Saving

[ForzaDundee]

Am 25 and have £41k in thon bank account. That's from 3 years of working since graduating with -£500, renting the whole time and not a penny coming from thon parents. Away to buy a house after thon Summer.

[Daydream]

Am 25 and have £41k in thon bank account. That's from 3 years of working since graduating with -£500, renting the whole time and not a penny coming from thon parents. Away to buy a house after thon Summer.

Really impresses me this. Well done. Something I’ve never achieved.

[Honest Saints Fan]

I have incurable cancer and don't even believe in YOLO. I managed to claim on my critical illness insurance so have quite a health bank balance for a 28 year old but I'd rather keep most of it for my family to inherit as they'll need it more than I do currently. 

[MONKMAN]

I only recently signed up to my works pension scheme, which is fairly decent. I was more interested in drink, drugs and holidays in my youth. Speaking to one of the boys who went in from not long after we started together around 9 years ago. His fund has over 100k in it and he says he never really noticed any difference after tax, from what he was paying in himself. Basically, I’m a fud.

 

That said, I’ve overpaid a significant amount off my mortgage knocking almost 10 years off the term.

 

[Lex]

Everyone’s appetite for risk is different.

Personally I’m a big fan of the boring ways of saving: Work place pensions and paying off the mortgage.

If you’re into both of them and aren’t servicing unsecured debts you’re doing alright.

[101]

55 minutes ago, ForzaDundee said:

Am 25 and have £41k in thon bank account. That's from 3 years of working since graduating with -£500, renting the whole time and not a penny coming from thon parents. Away to buy a house after thon Summer.

Sorry for going off topic and talking something totally unrelated what's your mother's maiden name?

[101]

I think the important thing to remember with investments is not spend the figure you see on the screen or project the growth, if you're money has gone up 10% don't assume it will continue at that rates. It's only "real" when it's out the scheme and in your account

[pandarilla]

I have incurable cancer and don't even believe in YOLO. I managed to claim on my critical illness insurance so have quite a health bank balance for a 28 year old but I'd rather keep most of it for my family to inherit as they'll need it more than I do currently. 

Every now and then p&b stops you in your tracks.

A bit of perspective for us all. Take care.

[Hedgecutter]

if you're money has gone up 10% don't assume it will continue at that rates. It's only "real" when it's out the scheme and in your account

So if you got a client who bought stock at 8 and it now sits at 16, he's all fucking happy. He wants to cash in, liquidate, take his fucking money and run home. - You don't let him do that. - Okay. - 'Cause that would make it real. - Right. No.

What do you do? You get another brilliant idea. A special idea. Another "situation." ANOTHER STOCK to reinvest his earnings. And he will, every single time. 'Cause they're fucking addicted. And you just keep doing this, again and again and again.

Meanwhile, he thinks he's getting shit rich, which he is, on paper. But you and me, the brokers, we're taking home cold hard cash via commission, motherfucker.

[101]

55 minutes ago, Hedgecutter said:

So if you got a client who bought stock at eight and it now sits at 16, he's all fucking happy. He wants to cash in, liquidate, take his fucking money and run home. - You don't let him do that. - Okay. - 'Cause that would make it real. - Right. No.

What do you do? You get another brilliant idea. A special idea. Another "situation." ANOTHER STOCK to reinvest his earnings and then some. And he will, every single time. 'Cause they're fucking addicted. And you just keep doing this, again and again and again. Meanwhile, he thinks he's getting shit rich, which he is, on paper. But you and me, the brokers, we're taking home cold hard cash via commission, motherfucker.

Haha I hadn't thought about that scene but it's actually very good financial advice

[carpetmonster]

What could that get you over there?

Binny's are doing 30 packs of Miller High Life for $10 this week, so currently 90 beers.

[Sergeant Wilson]

6 minutes ago, carpetmonster said:

 

Binny's are doing 30 packs of Miller High Life for $10 this week, so currently 90 beers.

 

A beer called High Life. That sound very drinking-in-the-swing-parky.

[whiskychimp]

2 hours ago, MONKMAN said:

I only recently signed up to my works pension scheme, which is fairly decent. I was more interested in drink, drugs and holidays in my youth. Speaking to one of the boys who went in from not long after we started together around 9 years ago. His fund has over 100k in it and he says he never really noticed any difference after tax, from what he was paying in himself. Basically, I’m a fud.

 

That said, I’ve overpaid a significant amount off my mortgage knocking almost 10 years off the term.

 

Can I say, whatever youve overpaid on your mortgage, release it and put it into your pension. 

Tax relief plus employer contributions or 3% on your mortgage. 

[Joey Jo Jo Junior Shabadoo]

12 minutes ago, whiskychimp said:

Can I say, whatever youve overpaid on your mortgage, release it and put it into your pension. 

Tax relief plus employer contributions or 3% on your mortgage. 

I think if you wandered into your bosses office with a sack of cash with a dollar sign on the side of it and told them you were fucking it in the pension scheme and they'd have to stick an extra 3% on top they would be absolutely delighted.

Is this a thing? Surely not. 

[Nigel]

Absolutely.  I guess pre-2008 people just didn't imagine that a company like RBS would go tits up.  

It's amazing how many people in well-paid jobs exist hand to mouth, even relyign on credit cards to tide them over.  When I worked at RBS a colleague told me that following the crash, one of the middle managers went to the senior managers and begged for a pay rise because he had been using his bonus to pay for private school fees and he coudlnt' afford it now.  Madness, the guy was probably earning a high wage but was using a bonus to cover something that you'd have to consider a day-to-day expense.  Idiots.

Sounds like me.... got a deposit from a relative. Never saved a penny in my puff. If I get to the end of the month and have any cash at all left in my account i think i am doing well. Supplement my wages with credit cards and i earn significantly more than the average person.

 

Waste my cash on extravagant nights out, holidays, taxis and tipping folk.

 

I need to grow up.

 

[Hedgecutter]

As much as it's great for somebody to say they're mortgage free and there's the temptation to throw money just to get the balance to £0, overpayments towards the end of the term will only have negligible long-term savings. Very different story if the mortgage balance is high towards the start of the mortgage plan.

I think if you wandered into your bosses office with a sack of cash with a dollar sign on the side of it and told them you were fucking it in the pension scheme and they'd have to stick an extra 3% on top they would be absolutely delighted. Is this a thing? Surely not. 

I'd imagine you'd put a bigger chunk of your monthly pay packet into the pension scheme and support the sudden reduction of money in the current account with the money released from the mortgage.

[Raidernation]

A beer called High Life. That sound very drinking-in-the-swing-parky.

It’s like making love in canoe!

[strichener]

1 hour ago, whiskychimp said:

Can I say, whatever youve overpaid on your mortgage, release it and put it into your pension. 

Tax relief plus employer contributions or 3% on your mortgage. 

Employer contributions is only on your actual salary.  There would be no employer contributions due on any one-off payments made from releasing the mortgage overpayments.

[whiskychimp]

50 minutes ago, strichener said:

Employer contributions is only on your actual salary.  There would be no employer contributions due on any one-off payments made from releasing the mortgage overpayments.

I mean live on the savings and rattle up your work contributions. 

Or even just invest it. My mortgage is at 2%, I'm making 7.3% on my investments over the long term. 

[Hedgecutter]

Crunching a few numbers, I've found that for me it's best to overpay the (early stage) mortgage up to £X per month, but any spare amount beyond that would be better placed in the pension pot for the tax break.

That said, bringing the monthly mortgage payments down earlier provides a useful safety net for potential hard times in the future. More than a bit tricky to suddenly reclaim pension money (that has been taxed less) in order to cover what would be higher mortgage repayments in comparison?

So basically, working out what will save one's self the most money seems to require a complex mind-f*** combination of the various aforementioned options in this thread, the required balancing act being strongly affected by individual circumstances with no 'one answer fits all'.

Thank you P&B [emoji857]