Sunday, 19 June 2011

increase your pension pot by £355 instantly

'Tis a world of temptation and attraction. Want this want that etc... bombarded with advertising we are the age of consumerism. As much as I dislike being in the world of 'spend, spend, spend', I am not tempted by the wish to hock myself to the hilt and then be forever indebted (literally) to somebody else.
However, a trade is a trade. 1p, or $1 or £1 million. all transactions moves things. unfortunately, money oils the cogs of society right now, and as much as I believe in a fair society, money is the driver. I believe in the world economy and in my lifetime have seen the global market place come to fruition and its a wondrous thing.

However, I have asked myself, can this/these transaction be moved in the consumers favour? and save to fund a retirement/other? My interest was initiated by http://earlyretirementextreme.com. This is a good blog and has been thoughtfully laid out. I believe that you can live like this and retire early, but I have a less attractive starting position for three reasons. First, my age, which is mid 40's. Second my net worth. Third, my outlook to risk, which is average/moderate when assessed.

My age and familial responsibilities mean I have to be cautious and not lose all that has been accrued;
My net worth is predominantly in bricks and mortar, thus would need to free this capital up if I wanted to invest heavily in, say stocks and shares;
My outlook is cautious, thus would need to guarantee return, which I guess would reduce returns....

So, what am I doing about it?
first, I am earning. Second I am trying to reduce spending, as wages at the moment are not keeping pace with inflation and thus standards of living/disposable income are falling -
According to Deloitte, one of the leading financial services firms, the average UK household faces a £780 dip in disposable income each year. - https://www.uia-blog.co.uk/2011/05/16/ways-to-account-for-the-disposable-income-dip/

The term - 'disposable income' - suggests to me that the money you have left once all of your financial obligation's are met, is disposable?? disposable being able to be disposed of? I think this term in itself allows us to think of spare money as worthless?

I am a frugal person and wish to save more and invest more of this 'disposable income.
I have no clear plan and/or goal as I am pragmatic and grounded with an aversion to risk.

So, what do I do?
look to reduce on anything and everything whilst still living well? (raises more questions than answers)

Here goes;
Water -  a valuable commodity right now. I save on water usage and consumption by extracting one bucket of bath water to flush a toilet (restroom). May not sound a lot but..
flush toilets with bath water.... saving   1.52p per flush.... 5 per week  = 5 x 1.52 x 52 = £19.76 p.a.
So, I can put £19.76 in a bank account paying 3% and with compound interest would get £471
No. I'll put it in my pension. Seriously, this means that £19.76 multiplied by xx years to retirement = £355 and fingers crossed it would achieve at least 3% growth.

So the real story today is that I have generated an income/saving to put into my pension of £355.

This sum would mean nothing to some people but.. if offered the sum of £355 would anybody, however wealthy, turn it down?

Don't know how but will put in an accumulative total when I can for each of the nuggets I share.

Cheerio.

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