How much to live on

LL_USS

With lower rates, and less attractive balance transfer offers, it's not as profitable to stooze, even less so for slow stoozing (yes I am learning all these words, thanks the masters). But I am happy I am learning this.

Just a couple of months in and by the time I book all kids uni renting, summer trips.... it'll be about 7K on the card. I am passing the amount I've spent to my adult son to ask him manage it for me till I get back to pay the whole card off (unless I transfer the balance elsewhere). He takes all the saving interest (not much but okay for a 19 year old :-)) plus some training money (I give him some extra sometimes when I can see he manages it well finding the best places to put the money). I need to pray he doesn't lose the money from a scam or something. Risk of training - it'll be all right.

Organgrinder

Roughly speaking at the moment my stooze pot is invested at 5%. It's all in ISAs. My longer term savings are put in my pension mainly for tax purposes as it wipes out any higher rate tax I pay.

It generates over £1000 a year in tax free interest. By the time my current round of stoozing finishes in approx 30 months it will have generated around a nett £5,000 after some balance transfer fees have been paid.

If someone said to you I'll give you over £1,000 in 12 months time if you use this card for your shopping and all you need do is one thing (pay it off in full when the time comes) and you knew you could, it seems a very simple way of making a bit extra.

These days with many automated systems it's relatively easy too. Sweep extra cash into a savings account etc.

QrizB

There's an entire board here dedicated to stoozing if you want to discuss it more generally:

https://forums.moneysavingexpert.com/categories/stoozing-free-cash-from-credit-cards

I'm not trying to chase you away from this thread (others might) but you'll find a wider range of opinions and experiences over there.

Organgrinder

QrizB said:

There's an entire board here dedicated to stoozing if you want to discuss it more generally:

https://forums.moneysavingexpert.com/categories/stoozing-free-cash-from-credit-cards

I'm not trying to chase you away from this thread (others might) but you'll find a wider range of opinions and experiences over there.

The problem with a forum as big as MSE is there are threads everywhere on so many topics!

A normal but fascinating issue.

LL_USS

I like this thread here as it has many people I like - and we discuss how much we live on but sometimes sidetrack a bit to a couple of things we can do top up the fund we can use to live on :-). Yes for more specialised discussions on other topics then it is better to go to those specific threads, thanks @QrizB

Have a lovely Sunday everyone

cantbelieveit23

I have spent some time reading many of the very interesting responses (not all 293 pages, unfortunately), some great ideas and successes!
Back to the original question: there's clearly no "one size fits all" answer.  I guess the first question would be: what does "live" mean to you?  Maintain your current lifestyle, or, at least in retirement, be able to afford some things you have not been able (due to time or financial constraints) to do up to now.  Hopefully, nobody is looking to just exist on the absolute minimum.
Next, what financial resources do you have?  Property (ensure any mortgage is repaid asap, and consider downsizing if you are really happy with it)?  Committed finances (investments, ISAs etc)?  "Fluid" finances (income, accessible savings).  Are there ways in which you can boost your savings/income (check MSE every week for ideas).  Ensure that the absolute maximum of your money is earning interest at a decent rate: use Easy Access Savings accounts and Regular Savers to the best advantage.  Get everything you don't need short term into ISAs to avoid paying tax.  Interest on our savings and cash back on cards etc brings us around £7k annually tax free, which can be added to our available funds.
How can you realise your plans with the money available?  Do you want to retain anything to cover potential care costs, for example?  Do you hope that there will be something left to pass on to family etc? 
Start with what is needed for real essentials which you have no control over, and calculate what's left.
A couple of things we did (especially when accounts matured or we inherited) when interest rates on savings were very low) to reduce future expenses: instal solar panels (so our combined gas/electricity bills are effectively reduced to around £60 per month), buy our first new car to extend its life well into the future.

Arthurian

I wonder if pursuing top of the range energy-saving systems might be counter-productive for long-term old age.  Maybe keeping it simple is better.  As we retire, it might seem simple to learn the timing controls for the latest heating systems, or the in car entertainment controls, but as our memories fade, we risk having to get an engineer out to the simplest problems.  An old neighbour, who was once a highly intelligent engineer, forgot where the burglar alarm was, never mind how to switch it off. Turning the thermostat knob up if you're cold and turning it down if you're hot is so much simpler than going into the digital display menu to adjust the heating.  So I wonder about solar panels - how simple are the controls?

MayDogsandCoffee

I have just been totting up what I spend on a weekly / monthly basis, I have realised that for a long while I have been spending under what my pension is going to be.  That is before state pension kicks in too.  Together with my 1 & 1/2 years salary saved I think I am heading to early retirement a bit earlier I am about to move house so booking in all the refurb elements. I prefer to pay once for quality rather than go the DIY route trying to book all the different trades at the same time, I am involved in infrastructure projects at work so don't need the stress in my time off.  Once the bathroom & kitchen are done I will have a second tot up and then consider if I need a bit longer to replenish funds or just go.  Temped to just go.  So mega spends at the moment to future proof and tech up before leaving work.  

QrizB

Arthurian said:

 So I wonder about solar panels - how simple are the controls?

If you just have solar panels, there are no controls - when the sun shines that make electricity, and when it doesn't they don't.

If you start adding storage batteries and energy diverters it can get more complicated but even those generally work acceptably if you set them and forget about it.

oceandreamer

Can I ask a question to those of you who have already retired? What did you buy ie new car, solar panels, that proved to be a good investment for your retirement?  I want to be as prepared as I can be when I take early retirement in (hopefully) just over a year and so would love to hear your thoughts.