To ask if you know any "Secret option 3" secrets? how many "rules" in life are you only finding out too late?

[coffeeginandkindness]

Inspired by this scene in friends where Ross and Rachel are talking about the unwritten rules of life I was thinking what other examples there are

Some of mine are money based but i was also thinking about the thread a few weeks ago where the OP felt like she was being left behind her peers in many other ways. Even though they had all been on a level playing field at uni,

People who manage to buy two properties and let one out instead of buying a bigger house to provide passive income.

People who have limited companies as well as their paid jobs and run expenses through this to reduce their outgoings?

Are there other secrets?
Aibu to ask you share yours?

On the subject of finances, invest regularly in equities. This is my financial hack which not many people on mn seem to know about.

If you have any cash to put aside for investment and don't need the money for more than 5 years, invest in a well regarded low cost index fund (equities i.e. stocks & shares) using an ISA. Drip in the amount every month and pretty much forget about it. Instead of an ISA, a pension is also a good tax-efficient vehicle (especially if you are a higher rate taxpayer) for investing in equities. If investing for dcs, use a JISA (or its predecessor CTF).

The amount invested does not have to be large. Just invest what you can spare. The important thing is to do it regularly, adjusting the amount as you go along.

I have done so for 20 years and, whilst I have lost money in a few cases, the growth has been phenomenal in many of my investments which more than makes up. It is comparable to property but without the paperwork and stress of having to manage a mortgage or tenants or tax or dealing with deposits or large sums.

Caveat: consult an IFA who will evaluate your risk appetite and financial needs. The risk of the potential upside is you can lose capital when investing in equities. Same with property ...

Reality is that there are no 'secret' ways to wealth. People usually are given it by their parents, screw someone else over or do illegal things.
No magic key to a better life.

I'm not sure if this is a secret or a hack or anything similar.

Some shares give share holders perks. Depending on circumstances it can be worth buying the shares just for the Perk.

I have 2 nieces, over the years I have bought them jewelry - not hugely expensive but always at -15% because I bought shares in Signet, which is the company that owns H Samuel, Ernest Jones and a few others. I think I bout £50 worth and I have more than got that back.

I also get a dividend every year, only £1 or £2 but hey it's still money.

If you go on cruises it might be worth buying shares in the cruise company, they normally give you on board spending.

You can in the states for internal flights iirc.

Also, we fly via Dublin to NYC and that's into a domestic terminal as you do all the security in Dublin.

As you leave the plane, people are waiting at the gates ready to board the next one. You don't have departures and arrivals segregated.

I find this somewhat unhelpful and defeatist. If you start with nothing, the best way to accumulate wealth is through education and acquiring employable skills. Sure, there are still structural barriers throughout but many people do break out of poverty in this tried and tested way. Promoting social mobility is a huge focus for the government, schools and universities and major corporations.

It is not instant wealth but can build enough of a financial platform for the next generation to launch off even further.

Kind of the opposite of having a baby be the oldest in class. I had a September baby and didn’t even consider childcare fees. Ridiculous and stupid and I’ve grown up a whole lot since having a child, I almost can’t recognise myself as someone who wouldn’t think of this.

So my “secret” is I’m planning my conception to have a July baby because it will be almost a whole year less childcare fees. I might not conceive straight away and might end up with a September baby anyway (or October, December, March… who knows because I’m not stopping trying once I’ve started. And of course I might not end up being able to conceive a second time at all). But I’m going to at least give it a shot.

My secret life hack for anyone fortunate enough to buy/own a home is to learn about overpaying the mortgage. Many people will say they can't afford it but I remember my first statement coming through and seeing in black and white that my, for example, £800 monthly payment had resulted in only £20 being paid off the capital. I realised that if I made a further overpayment that month of say just £5, then the full £5 comes off the capital. I played with mortgage overpayment calculators and saw how small overpayments early on could lead to massive savings over the term. Then (and this is important) I read up on the bank's rules of overpaying so I could stay within them.

You’re being naive, Mumsnet just reflects what happens in the real world

Good to know.
Both my dgc are born in April.

People who have limited companies as well as their paid jobs and run expenses through this to reduce their outgoings?

I'm self-employed with a limited company and I absolutely do not do this. I expense only the things I NEED for my work. My computer. My desk. My chair. A couple of software subscriptions. IT repair charges. Business insurance. My website hosting costs. Please do not think that we are all cheating our taxes!

Re the original question, I think that for those of us without rich parents, it's less about secrets and more about making wise choices and not succumbing to social pressure to overreach/rack up loads of credit.

So everyone else has a big car on an expensive lease... well, you don't have to do that. Stuff like managing credit scores wisely too.

This might be a shock to you but sometimes people live in other countries apart from the UK.

Well those people got their comeuppance when the Covid grants were based on wages rather than dividends.

You can meet people in the departure lounge which is the next best thing. I've always been jealous of people who have someone waiting for them at the departure lounge.

This isn't really a secret hack but myself and lots of other teachers try to time their babies to be early in the academic year so that we can get paid for August and then start maternity leave. Then we can return to work the week before the summer hols and get paid for August again.

"”People who manage to buy two properties and let one out instead of buying a bigger house to provide passive income.”
I mean where’s the secret hack there?"

Yes, it's just being rich.

"Yes this! At the offer stage I always think ‘what would a man do?’ My last two jobs I’ve negotiated 20% above the offered salary without quibble."

Yeah, try that when you go for a job in a Tesco.

Indeed, I have lived outside the UK in my life. But this might shock you - Mumsnet is a UK forum.

The wealthy people I know, who have come from pretty humble backgrounds, have achieved their wealth by working their tails off. One started their career in demolition.

Whats the expression? The harder you work, the luckier you get? It’s about risk taking and a dollop of luck too.

I think something has got lost in translation here.

It is possible for a company to buy a car and for an employee (who could also be a shareholder) to be taxed appropriately on it.

It's not really fair for you to cast judgements (saying it's not moral) when you don't understand the details.

Yep.

My friend works in a school. One group of parents drive around in a top of the range car and go on amazing holidays. They're also on free school meals, which means they are probably on other benefits. They're certainly not paying tax on earnings, but they make sure they get all the things they shouldn't be are entitled to.

Drug dealers.

There is something counterintuitive about this planner vs jumper thing

i am a jumper, I have made many rash decisions in my life, intuitively, then figured out later how to make it work

it has led to some negative consequences but also positive ones, some you win, some you lose. But mostly it has given me the confidence and resourcefulness to make situations work.

I could have been a lot more rich than I am, but that was never my goal in life.

so some good, some bad, but if I had carefully thought through and planned everything, my life would have been so boring 😁

But surely they would claim the tax up front and then pax tax on the taxable benefit over time, thus spreading out the tax obligation. It's still an advantage.

Can I please just point out that not everyone is lucky enough to be able to time conception/ pregnancy with a certain month? Bloody ignorance.

How did you start on this journey? I’m in my mid thirties and what to be like this desperately but I’ve no idea where to start!

Yes it was pre 9/11 were you post 9/11?