents for myself, anything I want, I'll have already bought it myself So if I don't have it, I don't want it.

• I don't value clothes. For me, clothing is functional. I have never seen the point of spending lots on clothes yet not caring what the condition of the body wearing them is in (as most do, given UK overweight stats) which is far more significant.

You earn almost £7k net a month as a couple and spend £240p.a. on gifts between you - including to each other?

We don't give gifts to each other. Gifts are limited to Christmas and Birthday presents to both of our mothers, and my wife usually sends some flowers for Mother's Day. I view these as strictly a convenient opportunity to transfer resources, so give a cash transfer to my mother. My wife prefers to send non-money gifts.

You clothe and shoe both of you on £120p.a.?

Pretty much, certainly if you exclude sports gear (which I consider as entertainment rather than clothing). Including sports gear (running and cycling, especially trainers) I guess it might be a bit more.

I use clothes until they become unwearable, which takes a very long time so I have quite a few items of clothing which are many years old. The last time I bought any 'normal' clothes was about 3 years ago, and I've only used two pairs of shoes in the last 6 years. I divide my wardrobe into a few groupings, keeping my nicest clothes only for when necessary (important work meetings, etc), and replacing those as required. As clothes age, I use them for days when I don't have meetings, and eventually for just wearing around the house at week-ends.

We also both cycle to work, so most days start in basic cycling gear, get showered and changed at work, and then get changed back into cycling gear at the end of the day. That really reduces wear and tear on clothes.

Quite a few of my casual clothes come from holiday-wear (which I consider as a holiday expense rather than clothing), as several of the holidays I take need particular gear. For example, the Kenya trip earlier this year required a lot of clothing in very neutral clothes to enable close observation of animals. The trip the year before included climbing Kilimanjaro, so needed a lot of cold weather gear.

And you only spend a total of £120kp.a. on haircuts between you?

I spend nothing as I cut my own hair, just a simple number 2 all over, once every 3 weeks. In the last decade I've paid for exactly 2 haircuts, both on the 3 month trip across Africa. One of those was in a tin shack at the side of the road

My wife gets her hair cut about twice a year, three at most, usually paying about £20-£30 a time, so probably spends under £100 per year.

The second point is especially stunning. If you don't mind me asking, how on earth do you maintain yourselves in everything from drawers/shoes to winter coats on 60 quid a year each?!

My wife isn't as extreme as me, but fortunately has an enormous wardrobe from before I met her. That means she also needs very little as she just uses what she has and only buys anything new when needed.

For both of us, replacements are functional, only when required and based on value. Most clothes have second third lives, eg, when my running trainers are no longer suitable for running they become my main casual footwear, and finally my cycling trainers.

what about travel insurance for the trips and holidays?

Free within Europe with a Nationwide current account, and for trips outside Europe the cost is included within holiday cost category.

Holidays for the last decade have been limited to ones which would be difficult to do as part of a very long (ie 3 year) world trip, and I have a strong European preference to avoid costly airfares. Hence we have only been on 3 holidays outside of Europe in that time, and one of those was Israel which is pretty close to Europe. Most holidays have been to very cold countries, as they are much easier to travel to as part of a quick 2 week break. I've previously been to very cold places on much longer (1+ year trips) and you end up with most of you luggage being one or two sets of cold weather gear.

k6chris

DairyQueen wrote: »

You clothe and shoe both of you on £120p.a.?

Pah, I struggle to get close to £100 a year on clothes. What is the point? This could be the reason I get mainly gifts of various forms of atire for birthdays and Chrismas however....?!

atush

DairyQueen wrote: »

Two items highlighted.

You earn almost £7k net a month as a couple and spend £240p.a. on gifts between you - including to each other?

You clothe and shoe both of you on £120p.a.?

And you only spend a total of £120kp.a. on haircuts between you?

The second point is especially stunning. If you don't mind me asking, how on earth do you maintain yourselves in everything from drawers/shoes to winter coats on 60 quid a year each?!

I gotta say, all 3 of those stuck out for me. I am not profligate with clothes and shoes, and I take 8 weeks between haircuts and get 3/4 color treatments a year and that figure is low.

atush

Following on from above, I don't see the point of presents. If you need something buy it.

I see the point in presents at christmas and birthday, although I do usually ask for somehting practical I need such as a new phone or laptop, a case of wine we would drink anyway etc. I dont tend to buy big ticket items like the first 2 myself, I just use it as a present. And giving presents to each other, even if just a bunch of flowers or a meal out is a way of showing love and appreciation.

After all, we have 3 kids and xmas day would be pretty boring if you didnt have a package to open occasionally. Doesnt have to be pricey and i like practical present like a new frypan and tongs (on my list this year). I could go out and buy 10 pans and 20 tongs if I wanted, but I only want one each and am willing to wait until Dec to get them.

michaels

hugheskevi wrote: »

Probably to understand the answers below, it is worth appreciating a few things about my beliefs, which I guess most would consider eccentric :

• I have quite strong environmental beliefs, and being an economist by background strongly believe consuming less is the best way to conserve the environment. Thus, I despise waste and limit consumption wherever possible. Although like most who identify with environmental concerns, I still consume considerably more than essential by virtue of having the resources to do so (ie this is a bit hypocritical).

• I view income and consumption as two completely separate things. Just because I can trivially afford something does not mean I will purchase it, even if I would like it (eg impulse purchases). The decision to purchase will be based solely on the need for the item.

• Following on from above, I don't see the point of presents. If you need something buy it. I won't know what you want better than you do, and the present may well be a waste, and at best not perfect. In terms of presents for myself, anything I want, I'll have already bought it myself So if I don't have it, I don't want it.

• I don't value clothes. For me, clothing is functional. I have never seen the point of spending lots on clothes yet not caring what the condition of the body wearing them is in (as most do, given UK overweight stats) which is far more significant.

We don't give gifts to each other. Gifts are limited to Christmas and Birthday presents to both of our mothers, and my wife usually sends some flowers for Mother's Day. I view these as strictly a convenient opportunity to transfer resources, so give a cash transfer to my mother. My wife prefers to send non-money gifts.

Pretty much, certainly if you exclude sports gear (which I consider as entertainment rather than clothing). Including sports gear (running and cycling, especially trainers) I guess it might be a bit more.

I use clothes until they become unwearable, which takes a very long time so I have quite a few items of clothing which are many years old. The last time I bought any 'normal' clothes was about 3 years ago, and I've only used two pairs of shoes in the last 6 years. I divide my wardrobe into a few groupings, keeping my nicest clothes only for when necessary (important work meetings, etc), and replacing those as required. As clothes age, I use them for days when I don't have meetings, and eventually for just wearing around the house at week-ends.

We also both cycle to work, so most days start in basic cycling gear, get showered and changed at work, and then get changed back into cycling gear at the end of the day. That really reduces wear and tear on clothes.

Quite a few of my casual clothes come from holiday-wear (which I consider as a holiday expense rather than clothing), as several of the holidays I take need particular gear. For example, the Kenya trip earlier this year required a lot of clothing in very neutral clothes to enable close observation of animals. The trip the year before included climbing Kilimanjaro, so needed a lot of cold weather gear.

I spend nothing as I cut my own hair, just a simple number 2 all over, once every 3 weeks. In the last decade I've paid for exactly 2 haircuts, both on the 3 month trip across Africa. One of those was in a tin shack at the side of the road

My wife gets her hair cut about twice a year, three at most, usually paying about £20-£30 a time, so probably spends under £100 per year.

My wife isn't as extreme as me, but fortunately has an enormous wardrobe from before I met her. That means she also needs very little as she just uses what she has and only buys anything new when needed.

For both of us, replacements are functional, only when required and based on value. Most clothes have second third lives, eg, when my running trainers are no longer suitable for running they become my main casual footwear, and finally my cycling trainers.

Free within Europe with a Nationwide current account, and for trips outside Europe the cost is included within holiday cost category.

Holidays for the last decade have been limited to ones which would be difficult to do as part of a very long (ie 3 year) world trip, and I have a strong European preference to avoid costly airfares. Hence we have only been on 3 holidays outside of Europe in that time, and one of those was Israel which is pretty close to Europe. Most holidays have been to very cold countries, as they are much easier to travel to as part of a quick 2 week break. I've previously been to very cold places on much longer (1+ year trips) and you end up with most of you luggage being one or two sets of cold weather gear.

This all makes sense to me. However I do wish I had married your DW rather than mine

Triumph13

hugheskevi wrote: »

My wife isn't as extreme as me, but fortunately has an enormous wardrobe from before I met her. That means she also needs very little as she just uses what she has.

H:"Is that a new frock?"
DW: "This old thing? No, I've had it years" (strolls away chuckling quietly to self)

hugheskevi

H:"Is that a new frock?"
DW: "This old thing? No, I've had it years" (strolls away chuckling quietly to self)

Reminds me of something that happened a few years ago...

Being a fan of spreadsheets and having an interest in personal finance, I keep a very detailed track of everything, including all of my wife's accounts (updated weekly).

For a period, my wife seemed to be making unusually high cash withdrawals, for which she had no convincing explanation when questioned.

Then one day she was ill at work and had to get a cab home. Her work paid for the cab, and she said it had cost £40. When the payment from work arrived in her bank account, it was only £20. When challenged, she said it was because she did not think it fair to have claimed it all.

That was a step too far, and I didn't believe it. The answer turned out that my wife knew she had no channels of expenditure which were not closely monitored, except cash spend. She wanted some nonsense gadgetry, a Smart Watch of some description, which she know I would never agree to purchase. So she was trying to squirrel away enough cash to purchase it covertly.

I was quite pleased with my expenditure monitoring though, to pick up on something like £200 of abnormal spend, spread over about 4 weeks

Mind you, she insisted on keeping the watch, as it had already been ordered :mad: