I just retired recently and i find this video very creative if i must say, these psychological concepts are useful for individuals attempting to avoid mistakes.
just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Personally, i find it more productive and safe to buy growth/blue-chip stocks rather than tech stocks. It's advisable to work with a CFP for well-diversified portfolios instead of relying solely on speculations.
i just googled the man you mentioned, I am quite impressed with his credentials, will get in touch because I need all the help I can get, and consequently schedule a phone call. Thanks.
Pete, great video. I need part two, which is the automation of finances when you are at the top of the mountain and are starting to drawdown and the pay yourself first is generating a monthly pay cheque from the investments to pay the bills and meet spending needs.
Same here! I recently posted about this on Pete's Facebook community site. The whole shift in mindset from saving to spending money once you finish work.
Yes@l I saw that. I am pulling the trigger in July so reach out next summer and I can tell you how I did, By being part of MM academy I have a financial plan based on my goals and bucket list, all stress tested and probably overly pessimistic with a little too much in cash but that's how I am able to sleep and spend with out worry that it may run out.
Automating the cash flow ladder if it’s possible. I just about have my head around the principles from this channel but maximising efficiency feels like quite a lot of effort and that may be impractical as we get older too, no matter our intentions
Just spent 30 minutes looking into ‘Looking after my bills’ - only to find out it’s not available in Northern Ireland. Very frustrating. Might be worth mentioning in the future, Pete. Otherwise, excellent as always.
Good debt, bad debt.. Pete, would it make sense to throw money to clear the mortgage or invest into etf's etc with a 5 or 10 year plan that it grows enough to clear ?
"Where you taking me for my birthday this year hun?" . . . . "We're going down to the Bank to count our money babe" . . . . "Yuk, we do that every year. Why can't we go to the Bahamas like you do on your birthday?" :-)
Thanks for watching this video! I'd love to know what other topics you might find interesting and I could do a video on them. Let me know below - I read all of your comments even if I don't always have the change to reply to all of them.
I'd love more on options for investing extra in DB pension schemes and associated AVC's. I watch and read a lot about DC pensions and ISA's but, if you're like me, what are good options or advice? 👍
I'd like an update - maybe in the new tax year ? - on CGT Allowances, dividends tax, etc. The reduction in allowances is going to clobber everyone who invests, so it would be appropriate & timely for a LOT of people.
I’d love some more content for freelance and self employed - income protection, pensions, saving etc are all a little different when you have variable income. P.S. excited to see you’ve nearly hit the 100k mark with the channel 🎉
Hi pete, absolutely loving all the videos and content you provide across all your platforms . I would love to see a video on what to do if receive financial windfall, not neccesarily inheritance or planned investments maturing, but a non-planned large gift or the best way to make a large lump sum investment from a windfall (over 100k )and to be tax efficent. Many thanks
Your opinions on the Pension Commencement Tax Free lump sum. That caused endless debates at work. I'm sure some people took early retirement just to get their hands on it.
We have three accounts. I move ‘spending money’ into one (leaving enough + contingency in the ‘bills’ account. Then we have a yearly account - things that are regular but yearly (home/car insurance, car tax etc) total those up and divide by 12 and we deposit into that account monthly so fewer surprises. Lastly, things like council tax and water are not 12 payments. Council is 10 and our water is 7! So be sure to do a yearly check on your bills account and sweep into savings
I have one like your the second (yearly account) i call a sinking fund, it covers car/home insurances, house maintenance, car servicing and birthdays/christmas. It makes bill-time less stressful and saves money. all other payments go on and spreadsheet that I clear every month and when i get paid ( a different amount each month dept on overtime mileage etc) I send money to a cash account and any excess to savings.
@@robdodd4591yes we found it very useful. We used to add our kids school trips which can get expensive - and when they finished we kept that amount being saved and it became our ‘white goods’ line item providing the option to replace a faulty/old appliance if necessary without stress (that came in very handy)
If you are employed I would suggest a great time to review your finances is around the end of January when the end of the tax year is in sight. In Feb and March I am paying over half my wages into my pensions AVC. £6000 into my AVC or £3000 into my bank account ? At 61 hopefully the best investment I can make, especially as my companies pension rules say I can use the AVC as my tax free lump sum when I retire. If the AVC drops 40% I would still be in profit.
Hi Pete, just a quick question…..Can I take £20,000 from a trading account, putting it into cash. Then without withdrawing it, transfer it into a stocks and shares isa with the same platform. Without it being subject to tax.
If you have gains on that £20,000 of more than £3,000, then you might have capital gains tax to pay. Doesn’t matter whether you withdraw it into your bank or not, if you make a taxable gain, you’ll have to pay the tax on it.
I ended up with 3 current accounts so i could drip feed my spending money in weekly chunks. Otherwise i always would blow my monthly budget before the end of the month.
I have 3. First is spending account, but income paid in to this one. Immediately, my pay is moved to my no3 account - this covers next month’s bills. At the end of the month, I move the money for the upcoming months bills into no 2 account which is where all bills DDs are set up. Also, move money into a petrol account and load a shopping card. “Spends” money is moved into mine and partner’s account. It means that we an always using last month’s pay for this month’s bills, so we are a month ahead.
Hi Pete. Woohoo 100k subscribers ❤ very well deserved....lets aim for 1m now! At the grand age of 56 years im usually nodding away at your videos comfortably thinking yes yes i do that already however this "pay yourself first" (after budgeting properly) is wholly new to me. Ive alwsys merely swept up the resudue income and saved/invested it at each month end. I definitely prefer your pay yourself first .....it places more control and discipline into the situation. So although ive been fortunate that my system worked for me because various age related good fortune ie full student grant, DB pensions, early1990s house prices ie affordable mortgage (1.25x ann salary) and a good personal finance education meant that i was disciplined to stick to my savings/investmeng plan.....prefer your thinking though.
yep, another good back to basics vid. I'm helping a relative to get on top of their money after one partner lost their job so a massive income drop. lots of debt and not enough income to cover the bills. so they choose..sometimes pay a debt, sometimes bay a bill. thoughts welcome!!
Ah, that's tough. As long as they make minimum payments on the debt, that's the crucial thing - they don't want to get behind. There's no magic bullet here. It's goign to be tough for a while until the income gets back on track
Thanks Pete. It’ll be a long slog but I’m on a mission. Makes me so cross that those with low income get badly treated by loan companies, credit cards etc. anyway your videos have helped with our own finances enormously over the last few years and we are by no means well off. Just very well organised now!
I never understand "pay yourself first". It seems counter-intuitive to invest for the future before, for example, paying your mortgage or electricity bill. I would have expected the correct priority to be 1. bills & bad debt, 2. investing, 3. spending?
That makes sense. I guess the key is to shift away from just spending disposable income by default. Adequate budgeting should mean that you know how much you need for bills, can deduct that from net pay, and then siphon off a decent amount to investments if circumstance allows.
The one thing I have never skimped on is payments into the company pension. By the time they have added their contribution and you haven't paid tax, £100 off your wages can put £250+ in the fund.
If you have a lump sum, history shows you're better putting it in in one go. Drip-feeding it in can smooth the returns a bit in case markets get jumpy just after you put the money in, but it's a coping mechanism. If you can cope with the possibility of the value falling, then put the lump sum in...
I just retired recently and i find this video very creative if i must say, these psychological concepts are useful for individuals attempting to avoid mistakes.
just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough, but Is this a good time to buy stocks?
How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Personally, i find it more productive and safe to buy growth/blue-chip stocks rather than tech stocks. It's advisable to work with a CFP for well-diversified portfolios instead of relying solely on speculations.
I and my advisor are working on a 7 figure ballpark goal, tho this could take another year
His name is Nathan Travis Cook
i just googled the man you mentioned, I am quite impressed with his credentials, will get in touch because I need all the help I can get, and consequently schedule a phone call. Thanks.
Pete, great video. I need part two, which is the automation of finances when you are at the top of the mountain and are starting to drawdown and the pay yourself first is generating a monthly pay cheque from the investments to pay the bills and meet spending needs.
Same here! I recently posted about this on Pete's Facebook community site. The whole shift in mindset from saving to spending money once you finish work.
Yes@l I saw that. I am pulling the trigger in July so reach out next summer and I can tell you how I did, By being part of MM academy I have a financial plan based on my goals and bucket list, all stress tested and probably overly pessimistic with a little too much in cash but that's how I am able to sleep and spend with out worry that it may run out.
Watch this space…
Automating the cash flow ladder if it’s possible. I just about have my head around the principles from this channel but maximising efficiency feels like quite a lot of effort and that may be impractical as we get older too, no matter our intentions
Just spent 30 minutes looking into ‘Looking after my bills’ - only to find out it’s not available in Northern Ireland. Very frustrating. Might be worth mentioning in the future, Pete. Otherwise, excellent as always.
Ah, I didn't know that - sorry!
Good debt, bad debt.. Pete, would it make sense to throw money to clear the mortgage or invest into etf's etc with a 5 or 10 year plan that it grows enough to clear ?
Need more images and icons and websites displayed on the video as you talk through these options.
Noted, thank you
"Where you taking me for my birthday this year hun?" . . . . "We're going down to the Bank to count our money babe" . . . . "Yuk, we do that every year. Why can't we go to the Bahamas like you do on your birthday?" :-)
You can imagine it, can't you?!
😂😂
Thanks for watching this video! I'd love to know what other topics you might find interesting and I could do a video on them. Let me know below - I read all of your comments even if I don't always have the change to reply to all of them.
I'd love more on options for investing extra in DB pension schemes and associated AVC's. I watch and read a lot about DC pensions and ISA's but, if you're like me, what are good options or advice? 👍
I'd like an update - maybe in the new tax year ? - on CGT Allowances, dividends tax, etc. The reduction in allowances is going to clobber everyone who invests, so it would be appropriate & timely for a LOT of people.
I’d love some more content for freelance and self employed - income protection, pensions, saving etc are all a little different when you have variable income. P.S. excited to see you’ve nearly hit the 100k mark with the channel 🎉
Hi pete, absolutely loving all the videos and content you provide across all your platforms . I would love to see a video on what to do if receive financial windfall, not neccesarily inheritance or planned investments maturing, but a non-planned large gift or the best way to make a large lump sum investment from a windfall (over 100k )and to be tax efficent. Many thanks
Your opinions on the Pension Commencement Tax Free lump sum. That caused endless debates at work. I'm sure some people took early retirement just to get their hands on it.
Did you say Bunthly Bills? Great video otherwise. Keep up the good work!
Possibly!
4:57. Enjoyed it!
We have three accounts. I move ‘spending money’ into one (leaving enough + contingency in the ‘bills’ account. Then we have a yearly account - things that are regular but yearly (home/car insurance, car tax etc) total those up and divide by 12 and we deposit into that account monthly so fewer surprises. Lastly, things like council tax and water are not 12 payments. Council is 10 and our water is 7! So be sure to do a yearly check on your bills account and sweep into savings
I have one like your the second (yearly account) i call a sinking fund, it covers car/home insurances, house maintenance, car servicing and birthdays/christmas. It makes bill-time less stressful and saves money. all other payments go on and spreadsheet that I clear every month and when i get paid ( a different amount each month dept on overtime mileage etc) I send money to a cash account and any excess to savings.
@@robdodd4591yes we found it very useful. We used to add our kids school trips which can get expensive - and when they finished we kept that amount being saved and it became our ‘white goods’ line item providing the option to replace a faulty/old appliance if necessary without stress (that came in very handy)
If you are employed I would suggest a great time to review your finances is around the end of January when the end of the tax year is in sight. In Feb and March I am paying over half my wages into my pensions AVC. £6000 into my AVC or £3000 into my bank account ? At 61 hopefully the best investment I can make, especially as my companies pension rules say I can use the AVC as my tax free lump sum when I retire. If the AVC drops 40% I would still be in profit.
Hi Pete, just a quick question…..Can I take £20,000 from a trading account, putting it into cash. Then without withdrawing it, transfer it into a stocks and shares isa with the same platform. Without it being subject to tax.
If you have gains on that £20,000 of more than £3,000, then you might have capital gains tax to pay. Doesn’t matter whether you withdraw it into your bank or not, if you make a taxable gain, you’ll have to pay the tax on it.
Hello Pete - should I pay off my mortgage at 7.5% aggressively, or keep paying it without overpayments and invest? Thank you for your response 🙏
At that right, i would pay it down as quickly as possible. But maybe split the difference and do a bit of both?
Thank you 🙏
Almost 100K!
Cleared it this afternoon - whoop!
I ended up with 3 current accounts so i could drip feed my spending money in weekly chunks. Otherwise i always would blow my monthly budget before the end of the month.
That's a brilliant environmental hack - whatever works for you! Nice work...
I have 3. First is spending account, but income paid in to this one. Immediately, my pay is moved to my no3 account - this covers next month’s bills. At the end of the month, I move the money for the upcoming months bills into no 2 account which is where all bills DDs are set up. Also, move money into a petrol account and load a shopping card. “Spends” money is moved into mine and partner’s account. It means that we an always using last month’s pay for this month’s bills, so we are a month ahead.
99.9 subscribers 👍👍👍👍
Cleared the magic 100k this afternoon!
@@MeaningfulMoney well done your videos are superb,entertaining and educational
Hi Pete. Woohoo 100k subscribers ❤ very well deserved....lets aim for 1m now!
At the grand age of 56 years im usually nodding away at your videos comfortably thinking yes yes i do that already however this "pay yourself first" (after budgeting properly) is wholly new to me. Ive alwsys merely swept up the resudue income and saved/invested it at each month end. I definitely prefer your pay yourself first .....it places more control and discipline into the situation. So although ive been fortunate that my system worked for me because various age related good fortune ie full student grant, DB pensions, early1990s house prices ie affordable mortgage (1.25x ann salary) and a good personal finance education meant that i was disciplined to stick to my savings/investmeng plan.....prefer your thinking though.
You must take coffee seriously if it takes a dedicated hour for a single cup.
REALLY seriously!
yep, another good back to basics vid. I'm helping a relative to get on top of their money after one partner lost their job so a massive income drop. lots of debt and not enough income to cover the bills. so they choose..sometimes pay a debt, sometimes bay a bill. thoughts welcome!!
Ah, that's tough. As long as they make minimum payments on the debt, that's the crucial thing - they don't want to get behind. There's no magic bullet here. It's goign to be tough for a while until the income gets back on track
Thanks Pete. It’ll be a long slog but I’m on a mission. Makes me so cross that those with low income get badly treated by loan companies, credit cards etc. anyway your videos have helped with our own finances enormously over the last few years and we are by no means well off. Just very well organised now!
Ah, love the suit, Pete!
Ah, I don’t!
I never understand "pay yourself first". It seems counter-intuitive to invest for the future before, for example, paying your mortgage or electricity bill.
I would have expected the correct priority to be 1. bills & bad debt, 2. investing, 3. spending?
It’s a heuristic, mostly. The idea is to make you think about saving or paying down bad debt as the no. 1 priority.
That makes sense. I guess the key is to shift away from just spending disposable income by default. Adequate budgeting should mean that you know how much you need for bills, can deduct that from net pay, and then siphon off a decent amount to investments if circumstance allows.
The one thing I have never skimped on is payments into the company pension. By the time they have added their contribution and you haven't paid tax, £100 off your wages can put £250+ in the fund.
Should I pay a lump sum into my SIPP or increase my monthly payment. Read conflicting advice.
Many thanks.
If you have a lump sum, history shows you're better putting it in in one go. Drip-feeding it in can smooth the returns a bit in case markets get jumpy just after you put the money in, but it's a coping mechanism. If you can cope with the possibility of the value falling, then put the lump sum in...
Thankyou. Love your content.
YNAB is awesome
I agree!
On board
Welcome!