The times they are a changing.

LW7

Bizzywizard said:

It might be worth switching bank accounts. I did it 3 times last year and made £175 x 3 £525. My account, husbands account and our joint account. This money got our overdraft right down, its been clear for 2 days whoo whoo. When my Nationwide deal comes to an end in June. I will switch bank accounts again to RBS for their £175 free cash. Any good for you. Sorry question mark does not work.
The switch took about 21 days not the 7 that the banks say, but it was easy and free money and I could still use my card in that switch time.

I have thought about that a few times, I've been with Lloyds all my life. 

Always seems a bit of a faff years ago with having to manually change direct debits and such. I guess that process has improved a lot more now. 

I don't mind Lloyds if I'm honest, we have a huge branch round from my work, the APP works well and I have 5 accounts with them. So I guess I could make some nice change by switching them all!

Is there a rule about switching back to them? As I couldn't be arsed with all the paperwork each year you see.

LW7

savingholmes said:

I think you need to unpick why you are feeling so morbid. If it is just money - it is only money - you can sort that. If it is something else - are there steps you can take to improve the situation. What would they be? Is it worth journalling and picturing yourself at 85 and what you want to tell yourself at the age you are now? For you to be happy at 85 looking back - what would you want to change? They call it the 'rocking chair test' in coaching language. 

That's really interesting, I've never really thought about life after retirement, other than I don't want to work later than early 60's. I guess I'm a simple man, I'd like to be well retired in a bungalow with a dog or two and the wife(!) in the country. Kids grown up and living their own lives etc. 
I'll certainly look into that a bit more! TY!

LW7

Sarahwithlove said:

Well done on tackling the debt, is your wife also tackling her half of the credit card debt? Having an emergency fund of 6 months pay is a good loan next and then start overpaying on the mortgage. It can make such a difference in terms of interest etc. 

Thank you,.

Yes she will, she also gets her annual bonus. She earns slightly more than me, but I will get a higher bonus, so we're really hoping we can get the credit card 80% paid off. Certainly the month or two after, we should be able to utilise the lower mortgage repayment to clear the remainder.

We've both been bad with spending in the years gone by but both really acknowledge this is where is stops and time to get serious.


6 Months wage as an emergency fund is a little bit for us I think, I'm lucky that in some respects, I get full sick pay, critical illness cover and also I hold a separate policy with the same company & employer!) for an income protection policy. So should I be unable to work, I get a lump sum etc.
So the emergency pot need only be for house hold issues for purchases and such, I would expect £3k would cover that. 6 months wage would be a pot of over £8k, which isn't realistic for us to achieve whilst we have other financial priorities. 
I would certainly love to put a few £££ more into the mortgage repayments and see how that impacts the over all interest would be a satisfying feeling.

LW7

So I found out my bonus yesterday, £2,300 and a pay rise of £1,081 PA. 
Would Tax & NI get charged at the usual rate as my normal pay packet?
Wondering how much I'm likely to lose in tax and how much extra I will take home.

Bizzywizard

The bank account switch is done for you, there is a switch guarentee agreement. You will only need to sort out Standing orders the Direct Debits are just doen! I was with HSBC for 30 odd years before I switched, but wasn't making anything off HSBC bank, hence the switch. I like FREE money. You might find to switch back to LLoydes may take a few years, but you will get used to usng a slightly different system. I like the RBS one and found it easier to use than HSBC. Good luck on your journey!

Naomim

LW7 said:

So I found out my bonus yesterday, £2,300 and a pay rise of £1,081 PA. 
Would Tax & NI get charged at the usual rate as my normal pay packet?
Wondering how much I'm likely to lose in tax and how much extra I will take home.

Yes bonuses are taxed the same as your salary and are included as part of your salary. If you are a 20% tax earner be aware if your salary and bonus will take you into the 40% tax bracket.

There are salary calculators online that are pretty good but I think on average a £1k payrise is about an extra £50 -£60 a month.

Hope this helps

Naomim 

LW7

Naomim said:

LW7 said:

So I found out my bonus yesterday, £2,300 and a pay rise of £1,081 PA. 
Would Tax & NI get charged at the usual rate as my normal pay packet?
Wondering how much I'm likely to lose in tax and how much extra I will take home.

Yes bonuses are taxed the same as your salary and are included as part of your salary. If you are a 20% tax earner be aware if your salary and bonus will take you into the 40% tax bracket.

There are salary calculators online that are pretty good but I think on average a £1k payrise is about an extra £50 -£60 a month.

Hope this helps

Naomim 

Hi Naomim,

Thank you for that. 

I am a 20% tax earner currently earning £31,672.50, after my shares/pension and a few other add on (life insurance etc) I get £2,412.45 a month. I then pay £385 tax and £203.21 NI with another £50 deduction for a share save scheme, meaning my deductions are £638.21, net pay £1,774.24.

Is it as easy as saying my bonus is £2,300 and will be tax'd and NI at 20% = £460 so I would come out with £1,840, plus my £1,774.24 = £3,614.24.

Does that look right? 

savingholmes

Are you getting paid it in March or April? If April - there may be a higher tax and ni element.

LW7

savingholmes said:

Are you getting paid it in March or April? If April - there may be a higher tax and ni element.

March.

I did call HMRC last week and they advised me that I am on the correct tax code (cumulative)assured me I wouldn't be over taxed on my pay, but we'll just wait and see.

Roll on 27th!

LW7

So it looks as if my additional pay this month from my bonus after my tax is £1,398, which is less than expected.

However, my share of the credit card is £2,257, so this will go straight into that and reduce my debt down to around £850.

We don't know the wifes bonus as of yet, so hopefully it'll be bigger than mine and we can put more into the credit card!