Disposable income

Fusion said:
You should step things up a gear, too much of this sort of thing comes across from you :)
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Yes, I could go to the hassle of sorting a passport, but I'm not likely to use it any time soon hence the can't be arsed point. Trust me, if I needed one I'd get it sorted no problem, I don't have any trouble getting things done that need doing, it's the rest of 50/50 stuff that gets chucked on the can't be arsed pile.
 
Always makes sense to overpay anything that's costing you interest to clear debts first and foremost. Then save as much as you comfortably can in high interest accounts (current and monthly savers) as well as making the maximum contribution to your pension. After that it's a question of ISAs vs investing depending on how risk averse you are.

If my plan goes as scheduled, I'll be free of short term debt by next year whilst still comfortably overpaying my mortage (by more than three times) and making my full contribution to my pension (which is more than doubled by my employer). Should see me debt free before I'm 35, although we'll probably look at buying another property then.
 
If you have a mortgage overpay it, if you don't get one of the deposit saving accounts where the government tops up your contributions.
 
malachi said:
Just don't be that person who sits on a load of money just for the sake of it and have nothing to show for it. My best friend does this and he is a miserable as sin yet he has over 40k "saved" in the bank.
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Yea this is very true. I have savings but I also go on holiday 3-4 times a year and until a week ago had a car that was a horrendous waste of money so I’m far from that person.

I do go through periods of being more sensible from time to time though and I wouldn’t ever just look for something to spend money on for the sake of it
 
i have a 35 year mortgage, 20% equity ownership, 20% HTB ownership.

5 years fixed @ 2.09%

Mortgage is 700.
HTB saving is £500.
Saving £250 ontop of it.
Rest is spent on car / lease / bills

After 5 years, pending on prices staying the same, I should have the ability to retain that 10% HTB ownership. Plan in year 5 is to rent out the flat, if needs be, to make up that other 10% ownership. any shortfall in the effort to retain the other 10% will be made from the additional 250£ a month fund.

all in all - in 5 years time, if things goes to plan, not that they ever do! - I should have paid roughly 5% of my mortgage off, thereby retaining a 45% Equity share for when i remortgage sometime in 2022/2023 at a LTV of 55-60%

good plan?
 
AKAK said:
If you have a mortgage overpay it, if you don't get one of the deposit saving accounts where the government tops up your contributions.
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No mortgage or debt, just rent and living expenses. Not heard of those government schemes you mention, will look into it cheers.
 
Deus Ex said:
No they don't mate, this is the UK not Rwanda, life expectancy is high. Sure there are a few very unlucky people, but most people will be living into there 80s if they aren't morbidly obese or a smoker. I'd rather risk leaving some cash to my family then slogging my guts out at work at 67 because I didn't save in my 20s to retire early.
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I had two friends drop dead in their 30's they both looked after themselves.
 
I'd put £100 more in your pension per month. Drop dead tomorrow maybe but if you don't and all you have to show for it are 30 year old games and some comics then that won't give you enough to enjoy retirement.

That or hookers and blow.
 
We paid our mortgage off 12 months ago and have just saved spare money each month. We spent that time thinking about what to do, and ended up buying a holiday home. It means another 10 years or so of mortgage, but we'll be no worse off than when we were paying off the original mortgage a year ago. With a few good rents in the peak seasons it'll hopefully turn out to be a reasonable source of income (and family holidays) to complement pension savings.
 
The_Abyss said:
We paid our mortgage off 12 months ago and have just saved spare money each month. We spent that time thinking about what to do, and ended up buying a holiday home. It means another 10 years or so of mortgage, but we'll be no worse off than when we were paying off the original mortgage a year ago. With a few good rents in the peak seasons it'll hopefully turn out to be a reasonable source of income (and family holidays) to complement pension savings.
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i considered this after paying mortgage off for about 10 seconds then thought , why not live where we go on holiday










































The_Abyss said:
We paid our mortgage off 12 months ago and have just saved spare money each month. We spent that time thinking about what to do, and ended up buying a holiday home. It means another 10 years or so of mortgage, but we'll be no worse off than when we were paying off the original mortgage a year ago. With a few good rents in the peak seasons it'll hopefully turn out to be a reasonable source of income (and family holidays) to complement pension savings.
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Only home I'll ever own is if I inherit one, so no mortgage to overpay, although that does seem like the best use for it and can totally agree with people who chose that route.
 
Save for retirement. I did in my 20's, and sooo pleased now. put as much as u can afford away in your 20's, compound interest over 20+ years is a miracle.
 
Anyone got any recommendations for the best private pension scheme? Also, how much do most of you put into your pension from your salary?
 
It's obvious mate. Buy crypto :p.
Seriously, save it up for future, invest it if feeling more adventurous. An example, open ISA, setup a DD each money to pay into the ISA and immediately invest in a fund or two, with low charges. Pay into the same funds for a while to build up your holdings. There are minimums but from memory £50 or £100 usually for each fund. Benefit of funds is that your small sums will be invested across many companies, something you cant do yourself with small amounts, and also gives you access to markets you wouldn't be able to access otherwise (such as China, Japan etc). Example below I've just randomly pulled up:
www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/first-state-greater-china-growth-class-b-accumulation/fund-analysis
Like with any investments there are lower risk and higher risk options and varying level of charges (tracker funds are usually the cheapest). And investments should be for the long term.

When I talk to others about investing their spare money it amuses me when they say they might lose it or it'll go down in value, but then go out and buy stuff they don't need anyway which to me is even worse as it's gone immediately. It may bring a little more happiness for the short term but IMO is daft. I've always been a saver and investor. Despite some expensive hobbies in the past (sports cars!) I've always thought working while not saving anything is just not worth doing, so each year have always saved and invested something. Today a high % of my income is disposable but I still mostly only buy stuff I need or is related to a hobby.
Unfortunately the culture of spend it all, borrow, spend even more in the UK is very big.
 
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