If Money Could Be SIMPLE, What Would That Look Like?
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- čas přidán 6. 07. 2024
- If money could be simple, more people would understand it. More people would be able to handle it. More people would avoid debt problems, and more people would be financially free. So if I could make things as simple as possible for you - what would that look like?
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Chapters:
0:00 Intro
1:21 What does simple look like?
1:35 Level One - Today
2:52 Spending, Saving and Debt repayment
4:08 Level Two - Some Day
5:41 Resolution
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Brilliant Pete as always. 🙌🙌🙌. This country needs you on national TV, Martin Lewis style.
Very kind, thank you!
And OnlyFans 😈🤤
Definitely Mr M is a national treasure......ps only fans made me laugh 😅😅😅
1. Spend less than you earn; 2. invest wisely; 3. insure against disaster. Don't need to think about it, as I've read (& re-read) your book, "The Meanigful Money Handbook".
As you say, Pete - keep it simple!
👊🏻👍🏻 Amen to that, Tony!
Rule one is the main rule, do that and your then able to think savings / investments
Thanks Pete. Lots a good things about money.
I'm binging these videos, thank you!
Great to have you with us, Emma!
Brilliant as always
Very kind, thank you!
2 Masterclasses, wow, you're an absolute gem. Personally, I have a mixture of main & emergency account, cash isa, bonds(fixed savings) & s&s. The latter is for wealth building, isa & bonds for generating short term gains that I'll keep rolling over.
Sounds like a plan to me!
I’m halfway there and have my finances organised, just not sure how big the emergency buffer needs to be, stocks & shares ISA or a fixed rate ISA as of today ? I’m not getting any younger and I’m terrified of investing what Little I have, and losing it all.
Great video. I think I will share this with my kids who are both at university
Please do, and thanks!
Thanks Pete, another great video, similar to what I do, two accounts plus a savings account for emergency fund, get paid then transfer manually to direct debt account to pay for all bills etc, recently started a stocks n shares ISA for both my wife and I. Never managed to max out yet but manage to pay in every month first, by paying myself first.
Sounds perfect! 👍🏻👊🏻
Even better, consider accounts which have benefits associated with the “today” pots.
I get cashback on certain direct debits in my bills pot, more cashback on my spending pot, and interest on my emergency pot - all simple to research and implement.
You keep posting these great videos Pete, don’t run with a second personal account as manage my money within the one account. So many things are set by DD either bill payments or extra pension/savings payments.
The banking apps make day to day managing accounts so much easier, I have three payment in periods, salary, wife’s contributions ( she gets paid mid month) and rental income.
While it seems currently we are always getting hit with unexpected bills such as car repairs, plumbing, etc knowing what we have spare to pay for these or put them on zero % credit card ( still needs paying, which reduces savings)
Hi. Do I need a computer to work through your retirement planning academy course or can I do it all on my ipad?
It works fine on iPad - all video content and even the worksheets and stuff should work fine... Had loads of people go through it that way. Thanks for considering it!
These are brilliant Pete they should be mandatory for children while at school.
Not sure I'm the one to appeal to teenagers, but someone needs to! Thank you!
Would you say if one had multiple bank accounts to have an emergency fund in each to negate the possibility of not being able to access an account?
Could do. Whatever makes you sleep well at night 👍🏻
How much should you keep in an emergency fund? One month usual spend? Three month? A year? Thanks
I would say that it would depend on your situation. How old is your car, any appliances, and your home? Do you have any insurance or maintenance plans in place? How secure is your job? That sort of thing.
Some say 3. I do 6.
However much it takes for you to sleep well at night. 3-6 months depending on the security of your job and the sick benefits
Hi Pete, so you wouldn't suggest a Lifetime ISA for 'some day'? Just stick to a normal
stocks and shares ISA?
The thing about a lifetime ISA is it's almost always better to just increase your pension contribution. You get the boost from the government on payments into a LISA, but you get an equal boost going into a pension if you're a basic rate tax payer (in the form of income tax saving), and a much greater boost if you're a higher rate or additional rate saver. There's also other advantages to pensions, a big one being the favourable inheritance tax rules, plus as it stands you can access the pension sooner than the LISA. LISA has the bonus of being available in full as tax free cash at retirement. The instances where a LISA may make sense IMO are if you're maxing your pension annual allowance already, or I guess if you don't have taxable income, but in most instances a pension contribution increase would be my suggestion.
Impossible to cover everything in one video. I would recommend a LISA in the right circumstances, and I’ve done other videos on that subject. Thanks for watching! 🙏🏻
@@MeaningfulMoney thanks for replying. I put £333 a month into a LISA (totals the 4k a year) and anything extra I can afford goes into a stocks and shares ISA. Does that seem like a right circumstance to you? Appreciate all your content and guidance x
I’ve done everything you have shared, and I plan to retire next year at 56. I have a financial plan that takes inflation and growth into account, but inflation has exceeded growth over the last few years, which concerns me. With everything that’s going on in the world at the moment what are your thoughts on this?
My thoughts are that there's nothing going on now that hasn't happened before, economically. I believe that the great companies of the world will continue to make profit and if you're invested in global equities, you'll benefit. Stay tuned in a couple of weeks for a retirement investing masterclass...
I am 10 years away from my retirement . I have a couple of “ok” pension which, along with my state pension should cover all my bills , food and fuel cost and a “little left over for the odd holiday etc.
I am looking to open a stock and share isa as to add a different avenue of income come my retirement.
Where I am confused is should I invest in something different to my pension as to be diversified? Ie my current pension isn’t performing great at the moment and is quite heavily invested in the USA stock market (60%). To diversify should I look at investing in an alternative (to the USA) index fund?
Good question. The US represents about 60% of world stock markets, so your allocation is arguably about right. There aren't many investors making much at the moment as there are lots of headwinds. Hold your nerve and it'll come good. I can't suggest what you should investment here, sorry, but you can use your ISA to experiment a bit, maybe?
What I should of possibly added was the amount I intend to invest over the next 12 month could be in excess of £100k (from a house sale). I am not sure if that makes experimenting easier or trickier. I could invest some of it into my pension ofc and reap the tax relief top-up but my initial plan was to try and invest it in an
Isa as to diversify. I guess it’s the timing that’s unlucky/ stinks
I’ve been doing the 50/30/20 for a few years now .
What is the 50/30/20?
@@MPD90 50% needs, 30% wants, 20% savings
@@denisescally7090 Makes sense 👍
Do you think a test might be what would happen if you get run over by a bus? Great video.
Great Advice. I have been following you for a while now, and set up different pots(spaces in starling bank speak) for each of my main spending categories, which means what is left in my account, is my spends for the month.
Perfect - I love this! Well done and keep going!
@@MeaningfulMoney Thanks bud, they have also recently changed the charges for linked kids debit cards, so they are now free, so i have got a card for my 6 year old son, and my parents can transfer money into his pot(space) online very easily, so am educating him on spending money, and checking his balance, watching it decrease and eventually that it will all run out, unless he manages it properly :)
I run with one account, but wife and I have separate and effectively run as your suggesting. I pay the household bills mortgage, utilities,insurances etc and make savings into my accounts / pension, and what’s left is mine. My wife looks after all food, buying anything needed in the house furniture etc and what she has left is hers.
Banking apps on phones make it super easy to manage your money compared to old days and running totals on cheque book etc.
I do have a Revolut card typically for travelling and occasionally load that with my personal spending for the month and then leave my main account alone for the rest of the month.
We each have one credit card each, both zero credit cards for emergency spends on the car etc
4:54 Minimum pension age is rising to 57 in 2028 isn't it, not 58 ? Could someone not quite ready to retire at 55 move some funds into drawdown at that age but not take any taxable income - and therefore not trigger the MPAA - so as to give them the freedom to potentially stop work before they reach 57 ?
I thought it was rising to 57 not 58 too?
Strictly speaking it’s rising to state pension age minus 10 years, but you’re right, it’ll be 57 in 2028 🤦🏻♂️
Hi Pete good video I worked in a factory in 1976 i was around 18 years old two older guys worked next to me around 28 both on the same income same job one took the bus to work and lived in a council house the other owned his own car Datsun and owned his own house with a mortgage in a nutshell some of us are wired to handle money and others are not Its in someones DNA and you will never change it
Totally agree, I wonder if the council house guy bought his house at the huge discounts being offered in the 80’s?
I had a brother in law very similar, earned good money bought a terraced house that had been converted back from being set S two flats (student let’s) and never moved. Was : is in a poor location tried to get him to move somewhere better with his young family but nope. His parents passed away he inherited their house no thoughts of investing the money / using it to move.
Massive opportunities missed in my view
Yes two debit accounts have worked very well for me over the years and I still transfer a monthly ammount for bills. When some of my credit was paid off I left the same amount going in which usually paid for the odd nice break away. When the mortgage was done I transferred that ammount to my pension which enabled me to retire early. Ive opened a cash ISA . I opened a savings account too but never really bothered because the rates were too low and laziness i suppose. But things are a bit better in there now although inflation is still biting hard. I also worked on the premise that if I was going to stretch myself and couldn't afford it I would leave it until i could. People nowadays are in too much of a hurry to get everything now without thinking about what they're doing and get themselves in some awful debt. Banks are okay when they're using your money but not so when people are using theirs ours in reality.
Sounds like you’ve done lots of things right! 👊🏻
Great video. I have a stocks and shares isa. I've had it for 2 years. There is less money in it, than I've put into it. CZcams seams to love these things. I'd say don't bother. Am I having a normal experience or is my financial advisor a bit off on this one!! I want to stick the money in a savings account where I'll get 4%. Rather than loose money.
The last two years have been very challenging for all investors. Investing should be done over decades. Hold your nerve and it will pay off. Best thing is to always be buying, every month, because when things do get better, and they will, then you’ll be off to the races.
@@MeaningfulMoney I put money in my 2 pensions every month. They seem to be doing fine. But I don't pay into my isa!!
Same here. It's been up 10% and down 10%. Currently feels like two years of lost saving. Have moved some into a fixed rate cash ISA, earning 5%+.
@gingafinga it's a tricky one. My portfolio is graining ground. But with retirement looming I want it to make as much as possible!!
@@guitarsandcheesecake1632 Just checked my stocks and shares ISA which is negative by just over 1% today ... almost 2 years work!
My parents should have watched this
You can change the next generation though, right?! Go for it!
@@MeaningfulMoney Right. My children are set up for life Pete - own ISA since birth, maxed out every year invested in broad low cost ETF's until they're adults, other monthly investment account, plus of course what we'll leave them in properties, cash and other assets. Even bigger is investment in their education and life skills. They can go from that base to do much better on their own or they can simply live okay for life on the proceeds
@@soundslight7754 Good for them and absolutely great that you can do that as a parent, but life sure isn't fair is it when you consider what the majority get =/
@@MPD90true, it’s often said those with money it’s easy to make more money and make it work for you. If you have little and are trying to start it’s harder.
In the current climate and how fuel bills rose the last 18 months the lower income are even harder hit. For them, for me the one thing they should be doing is making sure they maximise any contribution the company will make into their pension. When they see this pot in 30 years time for them it will be like winning the lottery
@MPD90 I have humble beginnings and am still working class. Life is about choices. I didn't know what the majority gets so looked it up: median UK family income in 2022 was £38,100. A couple working on minimum wage easily earns well above that because Aldi pays over £12 an hour to stack tins of beans on shelves, no qualifications needed and Aldi as we know is a cheap supermarket, right? I'm showing not only doctors and lawyers etc have that earning potential but the majority.
Given life is unfair and majority isn't born to wealth, what we do with our earnings is making choices - my neighbour already has heating on, the house is so warm I felt unwell - they set heating on 26C to sit watch TV all weekend in shorts and t-shirts. I don't have heating on until it's colder, so all my working life I put the money not on heating or holidays, not on iphone15 with M3 PRO MAX chip in it for $2000 but added a bit each month to my pension and investment funds to build up wealth over many years of working and living frugally. Life is about choices.
Money is simple the problem is all the people trying to get their hands on yours 😂
Yep. Keep your hands on as much as possible!