where do people get the money?

melanzana

Evening all.

I got a badge, yippee!! It is because... "I saved enough dough to retire early and put my feet up!"

Yep, I did it at age 56. But I saved hard for five years prior to achieve my goal. I budgeted really hard, but still enjoyed life. I can tell you, when I was on my early retirement mission, I truly realised how much I was spending on total rubbish... just because I could.

I learnt an invaluable lesson there, and am more content in myself as a result. For me it is now need, not want.

Even though my take home pay is greatly reduced now, I am managing fine to my amazement! I was a bit concerned before I left, but it's no problem.

I don't have commuting, work clothes, lunches, after work dos, etc. to pay for anymore. So that obviously was costing me a fortune!

Although I don't need to save much anymore, I kept my pre retirement savings account, and still put a decent amount in there every month.

That is my Happy Fund. So if I want to go on a Ryanair flight to somewhere nice, I dip in there, and use it for birthdays, pressies, nights out etc. If I am short some month I dip in there too. I do NOT deny myself at this stage!

The moral of my tale is if you get into good habits regarding saving spare dosh, it stays with you forever.

And I do realise that compared with many, I am very fortunate. I am so thankful for this, and do NOT take it for granted either.

Best of luck to all.

Love the thread.

Eyeore

Wow Melanzana that is a fab achievement, many congratulations! I would love to do the same, any top tips?

melanzana

Eyeore wrote: »

Wow Melanzana that is a fab achievement, many congratulations! I would love to do the same, any top tips?

Thank you Eyeore.

Top tips.... Plan ahead. Decide what your goals are. My main one was to pay off the mortgage and any debts so I could retire debt free. Did that over a five year period of hard slog.

But TBH it wasn't too bad really. I just cut out all the rubbish spending. Cut down on hols abroad, didn't change the car, that kind of thing. It's different for everyone. But I did have to DISCIPLINE myself! When friends were heading off for a girly weekend etc. I declined. Sometimes...... :rotfl: Then I Put the money in the retirement account instead!

I don't have kids either, so that made it easier I suppose.

In the last year before early retirement, I went down to three weeks on and one week off. That reduced my income considerably, but by the time I actually left, the pension amount didn't seem so small, and it got me used to living on a lower income.

I was lucky that my job had a package for over 55s, the pension is reduced of course actuarially, but heck, I figure it's better to have a smaller pension for LONGER (hopefully)!

In the end I figured I'd just need enough, not loads. And its great.

Best of luck.

bigmaz

melanzana wrote: »

Thank you Eyeore.

Top tips.... Plan ahead. Decide what your goals are. My main one was to pay off the mortgage and any debts so I could retire debt free. Did that over a five year period of hard slog.

But TBH it wasn't too bad really. I just cut out all the rubbish spending. Cut down on hols abroad, didn't change the car, that kind of thing. It's different for everyone. But I did have to DISCIPLINE myself! When friends were heading off for a girly weekend etc. I declined. Sometimes...... :rotfl: Then I Put the money in the retirement account instead!

I don't have kids either, so that made it easier I suppose.

In the last year before early retirement, I went down to three weeks on and one week off. That reduced my income considerably, but by the time I actually left, the pension amount didn't seem so small, and it got me used to living on a lower income.

I was lucky that my job had a package for over 55s, the pension is reduced of course actuarially, but heck, I figure it's better to have a smaller pension for LONGER (hopefully)!

In the end I figured I'd just need enough, not loads. And its great.

Best of luck.

An amazing story well done. Enjoy your retirement, you deserve it.

When did you buy your property? Just wondering if you could achieve the same if you were starting now with the house prices now?

Caterina

Many congratulations, Melanzana, enjoy your well deserved retirement!

lessonlearned

Congratulations Melanzana I hope you have a long and happy reirement.

I think you and several others have hit the nail on the head. It's all about prioritising how you spend.

I could spend for England but I don't often fritter it away. I live simply but well. I do keep a spending diary simply because I like to know where the money goes. I can treat myself to whatever I want within reason but that is because I do monitor my spending and don't let money slip through my fingers. I treat my money like I was running a business, always mindful of cash flow.

I wasn't always so saintly - I had to learn the hard way.:rotfl:

I had an aunt who was by no means rich but she did like the finer things in life. She was an excellent cook and could make a gourmet meal out of very little. She loved clothes and was always beautifully dressed, she always bought good quality brands but always in the sales.

Her biggest expense was exotic holidays and travel adventures. Once she retired she travelled extensively, she must have circled the globe several times.

She achieved all this by frugal living, canny shopping and cooking from scratch - her idea of convenience food was an omelette. Her favourite saying was if you have eggs in the house then you can make a meal. She didn't smoke, enjoyed a little tipple, loved the cinema and theatre so she looked out for deals.

Her mantra was "you need to make one penny do the work of two"

Having been widowed in the war and left to bring up three small children she knew how to make money work.

Big Maz - start with a spending diary and you will soon see how you can stop the leaks. £750 a month disposable income managed properly should enable you to live like kings.

If you get the absent minded spending under control you will have plenty of money for treats.

Eyeore

finally found the thread, couldn't remember what it was called! Honestly!

Thank you for explaining Melanzana, food for thought! My next break is at Christmas so I will sit down then and plan I think.

Happy retirement!

bigmaz

lessonlearned wrote: »

Congratulations Melanzana I hope you have a long and happy reirement.

I think you and several others have hit the nail on the head. It's all about prioritising how you spend.

I could spend for England but I don't often fritter it away. I live simply but well. I do keep a spending diary simply because I like to know where the money goes. I can treat myself to whatever I want within reason but that is because I do monitor my spending and don't let money slip through my fingers. I treat my money like I was running a business, always mindful of cash flow.

I wasn't always so saintly - I had to learn the hard way.:rotfl:

I had an aunt who was by no means rich but she did like the finer things in life. She was an excellent cook and could make a gourmet meal out of very little. She loved clothes and was always beautifully dressed, she always bought good quality brands but always in the sales.

Her biggest expense was exotic holidays and travel adventures. Once she retired she travelled extensively, she must have circled the globe several times.

She achieved all this by frugal living, canny shopping and cooking from scratch - her idea of convenience food was an omelette. Her favourite saying was if you have eggs in the house then you can make a meal. She didn't smoke, enjoyed a little tipple, loved the cinema and theatre so she looked out for deals.

Her mantra was "you need to make one penny do the work of two"

Having been widowed in the war and left to bring up three small children she knew how to make money work.

Big Maz - start with a spending diary and you will soon see how you can stop the leaks. £750 a month disposable income managed properly should enable you to live like kings.

If you get the absent minded spending under control you will have plenty of money for treats.

Thanks for the tips

I have actually got a contract position again, and our income will be going up to where it was before, so will have a lot more disposable income again. Even then we spent a ridiculous amount and nothing to show for it. We are really going to try and be sensible and get some money behind us this time, but still enjoy it.

lessonlearned

My late husband used to be a contractor. We used to joke that it was feast or famine.....

The trick of course is to salt a bit away in the good times so you don't panic when faced with gaps between contracts. Like anything else, good budgeting comes with practice.

You've done well to spot the weak areas before any real damage was done. With your new found wisdom and resolve you'll be fine. .

Why do you think my nom de plume is Lessonlearned.....;)

RAS

bigmaz

I remember one poster who could not understand where the brass went going through his bank statements, which read "Cash withdrawal £10" almost every day; £300 down the tube before he did anything else.

One piece of advice from my days trying to save for a deposit when house prices went crazy.

If you leave money in the main account, it is easy to spend it. For the future open a savings type account and start putting 1/12th of the sum you want to spend on annual events like Christmas, birthdays and holidays in there.

Then, set up a standing order to transfer £100 a month into another savings account which you do not touch.

Make sure this money goes out immediately after your salary goes into the account. That is what makes it work.

See how you go and adjust the sum up or down as you see fit. If it has gone, you will not be tempted to spend it and as long as you ring-fence this you can build up a healthy surplus.

That becomes your buffer in case of contract loss, ill-health etc.