Project Mortgage Neutral Begins

Lomcevak

ajmoney said:

Premium bonds, what are your thoughts and do you count them towards your cash assets if you have them?  I don't have many at the moment but I am wondering about getting more. 

I don't have any, although i'm considering it if instant access rates fall further. Their tax-free status is useful if you're a higher-rate taxpayer and are already near or over the savings allowance, but the variance is horrible for relatively small amounts - you'll win nothing almost all the time. They make more sense if you can put a large amount in, at which point you can expect small wins quite regularly and the return should tend toward the (reasonably attractive, in current times) tax-free rate. 

If I had them, i'd definitely count them as cash assets - they're easy to get rid of if you need to.

ajmoney

New calculations this morning as I don't have much to do money wise and our area keeps getting power cuts.

It turns out I am saving 38% of my wage each month, this doesn't include the savings pots for annual spends but does include money to all my savings accounts, holiday spend fund and mortgage OPs (I figure long term I am saving on the interest and could use it for a payment holiday if required).

I have also calculated the rough amount I think I would need for FIRE and where I am on a scale towards it, it is a very small amount currently at 7% and represents 2 years of my current annual spends so in reality I guess it would be more than this as I would have paid the mortgage off by then.  I have no idea how I work out how long it would take to save this figure but I guess when the mortgage has been paid off it will start to rise dramatically as I will be able to save that money a month.

ajmoney

Will power could be a problem today, there is a sports watch I have wanted for a while and there is a very good offer on it at the moment.  I haven't even been looking online for anything to buy but someone shared the advert on fb.  I am going to try and wait until the end of the month, if it is still on offer and I have the money leftover in my account I will go for it, if not I will wait.  There is nothing essentially wrong with the watch I currently use and my swim one but it would be good to have one that does everything and would be quite a good motivator for me, plus I would like to do some heart rate training and don't have a heart rate monitor compatible watch.  I am also more in need of a waterproof jacket that is actually waterproof.  I have reproofed mine a couple of times but I think it is just giving up now.  I think maybe another list is in order of all the things I would like to buy and then look at which I actually need.

Lomcevak

Which one is it? I got a Garmin 735XT (which does run, swim, and heart rate) when I started triathlon, and it's been great, really useful to have all the information in one place. 

ajmoney

Lomcevak said:

Which one is it? I got a Garmin 735XT (which does run, swim, and heart rate) when I started triathlon, and it's been great, really useful to have all the information in one place. 

It is the same one and is down to £199 on a few sites at the moment.  I am glad I am going for a walk with a friend from the triathlon club this afternoon to stop me looking online any more at it.

savingholmes

Good luck whatever you decided. They reckon you need 25-33 times your annual expenses to be truly financially independent. Could you work out that figure and then use it to work  how long it would take you to get there?

Lomcevak

ajmoney said:

It is the same one and is down to £199 on a few sites at the moment.  I am glad I am going for a walk with a friend from the triathlon club this afternoon to stop me looking online any more at it.

I'm probably not helping, but i'd recommend it - it's easy for the basics, but also has a lot of information if you're doing any sort of structured training (e.g. I use training effect, recovery time, condition, and VO2 Max a lot), and stride length and balance is really useful if you are working on running.

ajmoney

savingholmes said:

Good luck whatever you decided. They reckon you need 25-33 times your annual expenses to be truly financially independent. Could you work out that figure and then use it to work  how long it would take you to get there?

I have based it on 25 times my current annual expenses as a starting point.  I am just not entirely sure on the calculations, I guess work out how long it will take on my current savings schedule but I don't know how to work this out with my S&S ISA.  In this low interest rate time I guess if I work on no interest to my savings it could balance out the turbulent market.  I will go and do my sums.

ajmoney

Lomcevak said:

ajmoney said:

It is the same one and is down to £199 on a few sites at the moment.  I am glad I am going for a walk with a friend from the triathlon club this afternoon to stop me looking online any more at it.

I'm probably not helping, but i'd recommend it - it's easy for the basics, but also has a lot of information if you're doing any sort of structured training (e.g. I use training effect, recovery time, condition, and VO2 Max a lot), and stride length and balance is really useful if you are working on running.

You are correct, you are not helping! Most people in the tri club have one and what also is not helping is that again my phone and watch have refused to sync.

We had a lovely walk along the coastal path this afternoon.  We had planned to meet in a local park but had both parked elsewhere seeing how busy it was, luckily the paths were really quiet. 

Off to work out my FIRE calculations, meal plan and do a shopping list for tomorrow to stop me looking at watches.  My last meal plan and shop was on Wednesday, I am wondering if I can be organised enough to do my shopping to last me until next Sunday/Monday although I expect to need to top up with fruit and veg as I prefer it fresh.

ajmoney

I don't like the answer I get from the calculations, it is far too close to actual retirement age I guess I need to find ways for my money to work harder and save more.