Beating Lifestyle Inflation and Staying Mortgage Free!

earthgirl2

Apart from the stressful work tasks (of which the most stress is over), I feel like my life is pretty balanced now.

I go hiking each week, do yoga outside everyday (not going back to the gym). I go swimming in lochs or pools most days. 

I don't think I live a really frugal life like I used to though. And I do sometimes feel pulled back to the challenge of being really frugal and not spending on anything, but then I have to find balance as well. Having a sporty teenager isn't cheap (he eats sooo much!) and only wears branded things etc. 

Im also aware that we haven't got many more years of going on holiday together as a family and there are some big trips (and small trips) I'd like to do. So we need to spend on these. 

I'm hovering right around the higher tax bracket though, so I need to decide what to do about income and expenses. 

1. Sort out tax return so far 
2. Make sure I'm logging all of the expenses properly 
3. Decide on how to increase income (should be with minimum extra hours) and to what point.
4. should I set up an extra pension to absorb extra income rather than pay tax?

4. Look at tax efficient investments for the money I do have. 

Saving money 

5. Allocate money to sensible holidays (but still fit in the Australia one!) 
6. Look at other ways of saving money especially if it has no impact on our lives
7. get the teenager to budget instead of expecting money all the time. 

8. Use up vouchers I have to make things cheaper
- swimming and local council gym
- 2 credits at private gym for classes 
- asd@ vouchers for shopping 
- 2 x £40 J L vouchers from credit card. 

- shop and scan 

savingholmes

Sorry to hear about the cat's injuries. Glad it's on the mend now.

Good news on the income. I'd put extra income about HR tax into pension rather than not earn it.

Being uber frugal - sorry if this sounds contentious - can almost become a form of self neglect for some people. We all have to find the balance that works for us and our family. I would therefore create more memories like you are planning - that all sounds really positive - and ditch any misplaced guilt.

Cheery_Daff

Gosh, what high drama with the poor cat! Glad you were able to be a good nurse, and puss is now up and running again. How very stressful it must have been xx

What's the worry about going into the higher tax bracket?

Does sound like you have a pretty balanced life! 😊

earthgirl2

Yes I mention it a lot because I'm worried! I think I'm worried because I've never been there and I don't want to work for no or little benefit, and I feel like I don't really know what to do about it. 

savingholmes

I used to worry about HR tax. Now I've just worked out how much I need to pay into pension to avoid paying it and max out the benefit of the HR tax back. I'm therefore using it to create a tax free lump sum via AVCs alongside by defined benefits pension. That will then help me pay off my mortgage - although I think you've already achieved that.

beanielou

Poor wee cat 🐱 & poor you. 

Make memories with your children while you can. 

They are priceless. 

You will never get that time back. 

Karmacat

Very glad to hear your poor cat recovered how awful.  But you still managed to get lots of fun in, as well as earned income.  You're a star!  And remember, the only reason you're having to think about HR tax is that you're earning more.  Tucking it away in tax free investments is a great idea, two birds/one stone  

South_coast

I really wouldn't worry about not doubling down on the frugality. Unless you're trying to free up cash for something specific, or you're doing it from a perspective of preventing waste, there's really no need when your finances are in the position they are. Gift yourself the permission to relax and ease off a bit on the focus on money

stoplurking

Not sure if you receive Child Benefit EG, but you might lose that if you go into HR tax band.  

earthgirl2

Thanks for all of the helpful comments. Yes I get child benefit. I'm going to put any extra I earn into a pension. 

I've decided to double down on saving as that leaves more money in my pocket, and also try to make more money without working many more hours. 

We are taking our room off Airbnb again as we don't want to pay for all of the certifications you now need in Scotland, so I'd like to increase income to cover this. 

Increasing income

So far I've-
moved 30k into a high interest 1 year savings account.
asked for a raise in two of my jobs
asked for more work in one job

still to do-
apply for more hosting positions 
Think of other money making ideas
chase up above pay rise requests at the end of month.

Saving money 
- trying to use 1/2 of everything I used to (except food) so just being mindful of how much I'm using of everything really, toiletries, cleaning products, using a flask at home etc
- I've planned out a cheap but healthish 3 week meal plan, and I'd like to get our groceries down to one £100 bulk buy per month and £50 per subsequent weeks. So that would be £250/300 per month, including 2 gluten free people. That's a huge challenge! 

- I've talked to ds1 about how many lunches he buys at school. 2 meal deals a day at least per day! He is so sporty and needs the food, but I'm trying to steer him away from the extra baking and sweet drink, that's unnecessary. Hopefully he can stick to only getting one meal deal and an extra baguette and drinking more water 😆 

to do-
go through expenses and find ways to cut back 
check supermarket deals /vouchers