Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

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

285 replies

ilyana · 26/07/2023 22:53

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!

OP posts:
Thread gallery
7
PerfectYear321 · 27/07/2023 18:56

watersprites · 27/07/2023 18:50

It's also possible now to put money in your pension with the aim of taking the tax free lump sum on retirement to pay off the mortgage - that may be better than overpaying your mortgage out of taxed income.

I moved into the public sector for the pension & do AVCs for this reason

Can you tell me more about this please? I'm in a public sector pension scheme but I don't think I will receive a lump sum. The blurb online is clear as mud and I emailed them with a question almost three weeks ago and still haven't received a reply even though it says a reply will be in ten working days 💀

redmapleleaves1 · 27/07/2023 18:56

I have a stocks and shares isa with Stocks and Shares ISA | IWeb Share Dealing (iweb-sharedealing.co.uk) as their trading costs are low (and were lower when I joined them). You can compare different platforms and their costs on monevator.com Broker comparison: cheap investment platforms UK (monevator.com) Good tip around looking at trading costs, it is much cheaper for me to save via my pension and additional voluntary contributions, as my employer (a university) pays the additional trading costs there.

Two books I'd really recommend: Secrets of Six Figure Women by Barbara Stanny; Money or your Life by Vicki Robin. Also Secrets of the Millionaire Mind. Also found Paul McKenna I can make you rich (and cd) really helpful for reframing richness I have now. E.g. Gets you to consider what a rich life would look like for you... for me included big skies and nice views. Capsule action towards that was to buy a garden bench. Still in a suburban garden nowhere near the sea, but spend much more time outside drinking a cup of tea and appreciating the sunset (over the housing) and butterflies.

Stocks and Shares ISA

If you like the look of our Share Dealing Account but also want to invest within an ISA, our Stocks and Shares ISA might be just what you are looking for.

https://www.iweb-sharedealing.co.uk/our-accounts/self-select-stocks-and-shares-isa.html

Cherryana · 27/07/2023 18:58

Hello, I am joining you because I recently turned true middle aged and it felt like I was hit by a sack of 'what if's and if only' I had thought more about money 15 years ago. So far my plan was to follow the Dave Ramsey baby step plan.

PerfectYear321 · 27/07/2023 19:00

Speedweed · 27/07/2023 18:45

If you're thinking long term, have a look at how your pension is invested before investing in a tracker fund outside of a pension, otherwise you won't get the tax benefits or the reduced fees your company will have negotiated. You can usually swap the funds comprising your pension about, and change the spread/amount etc.

It's also possible now to put money in your pension with the aim of taking the tax free lump sum on retirement to pay off the mortgage - that may be better than overpaying your mortgage out of taxed income.

Another good programme available on you tube is Til Debt us do part, with Gail Vaz oxley (?), and she also has various spreadsheets available.

Great tip about the pension lump sum. I forgot most pension schemes have that. I don't think mine does though.

watersprites · 27/07/2023 19:01

@PerfectYear321 so I'm in local gov scheme. We have the option of taking a lump sum (at retirement which I think is better as who knows how long you will live). You can also pay in additional contributions whatever you like, a colleague does 1k. It's tax efficient as it comes out of salary before & is another form of saving. When you take it later it's tax free.
Does that help?

PerfectYear321 · 27/07/2023 19:02

redmapleleaves1 · 27/07/2023 18:56

I have a stocks and shares isa with Stocks and Shares ISA | IWeb Share Dealing (iweb-sharedealing.co.uk) as their trading costs are low (and were lower when I joined them). You can compare different platforms and their costs on monevator.com Broker comparison: cheap investment platforms UK (monevator.com) Good tip around looking at trading costs, it is much cheaper for me to save via my pension and additional voluntary contributions, as my employer (a university) pays the additional trading costs there.

Two books I'd really recommend: Secrets of Six Figure Women by Barbara Stanny; Money or your Life by Vicki Robin. Also Secrets of the Millionaire Mind. Also found Paul McKenna I can make you rich (and cd) really helpful for reframing richness I have now. E.g. Gets you to consider what a rich life would look like for you... for me included big skies and nice views. Capsule action towards that was to buy a garden bench. Still in a suburban garden nowhere near the sea, but spend much more time outside drinking a cup of tea and appreciating the sunset (over the housing) and butterflies.

I've got the Stanny book but every time I start it I don't get past the first few chapters. I might try again but do you have any good tips you can share from the book?

grosslyunfair · 27/07/2023 19:06

@redmapleleaves1 I love that concept of thinking about what it looks like to you! I worked in a high paid industry and saw so many people earning what would be life changing money for many just spending mindlessly and working long hours to earn more. It really cemented for me that rich for me meant free to choose how I spent my time, with whom, and how much time devoted to work and progression. I'm not there yet but it started me on thinking how to do it and saving.

watersprites · 27/07/2023 19:06

So I plan to take a smaller lump sum because of my AVCs so I still get a lump sum but still have a pension.

PerfectYear321 · 27/07/2023 19:11

watersprites · 27/07/2023 19:01

@PerfectYear321 so I'm in local gov scheme. We have the option of taking a lump sum (at retirement which I think is better as who knows how long you will live). You can also pay in additional contributions whatever you like, a colleague does 1k. It's tax efficient as it comes out of salary before & is another form of saving. When you take it later it's tax free.
Does that help?

That sounds good

PerfectYear321 · 27/07/2023 19:18

I was planning on taking out a credit card to do some stoozing, but I'm now wondering if I should look into an airmiles card instead.

Has anyone done stoozing? Basically you take out a 0% purchases credit card (the longest is currently about 23 months) and buy everything on there (food, petrol, clothes etc). The money you would have spent builds up in your current account and you transfer it to a high interest account. At the end of the deal you pay off the card and pocket the interest. Then take out a new card and rinse and repeat. It's basically free money but you obviously have to be disciplined.

For example if you normally spend £800 a month, this X 23 is £18,400. If you stick that in a 5% savings account that's £920 interest. For doing nothing. The interest won't be as much as that because you've not had the whole £18,400 as a lump sum in the account for 23 months, but you get the gist- I'm sure it will still be a decent amount. Some clever person will have a formula to work out the interest.

jackstini · 27/07/2023 19:19

@PerfectYear321 I have a Virgin card as they have a good bonus on application, plus my Tesco reward points auto convert into double virgin points too

They sometimes have special deals on but here is a link to current top ones

www.moneysavingexpert.com/credit-cards/airline-credit-cards/

I also have a cash back Amex (best rate) & cash back MBNA (for when they don't take Amex!)

watersprites · 27/07/2023 19:28

I've had a rough few months & Ive fallen back into bad habits of spending money on shit I don't need eg jewellery, takeaways so I need some accountability.

fyn · 27/07/2023 19:29

Someone might have suggested it but there is a really good book called ‘rich dad, poor dad’ that I’d recommend.

BeastOfBODMAS · 27/07/2023 19:39

PerfectYear321 · 27/07/2023 19:18

I was planning on taking out a credit card to do some stoozing, but I'm now wondering if I should look into an airmiles card instead.

Has anyone done stoozing? Basically you take out a 0% purchases credit card (the longest is currently about 23 months) and buy everything on there (food, petrol, clothes etc). The money you would have spent builds up in your current account and you transfer it to a high interest account. At the end of the deal you pay off the card and pocket the interest. Then take out a new card and rinse and repeat. It's basically free money but you obviously have to be disciplined.

For example if you normally spend £800 a month, this X 23 is £18,400. If you stick that in a 5% savings account that's £920 interest. For doing nothing. The interest won't be as much as that because you've not had the whole £18,400 as a lump sum in the account for 23 months, but you get the gist- I'm sure it will still be a decent amount. Some clever person will have a formula to work out the interest.

I would like to give this a go too as I’m pretty disciplined on budgeting. Once the dust has settled on our planned move as can’t stooze and remortgage!

I think the ideal would be to combine it with a few of the stupidly high interest monthly savings accounts that banks and building societies offer to existing customers, even though you are limited to paying in a small amount each month

e.g Lloyds have a 5.5% monthly saver and Skipton have a 7.5%

EnidSpyton · 27/07/2023 19:57

You can read all the books and invest in all the stocks and shares you like, but ultimately to really make and save money you need to have capital, and that comes from being smart with your spending and maximising your assets in terms of your skills, time and possessions.

  1. Cut out unnecessary spending. I went on a budget course and was forced to put everything I spent every month into a spreadsheet. I was HORRIFIED at the amount I had frittered away on coffees and lunches/breakfasts when I couldn't be bothered to make my own, on public transport journeys I was too lazy to walk, on clothes/jewellery/plants/flowers/general trinkets I didn't need and bought on impulse. I also spent a huge amount on regular pops to the shop for extras I fancied on top of my weekly shop, leaving food already in my fridge to rot and go to waste. Cutting down on all of this by always making my own food and coffees for work, forcing myself to wait a week to buy anything I think I want (most of the time I don't actually want it that badly), not letting myself buy any extras on top of the weekly food budget, and buying what I do need second hand wherever possible (and selling what I no longer wear) has probably saved me about £500 every month, because all those small purchases really do add up. Over the course of a year, that's £6000, which could be in a high risk investment ISA earning you money.
  2. I use my skills to earn extra cash. I am a secondary school teacher in a core subject. I do online tutoring around my other commitments and I charge £100 an hour. At the moment I have 3 regular tutees. This earns me about £6000 on top of my salary every year, which I invest in a high risk investment ISA. I also do exam marking every winter and summer which is a ball ache but in the space of just over a month I earn £6000 from it. So on top of my already fairly good teaching salary, I top it up by £12000 from a few extra hours a week done in my own home to my own schedule.
  3. I use my spare room to earn extra cash. If I need some extra money for something, I rent out my spare room as an Airbnb or as a short term lodger arrangement for a couple of months. It's a bit inconvenient, but as I live in London, I can get a good amount of money in and depending on the year, I can earn up to £10,000 from this. All invested! I also have a car parking space that I don't use as I don't have a car, so I rent this out - it normally brings in about £200 a month.
  4. I save £1000 from my income every month and invest it in stocks and shares.
  5. I take out every reward card going.
  6. I don't have a credit card and only spend what I have.

I've been doing all of this for a good ten years and I'm mortgage free with over £200k savings in the bank at 37. I live alone and don't have kids, which helps, but I am a good steward of my money and I also use what I have to the max. Do I always want to come home from work and tutor someone? No, I'd rather watch Netflix. But giving up an hour earns me £100. Do I always want to share my flat with someone else? No, not really. But I can handle a bit of inconvenience for £800 extra per month. Lots of people have spare rooms and spare time they could be using to make money. It's all very well investing money wisely, but you've got to have the money to invest in the first place. You can't just expect to sit on your arse and put a bit of money in stocks and shares and suddenly become rich - it doesn't work like that.

I do all this so I can have freedom from work, and choices over where I live and how I spend my time. I have a clear goal of being able to work only 2 days a week by the time I'm 40, and to be able to move to a countryside cottage with a sea view and a big garden where I can have a totally different lifestyle and time to pursue my hobbies. I am on track for this and that keeps me motivated.

PerfectYear321 · 27/07/2023 20:00

BeastOfBODMAS · 27/07/2023 19:39

I would like to give this a go too as I’m pretty disciplined on budgeting. Once the dust has settled on our planned move as can’t stooze and remortgage!

I think the ideal would be to combine it with a few of the stupidly high interest monthly savings accounts that banks and building societies offer to existing customers, even though you are limited to paying in a small amount each month

e.g Lloyds have a 5.5% monthly saver and Skipton have a 7.5%

Show quote history

I'm in the same boat! Currently remortgaging and have an offer in place for when my deal ends in December. But if I take out a card and build up a bit of a balance I'll be snookered if they do another credit check in December! They'll be like what the hell has happened in the last few months?! 🤣

Completely agree about the regular saver accounts. We'd probably need to open more than one because as you say they only let you pay in small amounts like £300 a month

burnoutbabe · 27/07/2023 20:01

LeavesOnTrees · 27/07/2023 17:19

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.

Yes it's a good show and covers both couples who are in debt
Plus couples who have money but not making best of it.

I am also watching him on YouTube -more couples there (can also just listen as a podcast)

In the USA there is a FIRE concept freedom in retiring early -those people are hardcore about money.

Dotcheck · 27/07/2023 20:06

Following with interest

BeastOfBODMAS · 27/07/2023 20:09

@EnidSpyton I am in awe of your discipline and motivation! I’d also add investing in yourself - diverting time and savings or fun money into extra qualifications that will increase earning power in the medium to long term.

watersprites · 27/07/2023 20:12

@EnidSpyton How have you managed to be mortgage free in London at 37?!

PerfectYear321 · 27/07/2023 20:15

EnidSpyton · 27/07/2023 19:57

You can read all the books and invest in all the stocks and shares you like, but ultimately to really make and save money you need to have capital, and that comes from being smart with your spending and maximising your assets in terms of your skills, time and possessions.

  1. Cut out unnecessary spending. I went on a budget course and was forced to put everything I spent every month into a spreadsheet. I was HORRIFIED at the amount I had frittered away on coffees and lunches/breakfasts when I couldn't be bothered to make my own, on public transport journeys I was too lazy to walk, on clothes/jewellery/plants/flowers/general trinkets I didn't need and bought on impulse. I also spent a huge amount on regular pops to the shop for extras I fancied on top of my weekly shop, leaving food already in my fridge to rot and go to waste. Cutting down on all of this by always making my own food and coffees for work, forcing myself to wait a week to buy anything I think I want (most of the time I don't actually want it that badly), not letting myself buy any extras on top of the weekly food budget, and buying what I do need second hand wherever possible (and selling what I no longer wear) has probably saved me about £500 every month, because all those small purchases really do add up. Over the course of a year, that's £6000, which could be in a high risk investment ISA earning you money.
  2. I use my skills to earn extra cash. I am a secondary school teacher in a core subject. I do online tutoring around my other commitments and I charge £100 an hour. At the moment I have 3 regular tutees. This earns me about £6000 on top of my salary every year, which I invest in a high risk investment ISA. I also do exam marking every winter and summer which is a ball ache but in the space of just over a month I earn £6000 from it. So on top of my already fairly good teaching salary, I top it up by £12000 from a few extra hours a week done in my own home to my own schedule.
  3. I use my spare room to earn extra cash. If I need some extra money for something, I rent out my spare room as an Airbnb or as a short term lodger arrangement for a couple of months. It's a bit inconvenient, but as I live in London, I can get a good amount of money in and depending on the year, I can earn up to £10,000 from this. All invested! I also have a car parking space that I don't use as I don't have a car, so I rent this out - it normally brings in about £200 a month.
  4. I save £1000 from my income every month and invest it in stocks and shares.
  5. I take out every reward card going.
  6. I don't have a credit card and only spend what I have.

I've been doing all of this for a good ten years and I'm mortgage free with over £200k savings in the bank at 37. I live alone and don't have kids, which helps, but I am a good steward of my money and I also use what I have to the max. Do I always want to come home from work and tutor someone? No, I'd rather watch Netflix. But giving up an hour earns me £100. Do I always want to share my flat with someone else? No, not really. But I can handle a bit of inconvenience for £800 extra per month. Lots of people have spare rooms and spare time they could be using to make money. It's all very well investing money wisely, but you've got to have the money to invest in the first place. You can't just expect to sit on your arse and put a bit of money in stocks and shares and suddenly become rich - it doesn't work like that.

I do all this so I can have freedom from work, and choices over where I live and how I spend my time. I have a clear goal of being able to work only 2 days a week by the time I'm 40, and to be able to move to a countryside cottage with a sea view and a big garden where I can have a totally different lifestyle and time to pursue my hobbies. I am on track for this and that keeps me motivated.

I am in awe! Amazing. You are right. 🙌

I have bit of a side hustle using skills from my day job too. It can earn me ~£100-£200 a week at the moment. The thing is I get on average £100 an hour from it after tax but there is just not a high enough volume of it- ie that £200 a week is just two hours a week after work.

This is the kick up my bum I need to try and put more effort into getting more customers because I sure as hell don't earn £100 an hour after tax from my day job. So it makes no sense to do 37 hours a week on my day job and just two on the lucrative 'side hustle'.

EnidSpyton · 27/07/2023 20:19

Thanks very much @BeastOfBODMAS - absolutely agree about the self investment - I have studied for two MA degrees that have helped me progress up the career ladder much more quickly, and get jobs in prestigious schools that pay a higher salary. My MA degrees have paid for themselves in the salary increases they've given me, and I enjoyed the study, so it was a win-win!

@watersprites - I bought a dilapidated ex council flat for well under market value for the area after having saved a sizeable deposit, so I didn't have a huge mortgage to start off with. Then doing all of the steps outlined above have enabled me to overpay by about £1000 every month, which has kept interest very low, so last year I managed to pay it off entirely.

watersprites · 27/07/2023 20:24

Well done!

RegentCafe · 27/07/2023 20:25

Do you honestly want to know?

Work hard at school
Go to a good university
Get a decent job. Work 70 hours a week plus for 15 years
Go back to work when your children are 3 months old- maternity leave destroys careers

Is that enough?

By 55 you will be benefiting!
Was it worth it? Who knows?

Traceyislivid · 27/07/2023 21:23

@jackstini thanks! I went onto money saving experts page and saw that one recommended. It’s always good to hear from someone who has used it.