Hope is not an Effective Financial Strategy

SuperSecretSquirrel

shangaijimmy wrote: »

I know all the cliches about future self thanking me, and i fully know and appreciate the positive strides we're making but... its SO SLOW...and I'm not used to it! And its slowed down mortgage progress as well!

I know exactly where you're coming from SJ! In the pre-house days I would set cash savings targets (realistic target plus a little extra on top to make it a challenge) - I knew my income, approximate outgoings, interest rates, and could track progress monthly. When we had a mortgage, it was pretty much the same, dealing with known quantities, being able to forecast, set targets, etc. In both those eras we enjoyed a steady march towards the target (and often past it)...

Post-mortgage is a totally different story. Debt cleared and cash savings pretty static, and a good wodge shoved into pensions and S&S ISA each month. I can set targets for payments in, but in normal circumstances thanks to salary sacrifice and standing orders that's not really a target, more a fact. It's impossible to set a realistic net worth target, know if you're on track, or affect change in any truly meaningful way. It becomes fire and forget. You can check in on things periodically (I still check and make notes each month) but I tend to feel like driftwood at the mercy of the ebb and flow of the markets. My job is to pay in X amount each month like clockwork, maybe do some monitoring, and promise myself not to get spooked too easily, the rest is out of my hands.

In my current situation (work and family life) that's not such a bad thing... Sure, you can do everything right one month and your reward is a five figure monthly net worth loss. Another month you might do everything wrong and get a boost to net worth. The key for me is to reassure myself that we're doing all the right things, the general direction of travel is good, and to always see the glass as half full (market up = profit = winning / market down = buying cheap = winning). Avoid pessimism at all costs!

Having no low level control of our net worth has helped me avoid micromanaging our finances. I can spend my time thinking about and doing other things, knowing everything is ticking over an autopilot. I feel like I've somewhat lost a hobby, but that's just freed up some space for a new interest A high level year on year view of progress is still quite satisfying (ask me again after I handle my first negative yoy figure!). At the time you can't see the wood for the trees, and progress can feel glacial (or at times in reverse gear!) - but the year on year figures can be quite amazing :cool:

Stick to the plan, you're doing all the right things. The lack of immediate gratification is probably some kind of cosmic hint - chasing immediate gratification very rarely sets you on the best course for anything in life!

shangaijimmy

Thank you SSSquirrel... some nice observations to ponder on over the next few weeks as I formulate plans for the 2020. Your point about losing a hobby has really hit home with me. I'd never previously considered the whole money thing as a hobby. It was always just what I did, in the same way that Mrs SJ does all the cooking (that really is her hobby by the way), but I now realise that it has certainly developed into a hobby...a secondary lightbulb moment there! I have a few thoughts for next year that I'm currently musing on that will hopefully help for the investment/retirement progress as I need to track some things to keep motivated. I'll pop these thoughts on here later so that people can add their observations and experiences.

Well I can't quite believe it has been a week since I posted, and logged on. Its been a hectic week as it was my last one in work before Christmas, and I then had 2 conferences to attend which stole 2 office days off me. These days also involved leaving the house at 7am and getting home at 8.15pm, and then 2 days later leaving at 5.40am and getting home at 8.45pm! I have a delay repay claim gone in for one train journey, so will throw the £12.50 as an OP. Incidentally on both days I literally walked in and then straight out again for a 30min dog walk! But all is done and I am now finished until 6th January :j

Other than a couple of small bits for DS's (amazon should take care of these as well) we are all done for Christmas. Majority is wrapped too, which is incredible for us. Incredibly we are about £150 under budget, and that includes 2 birthdays as well. We've had a rotten time with family illnesses thatshas really taken its toll on Mrs SJ, but things are starting to improve so I think we'll use some of the cash for an evening out.

TT's were only small for this week, but I OP'd the weekly pot of £1.83 this morning.

shangaijimmy

Oh, we very nearly had a £212 bill to repair a smashed tail light so that Mrs SJ car could pass MOT. Fortunately the mechanic just through some masking tape across the hole and it passed! Lucky escape, and I'm thinking of donating £10 to mortgage as a thank you!

Karmacat

That kind of stuff adds up, doesn't it! Very ingenious.

Suffolk_lass

I like that sort of thing too. We have just bought two small aluminium panels to stick on the roof of the motorhome to cover the holes the previous owner may have created by driving under some low-hanging trees and rippind something off :eek: - under £20 vs several hundred. Result!

shangaijimmy

I like the sound of that Suffolk. I deliberated for a few minutes and as expected I've mad a £10 OP for the expensive car bill we nearly had!

Well the last bits for the DS's have been bought and wrapped. So we are all set present wise, just the big food shop left to do now. DS2 and DD are phenomenally excited, it must be exhausting for them! DS1 is playing it cool for now and is more excited about finishing school on Friday...!

£1 TT and 53p TT for the last 2 days so chipping away bit by bit.

shangaijimmy

Very little to report. Our new front door is currently being fitted much to the disgruntlement of pooch with all the banging.

We do have some money coming back to us through Mrs SJ's work for some physical treatments she'd had. Basically she pays £2 a month to a charity attached to work, and then gets £250 a year towards alternative treatments that may keep her in work rather than going off sick. Now she pays to the charity regardless, and we'd always pay for the treatments regardless, so I'm going to OP the cash as a Christmas present to me as a reward for managing our finances or the year! It should be approx £95 and we'll get it either today, tomorrow or Monday.

I have worked out our plans and targets for 2020, which I'm hoping will help for motivation now we have split focus between mortgage and retirement. In true New Year fashion though I will reveal this on New Years Day! One of these plans involves a family declutter quest...I just need to 'sell' this to the clan. I'm thinking that the DS's only get their pocket money if they've decluttered 3 things that week! Mrs SJ is a bit of a hoarder and she gets it from her dad. DS1 seems to be having the same tendencies. I on the other hand am very much a minimalist!

Avid readers may recall my running challenge. Well it was going great guns in March until I twisted my ankle, then on returning I tore my calf (too many miles too soon, without sufficient recovery for a 40+ yr old), then on returning again I pulled the same calf (lessons not learned...). Anyway I'm back to it with a disciplined approach. I'm still a little tentative, and running loops of a small route where I'm never more than 1 mile from home in case it goes again, as I don't fancy an hours limp home in the wind and rain! Keeping my pace quite slow (perhaps more appropriate to call it a trot/plod rather than a run!) and I'm not running 2 consecutive days. I have no mile challenge in mind anymore to keep me sensible!!

Right a short dog walk beckons which may make him forget that we have builders in HIS house!

lippy1923

Good going SJ. Will wait eagerly for your new year goals.
I'm with you on the declutter. I'm the only person in my house who is also very much a minimalist. I hate clutter but other half is a hoarder lol.

Karmacat

Sounds good, Jimmy - but how much longer are the builders going to be? Its all getting down to the wire a bit Hope the dog enjoys the walk - you too

shangaijimmy

A few lovely Christmas presents for me. First one involved mauling with the dishwasher last night whilst splashing in the water that had leaked out. After 2 hours of doing I think I've sorted it and it was fine for 2 short cycles last night...time will tell. Whilst doing I found my 2nd early present when I spotted that the kitchen sink was leaking... Basically the drain unit washers have perished so at 8.30pm last night I was dismantling ready to go and get one and fit it after school run.

Onto this morning and my payslip has arrived which includes my payrise...now that is my proper Christmas present as it means spreadsheet adjustments! Now I'd just done that in November for Mrs SJ's payrise so very little was needed other than allocating my new little soldiers to a new task... I'll keep the extra cash in our current account for Christmas spendies (possibly a new dishwasher?) and then from January I've been bold and allocated 72% of it to my 'retirement drawdown delay' S&S Isa. Lets be honest Mrs SJ would only evaporate it in Home Bargains!!

By the way the front door is fantastic. Makes a huge difference to the light we now get coming into the hall.