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My own experience at 24.


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On ‎05‎/‎10‎/‎2018 at 15:24, Bradbury Robinson said:

I had a handful of pensions floating around and wanted to consolidate them into one place. Partly for ease of access and also that I knew most of them were taking quite high fees. I thought speaking to an advisor might have been the way to go but in the end sorted myself out with HL, splitting the total pot up into a number of funds split across a few regions and industries. It may work or it may not but at least now it is in my hands.

The reason(s) I didn't go with the advisor were:

  1. Charging a % fee of the overall pot rather than a set fee for advice.
  2. Suggested no way to monitor their performance over the old pension or in general.
  3. Continually pushed for annual reviews which, again, charge a fee.
  4. Continually brought up other areas such as life insurance, which I had never asked for.

 eems to work - using a very crude version of @wish I could afford one strategy I add everything up once a week, been away to the States on holiday so cash depleted a little. My stuff is Equities/bonds/Cash/Gold/Silver/Cars/Bikes/P2P/property (my house)  Point is last check 16/9 just checked now after three pretty  poor weeks for equities and total is down £7k on a sum that is comfortably 7 figures. Might be less of a loss because for prudence I write the vehicles down as if they were in a company but the majority have stayed the same or gone up ie VW GTE - can't get one new, trading for £2k more than I bought my 2 year old manufacturer approved one in April

Really convinced that the key is low to moderate risk investments spread as broadly as possible using low cost providers and perhaps dabbling in things you love mine being cars and bikes (which is handy because it is transport as well)

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1 minute ago, GregBowman said:

Seems to work - using a very crude version of @wish I could afford one strategy I add everything up once a week, been away to the States on holiday so cash depleted a little. My stuff is Equities/bonds/Cash/Gold/Silver/Cars/Bikes/P2P/property (my house) lending. Point is last check 16/9 just checked now after three pretty  poor weeks for equities and total is down £7k on a sum that is comfortably 7 figures. Might be less of a loss because for prudence I write the vehicles down as if they were in a company but the majority have stayed the same or gone up ie VW GTE - can't get one new, trading for £2k more than I bought my 2 year old manufacturer approved one in April

Really convinced that the key is low to moderate risk investments spread as broadly as possible using low cost providers and perhaps dabbling in things you love mine being cars and bikes (which is handy because it is transport as well)

Tracking spending has been an incredibly valuable pursuit for me because it makes you think about every purchase as you're going to hold yourself accountable for it later.  It makes me at least ask the question - does this bring an improvement to our quality of life - before I open the wallet?

Tracking wealth was also a real motivator and it also let's you know where you are against your goal.  I was once told that you get the results of what you measure and that is definitely true in this regard.  I went at my FIRE plans pretty hard and when you're running hard against the herd it can be a little lonely at times.  Looking at something like this makes you realise you're doing the right thing for you and the family:

180714-7.png

Like you I also went fairly moderate when it comes to investment risk.  I knew I was going to achieve the goal by earning more, spending less and by investment return.  As I had 3 pillars I didn't need to sweat investment return vs risk meaning I had more surety on my end date.  In the end I still made it quicker than planned.

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8 hours ago, sam1994 said:

I sell physical goods. We do HW + SW.

We don't data harvest but we have a lot of users. Things like mailing lists and telemetry for things like bug reports were hassle for me to get right legally. 

SW is delayed because of VATMOSS. The EU has chosen to fight tax evasion. This means that if you sell a single eBook online, you would need to fill out a VATMOSS return or submit a VAT return in the country of the customer you sold to. To prove you sold to the customer in their country. at the correct VAT rate, you need to collect several pieces of non-contradictory data. All hassle. I think this is the side of the EU that a lot of people don't know about. It definitely stifles innovation. A competitor in the US beat us to market because of this; simply because of a lack of regulation here.

What a nightmare GDPR is. For digital goods I use Fast Spring who deal with VAT for all EU member states. I guess your company might not fit that kind of arrangement?

Something as simple as the tracking code on a webpage for a sign-up confirmation email requires tracking consent. A person signing up to my list would click to confirm, but then also need to click to allow tracking so I can see they have confirmed. Now I don't bother with double opt-in.

8 hours ago, sam1994 said:

All manufacturing and shipping from UK. People will pay for quality and I don't bother with the lower pricing. Better to have 10-20k customers annually that value service; that you can respond to adequately because you have resources than 10x at the same profit margin who receive a more rushed, impersonal service.

Good to know you do manufacturing in the UK. My prices are cheap but I exist in that kind of market while costs are low and fixed.

8 hours ago, sam1994 said:

I don't translate my product data yet beyond compliance statements; but that will change in the next year or so. We have good markets in Scandinavia and Germany. They seem to have a good level of disposable income. 

Cheers,

Impressive. I want to translate eventually. The prospect of after sales customer service in foreign language is something to consider.

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39 minutes ago, wish I could afford one said:

Tracking spending has been an incredibly valuable pursuit for me because it makes you think about every purchase as you're going to hold yourself accountable for it later.  It makes me at least ask the question - does this bring an improvement to our quality of life - before I open the wallet?

Tracking wealth was also a real motivator and it also let's you know where you are against your goal.  I was once told that you get the results of what you measure and that is definitely true in this regard.  I went at my FIRE plans pretty hard and when you're running hard against the herd it can be a little lonely at times.  Looking at something like this makes you realise you're doing the right thing for you and the family:

180714-7.png

Like you I also went fairly moderate when it comes to investment risk.  I knew I was going to achieve the goal by earning more, spending less and by investment return.  As I had 3 pillars I didn't need to sweat investment return vs risk meaning I had more surety on my end date.  In the end I still made it quicker than planned.

I am looking at your book across the table now deserves a much wider audience. I am an entrepreneur and still work because I do enjoy it but know that's a sort of addiction. Problem for me is  I can quite easily persuade myself that swopping my Audi TTS out for a rare Brera TBi Italia adds to my quality of life as I did on a whim yesterday

However seriously 5 years ago that would of been a £35k second hand Maserati with some on finance rather than a £2k out of cash to change 

I know you aren't out there to change the world (I Think) but the concept applied to high earning typically self employed actually is quite stunning because it reverses the I will make so I will spend it mentality (reckless but key really to getting stuff going)

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15 minutes ago, GregBowman said:

I am looking at your book across the table now deserves a much wider audience. I am an entrepreneur and still work because I do enjoy it but know that's a sort of addiction. Problem for me is  I can quite easily persuade myself that swopping my Audi TTS out for a rare Brera TBi Italia adds to my quality of life as I did on a whim yesterday

However seriously 5 years ago that would of been a £35k second hand Maserati with some on finance rather than a £2k out of cash to change 

I know you aren't out there to change the world (I Think) but the concept applied to high earning typically self employed actually is quite stunning because it reverses the I will make so I will spend it mentality (reckless but key really to getting stuff going)

I'm really glad that some of what I waffle on about agreed with your way of thinking - it's why I stay at it as you certainly aren't getting rich from a non-mainstream publication like my work.  I keep at the blogging and wrote the book not to change the world but more just to show that there are some different ways to approach life out there.  I don't mind if people read it and choose not to act on any of it - the sad thing IMHO would be if they never knew what was possible.  The approach is definitely Marmite though - you only have to look at my book reviews with everything from pretty scathing 1*  reviews through to glowing 5*.  I don't know how much longer I'll keep at it though as I've now nearly achieved the goal I set out to achieve in 2007.  It's now time to start thinking about what's next in life.

That is a nice motor you have there.  I had a friend with a knackered old Alfasud which we lovingly repaired (continuously LOL).  The grins for bucks ratio was incredible.

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On ‎07‎/‎10‎/‎2018 at 02:55, sam1994 said:

I earn a fair bit over £76k; I'm not sure where that figure came from on this post

Just FYI I think it started life as "at least £76k" on the grounds that's how much you need to earn as a minimum if you're fully using pension and ISA allowances ;)

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This thread got me thinking about my own circumstances in my twenties (and thirties) in NW.

Back in the day, I bought a house for £58K in 1988. At the time, HPI was about £1000 a month  and the house went up to about £75K before settling to about £55K, so luckily, negative equity wasn't an issue during the first 80's "high IR crash".

For the next 8 years, the high IR meant that I had to rent 2 rooms out to survive, and I lived in the small box room. Wasn't all bad - I remember it being a great time and made some great friends from the lodgers I took in.

Anyway, 8 years later, I now had a wife and kids and I was trying to move to a bigger house. It eventually sold it for £59K. At the time, there was a huge glut of 3 bed semis for sale.

Now why am I saying this? Well until my thirties, I had a normal job with normal pay and because of 2 severe recessions at the  time, it was difficult enough to survive, let alone save. Then it all happened, I managed to get a fantastic job that paid really well - Serious money. After 2 years in this new job, I had cleared all debts and had some savings and we had enough to move.

Now all of this sounds great, but the thing is this - It was only possible for me to do something after I had got a job that paid many times more than before. Until that time, all I could do was barely survive for 8 years 

I think the best advice is this - get a really well paid job, because without one, you're financially f*ked, no matter what anyone says

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5 minutes ago, rockerboy said:

 

I think the best advice is this - get a really well paid job, because without one, you're financially f*ked, no matter what anyone says

great ! any 300k a year jobs going ?  i have a lovely terraced two up two down i have my eye on.  a snip at 800k 

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13 minutes ago, longgone said:

great ! any 300k a year jobs going ?  i have a lovely terraced two up two down i have my eye on.  a snip at 800k 

Yep, agreed - I wish I knew  - All of us are proles, just thrashing about. 

From what I've seen, the "dailymail dreams" of how to get rich are usually based on people saying "Times were hard but I always saved, and now look at what I've achieved?".  Cue a load of coupon savers etc. That's all well and good. It makes the proles think they have some sort of control over their lives, but surely this advice has to be compared to the real cost of things? (e.g. you house for £800K)

I personally think its less cruel to tell the truth, than make a badly paid supermarket cashier think they can be rich.

In your case, maybe the only option is to move away from where you are to places where you can afford to buy? (sincerely meant btw) 

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2 hours ago, rockerboy said:

Yep, agreed - I wish I knew  - All of us are proles, just thrashing about. 

From what I've seen, the "dailymail dreams" of how to get rich are usually based on people saying "Times were hard but I always saved, and now look at what I've achieved?".  Cue a load of coupon savers etc. That's all well and good. It makes the proles think they have some sort of control over their lives, but surely this advice has to be compared to the real cost of things? (e.g. you house for £800K)

I personally think its less cruel to tell the truth, than make a badly paid supermarket cashier think they can be rich.

In your case, maybe the only option is to move away from where you are to places where you can afford to buy? (sincerely meant btw) 

well they try to instill hope by working hard and playing the lottery ?  more tax to give to single trollop mums and more money to questionable good causes. no doubt the good causes fund is paid out to corrupt tories through bogus tender arrangements for stately home refurbishments and what not.  

sadly my stupidity was my undoing by not buying in 2008 had a nice bulk of cash put by on my 30th birthday. same houses are 3x the price now.  

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11 hours ago, rockerboy said:

This thread got me thinking about my own circumstances in my twenties (and thirties) in NW.

Back in the day, I bought a house for £58K in 1988. At the time, HPI was about £1000 a month  and the house went up to about £75K before settling to about £55K, so luckily, negative equity wasn't an issue during the first 80's "high IR crash".

For the next 8 years, the high IR meant that I had to rent 2 rooms out to survive, and I lived in the small box room. Wasn't all bad - I remember it being a great time and made some great friends from the lodgers I took in.

Anyway, 8 years later, I now had a wife and kids and I was trying to move to a bigger house. It eventually sold it for £59K. At the time, there was a huge glut of 3 bed semis for sale.

Now why am I saying this? Well until my thirties, I had a normal job with normal pay and because of 2 severe recessions at the  time, it was difficult enough to survive, let alone save. Then it all happened, I managed to get a fantastic job that paid really well - Serious money. After 2 years in this new job, I had cleared all debts and had some savings and we had enough to move.

Now all of this sounds great, but the thing is this - It was only possible for me to do something after I had got a job that paid many times more than before. Until that time, all I could do was barely survive for 8 years 

I think the best advice is this - get a really well paid job, because without one, you're financially f*ked, no matter what anyone says

What you have missed is that wage inflation during the 80s was averaging around 8%. Statistically I would have expected you to find a job paying much more money because... salaries were increasing quickly!

Just looking at this in terms of aggregates, in the 80s just by treading water and not saving anything you (in the collective sense) were effectively paying 8% off your mortgage per year because your salary was increasing and your mortgage was fixed.

When wage inflation is high, mortgages rapidly become more manageable. Barely anyone seems to recognise this. This is why there was a 'housing ladder'. Once you'd paid your mortgage for a couple of years you could afford something bigger. Maxing out debt was the right thing to do because in a few years inflation would erode it away.

Incidentally there isn't a ladder any more, now wage inflation is about 2%.

https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/kgq2/qna

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2 hours ago, bushblairandbrown said:

What you have missed is that wage inflation during the 80s was averaging around 8%. Statistically I would have expected you to find a job paying much more money because... salaries were increasing quickly!

Just looking at this in terms of aggregates, in the 80s just by treading water and not saving anything you (in the collective sense) were effectively paying 8% off your mortgage per year because your salary was increasing and your mortgage was fixed.

When wage inflation is high, mortgages rapidly become more manageable. Barely anyone seems to recognise this. This is why there was a 'housing ladder'. Once you'd paid your mortgage for a couple of years you could afford something bigger. Maxing out debt was the right thing to do because in a few years inflation would erode it away.

Incidentally there isn't a ladder any more, now wage inflation is about 2%.

https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/kgq2/qna

Thats right,and before Labour got in last time wages used to go up RPI+1% most years in most decent sized employers.Labour put tax credits up RPI+3% or more every year and wages went up CPI or less.Thats why instead of workers getting slowly better off than none workers it became quite silly to work.Saying that in many parts of the north east houses are lower inflation adjusted than in 1990.

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7 hours ago, durhamborn said:

Saying that in many parts of the north east houses are lower inflation adjusted than in 1990.

Sure but boomers didn't pay their mortgages off because their houses were cheap when they bought them. They paid their mortgages off because their salaries shot up in subsequent years. 8% growth over 10 years compounds to a 116% pay rise. 2% over 10 years compounds to a little over 21%.

This is also why home owners did much better financially than renters even ignoring capital gains. Today renting is obviously extortionate but in the 80s the rip off was concealed by the fact that rents went up every year while a mortgage stayed fixed. 

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1 hour ago, bushblairandbrown said:

fact that rents went up every year while a mortgage stayed fixed. 

+1. Rents go up quicker. Mortgage payments can be fixed for 5 years and remortgage to get new deal as long as interest rates remain low. I dont see interest rates rising too fast in next 10 years as we're having brexit. Economy won't be tanked to appease renters unfortunately. 

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26 minutes ago, Simhadri said:

Economy won't be tanked to appease renters unfortunately. 

The economy already tanked, that's why younger people have worse economic prospects than their predecessors. Falling material living standards = tanked economy.

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2 minutes ago, Dorkins said:

The economy already tanked, that's why younger people have worse economic prospects than their predecessors. Falling material living standards = tanked economy.

I am not sure about that, if houses were cheap I would say that this is a great time to be alive.

(I know it is a big thing, not minimising it).

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23 hours ago, rockerboy said:

 

I think the best advice is this - get a really well paid job, because without one, you're financially f*ked, no matter what anyone says

Like you I also rented out a room to different friends over time that wanted to escape from living at home, worked out really well at the time £45 per week, all had a job paying £600 to £800 pm.... all-inclusive, helped pay the bills...great party days.

How much do you think you would need to earn net per month to have a well paying job?.....what if that job was on a short-term contract.....how can anyone then take on debt and other commitments if the well paying job only lasts 18 months, future unknown??

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55 minutes ago, iamnumerate said:

I am not sure about that, if houses were cheap I would say that this is a great time to be alive.

(I know it is a big thing, not minimising it).

Yes, it is impressive that politicians have managed to take a time which is pretty peaceful, there is plenty of food, not much disease, the arts and science and technology are progressing etc and turn it into an uphill slog for most people under 45 for the sake of a few numbers on some spreadsheets in the City.

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15 minutes ago, iamnumerate said:

I don't but apart from the cost of university (sorry I forgot that) and housing, what is bad about today economically compared to the past?

so a decent education somewhere to live food and energy prices everything else is ok ?.

sounds like all the actual essentials you need are inflated and all the other crap you don`t is cheap.  

 

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9 minutes ago, longgone said:

so a decent education somewhere to live food and energy prices everything else is ok ?.

sounds like all the actual essentials you need are inflated and all the other crap you don`t is cheap.  

 

I am not saying that it is good, there are just two things which are bad.  Sadly they are very important things although one of them (housing) could have been fixed very easily by different Government policy.

 

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5 minutes ago, iamnumerate said:

I am not saying that it is good, there are just two things which are bad.  Sadly they are very important things although one of them (housing) could have been fixed very easily by different Government policy.

 

too much greed in the world to ever sort it.  will the next generation be as greedy though as the boomers.  hard to tell. 

every problem in the world can be tracked back to greed. 

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3 minutes ago, longgone said:

too much greed in the world to ever sort it.  will the next generation be as greedy though as the boomers.  hard to tell. 

every problem in the world can be tracked back to greed. 

Personally as most people don't really benefit from HPI but think they do, I blame stupidity but to each their own.

When I traded up a few years ago, my flat had gone up by a lot, however because the other place had also gone up, HPI had cost me about £30K.  So had been bad for me, however very few people could understand this, even when I showed them the calculations.

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5 minutes ago, iamnumerate said:

Personally as most people don't really benefit from HPI but think they do, I blame stupidity but to each their own.

When I traded up a few years ago, my flat had gone up by a lot, however because the other place had also gone up, HPI had cost me about £30K.  So had been bad for me, however very few people could understand this, even when I showed them the calculations.

unless you are moving to something within the same postcode even that calculation does not work as different areas command different prices . but yes 20% of 500k is 100k vs 20% of 200k  at 40k  = 60k more to find to trade up fag packet  calculation.  life is a hamster wheel. The hpi forever mantra only works for those at the top of the chain who can downsize mainly the boomers. 

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