Savings and the future

Rtj123

Looking for a bit of reassurance/ guidance as to whether I am doing ok at saving or not at my age. I’m 34, my partner and I rent a house. I’m self employed and she works full time. 

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. Over winter I’ve had to dip into my savings to keep afloat. Work has picked up again but it appears people are certainly tightening there belts at the moment.
i earn enough to get by, combined wages pays the rent and bills and we are able to go out for meals once in a while and have a holiday once a year. 

Since having to dip into my savings over winter, my total savings are now around 13k, with 12.5k locked away until June in a fixed rate ISA. The interest off this I plan to use to pay for my half of the holiday this year. I have no private pension, only a state pension which I have full years contributions since the age of 18. I’m finding it very hard to save at the moment, my wages just cover what I need to live and have a few days out etc. 
I’ve also been very good at managing my money but I’ve never had to use my savings to get by and that worries me slightly. I have assets, namely a classic car and classic motorbike which equate to around 16/17k combined. One vehicle also has a number plate valued at 3/4k which I intend to take off and sell should I need to. 

I’m just wondering what your thoughts are on my position at my age? Am I doing ok or should I try to be doing a lot more?
any guidance appreciated 

TheSpectator

Rtj123 said:

Looking for a bit of reassurance/ guidance as to whether I am doing ok at saving or not at my age. I’m 34, my partner and I rent a house. I’m self employed and she works full time. 

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. Over winter I’ve had to dip into my savings to keep afloat. Work has picked up again but it appears people are certainly tightening there belts at the moment.
i earn enough to get by, combined wages pays the rent and bills and we are able to go out for meals once in a while and have a holiday once a year. 

Since having to dip into my savings over winter, my total savings are now around 13k, with 12.5k locked away until June in a fixed rate ISA. The interest off this I plan to use to pay for my half of the holiday this year. I have no private pension, only a state pension which I have full years contributions since the age of 18. I’m finding it very hard to save at the moment, my wages just cover what I need to live and have a few days out etc. 
I’ve also been very good at managing my money but I’ve never had to use my savings to get by and that worries me slightly. I have assets, namely a classic car and classic motorbike which equate to around 16/17k combined. One vehicle also has a number plate valued at 3/4k which I intend to take off and sell should I need to. 

I’m just wondering what your thoughts are on my position at my age? Am I doing ok or should I try to be doing a lot more?
any guidance appreciated 

No pension provision at 34 isn't great but you do have a bit of time on your side.

Any reason why you are opting for ISA over pension. State pension age for someone of your age is 68, if you want to retire before then and have a decent income you really need to start pension saving asap.

Rtj123

TheSpectator said:

Rtj123 said:

Looking for a bit of reassurance/ guidance as to whether I am doing ok at saving or not at my age. I’m 34, my partner and I rent a house. I’m self employed and she works full time. 

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. Over winter I’ve had to dip into my savings to keep afloat. Work has picked up again but it appears people are certainly tightening there belts at the moment.
i earn enough to get by, combined wages pays the rent and bills and we are able to go out for meals once in a while and have a holiday once a year. 

Since having to dip into my savings over winter, my total savings are now around 13k, with 12.5k locked away until June in a fixed rate ISA. The interest off this I plan to use to pay for my half of the holiday this year. I have no private pension, only a state pension which I have full years contributions since the age of 18. I’m finding it very hard to save at the moment, my wages just cover what I need to live and have a few days out etc. 
I’ve also been very good at managing my money but I’ve never had to use my savings to get by and that worries me slightly. I have assets, namely a classic car and classic motorbike which equate to around 16/17k combined. One vehicle also has a number plate valued at 3/4k which I intend to take off and sell should I need to. 

I’m just wondering what your thoughts are on my position at my age? Am I doing ok or should I try to be doing a lot more?
any guidance appreciated 

No pension provision at 34 isn't great but you do have a bit of time on your side.

Any reason why you are opting for ISA over pension. State pension age for someone of your age is 68, if you want to retire before then and have a decent income you really need to start pension saving asap.

Thanks.
I've chosen an ISA purely because if the money is needed I can get to it. Is there such a thing as a pension where I can pay in (or not) as I please? Some months I might not be able to pay in as my wage may be down as I’m self employed. 

TheSpectator

Rtj123 said:

TheSpectator said:

Rtj123 said:

Looking for a bit of reassurance/ guidance as to whether I am doing ok at saving or not at my age. I’m 34, my partner and I rent a house. I’m self employed and she works full time. 

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. Over winter I’ve had to dip into my savings to keep afloat. Work has picked up again but it appears people are certainly tightening there belts at the moment.
i earn enough to get by, combined wages pays the rent and bills and we are able to go out for meals once in a while and have a holiday once a year. 

Since having to dip into my savings over winter, my total savings are now around 13k, with 12.5k locked away until June in a fixed rate ISA. The interest off this I plan to use to pay for my half of the holiday this year. I have no private pension, only a state pension which I have full years contributions since the age of 18. I’m finding it very hard to save at the moment, my wages just cover what I need to live and have a few days out etc. 
I’ve also been very good at managing my money but I’ve never had to use my savings to get by and that worries me slightly. I have assets, namely a classic car and classic motorbike which equate to around 16/17k combined. One vehicle also has a number plate valued at 3/4k which I intend to take off and sell should I need to. 

I’m just wondering what your thoughts are on my position at my age? Am I doing ok or should I try to be doing a lot more?
any guidance appreciated 

No pension provision at 34 isn't great but you do have a bit of time on your side.

Any reason why you are opting for ISA over pension. State pension age for someone of your age is 68, if you want to retire before then and have a decent income you really need to start pension saving asap.

Thanks.
I've chosen an ISA purely because if the money is needed I can get to it. Is there such a thing as a pension where I can pay in (or not) as I please? Some months I might not be able to pay in as my wage may be down as I’m self employed. 

Just about all personal pensions/SIPPs will allow you to make ad-hoc payments when you can afford to.

Mark_d

By the time I was your age I had been paying 20% of my salary in to a private pension each year.  Savings might have been similar to yours but I had also bought a small flat with a 97% mortgage.

What happens when you get to retirement, or are in an accident and left unable to work?  Do you think you could continue to afford renting, holidays and potentially high medical bills?

Other than pension I'm not much of a saver. But I figure this is ok because I know that ultimately my mortgage will be paid off and I've got a healthy pension.

Albermarle

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. 

Have you ever considered a change in your employment, or maybe some training to give you more skills?
Of all the possible financial things you can look at, by far the best one would be a higher and more stable income.

Rtj123

Albermarle said:

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. 

Have you ever considered a change in your employment, or maybe some training to give you more skills?
Of all the possible financial things you can look at, by far the best one would be a higher and more stable income.

Yes I have been thinking for a while to just get a job and go back to being employed. It would be much easier, but I love my job, love the freedom of being my own boss. Work doesn’t feel like work.

TheSpectator

Rtj123 said:

Albermarle said:

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. 

Have you ever considered a change in your employment, or maybe some training to give you more skills?
Of all the possible financial things you can look at, by far the best one would be a higher and more stable income.

Yes I have been thinking for a while to just get a job and go back to being employed. It would be much easier, but I love my job, love the freedom of being my own boss. Work doesn’t feel like work.

Which is all fine and well and if you are happy with your lifestyle then fair enough but bare in mind the full new state pension is currently £1000 per month - can you live on that alone.

Rtj123

TheSpectator said:

Rtj123 said:

Albermarle said:

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. 

Have you ever considered a change in your employment, or maybe some training to give you more skills?
Of all the possible financial things you can look at, by far the best one would be a higher and more stable income.

Yes I have been thinking for a while to just get a job and go back to being employed. It would be much easier, but I love my job, love the freedom of being my own boss. Work doesn’t feel like work.

Which is all fine and well and if you are happy with your lifestyle then fair enough but bear in mind the full new state pension is currently £1000 per month - can you live on that alone.

It would obviously be combined with my wife’s pensions also, I know a lot of things can happen before then though, obviously. I’m trying my best to increase my work at the moment. I might give myself a timescale to increase workload and then make the decision to start looking at other jobs.

Qyburn

You could start a private pension just now and feed in a little, just what you can spare. Remember it gets tax relief so if you put in £80 of your money, that adds £100 to the pension.

DRS1

Rtj123 said:

Albermarle said:

I have been self employed for 8 years now and have to say this last 12 months have been the hardest ever. 

Have you ever considered a change in your employment, or maybe some training to give you more skills?
Of all the possible financial things you can look at, by far the best one would be a higher and more stable income.

Yes I have been thinking for a while to just get a job and go back to being employed. It would be much easier, but I love my job, love the freedom of being my own boss. Work doesn’t feel like work.

That is pretty important.  Do not underestimate how important it is.  Try to make a go of it.