Pricing increases and delivery problems are a big concern for many at the moment. Our food budget has certainly increased and increased again in the last year. Bills have gone up and in Spring will go up again, especially fuel.
We have been through our monthly, quarterly and annual budget. We add everything up, add 10% for inflation, then divide it back into its monthly, quarterly and annual components.
However, as we age, my thoughts do turn more to how would I cope if anything happened to DB. He financially would be fine if I went first as he has the bigger share of pensions. We have both made wills and paid upfront for our funerals.
He has spent quite some time, going through all our finances, spending and savings. He has created a list for me, of what amount comes out of which account, who it is paid to and when. I did have a good idea but it is always nice to see it in black and white.
He has created another smaller list of his pensions, life insurance and any other credits I might get. Without a share of his work pension, which I am entitled to, I would just be able to manage everything on my government pension and my teeny tiny other work pensions.
How that would pan out in future years with this crazy financial worldwide situation I don't know. It has however, taken a great weight from my shoulders.
I would hope before then, and before we get too decrepit, we would have moved closer to our son, into a smaller property and be even more financially secure.
People say 'why are you still being careful with money, why have you gone without in past years to save for your future. That is why!
None of us know what the future holds. We have no idea when and if we will decline in health and need a major outlay for help. Staying at home rather than going into a home is our top priority, unless medical problems dictate otherwise.
That is also why.
We do still want to live and go visit places and have the money to do so. Pandemic to one side, this year we hope to do more of that.
Downsizing has worked for me and saved all worries about finances.ReplyDelete
I miss the space around me I had at Clay Cottage and the fruit trees and garden but it definitely is the sensible solution.
Although I still want to be frugal in some ways so I can spend in others!
You now have your little garden and access I assume to Alan’s? Good job you moved though with your back being so bad.Delete
You're replying to the wrong Sue ... but we know what you mean ;-)Delete
Ha, yes I did.Delete
Who knows what the future holds but I think you are very wise to go through things so carefully and to get everything absolutely clear.ReplyDelete
I don’t want to be caught on the hop so like to see what’s what.Delete
We are nowhere near as organised for our future! We're in our late 50's and husband still works. We have no private pensions. He had to cash in his Govt NEST pension during the very first lockdown as we didn't have enough to meet our outgoings on furlough money. I have a tiny NHS pension which just about covers our council tax. I'm self employed, working from home, and haven't had a pay rise since 2012. Thinking about our old age is a worry. We have no wills made, nor funeral plans. However, we have no mortgage. Luckily we don't have many "wants", which is just as well!!ReplyDelete
No mortgage is a big help. Don’t know if you pay self employed stamp. I didn’t and it came back to bite me later on. So much cheaper, if I had only known. My two little pensions total £50 a month:(Delete
Hi, yes I've paid full NI for 34 years, still about 3 or 4 years short though but I've got 10 years to make that up. I can pay NI voluntary as I don't earn enough being self employed for NI to be mandatory. I took a higher lump sum NHS wise and used it to clear the mortgage, so my monthly pension was reduced, plus I took it at age 50.Delete
I don't have the same situation as you as I have never been married and my pensions will last my lifetime. I'm also in the fortunate position of most of my pensions rising each year. However, I don't like the current situation as regards inflation. I'm old enough to remember rampant inflation and I want my finances to be in excellent order to meet whatever may come. I never expected to have the disabilities I have and I think I may face more disability in the future and that will be expensive!ReplyDelete
A thought provoking post. Thank you.
You are welcome. Sounds like you are organised and aware which is way better than most folk I know. I too remember rampant inflation and interest rates around 17%. A dreadful time.Delete
We're ok financially at the moment, but the future is a bit of a worry. I'm trying to put more money away in savings to hopefully offset the expected huge rise in fuel bills come April, and the general cost of living rise. We've both decided to have direct cremations - i.e. just a cremation, with no service, the next of kin gets the ashes to do with as they choose. So much cheaper. I know some of our family won't like the idea of not having a funeral service, but that's what we want so they'll just have to get used to it. We have insurance plans that will more than cover the cost of the cremations, so nobody else will have to fork out.ReplyDelete
Those came after our plans were done. Neither of us wants a service but others might have a say in that. We will both be cremated as well. The plans mainly cover the cost of cars, coffins and fees.Delete
That's why it is always wise to save for a rainy day. By the way I think you have got the Sue's muddled up as I saw Sue in Suffolk the other day and I was puzzling about your remark about her back and then I thought, ah the wrong Sue.ReplyDelete
Sue, Sue, Sue. Yes I did. First time though so not too bad.Delete
If you could hear me from where you are you would hear me applauding you ... what a sensible approach from both of you. How good is it to know that you could manage, even if it is only just as things stand at the minute!! I love that you have both sat down on a regular basis and kept tabs on the spending for the year ahead, and further into the future. Gosh your wartime rationing challenge made for fantastic and very encouraging reading, if you can set your minds to that you can set your minds to anything, and come through the other side.ReplyDelete
I reckon we might be okay as we are now settled in our separate but adjoining properties (yes our garden is shared) with a couple of buy-to-lets bringing in an income that no pension plan taken out so late could have managed to do. We also obviously have Alan's Navy pension, which drops by half if he goes before me.
I think we will be able to manage in our retirement in a couple of years, and it is only because I have challenged myself over the years to keep costs down, to live within our means and to save ... like mad ... as well as overpay and get rid of mortgages really quickly.
Whenever I get comments saying 'why do you do that to yourself', 'why not live a little and relax', 'splash out' etc etc I just feel like swearing because they are the very same people that usually go on to say a few days later how 'very lucky' I am to be in such a comfortable position and how much they struggle.
Thank you and yes, wouldn’t have had it any other way. Many men are still the main wage/pension earners and I believe it wise to prepare. None of us know what life has in store. We also hope, if and when necessary, to pay privately for small treatments if possible.Delete
I'd be OK for about 5 years, giving me time to downsize if we hadn't already done so... we intend to sell Beyond the Nook and buy a flat local to where we live now. People think we are lucky that I'm retired and J's semi retired, but they still want a 'lifestyle' whereas we've never had one to maintain! A lot of it is about choices, and we've made some tough ones over the years to put us in this position, despite always being a low income family.ReplyDelete
It can be done can’t it but requires effort which some people can’t be bothered with.Delete
We should be okay however I sometimes wonder what would our life be like if we hadn't planned and saved for retirement. Harvey does have the higher government pension, but we have enough set aside that if anything happens to him I will be just fine. IReplyDelete
I figure we will be downsizing in a few years as it is getting harder to do the work outside.
True. We probably don’t think age will catch up with us but it does. I think outdoor work or steep stairs, animals etc would all have to go eventually.Delete
That sounds like good forward planning. I think we will definitely be downsizing in the next few years. It hardly makes financial sense to rattle around in a three bedroomed house when Alexander and Beckah don't intend to have children.ReplyDelete
Never say never but you are right. We are three bedrooms and would doled downsize to two.Delete
We have always invested in pensions and property to make sure old age was more comfortable. Our rental property was sold in 2020 and the money invested. Even when I go it alone I will be fine. Being frugal allows us the freedom to spend on things we really enjoy. I'm not frugal for frugal sake.ReplyDelete