Hope is not an Effective Financial Strategy

AlexLK

All looks really good.

shangaijimmy

Well a new month and a new financial year so it feels about right to move onto the next phase of this whole MFW, and then retirement planning. So i made a few decisions last night...

I'll be redirecting some savings money towards Mrs SJ pension. We've been nudging some money away each month towards longer term type savings (new kitchen when mortgage has gone and kids are a touch older), but this cash has also doubled up as emergency fund. We're doing well with that pot so can now start to redirect some of it. So £30 to pension.

Lots of reading last night and I've taken a plunge with am S&S Isa. Not too much to start with as it'll be a learning experience for me. but fits with the holistic approach to finances. Phase 1 was get mortgage under control and take pressure off financial commitments. Phase 2 was steady increase of my pension as monthly budget became ingrained, and then putting all pay increases towards pension. Phase 3 was savings plans for kids, and the potential for 9 consecutive years of University (and that's if they pick 3 yr degrees). So i suppose phase is becoming an increase of savings to increase out overall retirement portfolio.

We know that we won't be going any bigger with our house, so that will never increase and the hope is that we can release some money by downsizing in 20yrs. Where we need to be more organised is to actually have a retirement plan in place. In my head i'd like us to be retired from major jobs by 60 (so 21yrs for me and 23yrs for Mrs SJ), so i need to have some scenarios in planning. In terms of pensions Mrs SJ has paid in since she started full time at 19 (she's now 37), and I have paid in since I was full time at 22 (am now 39) (I also paid in from the age of 19 when i had a 30hr a week job whilst at University, so I have a small local authority pension to add into the mix). Overall i suspect we are in a good position, but i need to do some reading research and learning!

shangaijimmy

Oh and £1 TT this morning, plus an OP of £16.27. This was from some interest on 2 Tesco current accounts from the last 5 months. I can't believe i'd forgotten to transfer the interest in!

lippy1923

Another great report SJ. Sounds like you have been thinking deeply about different stages of life....... scary isn't it lol

try_harder

You do so amazingly well with your money jimmy ,you make every single penny count and always seem to have every single aspect of money spending covered and great attention to detail .Brilliant work ,keep it up and you will definitely feel the benefit in future years ,i wish i had done it years ago i would not have been in the mess i am now.

gallygirl

shangaijimmy wrote: »

Oh and £1 TT this morning, plus an OP of £16.27. This was from some interest on 2 Tesco current accounts from the last 5 months. I can't believe i'd forgotten to transfer the interest in!

I'm the same Jimmy - I transfer the interest out for all the accounts that need 'feeding' every month but I forget about Tesco as well .

Get those retirement spreadsheets set up

shangaijimmy

lippy1923 wrote: »

Another great report SJ. Sounds like you have been thinking deeply about different stages of life....... scary isn't it lol

Thanks Lippy. I think the scary bit is only if you aren't prepared, I've taken a lead from it all by seeing how my parents were well set for retirement. I then compare it to Mrs SJ's parents and i really do thank the financial lessons i was given growing up.

try_harder wrote: »

You do so amazingly well with your money jimmy ,you make every single penny count and always seem to have every single aspect of money spending covered and great attention to detail .Brilliant work ,keep it up and you will definitely feel the benefit in future years ,i wish i had done it years ago i would not have been in the mess i am now.

Tryharder i wouldn't say we do amazing, or at least i don't consider ourselves that way. Though as someone said a few posts ago having the opportunity to zoom out and see progress is a big motivator. Without my spreadsheet and this diary i shudder to think what our finances would look like now.

gallygirl wrote: »

I'm the same Jimmy - I transfer the interest out for all the accounts that need 'feeding' every month but I forget about Tesco as well .
Get those retirement spreadsheets set up

At times gally i think i have too many accounts to keep track and in busy work times start thinking i should reduce things...but then i forget and see £16.27 worth of interest for zero effort that i can OP :j
I have to confess though i am at a loss for starting a retirement spreadsheet. I suspect i'll need some help with a template to start me off that i can adapt accordingly. As i said i have some research and learning to do!!

57p TT today. Mrs SJ gets paid on Friday which will be a god send to us, given we've had to pay our £125 for my car and then yesterday one of Mrs SJ tyres exploded on her :eek: Plus we are both due dentist check ups

themadvix

Will be watching with interest SJ, as retirement planning is something DH and I should definitely be considering... even just to have an idea of when! Although we still have a move and decisions about children to make before anything can be set in stone.

Rubbish news about the cars... roll on Friday!

gallygirl

shangaijimmy wrote: »

I have to confess though i am at a loss for starting a retirement spreadsheet. I suspect i'll need some help with a template to start me off that i can adapt accordingly. As i said i have some research and learning to do!!

http://www.cfiresim.com/
Have a look at the above. The front page is a template - fill in some imaginary figures to see what it is doing. It will run your projected income and expenses against financial cycles and let you know your % chance of ending up in the gutter :rotfl:. Once you see the sort of variables you can start to think of your own figures - get them together of what you are expecting to get at what age. Then what you think you will need. How will you fund it - S&S ISA's? Private pensions etc? Have a little play

shangaijimmy

Gally you are a star! Mrs SJ can gladly have the big TV tonight now...I will be busy plotting!