Making savings before it's too late

lessonlearned

Great news on the win Kittie.....just reading your investment strategy with great interest. I'm currently investing for growth rather than drawing down income.

At the moment my modest pensions are just about enough but I can foresee a future when I will have to start drawing down and use some of that growth as income. It will all depend on the ravages of inflation.

As you know I am hoping to move soon and I will have to eat into some of my capital to fund the move. Problem is I doubt very much that I am going to be able to put it back out of my pension income. Trying not be nervous about that. Maybe once I'm settled I can look for a little job or maybe start a little micro business of some sort.

So I will definitely be watching my spending. I too will be reducing my spending on gifts. I do want to give something nice and thoughtful but I'm definitely not going to be too lavish from now on.

Re not being thanked.....it's tricky. I don't really know what to suggest. I think I too would probably go with just a token gift for youngsters but if it was an adult who was being ungrateful then I probably wouldn't bother buying them anything. An adult is old enough to know better.

My sister works in retail in a small market town. Yesterday the whole town was "out", shops tills, cash points, even the banks were having problems. She said it was actually rather frightening.

My dad always used to say "cash is king". I've come to realise he was right. I have a small safe and I always keep a couple of hundred in cash, plus my "real" jewellery. I think it is always advisable to have some liquidity.

Ps just edited to add, still need to do my month end figures, but I do know I spent too much on housekeeping. I must get my grocery bill down a bit. I don't waste food and hardly ever throw anything away but I think I could do better and reduce my spend a bit.

[Deleted User]

I am not getting an AnC order this week or next and doubt I will need to buy anything at all. I have lots of berries and new fresh cabbages and chard that I can start to pick this week. Last week I spent almost £40, easy to overspend and I will just have to make my hm organic cream/milk/vanilla ice cream last


Gilts are easy to calculate but you need to know that you pay more for them than some realise. There is what is called a coupon yield, could be 4.25%, that is the yield at the time of release when they cost £1. They quickly cost more eg mine cost me about £1.5 each. So what you have to do is a simple sum ie the number of gilts that your money buys x the coupon yield. That gives the yearly income. I needed about another 6k added to my pension to give me a comfortable steady income from which I could save. Every gilt has a life and mine are 38 years and 42 years, so that would make me 98 or 112, so you see the actual final (redemption ) yield of around 1-2% really does not concern me as I will be getting my steady calculated income and my heirs will still get a decent amount from my investment.



If I bought an annuity then all the money goes to the insurance company when I die. Bear in mind that these are fixed rates ie not inflation proofed. Inflation proofed gilts give a far lower income. A way around that is to buy more gilts through the years. I can cash in gilts at any time I like, they are pretty flexible


Everyone is at different stages of life with different circumstances. I need to be at the safe stage as there is no easy way now of increasing capital in my savings accounts, so capital needs to be safeguarded. House hunting has really opened my eyes and I will have to spend capital to get a decent home, one that I can enjoy for the rest of my days, our hard-earned life savings should be for me to make my life comfortable, to accomodate me and my hobbies and not simply preserved to pass on when I die


I have decided about birthday presents, I spend far more than each small family and I am the pensioner. The children and grandchildren will each get cash presents, not a lot, just enough to buy themselves some small present, a meal out, book, chocolates, mobile phone case, that sort of thing. The in law adults, 3 of them, will get a card and no gift. It will be subtle and they will hardly notice, I never knew if they liked their gifts anyway

Blackcatsreturns

Good plan about the gifts - I've used some cash back vouchers to buy Christmas gifts with a budgeted amount per person. I've also got a couple of items to re-gift too as they are nice things but not things that I need or want.
At first I was confused thinking that your strategy for gillts was your strategy for gifts!! I thought it was a very sophisticated strategy for buying presents.
That said I am an absolute novice at investing and I've been trying to learn more and feel just about ready to dip my toe in the water. I think that having had mortgages and debt for a long time I have enjoyed the security and comfort from having cash savings, particularly since I was widowed. I now want to take a rounded view on my retirement planning.

[Deleted User]

I didn`t realise you were widowed blackcats, come join us on the widows over 50s thread if you like. It`s very helpful and uplifting right now, some of us are wanting to move and getting courage, tips and info from each other. Making these decisions on your own is not at all easy

Blackcatsreturns

Thanks Kittie. Where is that thread? Would like to pop over there.
In the spirit of "making savings" I'm still trying to use store cupboard and fridge freezer ingredients for meals. So much food accumulated over time so I'm just buying fresh fruit and veg plus milk. Trying to keep grocery spends down to balance out a large spend on some new sunglasses. They were expensive but really great quality lenses that are an absolute joy to see through.

[Deleted User]

blackcats, go further down the forum list, the over 50s thread and in there is one starting with self help. Its such a helpful group and we welcome anyone who needs us, we are all in a similar situation

[Deleted User]

I bought more vac bags. I am going to have to think of these in a very different way because they are for moving prep. I cannot afford them from my monthly incomings, so have to draw a little from capital. Grit my teeth time but better now than me having a panic when the actual move takes place


Not seen a house yet but it will happen when the stars are ready

[Deleted User]

I have almost completely sorted and pre-packed my garage which is my workshop, took all week and another 2 days will do it. I will be able to just ask for the whole lot to be moved into whatever space I end up with. No messing with anything, most in numbered really useful boxes, which are now secured so they don`t accidentally open


I am making an inventory because all the good and expensive items are hidden from sight with paper linings. Just a few bigger items left, also expensive so I want to hide them from sight and group them. I have picked euro totes from big dug, they stack or nest. Yet more money but it looks as though the removers will not have to do any packing in the garage and no cardboard to buy, which is expensive anyway

More from capital and I am going to keep a running total but what price peace of mind. Tbh I don`t think there will be any more from capital. I know I am early but having moved 9 times in my lifetime, I am aware of the stress

moneyistooshorttomention

You had me counting there Kittie - ie moves in lifetime =

- 8 enforced moves as a child (don't think I've overlooked any....) in about 14 years
- Then about the same again as an adult.

No more moving - unless I win the lottery or the like = in which case there'd be another move.

16 moves (if I've counted aright) - though I hate moving with a passion.

I was explaining to a friend earlier today how come I regard everything in life as temporary.....probably not that surprising when there's been loads of moving and none of it was really by choice basically.

Yes it is stressful - and it literally made me ill every time when I was a child I'm told...until my mother cottoned-on I hate moving...and it stopped, as they'd realised I couldnt be moved again if they wanted me to stay healthy - until I got to adulthood and had my own moves happening...

Yep...it still often makes me ill when I move as an adult. I got ill when I moved into first bedsit. Second bedsit - I was okay (it was an improvement). First rented flat - that was okay. When I bought my first house I was ill for a while. When I moved here I was noticeably ill for probably a couple of years and it's still taking a while to get back to normal about 5 years later...

Don't know if moving has the same effect on you? But it is something to be aware of.

[Deleted User]

it kept me awake a couple of nights ago, I suddenly thought I needed new tyres, all 4 and that is a big wad of money. I was out returning a faulty item to argos and decided to bite the bullet, nipped to kwikfit and asked how much new tyres, and alignment would cost. He made a bit of time, was obviously busy, very nice man, came back and said that my tyres would be ok for a long time yet and to pop in every couple of months if I was worried. Awesome service, I went home smiling


I think in all I might have to take out £500 from my capital savings, it all went on pre-prepping for my move, the last buy was from bigdug yesterday, coloured storage totes. They look strong and will either stack or nest and will always be useful


So heyho, I must sit on my hands, except for food, which I don`t compromise on and have made an AnC order for some special things, hoping that will do for the month and luckily my allotment is starting in enough production to keep me fed


I am going to try hard and reduce cc this month from my current account, using capital right at the end of month, whatever is needed to get back to zero