Two pieces of advice from my very wealthy dad…..”if you will do what others won’t do, later you will be able to do what they can’t do.” Secondly….. anything worth doing is worth hiring someone to do it.” My teachers all gave me poor grades as my approach to life did not fall parallel with theirs. Told me I’d never amount to anything. I retired very wealthy and they all retire broke. The educational system teaches people how to be employees. I own all of their houses and they all pay me rent. Teachers are dismal money managers and have no financial competency.
Excellent video Ash and great advice. More lifestyle channels should talk about this. Could I add, when you work out your income and expenditure make a separate note of essentials e.g. rent, car payments, phone, TV package etc. The things you pay for monthly or on a yearly basis. You'll be surprised what you are paying for you don't actually use! As Ash said. Next. Add that expenditure up, and divide by 12. Start to put that amount, minimum, away in a savings account every month. What is left from your wages is what you have every month that you can spend, NOT what you should spend. Tighten your belt and in time, perhaps 6 or even 12 months you will have enough money in that account to pay for those essentials without panicking every month. Pay for things yearly, not monthly from the money you have in that account. You will save money e.g.in the UK if you pay your rates bill yearly you can save at least £50. Clear out all the 'things' you don't use/need, sell on ebay or gumtree (in the UK) or donate. I'm still working on the second part but the first part definitely works I've been doing it for years. Thank again Ash for a great video.
Years ago my wife and i took out a mortgage for 20 years when rates were high. As rates began to fall the building society kept writing to us saying we can drop our payments , but we carried on paying the higher sum as a result we payed off the mortgage in 10 years. Our friends dropped theirs and spent the extra cash on holidays.
Married to an accountant - that explains it! I'd also say prioritise things that earn money - interview suit and shoes for example - as well as limiting outgoings. Looking back, I might have done better taking help from my family in that line when it was offered.
Great Video Ash, as you've talk about before, second hand clothing, cheaper cars. I don't think I'll every be able to bring myself to buy a 1000 dollar phone, even if I had the money.
Part of being a chap is sensible financial management. I squirrel away the odd bit of spare money in Premium Bonds. They are a slight faff to access, so the money is not instant….plus I win the odd month.
Some good advice there. I really only got into a career that allowed me to save for a pension and invest a little here and there. But the sooner you start the better. I'm expecting to work till I'm 60, that's when I want to retire, so another 20 years. It also helps that my wife is averse to money being spent 😂 One thing I would add though. Maybe you mentioned and I missed it. Is to keep an eye on your credit score. At least that way if you're using credit most providers will give you a dashboard showing your credit utilization.
I pressed send before I'd finished writing my comment! I also do what Nischa of Accountant Explains recommends with all of your income. That is to pay 10% to yourself before paying anything else. I've used this idea to overpay my mortgage & it's very satisfying - almost exciting - seeing the balance go down on my mortgage 😊
Great advice Ash. It's almost like you were telling the story of my life except I had to wait until I was 65 to retire because of Medicare health insurance. We do not have socialized medicine here in the states till 65. Cheers Ron
Good video. Of course, if you live within your means, then it also has the advantage that when it comes to retirement you are used to that level of spending, so don’t need to work for as long to get the pension pot you need.
Debt is the killer. Learning to live without debt allows you not to live above your means. Obvious but I think super important, put money aside every month to pay your taxes, or it will catch up with you. Last but not least, purchase things that have good residual values and are of good quality, they will last longer and be sellable if needed. 👍
Hi Ash. This is a great series of videos....the best of all for me was the ironing video. Very difficult to make ironing interesting and instructive without being patronising but you did it. Well done sir..
Really enjoyed this video. As I understand it, you retired at 50. I'd be interested if you did a video on the retired lifestyle. I'm thinking of pulling the trigger, and it's not money stopping me, it's lack of a plan. How did you plan for retirement?
It is not something to take lightly. A retirement plan is essential and money is only one part of it. I continue to work part time and on the occasional casual contract in fields that I really enjoy working in, also, UA-cam fills a nice hole for me too. But I will consider a video to flash this subject out. Thanks you.
One has to ask: Why does the educational system not have mandatory courses in money management and financial planning? Kids have hopes, dreams, and goals. The proper education at an early age could be a life-changing moment for children as they decide what is important and how one reaches financial goals (new bicycle, new tablet, etc.). Kids are being underserved IMO.
With Christmas coming up, it is typically a huge debt time for many people. What I found best, with Christmas, eyeglasses, (any expense you know is coming up) is to put a set amount every payday in a jar, envelope, etc., for each expense. 26x$20=$520 at year end. 26x$40=$1040. Same too if you want a one time buy of a big item like a new TV; this also gives you time to think about the item, if you really need it, or if you would prefer a different brand. At the end, you are able to buy what you need/want without owing anyone.
This sort of assumes you want to retire early, personally I had this objective, and could have retired a long tome ago, but I like the buzz of business, my company gives me a large income, my employees are loyal, and working is a social life, and gives one a sense of purpose. I know people who retired early, they were bored shitless, and started doing odd jobs, poorlypaid as well.
Each to their own, I fully understand your situation and appreciate your angle. I personally retired from structured employment at 52 and now work 3 part time jobs which allow me to follow my passions and I feel much more fulfilled than when I punched a clock.
Great tips. I think it’s important to find a balance between saving and spending. Heed the words of Mr Micawber: “Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.” Live within your means. Spend a bit, save a bit. Don’t get into debt. Save up and pay for stuff in full where you can.
If I was going back in time I'd have worked out tax efficiencies of pensions sooner. Also tax inefficiencies of sole trader status vs Ltd. Gotten a better accountant etc. If you're in business for yourself the money should be top of your priority list the quality of work/productivity is very much secondary. It's easy be a busy fool. A lot of the way you spend/plan is informed by your parents. I notice my son has mostly picked up my habits as well. My mothers attitude was by all means have an interest that you spend a bit too much money on but then you shouldn't be spending a load on your house, car and holidays as well. If I'm buying substantial things I try put it off and delay a bit see if I'm as enthusiastic next week as I was last week.
Thankfully I was also able to retire at 55 following compulsory redundancy just before the pandemic. Loving my lifestyle now due to good DB company pensions. For a more detailed plan along the lines of your video. The book by Alvin Hall ' Your money or your life' is a great financial bible.
Being of Scottish descent I've never had a problem with money, I'm just mean and hate spending it. 🤠
Two pieces of advice from my very wealthy dad…..”if you will do what others won’t do, later you will be able to do what they can’t do.” Secondly….. anything worth doing is worth hiring someone to do it.” My teachers all gave me poor grades as my approach to life did not fall parallel with theirs. Told me I’d never amount to anything. I retired very wealthy and they all retire broke. The educational system teaches people how to be employees. I own all of their houses and they all pay me rent. Teachers are dismal money managers and have no financial competency.
Excellent video Ash and great advice. More lifestyle channels should talk about this.
Could I add, when you work out your income and expenditure make a separate note of essentials e.g. rent, car payments, phone, TV package etc. The things you pay for monthly or on a yearly basis. You'll be surprised what you are paying for you don't actually use! As Ash said.
Next. Add that expenditure up, and divide by 12. Start to put that amount, minimum, away in a savings account every month. What is left from your wages is what you have every month that you can spend, NOT what you should spend. Tighten your belt and in time, perhaps 6 or even 12 months you will have enough money in that account to pay for those essentials without panicking every month.
Pay for things yearly, not monthly from the money you have in that account. You will save money e.g.in the UK if you pay your rates bill yearly you can save at least £50.
Clear out all the 'things' you don't use/need, sell on ebay or gumtree (in the UK) or donate.
I'm still working on the second part but the first part definitely works I've been doing it for years.
Thank again Ash for a great video.
Years ago my wife and i took out a mortgage for 20 years when rates were high. As rates began to fall the building society kept writing to us saying we can drop our payments , but we carried on paying the higher sum as a result we payed off the mortgage in 10 years. Our friends dropped theirs and spent the extra cash on holidays.
Great video Ash. I'm impressed with how you can consolidate a topic like this into 5 or 6 talking points and proceed to explain them so clearly.
Glad it was helpful!
The Japanese have a special little notebook for budgeting, they are available on the internet. I have never ordered one, yet a great idea.
Married to an accountant - that explains it! I'd also say prioritise things that earn money - interview suit and shoes for example - as well as limiting outgoings. Looking back, I might have done better taking help from my family in that line when it was offered.
I read somewhere that tracking spending the way you describe - just that alone - will cause a spending drop of 20%.
Given todays financial climate, this is much needed, thank you!
Great Video Ash, as you've talk about before, second hand clothing, cheaper cars. I don't think I'll every be able to bring myself to buy a 1000 dollar phone, even if I had the money.
Part of being a chap is sensible financial management. I squirrel away the odd bit of spare money in Premium Bonds. They are a slight faff to access, so the money is not instant….plus I win the odd month.
What bonds? With the inflation non are good.
Some good advice there.
I really only got into a career that allowed me to save for a pension and invest a little here and there. But the sooner you start the better.
I'm expecting to work till I'm 60, that's when I want to retire, so another 20 years.
It also helps that my wife is averse to money being spent 😂
One thing I would add though. Maybe you mentioned and I missed it. Is to keep an eye on your credit score. At least that way if you're using credit most providers will give you a dashboard showing your credit utilization.
I pressed send before I'd finished writing my comment! I also do what Nischa of Accountant Explains recommends with all of your income. That is to pay 10% to yourself before paying anything else. I've used this idea to overpay my mortgage & it's very satisfying - almost exciting - seeing the balance go down on my mortgage 😊
I love that concept, a great way of saving.
Great practical information, Ash! As usual a spot on, excellent video!
Glad you liked it!
Great advice Ash. It's almost like you were telling the story of my life except I had to wait until I was 65 to retire because of Medicare health insurance. We do not have socialized medicine here in the states till 65. Cheers Ron
Appreciate the wisdom sir
Good video. Of course, if you live within your means, then it also has the advantage that when it comes to retirement you are used to that level of spending, so don’t need to work for as long to get the pension pot you need.
Thanks for this video Ash, I think I requested this about 2yrs ago😊
No problem 😊
Excellent Advice and very useful. Especially for those chaps who are not sensible with their money.
Debt is the killer. Learning to live without debt allows you not to live above your means. Obvious but I think super important, put money aside every month to pay your taxes, or it will catch up with you. Last but not least, purchase things that have good residual values and are of good quality, they will last longer and be sellable if needed. 👍
Hi Ash. This is a great series of videos....the best of all for me was the ironing video. Very difficult to make ironing interesting and instructive without being patronising but you did it. Well done sir..
Glad you enjoyed it!
Sound advice thank you
Really enjoyed this video. As I understand it, you retired at 50. I'd be interested if you did a video on the retired lifestyle. I'm thinking of pulling the trigger, and it's not money stopping me, it's lack of a plan. How did you plan for retirement?
It is not something to take lightly. A retirement plan is essential and money is only one part of it. I continue to work part time and on the occasional casual contract in fields that I really enjoy working in, also, UA-cam fills a nice hole for me too. But I will consider a video to flash this subject out. Thanks you.
One has to ask: Why does the educational system not have mandatory courses in money management and financial planning? Kids have hopes, dreams, and goals. The proper education at an early age could be a life-changing moment for children as they decide what is important and how one reaches financial goals (new bicycle, new tablet, etc.). Kids are being underserved IMO.
The rich need the poor. Poor people can be controlled and taken advantage easier. It's about power.
Thanks for the advice Ash. I was ticking them off as I listened
Thanks Ash
With Christmas coming up, it is typically a huge debt time for many people. What I found best, with Christmas, eyeglasses, (any expense you know is coming up) is to put a set amount every payday in a jar, envelope, etc., for each expense. 26x$20=$520 at year end. 26x$40=$1040. Same too if you want a one time buy of a big item like a new TV; this also gives you time to think about the item, if you really need it, or if you would prefer a different brand. At the end, you are able to buy what you need/want without owing anyone.
Also I wld suggest, track your networth and calculate return on networth on an annual basis.
Have an asset allocation and stick to to it.
This sort of assumes you want to retire early, personally I had this objective, and could have retired a long tome ago, but I like the buzz of business, my company gives me a large income, my employees are loyal, and working is a social life, and gives one a sense of purpose. I know people who retired early, they were bored shitless, and started doing odd jobs, poorlypaid as well.
Each to their own, I fully understand your situation and appreciate your angle. I personally retired from structured employment at 52 and now work 3 part time jobs which allow me to follow my passions and I feel much more fulfilled than when I punched a clock.
Great tips. I think it’s important to find a balance between saving and spending.
Heed the words of Mr Micawber:
“Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
Live within your means. Spend a bit, save a bit. Don’t get into debt. Save up and pay for stuff in full where you can.
So true!
The rule o 6 jars is very helpful
Fantastic advice Ash 👍👍
Money is essential to life. No money no life.
Hi Ash. Unfortunately there’s a scam bot on your channel. Hopefully no one gets scammed
Thanks for pointing it out.
Read The Psychology of Money by Morgan Housel. A topic that is not talked about enough or talked about in our schools.
If I was going back in time I'd have worked out tax efficiencies of pensions sooner. Also tax inefficiencies of sole trader status vs Ltd. Gotten a better accountant etc. If you're in business for yourself the money should be top of your priority list the quality of work/productivity is very much secondary. It's easy be a busy fool.
A lot of the way you spend/plan is informed by your parents. I notice my son has mostly picked up my habits as well. My mothers attitude was by all means have an interest that you spend a bit too much money on but then you shouldn't be spending a load on your house, car and holidays as well. If I'm buying substantial things I try put it off and delay a bit see if I'm as enthusiastic next week as I was last week.
Some really good advice, thank you. I love the bit about being a busy fool - so very true!
So you have heard of Maldives 🇲🇻 😊
❤
im new
Thankfully I was also able to retire at 55 following compulsory redundancy just before the pandemic. Loving my lifestyle now due to good DB company pensions. For a more detailed plan along the lines of your video. The book by Alvin Hall ' Your money or your life' is a great financial bible.
Great video, very good tips. I couldn't quite see your lapel pin, are you a traveling man?
No sir.
Step one: Stop buying bespoke suits and dress shoes ;-)
👍
Don't worry. After Gieves & Hawkes and Trickers the majority of the big houses will close as well. Unavoidable.
Mind you, keeps the weight off😂
Rather, buy the suits, look amazing, then fake it till you make it ;)
OR: Buy only bespoke suits and shoes and live in a hovel but look great
ash why are you sitting in a forest
I love nature!