Very sensible advice. Live within your means. Cut your cloth accordingly. Put away something, anything for a rainy day. Invest it wisely. Don't listen to instant good luck good fortune stories. Delay gratification. Impulse control is key. Use your head to avoid the traps of consumerism which is about making you buy things you don't need with money you don't have. At the same time, don't live in sack cloth and ashes. There are plenty of ways to enrich your life in small, budget-friendly, meaningful ways. Be content. Envying those who seem to have more than you leads to nothing but grief and wasteful spending. Happiness and contentment are two very different things.
Usha, all sound advice along with the golden rule if it sounds too good to be true it probably is. One thing I have noticed is young drivers seem to be getting back into older cars as their first cars, not tying themselves ( and their parents?) into PCP deals which to me are the ultimate never never schemes, money paid out and you never own it. Also keeping their mobile phone once initial deal is finished and moving to a SIM only deal at 1/4 price of having a new phone. There are always simple ways to save money, the biggest being “do I need it” before a purchase V do I want it?
Don't get divorced. Invest in your health ( no smoking, drugs, alcohol or sugar), invest in teaching your kids some good old morals your grandma used to teach you. And believe in blessing ie one £ + blessing = £1000ish
One thing that comes to mind: set your life priorities right: 1. Eat well, there's no point in saving money when health suffers 2. Keep your house at a healthy temperature, even in difficult times 3. Invest in your kids' education personally (don't pay others to do it) 4. Invest in friendships. Not so tangible but I bet all that saves money
Well said. There is no point in spiting your own health and wellbeing just to save money for the futuire because then we might not be well enough, or even here, to enjoy it! It's important to eat well, keep warm/cool when needed, invest in learning new knowledge and skills, and invest in maintaining and enjoying friendships. It's also important to be able to give some money, even a really small amount to assist others. If there is any money left over after those things, then save it.
1 delay gratification 2 budgeting - being intentional about your money 3 regular small(annual) incremental increases of the amount you put away 4 taking risks - investment risks that investments may rise as well as fall Set a plan for the game 5 leaving well alone -
All great advice - important to remember though we can only live in the present. So it really is a balance between being in the moment - enjoying youth, health, family, friends and life and planning for the future. My Dad has a beautiful house over looking the Caribbean Sea but during his working life did little but that and even now rarely treats himself- his whole life was focussed on educating his children and retiring in the Caribbean but it saddens me what has he got to talk about and recall as his life experiences were very very limited. Recently divorced I’ve decided how much money when I’m 80 do I really need- probably won’t have the stamina nor inclination to travel or be adventurous and sadly might not have the health -so pulling my private Defined Contribution pension early (small drawdown) so can have holidays have a nice car and pay down a little more on my mortgages now that I’m 55 years old. Still have a buy to let (with 12 years left on the mortgage) , work place DB pension in my current job ( work 4 days a week and working towards a promotion) and good NI insurance contributions which should all serve as my retirement vehicles when I retire at 67 or earlier should a windfall allow. Ultimately I think more than anything it’s a good idea to be ‘deliberate’- think about what we need/want and what is important to us which obviously is a very individual thing and work towards it with whatever life skills we can deploy. Great video. Thanks.
Totally agree, Tony. Balancing the now versus the ‘one day’ is so important. I’m writing this reply from a luxury B&B in Bruges. I could have put the money for this into my pension but I want to live a little too!
Great advice. Done most them things throughout my life if ever I got a pay rise over recent years I put it into salary sacrifice which allowed me to retire early. Unfortunately COVID and Putin came along. Having to sit on my hands for a bit in the short term now. Hopefully better times lie ahead soon. 🤞
Unfortunately we can't let Putin take the credit for the cost of living crisis, that is way too much credit for him. UK energy is very independent of Russia in EUROPE and yet we have an energy crisis, doesn't add up. Cooperate greed and terrible government decisions and the coronavirus curruption caused these inflation problems we are all facing, not Putin
Love the content in your videos, found your channel by the RUclips algorithm suggesting it to me! Every corporate company I've worked in I've always signed the share save scheme as a no brainer. Due to this I'm 5 years away from mortgage free life and I'll only be 47!
Lucky. It can go the other way. I once bought into a company share scheme when their share price was approx $82. Eventually those shares were worth less than 82c! The stock options were also worthless. Also the company can go bust, this is especially risky with startups and I fell foul of that too. My general rule now is never to invest in the company I work for.
@@andrewfielden284 in the UK the company share buy schemes I saw all followed the same pattern 1) your money held in an independent bank account so safe if company failed 2) you had a 5 or 7 year purchase scheme, with a maximum amount per month that could be saved 3) option to purchase the shares after 5 or 7 years at the original price OR take your money with 100% guaranteed growth on your savings. It was a total win win for the employee, either shares that had ramped up in value or your money back plus generous interest rates. Of course once you own the shares their value can go up or down
All good stuff here. A couple of books that taught me most of this :-) 'The Richest Man in Babylon' and for the nitty gritty, 'The Money Gym', which taught me how to find out how to budget properly and to 'pay it forward', along with how to find out just how much I'd already built, which was more than I'd expected at the time :-)
Point 3 is key, if you can afford it, keep increasing contributions over the years especially relating to pension investments. The reverse is used for young people buying a house, what seems a large payment when your young after a few years of wage rises etc then it has shrunk a bit Pensions and savings advice and their benefits had to beco E part of the corriculum
Really love all of the points, but the one about leaving your portfolio well alone and stop tweaking everything is just so true! I used to do that so much when I started, and now I know how to stay the course, keep doing what I'm doing and stop looking at mine every day. It's such a mental lift!
A lot of people will never even begin to think that anything bigger than their 9-5 is possible. State of mind and belief is a very important part of taking that first step towards a person real dreams..
Pete! I have been following your podcast for years but not seen you in person! Glad I clicked the link to watch and put a face to a name! Great advice as always. Useful to have these reminder to keep on track
I really like these videos, the language is kept simple so the information comes across very clearly. And it's broken down into sensible, logical sections so there isn't too much for someone to try and take in at once. The series has given me things to ponder, so thank you very much!
It’s a great point. That’s part of balancing today vs one day. I intentionally chose to by the coffee machine to enjoy it today, knowing that doing so would mean I have a little bit less one day. But I’m happy with that. I might not make it to ‘one day’ so need to enjoy today a little too!
@@MeaningfulMoney What did you go for? I had a lovely Sage one second hand that packed in couple of years later, so nice though. Could only afford an Amazon one to replace it at the time, nowhere near as good 😔
Hi again Pete, I took your advice from another one of your videos and split payments into a stocks and shares Isa and also a Sipp. would you suggest the same, increasing both every 3 months or would you suggest increasing the pension side annually due to the tax relief element?
@@MeaningfulMoney wow where did 6 months go. well I increased the pension amount so now they are both on a par with each other plus the added tax relief so in effect saving more on the pension side. It does work for those who read the comments and actually digest the info Pete provides. I hope in another 6 months time, I can say I will be in an even rosier position even with the cost of living as it is. Thanks again Pete.
1 Live considerably within your means. 2 Scrimp, save and invest wisely. 3 Never get married. 4 Never have children. These principles have worked for me.
I'd like away of buying investments without seeing what your balance is. Every app I use screams my current balance at me. And when you're 40% down, it just depresses me somewhat.
You know I think that’s a genius idea. There should be a mode on every investment platform that hides your balance from you by default. Unfortunately I doubt the regulator would allow it…
Hi Neil. Much as I’d love to answer that, is an impossible question for two reasons: first, I know nothing about your friend’s situation, and so couldn’t begin to point them in the right direction. Second, any specifics given here could be deemed advice, and I could get into a lot of trouble. All I wood say is that three years I’d the very minimum term that I would consider investing over at all. If your friend is an inexperienced investor or has a low tolerance for risk, over that period they are likely better off keeping it 100% safe in a deposit account.
I was very good with my money when I was younger. Used to save like crazy which allowed me to buy a £9,500 car in cash and still have money to put a deposit down for my house at 26. Now, I legit spend more than I earn and I'm baffled what more I could do outside of starving myself, literally, and of any recreation. I hardly go out, never been abroad in the past 7 years and can just about treat myself to a £30 video game each month. Main culprit? I would like to think nursery fees. Pretty much all my bills are as low as they could be but I find myself paying £1,300 a month to put my child in nursery. I earn £47k a year and my wife £51k. God knows how other parents do it. Not too sure this post adds anything, just felt like ranting a little.
Sometimes we all need a rant, John. It ain’t easy, I know that, and nursery fees are a killer… Keep trying to live within your means if at all possible. Staying still is better than falling behind and getting into debt. Easier times will come once the kids are in school! That’s the time to question what use to put the nursery money to. Enjoy some of it, sure, but also try to salt some away for the future. Good luck!
@@danielhart3820 £1,400 for mortgage, £1,300 for nursery. Gas, electric, water, council tax, £250 a month for travel and bunch of other stuff means we have £400 each roughly at the end of the month. Somehow, that all is gone in the first couple weeks.
@@danielhart3820 Bought the house for £285,000. To be fair, we were on a very high interest rate when we initially got it. Over 4%. When it came to remortgaging, we took 6 years off the mortgage and paid the same amount. It would probably be £200 less per month if we stayed on course. I think the main culprit is food shopping. We put money aside for it each month but always go over.
1. Delaying Gratification
2. Budgeting
3. Regular small increases (investing)
4. Taking risks
5. When to leave things alone
Very sensible advice. Live within your means. Cut your cloth accordingly. Put away something, anything for a rainy day. Invest it wisely. Don't listen to instant good luck good fortune stories. Delay gratification. Impulse control is key. Use your head to avoid the traps of consumerism which is about making you buy things you don't need with money you don't have. At the same time, don't live in sack cloth and ashes. There are plenty of ways to enrich your life in small, budget-friendly, meaningful ways. Be content. Envying those who seem to have more than you leads to nothing but grief and wasteful spending. Happiness and contentment are two very different things.
Love all of this, Usha - thank you!
Usha, all sound advice along with the golden rule if it sounds too good to be true it probably is.
One thing I have noticed is young drivers seem to be getting back into older cars as their first cars, not tying themselves ( and their parents?) into PCP deals which to me are the ultimate never never schemes, money paid out and you never own it.
Also keeping their mobile phone once initial deal is finished and moving to a SIM only deal at 1/4 price of having a new phone.
There are always simple ways to save money, the biggest being “do I need it” before a purchase V do I want it?
"Building wealth is simple but not easy". It seems the simple boring things to do in life are the hardest. But its so necessary. Great tips Pete 👌🏽
Thank you! 🙏🏻
Great content. And way more informative than most on RUclips.
I appreciate that - thank you!
Don't get divorced. Invest in your health ( no smoking, drugs, alcohol or sugar), invest in teaching your kids some good old morals your grandma used to teach you. And believe in blessing ie one £ + blessing = £1000ish
One thing that comes to mind: set your life priorities right: 1. Eat well, there's no point in saving money when health suffers 2. Keep your house at a healthy temperature, even in difficult times 3. Invest in your kids' education personally (don't pay others to do it) 4. Invest in friendships. Not so tangible but I bet all that saves money
Love these, Emanuele!
Well said. There is no point in spiting your own health and wellbeing just to save money for the futuire because then we might not be well enough, or even here, to enjoy it! It's important to eat well, keep warm/cool when needed, invest in learning new knowledge and skills, and invest in maintaining and enjoying friendships. It's also important to be able to give some money, even a really small amount to assist others. If there is any money left over after those things, then save it.
@@amandahunter4034 Hi Amanda, with your addition I think we've got five golden rules for life, a nice round number!
1 delay gratification
2 budgeting - being intentional about your money
3 regular small(annual) incremental increases of the amount you put away
4 taking risks - investment risks that investments may rise as well as fall
Set a plan for the game
5 leaving well alone -
All great advice - important to remember though we can only live in the present. So it really is a balance between being in the moment - enjoying youth, health, family, friends and life and planning for the future. My Dad has a beautiful house over looking the Caribbean Sea but during his working life did little but that and even now rarely treats himself- his whole life was focussed on educating his children and retiring in the Caribbean but it saddens me what has he got to talk about and recall as his life experiences were very very limited.
Recently divorced I’ve decided how much money when I’m 80 do I really need- probably won’t have the stamina nor inclination to travel or be adventurous and sadly might not have the health -so pulling my private Defined Contribution pension early (small drawdown) so can have holidays have a nice car and pay down a little more on my mortgages now that I’m 55 years old. Still have a buy to let (with 12 years left on the mortgage) , work place DB pension in my current job ( work 4 days a week and working towards a promotion) and good NI insurance contributions which should all serve as my retirement vehicles when I retire at 67 or earlier should a windfall allow.
Ultimately I think more than anything it’s a good idea to be ‘deliberate’- think about what we need/want and what is important to us which obviously is a very individual thing and work towards it with whatever life skills we can deploy.
Great video. Thanks.
Totally agree, Tony. Balancing the now versus the ‘one day’ is so important. I’m writing this reply from a luxury B&B in Bruges. I could have put the money for this into my pension but I want to live a little too!
Brilliant Pete..as always.
Thank you, Dr B!
Great advice. Done most them things throughout my life if ever I got a pay rise over recent years I put it into salary sacrifice which allowed me to retire early. Unfortunately COVID and Putin came along. Having to sit on my hands for a bit in the short term now. Hopefully better times lie ahead soon. 🤞
I’m sure all will be well, Mark. Good luck for your retirement when it comes! 👍🏻👊🏻
Same. We’ll be back 😊
Same. We’ll be back 😊
@@MeaningfulMoney Thank you.
Unfortunately we can't let Putin take the credit for the cost of living crisis, that is way too much credit for him. UK energy is very independent of Russia in EUROPE and yet we have an energy crisis, doesn't add up. Cooperate greed and terrible government decisions and the coronavirus curruption caused these inflation problems we are all facing, not Putin
I got a new coffee machine, too. And a grinder 😊
Love your videos and your advice but, good god, that jumpy zoom effect is annoying. 🤣
A couple of people have mentioned that - duly noted!
Excellent content
Cheers, John!
Love the content in your videos, found your channel by the RUclips algorithm suggesting it to me!
Every corporate company I've worked in I've always signed the share save scheme as a no brainer.
Due to this I'm 5 years away from mortgage free life and I'll only be 47!
Amazing, Gary! Well done for taking advantage of those schemes!
Lucky. It can go the other way. I once bought into a company share scheme when their share price was approx $82. Eventually those shares were worth less than 82c! The stock options were also worthless. Also the company can go bust, this is especially risky with startups and I fell foul of that too. My general rule now is never to invest in the company I work for.
@@andrewfielden284 in the UK the company share buy schemes I saw all followed the same pattern
1) your money held in an independent bank account so safe if company failed
2) you had a 5 or 7 year purchase scheme, with a maximum amount per month that could be saved
3) option to purchase the shares after 5 or 7 years at the original price OR take your money with 100% guaranteed growth on your savings.
It was a total win win for the employee, either shares that had ramped up in value or your money back plus generous interest rates. Of course once you own the shares their value can go up or down
All good stuff here. A couple of books that taught me most of this :-) 'The Richest Man in Babylon' and for the nitty gritty, 'The Money Gym', which taught me how to find out how to budget properly and to 'pay it forward', along with how to find out just how much I'd already built, which was more than I'd expected at the time :-)
I’ve not read The Money Gym - must check it out, thanks Peter!
@@MeaningfulMoney You're welcome, you might still be able to get the free downloadable version 🙂
Point 3 is key, if you can afford it, keep increasing contributions over the years especially relating to pension investments. The reverse is used for young people buying a house, what seems a large payment when your young after a few years of wage rises etc then it has shrunk a bit
Pensions and savings advice and their benefits had to beco
E part of the corriculum
Thanks Guy - totally agree. This stuff should be taught.
Really love all of the points, but the one about leaving your portfolio well alone and stop tweaking everything is just so true! I used to do that so much when I started, and now I know how to stay the course, keep doing what I'm doing and stop looking at mine every day. It's such a mental lift!
So important, right? No sense in fiddling endlessly… thanks for watching!
Great stuff and im really enjoying the podcast too. Thankyou
Thank you Sean! Appreciate you being here!🙏🏻
A lot of people will never even begin to think that anything bigger than their 9-5 is possible. State of mind and belief is a very important part of taking that first step towards a person real dreams..
Pete! I have been following your podcast for years but not seen you in person! Glad I clicked the link to watch and put a face to a name! Great advice as always. Useful to have these reminder to keep on track
Really glad to have you here, Louise! Xx
I really like these videos, the language is kept simple so the information comes across very clearly. And it's broken down into sensible, logical sections so there isn't too much for someone to try and take in at once. The series has given me things to ponder, so thank you very much!
I’m really glad they are helpful for you, Myles - thanks for watching and commenting!
Good advice. One to show my kids! Is delayed gratification always a good thing in an era of high inflation though?
If you did not buy the coffee maker, but invested that amount for 20 years at 6% how much would you have? Did you want, or need the coffee maker?
Def couldn't do without mine. I'd rather sacrifice elsewhere.
It’s a great point. That’s part of balancing today vs one day. I intentionally chose to by the coffee machine to enjoy it today, knowing that doing so would mean I have a little bit less one day. But I’m happy with that. I might not make it to ‘one day’ so need to enjoy today a little too!
@@MeaningfulMoney What did you go for? I had a lovely Sage one second hand that packed in couple of years later, so nice though. Could only afford an Amazon one to replace it at the time, nowhere near as good 😔
Same here, I enjoy a nice cup of coffee. I am also on track for a very comfortable retirement. As you say, it's all about balance.
Hi again Pete, I took your advice from another one of your videos and split payments into a stocks and shares Isa and also a Sipp. would you suggest the same, increasing both every 3 months or would you suggest increasing the pension side annually due to the tax relief element?
Depends a bit on your age and situation. Pensions always win out due to the tax relief, but you need accessible money too
@@MeaningfulMoney wow where did 6 months go. well I increased the pension amount so now they are both on a par with each other plus the added tax relief so in effect saving more on the pension side. It does work for those who read the comments and actually digest the info Pete provides. I hope in another 6 months time, I can say I will be in an even rosier position even with the cost of living as it is. Thanks again Pete.
That's an interesting topic.Thank you
Thank you, Marina! 🙏🏻
1 Live considerably within your means.
2 Scrimp, save and invest wisely.
3 Never get married.
4 Never have children.
These principles have worked for me.
Those last two would never have worked for me!
I'd like away of buying investments without seeing what your balance is. Every app I use screams my current balance at me. And when you're 40% down, it just depresses me somewhat.
You know I think that’s a genius idea. There should be a mode on every investment platform that hides your balance from you by default. Unfortunately I doubt the regulator would allow it…
Pete l have a friend who wants to know where is the best place to invest £10,000 for about 3 years?
Hi Neil. Much as I’d love to answer that, is an impossible question for two reasons: first, I know nothing about your friend’s situation, and so couldn’t begin to point them in the right direction. Second, any specifics given here could be deemed advice, and I could get into a lot of trouble.
All I wood say is that three years I’d the very minimum term that I would consider investing over at all. If your friend is an inexperienced investor or has a low tolerance for risk, over that period they are likely better off keeping it 100% safe in a deposit account.
I was very good with my money when I was younger. Used to save like crazy which allowed me to buy a £9,500 car in cash and still have money to put a deposit down for my house at 26. Now, I legit spend more than I earn and I'm baffled what more I could do outside of starving myself, literally, and of any recreation. I hardly go out, never been abroad in the past 7 years and can just about treat myself to a £30 video game each month.
Main culprit? I would like to think nursery fees. Pretty much all my bills are as low as they could be but I find myself paying £1,300 a month to put my child in nursery. I earn £47k a year and my wife £51k. God knows how other parents do it.
Not too sure this post adds anything, just felt like ranting a little.
Sometimes we all need a rant, John. It ain’t easy, I know that, and nursery fees are a killer…
Keep trying to live within your means if at all possible. Staying still is better than falling behind and getting into debt. Easier times will come once the kids are in school! That’s the time to question what use to put the nursery money to. Enjoy some of it, sure, but also try to salt some away for the future.
Good luck!
@@danielhart3820 £1,400 for mortgage, £1,300 for nursery. Gas, electric, water, council tax, £250 a month for travel and bunch of other stuff means we have £400 each roughly at the end of the month. Somehow, that all is gone in the first couple weeks.
@@danielhart3820 Bought the house for £285,000. To be fair, we were on a very high interest rate when we initially got it. Over 4%. When it came to remortgaging, we took 6 years off the mortgage and paid the same amount. It would probably be £200 less per month if we stayed on course. I think the main culprit is food shopping. We put money aside for it each month but always go over.
Love it. Reinforcing the basic fundamentals. 🥸
Never gets old, John!
1. Delaying Gratification
2. Budgeting
3. Regular small increases (investing)
4. Taking risks
5. When to leave things alone