FIREside Chats

gallygirl

QueenJess said:

@SuperSecretSquirrel I'm glad it's not only me trying to drive in the right direction, but not actually have any firm plans. I read too many posts where people seem to have their whole lives mapped out and all the calculations locked down!

The best time to start a pension (or any savings) was yesterday. The second best time is today.

Start by looking at your spending - from large items (have you got the best mortgage rate?) to medium - power, insurance etc, to low - would it kill you to grate your own cheese for instance? Minimise your spending and that will put you in a good position going forward.

As for a road map - see it as a Magical Mystery Tour - you know where you want to end up but not necessarily when you want to arrive or what route to take! Hopefully other people's plans may spark some ideas of your own.

South_coast

SuperSecretSquirrel said:

....I feel like I'm already on the "freedom spectrum"

I am LOVING the idea of the freedom spectrum 😀😀😀

QueenJess

Start by looking at your spending - from large items (have you got the best mortgage rate?) to medium - power, insurance etc, to low - would it kill you to grate your own cheese for instance? Minimise your spending and that will put you in a good position going forward.

My mind boggles that anyone would choose to buy grated cheese. I guess they must since it is on the supermarket shelves.

I tend to have the opposite problem these days - I'm too stingy with spending. I take out more and more upfront for pension/savings and leave myself with a bit too little to spend.

ruby_eskimo

QueenJess said:

Start by looking at your spending - from large items (have you got the best mortgage rate?) to medium - power, insurance etc, to low - would it kill you to grate your own cheese for instance? Minimise your spending and that will put you in a good position going forward.

My mind boggles that anyone would choose to buy grated cheese. I guess they must since it is on the supermarket shelves.

I tend to have the opposite problem these days - I'm too stingy with spending. I take out more and more upfront for pension/savings and leave myself with a bit too little to spend.

I'm also finding that some months I'm in the "must save as much as possible and be very very frugal" camp and other's I'm in the "I haven't treated myself for so long so lets go buy stuff" camp.  And when I say I'm treating myself I mean I'm actually buying things that I kind of need like new underwear 🙃

I did a bit of research last night and took a look at the budget yet again and I think I could free up another £100 regularly at the moment to go into an investment pot.  Have been looking at the Vanguard Target Retirement 2045 fund which would take me to 58, around the time I would be hoping to retire anyway.  Still a little scared about the prospect of possibly losing money but then again as others have said, I could drop down dead tomorrow so 🤷‍♀️ 

SuperSecretSquirrel

Apologies, multi-quote isn't working for me...

@QueenJess, the way I see it simply heading in the right direction can't really do any harm, and will more than likely do a lot of good It results in options being made available, and that's something I really appreciate! Waiting until I had a solid full life plan pinned down would be a surefire way for me to never get started

I'm sure you're right @edinburgher. I have this idealised vision of the future where the siblings are best friends and would love to have each others company and support when making their first tentative steps away from the nest.  I know this isn't realistic. It could happen, but it's not the odds on favourite scenario... Still, in that situation selling up and sharing the equity between them would still be an option. 

Me too @South_coast I definitely don't see it as an all or nothing thing - there are definitely options made available along the way, not just at the "finish line" (a finish line that I'm sure is quite often mobile and invisible!). A wise man once said "life is what happens when you're busy making other plans". I agree. I just want a secure future and to enjoy the ride

Tartan_Mum

I find this all fascinating. Thanks for the reading suggestions too. I think there is so much emotion tied up in money and your views on saving and planning and your upbringing makes such a difference. 

I want to be super frugal and throw everything at efforts to build savings and pensions but then I also want to enjoy life. The eternal conundrum. 

As a couple we can’t bring ourselves to save every single penny because I was brought up with very little and have worked hard so I want to enjoy some luxuries in this one life we have and DH’s father died v young in an accident which has, understandably, shaped his views on putting everything off for retirement. And I can’t blame him. Balance is everything. 

So often we end up crippled by indecision and we don’t make wise financial decisions. By that I mean we don’t actively plan and we’re not tax efficient. We must try harder. 

Thanks again @edinburgher

edinburgher

@Tartan_Mum - you're very welcome and I know where you're coming from.

We are also relatively spendy compared to some and when I say that I mean within reason (we're on slightly higher than median incomes). I can't, however, bring myself to be an eighth degree vegetarian blackbelt who only eats vegetables where the pack price was 13p or lower (no disrespect to ethical vegetarians and vegans intended)! I also struggle with deferred gratification, but am oddly focused on retirement at the same time. I think I know in my heart of hearts that retirement is basically just the ultimate deferred gratification?

The loss of DH's father will understandably have shaped his views (I have a close friend whose dad died when he was a child). It was, however, an accident and hopefully he's able to come to terms with a bit of a balance between living today and accepting that he's almost definitely going to get to enjoy being an adult (and then an older adult) for quite some time

edinburgher

I am choosing to treat our Tax Relief on WFH for the year as a windfall. Mrs E and I are both eligible (£120 total, so I have paid £60 into my SIPP, £75 after tax relief). One thing that I have learned on my financial journey so far is that a saving is only a saving if you realise it, paying it in now will prevent frittering down the line

becky_rtw

@edinburgher Food is our number 1 expense, but we both eat HFLC so basically all meat and dairy and a few veg to make up for the veggies/vegan.

Happy to be stingy about heating and such like but not going to compromise on food 😂

Last shop came to £160 for two people, which is about 10 days worth plus we buy milk and eggs from the milk person for about £15 a week. 

edinburgher

@becky_rtw - I did a keto diet for 5-6 weeks and it actually brought the cost of groceries down. I suppose it was because I basically ate eggs, mayo, cold meat and olives (couldn't get inspired). I love love love L1dl's organic eggs, a bargain!