How to fall in love with saving money

cathybird

Thanks, Wilkins and Frugal90. I will check out both monevator and nutmeg.

Eco_Miser

Well done on reaching your target early, cathybird.:j

cathybird wrote: »

I have read research that suggests that putting lump sums in can work just as well as regular investment, if not better. It can get very confusing as the results in these studies always seem to come down to what data they select and how they use it.

Personally, I'd say that research nearly always proves what it is trying to prove.:D Cynical? Moi!?

Really, if you want to invest:

• Got a lump sum? Invest it. Just try to avoid the top of the market.
• Got excess income? Set up a regular investment plan. The rises and falls will even themselves out.

cathybird wrote: »

Eco Miser, I'm really curious - at what point did you decide you were going to retire early,

When my employer said "We're about to run out of money, so we're closing at the end of next month". Christmas '08, it was. :sad:



I was working for a charity, my salary had always been paid by a grant from a funding charity (Lottery, Northern Rock Foundation,...), and I knew our applications for further funding had not been successful (Don'tcha know there's a recession on?), so it wasn't a surprise.

Alternatively, when my employer said "We're closing the plant on 8/8/80. Here's some money. Goodbye". That one didn't last, but I've still got some of the money, in a single fund, my first.

cathybird wrote: »

and how long did it take you before you made your plan become a reality?

It was sort of instantaneous.:)
Or it took half a lifetime of preparation.

cathybird wrote: »

Did your investments play a key role in your retirement plans? ...

Yes. Early retirement without an investment income just isn't going to work.:laugh:

(unless you can get a pension income)

I never planned for early retirement until it was thrust upon me, but I did save so that I'd be able to afford whatever I needed in the future. After my first redundancy, I'd got a lump sum worth talking to an IFA about (then, not now). So there I was at 30, with a tiny independent income, no real prospect of a job, in a town with thousands of newly unemployed. Consider myself retired , or on the dole (which I wasn't):(? Retired, obviously.

Second time was much easier: ((Savings/spending_rate) + current age > 100) => RETIRE!

That's ignoring State Pension (when I get it), dividends, interest, and inflation, and hoping the first three beat the last one. So far, they have.

cathybird

WantToBeSE wrote: »

In deed i am! I am aiming to save £600 a month :eek:
Not sure if it's doable, but i hope to be getting lots more clients at work..so we'll see!

However, not sure what's going to happen, as i refuse to live here for another year so after the car savings, that is my main priority.

Well, you've got to be happy where you live. But £600 a month is a pretty impressive amount to aim for.

cathybird

Eco_Miser wrote: »

Well done on reaching your target early, cathybird.:j

Personally, I'd say that research nearly always proves what it is trying to prove.:D Cynical? Moi!?

Really, if you want to invest:

• Got a lump sum? Invest it. Just try to avoid the top of the market.
• Got excess income? Set up a regular investment plan. The rises and falls will even themselves out.

When my employer said "We're about to run out of money, so we're closing at the end of next month". Christmas '08, it was. :sad:



I was working for a charity, my salary had always been paid by a grant from a funding charity (Lottery, Northern Rock Foundation,...), and I knew our applications for further funding had not been successful (Don'tcha know there's a recession on?), so it wasn't a surprise.

Alternatively, when my employer said "We're closing the plant on 8/8/80. Here's some money. Goodbye". That one didn't last, but I've still got some of the money, in a single fund, my first.


It was sort of instantaneous.:)
Or it took half a lifetime of preparation.

Yes. Early retirement without an investment income just isn't going to work.:laugh:

(unless you can get a pension income)

I never planned for early retirement until it was thrust upon me, but I did save so that I'd be able to afford whatever I needed in the future. After my first redundancy, I'd got a lump sum worth talking to an IFA about (then, not now). So there I was at 30, with a tiny independent income, no real prospect of a job, in a town with thousands of newly unemployed. Consider myself retired , or on the dole (which I wasn't):(? Retired, obviously.

Second time was much easier: ((Savings/spending_rate) + current age > 100) => RETIRE!

That's ignoring State Pension (when I get it), dividends, interest, and inflation, and hoping the first three beat the last one. So far, they have.

Eco Miser, fascinating It says a great deal that you had saved up enough money to be able to cope with losing your job so abruptly in both cases. I hope at least in income terms that you don't have long to wait for the state pension. Though I have always survived whatever happened I have not worked hard enough at having money in the bank to cushion me - I've always just got lucky and got another job. It's wise to have the cushion.

Eco_Miser

cathybird wrote: »

Eco Miser, fascinating It says a great deal that you had saved up enough money to be able to cope with losing your job so abruptly in both cases.

The first redundancy had a fairly generous pay-off, otherwise I'd have really been in trouble.

cathybird wrote: »

I hope at least in income terms that you don't have long to wait for the state pension.

I'll be getting my pension in a bit more than a year's time. Then I'll probably start accumulating savings again, just because my income will be more than I need.

cathybird wrote: »

Though I have always survived whatever happened I have not worked hard enough at having money in the bank to cushion me - I've always just got lucky and got another job. It's wise to have the cushion.

I suspect those who really want a job will be lucky enough to find one.

cathybird

Eco_Miser wrote: »

I suspect those who really want a job will be lucky enough to find one.

I've survived through till now though it was tricky at times - I started freelancing again a year before the 2008 crash and while looking back I actually got plenty of work for the subsequent three years it did often feel as though it was all about to fall apart (though freelancing can feel a bit like that anyway). I will be all right from here on in, fingers crossed, though even now I'm in a shrinking industry and there's not much money around. But I need to get sensible finally and start planning long-term. The job I am in now pays a good pension - I need to take advantage of it. It might make all the difference re whether I can pay my future heatings bills or not.

cathybird

Eco_Miser wrote: »

I'll be getting my pension in a bit more than a year's time. Then I'll probably start accumulating savings again, just because my income will be more than I need.

I really admire this ... what I'd do in your position is ratchet up the central heating to about 30 degrees instead and spend the money that way :rotfl:

cathybird

Well, it's nearly payday and I have to start thinking about my goal for December. I did meet my goal this month, but the main thing that stood out to me last month was my spend on food (even though I stuck to my plan for taking lunch to work). So I have to take a good long look at that. I also have to settle on a realistic figure I can save each month and start working out where is best to squirrel it away. I reckon I could potentially do £1,000 but it will be a challenge.

Eco_Miser

cathybird wrote: »

I really admire this ... what I'd do in your position is ratchet up the central heating to about 30 degrees instead and spend the money that way :rotfl:

Too hot! I put my central heating on a few days ago. When the room temperature reached 15C I turned it off because i was too hot.

cathybird wrote: »

I reckon I could potentially do £1,000 but it will be a challenge.

Put £500 or more away as soon as you get it, along with what's left over from the previous month. You don't want to actually leave yourself short, nor give yourself the impression that you've got plenty of spare money.

115K

:wave: Hello to everyone.

I was thinking of keeping a separate emergency fund of £1,000 that I can access at any time as I wouldn't want to touch the ISA savings if our boiler broke or something.

Do you think I should try and set up a normal savings account for that or open another ISA. I can open another ISA in my DH's name for this year?:question: