Do you save money every month?

Associate
Joined
11 Jan 2011
Posts
2,167
Well done man! Definitely should be a more mainstream idea.
Thank you sir!

I do try to somewhat inform my friends or family on certain things but I have definitely been given weird looks when I explain how retiring early can be an option with planning.

I just generally recommend the passive investing approach via low cost index funds. And try to get them to understand the power of compound interest. That's it really. Nothing complicated.
 
Soldato
Joined
17 Jun 2012
Posts
5,906
I've never understood why renting is the same, or in some cases, more expensive than buying!

But people still pay those prices because they have to, I guess!

If renting was half the price of buying then I can why it might be worthwhile but when it's the same price it just doesn't make sense.

I know it's difficult to get the deposit together if you're stuck in a renting hole but that should be a 100% focus instead of paying for Sky and holidays etc. Buy a second hand Nokia instead of a fancy iPhone etc and get your own place ASAP.

Yeah just cut the lattes and avocado on toast and you'll have your £50k soon enough lol
 
Soldato
Joined
21 Jan 2010
Posts
11,179





12% ownership in cities
That article is a word spaghetti. That is about owner occupier, not whether people rent or not. People still own the houses.
 
Soldato
Joined
9 Apr 2007
Posts
11,579
Yeah just cut the lattes and avocado on toast and you'll have your £50k soon enough lol
£1,000,000 house at a not hard to find 5% deposit mortgage, nice definitely your typical house price.
Bit more realistic £12,500 deposit for a £250,000 house.
Or just get a 0% mortgage if you're really struggling.
 
Soldato
Joined
21 Jan 2010
Posts
11,179
£1,000,000 house at a not hard to find 5% deposit mortgage, nice definitely your typical house price.
Bit more realistic £12,500 deposit for a £250,000 house.
Or just get a 0% mortgage if you're really struggling.

Key points​

  • 100% mortgages cover the full cost of your property, so you don’t need to provide a deposit
  • They’re not very common, and usually require you have a good credit score and someone to act as a guarantor
  • Alternatives to 100% mortgages include low deposit mortgages, a gifted deposit or a buyer scheme, depending on your eligibility
I know you think you are being clever by inventing a scenario where there isn't a problem, but 0% deposits are high risk and need guarantors. Unless you have family willing to sign over their house as collateral, it isn't an option for most.

Schemes like H2B are for first time buyers only, so those on the street who have had failed marriages or other circumstances are not entitled.
 
Associate
Joined
23 Nov 2018
Posts
158
Yeah just cut the lattes and avocado on toast and you'll have your £50k soon enough lol

Maybe! If you eat at Harrods! :p

It's definitely harder for people down near London but £7.5k would be a good 5% deposit on a house up near Doncaster.

You could go much cheaper if you don't mind the area being... a bit rough!

I'm not sure if the wage increase matches the cost of living down south but if it helps get out of the renting hole it might be worth it.

I know not everyone can earn a decent wage but the next thing would be to learn a trade or skill if possible and then get a better job.
 
Associate
Joined
24 Dec 2006
Posts
939
Location
Bromsgrove, Worcs.
I am lucky as I get very cheap accommodation through work. Even so we are looking to buy but there is just so little available and what there is is hugely sought after with people massively over-bidding.
 
Soldato
Joined
17 Jun 2012
Posts
5,906
£1,000,000 house at a not hard to find 5% deposit mortgage, nice definitely your typical house price.
Bit more realistic £12,500 deposit for a £250,000 house.
Or just get a 0% mortgage if you're really struggling.

And what is the cap on lending, 4-4.25x salary? 5% deposit is nothing.
 
Joined
27 Jul 2005
Posts
12,819
Location
The Orion Spur
Me and my GF are on very low incomes but are saving for a deposit, every year we save the options where we would like to live grows smaller and smaller, we at the point now where if really want to own our own home we might consider moving up north to Hull City where you can get a pretty respectable house for around £135,000,


You can grab houses up there for half that but the areas look a bit dodgy!, that being said it can be done if you're prepared to move.
 
Soldato
Joined
16 Jun 2005
Posts
18,269
As I said we are in a fortnuate position compared to most which I am grateful for. Well the thing is, I guess the majority would say it's a lot to sacrifice but I am not sacrificing anything in my opinion. I just don't have expensive hobbies or tastes. The things we enjoy are simple/free. I like PC gaming, working out in my home gym, spending times with friends and family (luckily my friends are quite similiar so we have lots of game nights with console, pc and boardgames, did a retro gaming last night on my projector!). We go to restaurants but nothing fancy. We go for walks, do the usual media consumption. We travel every year to Asia. We don't buy expensive clothes. We do shop at Aldi but we don't limit our spending or eat beans/rice!

Basically we are naturally frugal and are aware of lifestyle creep and believe that our money is better spent investing in our future rather than short term enjoyment (expensive cars, clothes, takeaways every other day, spending lots on house items, drinking/smoking). Of course some people love buying those things and that's fine!

But the things we do enjoy (which are quite low £ wise) we don't limit ourselves on. I upgrade my PC every 2-3 years, I have a decent home cinema system, if we need something we buy it. Just different priorities I guess.
Everyone should learn about FI/RE when they're young IMO.
 
Associate
Joined
23 Nov 2018
Posts
158
Everyone should learn about FI/RE when they're young IMO.

Agreed! My daughter did some saving / basic stuff in a lesson called "life" but it was super basic from what she told me.

I remember being taught how to write CVs and having lessons on improving them but I've just asked my daughter now and she was like is that a job letter? :rolleyes:

I guess when I left school we could go for jobs at 16 whereas now you have to do higher education until you're 18. Maybe they teach them later on now.
 
Top