How much to live on

LL_USS

Doing planning extensively has helped me over the past decade as I started to take over the household affair, having little children to take care of with limited means and zero financial management experience.

I do look forward to the day to send the kids totally off the nest then gradually reduce work and then I can be back to "no excel sheet", only minimum planning perhaps just in the head , and just enjoy living (I am the type that can do that with minimal costs, I believe).

I don't deny the benefits of financial planning and management. It's a blessing when you don't have to.

PS: if it was just me I wouldn't need much planning but as @helensbiggestfan I want to leave a legacy to the children and I don't mind doing this.

Organgrinder

LL_USS said:

Doing planning extensively has helped me over the past decade as I started to take over the household affair, having little children to take care of with limited means and zero financial management experience.

I do look forward to the day to send the kids totally off the nest then gradually reduce work and then I can be back to "no excel sheet", only minimum planning perhaps just in the head , and just enjoy living (I am the type that can do that with minimal costs, I believe).

I don't deny the benefits of financial planning and management. It's a blessing when you don't have to.

PS: if it was just me I wouldn't need much planning but as @helensbiggestfan I want to leave a legacy to the children and I don't mind doing this.

Same here - I'd like to leave them something - or even gift it over a number of years.

I think the responsibility of having children, or indeed the desire to give them something is a very important factor in financial planning.

Unexpected bills too can be very worrying for people. I know I am fortunate to have savings etc, but nevertheless having suddenly to find an extra £700 to pay for this year's holiday isn't just something I can "write a cheque for". In maximising my income, my savings are sometimes not readily accessible, or if they are I need to move pots around a little at times. It doesn't take me long and I'm glad I have everying managed in my spreadsheet.

For me, it's far better to maximise the interest I receive than to put it all into say, one relatively worse account merely cos it means it's simpler. The transactions literally take very little of my time, yet maximise what I have. I don't then have to claim I can't afford x, when with a little bit of work I can.

helensbiggestfan

Smudge . You were very young to lose your husband, and having to bring up two small children on your own.  I take my hat off to you, it can't have been easy.  

And you're right, you don't need tons of money to live well. 

 I have worked for several millionaires and high powered business people, one of them was worth well over £250m. I learned a lot from them.  They were all self made, not born with silver spoons. And the one thing they all had in common was that they all lived simply and were quite frugal given how much money they actually had.  They were all keen to build generational wealth and leave a legacy.  And they all were very generous to their favoured charities, all keen to give back to society.  

Obviously I am not in the same league 🤪 but that is my aim, to help the next generation.  My sons are doing well enough, so now I am turning my attention to helping my grandchildren.  

And you're so right, life is for living and growing old is a privilege denied to so many.  Waiting for "when" can be a big mistake. 

I have just done my monthly round up.  June was an expensive month, bought some furniture and "invested" in some acupuncture treatments for my dodgy knee.  But on balance I'm doing ok.  All within budget. 

Humboldt

I just wanted to say thanks to those who have recently taken the time to write such personal, inspiring and supportive posts on this thread.  What they highlight, is the fact that although we all live very different lives, with their own unique challenges, we can still learn from each other despite those differences. 

MarzipanCrumble

Smudgeismydog said:

In terms of the title of this post, it is very subjective how much we will all need to live on, but it is possible to live a fulfilling retirement on quite modest amounts. I feel that a lot of posters, particularly on the Pensions board, will not be able to spend their assets in their lifetimes. 

That sums up my situation, I'm afraid.

Baby boomer with all the luck of circumstance that settles around us, without even trying.  Although I did contribute to my own luck by taking a degree when my children were 0-5.   Also deferred State Pension (old - 10% pa interest for about 7 years). 

Husband came from Porth - poor Welsh mining family.  You got education to get out, if you could.  The schools and libraries were supported by the Mining Community.  Teacher until he followed his passion;  and totally changed his career.  Died aged 69 but what a life he had!  And - as a result of his life - what a funeral!   (He was not one for eating healthily or moderation....)

Whereas I came from a properly middle-class family (doctor father, stayathome mother) where money was always an issue although thinking about it not sure why.  As a result I find it really hard to spend.  Know I should, but don't.  Doesn't make it easier being on my own - singles etc and all the baggage.

I totally am in awe of those who exist on a SP only.  Not sure I could.  

I find this thread interesting because it does attract a variety of experiences and tactics for spending after   retirement.  I admire #Organgrinder - I couldnot do what he does as it would stress me far too much.  

I agree that the global situation is unstable.  I feel that in the UK tax will have to rise - maybe only for those paying 40%+.  As a higher rate taxpayer I would support that - look at the happiness rating of the Scandanavian countries where higher tax  for better public services seems to be a norm.

Organgrinder

MarzipanCrumble said:

Smudgeismydog said:

In terms of the title of this post, it is very subjective how much we will all need to live on, but it is possible to live a fulfilling retirement on quite modest amounts. I feel that a lot of posters, particularly on the Pensions board, will not be able to spend their assets in their lifetimes. 

That sums up my situation, I'm afraid.

Baby boomer with all the luck of circumstance that settles around us, without even trying.  Although I did contribute to my own luck by taking a degree when my children were 0-5.   Also deferred State Pension (old - 10% pa interest for about 7 years). 

Husband came from Porth - poor Welsh mining family.  You got education to get out, if you could.  The schools and libraries were supported by the Mining Community.  Teacher until he followed his passion;  and totally changed his career.  Died aged 69 but what a life he had!  And - as a result of his life - what a funeral!   (He was not one for eating healthily or moderation....)

Whereas I came from a properly middle-class family (doctor father, stayathome mother) where money was always an issue although thinking about it not sure why.  As a result I find it really hard to spend.  Know I should, but don't.  Doesn't make it easier being on my own - singles etc and all the baggage.

I totally am in awe of those who exist on a SP only.  Not sure I could.  

I find this thread interesting because it does attract a variety of experiences and tactics for spending after   retirement.  I admire #Organgrinder - I couldnot do what he does as it would stress me far too much.  

I agree that the global situation is unstable.  I feel that in the UK tax will have to rise - maybe only for those paying 40%+.  As a higher rate taxpayer I would support that - look at the happiness rating of the Scandanavian countries where higher tax  for better public services seems to be a norm.

It took me a long time to start doing any of the things I do. I was worried I'd miss a payment or there'd be problems with bank switching etc.

In the end I realised that with all the tools out there, it would be easy to organise things. All in every year I must make an additional month's take him pay or more for a lot less than one month's work. It's enabled me to travel to new places or take an extra holiday and it is only through reading about how people have done this that I have managed to do it myself.

We are all different in our approaches though. I just don't see why I would want to settle for less when I have the capacity to get more at no great increase in effort! If a few minutes work every month can get me an extra trip aborad, that to me is an extra experience I will have in life that I wouldn't have otherwise.

LL_USS

@Organgrinder and others, good morning. Do you know if I can still apply for the second 0% interest purchase card with a "Good" only credit rating with Experian (942). It has always been Excellent before but I think it was because I applied for the first card in April. Perhaps it's better I wait for a 6 months gap to apply for the second card?  Thank you 

PS: Luckily I managed to put in a decent sum of saving in Nationwide 18month bond fixed 5% and so it's still worth to just borrow the money to spend and have interest from that amount.

WYSPECIAL

Your credit score is for entertainment purposes only. You'll either meet the criteria that the lender is looking for or you won't. Who is it you're applying to? Others may be able to share their experience. I didn't apply for any new cards for a couple of years but then got two very close together last year. M&S and Natwest in that order. Both with higher than expected credit limits and long 0% timescales for under 2% transfer fees.

Organgrinder

As @WYSPECIAL says your credit score means very little.

In the past six months I've opened two new cards with Tesco and MBNA. At the time I was not allowed cards from Virgin and Santander. My "score" is now a lot lower and my credit utilisation a lot higher, but I am "pre-approved" for both. (I do need to check whether I would get offered anything though!).

In six months I'll need to move about £20,000 from 3 cards and I'm confident I'll be able to move at least half of it and possibly start again too.

So I've got 5 current 0% cards. I hold two other cards that have a 0% offer available should I want it, and keep getting offers on new 0% cards (both balance transfer and purchases).

A quick check on my spreadsheet and by the time the above run out I'll have netted £4500 after fees.

LL_USS

@WYSPECIAL and @Organgrinder thank you both.

I have had one 0% interest card with M&S from April and will just search for one that has about 24m and small minimum payment. I guess I still should do a bit of research on how long after the first card application, which bank this second one with... for a good chance of approval before applying as if it's declined it will be a while until I can apply again....