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To ask if any of you feel financially secure, and if so, what does it look like...?

(165 Posts)
Sugarbeach Wed 18-Sep-13 14:24:02

Is it even possible? Is it a realistic hope/goal?

OrangeJuiceSandwich Wed 18-Sep-13 14:37:21

We are not sad but in laws are and have asked FIL this question.

He said

Owning your house outright
Owning your car outright
Having enough money in a easy access account to pay for a couple to spend 10-20 years in a decent care home
Having a really good pension.
Having all the big things you need like furniture/white goods
Not worrying that the gas bill is going to be really high after the winter or if you've been on the phone a lot this month.

Sugarbeach Wed 18-Sep-13 14:44:30

Obviously, I asked this question because I can't ever see it happening...but obviously from your answer OJS, it IS possible and a reality for some people....

Not sure if I should feel happy that it is not hopeless afterall...for some people anyway, or depressed really....

Cheryzan Wed 18-Sep-13 14:46:25

I feel financially secure because I believe I could get a well paid job tomorrow if I wanted one.

But at the moment I can pay all my bills so I'm not looking....

Inthedarkaboutfashion Wed 18-Sep-13 14:47:25

I think I would feel financially secure if I had paid off my mortgage and had more than 20k in savings.
The feeling of Financially security is subjective.

Pinkbutterfly31 Wed 18-Sep-13 14:48:29

I am 31 and have all the things above (other than the pension bit). Unfortunately it came because I lost my wonderful mum 4 years ago. It is a relief to be in this position, considering beforehand I couldn't even afford to repair my boiler, but I would trade it all for more time with her.

ifyourehoppyandyouknowit Wed 18-Sep-13 14:49:20

To me it just looks like having an income that allows you to put money into savings (for a cushion and big one of expenses) and to put money away for retirement, and enough flex each month to cope with the smaller unexpected costs. I'm not sure about owning your own house, though it does make you feel more stable, but you are probably actually less stable because you can't access the same financial support if you need it that you can renting.

Sugarbeach Wed 18-Sep-13 14:54:26

I'm sorry for your sad loss Pinkbutterfly.

Tailtwister Wed 18-Sep-13 14:54:29

I think owning your own house outright is a big one (we don't btw). Also having a good pension and healthy savings. I know how precarious the job market is, no matter how good you are. Both DH and I have been made redundant twice and were lucky enough to secure jobs again fairly quickly. However, you can't count your chickens. Jobs for life simply don't exist any more, not like in my father's day when he spent most of his life working at the same uni.

wordfactory Wed 18-Sep-13 14:58:41

Having a had a very disadvanatged childhood, I made a very early decision that financial stability was going to be central to my aims and goals.

That aim was always at the front of my mind when I made any decisions eg what degree to take, where to work, where to live, to buy or rent.

When I met DH he was a kindred spirit in this regard grin.

To be honest though, we've endlessly moved the goalposts so that our original vision of what stability looks like has become ever more ambitious. We find it very hard to rest on our laurels, which is probably to do with our backgrounds.

Sugarbeach Wed 18-Sep-13 14:59:53

How do you get a really good pension?

I've always contributed to pension pots in my various jobs, but I'm not going to be counting on my pension pots to provide me with a decent income for living...

wordfactory Wed 18-Sep-13 15:02:22

Vis a vis pensions, you have to start paying very early, and you (or your employer) have to make large contributions.

That said, I still wouldn't rely on them. Funds tank.

Pagwatch Wed 18-Sep-13 15:04:26

I am the same as wordfactory.
I was very poor growing up so I have been incredibly careful with any money we were/are fortunate enough to make.
For me having the mortgage paid, cars paid, no debt at all, pensions for all ofus including DD who is 11 plus really good savings.

It's odd, I still find myself fretting at times. I thinkthat is a hang over from childhood poverty.

Ragwort Wed 18-Sep-13 15:04:51

I am very aware that I in a much more fortunate position that many however situations do change very regularly. Our mortgage is paid off and yes, we do have more than £20k in savings however we have had our own business for a few years which is rapidly going down the pan. We will have to start up a new business (we are in our late 50s and have been looking for jobs but not even got interviews grin). Again, we are probably luckier than most in that we probably will be able to start something up - but we have very little pension so there is no question of retiring in our 60s.

My DPs are in the same position as Orange's parents - in fact my Dad has been retired for so long now that his pension is virtually the same as his salary was when he left his job grin.

Taz1212 Wed 18-Sep-13 15:04:56

I do. Without giving too many details, our mortgage is paid off, we have a substantial amount in savings and adequate pension provision for when we retire. The funny thing is, if you were to ask DH he'd probably say no! He didn't have much money growing up and I'm not sure any amount would make him feel financially secure.

Sugarbeach Wed 18-Sep-13 15:05:23

So what's your current ambition/goal wordfactory?

For me, it's not having money worries for living, funding DD's higher education, the rest of our lives if we neither of us work again through redundancy, bad health etc..

DidoTheDodo Wed 18-Sep-13 15:07:19

I own my house outright,which gives me a great deal of housing security, but I still have to work full time because it doesn't give me any income. I try to save what I would have spent on a mortgage as I am never going to have a decent pension (charity sector).
I guess everyone would give a different answer to the OP's question.

Smartiepants79 Wed 18-Sep-13 15:08:05

I feel financially secure at the moment.
Both me and my husband have jobs that are as secure as it is possible for them to be. DH earns a very good wage.
We are still both in our early thirties so we still have a mortgage but its on a very low interest rate and the payments are completely affordable.
We have life and critical illness insurance.
We are both paying into decent pensions.
If DH lost his job this would all change but he is very employable in a niche sector.
We ought to save more!

BrokenSunglasses Wed 18-Sep-13 15:08:13

I own my house and car outright, also because I lost a parent young, but I don't feel at all financially stable. I have a mediocre job, a little pension, and a very small amount in savings.

I feel like because I have those things, I have no safety net because the welfare system won't help me.

Owning a house is really no better than having a lifetime social housing tenancy. Worse if anything, because I will struggle to afford a new boiler or heating system or roof or anything else that might need replacing and there isn't a council or housing association to sort it for me.

True financial security is not easy to come by.

Sugarbeach Wed 18-Sep-13 15:14:33

I'm with you there Broken Sunglasses.

I often said to DH that even if we own enough assets to receive an income we could live on without working....our income would be no better than what we would receive in welfare benefits, even though you may have busted your guts working and sacrificing family life trying to get to that position..

RussiansOnTheSpree Wed 18-Sep-13 15:18:19

How do you get a decent pension? Travel back in time, about 25 years, and work in the public sector in a decent level job (so, teacher, manager level civil servant, police-person (any grade)). Or travel back thirty years and work for a blue chip. That's the only way. Nobody under 50 has a decent pension. Nobody. Apart from footballers. There are those who have better pensions than others, but for anyone under 50 it's a whole different ballgame.

For real financial security you need to own your house outright, and have at least £2m in the bank. Probably more. Anyone who relies on income from employment is kidding themselves if they think they are financially secure. They aren't.

wordfactory Wed 18-Sep-13 15:20:40

sugar I start each year with a figure in mind that I will earn from various sources and I keep a close eye on it.

I am also always on the look out for new business opportunities (be that setting them up, buying them or selling my exisiting ones).

And I am always on the look out for new property to buy.

Sugarbeach Wed 18-Sep-13 15:22:12

Yep, as I thought, as time travel is impossible, no hope of a decent pension for me.

GBP 2 million cash? to laugh...can't think of any other reaction to that...

RussiansOnTheSpree Wed 18-Sep-13 15:26:18

Yep. But if you think what the living wage is, and then you think what return you can get from risk averse invested cash (ie in gilts or bonds) then that's roughly what you'd need. You can get higher returns from a risky investment but that is not financial security.

Like I said. Anyone relying on income from employment is kidding themselves if they think they are financially secure. Vanishingly few people are financially secure. And of that tiny number, very few are in paid employment.

Of course most people are conditioned to live with a degree of risk, so your vision of 'secure' may not actually match the technically correct definition.

Pagwatch Wed 18-Sep-13 15:29:27

I agree that if your financial security is based upon continuing employment then it is not real.
Once I knew DH could retire tmorow I knew we were sorted.
He is only 45 so will probably keep going for a bit because frankly, having him at home would get on my nerves.

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