Page 11 | We want to be wealthy! A thread to share ideas on how to achieve financial independence

ilyana · 2023-07-26T21:53:15+00:00

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!

Moonshine5 · 03/08/2023 11:55

Hats off to you @BuddhaAtSea

Freetodowhatiwant · 03/08/2023 12:03

WineWithAView · 03/08/2023 11:38

Interesting post Freetodowhatiwant, and something I've been pondering recently.

I have no mortgage which I love. It's allowed me to do things over the last decade (like stay at home with my son for a few years, go back to university, start a business). But I'm not happy where I'm living and want to move within a year or so, and that will mean taking on a mortgage of up to £60k.

I really don't want a mortgage at my age, 50, after being mortgage free for ten years.

I've also watched the Netflix series mentioned upthread (thank you to whoever posted that) and am now reading the book. And the way he emphasizes: what does your rich life look like? got me thinking.

So although I live very frugally at the moment, and have some CC debt, I've certainly achieved some aspects of my 'rich life': mortgage free, which means I can afford to work part time and term time only, which is perfect for my family (me and son with additional needs). We manage a couple of holidays a year by living frugally in other ways, and my son wants for nothing. I have a small business which is growing and that pays for the holidays.

But, back to being mortgage free...I just keep thinking that there must be some way of making my house equity work for me. I recently thought of getting a small mortgage on my house to buy a small flat to rent out. I'm in the north, so £60k could be enough. But like you say, the interest rates at the moment make that look a lot less appealing.

And as stressful as the last few years have been and the cost of living going up etc etc it is really reassuring to know that whatever else happens, we'll always have our home. It feels irresponsible to risk that...

Anyway, I'm rambling.

Thanks for starting the thread OP. Finding it very interesting to hear people's thoughts.

To me 60k mortgage is nothing. If it meant you can live in a place you’re happier with and you can afford the monthly repayments to me that would be a no brainer. But you’re absolutely right it’s about what your rich life looks like. I have managed to set up a life where I don’t have to go to work in someone else’s office every day and I love that. Yes I would like to earn more and hopefully I can but I’ve set up a life to have some relatively passive income, an enjoyable career and plenty of time to wander round meeting friends for coffee and having my time as my own. Now I want to add in more international travel, I already do a bit but I want it to be easier and more affordable. So I want to get another investment going, again by using property equity.

chimichangaz · 03/08/2023 19:59

Very inspiring posts on here, especially @BuddhaAtSea 👏🏻👏🏻👏🏻

PerfectYear321 · 05/08/2023 22:27

I'm loving ' How to get rich'. I'm on ep 7 of 8. Anybody else watching?

roundcork · 06/08/2023 10:18

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This has been withdrawn by MNHQ at the request of the user.

PerfectYear321 · 08/08/2023 18:24

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This has been withdrawn by MNHQ at the request of the user.

The woman of the SAHD couple is financially abusive IMO

BarbaraofSeville · 08/08/2023 18:58

Yes, she completely dismissed the value of him looking after DC etc while she went off to her big job, and it sounded like he had to ask for money.

PerfectYear321 · 08/08/2023 19:18

BarbaraofSeville · 08/08/2023 18:58

Yes, she completely dismissed the value of him looking after DC etc while she went off to her big job, and it sounded like he had to ask for money.

And she spoke to him horribly in front of their kids. She doesn't respect his contribution.

PerfectYear321 · 13/08/2023 21:18

This thread has gone quiet. I guess you are all grafting, huh?

I like playing around with this calculator to see what different investment scenarios could end up as: https://www.direct.aviva.co.uk/myfuture/InvestmentCalculator

Investment calculator - Aviva

Aviva

https://www.direct.aviva.co.uk/myfuture/InvestmentCalculator

BeastOfBODMAS · 14/08/2023 12:41

I am grafting

Some of the chat around equity investing has inspired me to generate a bit of extra cash, that can be used outside of the usual budget and savings/investment strategy. So once we’ve moved I’ll look at some of the strategies from the £10 a day threads to create a pot, and then next time there’s an “oh no markets are plummeting” news day bung it in a ftse index. Rinse and repeat.
Some investment platforms like Aviva are paying a fair rate of interest on cash now, so you can afford to pick your moment.

Gadooza · 14/08/2023 13:01

Quick tip for everyone – Wise now offer 4.5% variable interest on your cash balance, with instant access.

There’s also an option to switch between that and stocks and shares investment (which is obviously higher risk) at 11% annual return. You can switch between the rates very easily.

Whichnumbers · 14/08/2023 14:49

Really interesting thread, its fascinating reading the different ideas.

I love the 3 year chunks. I have 5 year plans and this has enabled me to pay off my mortgage in a much shorter time. My first 2 5 year plans I ever made saw off of my mortgage in 15 years. Then save the money from the mortgage payments, utilising ISA accounts and some stocks, Ive picked stock that gives decent enough dividends payments, spend on holidays, many holidays and put extra in a pension.

I've always had lower paid jobs but have been able to work 2 or even 3 jobs at a time. Utilised switching banks, savings offers.

Look after the pennies and the pounds look after themselves.

I find compound interest fascinating. Fortunately Im now in a position to have interest from savings, use that to save and live on a passage income I have.

For me it wasn't about being rich but having enough that I didn't need to spend time working, time is valuable and having stopped work at 53 and can do what I want to do. Go on holiday, spend time with my grandchildren.

Greenfishy · 14/08/2023 15:25

@BeastOfBODMAS what do you mean by the £10 a day threads please?

I need to reduce my outgoings AND earn some more money so I have some cash to start with!!

BeastOfBODMAS · 14/08/2023 20:23

@Greenfishy there’s a very long running series of threads called ‘earn £10 a day’ where people do all sorts of interesting things like current account switching, surveys, market research, moderating, transcription, web testing, matched betting etc

I’ve only dipped in and read a little, there are brilliant and knowledgeable posters on there.

PerfectYear321 · 14/08/2023 21:15

Whichnumbers · 14/08/2023 14:49

Really interesting thread, its fascinating reading the different ideas.

I love the 3 year chunks. I have 5 year plans and this has enabled me to pay off my mortgage in a much shorter time. My first 2 5 year plans I ever made saw off of my mortgage in 15 years. Then save the money from the mortgage payments, utilising ISA accounts and some stocks, Ive picked stock that gives decent enough dividends payments, spend on holidays, many holidays and put extra in a pension.

I've always had lower paid jobs but have been able to work 2 or even 3 jobs at a time. Utilised switching banks, savings offers.

Look after the pennies and the pounds look after themselves.

I find compound interest fascinating. Fortunately Im now in a position to have interest from savings, use that to save and live on a passage income I have.

For me it wasn't about being rich but having enough that I didn't need to spend time working, time is valuable and having stopped work at 53 and can do what I want to do. Go on holiday, spend time with my grandchildren.

To me being rich isn't just about being able to buy fancy cars and designer handbags. I'm not actually bothered about that stuff. This is why in that Netflix show recommended earlier he asks people what their rich life looks like. You're rich because you are financially free and as you say time is the most valuable thing in life. You were able to stop working at 53- bloody hell, very well done!

PerfectYear321 · 14/08/2023 21:16

Gadooza · 14/08/2023 13:01

Quick tip for everyone – Wise now offer 4.5% variable interest on your cash balance, with instant access.

There’s also an option to switch between that and stocks and shares investment (which is obviously higher risk) at 11% annual return. You can switch between the rates very easily.

What's this about an 11% annual return?

PerfectYear321 · 14/08/2023 21:18

BeastOfBODMAS · 14/08/2023 12:41

I am grafting

Some of the chat around equity investing has inspired me to generate a bit of extra cash, that can be used outside of the usual budget and savings/investment strategy. So once we’ve moved I’ll look at some of the strategies from the £10 a day threads to create a pot, and then next time there’s an “oh no markets are plummeting” news day bung it in a ftse index. Rinse and repeat.
Some investment platforms like Aviva are paying a fair rate of interest on cash now, so you can afford to pick your moment.

Brilliant

Gadooza · 14/08/2023 21:19

PerfectYear321 · 14/08/2023 21:16

What's this about an 11% annual return?

Show quote history

Have a look on their website – you can choose between 4.5% (variable) interest or an invest option (higher risk obviously) with an average yearly return if 11%. You can switch your cash between the two whenever you want.

PerfectYear321 · 14/08/2023 21:23

Gadooza · 14/08/2023 21:19

Have a look on their website – you can choose between 4.5% (variable) interest or an invest option (higher risk obviously) with an average yearly return if 11%. You can switch your cash between the two whenever you want.

Show quote history

Ah, I see- so the normal equities "you may get less than you put in but could get this decent return" scenario. Thank you

Amboseli · 16/08/2023 11:25

@PerfectYear321 I haven't read the whole thread but I really like the idea of thinking about what rich looks like to me. I've never considered this.

For us it's more about being comfortable rather than rich and to not have to worry about money. Maybe I'm on the wrong thread!

peebles32 · 18/08/2023 22:43

But I think you already need money to get wealthy! I don't have any investments or savings and live pay check to pay check. This means I don't have any spare cash to 'invest'. Especially now with the cost of living!

Medee · 19/08/2023 15:56

If it’s not been mentioned already, the Rebel Finance School does an excellent, free online 10 week course. It’s just finished and all the videos are on You Tube.

in a nutshell

understand your net worth
understand your income and outgoings
widen the gap between the two
pay off expensive debt,
build up an emergency fund
continue widening your gap and start investing
project your FIRE point and work towards it.

User6424678852 · 19/08/2023 19:39

peebles32 · 18/08/2023 22:43

But I think you already need money to get wealthy! I don't have any investments or savings and live pay check to pay check. This means I don't have any spare cash to 'invest'. Especially now with the cost of living!

This is why you will read so many on the thread talking about a side-hustle, or drastically cutting back for a while. You can start very small.

MilkofMagnesia · 20/08/2023 00:06

There has been plenty of advice on stocks and shares and ISA already.

Be willing to relocate, I relocated to a major city knowing no one, I then met DH and we relocated again.

Never ever lend money to anyone and never ever let anyone know how much money you have.

Say no to stuff you don’t want to do, I see so much fretting on MN with people committing to stuff they don’t want to do with people they don’t even like and spending £££.

Ask for discounts and barter, I have received many discounts over the years.

Buy decent quality and only replace what needs to be replaced, consider why you are thinking of trying a new product.

Work out your entire yearly expenses, easy if you never use cash. I know what I have spent to the penny for years except lockdown year. Then make adjustments if needed.

Decide on an end goal for all this money. Mine was to retire early by 55 so I could do the voluntary work I wanted to do and then when DH joins in 2 years we will be travelling for a few years.

I was given 1k when I was 18, I invested mine and my sister spent hers immediately, understand delayed gratification as a concept.

Then the hardest part, if you want to partner up, take your time finding someone. Anyone lazy, bad with money, or too complex a life, just don’t go there, it doesn’t matter how pretty he is or amazing in bed.

Amboseli · 20/08/2023 11:01

You will not get rich by investing. You will get rich with investing in your human capital by skilling up, constantly learning and building your experience and looking for opportunities to jump the ladder and not being afraid to move job, location and even country.

I've discussed with my children the possibility of them moving to the US where wages are much much higher than the UK. It's not easy. The first step is usually to get a job in the UK with a US company. And then work your way towards transferring to the US.

I'd say spend your working career in a high wage economy and then move to a low cost country.

Reddit FIRE subs are an excellent resource for ideas.