£15,000 to 0

Silver_Queen

Homegrown0 wrote: »

I always begrudge pension contributions Silver - I'm 30 and it seems like a lifetime away and when I'm at such an expensive time in my life (mortgage, two kids etc) it seems like I could do with the money more right now! I've been paying into a pension on and off for the last 10 years but when I started my most recent job (2 years ago) it's the first time I've taken it seriously. My employer matches it up to 5% so i put in the 5% every month so 10% + tax relief goes in there.

Once the childcare noose is looser around my neck then maybe i'll increase it but i think it's definitely good to start thinking about these things sooner rather than later. Good for you

My thoughts are that my life is only going to get exponentially more expensive - mortgage, kids, etc, so it would be sensible for me to put the money in now when I can afford to, so that I can loosen up later down the line!

Kids are so expensive but I hear they're worth it

Silver_Queen

DrSpendLittle wrote: »

Homegrown also makes a really good point about pension contributions and the tax relief. You pay less tax as its based on your net income after pension deductions, so effectively, you're putting more aside. Martin Lewis wrote a good article on it - I think this is it. This other one by the money advice service is also really good as you can calculate your target retirement income based on your current income and intended lifestyle and then calculate how much you need to put aside.

Sorry for pension spam! I just feel strongly about people paying into pensions as soon as they can afford to because the longer you leave it, the less the interests compounds and the less choice you'll have at aged 60. You don't want to be eating cold baked beans and living off your £9K per year state pension

Agreed

My parents have no pensions so they'll be living off the £9k state pension and whatever we children can afford to throw their way :eek:

Silver_Queen

DrSpendLittle wrote: »

p.s. I love the idea of EF being a f*ck off fund!

The whole premise of the article was that if you had an EF, you could afford to tell an employer or a partner to f!ck off if necessary and be fine on your own two feet - not be tethered to anything that isn't good for you. I love the idea

Homegrown0

haha yes, i think my spending priorities have changed for sure since I had the kids! Expensive and frustrating but worth it, for sure.

I took a 1 year hiatus from paying pension contributions while on mat leave to make life a bit easier. I only qualified for maternity allowance so was on a pittance.

Silver_Queen

Homegrown0 wrote: »

haha yes, i think my spending priorities have changed for sure since I had the kids! Expensive and frustrating but worth it, for sure.

I took a 1 year hiatus from paying pension contributions while on mat leave to make life a bit easier. I only qualified for maternity allowance so was on a pittance.

Sounds like things were really tight! I don't think anyone can begrudge you taking a hiatus in those circumstances. I hate seeing the pension deduction coming out from my monthly salary too, but I keep telling myself to consider it an extra tax to make sure I'm comfortable in the future. My goal is to be a fabulous pensioner who sips cocktails on yachts and travels the world in style...:rotfl:

Homegrown0

That is exactly my goal too!

My grandparents spent their whole retirement travelling until they were in their mid-70s and their health became a bit to tricky to facilitate travel. They were all over the place - Fiji, NZ, South Africa, Canada... that's exactly how I'd like to spend my retirement

Also, top tip! DON'T look at the pension contributions, or the tax or NI or any other deductions! I can't bear to look at the difference so i check the bottom line and as long as it's what I'm expecting i'll live happily in ignorance!

Silver_Queen

I try not to, homegrown! I have a lot of friends abroad and we're all very open and frank with each other about our finances. It absolutely kills me the low level of deductions and the affordability of property they have! Can't complain though, I pay it happily (or try to) knowing that it helps fund our amazing NHS and benefits system. Went to Norway not long ago where taxes are even higher and it really struck me how much better everything is there. More expensive, yes, but more equal, everything is cleaner and upkeep of everything is excellent.

Silver_Queen

I've been trying to reduce my consumption in general and a big part of it has been to use up my toiletries, make up etc instead of hoarding it. It's my weakness. I've been doing this for the last 8/9 months and am starting to actually run out of things. I'm posting this to try to keep myself accountable, so I don't go out and buy more, but it's definitely still a struggle. Ive been rejigging my skincare routine to try to make sure that I use up the stuff I still have rather than feeling the need to replace what I've run out of.

Do any beauty product inclined people on here have any ideas what to do with rosehip seed oil once it's started to turn slightly? I bought a 30ml bottle and used about 2ml of it, it's now developed a slightly fishy smell that I can't stand. Part of me says to just throw it away but part of me doesn't want to waste it...

Homegrown0

Ita an interesting point you make about contributions abroad - i spend a bit of time in Scandinavia and contributions there are approx 40% and the cost of living is so expensive (e.g. my house would be 3x the price there and my car more than double). Of course wages are higher but it's interesting because my colleague there has 3 kids in full time nursery there and paid £300pm whereas I had 2 in full time and paid £1500pm so it's swings and roundabouts. They drive to Germany to buy a new car because it's cheaper than getting it locally etc.

Even things between Scotland and England are cheaper- my 4 bed detached house in a nice area is worth £200k whereas in the south west of England you'd get a small apartment for that money. Tuition fees for university and prescriptions are free too and that's the differences between two countries on the same island.

Silver_Queen

Homegrown0 wrote: »

Ita an interesting point you make about contributions abroad - i spend a bit of time in Scandinavia and contributions there are approx 40% and the cost of living is so expensive (e.g. my house would be 3x the price there and my car more than double). Of course wages are higher but it's interesting because my colleague there has 3 kids in full time nursery there and paid £300pm whereas I had 2 in full time and paid £1500pm so it's swings and roundabouts. They drive to Germany to buy a new car because it's cheaper than getting it locally etc.

Even things between Scotland and England are cheaper- my 4 bed detached house in a nice area is worth £200k whereas in the south west of England you'd get a small apartment for that money. Tuition fees for university and prescriptions are free too and that's the differences between two countries on the same island.

I try not to be London-centric but as a self-absorbed young lady living in London, it does happen :rotfl: £200k would get me a studio flat here!

I'm extremely bitter about the tuition fees and prescriptions - my tuition fee loan is ticking over £50k now :rotfl:

The thing that stuck out to me about norway was the cost of groceries. Even a bag of crisps that would cost £1 here was priced at £7ish there! :eek: