What do stoozers do with the money they gain?

deemy2004

Okay heres may plan as it is, take it or leave it 8), examples at the end.

The stoozed cash generates over 1k per year or £85 per month – So helps increase the % return on my portfolio as it is without ANY cost.

The plan

First New savings -
Most of my salary goes into my ‘savings’ (65%), first stop is the cahoot and websaver accounts in my wifes name. Then next stop is the fixed interest bonds, depending on what rates I can get upto the 92k limit (function of total gross estimated interest for a tax year / my wifes tax free allowance).

The balance is in ISA’s (usually filled at the start of the tax year), and TOISA’s, and a pep. With the pension fund and shares last on the list.

Maximising return on portfolio -
Now the plan is to work each month on increasing the % return on the portfolio, which is by moving money between maturing bonds savings, or stock investments and changing savings accounts.

So far it has been easy this year to up the average % return on the portfolio because of rising interest rates and a rising stock market (biased towards energy).

My strategy at this point is to lock into more fixed rate bonds as in a years time I think interest rates will be significantly lower than where they are now, to this end I am using stoozed cash, which I intend on repaying from future salary / interest earned from the portfolio. In addition I have been locking in high yeidling stocks and index linked bonds to a smaller degree both as direct investments and in the pension fund as I think these stocks will rise a little, and even if they don’t the 5-8% yield is pretty good !

So its simply using stoozed cash now to lock in fixed bonds maturing in 2+ years, repay the stoozed cash from future salary / returns. Since my expenditure is pretty fixed, each month the absolute value of the portfolio increases by approx 2% (excluding the value of the stoozed cash, which is treated as debt and needs to be subtracted for the value of the portfolio). The % return on the portfolio is also increasing i.e. being the annualised rate of return, towards the goal of the average % monthly return being higher than the amount I actually spend per month.

EXAMPLE FIGURES -

100k invested portfolio
5.5% Annualised rate of return – The overall annualised % return on all monies invested.
80k Net Portfolio size - i.e. net of CC debt.
2k Monthly increase – Includes the 5.5% on the invested portfolio + new savings i.e. salary

= Monthly return of £458, annual return on investments = £5.5k
= Annualised portfolio growth of 30% on the actual Net porfolio.

The figures would change each month as the size of the portfolio increases, thus the goal is for the monthly returns to exceed actual monthly spend, which would mean that effectively the whole of my salary is going into savings as the monthly rate of return exceeds the monthly spend. Not there yet, but getting closer each month

The greater the balance transfers the higher the monthly %, i.e. a jump from 20k to 30k (CC debt) would increase the monthly return in the example by £45.

Now I did say its posted as is

deemy2004

OK hands up - it's me (and husband but I do the stoozing)
To date I have £87.940.76   stoozed between cahoot

Makes you realise what a strange concept money is. Esp with all the electronic transactions - its more of an unseen energy whizzing around! :-/

Great going !

Go for the record 100k !

Exactly, with influx of stoozed cash into my portfolio, it gives less psychlogical value to the money and I thus percieve it more as a monthly game of upping the totals and % return.

Its like youve opened the tap and notes are gushing out

8)

Smitty

What are you going to do when you achieve you goal of investment return > then monthly spending Deemy? Do you have any plans as to what you'll spend your cash on? Or are you just happy looking at bank statements, which can be quite rewarding

smartsaver

Go for the record 100k !
Its like youve opened the tap and notes are gushing out

100k stoozed would be an achievement 8) I tend to pace myself with applications so won't be applying for any others for a while. Usually my credit limit on the cards increase - hence the stoozed cash

nearlyrich

I put mine in a high interest savings account. I only started this recently and I don't really need to spend it on anything I just like the idea of making 5% on someone elses money.

deemy2004

What are you going to do when you achieve you goal of investment return > then monthly spending Deemy? Do you have any plans as to what you'll spend your cash on? Or are you just happy looking at bank statements, which can be quite rewarding

I'm going to change my name to Ebinezer

It's my hobby, trying to up the %'s and totals every month towards the goal. Once I reach that goal, I'll set some new goal.

Sooner or later, i will have to look at property, i.e. switch new investments more to capital gains orientated products rather than income orientated investment products due to tax reasons. I.e. the 8k X 2 annual capital gains allowances. Though due to the experience of the last 4 years I will always be wary of equity investments / funds !

So roll on house price falls !

deemy2004

100k stoozed would be an achievement  8) I tend to pace myself with applications so won't be applying for any others for a while. Usually my credit limit on the cards increase - hence the stoozed cash  ;)

Do you close existing cards at the end of 0% period or keep them open on the chance of future offers ?

nh

How do you get on then when switching? ie. if you have £81k "debt", aren't companies reluctant to lend you any more, or are they OK as long as you are BTing? Do you mind if I ask how much you and your partner earn? Is there any other reason why you think they let you borrow that much?

I only have £12,000 stoozed but I am thinking it might be a good idea to get a couple more cards and get another £20-£30k stoozed as well. I have always been reluctant to apply for too many as I thought they turned you down when you have too many cards. I have three at the mo, including the one I use for monthly spending which I pay off every month. I was thinking I could definitely get a card from my bank (Lloyds) and morgage co (Nationwide) and maybe my partner could too (though we will be sure to set up direct debits this time - see other posts!). We could make an extra £500 in five/six months! I thought my target of £750 on the £12k in 15 months was good - it has never occured to me to try to get more and more to stooze...

My partner and I earn £80k between us, so do you think we could get more cards for stoozing, maybe another two each (we have two each at the mo)? How long did you wait between applications to different cards? Do you think it would be OK to apply for three credit cards in a month (I have already applied for a First Direct card this month)...

smartsaver

Do you close existing cards at the end of 0% period or keep them open on the chance of future offers?

I call up and ask for any further offers. If none are forthcoming I close the account. Halifax (not one card), LloydsTSB, MBNA have all offered us further deals after the account has been paid off in full.

How do you get on then when switching? ie. if you have £81k "debt", aren't companies reluctant to lend you any more, or are they OK as long as you are BTing? Do you mind if I ask how much you and your partner earn? ....

My partner and I earn £80k between us, so do you think we could get more cards for stoozing, maybe another two each (we have two each at the mo)? How long did you wait between applications to different cards? Do you think it would be OK to apply for three credit cards in a month (I have already applied for a First Direct card this month)...

We earn less than 80k.. Around a joint 55k last year with my p/t contribution at around 12k. Doesn't seem to put them off though ::) I never miss a payment. Often when I/we apply for a new card the limit gets higher. LloydsTSB have given me and husband 15k each for year ;D ;D I would apply for 2 cards a month but no more. If I get a rejection I wait until I have closed a card before applying for another.

We have a mortgage that we have not defaulted on, lived at same address 12 years.. Other than that I don't know. I have 6 stoozing cards, husband currently has 5. I have an Abbey cashback for everyday paid in full at the end of the month and a Nationwide cashback for abroad....

nh

Hi Smartsaver

I am on the way to being you!

I have a Morgan Stanley cashback card (1% on first £1k then 0.5%) which I pay off every month and a Nationwide flexaccount for use abroad.

I have about £8k on MBNA and Mint for stoozing, then my fiance has £10k, but we only have £12k of that in high-interest accounts (M&S ISAs) and we have the rest in a First Direct account to pay back the monthly minimum. But I have just applied to ING for a savings account so all the money is going in there apart from the exact amounts needed to repay the minimum!

I got a bit carried away yesterday and applied for Nationwide (paltry £1k limit and we have a £160k mortgage with them!), Virgin and Lloyds, and I'd applied for Texaco the night before and First Direct that morning! Oh well, if we get refused we get refused, if you don't ask you don't get! I'll not apply for any more for a bit though even if they are all approved.

In that respect, am I likely to get turned down just because I have applied for four/five cards at the same time? What I mean is, how will each company know I have applied to the others. The searches won't show up on my credit file yet. I know Texaco are also Lloyds so I suppose they will share that info, but other than that, say, will Virgin know that I have also applied to First Direct? I can't see how...