My 5 year plan

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  • fatrab
    fatrab Posts: 1,231 Forumite
    Interesting to see the percentages of spends and what they are on.


    I find them very good for holding myself to account on where the money is going. In an ideal world there would only be fuel & weekly shopping so that's a little mini goal to try and achieve within the plan.


    Definitely no planned clothes spend this year, absolute essentials only. I have a lot of clothes from when I was down to 15st a few years ago so they'll fit me soon. I'm sure they'll be back in fashion at some point too :rotfl:


    I'm looking forward to taking my foot off the gas once the mortgage is clear, semi-retirement around 50 sounds like an amazing place for me to aim for with early-ish retirement planned by 60.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • JoJoC
    JoJoC Posts: 1,836 Forumite
    What a goal to have :)

    Do you know, I've really not thought about retirement (other than having a pension that I have been paying into for the last approx 10 years) but the thought of being semi-retired around 50 and retirement at 60 sounds unbelievable! What a position to be in :)

    Ultimately I think that'd be an achieveable goal for us - 20 years until I'm 50 and 18 until hubby is 50 so really, we have time on our side.

    Thanks for the inspiration - think i'm going to explore this idea more.
    CC1: £4481.14/ £5031.14 (12% paid off, £600) | CC2:£3307/ £3807 (14.4% paid off, £550) | Loan: £10,528.20/ £15,792.30((33% paid off, £5,264))

    July debt total: £24,630.44 | New debt total: £18,316.34 | Total debt paid: £6,414.10 (26%)
    *My debt busting and savings diary*
  • fatrab
    fatrab Posts: 1,231 Forumite
    edited 25 January 2018 at 7:04AM
    Sorry diary, for not updating you yesterday. My hand was numb from the operation and even trying to use the laptop with my left hand, one-fingered, was near impossible!


    I have been suffering from a condition called trigger finger of the middle finger on my right hand, basically the finger locks in the closed position due to the tendon not moving properly. Recovery should be around 6 weeks but I can already feel the finger moving more freely this morning which is positive.


    Yesterday was a spend day - £4.50 for the bus ticket to and from hospital. I didn't want my wife to be up early to take me or to be hanging around the hospital with the baby waiting on me so thought best to get the bus.


    Today and tomorrow should be NSD's as we have plenty of food. Mrs fatrab went and got a few things yesterday (£10.51) from discount supermarket which means our next big shop will be Saturday.


    Today is, however, the day I will be paying HMRC. I'm not classing that as a "spend". It's a payment. A payment that was, annoyingly, not in my initial plan and effectively sets everything back by 1 month. I may look at other ways in which to "earn" an extra £50-£100 per month towards debt payment to offset this set-back. I desperately want to keep my 5 year plan on schedule.


    Next post will be after HMRC is paid :)


    edit: Went online and paid it straight away. No messing around!
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • fatrab
    fatrab Posts: 1,231 Forumite
    HMRC - £1017.60 - paid - 25/1/2018
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • fatrab
    fatrab Posts: 1,231 Forumite
    edited 25 January 2018 at 7:03AM
    JoJoC wrote: »
    What a goal to have :)

    Do you know, I've really not thought about retirement (other than having a pension that I have been paying into for the last approx 10 years) but the thought of being semi-retired around 50 and retirement at 60 sounds unbelievable! What a position to be in :)

    Ultimately I think that'd be an achieveable goal for us - 20 years until I'm 50 and 18 until hubby is 50 so really, we have time on our side.

    Thanks for the inspiration - think i'm going to explore this idea more.
    I'd read somewhere that you should calculate how much you need for a decent private pension as half of your age as a percentage of your salary. So if you're 30 and plan on working until you're 68 then 15%. If you want to retire early then you add the number of years to your age and halve it.


    So if you want to retire at 60, that's 8 years early - (30+8)/2 = 19 (percent)


    19% seems a lot but if you have an employer contribution scheme available you might find your contribution is considerably less.


    Since you started your's at 20, and I'm assuming you pay 10%, then you've already got a good start.
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • Storm89
    Storm89 Posts: 592 Forumite
    Hey :) brilliant about HMRC payment. I can see what you mean about it setting back your plan , once you have something in your mind it's annoying if it goes off track even slightly. It's only set you back a month though which is great really. Hope your finger starts to feel even better as the weeks go on x
  • Storm89
    Storm89 Posts: 592 Forumite
    Oh my gosh I arent thinking about paying off the mortgage or retirement just yet myself but think it's a really good idea for the future for us and jojo good to think ahead.
    We are in a bit of a unique situation in that we bought our house young (used student loans for deposit so we were obviously more sensible then) & also had our children young (I was 19 when pregnant with our first) so when we are in our early 40s our kids will be grown up and our mortgage is due to be paid off early 50s. My husband is in the public sector so actually has a really good pension. We do lose a lot of his income to the pension but will be worth it in the long run. I'm personally not thinking about anything like that until the kids are grown up & once we're out of Debt will be enjoying treating the kids. Once we are in our 40s though will probably start putting a bit more aside for retirement. I'm 27 so feels so odd talking about retirement lol.
  • JoJoC
    JoJoC Posts: 1,836 Forumite
    Interesting calculations Rab! So am I reading that right- I should be paying in 19% of my salary to my pension right now or I should aim for my retirement pot to provide me with 19% of my current salary?

    This stuff isn't really my forte...

    I only pay in 5% of my (relatively decent) salary to my pension at the moment and I wasn't paying for 1 year when I was on maternity leave (just couldnt afford to). My employer matches my contribution up to 5% so I'm getting the maximum from them right now.

    We are in the most expensive years of our lives at the moment with sky high childcare so I'm not worried about maxing my pension contributions at the moment but in my head the plan is to focus on:

    1. Paying off the debt
    2. Getting the house how we want it (new Windows, doors, kitchen, bathrooms, some building work.etc)
    3. Pay down mortgage
    4. Pay much more into pension and save for retirement.

    It's also worth noting that we have a flat which is being rented out right now which has about £20k equity right now. Our plan is to pay that down (without overpayments it's due to be paid off 2039 when I'll be 50) so we are hoping to keep that on and use it as a pension .

    Sorry to gatecrash your diary!
    CC1: £4481.14/ £5031.14 (12% paid off, £600) | CC2:£3307/ £3807 (14.4% paid off, £550) | Loan: £10,528.20/ £15,792.30((33% paid off, £5,264))

    July debt total: £24,630.44 | New debt total: £18,316.34 | Total debt paid: £6,414.10 (26%)
    *My debt busting and savings diary*
  • Storm89
    Storm89 Posts: 592 Forumite
    That's really good having the flat ,I'd love to do something like that too to live off it as part of a pension. 50 is still really young when it's paid off too xx
  • JoJoC
    JoJoC Posts: 1,836 Forumite
    That's our plan Storm, and for now it's fairly easily rented out (its never been empty more than 3 months) but it does mean that when it's empty we need to pay for two mortgages. In theory that's affordable for us to do, but long-term it wouldn't be as, of course, we want to use our disposable income to do up the house that we live in, not to cover the mortgage of the house that we don't live in. So we'll take it as it comes. If we are able to keep it on and sell it when/ before we retire then that'll be a massive boost to out retirement/ savings.

    Our mortgage is around £150k for our current house so that'll take some paying down to get it to zero. The good news is that we're not planning on moving again, we don't need to upsize and we're done having a family so I think things should only get financially easier as we go on. Touch wood!
    CC1: £4481.14/ £5031.14 (12% paid off, £600) | CC2:£3307/ £3807 (14.4% paid off, £550) | Loan: £10,528.20/ £15,792.30((33% paid off, £5,264))

    July debt total: £24,630.44 | New debt total: £18,316.34 | Total debt paid: £6,414.10 (26%)
    *My debt busting and savings diary*
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