More WIRE than FIRE, simplifying, saving and savvy spending

ShyAndRetiring

uralmaid said:

I made 15 table decorations for use at our Social Centre  Xmas lunch this week. It has inspired me to try doing other crafts in the coming new year. Currently I am busy sourcing and decorating my pirate hat ready for Whitby steampunk next year. I am craving a small , lightweight galleon to go on the hat, but so far haven't managed to find one which is the right size and light enough to sit on a hat, but I live in hope

Hi @uralmaid sounds like you've been busy! Our village puts on a Xmas meal which we don't usually go to because we're at work, but my neighbour also makes decorations and says it's surprising how many of the older residents ask to take one home with them, especially if they haven't been able to do much in the way of Xmas decor at home, so I'm sure your decorations will have been appreciated way beyond the lunch itself.

Ooooh steampunk is fun and steampunk crafting is a whole niche of its own - there is some beautiful work out there, I'm sure your hat will be stunning! I guess galleon craft kits can be expensive, especially if you want to adapt it anyway to sit on a hat ... sounds like you may have a charity shop challenge on your hands, to find the perfect thing! Good luck

MayDogsandCoffee

I have come out of long term lurking, Loving the WIRE statement as that is going to be me.  Working full time but hoping that next next is my last full year.  A recent diagnosis (life changing but not threatening) is making me think about p/t much earlier.  Will be watching with interest and for tips.

ShyAndRetiring

MayDogsandCoffee said:

I have come out of long term lurking, Loving the WIRE statement as that is going to be me.  Working full time but hoping that next next is my last full year.  A recent diagnosis (life changing but not threatening) is making me think about p/t much earlier.  Will be watching with interest and for tips.

Thanks @MayDogsandCoffee, for coming out of lurkdom to comment ~ sounds like we're on a similar journey so please do feel free to join in and comment, I'll be appreciating advice and insights too! 

'Life changing' is definitely the relevant description. The pause that it creates for thinking about options for taking a step back is so important. Part-time can be a great stepping stone and I hope you're able to make the move that's best for you as the new year progresses.

Wishing you well with your health and for the best possible recovery and look forward to sharing how you're doing.

S&R x

ShyAndRetiring

😊 Lovely to have visitors, thank you and very interesting that WIRE is also under consideration for so many others. 

Today has been a bit of balance, pacing myself back to work, before handing in my hardware and finishing Christmas week. Feel a bit flat about that but it could be medication and the poor weather imposing themselves, I do know it’s a change for the good so am generally positive and looking forward to the change, just slightly misplaced it today!   Having worked short hours today, after a period of being off, I realize how important routine is for me. This is a thought I will carry into the new year, new phase. 

Spending & saving

• Actually a no spend day, trying to eat from cupboards to make a bit of space for a Xmas food shop in the coming week or so. 
• Also claiming this as my money saving move.
• Have started my 52 week savings challenge for Xmas next year. This set me up well in preparing for this Christmas, although I’m not going to spend all of it on the one day. It’s also for things like going out for a Xmas meal with family, hopefully if everyone is better in time. I’m restarting the challenge for 2025 by getting the higher numbers out of the way first whilst I’m still earning so £153 sent to Starling saver space, for the time being. May look for something with better interest in the new year.

Sorting

Sorted out the Xmas card stash and have plenty to use this year, so also saving by not buying any more. Did Royal Mail surveys earlier in the year so saved my free stamps to share with my Older Ones for Xmas posting so a chance for them to save a bit too. Sending cards by post is so expensive but it’s the only way they have of keeping up with a circle of old friends, which sadly reduces each year. We don’t send many cards now but just exchange with neighbours really, so I don’t need stamps for that!

Surveys - nowt suitable today, sadly. £26 pending! 😊

Simple pleasures 

• Getting on the rug for a bit of focused play with the dog, 🐕  Good to rebuild our bond as OH has been doing so much with him whilst I’ve been ill, it felt good to reconnect, as well as just doing something fun and normal - he was the one with the energy mind you!
• Background music.
• WhatsApp - for keeping us connected whilst stuck indoors with illness, which has felt like an echo of the pandemic really. Very grateful for free messaging, cheery photos and well wishing GIFs!

Also grateful not to be badly affected by the storms, especially as some homes are without power still, hope everyone is OK.

S&R x

ShyAndRetiring

Debt & Credit

I’ve been thinking about the role debt and credit might play in my WIRE phase. 

Our current position is that we have a small credit card debt of approx £300. This is an interest-free balance and I’ve been paying it down from the £500 card limit, following unexpected vet bills. I have allowed a debt payment from the monthly budget, which is above the minimum and will mean this balance is paid off within the next 6 months. I could pay it off immediately from savings but the savings are earning interest where the credit balance doesn’t incur any, so I feel OK to let it run its course and save a few pounds.

We will then keep the credit card, but maybe swap it out for a 0% one once it becomes interest payable. Our reasons for keeping access / use of a credit card are:

• Immediate convenient access to emergency credit if needed. Yes, we have savings but sometimes (like with the vet bill) it’s easier to pay with the card and then pay it back from savings or pay off gradually (if all things ‘interest’ are favourable).

• Purposeful use of the card in order to gain extra insurance cover, for example a new appliance or item of furniture. Although we could pay for these from house fund savings, we prefer to have the extra cover that comes with the card and then to pay it back from savings.

• Absolute emergencies, such as my OH has family abroad and in recent years has needed to get a plane ticket at short notice. Again, it’s not ideal to use the CC as an emergency fund, but it does allow a pay-now-sort-it later element that life sometimes requires, then our actual emergency funds can top up from afterwards.

• Our credit rating is VERY GOOD but our access to credit is pretty poor because our income is low and we are not big credit users, eg: no mortgage, only one credit card etc. It’s also the reason our current 0% CC only gave us a limit of £500! Keeping one CC ‘live’ seems helpful, just in case we require extra credit down the line where it’s cost effective. For instance solar panel installation if grants / deals become available or to change the car, as required.

The other debt we have is a small Klarna for an item of furniture where it was useful to spread the payments interest-free. The last payment is this month, so that will stop by the time I leave work at the end of the year.

For the short-term (ie: 2025) I’ll be keeping a limited sum for debt payment in the budget. If this / credit isn’t needed, it’ll be useful for savings or topping up a bill / pot elsewhere in the budget.

Whilst debt-free is always preferable, I do feel that access to credit may remain important for us, for at least a while. Interested in others’ thoughts on debt / credit in retirement as well. S&R x

Savvy_Sue

We had a slight cashflow emergency a year or so ago. The money was coming, but we'd miscalculated some timings on a big house bill. We've each got an ISA, but I really didn't want to disturb those, and I worked out that if we could get an interest free spending credit card and put everything on that, we could just about scrape through. And if anything went wrong (fortunately no pets to worry about) then there were savings which could be used if needed. 

It was close, but we managed it by maxing out the card. Obviously paying the minimum each month, and a bit more so that we didn't exceed the credit limit on it. Now fully settled, and it's still used a bit so we pay it off IN FULL each month now. 

However, we've each got our own interest free cards now, with a small credit limit. I'm finding them more difficult to manage for various reasons so I'm not sure I'll do it again - our income's quite a bit lower now so harder to get anything. But it means we are getting about £50 in interest each month which might otherwise be going on credit card bills ... 

Katiehound

I think if you want to increase your credit worthiness you each get a new (extra) CC. Only put a small spend on each and pay it off in full each month. Such a thing comes in handy if you need an extra DD for a bank switch deal. Don't forget things like that, one or 2 bank switches (not your main account) can give your savings a small boost.

Clowance

we have a virgin atlantic credit card for virgin miles, good bonus points but absolutely horrendous interest rate. I think the key is to pay off in full each month which we do.

Humboldt

Morning @ShyAndRetiring, I have just caught up with your thread and found it to be an informative read.  Despite us all having different budgets, opinions, lifestyles, etc, I like the fact that on this forum we can still learn from each other, and offer support and kindness. We all choose our own paths, but it's nice to have some assistance when heading off in a new direction. 

In terms of budgets, I find that there is no joy in comparison, but knowing that I have enough for our personal needs creates a sense of peace for me.   I had never heard of the term WIRE until I read it on your thread, but I feel very privileged to have been able to attain this, and whilst it takes some effort, it is so worth it. Thank you for taking the time to share your journey with us.

ShyAndRetiring

  

Thank you for the lovely and useful comments @Savvy_Sue@Katiehound @Clowance

I've never got on successfully with using the CC for spends then paying off in full each month (tried a bit of stoozing when on my mortgage-free quest and ended up with a bit of a debt-free quest too) so I definitely limit its use now to convenience-in-emergencies and additional protection on bigger spending only only. But I probably should make a bigger effort to pay that off more quickly.

I usually do bank switches twice a year and that's a good idea @Katiehound, to set up the CC dd on the account I'm likely to use for switching, I'll definitely try that down the line.

I appreciate the sensible advice all round, thank you, S&R x