Simple living in the country - back to basics

Cheery_Daff

Thanks 😊

Shouldn't need a taxi - we're doing train/bus to and from airport, and then staying with friends who we'll be knocking about with. But we'll definitely take some euros.

Leaning towards setting up a First Direct current account - they have no fees for using debit card overseas or withdrawing cash, and you get access to the 7% linked saver too. I don't want to switch accounts, so wouldn't get the £175, but TCB seem to have £45 cashback for taking out a current account...

Going to investigate over breakfast. There are other options on MSE but given we go abroad so very rarely, this is very much a side benefit to us - but the regular saver would be nice.

Cheery_Daff

Right, First Direct joint account applied for. Says it'll take a few days, and they may have to send us something in the post to sign, and then set up security questions on the phone 😂 Are they still in the 1950s? 😂

Anyway, we only have 12 working days til we go 😮 So I'll keep Revolut as a back up, as that's instant - I'd want a physical card I think so might just do that today anyway as it seems less messing than the other one.

I was considering swapping to higher interest normal savings, but I think I'll just drip feed savings account into regular saver.

Everything will need a rethink if I get this new job. We'll be saving a lot more, it'll take me into 40% tax bracket for the first time (I would have hit before but don't work full time), and we may get to the point of having to pay tax on savings interest - which seems completely laughable since we have so few savings in the grand scheme of things 😂 but in the higher bracket the allowance is only £500 interest. I don't mind paying tax of course, very happy to! Just want to make sure I understand what's what - Mr Cheery doesn't even hit basic rate threshold and our savings are all in joint accounts so need to work out whether that's best or whether to split/go for ISAs etc.

Anyway, will worry about that if it ever happens - got enough to do without working out hypothetical scenarios for things that may never occur! (Although I do seem to spend quite a bit of time doing that 😂).

Right, this morning. Mr Cheery's friend is coming at 4.30, and we'd like the house to be tidier. He's currently not feeling well and having a nap. I think I'm going to go and do some scything since it's not actually raining! I want to strim the garden, but that may ruin the napping... so I'll wait for a bit. So...

* washing on
* scythe for an hour
* washing pegged out
* strim
* lunch
* tidy & hoover

Then later when she's here (they're doing musical things, it's not a social visit so I won't be involved)...

* exercise
* sort out clothes upstairs
* blog post
* more work on video for friend?!
* possibly set myself up in the craft room with a film and my rag rug 😊
* make tea at some point

Then we may nip into town tonight. There's a big fireworks event - won't be going in, but last year we just happened to be walking through the park when it was on, and it was quite nice to be out, and there was a festive atmosphere even though we weren't in the event itself. So we might do the same thing this time, we'll see.

Right, need to go outside (although it's bloody freezing - but maybe it'll be warmer out there?!)

badmemory

You probably already know this but-- if the accounts are joint then the interest should be 50:50.  So even if you have £1k interest then £500 of yours is tax free anyway & Mr Cheery if he already doesn't pay tax can earn at least £6k in interest in his own name without tax.  Do not take my word for it obviously.

joedenise

It would also be worth putting some of your savings into ISAs as of course they are tax free.  Might even be worth topping up your pension payments as again that will reduce the amount of tax you need to pay.

dawnybabes

Also do you use Mr Cheerys married tax allowance ? 

Cheery_Daff

Thanks both. Yes, I was reading about the 50 50 split, and about the extra allowance for Mr Cheery this morning. We'll certainly consider an ISA if I do get this job (if I don't, I might just stick with what we have - there's no way we'll hit any kind of threshold at the minute). 

We'll do mortgage overpayments before pension extras I think - I'm a long way off retirement (25 years til state pension), and mortgage fix is up in September, but before both of those will just be savings - we're a long way off what I'd consider having a comfortable level given the amount of things that could potentially go wrong round here 😂 So savings first, then mortgage, then (eventually) pension. 

Mr Cheery's already taking his works pension (early) so can't pay any more into that. Mine is decent anyway without adding extra, so will wait til the mortgage is paid off - which if we don't make any overpayemts won't be til I'm 62 anyway 🙄😂

badmemory

I THINK he can pay into a SIPP until he is 75.  If it is not withdrawn you can inherit, yes not a nice thought but as they say s*** happens.  If you are getting the married tax allowance I think it stops when you earn £40k.  A lot of thinks there but it will maybe help you to think whats what.  My belief is every penny to the tax man that is due but not a single penny more.

Cheery_Daff

Thanks badmemory. We do have the married person's allowance, but I've earned over £40k since we had it so I don't think that's the cut off? But don't know if there's a different one. For us, it just changes my tax code so I can earn something like 14,500 before I pay tax).

Will keep pondering.

badmemory

Yes I was wrong it is just over £50k.  You see why I always say I think!

Cheery_Daff

Ah, yes, it's only available to basic rate tax payers (so the cut off is the 20% cut off, which is currently £50,270 I think). 

Will add that to the list of things to sort out if I do get the new job, although I imagine it'll get automatically taken off me anyway.

Did an hour or so of strimming in the rain - there's more to do but I was getting quite soggy! Didn't do any scything for similar reasons. 

Mr Cheery's friend is due within the next hour or so, so we're pottering about tidying up.