Financial Independance
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@matt-wood Yes absolutely. My own missus won't do one which is insane because you guaranteed a 1k top if you invest 4k a year. It's absolutely worth doing but has to be used either for a first time buy (house) or taken at 60 years old . If you need access before that age then stick to an ISA.
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@luke-ridger said in Financial Independance:
Sounds like everyone is on the right path ,
Again always thought I was savvy with money but until I properly educated myself , I realised I was just thoughtful and had basic principles.
Building wealth takes patience and discipline but when you amalgamate some wealth , it does start to grow and you actively watch it from time to time.
Max out the tax efficient savings first , ISAs etc then look to transfer them into better places like Vanguard ...... If maxed out then open a SIPP which will allow you a 20% tax rebate .
Remember Mortgages are the cheapest finance you'll ever have , it will not increase with inflation where as your house value will.
Finally , go broke investing . If you are broke at the end of the month through investing into good balanced funds then you are doing it right.
Would you include Lifetime ISAs in this, think you can get 20% back from the government if I understand it right. I am over 39 so I am not eligible but looking at it for the good lady?
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Sounds like everyone is on the right path ,
Again always thought I was savvy with money but until I properly educated myself , I realised I was just thoughtful and had basic principles.
Building wealth takes patience and discipline but when you amalgamate some wealth , it does start to grow and you actively watch it from time to time.
Max out the tax efficient savings first , ISAs etc then look to transfer them into better places like Vanguard ...... If maxed out then open a SIPP which will allow you a 20% tax rebate .
Remember Mortgages are the cheapest finance you'll ever have , it will not increase with inflation where as your house value will.
Finally , go broke investing . If you are broke at the end of the month through investing into good balanced funds then you are doing it right.
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@luke-ridger That's a pretty good position to be in, I am loving this thread.
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@lee-woodman said in Financial Independance:
I love this whole subject and have started to read, learn and educate myself as much as i can take in about it. The concept of creating and developing a portfolio of income that in 20 years will continue to provide an income is great. Working a 9-5 for 45 years, saving into a pension then retiring at 65 on a modest income doesnt excite me!
The 70/20/10 is a great idea, i first heard it through 'Richest Man in Babylon'. Im way behind where i should be in terms of savings and investments but im relatively debt free and im pretty frugal without suffering from 'cheapness'. Im always conscious that cutting £50 a month off bills sounds like nothing, but £600 year really stacks up, especially if compounded over the years. Ive started putting away an absolute minimum of 10% of my 'regular' income into various Vanguard ETF's and forcing myself to live off the rest but also syphoning away the extra £100 here and there, which adds up
My next step will be to look into property once ive got a sufficient capital. Ive started to learn bits about it in advance and it may be a little while off but theres lots i can do in the meantime
Another big motivating factor to educating myself is to be able to financially educate my 2 kids and 2 step-kids. My parents were of the 'if you want more money, work more hours' or 'if you want a big ticket item (car, new kitchen) just borrow' mindset. I want to be able to teach my kids to be astute and comfortable, make good money decisions and realise that even if they arent money driven then its supremely important to at least take care of it from an early age and it will do the same in return!
I am in pretty much the same boat, starting late though and needing to read LOTS to educate myself so I can take personal responsibility for finances.
Got the good lady set up with the Vanguard pension scheme. You say you have various funds in Vanguard, did you set them up directly on their website or through another platform, such as HL or Trading212?
This logistical process is getting me a bit confused about where and how best to go about it.
Nevermind me here just seen your post in the other thread answering me
thanks 
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I love this whole subject and have started to read, learn and educate myself as much as i can take in about it. The concept of creating and developing a portfolio of income that in 20 years will continue to provide an income is great. Working a 9-5 for 45 years, saving into a pension then retiring at 65 on a modest income doesnt excite me!
The 70/20/10 is a great idea, i first heard it through 'Richest Man in Babylon'. Im way behind where i should be in terms of savings and investments but im relatively debt free and im pretty frugal without suffering from 'cheapness'. Im always conscious that cutting £50 a month off bills sounds like nothing, but £600 year really stacks up, especially if compounded over the years. Ive started putting away an absolute minimum of 10% of my 'regular' income into various Vanguard ETF's and forcing myself to live off the rest but also syphoning away the extra £100 here and there, which adds up
My next step will be to look into property once ive got a sufficient capital. Ive started to learn bits about it in advance and it may be a little while off but theres lots i can do in the meantime
Another big motivating factor to educating myself is to be able to financially educate my 2 kids and 2 step-kids. My parents were of the 'if you want more money, work more hours' or 'if you want a big ticket item (car, new kitchen) just borrow' mindset. I want to be able to teach my kids to be astute and comfortable, make good money decisions and realise that even if they arent money driven then its supremely important to at least take care of it from an early age and it will do the same in return!
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How's everyone fairing so far? Noticed my finances have really gained momentum, through good habits and saving. My monthly wealth check, i'm averaging a 3k increase each month and that's through mainly saving £500 into stocks/shares, paying down debt and some trading profit.
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Agree, to have total control over your finances is the pretty much the core. There are people within FIRE that say you should not spend a penny and should save everything you can, but it's not realistic.
- Know where every penny is going, or every penny you have to commit. If you find that cashflow is low then you start analysing where you can make changes, you could be living the life of someone who needs 40k salary a year...... It's a complete mindset shift but one in a positive direction.
http://wealthhealthjourney.uk/index.php/2020/05/31/meaningful-money/
Listen to the podcasts of these guys, a financial advisor who pretty much gives out thousands of pounds worth of advice for free, ends up having chats with some of the brightest minds in investing, can't recommend it enough and it's free.
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This appeals to me also, not sure of my split but as I’ve been fortunate to be able to work from home since Lockdown my costs are reduced currently meaning I can clear more short term debt.
The area I’m not doing anything with is Savings and need to look into
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Very interesting and something I've been implementing in the last 10 months or so trying to build up a security fund and cancelling debt before reinvesting back into my stock and shares and pension. My Betfair trading account is something I would like to cover my subscriptions like sky TV etc.
On my last budget I did Im about 64% outgoings before credit card. But I'm sure other months I spend more than that.
It's knowing what to look for and to do first.
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@martin-futter let me know how it goes.
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@luke-ridger I'm going to use this example to convince my wife to do this!
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@martin-futter I come in at something like 68/10/20 when i first looked. It's under the impression if you are saving 20% a month, the compound interest that money will make you will be huge in the future. I reduced my mobile phone bill, energy bill, broadband, sky etc to keep me under 70%. Maybe a good time to reduce with companies more competitive right now.
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@luke-ridger food for thought! I need to look at my outgoings a I defo don't save 20%
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http://wealthhealthjourney.uk/index.php/2020/06/10/the-cornerstone-the-budget/
How i'm budgeting, i spent years looking for the right budget tool. 70/20/10 ratio works a treat and allows you to start building wealth, simply your expenses and bills, spending shouldn't exceed 70% of your income, if it's less than fantastic if it's more then look into what is causing this to be high, 20% of your money should be saved, depending on how risky you are, and i like risk but invested in a multitude of things mainly, ISA's because they are tax free. Vanguard do an ISA too so cheap fees and tax free, but i put money into football index, and build up my trading bank every month as well(classed as savings)
Finally 10% is to be spent paying debt back, that's excluding mortgage so if you have loans,car finance,credit cards then this is segment that pays that. It's probably a good scope if you need finance in the future, to make sure it doesn't go above the 10% but in an ideal world we would not need extra finance.
It's an uncertain time but if you have positive cashflow then you're in a really good position to build.
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One of the things i've learnt that nearly every smart investor is holding is, Vanguard funds. They are a cheap platform because they are owned by investors therefore keeping ongoing fees very cheap, they are one of the top investment funds in the world with huge amount of money invested in them, certainly if you aren't looking at vanguard as somewhere you save with, you should !
https://www.vanguardinvestor.co.uk/what-we-offer/fees-explained
List of the fees. If you are saving into stocks and shares, consider these guys first purely because the fees are low meaning it's not eroding your interest.
