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Happy Blue Monday | |||
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 although my partner and I sat down and did some spreadsheets and mapping so I feel positive.
Also I think I’m relatively care free because of how privileged I am. I don’t stress about owning houses because of the security my family provide me and eventually my daughter in that sense. But I dunno. I know I need to be more sensible and suppose I will be | |||
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"I was going to make a comment on social class but I’m resisting that urge " No make it, because it’s super important | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible." Baby Steps 1-3 are my focus for this year (on Baby Step 2 atm). As someone who is not remotely financially literate, what part of his investment advice do you disagree with? | |||
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"Pretty terrible although my partner and I sat down and did some spreadsheets and mapping so I feel positive.
Also I think I’m relatively care free because of how privileged I am. I don’t stress about owning houses because of the security my family provide me and eventually my daughter in that sense. But I dunno. I know I need to be more sensible and suppose I will be"I’ve had to sit down and work out my plan for the year and I felt great after it. Actually implementing it is the tough part now though | |||
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"I’ve always been pretty good really. My main career was banking so I had to be. Big trouble if we ever went overdrawn! " How strict are they about checking (and were you allowed to bank with the company you worked for?) | |||
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"I'd say I have good financial literacy. I did work in banking for 12 years though. Interestingly I only became 'better' with money after I left banking though. I have a medium risk to investing and a strong desire to save for the future. Especially for our child. I do monthly budget spreadsheets and am always making sure I'm getting the best deal. I'm sure we could do slightly better with some things of course. We had over £1000 in vet bills in December so emergency funds need replenishing. " I think this is where I am. I don’t have the discipline to do spreadsheets but I also recognise that I’m in a privileged position of not actively checking my banking for fear of things not being paid or going overdrawn. Why do you think you got better after leaving the industry out of curiosity | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. Baby Steps 1-3 are my focus for this year (on Baby Step 2 atm). As someone who is not remotely financially literate, what part of his investment advice do you disagree with?" I don't know much about investments, but if you go in the UK FIRE groups on FB and Reddit you'll see that people have very strong opinions about how poor his advice is. Remember that when you're following Baby Steps 1-3 that you need to account for us being in the UK and not the US. For example, there's no point in paying interest on credit cards when 0% credit cards are so easily available here (they're not in the US). And almost nobody in the UK should pay their student loans off (they're very different to student loans in the US). | |||
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"I’ve always been pretty good really. My main career was banking so I had to be. Big trouble if we ever went overdrawn! How strict are they about checking (and were you allowed to bank with the company you worked for?)" Pretty strict. It came up on a managers sheet if we went overdrawn haha. Yeah we had to bank with them. It was NatWest. This was at the beginning. Eventually were allowed overdrafts and loans etc but had to stay within it. I suppose it’s just stayed with me! | |||
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"I was going to make a comment on social class but I’m resisting that urge No make it, because it’s super important " Something something people always tell poorer people to just save but spending habits and behaviours are sometimes extremely tough to unlearn. Also if we tell people how unattainable things like home ownership are for some people, we can’t wonder why they never aspire to it and never achieve it. | |||
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"I’ve always been pretty good really. My main career was banking so I had to be. Big trouble if we ever went overdrawn! How strict are they about checking (and were you allowed to bank with the company you worked for?) Pretty strict. It came up on a managers sheet if we went overdrawn haha. Yeah we had to bank with them. It was NatWest. This was at the beginning. Eventually were allowed overdrafts and loans etc but had to stay within it. I suppose it’s just stayed with me!" Just thought. I got my first mortgage with them too as staff got preferential mortgage rates. It was 9%!!! 9%!!!! And we think things are tough now! | |||
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"I'm quite good at managing money. I don't have much to manage "You’re rich in  | |||
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"I absolutely bloody terrible with money "Join the club (for £9.99 a month) | |||
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"For many years we didn't had enough money to be concerned about anything other than making sure we had enough. It's much easier to be financially savvy when there's money to be savvy with. I used to get really annoyed with people who had way more money than us complaining that they were short. " It’s always a odd one isn’t it but the more I realise about money the more I realise that it’s all relative and the term living pay check to pay check is applicable to people that live on £100,000k plus just as much as it is for those on £25,000k. Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening | |||
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"We are all fucked, financially. Governments make 99% on financial instruments they produce, bonds and wealth creation via money 'printing'. They sell off our service and then allow private companies to profit by charging for services. 88% of land ownership is in the hands of the top 12% wealthiest, who continue to profit from that ownership. There is enough money lock in land ownership to pay for 1650 new schools, 320 new hospitals and all the associated workers. The system only sees profit and never the value of things. That's why a doctor will never earn as much as a banker, a nurse will never make more money than a financial advisor and a teacher earns less than a dentist. Read 'Who Owns England' by Guy Shrubsole." I’ll check that out but hope to keep this conversation to personal finance and the experiences of us as average members of the public and less about capitalist theory  | |||
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"I’m a guy that’s born of poverty but fallen into money So I’m great at budget shopping but think putting my savings in a shoebox under my bed is the best way to do it " What do you notice as the biggest differences? | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. " There are some interesting facts about how 1/3 of families are able to maintain wealth into the next generation and around 90% have lost it within 3 generations | |||
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"I was going to make a comment on social class but I’m resisting that urge No make it, because it’s super important Something something people always tell poorer people to just save but spending habits and behaviours are sometimes extremely tough to unlearn. Also if we tell people how unattainable things like home ownership are for some people, we can’t wonder why they never aspire to it and never achieve it. " Yep. The times people say "it's just a question of managing your money" when they've never had to actually make £1000 pay £750 rent, buy food for the month, shoes for one or more kid and heat the house. For clarity £750 is just an easy example I know it's unlikely that rent would be that low. | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. Baby Steps 1-3 are my focus for this year (on Baby Step 2 atm). As someone who is not remotely financially literate, what part of his investment advice do you disagree with? I don't know much about investments, but if you go in the UK FIRE groups on FB and Reddit you'll see that people have very strong opinions about how poor his advice is. Remember that when you're following Baby Steps 1-3 that you need to account for us being in the UK and not the US. For example, there's no point in paying interest on credit cards when 0% credit cards are so easily available here (they're not in the US). And almost nobody in the UK should pay their student loans off (they're very different to student loans in the US)." That makes sense. I looked at balance transferring mine to a 0% but figured that as I’d be paying it all off within 3 months through the snowball method the hit is take on my credit score would be more of a hit than the interest payments over 3 months | |||
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"I’ve always been pretty good really. My main career was banking so I had to be. Big trouble if we ever went overdrawn! How strict are they about checking (and were you allowed to bank with the company you worked for?) Pretty strict. It came up on a managers sheet if we went overdrawn haha. Yeah we had to bank with them. It was NatWest. This was at the beginning. Eventually were allowed overdrafts and loans etc but had to stay within it. I suppose it’s just stayed with me!" It’s amazing how these little lessons stay with you, even if you aren’t negatively affected by them personally | |||
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"For many years we didn't had enough money to be concerned about anything other than making sure we had enough. It's much easier to be financially savvy when there's money to be savvy with. I used to get really annoyed with people who had way more money than us complaining that they were short. It’s always a odd one isn’t it but the more I realise about money the more I realise that it’s all relative and the term living pay check to pay check is applicable to people that live on £100,000k plus just as much as it is for those on £25,000k. Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening "Often more acute among higher earners. Someone described it to me as ‘BMW poor’. It’s the social pressure to have the new car, the expensive kitchen, the right holidays etc. often those who seem well off are deep in debt and just paying interest to service a book of loans. Warren Buffet gave great advice: if you always buy the things you want, soon you’ll have to sell the things you need. It’s a great reminder to check yourself at the checkout. | |||
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"I was going to make a comment on social class but I’m resisting that urge No make it, because it’s super important Something something people always tell poorer people to just save but spending habits and behaviours are sometimes extremely tough to unlearn. Also if we tell people how unattainable things like home ownership are for some people, we can’t wonder why they never aspire to it and never achieve it. " I think that’s very true. The idea that if we cancelled Netflix and stopped buying Avocado toast and coffees we’d be on the housing ladder is ridiculous. The realistic nature of a 14 year grind just to save an average first time buyer deposit is quite depressing though. I had a chat with a mate of mine who was having a conversation with his parents about saving for a deposit and I was saying to him that what they likely paid for their first house is less than the deposit on the same house now. Really puts it into perspective | |||
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"I was going to make a comment on social class but I’m resisting that urge No make it, because it’s super important Something something people always tell poorer people to just save but spending habits and behaviours are sometimes extremely tough to unlearn. Also if we tell people how unattainable things like home ownership are for some people, we can’t wonder why they never aspire to it and never achieve it. Yep. The times people say "it's just a question of managing your money" when they've never had to actually make £1000 pay £750 rent, buy food for the month, shoes for one or more kid and heat the house. For clarity £750 is just an easy example I know it's unlikely that rent would be that low. " Agree. Often it’s a case of how can i stretch £1000 into £1175 this month  | |||
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"We are pretty good. Mia manages the money side of things including all outgoings, and what we do with surplus monies. " Everyone needs a Mia!!! | |||
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"For many years we didn't had enough money to be concerned about anything other than making sure we had enough. It's much easier to be financially savvy when there's money to be savvy with. I used to get really annoyed with people who had way more money than us complaining that they were short. It’s always a odd one isn’t it but the more I realise about money the more I realise that it’s all relative and the term living pay check to pay check is applicable to people that live on £100,000k plus just as much as it is for those on £25,000k. Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening
Often more acute among higher earners. Someone described it to me as ‘BMW poor’. It’s the social pressure to have the new car, the expensive kitchen, the right holidays etc. often those who seem well off are deep in debt and just paying interest to service a book of loans.
Warren Buffet gave great advice: if you always buy the things you want, soon you’ll have to sell the things you need. It’s a great reminder to check yourself at the checkout. "Yeah it’s one of those unspoken things isn’t it (debt management) and such a taboo to talk about | |||
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"I’m not brilliant but I’m not terrible. My mum when I was younger always drummed in to me to put money away for a rainy day and to prioritise bills etc as she or my nan and gramp could always feed me if needs be. When I had some money passed down to me I used it to pay off a large portion of my (then) Mortgage instead of frittering it away, which was quite a big deal to me back then as I was young free and single and could have travelled more etc. My only financial disappointment/regret is selling my house when we moved in with my mum to look after her. I wish I’d rented my house out. Still, what’s done is done. When I had kids and changed jobs my monthly income dropped quite considerably which was a shock to the system, but I’ve adapted (as you have to) and spend/save accordingly. " Those money lessons we get (or don’t get as kids are essential) and if you don’t know any better it’s hard to Buck the trend. I remember as I became more financially literate I tried to tell my sister to open up a junior isa for her children and she wasn’t into it for whatever reason. I wish she had but you can’t make people do things that benefit them in the long term if they don’t want to | |||
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" Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening
Often more acute among higher earners. Someone described it to me as ‘BMW poor’. It’s the social pressure to have the new car, the expensive kitchen, the right holidays etc. often those who seem well off are deep in debt and just paying interest to service a book of loans.
"Almost two years ago I started working at a new company. I'd been a student for a substantial amount of time before that and worked for myself mostly. I had a nice car. It was a ten-year-old Chevrolet estate car (I need an estate in my line of work). About a year ago I replaced it with a ten year old Vauxhall estate that is also nice (but not quite as nice). Both of my cars cost me £4k outright (and I traded in the first towards the second). I have always owned my cars outright since I passed my test. I was stunned to fairly recently discovered that I was one of only four or five people in my entire office of about 40-50 that owns my car outright. Pretty much everyone else has their car on credit, and that's just something people find completely normal. I was absolutely stunned when I looked at the price of having a similar car to mine on credit. And... these aren't skint people that I work with. These are people who are putting money into savings accounts, who own their own homes, who eat out and go on holiday. These are people who, with a little thought, could afford to buy their own car outright instead of buying one on credit and paying for the privilege. I just don't get it. I don't get why you'd pay extra for the privilege of having a car when you can buy a decent car second hand that you could own outright. And I say this as a person who LOVES cars, LOVES driving, and who doesn't leave the house on F1 or Le Mans weekends... | |||
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"I’m a guy that’s born of poverty but fallen into money So I’m great at budget shopping but think putting my savings in a shoebox under my bed is the best way to do it What do you notice as the biggest differences?" Nothing. I still live like I’m in poverty. I eat poverty food, wear shoes and cloths until they are rags, and I often think about getting a McDonald’s coffee, then don’t because it’s too expensive I’ve got money piling in the bank and no reason to spend it. I’m a simple guy with a simple life. The only difference now is I don’t have to obsess over my budget, I know I’m gonna be ok | |||
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" Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening
Often more acute among higher earners. Someone described it to me as ‘BMW poor’. It’s the social pressure to have the new car, the expensive kitchen, the right holidays etc. often those who seem well off are deep in debt and just paying interest to service a book of loans.
Almost two years ago I started working at a new company. I'd been a student for a substantial amount of time before that and worked for myself mostly.
I had a nice car. It was a ten-year-old Chevrolet estate car (I need an estate in my line of work). About a year ago I replaced it with a ten year old Vauxhall estate that is also nice (but not quite as nice).
Both of my cars cost me £4k outright (and I traded in the first towards the second). I have always owned my cars outright since I passed my test.
I was stunned to fairly recently discovered that I was one of only four or five people in my entire office of about 40-50 that owns my car outright. Pretty much everyone else has their car on credit, and that's just something people find completely normal.
I was absolutely stunned when I looked at the price of having a similar car to mine on credit.
And... these aren't skint people that I work with. These are people who are putting money into savings accounts, who own their own homes, who eat out and go on holiday. These are people who, with a little thought, could afford to buy their own car outright instead of buying one on credit and paying for the privilege.
I just don't get it. I don't get why you'd pay extra for the privilege of having a car when you can buy a decent car second hand that you could own outright.
And I say this as a person who LOVES cars, LOVES driving, and who doesn't leave the house on F1 or Le Mans weekends..."I think it’s become so normalised. I know when I was first looking I didn’t even think about second hand and had the space in my budget for new and so went with that. I now own my car but know it’s probably got 2-3 years left before it becomes too much of a financial constraint and so next year a sinking fund for a new car will be build into my plan so I have the funds available when it does finally give up on me. I never had that degree of short/medium term planning before though and I’m proud of myself for it | |||
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"I’m a guy that’s born of poverty but fallen into money So I’m great at budget shopping but think putting my savings in a shoebox under my bed is the best way to do it What do you notice as the biggest differences? Nothing. I still live like I’m in poverty. I eat poverty food, wear shoes and cloths until they are rags, and I often think about getting a McDonald’s coffee, then don’t because it’s too expensive I’ve got money piling in the bank and no reason to spend it. I’m a simple guy with a simple life. The only difference now is I don’t have to obsess over my budget, I know I’m gonna be ok " A nice place to be but only achievable because you make sound choices. Well done | |||
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" I think it’s become so normalised. I know when I was first looking I didn’t even think about second hand and had the space in my budget for new and so went with that. I now own my car but know it’s probably got 2-3 years left before it becomes too much of a financial constraint and so next year a sinking fund for a new car will be build into my plan so I have the funds available when it does finally give up on me. I never had that degree of short/medium term planning before though and I’m proud of myself for it "That's awesome! I worry about what we're teaching people when they don't even consider a second hand car first. My first car cost me about £600. I bought it from a guy I worked with and it was big enough for my job as an outdoors instructor! To buy the same car as I have new (a mid-size estate) I'd be looking at around £30k. I have no idea how anyone could have that kind of capital in an average-income job like mine (I earn the median amount for my age and sex). | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. " Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. | |||
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" Lifestyle creep is SOOOOO dangerous and the worst part is in the money you don’t even realise it’s happening
Often more acute among higher earners. Someone described it to me as ‘BMW poor’. It’s the social pressure to have the new car, the expensive kitchen, the right holidays etc. often those who seem well off are deep in debt and just paying interest to service a book of loans.
Almost two years ago I started working at a new company. I'd been a student for a substantial amount of time before that and worked for myself mostly.
I had a nice car. It was a ten-year-old Chevrolet estate car (I need an estate in my line of work). About a year ago I replaced it with a ten year old Vauxhall estate that is also nice (but not quite as nice).
Both of my cars cost me £4k outright (and I traded in the first towards the second). I have always owned my cars outright since I passed my test.
I was stunned to fairly recently discovered that I was one of only four or five people in my entire office of about 40-50 that owns my car outright. Pretty much everyone else has their car on credit, and that's just something people find completely normal.
I was absolutely stunned when I looked at the price of having a similar car to mine on credit.
And... these aren't skint people that I work with. These are people who are putting money into savings accounts, who own their own homes, who eat out and go on holiday. These are people who, with a little thought, could afford to buy their own car outright instead of buying one on credit and paying for the privilege.
I just don't get it. I don't get why you'd pay extra for the privilege of having a car when you can buy a decent car second hand that you could own outright.
And I say this as a person who LOVES cars, LOVES driving, and who doesn't leave the house on F1 or Le Mans weekends..."Similar here. For the past 20 years I have only had 2nd hand cars. Good cars, just not brand new. I’m amazed at the proportion of income that some people spend on cars. When I worked in London, I and people who worked for me whose cars were worth more than their annual income …. 60k salary, 80k cars. I was earning more than them but driving a car that cost 20k. | |||
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" I feel that learning how to manage finances, and other essential life skills, should be taught in schools. Basic skills that every citizen needs. " | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday "mine is poor, its hard to manage money/saving when everything is so expensive | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday "I'm quite happy with my financial stability | |||
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" Similar here. For the past 20 years I have only had 2nd hand cars. Good cars, just not brand new. I’m amazed at the proportion of income that some people spend on cars. When I worked in London, I and people who worked for me whose cars were worth more than their annual income …. 60k salary, 80k cars. I was earning more than them but driving a car that cost 20k. " Thankfully, there are still a few people around driving and maintaining second hand cars, otherwise we probably wouldn't even have motor spares outlets`any more. otherwise all cars would get thrown away like fridges (which are also repairable if people could be bothered, but for the economy of scale). | |||
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"We just count our blessings that we’re not starting out now. I’ve always been really organised with money and that’s possibly down to my parents being strict with me about wild spending when I was a teenager. We’ve both owned houses since our very early 20’s. There’s pressure on younger generations to be visibly wealthy and no way could they do it without the benefits of credit. " Great line there about “pressure … to be visibly wealthy”. I just don’t get that, the idea of spending money to make yourself look wealthy. To who? Why care if people think you are wealthy? Why pretend? If anything, I do the opposite, outwardly I keep things pretty modest financially, keeping the luxuries / high spending pretty private. Maybe it’s partly down to where I grew up, where attracting attention to wealth would not be a smart move … | |||
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" For me _THE_ most important lesson is that of compounding - the concept that, over time, interest gets charged on interest and can lead to a very large amount of money quite quickly." I am very bad at maths. Very bad. Failed-my-A-levels bad at maths. I have always been fine at managing my finances, but literally until I sat down to buy a house at 37 I did not understand what compounding was or why it makes so much difference. | |||
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" I think it’s become so normalised. I know when I was first looking I didn’t even think about second hand and had the space in my budget for new and so went with that. I now own my car but know it’s probably got 2-3 years left before it becomes too much of a financial constraint and so next year a sinking fund for a new car will be build into my plan so I have the funds available when it does finally give up on me. I never had that degree of short/medium term planning before though and I’m proud of myself for it
That's awesome!
I worry about what we're teaching people when they don't even consider a second hand car first.
My first car cost me about £600. I bought it from a guy I worked with and it was big enough for my job as an outdoors instructor!
To buy the same car as I have new (a mid-size estate) I'd be looking at around £30k. I have no idea how anyone could have that kind of capital in an average-income job like mine (I earn the median amount for my age and sex)."Actually my FIRST car was second hand. I forgot. It was a pool car from work when they upgraded their fleet, but after that it was finance agreements. Like you when I look at the cost of a 2024 version of my current car I’m like ‘no chance’. I’ll stick with what I have for as long as possible thank you and build a contingency fund | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. " The importance of compounding is probably one of the key takeaways I’ve had | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday "I'm horrible at it which is why I have a wealth manager | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had "You need to start with a good chunk for it to be of any real use though | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had "Make compounding your friend instead of your enemy! | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had
You need to start with a good chunk for it to be of any real use though "Not really. I started with zero. | |||
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" I feel that learning how to manage finances, and other essential life skills, should be taught in schools. Basic skills that every citizen needs. " Yeah definitely. It’s an essential life skill and if they are going to extend the education of children studying maths from 16-18 then those two years should be spent predominantly teaching real life application of financial literacy and education IMO | |||
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"Life is a risk isn't it for everyone regardless of how much you have or earn throughout it? You just need to make that jump. I'm glad I don't have the hassle of trying to save for a deposit now at 43 as it wouldn't physically be possible. I purchased my first house at 22, still had to put down a 10 grand deposit on a property worth £125k. That in itself was hard to save for, it hasnt really got any better going forward for many. I missed out on my twenties and thirties having a home because I couldn't really afford to do all the things my friends were off out doing. Also working for a bank, I couldn't risk going into debt at any point or you would be pulled in front of a manager and given a dressing down for it as your bank account had to be held at the same place. Savings wise I'll be lucky to keep a couple of grand safe for an entire year, something always goes wrong and it wipes out any decent amount I had saved. That's just how it goes unfortunately. A lot of people still do say that you can still have all the luxuries and still save to move out (deposit). I disagree with that. If you took note of just one years worth of what you spend on: Subscriptions Takeaways Nights out Treats Cinema visits Clothes/shoes you don't actually need Numerous holidays or weekends away Coffees/lunches Food shopping and not caring about what you spend Paying back credit cards/loans You would be so shocked at what it all added up too. That for me was one major change I had to make to save up initially to move out. My only luxury item I kept at the time was a cheap car as I needed it to get to work and to take my mum to work too at the time, the rest I went bare basics with. Future planning going forward, I'm lucky to have a decent pension and a house that can be sold if necessary and downgraded. But it's not made life any happier as I missed out on too much of it to get to this position. Confident with money-never as its gone as quick as it appears unfortunately! I do wish you luck in achieving your dreams though GK, you already have the right attitude to get yourself there so it will happen! "Haha thanks. I’m much better and more aware than I used to be. Money ruined a previous relationship I had and that was another big learning point for me. The sacrifices while saving is a real balance that is so subjective to the individual and how much they really want the thing at the end of their goal. | |||
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"I'm a budget freak, and have many accounts. I have two 7% savings accounts, plus current accounts. I save for Christmas each year, birthdays, my car services and MOT, and so on. I'll say I'm skint when my main account is empty even though I have savings for the things listed above because I won't touch them. I'd need to be in sort of emergency to touch money earmarked for something else. I need to be more savvy about pensions though. I have two but need more knowledge." Pensions are a little scary, I have no faith you can rely on the state for any humane support in old age. | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had
You need to start with a good chunk for it to be of any real use though
Not really. I started with zero. "You can expect compound interest to double your investment every 10 years. A small amount is going to take decades to return anything. | |||
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"We just count our blessings that we’re not starting out now. I’ve always been really organised with money and that’s possibly down to my parents being strict with me about wild spending when I was a teenager. We’ve both owned houses since our very early 20’s. There’s pressure on younger generations to be visibly wealthy and no way could they do it without the benefits of credit. " I’m doing ok in terms of pensions as I work in the public sector but everything else i feel miles behind | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday
mine is poor, its hard to manage money/saving when everything is so expensive"It really is tough | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday I'm quite happy with my financial stability "I’m stable being unstable | |||
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"I've always been hyper aware of finances although not too forward thinking in my youth. Things are OK now, but not as good as they should be. "That’s basically where I am. Not terrible but could be better but I also have enjoyed myself and don’t blame anyone for where I am (but will blame myself if I don’t put the necessary steps in place) | |||
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"Money is so emotive and it is very difficult to have a conversation that doesn’t trigger all sorts of reactions. For me _THE_ most important lesson is that of compounding - the concept that, over time, interest gets charged on interest and can lead to a very large amount of money quite quickly. Compounding is the reason people with money make more of it. It is also the reason why people who get into debt lose control quickly. I have been on both sides of that fence and know from personal experience that cutting back on the debt as quickly as possible might really hurt in the short term but it is a lifesaver over the long term." This is the plan fundamentally. The reduction of debt will enable a) my deposit to be expedited and b) enable me to put aside more of an emergency fund to stop the need to lean on credit as the only option | |||
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"When you don’t have much, any virtually zero chances to improve your situation, I make sure my bills are paid, my home is warm and I have food to put on my table. That’s how far my financial (il)literacy goes." That’s important though | |||
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"What would you say is your level of financial literacy, your appetite to risk, saving and preparing for the future? Apparently: • 39% of adults don’t feel confident managing their money • 22% of people have less than £100 in savings • On average it takes 14 years to save for a first time buyer house deposit I’ve spend the last couple of weeks taking part in a series of financial education webinars, consuming all the Dave Ramsey content I can and reflecting on my (lack of) money management) I’m often out on Friday and Saturday and it’s really hard for me to be restrained and have the discipline necessary to curb my spending habits but I’m determined to get closer to the housing ladder this year and be an adultier adult
Happy Blue Monday
I'm horrible at it which is why I have a wealth manager "2025 will be when I sit down with a financial advisor and plan the next 15-20 years  | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible." • Ah. I was just about to look him up and now I'm somewhat ambivalent.  | |||
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"I'm a budget freak, and have many accounts. I have two 7% savings accounts, plus current accounts. I save for Christmas each year, birthdays, my car services and MOT, and so on. I'll say I'm skint when my main account is empty even though I have savings for the things listed above because I won't touch them. I'd need to be in sort of emergency to touch money earmarked for something else. I need to be more savvy about pensions though. I have two but need more knowledge." This is the goal, a sinking fund for all my expected outgoings so that nothing creeps up and stops me dipping into other pots unnecessarily. It’s part of my plan for this year, especially around xmas and the holidays I have planned | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. • Ah. I was just about to look him up and now I'm somewhat ambivalent. "Do it anyway. He has other advisors on his show who aren’t so marmite or divisive and the overall principles of his Baby Steps Method are generally a good starting point | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had
You need to start with a good chunk for it to be of any real use though
Not really. I started with zero.
You can expect compound interest to double your investment every 10 years.
A small amount is going to take decades to return anything."The whole point of compounding (and doubling in general) is that it is flat for a very long until, suddenly, it isn’t. It is the reason why debt kills people because it looks so innocuous for ages until suddenly it kicks off and you are left thinking “what the fuck just happened?” People dismiss it because “it takes ages” but that’s exactly why sorting a little out now is a great idea because you currently have ages for it to work its magic. | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. • Ah. I was just about to look him up and now I'm somewhat ambivalent. "Just be prepared to ignore his nonsense opinions about premarital sex and tithing 10% of your income (because the church says you should). His money advice is good for people who are actively *bad* at managing their money and staying out of debt. If you are just average at managing your money and don't have monstrous amounts of debt, you might be better with someone like The Financial Feminist (not just for women!). | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had
You need to start with a good chunk for it to be of any real use though
Not really. I started with zero.
You can expect compound interest to double your investment every 10 years.
A small amount is going to take decades to return anything."Like I say, I started at zero, so I dispute the comment that you need a large chunk to start with. But yes, I started in the 90’s, in my early 20’s. First few years the totals didn’t look much different to how they would have looked in a savings account, but kept at it, regular small amounts, and the results are along the lines of your rule of thumb … a bit stronger but not far off. | |||
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"I'd say I have good financial literacy. I did work in banking for 12 years though. Interestingly I only became 'better' with money after I left banking though. I have a medium risk to investing and a strong desire to save for the future. Especially for our child. I do monthly budget spreadsheets and am always making sure I'm getting the best deal. I'm sure we could do slightly better with some things of course. We had over £1000 in vet bills in December so emergency funds need replenishing. I think this is where I am. I don’t have the discipline to do spreadsheets but I also recognise that I’m in a privileged position of not actively checking my banking for fear of things not being paid or going overdrawn. Why do you think you got better after leaving the industry out of curiosity " I worked in retail banking in the sell em low stack em high era before the 2008 crash. When there was targets to hit staff were encouraged to take another credit card, another loan. I am not blaming them. I am my own person of course. Just explaining. I partied like those credit cards were my own money. Spent money on clothes and holidays like it was water. I grew up in a deprived area with parents (divorced) each living hand to mouth. I went to a very nice school (on academic merit). I saw the help that others got to further their education, buy houses, set up businesses etc as we became adults. I want that for our child. And if that means I drive an 18 year old car for now. Then that's absolutely fine with me. Also credit to the Mr. He is naturally very good with money. He helped me out at the start of our relationship and I made changes so I'd not be in that situation again. | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. • Ah. I was just about to look him up and now I'm somewhat ambivalent.
Do it anyway. He has other advisors on his show who aren’t so marmite or divisive and the overall principles of his Baby Steps Method are generally a good starting point "• | |||
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"Dave Ramsay is great for the first three steps. But it must be remembered that he's a misogynistic evangelical Christian, and his investing advice is terrible. • Ah. I was just about to look him up and now I'm somewhat ambivalent.
Just be prepared to ignore his nonsense opinions about premarital sex and tithing 10% of your income (because the church says you should).
His money advice is good for people who are actively *bad* at managing their money and staying out of debt.
If you are just average at managing your money and don't have monstrous amounts of debt, you might be better with someone like The Financial Feminist (not just for women!)."• Thank you, great advice. | |||
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"It's a lot easier to be financially secure if you're already rich, or come from a wealthy background. Possibly, but nobody gave me a penny, I grew up in a deprived area and I am in a solid financial position. Studied hard, saved as soon as I could, and the compounding effect of saving for over 30 years helped me on my way. The importance of compounding is probably one of the key takeaways I’ve had
You need to start with a good chunk for it to be of any real use though
Not really. I started with zero.
You can expect compound interest to double your investment every 10 years.
A small amount is going to take decades to return anything.
Like I say, I started at zero, so I dispute the comment that you need a large chunk to start with. But yes, I started in the 90’s, in my early 20’s. First few years the totals didn’t look much different to how they would have looked in a savings account, but kept at it, regular small amounts, and the results are along the lines of your rule of thumb … a bit stronger but not far off. "You are 100% correct. The amount of people who don’t get compounding is a real shame. People think growth is linear, not exponential. This prevents them starting early they think they can catch up when earning more later but this is a trap, if you start a habit of living on 100% of your earnings it will follow you for life. | |||
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