Spendy Wendy to Saver Savvy

foxgloves

It is certainly eye-opening when one realises just how many positives arise from living within one's means.
F

Suffolk_lass

Ah yes, the savings and investment thing. I taught myself. I am therefore no expert, but I made sure I understood the different legitimate schemes the Government offers and then how to participate in them to some degree. I also found that during the summer holidays, the online newspaper I subscribe to, publishes tables of things; the ten best Fund Managers (by cost and Performance), the ten best ETF, (how to balance your portfolio) and every time they used an expression I didn't understand, I researched its meaning. At least when I did my pre-retirement course with a work funded investment advisor, he told me he didn't think using them would add much to what I already had in place!

My top things for you to think about (for what they are worth) are based on Alvin Hall's and Martin Lewis' advice - do not pay more for your debt than you have to. Pay it down before saving (beyond EF) if the savings returns are lower than the debt cost (and for me, I used the interest I was paying on the mortgage as a measure, not the overall percentage; While £200k at 2% might seem lower, if it stops you saving because that £4k is all you could save, then pay it down to give you a real margin to save). With each debt that finished, I paid down the next thing faster.

Then I looked at a SIPP - I was a higher rate tax payer. Initially I paid more into my occupational pension, then I opened a SIPP - both helped legitimately lower the amount of tax I paid. After that it was ISA, and investment platform and fund charges (phew) and drawdown. More latterly, it is the balance between cash and investments, guilts and bonds versus equities.

We are not rich but are comfortable in our retirement. (Not enough to pay £50k for a cruise, without making a big dent, but pretty good, considering it was all a bit late, our LBM)

Spendywendywoo

@Suffolk_lass, thank you for sharing, this is really insightful - you’ve done fantastically. 

Could I ask how old you were when you had your LBM? I only ask as I was worried it was too late for us but the finance course is teaching us that it’s never too late, which is reassuring. 

I’ve been very quiet of late but I am busy focusing on the finance course, decluttering and building good habits. Finances are looking good and we are being a lot more mindful about the choices we are making, opting for cheap or free days our where possible - we’ve had a great few weeks fun wise 😀

Suffolk_lass

I think I was mid to late 40s when the penny dropped. I had always run things like savings and endowments but it was clearing debts and, the real habit that has lasted, is reducing what we spend. Just because shopping and buying "the best" of everything is something we can do, does not mean it is what we should do. I think that reducing our grocery shopping habit (buying the same things, week after week) and dropping a few premium brands, which I bought because I was, frankly, a snob, has made a lasting difference. 

We now buy the Morrisons Savers granola, for 50p/kilo less than their own brand, because MrSl doesn't care about the difference. And their cleaning products like bleach, scrubby things and cat litter. They all contribute to a small surplus in our account, which I Tilly tidy into the savings pot. I have become slack and lazy about moving it from there and we have over £6800 above our emergency pot in there for the moment. There is always room to improve though, if we are open to it.

My big thing is what I call my "smug filter". At least I now know I have it. It is that thing where I think "I've got this" and I start to cheat or slip to flat line coasting then falling back into bad habits. Diets, shopping, cleaning the house - they are the big things where it is obvious. Admin and study, more hidden.

Spendywendywoo

@Suffolk_lass, sounds like we are in a similar position as you were... I'm also mid 40s. 

Grocery shopping is certainly where I've managed to claw all the money I've put aside for 2025 future bills - covered all the expected expenditure for the year just in the first 3 months of the year and the remainder of the surplus is being used to save to pay the car off. There's certainly room for improvement still though. 

You're in a great position and I aspire to do the same

Spendywendywoo

This morning's win - a reduction of £14.78 on my car breakdown renewal quote. I tried the comparison sites last night and there were many very cheap quotes with a call out charge which boosted the total amount to a similar price to the renewal (obviously only if called out which would be classed as a saving if not called out but the difference in the renewal to the others was indifferent).  One call to my current provider and they knocked almost £15 off the renewal by matching their online price and no call out fee.  The renewal quote would have taken me over my budgeted and saved amount by £5.61 but now I have a £9.17 surplus which will be added to the car payment fund. 

I did query with the advisor on the phone why new customers get a better deal and why I have had to waste my time ringing (I didn't say that, I was a lot more professional) and she advised that it was to attract new customers...seems like an inefficient and non value add process to have current customers ring up each year - surely cheaper to just give the cheaper quote to all?? 

Anyway, not to complain as it's a win

Suffolk_lass

We use Brittannia Rescue for Breakdown insurance, as they cover the person in whatever vehicle, and you only need to detail specific vehicles for European cover. We now have direct experience of them as Mr Sl's motorbike broke down at a rally last year (engine management ignition management unit failed, so it was only firing on one cylinder) and they brought him and the bike home that night. And then our motorhome had a problem that drained the vehicle battery and they came out with a man-sized set of jump leads and started it for us so we could drive it to the garage to get the underlying issue resolved.

Spendywendywoo

Been very quiet on here but all for good reasons 😀. I’ve done some calculations this evening as yet another budgeting month starts tomorrow and I’ve just worked out that as long as I continue how I am and all planned earnings are earned, I’ll have just enough to pay off the car when the final payment is due (literally to the penny). I can then put that money (£400 per month) into an investment. 

I can’t believe that we were frittering away this money each month. We haven’t withdrawn any of our stocks and shares this year whereas we used to dip into them quite a bit. 

We’re in a really good place with this now, so glad I had my LBM. 

In other news, the decluttering is going well also - half the reason why I’ve been so quiet is because I’m exercising and decluttering too in the evenings, though didn’t do too much tonight, just a bit of cleaning as I haven’t slept well of late due to the heat during the night. 

Also, I’ve given up alcohol. For how long I don’t know but I’m feeling good for it. Still early days, and I wasn’t a very big drinker anyway Tbf, but many a bad decision re eating out was caused due to having a few wines. 

All in all a great start to the year, long may it continue 😀

Cara_

That's a very positive update

Suffolk_lass

Cara_ said:

That's a very positive update

It is, very positive. I think you could also look at Tilly Tidying - that's where you round up a payment out of your bank account (DD or debit card eg) to the next round figure you can afford (£n0 or £n00) scraping off the bits into a holding place and topping up your mortgage overpayments once a month in addition to the £200 you have planned as a set OP. We did this and it somehow paid off an extra £7000 over a few years.

I like the ring-fenced £400 for investment and would not change that, this TT is the virtual change dish where you empty your pockets. My experience was that I needed to feel poor of I got smug and started spending on carp