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SarahBell

Save £60k, stop buying that coffee

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"Wear a hair shirt and starve yourself each day to save up and give us our annual HPI" - Never mind the debt and your needs, we must have HPI

 

f**king boomers

 

Edited by msi
edit: Spelling

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5 minutes ago, SarahBell said:

http://www.bbc.co.uk/news/business-37798513

 

" Stop buying, for example, one cup of takeaway coffee every day, he recommends. "



The UK economy floats on coffee. Let's put the plug on that and see how much money can be saved. 

(PS: How much turnover and tax do all the big coffee chains have?) 

It's one of a few things I did to reduce my spending.  Probably the most powerful was what I call the £0 budget.  Instead of writing down everything you spend and then looking at where you can cut back do the opposite.  Start with a blank sheet of paper and justify everything you write down.  It certainly helped me get my savings rate to well over 50% of gross earnings.

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2 minutes ago, msi said:

"Wear a hair shirt and starve yourself each day to save up and give us our annual HPI" - Never mind the debt and your needs, we must have HPI

 

f**king boomers

 

We can complain all we like here on HPC.  The question is what are we doing about it?  I joined HPC way back in 2007 and some 9 years on am still a dirty renter (and am still on HPC).  That said the choices I made while waiting for the HPC now mean my life is full of options despite not owning a home.  

The latte factor is but one of many choices we can make to help give us options going forward.

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We have a supposedly subsidised canteen at work but it is still expensive to my mind. There are a few items like soup or salad  which I consider to be value and I go in there a couple of times a week. I am always amazed in the checkout queue as people think nothing of spending the best part of six or seven quid on a lunch by the time they have got a bottle of water and a twix to go with their already quite pricey main course. Really don't know how people do it.

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It's useful info for those that have never come across this kind of budgeting before - but ultimately it's tinkering around at the edges. To really save, you need to increase your income.  But over 22 years, that £60K has likely halved in purchasing power while houses could have quadrupled or more in price.

I did like the normalisation of not being able to buy your first house before the age of 40. 

Quote

It would be the perfect nest egg, and certainly enough for a deposit on your first house or flat

 

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10 minutes ago, msi said:

f**king boomers

 

I am a boomer and can confirm that we are responsible for all the major problems on planet earth. Peeing in your starbucks is nothing to us. In fact Beelzebub is sueing us over our claim to be "world's most evilous" but he won't win.

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6 minutes ago, StainlessSteelCat said:

It's useful info for those that have never come across this kind of budgeting before - but ultimately it's tinkering around at the edges. To really save, you need to increase your income.  But over 22 years, that £60K has likely halved in purchasing power while houses could have quadrupled or more in price.

I did like the normalisation of not being able to buy your first house before the age of 40. 

 

I saw that bit.  Did that writer stop and think, even for a moment, how ludicrous it is that someone has to save until their 40 to afford to buy their own flat.  Surely that's the real story here?

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As a result of a disability known as Ehlers-Danlos syndrome, she was also entitled to some benefits.

Nevertheless, after taking part in a savings challenge organised by the government-backed Money Advice Service, she managed to save between £200 and £300 a week.

 

WTF! She can save £300 quid A WEEK. Why does she need benefits?

Also..

  • switched supermarkets, saving up to £25 a week on food

£25 a week on food should be the budget - how much was she spending to save that much?

I call the whole example total cobblers.

 

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1 minute ago, StainlessSteelCat said:

It's useful info for those that have never come across this kind of budgeting before - but ultimately it's tinkering around at the edges. To really save, you need to increase your income.  But over 22 years, that £60K has likely halved in purchasing power while houses could have quadrupled or more in price.

I did like the normalisation of not being able to buy your first house before the age of 40. 

 

I'm not sure I agree with that.  What's a cup of coffee a day?  Say £2.50.  Let's instead drink the free coffee at work for 47 weeks a year.  That's £587 saved a year.  Sure it's not a house but it's not trivial either.  Now let's invest that in an ISA and buy something like a LifeStrategy fund.  My balanced portfolio has achieved a real (after inflation) return of 4.2% including the GFC.  That £587 a year is now £7,400 after 10 years.  Again, you're not going to retire on it but do a few of those types of things and as you say increase your income in parallel and it all starts to look a bit different.

My view is that the savings part is just, if not more important, as the earning more part.  Saving has two advantages:

  • if you're saving for retirement by learning how to spend less not only do you move more quickly towards the goal posts because you're saving more but also the goal posts move towards you as the wealth needed also gets smaller.
  • if by earning more you push into a higher tax band then the bang for your energy deteriorates.

Full disclosure:  I worked at both earning more and spending less.  The end result has been a net, post tax, saving rate of 91%.

 

 

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As usual the BBC plugs saving to the plebs, yet the PTB (the banker scum) keep savings with ZIRP worthless and propertydee cheap for the 1%.

Anyone would think the banksters control the BBC.

 

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1 minute ago, spyguy said:

20 x 160 ( telly license) is a good start.

Mobile phone contract is another.  Rent a small energy efficient place is another.  Last year only needed heating for 2 days which drops the leccy bill as well.  Then do a lowest price grocery bill by buying everything that's cheapest then over the weeks spend more on the items that don't work for you by working up the price scale systematically.  No pay TV or other silly subscriptions will also make a big difference.  The list goes on... 

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4 minutes ago, CunningPlan said:

As a result of a disability known as Ehlers-Danlos syndrome, she was also entitled to some benefits.

Nevertheless, after taking part in a savings challenge organised by the government-backed Money Advice Service, she managed to save between £200 and £300 a week.

 

WTF! She can save £300 quid A WEEK. Why does she need benefits?

Also..

  • switched supermarkets, saving up to £25 a week on food

£25 a week on food should be the budget - how much was she spending to save that much?

I call the whole example total cobblers.

 

Enher danlos. Have a google. Loose joints ffs. Might be bad but i doubt it.

Theres all these wierd syndrones that people use to get dla.

Can you get up and walk? Yes, then you are not disabled ffs!

 

 

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3 minutes ago, GreenDevil said:

As usual the BBC plugs saving to the plebs, yet the PTB (the banker scum) keep savings with ZIRP worthless and propertydee cheap for the 1%.

Anyone would think the banksters control the BBC.

 

There are other options than just a savings account paying 0.00001%.  

Of course an account like that may play a part and I don't disagree that the price of risk is severely distorted.

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19 minutes ago, wish I could afford one said:

That said the choices I made while waiting for the HPC now mean my life is full of options despite not owning a home.  

 

Having STR, it is sort of liberating not being tied to a house and a mortgage. Certainly didnt have that option 5 years ago.

I could pack up and piss off whenever i want. However, the problem though is finding somewhere that will take you when over 50, thats sunny warm and speaks english.

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2 minutes ago, GreenDevil said:

Having STR, it is sort of liberating not being tied to a house and a mortgage. Certainly didnt have that option 5 years ago.

I could pack up and piss off whenever i want. However, the problem though is finding somewhere that will take you when over 50, thats sunny warm and speaks english.

What's stopping you?

For your criteria both Malta and Cyprus spring to mind.  Of course they have their faults also, nothings perfect.

Also, you'll have time on your hands so why restrict yourself to 'speaks english'?

We're still 'arguing' about Spain vs Cyprus vs somewhere outside the South East (Herefordshire?).  Have ruled Malta and Italy out.

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10 minutes ago, Wayward said:

 

...oh yes save those acorns and watch them rot in the ground

Are you suggesting that you should consume everything today and save no acorns for a rainy day?

I guess you're then planning to live off the backs of others in your dotage?  Doesn't that then make you about as bad a BTL'er...  

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Cutting out the small things in life will just make you miserable. Daily morning coffee is a treat before work. Nice lunch is a nice lunch. If I cut down lunch spend from 25 a week to 10 a week. What am I going to achieve with 15 quid apart from make myself depressed?

Much better to cut down on bigger things. For example buy a car outright for 4k rather than leasing a new one. Getting last years TV model and saving 300 quid.

Edited by 999house

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1 minute ago, 999house said:

Cutting out the small things in life will just make you miserable. Daily morning coffee is a treat before work. Nice lunch is a nice lunch. If I cut down lunch spend from 25 a week to 10 a week. What am I going to achieve with 15 quid apart from make myself depressed?

Much better to cut down on bigger things. 

Agree on the big things making a difference as well but I also think a lot of people know the price of everything and the value of nothing.

A good coffee doesn't have to come from 'Costa' and a 'nice lunch' doesn't have to come from the next door restaurant/sandwich shop.  In fact I've just had a fantastic coffee - I made it myself for a few pence.

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18 minutes ago, wish I could afford one said:

Are you suggesting that you should consume everything today and save no acorns for a rainy day?

I guess you're then planning to live off the backs of others in your dotage?  Doesn't that then make you about as bad a BTL'er...  


true. They could make savers spend money by upping interest rates and actually showing people why saving is good.

 

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20 minutes ago, 999house said:

Much better to cut down on bigger things. For example buy a car outright for 4k rather than leasing a new one. Getting last years TV model and saving 300 quid.

Best forget the home then..

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