Ydobon's Independence Referendum

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sterlingarcher
Posts: 57
Joined: Wed Dec 03, 2014 4:48 am

Re: Ydobon's Independence Referendum

Post by sterlingarcher »

I know the feeling. Excitement several days before payday. And when it finally arrives the joy is gone within minutes.

On payday I remain with 5.000 to cover food after all transfers are done. So the rest of the month is spent micromanaging these pennies, trying to remain with an extra 500 or 1000 before next payday. So basically trying to create some surplus from money I mentally consider "spent".
Something that helps me stay positive about these small contributions is annualising them, ie. "if I can save an extra 1000/month on average it will mean 12.000 in a year which means an extra 480 in annual interest, just enough to support my monthly toilet paper consumption" and then proceed to head to the toilet.

I get paid for any extra hours I work above the usual 40, so I have this chart at home where I put green color into squares with dollar signs in them representing the value of each hour. That way the extra time I spend at work easily translates into extra money mentally and I set goals for working X amount of extra hours each week/month.

As much as the fun is over just seconds after the salary ticks in I constantly look for ways to make an extra penny throughout the month. Maybe I find something in the house I don't need that has resale value, find a small job listing online or try to find some way to avoid costs. Example: this month I postponed my dentist appointment so that I can wait another month to pay that bill. I might even end up cancelling it because I don't have any teeth issues right now.

These are "games" I play that seems to keep me focused but motivation does take a drop sometimes.

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

Thanks for that sterlingarcher, I'm also always on the lookout for ways to make some extra money, albeit in a more modest manner. For me, that's usually taking advantage of risk free gambling offers, although I'm at the mercy of the bookmakers who can offer what they like, when they like.

I like the idea of annualising, that might offer another way to think about it. Also, I've gotten out of the good habit of turning a saving/avoided cost into an investment (i.e. if I save £x, I should be paying it into my savings pot for more funds if it's a one-off, or increasing my automatic payment if it's an ongoing saving). I used to do that, so thanks for reminding me.

No real prospect of overtime here, but I also use spreadsheets and websites to help visualise the value of my time spent at work. Heck, if I get bored enough, I'll sometimes calculate my hourly wage from compound interest/investment growth and watch the pennies creep up.... I'm easily bored :mrgreen:

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GandK
Posts: 2059
Joined: Mon Sep 19, 2011 1:00 pm

Re: Ydobon's Independence Referendum

Post by GandK »

Ydobon wrote:
Congrats on the baby from a fellow INFJ parent!
Thank you :)

Have you found any aspects of parenting to be more challenging as an INFJ? I have some worries about my natural introversion getting in the way of the kid socialising as it grows up, but I suspect I'll just 'man up' and make sure that he/she has a chance to go to all the usual parties, activities etc. My parents were very much wrapped up in each other when we were growing up, I often wonder if my development into an INFJ was partly as a result?

I agree on the savings front, we're very much focused on keeping cash at the moment, investing is taking a back seat. At the same time, I hope to ramp this up once we feel comfortable with the new costs of childcare we'll face.
Introversion was a constant issue when my youngest was a toddler. Like his dad, he's extremely outgoing, and it was hard for me to be always on. Even your very favorite people you sometimes need a break from, but you usually can't get a break from your kids. Not as often as you need, unless you're imposing on your partner, which causes a different set of problems.

I didn't have a problem with the kids' activities. It's easier to socialize when I'm doing it for them than if I'm doing it for myself. Having a mission (my kid's happiness) seems to take away my social inhibitions. Also, when you don't want to interact with other parents, you can focus on your child. You have a built-in, perfectly polite reason not to socialize.

My INFJ personality became an issue more as the kids got older, in the realm of meeting their needs. INFJs are almost psychic when it comes to detecting others' needs and motivations. You will get to the point where you're so aware of your kids that you're doing things for them before they ask, and always saying just what they need to hear. Not in a helicopter parent way, but in an "I know you so well I can finish your sentences" way.

That's great, right? Well, yeah, but the problem is that INFJs are rare. Probably nobody else will ever have that degree of understanding with your child. Not their other parent, not their friends, not their teachers, not their future employers... or their spouse. That means your kid will always run to you when they have a problem. And if you step in every time you see an unmet need, your kid doesn't learn to speak up for themselves and articulate what they want and need, which is what they HAVE to do in order to interact in a healthy way with the other 99% of society. They also become frustrated with others who don't "get them" like you do. While that can create a close bond between you and your child, it can also make them deeply dissatisfied with other people. And obviously, the older they get, the bigger a problem that becomes.

So more than anything else, I've had to learn to back off as my kids get older. If my teenager doesn't specifically ask me to act on his behalf, I won't do it. If he isn't explaining himself clearly, I'll ask questions even if I know what he meant just to force him to articulate. My biggest job is to prepare him for life outside of our door. That means gently teaching him, as he interacts with me, how to interact with others. The good news is that your INFJ empathy - while creating this problem - can also solve it. ;)

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

Thank you for that thoughtful and detailed response, everything I'd expect from an INFJ :)

I've read it several times now, and it has provided real food for thought. It's interesting to hear what sounds like changes for you in how you behaved, but also the pitfalls of being a parent who 'gets' people. In fairness, that's been a curse for much of my adult life, not so much reading a book by its cover as speed reading personalities :lol:

I'm looking forward to being a parent, and do seem to strike up rapport with nieces and nephews very quickly. Toddlers seem to think I'm great fun, but I will definitely need to come up with some coping strategies for energy drain.

Your comments on stepping back are particularly noted. It's all to easy to be 'intense' as an INFJ and children do not react well to parents when they get worked up.

Must work on skills in patience...

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

February Update

Post by Ydobon »

Although we didn't put as much money by in February, this month saw a massive landmark for us, £100,000+ including pensions :D

Positives:
  • Baby is thriving, c. 3 months to go
  • Let go off work stress before getting home on at least one occasion (seriously massive achievement for me)
  • Achieved £100k net worth
  • Recycled, donated, re-purposed and threw out a significant amount of clothing, miscellaneous tat and other things that were cluttering our home
  • A good month for extra income, as well as savings and investments I have significantly more fun money left than I *started* the month with. Have started selling some items online as well, should provide some extra cash for the March total
  • I'll be honest, the current batch of homebrew is tasting a little green, I will probably spend a little more next time. An extra £0.10/pint is not too crazy.
  • Still making sourdough every couple of days, have been experimenting with the technique and am now rivalling FIL (a chef)
  • Have started to read more frequently, currently on a Jack London junket
  • Applied for a job that would only be a 3% pay rise to begin with, but would come with increments and would see me at +23% over 3 years
  • Went on a Lean Six Sigma training course, will be good for my CV and the project I am now working on should bring some quick wins that will make me look a lot smarter than I am :lol:

Negatives:
  • Far too much caffeine, this is affecting my anxiety and I am picking my hands to shreds :oops:
  • A few luxury purchases, including a new smart phone for c. £100 (that said, phone is of a standard that I can do much of my online activities from the couch, which I could never do with my monster old laptop
  • Struggling to extricate myself from some historic work duties that a more confident person would have got rid of long ago. Trying to keep my cool and am making an effort to kick these into touch.
  • Yet to start my half marathon programme for 2015

February
  • Net worth exc. Pensions: £29,889.48 (+£1,837.88 from last update)
  • Net Worth inc. Pensions: £101,640.39 (+£2,545.08 from last update update)
  • Savings rate: 57.43% net (i.e. after tax) (7.44% higher than January). Although we saved less in total, our savings rate went up because the increase in our net worth was more to do with keeping money this month and less to do with reducing liabilities. That, or I ballsed up the January calculations...
  • Progress towards goal: 20.33% (+0.51% from last update). Target has been simplified, is now £500k (for my reference)

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GandK
Posts: 2059
Joined: Mon Sep 19, 2011 1:00 pm

Re: Ydobon's Independence Referendum

Post by GandK »

Glad the little one is doing well, and congratulations on reaching 100k!

There's a recent thread floating around about how long it took everyone to get to 100k, and then from 100k to 200k. Be sure to check it out and post your own timeline.

bottlerocks
Posts: 85
Joined: Mon Jul 14, 2014 1:51 pm
Location: Magicant (WalkScore: Pajamas)

Re: February Update

Post by bottlerocks »

Ydobon wrote: Went on a Lean Six Sigma training course, will be good for my CV and the project I am now working on should bring some quick wins that will make me look a lot smarter than I am :lol:
Are you getting your Green Belt through the program? I'm taking a SQC course right now where you earn GB in the spring, BB in the fall. I've been wondering if it's actually a marketable certification or not.

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

Are you getting your Green Belt through the program?
The current one is for yellow belts, so it's quite basic. On the upside, the project will only take a couple of months. Past that point, green belt is an option if I show any aptitude. I think it has applications for quite a few careers (for example, I'm coming at it from an IT service improvement angle and it seems quite applicable). For me, it's a way to show I'm maintaining skills before the next career step up.
Glad the little one is doing well, and congratulations on reaching 100k!
Cheers, although it might be a while before we reach 200k :lol:

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

March update

Post by Ydobon »

Bless me Father, for I have sinned! March was a total joke in terms of ERE, but quite successful in terms of getting stuff done.

Positives:
  • Finished all significant spending for baby stuff, all furniture assembled and house returned to normal (for now).
  • Didn't get the job I applied for, but got some helpful feedback that I will be able to use for my next application.
  • Got food budget back under control after going way off track during February.
  • Got our bathroom redecorated to a great standard for a relatively low total cost. The work was far better than I could have achieved by myself (plastering etc.), which is important as we're not planning on staying here long and nobody likes to see a grotty bathroom when they're viewing a property.
  • Made a substantial amount of passive income (c. 33% of my monthly wage), ploughed a good chunk of this back into investments, with more to follow.
  • Read two light non fiction books (pop history sorts of things), think I need to work harder at expanding my horizons!
Negatives:
  • A piss poor month for savings, our cash total increased by next to nothing, although investments were all good.
  • Was relatively successful cutting caffeine, but need to work harder to maintain it.
  • Niggling back pain after a back injury last year doesn't seem to be going anywhere, frustrating.

March
  • Net worth exc. Pensions: £31,153.05 (+£1,263.57 from last update)
  • Net Worth inc. Pensions: £103,934.85 (+£2,304.36 from last update update)
  • Savings rate: no idea, spreadsheet is duff, will redo.
  • Progress towards goal: 20.33% (+0.46% from last update). Target £500k.

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

I would like to learn German - has anyone tried Duolingo?

April:
  • Liquid Assets: £15,982.55 (+£1,301.59 from last update)
  • Net Worth: £105,240.17 (+£1,305.32 from last update update) <<<--- mostly Mr Market
  • Savings rate: 57.39%
  • Progress towards goal: 21.06% (+0.73% from last update). Target £499,700. <<<--- I have reviewed our budget and we spend less than I think. I will be reducing the target required by £1/mth/year from now on in.
Positives:
  • Wife and baby remain very healthy, this may be my last update as a DINKY
  • Got a free 270 mm of loft insulation installed, the flat feels way warmer already. The weather has also improved, heating has not been used this month
  • Removed the old washing lines from the back garden and replaced them with shiny new ones, only a couple of £ each
  • Kept up the momentum with gambling offers and had some great luck (including £350+ from risk free offers)
  • Learned how to profit from several more complex horse racing offers, this has expanded my range greatly. It is, however, bringing its own complications, horse racing requires a far larger float to allow for leverage at higher odds
  • Started walk commuting to work (ok, started today) :lol: The money saved on bus tickets will be ploughed into investments
  • Improved my diet quite a bit. Sticking to high protein, low fat and carb lunches that leave me feeling a lot fuller. I have also stopped drinking alcohol on work nights and have cut my overall consumption quite a bit.
Negatives:
  • Loft insulation installers damaged a lighting circuit that had to be replaced. Original electrician tried to scam us into wasting £3,000+ on a full rewire! Luckily I got a second opinion (who vociferously disagreed with the original assessment). Some people, eh? :o
Last edited by Ydobon on Tue May 26, 2015 5:44 am, edited 4 times in total.

DSKla
Posts: 240
Joined: Wed Dec 24, 2014 11:07 am

Re: Ydobon's Independence Referendum

Post by DSKla »

I've tried duolingo for Spanish and highly recommend it as a free, easy access way to get started. At some point you will need to find conversational opportunities, but if you have little to no German, it'll give you the building blocks.

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

Thanks DSKla, it's good to get some 'real life' feedback for a product before giving it a try. Then again, as it's free, it's not as if I have anything to lose.
  • Electrics fixed (we ended up paying c. £100 vs. the £3,800 quoted!). No problem with that, the works that were completed are ones that you're legally obliged not to carry out unless you are qualified :o
  • Walking to work again this week, day 1 felt a lot more comfortable with a wicking running Tshirt on, wore cotton last week and got too warm
  • Have adjusted our budget for a couple of things (reduced travel and heating costs, increased home maintenance costs)
  • Increased monthly payment to S&S account, we'll be investing a minimum of £850 between pensions and tax-priviledged accounts from now on (minimum 26.69% savings rate)

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

May:
  • Liquid Assets: £17,205.64 (+£1,223.09 from last update)
  • Net Worth: £107,190.88 (+£1,950.71 from last update update)
  • Savings rate: 62.22%
  • Years to go vs. average +£/m: 20.10
Positives:
  • I am a Dad! Healthy baby girl born a week ago, luckily for her she has inherited her mother's looks :D
  • 5 weeks of paternity leave (statutory leave + long bank holiday + a big chunk of my annual leave budget)
  • No household maintenance or repairs required
Negatives:
  • Having a baby is proving extremely challenging to my sensibilities as an environmentally friendly human. Hopefully we will be able to get her onto the fabric nappies soon, but it seems like every day involves full bins, several loads of laundry and having the heating on at times when we never would have considered it previously. Still, what price do you put on a happy sleeping baby? :lol:
  • Having a baby is very expensive! There are more gizmos, necessary items and consumables for babies than I could ever have imagined. Some are absolute crap (for example, a vibrating bouncer that takes fancy batteries that cost 1/3 of the cost of the seat), some seem daft, but are indispensable (like a breast pump that cost £100, but turned around my wife's experience of childcare overnight!)
  • Passive income from gambling promos has died right down as the main soccer leagues have finished for the year, this will mean a drop in income until August. I have also been banned from a few bookies for making too much free money :o
Looking forward to my remaining 4 weeks off, will hopefully find some time to read with a baby perched on my arm and get in some exercise as well.

vexed87
Posts: 1521
Joined: Fri Feb 20, 2015 8:02 am
Location: Yorkshire, UK

Re: Ydobon's Independence Referendum

Post by vexed87 »

Congrats Ydobon, both on your new baby and being so good at making money that you got banned :lol:

I look forward to hearing how baby impacts your plans for ERE as I'm guessing its not too long until I'm in your boat too! ;)

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

June

Post by Ydobon »

Quick update

June:
  • Liquid Assets: £18,052.17 (+£814.53 from last update)
  • Net Worth: £108,289.48 (+£1,066.60 from last update update)
  • Savings rate: 42.61%
  • Years to go vs. average +£/m: 22.51
Positives:
  • Paternity leave was *brilliant* fun, a great combination of sleep deprivation and hugs :D
  • I am starting to fill in the blanks in my financial planning and am now tracking baby-specific and general expenses. I figured that I couldn't save anything until I knew what I was spending. Grim reading so far, but sticking with it
  • Went for a 5k run yesterday, my first exercise in goodness knows how long
Negatives:
  • Work messed up my salary, I have been short changed by something like £600. I will get it back, but less than impressed
  • June was one of the spendiest months of my life! Still, 40% feels like a success this month

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

July:
  • Liquid Assets: £19,560.72 (+£1,149.47 from last update)
  • Net Worth: £109,896.69 (+£1,662.21 from last update update)
  • Savings rate: 53.15%
  • Years to go vs. average: 21.79

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Ydobon's Independence Referendum

Post by thrifty++ »

Ydobon have you thought about including your student loan, home equity component of your mortgage payments, and pension payments into your savings rate? I include my student loan payments and superannuation payments as part of my saving rate. Rather than make me feel like I can get away with less I find it more motivating to save to a greater extent when I see a good saving percentage. After all it does go towards increasing the net worth.

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

Re: Ydobon's Independence Referendum

Post by Ydobon »

thrifty++ wrote:Ydobon have you thought about including your student loan, home equity component of your mortgage payments, and pension payments into your savings rate? I include my student loan payments and superannuation payments as part of my saving rate. Rather than make me feel like I can get away with less I find it more motivating to save to a greater extent when I see a good saving percentage. After all it does go towards increasing the net worth.
That's an interesting idea Thrifty++ and I do include elements of what you have suggested. My pension payments are included in my savings rate as they are direct contributions into equities. I am less sure about home equity and student loan repayments. Both would make our savings rate look far more impressive than I feel that it is. Home equity would add roughly 12.5%, student loans 3.05% (an extra 15%+).

Home equity I feel more comfortable with, student loans not so much. Because our loans are income contingent, they are effectively an optional graduate tax. If we earn too little, we won't pay them and while they will grow, have interest added etc., the proportion of our wages that we pay towards them won't increase even if we paid nothing for years and the amount due increased dramatically). It is possible that I will 'retire' without paying off my student loan, although less likely if my wages increase over time.

The effect of including both categories would be to raise my savings rate for the current calendar year to just over 65%. That feels pretty damn good :D

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Ydobon's Independence Referendum

Post by thrifty++ »

Boom 65% is huge! So that really is quite good then. I think it is genuinely fair enough to consider those other elements as savings. Just not in a narrow definition of saving it into a bank account.
Yep my student loan is similar. I don't have to pay any student loan until I earn over $19k and then its 12%. There is no interest on it at all. So given those things I shouldn't care that much about it. But it still bugs me as if I leave NZ for 6m or more then it gains interest. And $19k wont be enough passive income for me to retire on. So im keen to get rid of it.
Do you have interest on your student loan in Scotland ?

henrik
Posts: 757
Joined: Fri Apr 13, 2012 5:58 pm
Location: EE

Re: Ydobon's Independence Referendum

Post by henrik »

I also think it makes sense to count loan principal payments in savings rate, because 1) your net worth goes up and 2) when you're done with the loans that same monthly/yearly amount will be available to go directly into investments/savings. I'm done with student loans, but I have a mortgage. I consider the principal payments as savings and interest as an expense.

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