Statement of intent

StuartGMC

Quite a few requests for my household budgeting spreadsheet received in the last few days; another sign of the increasing membership of the MFW :T

Good luck to you all in using it, do let me know how you get on, once over the initial "shock" when you opened it

Lunar_Eclipse

StuartGMC wrote: »

I've just seen this item on the BBC:
http://news.bbc.co.uk/1/hi/business/7685757.stm

Doesn't bode well for those of us hoping to go early. I'm at the age (44 in March 09) where state retirement is now 67, so it is going to be a challenge to accommodate actuarial reduction of 4% per year for each year before 65 on my final salary scheme and the gap then to the state pension "topping up". That assumes of course that I remain at the company for another 20 or so years.....

What are your plans for your age to retire?
I've not pinned down a specific age, but would like to do so early if viable, whilst 60 would be nice, I think this may be very dependent upon the funds we can build before then.

And will be 68 by the time you (we) retire. [STRIKE]Depressing[/STRIKE] informative article link thanks.:)

DH & I are 37. He's already suicidal at the prospect of working to 50. So I'm giving this some serious thought over the coming weeks to modify the plan for 2009.

In all seriousness, financial necessity aside as I know we all need money to live, I really can't see 68 being possible. Just how would we keep going? How do you get out of bed and onto the humdrum treadmill of life for that long? Or does it get easier once the kids are off at uni and then flown the nest do you think?

SmlSave

Good luck to you all in using it, do let me know how you get on, once over the initial "shock" when you opened it

All the pretty colours and notes did panick me when I first opened it! :rotfl:

I've adapted it a little and get on fine, as long as I keep it updated :rolleyes:

StuartGMC

SmlSave wrote: »

All the pretty colours and notes did panick me when I first opened it! :rotfl:

I've adapted it a little and get on fine, as long as I keep it updated :rolleyes:

Smlsave, glad to hear the shock wasn't overwhelming!
Yes, the updating is the key. I save copies off each month, so in theory can then look back over previous months/years to gauge progress etc.

Nice to know it's helping :A

StuartGMC

Lunar_Eclipse wrote: »

In all seriousness, financial necessity aside as I know we all need money to live, I really can't see 68 being possible. Just how would we keep going? How do you get out of bed and onto the humdrum treadmill of life for that long? Or does it get easier once the kids are off at uni and then flown the nest do you think?

I think there is need to have goals along the way. I have always since graduating had goals at 3-5yrs for career and other aspirations plus "ideas" for 10yrs out. I have a "formal" review due for the 3yr period next March which coincides with 3yrs in my role as a Manager. I've worked at 3 companies since 1987, but the same one since 1992. I have had about 5 different roles in the latter alone, and some options now, although these are becoming fewer as I [strike]climb[/strike] crawl up the ladder - just two steps away from a Director's post, but plenty of others looking there too!

I think you have to move roles otherwise you become stale and motivation can decrease as you noted in the concerns you express above. You also need to sometimes move out of your comfort zone to develop new skills which you can then add to your exising skills and demonstrate to your employer that they make you more valuable and perhaps "unique" (and don't hold back from letting clients / competititors know too )

As per my thread, I have some specific goals and some aspirations; I don't think I'll be doing the same role in 10yrs time (in fact I know), but MF and then with enough money to cover dd's needs at University (or whatever) we at least can make a decision to drop down to part-time, or do charity work etc might be an option to get more life-work balance while health permits. Alternative might be to act as a consultant then, thus choosing when and where to work.... choices, choices....

Too early to tell but I do know I am held strongly by the final salary pension scheme at the Co and loss of 4% per year each year before 65, i.e. 20% loss at 60 :eek:

So obviously later plans will focus on mitigating this loss if I want to go early, although I already have an annuity paying from my 60th from the previous employer's pension when it went bust. Not massive by then but if I had it now it would be 13.5% of my net income per year, so you can see this would balance 3yrs losses (and pension is guaranteed to rise 3% pa). Perhaps it'll mean I can go at 63 without impact, then all I need to do is get enough in place to go earlier.

This will be part of the plan developed in detail 2015 when I am 50 :eek::eek::eek: and when dd is then leaving schooling in 2016 to do "whatever" as they say!

Lunar_Eclipse

All good stuff Stuart. It makes perfect sense, but DH & I just can't get excited about working so have stopped planning this area of our lives. I'm just up for retirement wanderlust again. And having fun with the children.

Work is a means to an end as opposed to a means within itself. But you're right. I'm going to set financial goals which effectively are work related, but based on saving/investing for retirement/holiday/education purposes. Part of which is getting rid of the mortgage of course.

StuartGMC

Lunar Eclipse, don't get me wrong; I work long hours but it is definitely to fund everything else although I think my staff may not see that, I am heavily involved in community voluntary things at home etc. However the key word is "goals", without them it's too easy to drift, and whilst we can't control every aspect of the job, it can be "reinvigorating" if you take on a new role etc even against the background of "life".

You spend many hours at work and I found in my first job (R&D with British Gas) that if you don't enjoy the job/people it can really impact on your whole life; I moved jobs to follow the specific technology area I wanted even though I didn't get much of a pay rise, which at 24 was a valuable lesson and one that has stuck with me since!

In summary, balance in everything where you can and act on things which are not working or affecting you negatively.

Christina_F

First time poster on your thread! Just wanted to say thank you for your budget spreadsheet. Havent had much time to look at it yet but hope to over the weekend! Looks a bit complicated though!

StuartGMC

Christina
If you populate the income sheet first, then to the outgoings and do your monthly direct debits initially, I think you'll soon see how it pulls together.
Good luck!
Stuart

StuartGMC

OH was paid today and her overtime came in at £330 net :j:j:j
(How I wish I could get overtime :rolleyes: )
So extra cash this month is £518 with the repayments from ScottishPower. We'll take some from this for dd's birthday plus the Christmas expenditure. This should mean we then have a nice amount remaining in current a/c in December and in January to move to across to the offset saving (holding fund). Also hope of news of the deferred pay rise during this month which will apply from 1 January 2009 - a long wait since June 2007.... but I know others out there are facing much worse situations.

Anyway, dropped in the additional £200 OP to the mortgage so it is now £21103.30 remaining. Interest will be charged on Monday, but it should only be about £40 for this month, maybe lower :rolleyes:

If the latest interest rate cut was applied to the mortgage now, whilst we offset 68%, then the equivalent interest rate would be 1.91% :j:j:j:j

Can't wait until my pay day and then the 1 Dec when the new mortgage rate will apply!