We want to be wealthy! A thread to share ideas on how to achieve financial independence

[ilyana]

I asked a question in another forum about how to get wealthier and improve my lifestyle and financial situation in my late thirties, and I got some really helpful advice.

Several posters were keen to set up a thread to talk about topics we don't get taught about at school, such as investing in stocks and shares, lucrative side gig ideas, and air miles on credit cards, and so here we are!

This is a positive thread about encouraging other women to aim high and reach their goals, so please only contribute with positive, relevant advice. Of course, questions are very welcome too!

Thanks for the thread, @ilyana !

@CaptainJ @Secretboringsister @Parsley1234 @LimePi @Beneficialchampion2

Some of you are tagged in because your posts on the other thread were very inspiring and I'd love more of the same

A book I enjoyed and which helped me with the mindset is The Richest Man in Babylon. Literally about a man who asked the question you did, OP.

I've found a summary online here: https://www.shortform.com/summary/the-richest-man-in-babylon-summary-george-s-clason

I'm interested in this but also with an ethical slant. I fancy being financially secure but not at the cost of the planet or by investing in people being forced to work in shite conditions etc. If anyone can advise on that as well that would be most appreciated.

I am interested too. As a single mum with two kids and not much free time to work. I already have two investments which at the moment gets me 2k a month but it’s not enough for my outgoings and mortgage.

Ah just what I need . Some positive ideas for growing. @Freetodowhatiwant can you pm me the investments. I am looking to invest but at loss and can't afford any investment advisor due to lack of funds .

Could anyone recommend a good share dealing website. It’s something I’ve always fancied dabbling in. Is it worth it?

@Traceyislivid I use ii (interactive investor) for share dealing
It's quite easy to use and the portfolio page gives you a top line view of where you are up/down

I use LSE site for research, share chats

Diversification is my strategy to be safer so spread over lots of shares, looking at those with decent dividends too

Also have a sticks & shares ISA, put some in pension, own some properties, premium bonds and fixed rate savings

Looking forward to some new ideas!

I'm in. I definitely need inspiration to help me
to save up some running away money.

Do you have a link to the other thread please or was it not on MN?

Some obvious ones:

Only use credit cards with cash back or air miles and pay them off in full every month

Use Quidco or Top cash back whenever you can

Set up a discount code scraper like Honey to save on online orders

Book any hotels (including work) through hotels.com - get 1 night stay free for every 10 you buy - and use it for yourself

I use Aj bell for a second sipp pension I contribute to it when I can I have some time to go as I'm 32 so put in his moderate high risk and have seen some returns on this I consolidated some old pensions into it too
They do an ethical fund too for p who said about ethical consideration

But I'm here for the tips!

There is quite a good series on Netlflix called 'How to get Rich'. The title is a bit misleading (probably to grab people's attention[ as it's more about how to maximise your financial set-up and achieve what you think is a rich life.
The presenter analyses several people's situations and advises how to improve things and goals to aim for.

The first is always cutting out unnecessary spending, which is also good for the planet, not spending too much and /or eliminating financial services, like credit cards, mortgage, overdraft etc which come with charges.

Personally I'd like to be mortgage free, but we're a long way off that.

My investments are in property. I have never been a high earner but when EXDH and I moved in together I kept hold of the flat I had bought (back in the days of 105% mortgages) and rented it out. When we separated he ended up with the whole of the family home and I ended up with 90% of the child care (don’t ask!) so I’ve had to be creative about finding ways to support myself whilst working minimal available hours freelance. What I did was release equity from my flat to get another one. It made sense to have the same equity over two properties (minus purchase expenses like stamp duty) and have an income from each rather than the same equity with one income. I am also a very nice landlady and have always had really happy tenants! I am lucky that I have relatively low fixes on them for the next four years so will see what happens after that. My intention was to buy a third one, releasing equity again, but this depends on the rate I can get in a few months time. Might not be worth it. I have no idea about stocks and shares.

Get Smart with Money is very good too. It has 4 different advisers with 4 different family set ups

I already have two investments which at the moment gets me 2k a month but it’s not enough for my outgoings and mortgage.

this always intrigues me, what did you put it & how long ago? or is it just a property!

Personally I have s&s ISAs for myself & dc, pay AVCs, PBs & fixed saving accounts.

I think having clear goals is important, because saving will involve choices so it helps to know what you are doing it for! Also a long term mindset- my view is that buying assets and leaving them alone to grow is pretty effective! Know what you need- so money you need in the short term shouldn't be in long term investments. And thinking about what you need. I have no dependants and have downsized to be mortgage free and have more cash now so I save more. Tracking spending to be sure that what you spend on things matches what you value. I'm not anti spending but I shop in Lidl and buy fairly cheap clothes so I can have nice holidays without blowing the budget!

For investment, I'm in the industry and I'd advise buying cheap products- most fund and wealth managers make obscene profits! Index or passive funds invest across a wide spread of investments for low costs. Also accepting that things go up and down through time- many investors (amateur and professional) panic and sell when prices drop and miss any rebound. Also if buying shares directly don't over trade- buying and selling too much, especially at small volumes, means transaction costs could eat your profits.

Property can be good but have a decent float in case tenants let you down or big repairs need to happen.

My investments are in property.

I posted too soon! Tbh unless you got in the game a long time ago it's not a great return particularly if you are a high earner plus for me, ethics.

@grosslyunfair I use Vanguard & Fidelity but I often read on here that people have huge returns but mine aren't great (had them about 3 yrs).

Following this 😀

I’m popping on for some inspiration. I need to be more accountable with my spending and want to use the money and see it grow.

Property sounds attractive but the rates are so terrible atm. I don’t have an ethical problem with it either- you need landlords in order to have any available rental properties- and the lack of inventory is what is helping to push prices up.

But, I wouldn’t go for one atm purely because of the terrible rates.

@watersprites the last 3 years have been pretty volatile. I'm mostly in global equities and they have had a great longer term run. But things change - cash has been a terrible place to be for years but now a one year fix can get yo7 about 5%. Not bad if inflation eases. And bonds - last 2 years have been awful but you can get 10 year bonds at 4.3% per annum now. I try not to churn but I have added some bonds to my ISA recently.

I try to invest small amounts each month so you average out the costs, and also use products that don't pay dividends so the income is reinvested.

I’m watching with interest. I invest in property much like @Freetodowhatiwant it was triggered by divorce and needing to be financially independent whilst having dc full time. It’s grown from there but i need to diversify given property now isn’t what it was with the high cost of financing.