UK Contract Workers

Never had a pension. Never will have. Any spare cash I've got goes into bricks and mortar. Garauntee, pound for pound, I'll be better off than anyone paying a large chunk of their hard earned bread into what's supposed to be a "safe" investment for their future. In about five years time I'll have a wee flat in Ibrox that I bought in '97 worth six figures, with no mortgage on it and a tenant paying four and a half tonne a month in rent. How much would a pension have cost me and how much would it now be worth in the same 16 year period?

BIGINOIL wrote:

Early repayment of any borrowing (including mortgages) makes sense. What’s the point of investing money that you are effectively paying interest on?

Exactly. Fucking baffles me why people don't see this. Bollocks to yer ISA's and their "slow and steady" returns. If you've got 7K a year to burn use it to reduce any mortgages. Common sense.

PM me for any other financial advice including tax avoidance, minor VAT fraud and acquisition of multiple mortgages while self-employed.

Seems at this point in my life I am able to save about 7%, but yet some sort of "emergency" drains that amount. Kids have really done me in (well, that and that my wife stays at home with the kids). Before I was married, was able to save up to $100,000.....now after buying a house, a couple of cars, furniture, I've been stuck at 18k, and can't seem to increase it for the last four years. Can't wait for the wife to start making a little on the side after the daughter starts school (2 more years).

But as for advice, everyone tends to spend what they earn and can't imagine living on less. However, use automatic transfer to another account if you can, and in a couple months you won't notice the dent.

Suggest first moving your money to a money market account. Its just like a checking account, except it usually makes about double the interest of a savings account. The good thing about this is to access it requires you to take a large sum out (like $250-$500, depending on the mutual fund company) this way you don't nickel and dime it. Then once you have a good buffer, you can transfer those funds from the Money Market account into other investments like 401ks; mutual funds; etc. This way you have control of your money, and how exactly you want to invest it at that moment.

(sorry stuff isn't in pounds)

Just my 2 cents.