Page 4 | 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!

roundcork · 27/07/2023 21:35

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PerfectYear321 · 27/07/2023 21:51

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That story about your kids is cute! I've been very open with mine about money and it seems to be working. My 21 year old is already very into investing the money he earns from his part time job. He's put the max into a LISA each year and has actually got a couple of his friends into investing. My younger one has just got his first job but he's extremely risk averse so wouldn't dream of investing. He is saving into premium bonds though.

I wish I had been taught this stuff before I got my first job. I would be a millionaire by now.

Original poster

ilyana · 27/07/2023 22:32

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.

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.
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.
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.
I save £1000 from my income every month and invest it in stocks and shares.
I take out every reward card going.
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.

Wow, this is really inspiring!

I'd love to know where you find the tutoring clients...are they students you met through your day job or do you use some kind of online platform? Same for the exam marking - how do you find it, and do you need to be a qualified teacher in the subject for the tutoring and the marking?

I'm 100% with you on the whole side gig thing. I have SO much spare time these days (I have health issues so barely go out) and it feels like such an enormous waste to sit watching Netflix or browsing online when I could easily be putting 20+ hours a week into a lucrative side gig. I've let myself slack off due to the health situation, but I'm really motivated now to start earning again. Just need to find something lucrative to do!

OP posts:

PerfectYear321 · 27/07/2023 22:36

Freetodowhatiwant · 27/07/2023 17:29

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.

Hi, I've got one BTL and I've thought over the years about remortgaging to get another. But obviously the recent rate hikes have made that unfavorable.

Can I please ask what kind of margins made it seem worthwhile for you? You can PM me if you're not comfortable sharing on a public forum

PerfectYear321 · 27/07/2023 22:37

ilyana · 27/07/2023 22:32

Wow, this is really inspiring!

I'd love to know where you find the tutoring clients...are they students you met through your day job or do you use some kind of online platform? Same for the exam marking - how do you find it, and do you need to be a qualified teacher in the subject for the tutoring and the marking?

I'm 100% with you on the whole side gig thing. I have SO much spare time these days (I have health issues so barely go out) and it feels like such an enormous waste to sit watching Netflix or browsing online when I could easily be putting 20+ hours a week into a lucrative side gig. I've let myself slack off due to the health situation, but I'm really motivated now to start earning again. Just need to find something lucrative to do!

Show quote history

Are you a teacher?

Original poster

ilyana · 27/07/2023 22:46

About Stocks and Shares ISAs...are they all much of a muchness? I struggle with my ADHD when overwhelmed and often end up procrastinating so much that I don't achieve anything - perfect is the enemy of good, and all that! I'm therefore wondering if it's worth spending time on researching or comparing or if I should just go with the one my bank (Santander) have on offer?

My rough plan for the short term is to finish building my emergency savings fund (I'm putting in £1000 a month and aiming for about 10K) in my cash ISA and then start a monthly transfer to an S&S ISA - does that sound like a sensible plan? I think my ISA interest rate is just under 4%, which isn't the very best, but I want the money to be easily accessible and not tied up in stocks and shares, especially now I'm a flat owner. I thought 10K or so was a reasonable amount for the emergency fund, and then after that I'll probably do £500 into investments and £500 into my high interest current account each month, with the money in that account being used for big/special non-essential purchases like holidays, concert tickets and the like and otherwise just being left to build up and earn interest. Does this sound sensible?

OP posts:

burnoutbabe · 27/07/2023 22:46

I do similar to @EnidSpyton

Always saved as much as possible from when I started working -into pension and normal savings or shares. Any payrises -straight into pension.

Spend less

Move jobs often for higher salary

Bought one 2 bed house, never moved (helped I don't want kids so that was fine for me plus partner when he moved in)

Extra income from renting out parking, doing focus groups or mystery shopping.

Annual review done of all savings accounts, interest rates to see if any can be improved. (Same time as tax return)

Investments -I do put money into shares and unit trusts but the main thing is really to find the money to save and then save it somewhere. £100 saves is great, whether you make 3% or 5% return is important in the longer term but having that £100 available is the most important thing.

Original poster

ilyana · 27/07/2023 22:50

PerfectYear321 · 27/07/2023 22:37

Are you a teacher?

Show quote history

Yes and no. I'm a qualified TEFL teacher (Cambridge/DELTA qualified, not some weekend online course!) and have taught exam classes and at universities, but I'm not a qualified primary or secondary teacher in the UK.

OP posts:

EnidSpyton · 27/07/2023 22:52

ilyana · 27/07/2023 22:32

Wow, this is really inspiring!

I'd love to know where you find the tutoring clients...are they students you met through your day job or do you use some kind of online platform? Same for the exam marking - how do you find it, and do you need to be a qualified teacher in the subject for the tutoring and the marking?

I'm 100% with you on the whole side gig thing. I have SO much spare time these days (I have health issues so barely go out) and it feels like such an enormous waste to sit watching Netflix or browsing online when I could easily be putting 20+ hours a week into a lucrative side gig. I've let myself slack off due to the health situation, but I'm really motivated now to start earning again. Just need to find something lucrative to do!

Show quote history

I get all of my tutees through word of mouth recommendations - siblings of former pupils, friends of former pupils, people my friends who also tutor don't have time/the expertise to tutor, so they pass them on to me, and so on. I don't advertise. I used to years ago but I don't need to anymore. There are plenty of online platforms for tutoring, but I find they're just inundated with students charging £20 an hour. There are some agencies out there who do accept unqualified people as tutors if they have the right professional/academic experience, but I don't use them so couldn't recommend any.

Exam marking is something only qualified teachers can do - you have to have taught for a minimum number of years at the level and in the subject you're examining and have QTS. I mark for two exam boards and it is lucrative, but obviously only open to experienced teachers. However, in many industries there are professional examinations that need assessors, so that could be an option for you if you're not a qualified teacher.

Side hustles are really where it's at!

strongcupofTea · 27/07/2023 23:02

jackstini · 27/07/2023 17:18

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

Sorry but those things aren't going to make you wealthy 🤣

PerfectYear321 · 27/07/2023 23:08

EnidSpyton · 27/07/2023 22:52

I get all of my tutees through word of mouth recommendations - siblings of former pupils, friends of former pupils, people my friends who also tutor don't have time/the expertise to tutor, so they pass them on to me, and so on. I don't advertise. I used to years ago but I don't need to anymore. There are plenty of online platforms for tutoring, but I find they're just inundated with students charging £20 an hour. There are some agencies out there who do accept unqualified people as tutors if they have the right professional/academic experience, but I don't use them so couldn't recommend any.

Exam marking is something only qualified teachers can do - you have to have taught for a minimum number of years at the level and in the subject you're examining and have QTS. I mark for two exam boards and it is lucrative, but obviously only open to experienced teachers. However, in many industries there are professional examinations that need assessors, so that could be an option for you if you're not a qualified teacher.

Side hustles are really where it's at!

Show quote history

I love this! I'm not a teacher but this would be very inspirational to me if I was. V valuable advice regarding word of mouth versus online.

PerfectYear321 · 27/07/2023 23:10

strongcupofTea · 27/07/2023 23:02

Sorry but those things aren't going to make you wealthy 🤣

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They won't but if you're following the thread you'll know one of the things OP wants is to travel business class when she goes to NY

Please take your negatively elsewhere

Original poster

ilyana · 27/07/2023 23:11

EnidSpyton · 27/07/2023 22:52

I get all of my tutees through word of mouth recommendations - siblings of former pupils, friends of former pupils, people my friends who also tutor don't have time/the expertise to tutor, so they pass them on to me, and so on. I don't advertise. I used to years ago but I don't need to anymore. There are plenty of online platforms for tutoring, but I find they're just inundated with students charging £20 an hour. There are some agencies out there who do accept unqualified people as tutors if they have the right professional/academic experience, but I don't use them so couldn't recommend any.

Exam marking is something only qualified teachers can do - you have to have taught for a minimum number of years at the level and in the subject you're examining and have QTS. I mark for two exam boards and it is lucrative, but obviously only open to experienced teachers. However, in many industries there are professional examinations that need assessors, so that could be an option for you if you're not a qualified teacher.

Side hustles are really where it's at!

Show quote history

Thanks! I guess teaching naturally leads to some lucrative side hustles because of all the networking and word of mouth! I don't really want to be competing with students charging rock bottom rates so will have a think about what I could do. I looked into online English teaching, but it's also a really saturated market. I enjoy proofreading, but it feels like you earn peanuts for the work you put in.

I think it's definitely important to make sure the side hustle is lucrative - £100 an hour is amazing for online tutoring and no travel time/hassle!

OP posts:

Hawkins0001 · 27/07/2023 23:11

The books rich dad poor dad are some good reading.

Original poster

ilyana · 27/07/2023 23:19

PerfectYear321 · 27/07/2023 23:10

They won't but if you're following the thread you'll know one of the things OP wants is to travel business class when she goes to NY

Please take your negatively elsewhere

Show quote history

Yes, exactly! It's not just about the big things - little hacks here and there really add up!

Is anyone familiar with the air miles credit cards? I've been looking into the British Airways Amex, since I usually fly with them. From what I understand, the main benefit of earning Avios is to be able to get a Companion Voucher, which you can then use to upgrade to the next fare class. I have heard it's actually quite hard to do this in practice, as most flights only have a small number of reward seats, or something like that. Does anyone have any info or tips about this?

OP posts:

Hawkins0001 · 27/07/2023 23:21

It's similar to when eg you spend £3 -4 on a Costa each day 10 days that's £30-40 over a year that all adds up

PerfectYear321 · 27/07/2023 23:31

ilyana · 27/07/2023 23:19

Yes, exactly! It's not just about the big things - little hacks here and there really add up!

Is anyone familiar with the air miles credit cards? I've been looking into the British Airways Amex, since I usually fly with them. From what I understand, the main benefit of earning Avios is to be able to get a Companion Voucher, which you can then use to upgrade to the next fare class. I have heard it's actually quite hard to do this in practice, as most flights only have a small number of reward seats, or something like that. Does anyone have any info or tips about this?

Show quote history

I've looked into it off the back of this thread but it looks like if you spend £12k you still will only get economy tickets. That's how I read it but I could be wrong, please double-check: www.americanexpress.com/uk/credit-cards/ba-credit-card/

jackstini · 27/07/2023 23:35

@strongcupofTea - actually those specific things paid for us to have a 24 day holiday in the USA last year, which then enabled me to put the money planned for holiday into investments; which doubled - so yes it did!

Those particular tips are about freeing up cash so you have something to start investing with on your 'get rich' journey

User6424678852 · 27/07/2023 23:36

Great thread

Original poster

ilyana · 27/07/2023 23:40

PerfectYear321 · 27/07/2023 23:31

I've looked into it off the back of this thread but it looks like if you spend £12k you still will only get economy tickets. That's how I read it but I could be wrong, please double-check: www.americanexpress.com/uk/credit-cards/ba-credit-card/

Show quote history

I think you can use the Avios to, for example, upgrade from premium economy to business, but not totally sure. I find the entire process extremely convoluted and difficult to understand, which is why I've put off looking into it.

If I thought it was worthwhile, I'd be happy enough to do pretty much all my spending on the Amex and get the £12K a year, but it seems like a lot of faff.

OP posts:

SpaceRaiders · 27/07/2023 23:40

I follow the FIRE subreddit which gives a great insight into what others have done. I only wish that I’d have started in my early 20’s when I was child free because DD’s are now my biggest expenditure. I’d be a retired millionaire far sooner, if it wasn’t for paying school fees! Oh well only another 9 years to go!

I agree on the side hustles, I currently have one that brings in 7-800 pm and I also make use of the rent-a-room allowance by hosting foreign exchange students. I can easily make a decent 17k per annum on that alone. My next income stream should bring in 2-3k per month once up and running. Then I have my business income. I’ve spent the last number of years throwing every single penny I had getting it off the ground, so I’ve not saved quite as much as I’d have liked. No pension yet either. The idea is the business will provide an income well into my 80’s and beyond, between that and my investment properties I should continue to have a decent level of income.

RegentCafe · 27/07/2023 23:48

ilyana · 27/07/2023 23:19

Yes, exactly! It's not just about the big things - little hacks here and there really add up!

Is anyone familiar with the air miles credit cards? I've been looking into the British Airways Amex, since I usually fly with them. From what I understand, the main benefit of earning Avios is to be able to get a Companion Voucher, which you can then use to upgrade to the next fare class. I have heard it's actually quite hard to do this in practice, as most flights only have a small number of reward seats, or something like that. Does anyone have any info or tips about this?

Show quote history

You need to read
headforpoints- search on google for BA companion flights headforpoints
https://www.headforpoints.com/

or the Flyertalk BA thread

Explains it all it great detail

You then need a seatspy subscription to track availability

Head for Points — Maximise your Avios points and frequent flyer miles

Maximise your Avios points and frequent flyer miles

https://www.headforpoints.com/

PerfectYear321 · 27/07/2023 23:57

ilyana · 27/07/2023 23:40

I think you can use the Avios to, for example, upgrade from premium economy to business, but not totally sure. I find the entire process extremely convoluted and difficult to understand, which is why I've put off looking into it.

If I thought it was worthwhile, I'd be happy enough to do pretty much all my spending on the Amex and get the £12K a year, but it seems like a lot of faff.

Show quote history

Same. I'll rely on you lot to help me figure it out because I've got so much going on and can't take out another credit card while doing this remortgage anyway! Sounds promising, though!

PerfectYear321 · 27/07/2023 23:59

SpaceRaiders · 27/07/2023 23:40

I follow the FIRE subreddit which gives a great insight into what others have done. I only wish that I’d have started in my early 20’s when I was child free because DD’s are now my biggest expenditure. I’d be a retired millionaire far sooner, if it wasn’t for paying school fees! Oh well only another 9 years to go!

I agree on the side hustles, I currently have one that brings in 7-800 pm and I also make use of the rent-a-room allowance by hosting foreign exchange students. I can easily make a decent 17k per annum on that alone. My next income stream should bring in 2-3k per month once up and running. Then I have my business income. I’ve spent the last number of years throwing every single penny I had getting it off the ground, so I’ve not saved quite as much as I’d have liked. No pension yet either. The idea is the business will provide an income well into my 80’s and beyond, between that and my investment properties I should continue to have a decent level of income.

Is that subreddit American?

HeWhoDaresWinsRodney · 28/07/2023 00:03

Great thread. In a financially precarious position, once I realised how stupid I’ve been (not entirely my fault, family pressure) I went back to work worked part time as childcare costs would be too much at full time, he wont pay towards childcare and I’m not entitled to benefits because he earns too much but unmarried so I’m stuck! he doesn’t let me pay bills officially as then I could put a claim on the house as nothing is in my name but I pay for kids school meals, wrap around care, shoes uniform piano lessons etc. stuff he can afford to pay for easily but won’t so I do and I’m happy to spend on my kids but even then I count the pennies when they want too much for their hobbies. Before I was working he was controlling but now he can see I have my own money he’s reigned it in abit but I’ll never forgive how he’s treated me so I’m constantly obsessing about money as he withheld it from me and did not let me make any decisions as I wasn’t contributing financially. So I’ve become quite ‘shallow’ and I’m constantly thinking about it! Not what I wanted to become but I have had to learn lessons and realise money is very important in life esp as a woman. Have scrimped and saved (no nice things for myself) and managed to put together £70k but I’ve become so risk averse i don’t know what to do with it, lost a lot of confidence in myself so feel stuck as I want to make this money grow, only thing I can think of is a btl and then do more once I go full time. Have some shares which aren’t increasing in value so might just sell. Anyway sorry for the unnecessary story I’m following this thread with interest!