FI Wannabe

Kahra

Also, Happy New Year everybody! :j_party__party__party_:j

I had a very personally exciting 2016. It was my first full year of full-time employment. Ever. I started my current position in Feb, and am really enjoying it (something I never thought I'd say about a job:p). It made financial independence seem so much more viable, as we've significantly increased our income, but also made FI seem less vital, as I can see the two of us staying at our jobs for many years. Still, you never know what the future will bring, and I'm a girl who likes options!

We travelled home to see family for Christmas, and they kept us well fed and watered. I really miss being close to family, and am glad we can travel to see them so frequently, even if the trips are expensive. I think we'll only make it back once in 2017, sadly.

Total December Spends: £1507
Total December % Saved: 54%

I've definitely improved as the year went on! Our overall savings rate this year is 42%, since I spent like a sailor when I first got my job. Still, I'm pretty sure that's higher than ever before, and I'm determined to push it above 50% in 2017 :beer:

Kahra

Bit of a mixed bag today on the frugal front:
- Found some boots in the sales (£30), and threw my old ones (which are more hole than sole) in the bin
- Went to a nearby market and got a bag full of produce for £2! I'll be going back regularly!
- Found out that an Aldi is opening nearby in Feb, so that'll be a big help
- OH is going on a work trip and had to buy some things to travel - I'm guessing about £25, plus £40 that can be claimed back
- Need to replace some electronics that died - new running headphones and computer mouse. £??
- Making flapjacks, hummus, and apple crumble today
- Day 2 of no fizzy drinks and I'm doing really well
- Cancelled gym membership, but we have to pay until end of Feb

Spendy day, but mostly replacing things that have worn out. Doing lots of cooking while I'm still off work!

edinburgher

Impressive savings rate for the year

I've found the Am@zon basics mouse at £5.19 to be very good quality, if that's a website that you use?

NorthernMonkey1

I use this one, as it's the same as the one I have at work

http://www.ebay.co.uk/itm/DELL-MS116-USB-Black-Optical-Scroll-Mouse-1000dpi-Brand-NEW-/142186208934?hash=item211af55ea6:g:73EAAOSwLnBX7oHN

NorthernMonkey1

When you say you've saved £1500 this month, are you including pension contributions, or are you saving £1500 post-tax? If the latter, that's a huge amount

Tjh1412

really interesting posts, I'm also interested in FI but were using £2500 for one days expenses so taking a bit longer. Will follow

edinburgher

NorthernMonkey1 wrote: »

When you say you've saved £1500 this month, are you including pension contributions, or are you saving £1500 post-tax? If the latter, that's a huge amount

I was assuming with pension contributions, or OP earns a fortune

Kahra

Ed and NorthernMonkey: thanks for the mouse recommendations! I got some Am@z0n e-gift cards for Christmas, so I'll probably go with the basics one you mentioned, Ed - my current mouse has a malfunctioning scroll button which I've put up with for several months now.

The £1500 is after tax, no pension contributions, but that's for a dual-earning couple with no kids. Also, OH's work pays for a good portion of our housing, so that saves us a bunch despite living in the SE. I've signed up for the 'Save £12k in 2017' challenge, and there are folks over there who put our savings to absolute shame! Still, I'm relatively new to working a full time, permanent position, and it feels like (and is) an absolute deluge of income.

Tjh: Welcome, fellow FI aficionado! I love that you calculated the cost of a 'forever day', too Our actual cost is probably quite close to yours, because of the cheap housing mentioned above - if I factored in a more realistic rent or mortgage amount, it'd increase quite a bit.

Kahra

I've been investing on autopilot for the past year, with some adventurous yet nonstrategic forays into P2P. I'd like to have this a little more organized this year, so here are some things I need to get in order:

- Fill in my NI contributions. I have a couple of years where I was not making enough to reach the qualifying amount for the state pension. However, I can buy back that time. It seems like a good idea for me to do, since I moved here as an adult and will likely not hit the 35 qualifying working years.
- Sign up for a 5% regular saver (or two!). I'd like to get the switch as well, which will involve me opening a bank account of my own (only have a joint account). Lots of paperwork on this one! The Fir$tDirct regular saver allows £300 pm, and then when it matures I'll just roll it over to my S&S ISA.
- Look into the new Lifetime ISA. So far, I haven't contributed to a SIPP, because I don't want to have to wait until 55 (under current rules) to access that money. The tax relief would be nice, but neither of us are HR taxpayers. However, the Lifetime ISA can be used for a first-time house purchase OR retirement savings (at 60). Tempting. Not sure how many providers will be offering one in April, though.

I keep forgetting about the first two, so I'll need to get on that paperwork and find the money.

edinburgher

I would be skeptical of trusting the LISA, but being wary of pensions. Remember that parliament is omnicompetent re. legislation (i.e. they can move whatever goalposts, whenever!)