Savings in an Absolute Mess

ManyWays

Sell the jewellery and enough of the bonds to clear the debts. Then cancel those cards, as going forward you have to live within your income: if you find yourself needing a credit card you have to reduce some of those expense lines instead.

If you are living within your income, it's up to you if you want to spend that much on clothes, beauty, holidays and entertainment etc. Personally I would prefer much bigger pension contributions. But that is your choice.

RAS

I'd query life and other insurance? You appear to be single and don't appear to anywhere near IHT liabilities. That money would be much more valuable as pensions funds.

LondonZ17

https://forums.moneysavingexpert.com/discussion/comment/82064946#Comment_82064946

Thanks for advice. Life insurance is in fact income protection insurance. The other one is Vitality Health insurance, in case anything happens. I use a lot of the discounts throughout the year.

LondonZ17

https://forums.moneysavingexpert.com/discussion/comment/82064936#Comment_82064936

I would also much prefer to increase my contributions…I keep trying to think of ways to keep these costs down.

Thanks, will sell a good chunk of the jewellery and won't ever use credit again!

Smudgeismydog

Thanks for posting your SOA

You are currently renting, do you want to buy a property at some point? Or do you believe you will be renting in retirement?

I appreciate what you have said about the environment you work in, and that appearances count, but £310 per month on hairdressing/beauty treatments is huge!
Revisiting the budget of £350pm on holidays and entertainment, and monthly clothing allowance of £140, might also be sensible.

This really comes down to what you want to achieve. If it’s long term financial security, i.e. buying a house and building your retirement pot, then it will mean taking a very different approach of delayed gratification.

LondonZ17

https://forums.moneysavingexpert.com/discussion/comment/82065629#Comment_82065629

Thanks!

I don't mind renting all my life. I have no one to leave a flat to, am happy in a small flat, and renting makes far more sense. Yes, delayed gratification is the answer! I must work on that. I will just have to go through every expense and see what I can cut down.

Smudgeismydog

Ok, so knowing you will be paying rent through retirement means your pension provision is even more important.

I’m 52, and a few years back felt very conscious of my grey coming through and would use touch up root spray religiously. However, like many of my friends (and a growing number of celebrities), now fully embrace my natural colour, and honestly my confidence is so much higher. In fact I look back at pictures, and think how unnatural my hair colour looked. However, I do accept this is a very personal decision.

Have you also considered buying (and selling) clothes on Vinted? You can buy gorgeous new or pre loved quality clothes at a fraction of the cost.

You are doing this for your future self, to give yourself choice. Choice about when to drop a day (or two) from work, or the option to step into a lower paid, less stressful role, and ultimately choice about when to retire. Even if you don’t have fancy round the world cruise plans for retirement, a decent pension pot will be needed to supplement the state pension if you are paying rent throughout.

Sncjw

if the gold is just sitting there gathering dust then sell it. You are not using it, its not giving you joy anymore and it may cover a large chunk of the debt. I am saying this in case you dont get the value you want.

being debt free will help your mind and you can build up some cash savings in case you have any emergencies.

i echo the haircuts is really expensive but so is the groceries for one person. My husband and I spend 300 a month between us both. I would keep the monye in premium bonds as likely you may be touching the risk of paying tax on interest if you move it to a bank savings account. Although I am curious if you have been putting money in premium bonds whilst you were carrying a debt?

Also the pension have you looked at how much that would give you to live on each year or month?

LondonZ17

https://forums.moneysavingexpert.com/discussion/comment/82066299#Comment_82066299

That's so great that you pay only £300 in groceries for two people! I buy lots of fruit and veg and try to not eat too much meat so that restricts the easy food I could make. I do rely too much on some things that are more expensive, and could cook in batches more…

Yes, the Premium Bonds while being in debt is part of my gambling mentality, unfortunately. Whenever I got a chunk of money, I would put it there instead of paying my debt, in the hope I would win one of the big prizes. Even now, I prefer to sell off most of my jewellery rather than empty my PB!

I looked at the pension at one point, but it was more the general figures. I must now look to see exactly how much I will have to live on every month and it will make it easier to visualise. Thanks for the advice!

LondonZ17

@Smudgeismydog, it's great to know that embracing your natural colour made you more confident. I am so, so tempted. I would love to focus on the other things I am good at and which bring me lots of contentment. I feel I am sacrificing so much money and future freedom to not disappoint quite a few people, who would be horrified if I went grey. Other times, I'm happy to look good (the hair colour does suit me) but it's got to the point where I feel I need to make a decision about what is more important.

Probably the middle ground for now, cutting all my costs, adding cheaper beauty products to the mix and delaying haircuts and highlights will be the best option…

I've been on Vinted a bit and on Ebay for decades. I'm sick of selling on it, it's one of the things I want to cut out of my life so that I'm not always hustling! I did used to buy tons of second-hand clothes online but can no longer be bothered, unless it's in charity shops. I now kind of make a big shop in spring and winter of things I need to replace. Kind of boring, basics which I can liven up with the more interesting charity shop items…