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Money matters

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How to educate myself on financial matters

21 replies

Pleasehelpmedress · 02/09/2023 07:28

Hi, this is a bit embarrassing but I've somehow managed to get to the age of 40 staying pretty clueless about how finances work. I've never really prioritised learning about it - I should be able to get to grips with it really (I have a PhD in a science subject 🫣)... Can anyone recommend an online course or book that I can use to stand to understand primarily mortgages, savings and pensions? Thanks!

OP posts:
Heatherbell1978 · 02/09/2023 08:11

Without trying to sound too cheeky - Google? I find these posts quite strange when there is a wealth of online information out there. 'What is a mortgage?' in Google will bring you back a lot of results. A mortgage is a loan you take out to buy a house, savings are what you put in bank accounts and don't touch (various types of bank accounts available) and pensions are savings for old age which you can't touch until you're older and the government will add 25% to whatever you put in your pot. How much you then need to know on each of these topics is available online or various podcasts.

Mislou · 02/09/2023 08:11

I am older than you and only opened my eyes to how money works about a year ago and really wish I’d done it sooner . Now I’m obsessed with listening to personal finance podcasts etc

The book ‘ The barefoot investor ‘ gives lots of step by step things to do if you want to pay off debts, pay off a mortgage fast and invest for early retirement .

The blog “ Mr money moustache “ is American but really helps people to develop intentional spending & look at the big picture so they can live off investments earlier than you’d expect using ‘ the 4%. rule” etc

Fairylight102 · 02/09/2023 08:40

Book recommendation - “Money: a user’s guide” by Laura Whateley.

ModeWeasel · 02/09/2023 08:41

Meaningful Money by Pete Matthews.

Lots of free video content from him online too.

PeachP · 02/09/2023 08:57

Second @ModeWeasel , Meaningful Money is great, there's a podcast season recently called finance OS that'd be a great start point. But I also enjoyed his book.

Martin Lewis show on ITV, you can watch on catch up

Moneybox on radio 4.

Have fun!

Zipps · 02/09/2023 10:08

Loads of stuff on YouTube

SquirrelSoShiny · 02/09/2023 10:10

Great thread!

CatusFlatus · 02/09/2023 10:11

Definitely Meaningful Money. As per PP their Finance OS (operating system) podcast series is what you need.

TooTiredToType77 · 02/09/2023 10:19

ModeWeasel · 02/09/2023 08:41

Meaningful Money by Pete Matthews.

Lots of free video content from him online too.

This bloke. Brilliant. Simple and clear. Loads of podcasts which I listened to on a family holiday driving to and around the lake district a couple of years ago!

Basically, mortgage is the cheapest debt you can have, so get a good deal and stick with it. Pay off all other debt.

Pay regularly into a stocks and shares ISA in general funds in a low cost company. I like Vanguard 100% equity fund for long term investment (ie ten years). Can reduce the equity amount as you reach retirement age.

Pay regularly into your pension.

Build an emergency fund of 6 months expenses. Keep in an easy access savings account - I like CHIP at 4.84% or Premium bonds where you don't lose money but if you don't 'win' anything then inflation is eroding the capital.

After that, it only gets complicated if you have lots of money or a big windfall. Then take advice

Meaningful money community also have Facebook group and I learn a lot from lurking in there.

Southeastdweller · 02/09/2023 11:15

Fairylight102 · 02/09/2023 08:40

Book recommendation - “Money: a user’s guide” by Laura Whateley.

Yes I agree this is really helpful.

There’s lots of good advice on here, btw. Particularly in this thread:

https://www.mumsnet.com/talk/money-matters/4858221-we-want-to-be-wealthy-a-thread-to-share-ideas-on-how-to-achieve-financial-independence

Sisterpita · 02/09/2023 18:20

Start with pensions, this has the most impact. Find the website for your pension provider and start to understand your occupational pension and how you can maximise tax free contributions. Also learn about the state pension and regularly check your eligibility https://www.gov.uk/new-state-pension

Think of it like building blocks, you can’t learn it all in one go. Slowly build up your knowledge.

This is a government website https://moneyandpensionsservice.org.uk/who-we-are/#:~:text=MoneyHelper%20is%20here%20to%20make,government%20and%20free%20to%20use.

The new State Pension

How to get and claim your State Pension, State Pension age - for men born on or after 6 April 1951 and women born on or after 6 April 1953.

https://www.gov.uk/new-state-pension

Pleasehelpmedress · 02/09/2023 18:27

That's brilliant, thanks for all the recommendations! I'll definitely look up Pete Matthews podcasts, I tend to do a lot of knitting in the winter months (when my baby actually goes to sleep at a decent time) so that seems like a realistic way to actually do some learning!

Based on my dad's advice I've already got considerable premium bonds and am putting extra into my pension so hopefully I've got some good basics there thanks to him.

I really appreciate everyone taking time to reply and will read through all the suggestions properly later.

OP posts:
DrasticAction · 02/09/2023 18:59

The simple path to wealth.

All on same path as above recommendations.

Invest money into a broad range of companies early and regularly

Pay yourself first each month (ie into saving)

Work out what you want and what you need.

Live within your means

DrasticAction · 02/09/2023 18:59

The millionaire's next door is also a good on

Combusting · 02/09/2023 19:53

My mantras (I am 38, mum of two smalls) -

  1. Use that workplace pension and employer match : If I dont I am effectively refusing a pay rise
  2. Set up savings to auto go out on pay day
  3. overpay secured debt like mortgage
  4. Give myself a personal allowance divided I to pots on accounts like Starling so I don't go near my main account
  5. Make sure I have budgeted for annual expenses not just monthly ones
  6. Rainy day pot (top up the minute it goes under threshold)
  7. Dont use more than 20% of available credit and pay off each month
  8. Have highly liquid savings in highest interest easy access account
  9. For any purchase try demotivatimg myself and if needed try vintedfreecycle etc. But do use my allowance do treat myself to little things!
  10. All that money saved? Then invest in a cheap tracker like Vanguard S&P500 or FTSE 100 by monthly standing orders forget it and leave well alone
Beenalongwinter · 02/09/2023 20:23

Someone posted a really useful
flow chart for secure finances can anyone recall what it was called?

PeachP · 02/09/2023 22:29

@Beenalongwinter This one? https://ukpersonal.finance/flowchart/

It's covered in detail in the podcast mentioned up thread - a recent season of the MeaningfulMoney podcast called Finance OS

The Flowchart - UKPersonalFinance Wiki

A starting point for your financial planning journey in 8 steps, from the wiki for Reddit's /r/ukpersonalfinance!

https://ukpersonal.finance/flowchart

Beenalongwinter · 02/09/2023 22:41

PeachP · 02/09/2023 22:29

@Beenalongwinter This one? https://ukpersonal.finance/flowchart/

It's covered in detail in the podcast mentioned up thread - a recent season of the MeaningfulMoney podcast called Finance OS

Yes that's the one.

BarbaraofSeville · 03/09/2023 05:48

Lots of good advice only thing I can add is the Martin Lewis podcast with Nihal on BBC 5 Live.

Covers typical current topics like mortgage rates and energy prices. They're off for the summer ATM, but will likely be back in the next week or two.

BuddhaAtSea · 03/09/2023 06:27

It’s an important life skill, like driving, holding down a job, reading etc.
It’s been always shrouded in dense lingo and ‘a man’s job’. So don’t feel too bad about not knowing much about it.

It’s also very personal and circumstantial, so it needs to be tailored to your circumstances.

I’ll briefly tell you about mine, and gladly answer any questions you might have.

I’m on a slightly higher than average salary. I didn’t chase promotions because my DD was small and I was already working full time, I thought it would take up valuable time and headspace. The minute she became independent, I went for promotion and got it. In the space of 10 years I doubled my salary and I am on a trajectory to further increase my salary by another 25-30%.

I have a mortgage. And insurance through my employer (they would pay off my mortgage if anything happened to me). I used a financial advisor to get my first mortgage, because I didn’t have a credit score, all the financial stuff was done (badly) by my ExH. I always overpaid, it chips away at your interest.

I have credit card ‘debt’, I simply use a 0% interest for large expenses and pay it off over time. BUT. I already have that money in savings, I could pay it all off tomorrow. I pretend I’m paying it in full, and bung the money in high interest accounts. When it comes to the end of the 0%, I pay it all off normally. There is a balance transfer fee, about 3%, if you want to bung the rest of the balance into another 0% credit card, and I don’t like paying that 😂. Plus, paying it off increases your credit score. Never use more than 30% of your credit limit.

I get paid in a FD account. I can recommend FD as a bank, they’re amazing.
From there, I feed my various accounts: one for my mortgage, one for bills (I use NatWest, they give you 3% back from your bills), one for every day expenses (food, petrol etc).

Right after the bills, I pay my savings. I love regular savings. FD has one where you put a max of £300/month and the interest is 7%. After 12 months you saved £3600. Lloyds has one at 6.25% and the max amount a month is £400, which gives you nearly £5000 after 12 months.

That’s the basic of what I do.
HTH

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