Turning Straw into Gold: Creating Long Term Security & A Solid Home

MillQueen

https://forums.moneysavingexpert.com/discussion/comment/82055250#Comment_82055250

When I see my friend at the weekend, if we end up going for food, I'm asking for tap water 🤣

I have updated my signature now and my net wealth has gone down, but that's only because I had to take some of the roof money out of my savings account where I was storing it, to pay the contractors. Should be able to start building all of this back up again now. I have torn a muscle in my calf, which means I won't be able to get my money's worth out of the gym for a few weeks, but also that I won't be able to do much that involves spending money either. I just need to hunker down for a bit and get lots of sleep. I made myself some life algorithms and stuck them on a cupboard door in the kitchen to remind of my priorities.

I think a lot of wealth building is just not spending.

foxgloves

Yes, I think not spending is a big part of it. Back in my Spendy Decades, I never bought designer gear, swish cars, expensive foreign holidays, etc, I simply spent too much consistently. I've said before in my old diary on here how very easy it is to spend £50 on a 'want'. Do that 4 times a week for £200 gone with barely a thought & that's getting on for £1000 a month, particularly as many unbudgeted 'wants'...things for my home, garden, nice skincare, sale rail stuff masquerading as bargains, etc, would regularly be between £50 & £100. It all adds up & that's the problem. We came to the LBM moment later than many (early 40s for me) & I spent the next year or so working on a budgeting system which worked for us, which has since been tweaked & refined & includes regular savings. I am just glad that we finally came to our senses where money is concerned as I rather think that without this seismic change of attitude, we would now be approaching retirement with debts instead of savings. I think this will be the case for many of my cohort as we came of age in the 1980s when a huge boom in consumerism was then aided & abetted a little later by making it extremely easy to borrow money.

MillQueen

https://forums.moneysavingexpert.com/discussion/comment/82055577#Comment_82055577

I just saw something that said "if you don't respect small money, you'll never see big money".

foxgloves

@MillQueen - That is something I should have had tattooed across my body from 1983 onwards!! Yes, it essentially means that constantly frittering will ensure that we never get to see those healthy numbers in our bank accounts & the feeling of greater security they provide. The amount of each 'fritter' may be relatively small, but it's the regularity that creates debt, just as making a habit of small regular savings can build a tidy sum. It's not the amount, it's the fact that it becomes a regular positive habit. We have seen that with a Regular Savings account opened by Mr F a few years ago. He'd never had a savings account before & seeing how it has grown each year when we go into the Building Society to have that year's pay-ins added to the passbook plus the interest & bonus (for not withdrawing any) really amazes him. I said, yes, that's what it looks like when you are regularly ADDING to a modest starting sum of money over several years, rather than doing the reverse & spending it all in Fopp & HMV!

MillQueen

I popped to Asda on the way home and spent a tenner in the yellow sticker section. I got melon slices, protein yoghurt, edamame and broccolli stir fry, 2 x tins of sardines, chocolate slices, 15 eggs, blueberries, red onions, protein bagel thins, asparagus, pitta breads. Need to cook the stir fry tomorrow as it won't stay fresh for long. The parsnips I had from the freezer weren't looking good, so I had to throw those away. I can feel the motivation to prepare food leaving my body, so it might have to be basic things for a few days.

@foxgloves, little bits saved here and there really do help. I must have developed that mindset now as I was quite irritated in the supermarket earlier when I had to buy a bag, as I had forgotten to bring my tote bags from the car. Frugally, I rescued these at work, as they were giving away loads of free stuff with the company logo as it's changing in some minuscule way that has left all the branded goods outdated now, so I took the opportunity to get a few fabric bags to keep in the back of the car to use for shopping. I like your stories about you and Mr F, as you have started off small and gradually built up a good life with all this.

It's turned out that I don't have to go and see my friend at the weekend after all (is it bad that I am glad about it - not that I didn't want to see her, but the cost of 3 hours of travel, and parking, and coffee or food or whatever wasn't something I was looking forward to). She has a family commitment so we said we will catch up online instead. I am going to make one of my caramel latte sachet drinks and have that while I speak to her from the comfort of my home. It feels oddly more like a treat than the meeting up version and the cost is less than 50p.

MillQueen

I am working at home today as I have a leg injury so it's easier not to walk or drive for a few days. A bonus is that this will also save me the £7 or so that I would have spent on petrol. I still have some of the vegetarian sausage and bean thing I made the other day for lunch, and the yellow sticker stir fry (22p!!) for tea, so this can be a no spend day. I am going to drink a lot of water and see if it helps increase my energy😴.

MillQueen

I've been doing my spreadsheet and have moved over £13.72 to round down my energy bill to the next £50, as I am still quite far into negative figures. There's not a lot to play around with this month as I am trying to pay off my overdraft from last month and stay out of that again. I don't like the way within 1 week of pay day most of my money is gone as all the bills come out and then it's 3 weeks of trying to survive on what's left. I am going to make a point to see this as a fun game of keeping as much of my money as possible rather than it feeling like a chore, as I think the latter mindset is contributing to my tiredness and things feeling a struggle.

I have gained £5 in interest on my emergency funds. It would have been more but I lost the bonus payment this month as I had to withdraw the large sum for paying the roofer, so I can now go back to not using this and just letting the interest build up, maybe even paying in £20 or so here and there. I can't wait until I get some energy back and can start doing more self-employed work again. I am giving myself 2 months off that and will reassess during September whether I am doing ok enough with managing this burnout to do more. It feels hard to do even small tasks at the minute and I am trying to just stay afloat at work.

I have made a list of things I would need if I do get a lodger in the future, although this is off the cards for the foreseeable future due to personal circumstances and the uncertainty or whether I will stay in this location for the long term. Originally I planned for 2 lodgers but the other lodger room has some issues with the flooring, so I think that would have to be a future project if I was here for longer, as the floor boards and joists feel like they are about to give up, so the other room wouldn't be suitable for rental without a lot of expenditure. I am writing this down here so I can muse on whether to start trying to gradually build these things up (hard when there isn't even enough left for one of these each month) or whether to put this off for the future.

• Wardrobe: £269
• Sofa & Removal: £600
• TV: £200
• TV Licence: £180
• Netflix: £71.88
• Curtain & Curtain Pole/Blinds: £100
• Light Fittings: £200
• Mattress: £200
• Mattress Protector: £20
• Microwave: £50
• Dehumidifier: £100
• Towel Shelf: £60
• Pots and Pans: £50
• Council Tax Increase: £600
• Total: £2,700.88

ellenvan

Um that's quite a lot of expenditure for a lodger. Can I ask how much you would estimate your income from a lodger to be?

MillQueen

@ellenvan, some of it's just things where I need to upgrade things in the house, like using one saucepan for everything, eating leftovers cold with no microwave, putting my towel on the bathroom floor etc is fine when it's just me, but having someone else would mean I would have to make the place more civilised. I don't watch TV myself so have never owned one, but there would be an expectation for a lodger to have access to that, so I would need to get one. It would be £600 a month for them to pay, with all their bills included. Some is things I don't already have like the mattress and wardrobe that would be a one time expenditure. I gradually collected other things like a bedframe and chest of drawers and desk from charity shops and marketplace. The plan was to have two lodgers, but I think one would be all that was possible, maybe not even that until next year, as I have some other things going on that need attention.

ellenvan

Right thanks for the additional information.

Some of the things could definitely be bought gradually. I volunteer in a charity shop and we had some lovely unused saucepans donated this afternoon. Also maybe a second hand wardrobe?

Maybe the TV and licence out of first month's rent.

But yes I see you need extra capital to proceed.

You probably have thought about ideas to raise capital. Some examples you maybe haven't tried yet

A) bank switch offers , MSE email had a few good ones

B) cashback - you could accumulate

Apologies if you already do these.