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Saga's saga

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SagaSaga Forumite
124 posts
Eighth Anniversary 10 Posts
A few months ago I tried to be matched to an independent financial adviser using unbiased.co.uk.  In the end I never was.  I guess my net worth was too small to be worthwhile.  Perhaps it was a way for me to be reminded that, in the grand scheme of things, I don't really have that much.

You see, back in 2013 I was between jobs with a total £7.5K debt (OD, bank loans & CCs).  I had calculated that I had just three months before I was going to be effectively bankrupt.  But then I managed to catch a break and got a job I enjoyed working with people who were not like the bunch of 'canutes' I had worked with elsewhere.  A lot of hard work few promotions later I'm earning a respectable wage, by no means good or comfortable.

All that wouldn't be so bad, but it has to be taken in context that I'm now nearly 50yo.  I have always rented and TBH not the most practical person around.  I don't even drive.  So the realities of owning my own home, while exciting and liberating, fill me with a level of reality-dread.  While I would love to own the same type of three-bedroom suburban semi I grew up in, I know properties take a lot of looking after and beyond wallpapering and painting I don't think I'd be any good at DIY, e.g. tiling, re-building a garden fence or paving a path.

From a position of dire debt, I am close to having  £36K in savings accounts, including a HTB ISA, and no other debts.  One day it feels like a decent amount, the next I'm brought back to reality and realise it's nothing like the sort of figures on here talk about, with hundreds of thousands in investments and pension pots. And, of course, it isn't a lot: I don't own my own home and my savings will still leave me needing a sizeable mortgage over a short term given my age.

One of the reasons I wanted to speak with an IFA was because I had been looking for a suitable property to get a mortgage for but hadn't found one and it felt that the likelihood of me finding one was very low.  So I wanted to find out what best to do with my money in the meantime but having no knowledge of investments.  Anyway, with savings interest rates tumbling I'm shuffling my savings from one account to a new one every few weeks and not really knowing what more to do...
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100% debt-free!

Replies

  • Skint_yet_AgainSkint_yet_Again Forumite
    4.4K posts
    Eighth Anniversary 1,000 Posts Name Dropper
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    Well done on clearing the debt and savings Saga. Sadly I am not one of those with thousands in investments and pension pots & can’t really advise you what to do with your money, but just wanted to wish you good luck 
    0% credit card £1360 ~ paid in full
    0% Car Loan £7500 ~ paid in full
    JAN 2020 = NOW DEBT FREE :)
    Emergency fund £1000 now 51 and saving for retirement !
  • savingwannabesavingwannabe Forumite
    14.9K posts
    Tenth Anniversary 10,000 Posts
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    My pretty meagre savings are in Marcus MSE's bank accounts link will tell you who is paying the most interest at the moment. Interest is pretty pitiful though.. The banking and saving thread will probably have more advice on investing. I don't like investing in the stock market so I just keep mine in a bank.  As to worrying about the upkeep tasks don't worry. I can't do anything so I learn and hire people and I have bumbled along for 14 years. Good luck Saga and really well done on turning your life around keep saving for the house i think you have a good deposit.
    Trying to be frugal 18/31Jan; 15/29 Feb 26/31 March 23/30 April 18/31 May 20/300 Jun NSDs.
    Saving change in money box.
  • ForestBluebellsForestBluebells Forumite
    229 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    Hi there 👋 I wouldn’t compare yourself to people on here as I would say on the most part they are not representative of the general UK population so don’t feel left behind. I’m playing catch-up on a single salary after only starting a pension at 35 and having no savings until this last year. Everyone is on their own track in life and that doesn’t make it right or wrong/ better or worse. The most important thing is you have now cleared your debts and you happiness is important too.  Not all countries in the world are so set on home ownership like we are in the uk, there’s nothing wrong with renting if that’s what you want to do. I don’t know what area you live in but that would be a good deposit size in some areas. Speak to a mortgage broker to see what amount you could borrow over what term and see if that fits what you are looking for. 

    Make sure you are reviewing your pension planning too whilst reviewing everything. 

    You can do it :)
  • SagaSaga Forumite
    124 posts
    Eighth Anniversary 10 Posts
    Well done on clearing the debt and savings Saga. Sadly I am not one of those with thousands in investments and pension pots & can’t really advise you what to do with your money, but just wanted to wish you good luck 
    Thanks SyA.  And well done to you on clearing your debts too.  When do you plan to retire?  Have you a decent pension pot?  Mine is quite laughable really.  Do you own your own home?
    My pretty meagre savings are in Marcus MSE's bank accounts link will tell you who is paying the most interest at the moment. Interest is pretty pitiful though.. The banking and saving thread will probably have more advice on investing. I don't like investing in the stock market so I just keep mine in a bank.  As to worrying about the upkeep tasks don't worry. I can't do anything so I learn and hire people and I have bumbled along for 14 years. Good luck Saga and really well done on turning your life around keep saving for the house i think you have a good deposit.
    Thanks savingwannabe.  I was going to open a Marcus account, but they've just reduced their rates, so have gone with NS&I. Who else remembers the days of 5% savings rates?!
    Hi there 👋 I wouldn’t compare yourself to people on here as I would say on the most part they are not representative of the general UK population so don’t feel left behind. I’m playing catch-up on a single salary after only starting a pension at 35 and having no savings until this last year. Everyone is on their own track in life and that doesn’t make it right or wrong/ better or worse. The most important thing is you have now cleared your debts and you happiness is important too.  Not all countries in the world are so set on home ownership like we are in the uk, there’s nothing wrong with renting if that’s what you want to do. I don’t know what area you live in but that would be a good deposit size in some areas. Speak to a mortgage broker to see what amount you could borrow over what term and see if that fits what you are looking for. 

    Make sure you are reviewing your pension planning too whilst reviewing everything. 

    You can do it :)
    Thanks FB.  I have been looking into my pensions.  I recently traced my pensions from previous jobs – seriously nothing to write home about!!  I have used online calculators to see what contributing more of my salary to my current pension would do, but honestly the difference is just a few pounds per week extra.  I shouldn't say, but because I don't have dependents and I'm not as fit as I should be I do wonder if I'll even live to enjoy many years of retirement, in which case do I forget about the pension and concentrate on enjoying what time I have left.  Like others have said on here, though, the thought of being turfed out by landlords in my old age doesn't fill me with ease hence the search for a place of my own.
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    100% debt-free!
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