Mortgage Rate Rises

dLockers said:
My Dad died at 65. The two colleagues who were most influential on my career in my formative years (~23) are both dead. I sat opposite one, and adjacent to another - 45 and 50.

Life is too short.
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I'm very sorry to hear that.
I totally respect how you want to live your life.

Achieving the right balance is always very difficult and sometimes impossible.
 
ProStreet said:
My 10 rules to financial success

No pcp / lease
Car maximum 3% of net worth, paid for in cash
Mortgage maximum 25% of net income, with maximum 15yr term
No designer clothes, max spend £400 a year
No credit cards, chop them up if so
No leasehold / fleecehold only FREEHOLD
No crypto currency or gambling
No friends
No kids
Be in the top 1% of earners
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This sounds like a kid wrote it tbh...

Are you saying you're living by the rules in order to be successful or that having achieved all of these you would deem yourself successful?

I mean a car at 3% of your net worth is weirdly specific and also really quite difficult and not really all that desirable.

For example you could have one that over time becomes 3%, in fact I think mine is probably more like 0.5% or something because it's become worthless at the same time as my net worth has grown but what is that achieving?

It could easily start creating me a load of aggro, so I'd replace it. Likely with something closer to 10%, but then my net worth would recover quite quickly because what I'd done is spent some of my savings.

To be honest it reads a bit like it wouldn't take much to get you talking about a matrix?
 
matt100 said:
This sounds like a kid wrote it tbh...

Are you saying you're living by the rules in order to be successful or that having achieved all of these you would deem yourself successful?

I mean a car at 3% of your net worth is weirdly specific and also really quite difficult and not really all that desirable.

For example you could have one that over time becomes 3%, in fact I think mine is probably more like 0.5% or something because it's become worthless at the same time as my net worth has grown but what is that achieving?

It could easily start creating me a load of aggro, so I'd replace it. Likely with something closer to 10%, but then my net worth would recover quite quickly because what I'd done is spent some of my savings.

To be honest it reads a bit like it wouldn't take much to get you talking about a matrix?
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I'm living by these rules to be successful.
The 3% thing is really a rule of thumb and doesn't apply to all situations. A minimum of 5k is also applied ie buy a car that's worth at least 5k as the difference between a 1k car and a 5k is huge. Once you have your house paid off, you can then buy a 15k car for instance..

Why do the majority of people need a 30k car? It's just insanity.
 
ProStreet said:
It depends if you're in a job that rewards hard working. It also depends on what you do with the money.
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every job rewards you it's called wages ?? or bonuses ... bought a house had to sell said house saved then bought another house spent 25k doing it up .. dropped my hrs to 8 per day and have time to enjoy life .. it's really quiet something to do .. :)
 
mattyfez said:
Yeah I used to love my fast cars, I drive a 6yo 1.2 Micra now, so macho! but seriously it basicaly costs nothing to run, bought cash, and I'm averaging about 50mpg.

It does everything I need it to, and I can put the money saved into more intersting lifestyle enhancements, more trips away, eat out at nice restauants more often etc..

Everyone has thier own priorities I guess but i'd rather not be paying x hundred pound a month into a depreciating asset.

I don't have a mortgage luckily, own a modest house and plan to retire by 50.
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It was a s2000 to a 207 for me.
If I couldn't have a fun car, I wasn't really bothered between a fancy to adequate car.
 
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flea.rider said:
every job rewards you it's called wages ?? or bonuses ... bought a house had to sell said house saved then bought another house spent 25k doing it up .. dropped my hrs to 8 per day and have time to enjoy life .. it's really quiet something to do .. :)
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By reward, I mean through career progression, that's why you work the longer hours. Most jobs don't pay overtime, only way to get promoted is to stand out by working hard.
 
ProStreet said:
By reward, I mean through career progression, that's why you work the longer hours. Most jobs don't pay overtime, only way to get promoted is to stand out by working hard.
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All hard work gets you is more hard work. Self promotion, networking and playing office politics gets you the promotions/better jobs. That's something I wish I realized earlier in my career.
 
flea.rider said:
meh the higher you go the more money and stress ..done the head chef bit .. i find working smart is better than hard ..
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Yes the more money, and if you can handle the stress then you're golden. I try to limit my stress by not adding to it through having debt and living beyond my means. It's really quite simple.
 
ProStreet said:
You said you may need to sell it?
That's the point. You didn't forecast for the impact of higher interest rates on your financial situation, resulting in you having to sell a car you probably wouldn't have entered into if you knew this beforehand.
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Huh? I might sell it to mitigate the needs to impact my free cash flow. I can sell it because there is 32k of equity in it lol.
 
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