Future Finances: Time vs Money

ShyAndRetiring

:wave:

Hope everyone's had a lovely day ... especially as the sunshine's back!

So, end of the first month of the thread - well, part month as it's only been a couple of weeks since we started. A quick round up ...

* Spending
Didn't get an extra NSD in today as OH bought items so he could repair both of our cycles (visitors coming this weekend again). Not too bad but unexpected!
So, total of 10/10 no spend days achieved.

* Saving
All the new savings accounts are open and hopefully the final pot shuffle will take place tomorrow so that everything's where it needs to be to get a little interest coming our way. Only admin tasks such as the online banking registration malarkey to be sorted, so happy that task of getting the lump sum earning its keep a little has been achieved for July.

* Sorting
Last squash seedling has now been planted into planter and I've set some garlic out to sprout ready to go into the last planter at some point next month. Everything else is growing productively, so happy that sorting out the garden to grow a bit more of our own produce for Autumn / Winter is well under way.

The early part of the thread's 'sorting' focus on the money started well and, thanks to input from lovely visitors, has made me realise that mid-term planning will be something to 'sort' in August. More later.

Simple pleasures
- Having said that our fruit trees were struggling this year, I had reason to be grovelling around the ground under the apple tree (poo patrol, dog owners will understand) and I happened to look up into the centre of the apple tree from beneath ... and we have apples! :T
- Very happy with that ... apple and ginger marmalade is a favourite make, so this and apple and blackberry jam will both be back on the preserves production line in September, the anticipation of this is a simple pleasure in itself!
- The seagull fledglings from two doors down actually took off today ... as far as our roof. So I opened the living room doors and played them Foo Fighters Learn to Fly as a tribute to their efforts! They made it back to the nest, thankfully before our cat decided to investigate the noise on the roof!

Have a great evening, all SaR x

ShyAndRetiring

Simple thoughts

Within the overall context of future planning for the greater good, enough money and hopefully some early retirement time, I've been thinking about what to focus on for goals in August .

I won't make progress in every area each day, but across the month I'll hope to achieve ...

* Spending
Goal 1) In the last couple of years I discovered that you could use TCB for FleaBay purchases, so I always go through TBC. I've only recently discovered that within TCB you can see a view of your overall spending with a retailer. Now bearing in mind we regard ourselves pretty good for keeping a rein on spending and focus only on needs rather than wants, I was horrified to find that it's a pretty hefty overall sum that's been spent there.
:eek: Hmmm, over 4 figures in fact!
So, instead of general NSD targets I'm going for a FleaBay fast! Officially, no FleaBay spending in August.

Goal 2) We've got lots of visitors this month (OH's family and friends) so the food budget will be stretched. Sometimes we can be guilty of 'oh well, let's just dip into the main pot ...' but as the main pot is now reduced because the money's tucked up properly, I really want to ensure this doesn't happen. I want to break that habit and by doing so I'll be able to stay more on top of the food budget so that I have a more realistic idea of what we're spending.
So, for August the goal is to keep a food budget spending diary and not to overspend on food budget of £165 for the month. That's the 2 of us + visitors.

* Saving
Goal 1) I allow myself £15 per week from my earnings, for personal spends. However, we've got a small holiday in the UK booked for next month (self-catering cottage, just us and pooches) and I want to be able to organise a few treats / meals out etc. I want to try to do this without dipping into any pots at all, so I'm aiming to save £75 out of the overall £120 (8 weeks personal spending money) between now and the holiday (last week of Sept). So this goal will run for 8 weeks, starting tomorrow

Goal 2) Boost ISA by £120 this month We've not long started it and it didn't get a donation when we divvied out the lump sum, so I need to built it up in it's own right. I'm aiming to get this extra from as many sources as possible, including putting across any underspends from other budgets, decluttering and selling a bit, perhaps on Shpock and maybe a bootsale or yardsale, that'll depend on visitors.
Would use FleaBay but makes sense to avoid it whilst I'm trying to be good re: spending target! May consider FBook selling, but had some poor experiences with that.

* Sorting
Goal 1) As Bugslet noted in post #21, our mid-term planning is a bit of a worry area. So the focus of this goal is that by the end of August we'll have a more robust mid-term plan, with some proper numbers around projected income and outgoings. It won't be The Number, but it'll be A Number (or two) which will really help to inform that final number and therefore what else we'll need to do to get there. This is part of the reason I'm focusing on the food budget in spending, as it'll also help me to pin down whether elements of the proposed mid-term budget are realistic.

Goal 2) Hopefully this goal relates to extremely long-term planning! We've been saying we should get a Will sorted out ever since we married 8 years ago. When we moved house less than 2 years ago we said the Will would be the next thing on the list. And guess what? We still haven't done it. And now there's a lump sum and pensions to think about so, which are all part of the future planning so it makes sense that things are sorted in the event of something awful happening to us. Plus, it would make life easier on the kids if we had something official in place. So, August's the month when we Will do it!

There we are then ... sorry it turned out so long, a bit of a brain-dump there! Better out than in though, as they say and all part of the future good! SaRx

crv1963

Hi S&R,


I haven't got a thread of my own, not something I've really thought about. I do enjoy reading others threads, excelpauls " Everyday Ordinary Man Approaching Full Retirement at 59. and Millionaire Challenge.


I am enjoying reading your posts, I seem to always be at work, gardening or seeing to our collection of animals!


I'll give it some thought though.


CRV1963

thriftytracey

* Spending
Goal 1) In the last couple of years I discovered that you could use TCB for FleaBay purchases, so I always go through TBC. I've only recently discovered that within TCB you can see a view of your overall spending with a retailer. Now bearing in mind we regard ourselves pretty good for keeping a rein on spending and focus only on needs rather than wants, I was horrified to find that it's a pretty hefty overall sum that's been spent there.
Hmmm, over 4 figures in fact!
So, instead of general NSD targets I'm going for a FleaBay fast! Officially, no FleaBay spending in August.

What is TCB please?


Goal 2) We've got lots of visitors this month (OH's family and friends) so the food budget will be stretched. Sometimes we can be guilty of 'oh well, let's just dip into the main pot ...' but as the main pot is now reduced because the money's tucked up properly, I really want to ensure this doesn't happen. I want to break that habit and by doing so I'll be able to stay more on top of the food budget so that I have a more realistic idea of what we're spending.
So, for August the goal is to keep a food budget spending diary and not to overspend on food budget of £165 for the month. That's the 2 of us + visitors.

Hi S&R, I wouldn't mind some tips on how to keep our food shop down. We spend £100 per week and there are only 2 of us (main shop Aldi, few bits from Tesco (that Aldi don't stock e.g. branded cat food, some types of fruit and veg, Radox, laundry wash etc) and finally a few "luxuries" from Waitrose e.g. 1 bottle good quality wine (OH doesn't mind Aldi wine), Brittany butter, their sweet cherry tomatoes, Yeo yoghurt etc). I hardly ever buy ready made meals, cook from scratch etc. This also does not include dog food which I buy in bulk on line. We don't grow any fruit and veg though. Although I would not think there is much savings there as Aldi is cheap? I don't buy cakes or crisps and just one packet of biscuits a week. I do tend to occasionally splurge on at least 50% reduced items in Waitrose that can be frozen and have a well stocked freezer if I need to cut back.

* Saving
Goal 1) I allow myself £15 per week from my earnings, for personal spends. However, we've got a small holiday in the UK booked for next month (self-catering cottage, just us and pooches) and I want to be able to organise a few treats / meals out etc. I want to try to do this without dipping into any pots at all, so I'm aiming to save £75 out of the overall £120 (8 weeks personal spending money) between now and the holiday (last week of Sept). So this goal will run for 8 weeks, starting tomorrow

Goal 2) Boost ISA by £120 this month We've not long started it and it didn't get a donation when we divvied out the lump sum, so I need to built it up in it's own right. I'm aiming to get this extra from as many sources as possible, including putting across any underspends from other budgets, decluttering and selling a bit, perhaps on Shpock and maybe a bootsale or yardsale, that'll depend on visitors.
Would use FleaBay but makes sense to avoid it whilst I'm trying to be good re: spending target! May consider FBook selling, but had some poor experiences with that.

* Sorting
Goal 1) As Bugslet noted in post #21, our mid-term planning is a bit of a worry area. So the focus of this goal is that by the end of August we'll have a more robust mid-term plan, with some proper numbers around projected income and outgoings. It won't be The Number, but it'll be A Number (or two) which will really help to inform that final number and therefore what else we'll need to do to get there. This is part of the reason I'm focusing on the food budget in spending, as it'll also help me to pin down whether elements of the proposed mid-term budget are realistic.

Goal 2) Hopefully this goal relates to extremely long-term planning! We've been saying we should get a Will sorted out ever since we married 8 years ago. When we moved house less than 2 years ago we said the Will would be the next thing on the list. And guess what? We still haven't done it. And now there's a lump sum and pensions to think about so, which are all part of the future planning so it makes sense that things are sorted in the event of something awful happening to us. Plus, it would make life easier on the kids if we had something official in place. So, August's the month when we Will do it!

We made our wills a few years ago. We took advantage of the November free will week (donation of £200 to a charity), I think this was still cheaper than normal process. Also, I am considering doing LPA's before retirement just to get them done and out the way. You can DIY much cheaper than going to a solicitor. https://www.gov.uk/power-of-attorney

humptydumptybits

I've made some meals for the freezer to make catering cheaper while we have a houseful and to avoid the temptation of going out for a meal as I can't face cooking for 10 or 12. I made a huge chilli which will feed everyone for one night and probably have enough for wraps for lunch the following day. Made a spicy vegetable sauce that everyone likes with pasta, half is vege with chick peas and half is lamb so that will do two nights. A cottage pie, a bolognese sauce and that is five meals for the week with all the visitors, then one night is fish and chips, obligatory when the come to they seaside for a week and then a roast on Sunday. Breakfast is going to be cereal, toast, yogurt and fruit so easy which leaves me with lunches to think about. If I didn't plan it I would spend a fortune that week, even a trip to the beach with parking for two cars and an icecream each comes to £30 so even with a packed lunch it isn't cheap.

Savvy_Sue

TCB = TopCashBack. Ask someone to refer you!

lessonlearned

S&R.

I agree with Thriftytracy........as well as wills ideally you also need to to do Lasting Power of Attorneys.....for both Wealth and Property and also Health and Welfare.

They are not the nicest things to think about, but when they're done, they're done and then you can then get on with your lives.

As you know I'm a widow now....I have everything in place, including a letter of wishes so that my family know exactly what's what. I keep everything together including insurance policies etc so they know where everything is.

One little snippet that might be of interest to you. And this is something which always astonishes me that financial institutions and solicitors don't advise people on this.

When you buy life insurance make sure that is written in trust for your beneficiaries. Writing it in trust means it bypasses the estate.

This has two advantages.......

1. It is quick. The money goes straight where it is intended, even if the remainder of the estate goes to probate. When my husband died I claimed on the Monday and received a cheque on the Friday.

2. It can reduce your inheritence tax bill (if you have one). because the proceeds of the policy are outwith the estate.

Because the money is paid direct it will mean that there are funds there to pay for your funeral, debts, any expenses or tax bills. This could prove invaluable for your family.

I have known families who have had to take out loans for expenses and tax bills because everything was tied up in the estate. Probate can be a lengthy process. With a little bit of forethought and advance planning you could be saving your loved ones both stress and money.

You will need to pay a small fee to set up the policy in trust. I paid £25 two years ago. It used to be free but now they do charge.

And.......Even if you purchased your life insurance some time ago, you can still put it in trust. It's not just for new policies.

I worked in life insurance at one stage and I always advised my clients to put policies in trust. It still shocks me that solicitors, accountants etc do not always advise their clients better on this.

I'm afraid that some insurance companies don't volunteer this information either. The last time I purchased life cover I had to ask them to do it. I find that pretty poor.

Whether or not you make your own wills and LPAs is entirely up to you. However, do be careful, especially if you have children from previous marriages or if your wills are likely to be complex. DIY wills are really best only for very simple mirror wills.

And if people are not married......then definitely get a solicitor to do the will.

We had to redo our wills when my husband got sick. I had to write him out of my will because, as he was in a nursing home, if I had died before him the State would have seized my portion and my children would have received nothing.

(The fact that he should have been in receipt of Continuing Health Care by this time and wasn't is another story. I did eventually manage to get them to cough up in the end but it was a long battle).

Anyway, The solicitor came out to his nursing home twice. She also had to bring another member of the law firm to ensure that my husband was competent because by this time he couldn't speak and he couldn't write. We also had to have two further independent witnesses.....two nurses were kind enough to do the honours.

We did two wills, two Health and Welfare LPAs, and two Wealth and Property LPAs. Obviously we had to pay for the two visits, including travelling time to compensate for time spent away from their office when they could have been seeing other clients. The total bill came to around £1500.

I think, given the service we received, this was very fair.

At the same time my husband completed an Advanced Directive (instructions for medical care). She also ran her eye over that and countersigned and stamped it so there could be no doubts about my husband's mental capacity. This meant that his instructions could not be countermandered.. She didn't charge for that.

These things are never pleasant to deal with but ...having been placed in a position of being in charge of my husbands care and welfare I soon came to realise the importance of not leaving anything to chance. I needed to ensure that everything I did was absolutely bullet proof so my husbands wishes were respected. Who would protect him if I wasn't there.

After spending 4 months in hospital at one stage my husband begged me not to let him be hospitalised again, not to make him endure any invasive treatments purely to extend his life, and not to make him die in hospital.

I had several battles with medical staff, with one especially memorable occasion with an over zealous nurse in the nursing home who tried to have him hospitalised. This was despite it being stated quite clearly in his file that he did not want to be readmitted to hospital.

However, because I had a full Health and Welfare POA and also his Advance Directive countersigned and stamped by his solicitor I was able to ensure that my husbands wishes were adhered to.

It wasn't much but it was the least I could do.

So my advice is to think very carefully about going down the DIY route for Wills and POAs. You need them to be cast iron and bullet proof.

Unfortunately life can throw a curved ball, bad things can happen and you need to protect both yourselves and your loved ones.

Savvy_Sue

WRT putting things in trust, it's worth checking that any pension pots you may have are written to benefit the 'right' people, if there is a cash payout on death - it's very similar to the insurance policies.

I was a bit shocked to discover that DH was not named as a beneficiary on one of my pensions, it might have been because I had to start paying into it before we were married / engaged.

The Trustees of the pension scheme do not HAVE to adhere to your wishes, but they'd have to have very good reasons NOT to do so, and one of them might be if you'd not updated your wishes, eg you named your first spouse, then divorced and remarried. If you want your second spouse to benefit, you're well advised to change the pension paperwork.

ShyAndRetiring

Hi CRV1963

crv1963 wrote: »

Hi S&R,


I haven't got a thread of my own, not something I've really thought about. I do enjoy reading others threads, excelpauls " Everyday Ordinary Man Approaching Full Retirement at 59. and Millionaire Challenge.

Ahhh, I don't know the Millionaire Challenge but do know ExcelPaul's thread ... lots of useful insights there!


I am enjoying reading your posts, I seem to always be at work, gardening or seeing to our collection of animals!

Thank you! It's helpful for me to have an outlet for my plotting, planning and self-imposed challenges! Your day sounds pretty much like mine - work, animals, home and garden. But those final three are what I'd prefer to spend time doing, hence the thrad (and the challenges)!

I'll give it some thought though.

That's it ... never say never, after all!


CRV1963

ShyAndRetiring

Hi ThriftyTracey :wave:

Thanks for your comments ...

- TCB, as Savvy Sue rightly says, is TopCashBack. I never buy anything online without checking first to see if I can get it through TCB and as FleaBay is among its retailers I seem to have built up quite a bit on account of that. I have about £100 currently pending to cash out and I have about £50 which I swapped for £70 of NotOnTheH*ghSt vouchers, so am gently banking a bit of Xmas money there!

- Food shopping, yes, it's in a constant state of tweaking and trying new ways to improve the spending there. It sounds like we do some pretty similar things in our planning to try to keep the costs down. Our main strategies are:
* We try and stick to £35 or less each week, with the extra £25 a month for bulk buys or stock-up buys.
* 99% vegetarian diet - occasional fish for protein, OH sometimes has meat if we're eating out.
* Main weekly shop is from veg stall at local market, we try to keep that below £20 and I meal plan around what's available.
* The stock-up shop is usually Mr L or Mr A. There's a c00p in the village and we use this mostly as an extension of our fridge (milk, butter and wine)! Oh and wine comes out of the 'entertainment' pot, (£100 per month) not the food budget.
* We don't buy branded items, nor breakfast cereals, usually yoghurt, porridge or toast. When we're in town to visit family, we stop by a lovely ethnic food shop for all of our pulses, so much cheaper than supermarket or health food shop prices.
* All the pet foods are budgeted separately - I guess you're learning how I roll now, a separate pot for everything! :rotfl:
* Growing fruit and veg where possible or buying from market and using up gluts as preserves and sauces, batch cooking for freezer etc. Our market is great and you can buy whole bowls of things for £2, like last week we had a bowl of lovely avoados for £2 and they lasted us all week (including portions for visitors). We also cook from scratch, including sauces, mayonnaise, humous etc.
* A neighbour down the lane sells her hens' eggs. I've got my little 'egg purse' and once a week I put all the odd silver from my purse, any that my OH has donated to his laundry fairy) and any silver shrapnel from car and around the house into it and we buy the eggs from that. There always seems to be enough in the purse so eggs don't have to come out of the food budget. I guess we use about a dozen a week, with visitors and baking, batch cooking etc.

So on the whole I don't think there's much I can spot to recommend that might help you to bring things down. We don't buy much bread, I live on a bag of wraps and dark Ryvitas, OH buys the occasional sour dough from village shop.
Are you vegetarians? I think that and the fact that no pet buys ever come out of our food budget are the only key differences between us, might be worth experimenting with moving your cat food costs and any cheeky bottles of vino to a separate budget and seeing what difference that makes to the weekly spend?

- Thanks for the Wills advice. I tried to get in with the free Will week last Autumn too but I couldn't get any appointments at any of the towns near us, we'd have had to travel about 50 miles away! May have to bring LPA up at the next Bored Meeting

Glad you have it mostly sorted, appreciate your help! SaR x