How to fall in love with saving money

JoJoC

Just popped another £200 into the savings from husband's overtime so that's us up to £1750 total.

When I'm feeling a bit better, I'll need to work out how much I'm able to save when I get paid on Friday. I've got everything crossed that £250 will be available for saving!!

Next month is a busy one spending wise- my birthday, MIL's birthday, Mother's Day x2 (from this wage as get paid the day before) and £120 factor bill. Need to keep a REALLY tight rein on spends.

Husband also needs new work trousers (£40) and a new set of screwdrivers £35) so that'll need to be budgeted in.

focus888

I think budgeting is definitely key to saving money and also planning. Meal planning has help me loads as well. Making a shopping list and sticking to it sounds simple enough but my hand always tempted but something thats not on the list .

I know you guys have spoken about pensions before but can I ask another question? How much do you think you need in your pension pot by the time you retire to live? I know they say you should work out how much you would need each year to live and work from that but i am honestly confused how I am meant to work out how much i will need over 30 years from now.

cathybird

hello all, been out this evening and about to go to bed but will pop back to chat more tomorrow morning about today's posts, but just wanted to say that because I was out I had to grab something to eat before I went or I would have starved so I bought something from one of the local shops, one of the ones I used to buy lunch from all the time, but it just struck me as so expensive!! And it wasn't even that nice - it used to be delicious, so maybe they were having an off day. But I have really changed! Proof a person can change! I thought, "errgh, won't be doing that again - much prefer to make my own." I am quite sure it is hanging out with all of you and your good influence :A:A:A

JoJoC

Morning savers, how are you all?

I'm feeling a bit better- slightly less sore but still feeling really weak so I'm still off work. Should be good to go back to work tomorrow. Thanks for all the well wishes

Hope you had a lovely evening Cathy! It's funny how our attitudes change isn't it? Husband and I used to love having a dominoes pizza now and again, but the last time we got one we felt really full and stuffed up afterwards, totally dehydrated and just full of stodge. We've never bothered having one since! What's the point in spending £20 on a pizza that will set you back 1000+ calories and make you feel crap??

It's all positive attitude change isn't it

Focus, I love meal planning too. I do get bogged down with variety sometimes but in general it makes our lives much easier.

I'm sorry but I have absolutely no clue about pensions. I know I should learn, but I actually have no idea and need someone to give me a tutorial starting at the beginning! I pay 5% every month and my employer matches that so I'm happy with my current contributions but I have no clue what I'll end up with or how much that'll give me to live on by the time I retire.

I've decided that my budget is lacking 'events' included and I can't believe I missed these things out so seen as im feeling a bit better, I'm going to write a list of birthdays, anniversaries to make it easier to budget.

atush

I used to Love the luxury M&S sandwiches. But now not so much, so it is probably that.

The only time I have them now, is on the ferry back and forth from the mainland. So much cheaper (and still nicer) than ferry food. I also bring them on flights sometimes too lol. Now that isn't MSE as a meal can be included (on long haul) but it helps to not Have to eat that food lol. but is still cheaper than buying food from the airline on board.

Eco_Miser

focus888 wrote: »

I know you guys have spoken about pensions before but can I ask another question? How much do you think you need in your pension pot by the time you retire to live? I know they say you should work out how much you would need each year to live and work from that but i am honestly confused how I am meant to work out how much i will need over 30 years from now.

Work out how much you need now, adjust it for not having commuting costs, and not having a mortgage any more, if that will apply, and for any other lifestyle changes you plan on. That gives your annual need at today's values. Find out how much you would need to buy an annuity (or to take a drawdown) for that much now (but 30 years older). That gives a minimum for your pot. Then inflate by your guess at 30 year's worth of inflation (remember it compounds).

boglehead

focus888 wrote: »

I know you guys have spoken about pensions before but can I ask another question? How much do you think you need in your pension pot by the time you retire to live? I know they say you should work out how much you would need each year to live and work from that but i am honestly confused how I am meant to work out how much i will need over 30 years from now.

Very rough approach

Start with how much you need today, exclude expenses related to kids, mortgage and commuting. Bump up your travelling and going out budget. Generally accepted principle is that you will roughly need 80% of your current budget.

Let's say it's £25k a year for sake of argument. If you are eligible for a state pension (assumed to be around £13k), then you will really only need an incremental £12k of income.

In order to get £12k of annual income, you will need a £300k pension pot, which will generate a 4% return after tax. In order to get a £300k pot by the time you retire (which seems to be in 30 years according to your post) - you would need to save £420 a month for the next 30years... invested at 4% as well.

You will notice that I have excluded inflation - and that's because the return figures I have shown are in real terms - so no need to take inflation into consideration.

It's very basic, but I hope it helps you get an order of magnitude

cathybird

hi all, just wanted to say sorry haven't been about much today, some bad news about a friend yesterday and then I got in to work to find another colleague had got assaulted on the way home last night and was in hospital! A really terrible day for both of them

JoJoC

Gosh, that's so horrible Cathy, no wonder you weren't around. Hope they're both ok, or as ok as the can be.

Has today been a bit better?

cathybird

Today not so bad apart from the news about the colleague - she will be all right though (hopefully). I'm not close to her, it's just a nasty thing. Thanks for asking, JoJoC Glad to hear you are feeling a bit better.

Off to bed now. Hope everyone else is well and having an MSE day.