The march to financial freedom

Eager_Elephant

Here is the recipe for the Granola - http://mortgagefreeinthree.com/2014/04/frugal-indulgence-maple-and-walnut-granola/


It's great because I usually make it at weekends and it lasts a week in an air tight container.


If you are going to do GF long term could you try out the gluten free versions of the things you are missing?
I do miss naan bread as well but find that poppadoms are fine with curry (I tried GF naan but it was a plain one and it wasn't worth it, if it had been garlic it might have tasted better). I thought I might miss garlic bread although we didn't have it that often anyway but I cooked some this week and didn't even think I was missing out by not having it.


I think after a few weeks you won't miss them quite so much - it just takes time for the head to adapt to the new way of eating.

Ali-OK

Thanks EE, got a bit of shopping to do for ingredients but a great summer brekkie to look forward to making and eating

The cost of GF ready-made foods puts me off, plus haven't seen any in Ald!, so it's an extra trip to nearest supermarket (Sbugs) to get stuff. I'll live without I think .

My day started off fairly well - bleached sink, ironing done, stairs hoovered, cloakroom cleaned and then I sat down. Fatal mistake :rotfl: The morning had gone :eek:

After lunch, the study called and my eye went straight to my shelf of books (the rest DS has for his rather large collection that has already been downsized several times). I've spent most of the afternoon reading 'The Automatic Millionaire'.

- Pay myself first from gross income to pension 12.5% - I can do this :j

- Pay extra to the mortgage and pay it off early - I am doing this :j

- Emergency Fund - I have this :j

- Save and Invest - I am planning on the maturing reg saver going partly to this :j

Now, I've left it too late to became an Automatic Millionaire by retirement, but I can better my position by quite some way and I'll give it my best shot . Is this another LBM?

AlexLK

Ali-OK wrote: »

I've spent most of the afternoon reading 'The Automatic Millionaire'.

- Pay myself first from gross income to pension 12.5% - I can do this :j

- Pay extra to the mortgage and pay it off early - I am doing this :j

- Emergency Fund - I have this :j

- Save and Invest - I am planning on the maturing reg saver going partly to this :j

Now, I've left it too late to became an Automatic Millionaire by retirement, but I can better my position by quite some way and I'll give it my best shot . Is this another LBM?

Whilst I think all that advice is sensible (apart from not understanding what the pension one meant), I'm not convinced it's enough to make anybody a self-made millionaire. However, I am quite interested to know how much it reckons for an emergency fund and where to invest?

Ali-OK

The book is as much about the principle of 'paying ourselves first' - ie. an hour a day at the gross amount. Idea being set it up automatically to deduct before you get what's left - just like many do into company pension schemes. Tricky for us SE people with irregular income, but if I work it back from a base amount, aiming for 10-15% of gross monthly amount, then deduct the 25% tax relief that will get added, I come to a figure to add to my pension each month.

I've plumped for 12.5% based on playing with pension pot and income calculators - nothing is a dead cert with the effects of inflation, interest rates, fund charges etc, but it's an indication of what I might get at retirement.

As for compounding to millionaire status, if I put £3k a year into a pension for my son from age 15 for 5 years then nothing more, the effect of compound interest could go over £1 million - a 10% return (yes, unlikely) would give a £1.6 million pot at age 65. Imagine a more modest 5% return with him adding say £100 a month from when he starts work and he'd still hit the mark as would someone in their 20s.

Bit harder at my age but never too late to save more. Positive action is better than no action

Emergency fund recommended is 3 months outgoings. Investing is about diversification to ride out the roller coasters of stock market etc. So a mix and there's a pyramid of what as a guide.

AlexLK

Ali-OK wrote: »

The book is as much about the principle of 'paying ourselves first' - ie. an hour a day at the gross amount. Idea being set it up automatically to deduct before you get what's left - just like many do into company pension schemes. Tricky for us SE people with irregular income, but if I work it back from a base amount, aiming for 10-15% of gross monthly amount, then deduct the 25% tax relief that will get added, I come to a figure to add to my pension each month.

Sorry, this has left me even more confused.

Ali-OK wrote: »

I've plumped for 12.5% based on playing with pension pot and income calculators - nothing is a dead cert with the effects of inflation, interest rates, fund charges etc, but it's an indication of what I might get at retirement.

As for compounding to millionaire status, if I put £3k a year into a pension for my son from age 15 for 5 years then nothing more, the effect of compound interest could go over £1 million - a 10% return (yes, unlikely) would give a £1.6 million pot at age 65. Imagine a more modest 5% return with him adding say £100 a month from when he starts work and he'd still hit the mark as would someone in their 20s.

Bit harder at my age but never too late to save more. Positive action is better than no action

As you know, personally I've no plans to set up a pension for myself. So whilst I don't understand, I have no need for an explanation.

I understand the effect of compound interest but I doubt many 20 year olds are going to be doing this! I also hadn't quite realised the £1,000,000+ figure was related to the pension.

Ali-OK wrote: »

Emergency fund recommended is 3 months outgoings. Investing is about diversification to ride out the roller coasters of stock market etc. So a mix and there's a pyramid of what as a guide.

Quite pleased to say I've got the 3 months outgoings without touching business capital now.

liltdiddylilt

Eager_Elephant wrote: »

I'm glad this has become the new pension thread and that we have Lilt with a guiding hand as DH and I are discussing pensions at the moment.


I may need advice with his as he has a company pension set up with an old employer that he does not pay into (but is obviously charged each month) and his new company have enrolled him in their one and we thought he should put the two together but when he rung them he was told he had to send his paperwork relating to his old and they would decide if it was worth it??


Not sure if this is correct or whether we need to see an IFA?

Hello EE!!

Friendly pensions guide on duty

Depending on the size of the old pension pot, it could be completely eroded by those charges, especially if it is with certain companies and is a rather old style pension set up. It is definitely worth trying to move it, and getting the figures sent out should be a quick and simple phone call for your DH to his old pension provider to ask for a transfer valuation.

If the new company are unwilling to transfer the pot into his new pension, ask if they have an IFA acting for them who would be able to speak to your DH briefly about the pro's and con's. Realistically, if they have an IFA working for them to cover their pension then the IFA will always say transfer the pot.

If he has been joined into a new auto-enrolment pension and it isn't with NEST, the likelihood is that an IFA was involved, but there were very strict guidelines about the new company pensions and he should have received a fair bit of paperwork telling him everything about the set-up of his new pension. So have a look through there; there may even be papers you can fill in to set the ball rolling on transferring in your old pension pot.

If there is anything else you want to ask/discuss, just pop me a PM and I am happy to jabber away and ask a colleague for clarification xx


Ali I am very impressed with that compounding ratio. I could realistically put that much away for Jelly at that age currently. I am building her a pot of £1500 a year for *stuff* I like that books thoughts even though some of it is based on generous ideas ah we could all be millionaires!! xx

Ali-OK

I realise a bit of delusion crept in with the millionaire stuff :rotfl: - the book is talking about assets in total too and retirement income from a combination of things - rental property, pension, investments, etc. I did however read an article online about if you put the max in a children's pension from when they were born until they were 18, based on a 6.4% growth after charges, that would give them an £800k pension pot...or something :rotfl:

What it did do was inspire me to the paying myself first concept.

Lilt had to laugh at the birthday money comment on your thread and glad you had a good meal out . Great idea to set Jelly up with a pension now

Monday again and a busy start to the working week. I've already paid part of my 'salary to self' to cover the mortgage capital payment going out on Wednesday - keeping my £5k buffer in tact and earning maximum interest for the month.

DIY peeps are starting to order items for the garden project phase II. A mini-digger is being hired and a skip. Very excited :j but also going to be quite an expense. Once done though, that's it. Dog proofed, dog friendly, lower back friendly and low maintenance.

Postal votes posted off and a birthday card. Feeling on top of things at the moment and health is holding up nicely enabling me to get things done rather than being laid up.

I've had to put DS's blazer through the wash tonight after a yoghurt tube splattering courtesy of his mate :eek:. Airing cupboard overnight to make sure it dries in time for the morning.

The usual financials:
- bank account checked
- freepostcodelottery checked
- Inbox Pounds - up at £10.53
- Another £3 from P!necone ready to move as well

And a NSD :j

Hope everyone's had a good start to the week

beanielou

All sounding good :j

Ali-OK

I should come back as a Lurcher Beanie, with the lurching in life from one extreme to the other. Feels good at the moment, now to keep up that momentum

New list needed

- Complete set up of work stuff on the Ultrabook, it's working well and lovely and lightweight. Though can see me needing stronger reading glasses..or a large magnifying glass in the not too distance future with the tablet sized screen :rotfl:

- Give YNAB another go. I didn't really get off the ground with it last July - combination of office move happening, business growing, health taking a nose dive, not ready to leave spreadsheet heaven :rotfl:

- Study sort out in prep for redecorating. Mate has kept their spare room carpet that's in perfect condition which is going to be relaid in my study (mine is currently lilac and threadbare :eek:). Desk is going to be repaired by DIYers and kept. May need some extra magnolia paint. So won't be an expensive redecoration. Filing needs going through, shredding alot and refiling.

- Order memory sticks - one for business accounts to go in Tax Year box file for 14/15 and a couple for storing past work on.

- Think about doing some car boot sales. Thinking being the operative word :rotfl:

AlexLK

As you know Maths is not my strongest subject but I was somewhat dubious.

You manage to get more done in one day than I do in a week. Mind, this evening my son and I got back home. Did I start the laundry? No. Or perhaps, I sorted out putting some things away in their proper places ... Erm, no. Or maybe I mowed the grass and filled the LR with diesel ready for work tomorrow? Of course not ... I played the piano.

Not really any wonder nothing happens on my house project.