£50k to zero - made it across the finish line

BabyStepper

Hi there :hello:

I just finished reading your diary and wanted to say I'm very impressed with the remarkable progress you have made. Your perseverance in inspiring. I'm now geared up for the next phase of my own debt busting. Thanks! I've subscribed and will be following along.

One-step-at-a-time

Thank you BabyStepper! I'm just trying to make up for all the years I was lame with money. Never looking back!

My mind keeps drifting to the future, and the lack of long-term savings has really been doing my head in. Other than the EF/annual bills account, a teeny amount in an instant access saver, and my piddly £25 Premium Bonds, our only real asset is our house (the remaining mortgage is less than 9% of the value, so that's something at least). Both of us only have state pensions and DH's is deficient to the tune of several years that we can't make up for, so we really need to get our cr4p together while we still have time (late 40s now)

As an interim thing I've decided to divert 10% of what I've been paying to the almost-gone debt to an ISA. I've opened one with £50/month, going via TCB which has the added bonus of netting me £125 cashback after three months. As our situation improves I will bump this up; it won't be much of a safety net for a good few years, but beats a kick in the teeth!

One-step-at-a-time

Wooh my final eb4yer of the week paid up, item is already packed and ready to post.

Tonight's tasks include dining on a frog, and dipping my toes into FB marketplace. The frog is one that I started last night, so I hope he'll be fairly easy to digest.

Despite knowing that this year is going to be no less of a juggling act than the one that's just gone, I am feeling really, really positive at the moment, and I think a lot of that is down to trying to make a little bit of progress every day.

Drawingaline

Glad you got some advice about the work. Sometimes just general advice on length of job, what stages might need to be done can be a huge help.

I too am worried about our long term savings. We have small amounts in pensions, husband is paying into his, but I am self employed now and really need to get my three tiny pensions put in one and set up a private one. But it all seems really complicated, don't really know where to go for the best advice. Should maybe ask on the pension boards on here, but feel a little embarrassed about my lack of both knowledge and pension at my age (early 40's)

One-step-at-a-time

Drawingaline wrote: »

Should maybe ask on the pension boards on here, but feel a little embarrassed about my lack of both knowledge and pension at my age (early 40's)

I confess the pension boards scare me a lot more than the DFW one does. I've dipped in to have a look a few times, but haven't posted because I feel like with the huge black hole where my pension planning should have been for the last 25 years I'd be consigned to the naughty step immediately!

I thoroughly demolished tonight's frog, even though it did take me until 1am to digest. There *may* have been a spot of procrastinatory baking :rotfl:
I'm all clear to concentrate on FB marketplace tomorrow, that's if I'm not too zombified from the lack of quality sleep I'll be getting tonight!

BabyStepper

What isa is paying £125? Might need to get one too.

I'm also trying to figure out how to combine previous small pensions with a new private one as gone self-employed. I don't have the new one yet, wonder what the minimum amount to put in is? Dave Ramsey says 15% of your income, I'm thinking a fiver to start with. It'd feel good to have one, even just to have the old smaller ones all in one place. Pensions are scary.

One-step-at-a-time

It's Scottish Friendly through TCB. Several tiers of cashback on there, I decided on the lowest entry point for earning £125. It registered on TCB within the hour but will take ages to be redeemed.

I am seriously thinking about joining the work pension scheme as soon as I can make the numbers work (I think they do the 50/50 thing here so may be able to start on that basis). Kicking myself that I never gave it priority, but I still have time to claw something back. Lots more research needed on this!!

Drawingaline

The pension advisory service is the non biased website I think. Part of the money advisory service.

Sorting its on my list, just got to sit down and do it. I actually looked all mine out and logged on so I can actually see the pittance I have saved.

redofromstart

I vaguely know about pensions, so first thing is join your work one if you can. If it's a 5/5 matched contribution then this is free money in the pot. As a minimum they have to put a few percent in if you put 3 in, although that increases to 5 in April. Plus you get tax relief on your bit which helps too.

If you are self employed then you can make direct debit payments, I started doing this recently, before I took the big business project on. You get the tax relief - so £100 direct debit is topped up to £120 by the government - but no employer contribution.

I have a couple of 'final salary' pots, and those I leave alone. However tempting it is to tidy them up to a single pot the bulk of the risk of losses is with my former employer. If they go bust then the govt step in and I get a reduced payment. I moved my little cash pot one to a new provider with lower fees a few weeks ago. I am now adding to that direct from my business (as I'm a director) which saves national insurance against paying myself and then making a payment to the pot. I did research on low fees, 'robot' investment and the ones that would let the business contribute direct rather than being seduced by cash back. Places like Nutmeg (cash back), money farm and pensionbee. I filled in a form and they transferred my little pot for me without hassle.

Rule of thumb is you should be investing as a percentage half of your age when you started it. That's a frightening number, but anything invested is better than none at all. I don't know anything about Lisas because I am too old for one.

Hope this helps


ETA: this really helped me https://moneytothemasses.com/saving-for-your-future/pensions/how-much-should-i-pay-into-a-pension-each-month

One-step-at-a-time

Almost forgot... 8 more days until the death of debt #4! :T:T:T

Tonight: home-cooked curry (DH on curry duty, me on naan bread duty). Yummy, with lunch-sized leftovers. We've had a fairly gentle evening of reading and pottering.

Part of my evening has been email cleanup - it's funny, but the more organised my bank account gets, the more it seems that my bank sends 'organise your finances with a personal loan' type emails, usually causing me to expose whichever program may be listening in through my laptop to all manner of unsavoury language. Must have a look at how to opt out of everything other than the essentials :rotfl: