Reply With Quote
I’d generally rely on the back of Mum and cypermethrin
Ok i am hugely fortunate - live in a lovely house (read money pit), well paid job, coming up to 50, 15 y.o. son who is growing up fast and flourishing, wife of 19 years, relatively small mortgage 140k
Might sound like a crazy question but how how much do you have in reserve wrt easily accesible money
I’d generally rely on the back of Mum and cypermethrin
U wotOriginally Posted by cypermethrin
Good luck everybody. Have a good one.
I keep a black balaclava at the bottom of the wardrobe.
"Once is happenstance. Twice is coincidence. The third time it's enemy action."
'Populism, the last refuge of a Tory scoundrel'.
I keep a fresh gimp in my black balaclava at the back of the wardrobeI keep a black balaclava at the bottom of the wardrobe.
Good luck everybody. Have a good one.
Splurrrt lolz.
"Once is happenstance. Twice is coincidence. The third time it's enemy action."
'Populism, the last refuge of a Tory scoundrel'.
Fair points - and perhaps well deserved
What prompted the question was reading a number of posts on PH where folk are shelling out 50-80k on a car - and all credit to them for them in that position
But how wealthy do you need to be to make that a reality - sure you could leave it for 1k plus pcm but do people really do that ? Perhaps I am living under a rock and should crawl back under it....
It seems like people on here are regularly shelling out on watches that cost 10k, 20k, 30k. You either like your nice cars, or watches, or whatever it is, or you don't.
The thing is with cars, how many of those new shiny beasts on the roads are bought with credit?
I know a guy near me, lives in a mansion house. Literally. I've seen scrappier properties owned by the national Trust that are filled with tourists at the weekend. But the guy literally has nothing to his name. It's all done by juggling. I couldn't live like that.
Last edited by seikopath; 15th June 2018 at 22:40.
Good luck everybody. Have a good one.
Reference cars on credit I run two cars, one was bought outright using savings (nothing posh) that I needed to own as I intend ruining it ferrying St Bernards about etc
My other is on PCP (about 20k list price) and I pretty much see it/justify it as renting a tool that I need to get to work etc and having peace of mind that it is reliable/warrantied is the draw but it isn't mine and it is unlikely to ever be, that being said I like driving it and enjoy it very much
I no longer own any expensive watches, I never felt comfortable wearing such valuable jewellery, the way I felt about wearing/protecting them made me realise I was punching above my weight
Unlike most on here I don't earn a huge salary, I have a small house and a reasonably big mortgage, we never worry too much about money though and so I feel pretty privileged
I learned not to be impressed by the cars people drive around in many years ago. Most people grow out of it eventually........sadly some never do.
Best luxury in life is not having to work, I managed to achieve that several years ago. I’d rather have an old car and a lie in every morning!
Aim to get out if debt as soon as possible, pay your mortgage off as early as you can. Frankly if I was 50 and still owed a lot I’d be concerned, having a fancy car would be well down my priorities list.
Paul
Last edited by walkerwek1958; 16th June 2018 at 00:03.
I understand your sentiment - I'm lucky in that both me and the other half both earn well, and have low fixed outgoings. Despite this, I feel like I'm a long way off buying a new £35k + car, or PCP ing one. When I see £500 a month I just see a mortgage for a buy to let flat or something more 'worthwhile' to me.
But then that's how I balance risk - spare money off my mortgage with healthy overpayments. If I fall on hard times, I can have time to sort my self out and get back online.
Fixed financial commitments make me worried - so I avoid them unless required. Im happy to drive a 10 yo car in exchange.
Times change,
The beginning of last week I had a nice house with a still a fair bit of mortgage to pay off, but I work very hard and earn ok, so it is getting smaller each year, a wife who works but also can spend a fair bit, two teenage son’s, a car that works but nothing speacial that is paid for out right and I have savings in the bank, in case anything goes wrong and I need to pay the bills.
Today I have all that except, my wife has left, we are now separated and I think it is permanent but we are being civil, kids are with me and are staying as that is what they want, but been told she will take what is entitled too half what the house is worth once it is sold and outstanding mortgage paid and then half of all my savings. (Already taken half of the joint account).
This hopefully will be when kids are at a age when they will can move out, one is nearly at that age. She works in divorce law bless her, knows her stuff.
Happy days,
bit of a shock, but not really a surprise as sadly we were drifting apart and she was staying for the kids apparently, obviously only told me once she had everything in place to move on, it is sad I miss her, so do the kids. We are all coping not easy for her either.
We will survive, expensive cars and watches are just objects to me, what is important is our children.
Money, I can at the moment carry on earning, once my wife has taken what she is legally entitled too, I will still be able to live.
Sorry, back on topic.
I know people with all the expensive lifestyle with nothing in reserve and if they hit crisis, they have hit rock bottom fast with nothing to show for it.
I started with nothing, when I was a kid we did not have much but my dad always made sure we had food on the table, somewhere safe to sleep and told us he loved us. He worked like a lunatic to provide right up the day he died.
So things can change very quickly,
My view do what is right for you. I know a chap who is living the high life, very expensive cars, he says if it all ends tomorrow and I am left with out a penny it has been one hell of a ride, you can not take your money with you when this life ends. Fair play to him.
But for me, I had nothing once it was hell of a struggle, so need to keep a reserve in case things go wrong so there is still food on the table and roof over our heads.
when I am gone I hope to leave the kids with a good memory of me and a bit of money in there bank.
Sorry, A bit deep but it is good to talk apparently.
Have a good weekend everyone.
“Bring out the gimp”
“But the gimp’s taking tea with Tumnus”
Don't just do something, sit there. - TNH
OP. I’d recommend 6 months salary (net) in liquid cash to tie you over. Then invest in stock / share in rapper ISAs - of course have enough cash to pay off any mortgage. I’m 57 this year and plan to retire a bit early.
Just another thing that slaps you (us) in the face and puts all the other BS into perspective.
Stay strong and be safe. Good luck for the future.
pastrana72 - my thoughts go with you - a dose of reality for us all
Literally nowt. It's a very dangerous position and one I've been in for a few years now but every penny I have is invested in my shop. I couple probably liquidate for £50,000 I guess but that would take time and even then a good 50% of that would be owed out.
Wife earns a decent wage but childcare is crippling us and we're living paycheque to paycheque.
I doubt we're alone in this but it's still a crap spot to be in. Lucky I'm not that arsed about money these days. Things always pick up.
The 6 months rule is what a lot of others recommend too, if possible.
I wouldn’t focus too much on other people spending a lot of money on other stuff. It’s either a small percentage of very wealthy people or it’s someone overstretching, often for the sake of appearances.
Personally not close at all, fortunately. Most of my friends however have absolutely no sense of money and spend every penny they earn (and often more), have no pension, savings or even their own property.
I really think there should be more early education about money/personal finance.
This year is my 25th as a Financial Adviser (21yrs my own company). The last 10 years I really only deal with higher net worth clients with a minimum of 100k invested or IHT planning. Reduced my clients down significantly so I only deal with a few but I’ve 6 mortgage advisers so fully aware of the market place still.
As already said 3 or 6 months salary as a back up - reality is in my 25 years very few people ever do this. It’s quite easy to break down finances as really there’s only two areas - necessities and luxuries:
Necessities- protecting your income, for example in the event of ill health, or your assets like your home in the event of death, if you have a spouse and/or children. This can only be done by insurance policies and savings and the problem is so many people think insurance is ‘a rip off’ or the Adviser ‘is just trying to flog something to get commission’. Reality is it is a waste of money..... unless you need to claim, then it’s the best thing you’ve ever done.
Luxuries- savings plans, investments, pensions, cars, watches, holidays, whatever you like really. These are the fun things, your lifestyle choices. Some luxuries eventually become necessities, like pensions for example, but say for a 25 yr old that’s 40 plus years away so ‘worry about that when I’m old’.
Problem is the luxuries can only be funded by income and if you lose that income and haven’t taken care of the necessities, you could lose the lot. Necessities are boring though.
2%,3% or 4% of net income to protect what you’ve got is a small price to pay in my view.
I did not mean it to be, but thank you. What will be, will be.
I am back up and moving forwards.
Thank you as well. Staying strong is the key. I am looking to a future in a positive way.
3 to 6 months salary as a fall back in the bank or somewhere you can access it is a good plan. Over the years I have put away 12 months + as a back up.
If I need to purchase something as a bit of tech or a luxury, I have always made sure I can use it to the maximum, build on it or maybe if I need to get out of it, loose not to much on it.
I am like everyone on here, has a interest and passion for wrist watches. I only need one but over many years I have many.
I bought what I liked and only what I could afford. I started buying watches years ago that I could not afford replace now as the values and interest in those vintage watches has grown.
If they all had to go, it would not be the end of the world for me.
On the whole I have enjoyed the watch collecting hobby and if everything needs to go, then I would get back what I spent easily, if not a return.
We are not talking profiteering here, things I purchased 10 years ago off forum that now have a higher market value.
I suppose I have always been a bit risk averse and needed to keep a back up to put food on the table for the family.
If it was just me on my own, I might go for it a bit more but with others relying on me it is not a option.
However, I respect the attitude of others who take a calculated risk.
Last edited by pastrana72; 16th June 2018 at 10:24.
My work fluctuates a lot and having weathered a couple of recessions before I don’t feel comfortable without at least a years worth of subsistence living (mortgage plus shopping at Lidl and one £6.50 bottle of wine a week) in reserve if things go tits up. When some people decided to fly a couple of aeroplanes into the twin towers all the work stopped and I didn’t do hardly any work for 6months afterwards! Sold a few bits of old equipment and scratched around for a few low paid bits of work and came out the other end with my deposit for a flat untouched and ready to go again.
Somebody i knew in the same line of business (advertising/design/editorial photographer) was still eating out 3 times a week and buying clothes from selfridges every weekend. He went bankrupt and sold their flat and ended up renting. That’s never going to happen to me.
Most people have hardly any money in reserve, literally 1-2 weeks. What amazes me is they are salaried so know exactly what comes in and out and when. You cut your cloth accordingly. Still see lots of new motors and iphoneX around so people’s priorities are skewed.
Always worth putting something aside for a rainy day IMO. We aim to save half of our disposable income whatever that happens to be at the time, and enjoy the rest. It has come in handy when life has thrown the odd curveball.
Recently selling almost all of my watches and getting to within one year (Spring 2019) of total debt freedom, including my mortgage, has given me such peace of mind. I’m 50 and at 55 I plan to retire from teaching and go self employed as a counsellor, and I am one year off being qualified. Both my kids have three years left at university so barring disaster or health issues, my plan should come to fruition - fingers crossed.
My perceptions of ‘value’ have changed a great deal in recent years and ‘frivolous spending’ has lost the gloss it once had. In fact, I look at how much ‘stuff’ I own and feel rather embarrassed with myself. Each to their own of course, and I have friends on interest only mortgages who drive amazing cars, and they have a ‘live for today’ philosophy which I cannot fully subscribe to. I don’t judge them, nor them me.
I’m very happy with my lot - 2 great kids and a lovely wife of 22 years (& 3 dogs), and I feel I have choices available to me should things go wrong in any way. Let’s hope they don’t.
When working, My comfort zone was always 6 months take home pay in easy-access accounts.
I saw the thread on cars which prompted a thought....I know 2 truly well off people ( my guess is 20-30k/month take home)who drive cars they own outright- a 2 year old Golf GTI and the other has a 10 reg BMW X5 ,they won’t do pcp etc .
I get nervous if I don't have 20k plus on hand for emergencies,we bought a house for cash back in February which stretched me at the time but it was a temporary measure only.
I’m self employed so always nervous as most of my money is in my business and a liquidation would not be straight forward and it is a cash hungry business too. I do understand how people with a reliable, salaried job used to be happy living cheque to cheque as it was fairly impossible to lose a good corporate job and pension etc all taken care of for you. These days I think that is a far riskier strategy.
Sent from my iPhone using TZ-UK mobile app
I've always been concerned about not having enough "rainy day" money so keep around six months of take home pay in savings and around the same in the watch collection which could be sold to release the funds if desperate.
Thankfully both my wife and I are pretty careful with money and have a comfortable lifestyle and get whatever we need. Our focus lately has been clearing the mortgage and paid a big chunk off as a lump sum and are overpaying monthly so it should be gone by the time I'm 50 in a couple of years. Hoping to retire at 55 having been in the public sector for 30 years though may carry on past that if I'm still enjoying it.
Cheers
Neil
For most people 6 months salary equivalent is just not a reality. Maybe, just maybe if you are middle aged and have had a good stable job for a while.
I'm asset rich and cash poor. Not rich in the sense of rich, but I have more tied up in assets than cash. I reasonably believe I could sell off a few things if I really needed to.
Being self employed, some months/quarters are better than others.
I managed to pay off the mortgage, then treated myself to watches and others bits and pieces for a while initially, but since then I've worked less, so there is little difference in disposable income now.
It's just a matter of time...
I don't know how some of our friends sleep at night! One friend asked me out for a beer one night, when we got to the pub he started looking very nervous asking if such a body was working. Turns out that she lets him have a tab behind the bar so wanted to get his beer on the slate and pay the day after when his wages went in.
Fancy house fancy cars but can't afford a beer!
It's not for me! We could probably survive for 2 years if we both became unemployed through selling my watches and savings.
We own 2 house outright that brings about 1k a month in which we are using now to over pay our mortgage.
After the ex-wife rinsed me for 50k I was asset rich and cash poor. Bought her out of all the assets to make it as clean and as quick a break as possible. It's taken me about a year and a half to build up 4-5 months salary in the bank. Suprising how quickly it builds up when you're only providing for one person and not two.
On the downside I'm now looking at purchasing a new house, doubling the small mortgage that I have and stepping into the next phase of my life.
However much i spend, I've now got a much better hold on finances. Even buying the house I will try my best not to drop below the cash reserves I have and continue to build on them. I'm aiming for about 1/4 of my net pay per month either in ISA / Shares&Stocks or in general cash savings account.
It is frightening how hand to mouth some folks are. Been steadily saving and accumulating investments along the way since i took my paper round in 81
There’s an interesting adage; owe the bank £10,000 it’s your problem, owe the bank £10,000,000 it’s their problem.
The US auto loan issue is said to be the next subprime crisis where people on minimum wage can buy a $50k car with little down and minimal monthly payment. The current prosperity is largely built on debt and it’s interesting to hear anecdotal evidence confirming this. Debt ultimately has a counter party that calls it in.
I’ve about 6 months net wage in savings, mortgage at about 25% LTV.
About 6 months salary in assets that would be easily liquidified (second car, jewellery, hobby ‘toys’) half of that would clear all outstanding depts.
But, I have no pension provision and live in an ex council house. Currently assessing whether we stay put and become mortgae free in the next few years or move to a nicer area, where we’ll have to buy at 3 times the cost just to have the same size house.
I’m 40, fairly large circle of friend with incomes from 25k to 100k approx.
Of them all, one or two would have provision for more than a month or two should a disaster arise.
The vast majority live on the edge, regardless of their income.
The more affluent have better cars and houses, but still no savings.
Sounds like most people I know. The only asset some have is their home - but most rent.
It's just a matter of time...
So few seem to get it, saving money is how you pay yourself. Not meant as a criticism.
Last edited by Passenger; 17th June 2018 at 21:05.
A fair warchest to hold me over between contracts, which is arguably a bit silly as that isn't likely to be long. House is the only thing I have on credit, watches paid up front (not that I have very expensive ones compared to many here) and we run older cars.
Last edited by wombleh; 17th June 2018 at 21:50.
For those who don't sail: sailing close to the wind will end in tears. A little less close to the wind isn't not only safer - as in the metaphor here, but increased speed will bring you further than sailing close to the wind. When you extend the metaphor, it's safe to say that sailing a little 'lower' will bring you more progress/less stress/more comfortable life under all circumstances.
I've always been very careful, moneywise. No loans other than a mortgage for my house, cars/holidays/watches only bought with my own money - and only when I was able to afford it. The moment I started working, I managed to put away money on the bank. Long story short: it abled me to quit working almost 10 yrs ago.
M
There is no magic solution, however what worked for me was
Save up before you spend.
Don't be afraid to go secondhand or find "bargains" off EBay (etc).
Don't go mad on holidays.
Don't develope any bad habits.
Pay off your credit cards every month.
Keep planning ahead.
Find a secure job, work hard and keep your head down.
With the money saved, split it in to two categories. One you keep in an offset mortgage, so is easily accessible, but still try to pay it off as quickly as possible, and one you invest in your pension (assuming of course you intend to live beyond 55). Plus it's a efficient tax vehicle
Worked for me - retired last year at 57 and donot intend to touch my pension for at least another 2 years.
Best of luck.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
Through mine and my partners last employment we would never have been able to save a decent amount of money, just pay the bills and have a holiday once a year, I left to start my own business and through that we have a tidy sum tucked away, yes we have a mortgage but that is the only borrowing, our house has gone up nearly double in the last 7 years so we're quite lucky.
I have a car in the garage I bought 20 years ago because I loved it and still do, it has also rocketed in value so again very lucky, I could sell it and buy a nice modern car but it doesn't interest me at all, my 05 plate Audi does everything I need..
The key for me has been enjoy what you do and own, its very hard to run your own business or further your career at the best of times, so trying to grow something that essentially you dont like is pushing against the tide, you'll just get tired and stop putting in the effort, again with possessions if you lose interest then sell it and buy something you do enjoy.
My Father passed away recently and it really has brought life and death closer, I dont really want to go on about my loss but this has really cemented my belief in trying to enjoy what you do, unfortunately I haven't really enjoyed anything in the last 6 months due to emotions and grieving.
Saying that I'm not going to start blowing our savings on bucket list ideas because of this loss as the security of a few quid in the bank gives me and my family a security blanket, but I do feel more gung ho at how I earn money and have the attitude of making as much as I can for the most amount of time at home.
Last edited by murkeywaters; 18th June 2018 at 00:09.
My goal from my early 20s was to have enough in assets that I could manage without work. A goal to have the freedom.
I managed to to hit that mark a few years back (I am 40) but we don’t have kids. If a little one pops along the whole equation goes out the window! So that’s why I am still working ha....
Raising a child between 0 - 18 costs as much as a Porsche. Better stay working then.Children tend to change your course; you'll end up sailing closer to the wind if you don't have a plan.
That was me 3 years ago! No amount of savings and easy life could replace the love and joy my little fella brings me every day.
I don't think anyone can truly know what love is till you have a child. Just wish I had not waited till 42 I would have a football team is I was 10 years younger.
When I started my own business in 92 after 10 years managing, my first priority was to get six months salary put buy which after two years I did. You then have a cushion should things go wrong. I have put money into a pension pot from the day I started on my own.
My next goal was to pay my mortgage off which I did seven years ago I was 55. I have always said the house will be left to my two daughters and two grandchildren to make their life a little easier.
My business has and is very busy with my son in law running things out on site now I just run the office pay wages VAT etc.
I now enjoy life knowing I have enough cash to last me and the wife 15 years at a liveable salary, State pension not included. The thing is though I work when I want, still draw a decent salary, with a bonus should the jobs do well, so cannot see me giving up this side of 70. I keep myself fit swim 4 times a week and cycle 150 miles a week.
My message is work hard plan right and slow down as soon as you can and enjoy life.
I seem to have bad luck. I had a huge medical bill of £140k related to my son falling ill overseas that I paid a third of and then remortgaged at the back end of last year. All debts gone and then an unforseen £40k bill related to my divorce 8 years ago has just landed FFS.
So I have no savings however on the positive I earn a decent salary (I'm a 45% taxpayer), and am on a 3 month notice period so if I lost my job I would have time to get another one (albeit it may not pay as well).
Sole earner with a wife that literally has no idea what saving means (told her due to this bill she needed to rein it in for the next 6 months - her idea of reining it in has been spending £450 on a Fuji lens, £150 on jeans, £110 on eyebrow treatment and all this in the last 2 weeks. FML)
Always spent within my means and strived to pay of the mortgage early.........
Went self-employed (with 2yrs backstop of savings) - and have always retained sufficient funds to allow me to sleep at night.
Even if in full-time employment, I’d want £30-£50k of savings to cover emergencies.
I sail close to the wind. Then I edge closer. I test the limits. Then I push beyond. Finance? Just another avenue for extreme risk taking. Like playing Connect-4 in a Koh Samui bar, or kickstarter watches. Some call it foolhardy. I call it character. I wear the exclusive hand-wound Rolex Superlative Chronometer WindupMaster.
W.Miller, Trumptonshire
My last 20 years in summary: I have gone from FT employed, married and no buffer to made redundant and divorced with nothing, to attached in a relationship, running my own business and also employed working PT but with mortgage now paid off and about a year's surplus. Not exactly a whole spectrum of sailing in the last 20 years but quite a lot of it I suppose. I certainly feel much more at-ease with the world now, not chasing the latest and greatest cars, ipads, phones, TVs or anything really. Happy I'm healthy and now have a far better work/life balance getting a substantial part of 3 days of the week off and enjoying the (varied) work the rest of the time.
Posting Permissions
