Work Pension plus Shopping Benefits

I’ve finally received my information pack regarding the company pension that I was enrolled onto with New Co in December.

The plan is run by Fidelity, I was able to easily register and log onto their website to have a peek at the new pension.

fidelity

It looks like I’m on a Drawdown Lifestyle Strategy Plan, which currently has my investments split between a global equity fund and a diversified growth fund in a 70/30 mix.  This mix will automatically adjust over time, ie more in the growth fund as the years go by and then in 10 years time, some of the equity fund starts getting switched into a ‘safer’ bond/gilt funds.  On their risk scale (1 being ‘least risky’ and 5 being the ‘highest risk’), the global equity fund scored 4 and the growth fund scored 3. The bond funds I think scored 1 or 2.

I’m ok with this and have resisted the temptation to tinker with things, although the very intuitive (and quite impressive) website allows me to easily swap and change my investments, and there are quite a few to choose from.

Unlike my colleagues, I actually checked out the funds fact-sheets, had a look at what other funds were available for investment and also compared the admin fees/management charges but in the end, I was satisfied with the default selections and default strategy. I already spend too much time tinkering with my SIPPs and ISAs so this is one less thing to distract me!

I toyed with the idea of whether I should include the value of this pension within my Future Fund and I’ve decided not to, since I don’t include my other company pension. So my Future Fund will continue to be exclusive of any work pensions.  I will however include this pension as part of my overall Net Worth calculation (since I can see how much it is actually worth).

As mentioned before, my contribution to this pension is 7.7%, New Co’s contribution is 14%, so if I can pay into this for a while, I should build up an extra tidy little pot.

When there’s a reasonable sum within this DC pension, I’ll incorporate it into my overall FI/early retirement plan but for now, I’ll leave it out.

Things at work are still quite ‘muddy’ and a little uncertain while New Co continues to try to figure out what they want to do with us. There are integration projects all over the place and our carefully drafted SOPs1 are being reviewed for the umpteenth time, having previously been reviewed by 4 (different) sets of auditors no less! Whilst no redundancies or plans for ‘restructure’ have been announced (yet), we’re starting to see a few people leave the business voluntarily – not everyone is willing to hang about waiting to see what happens (unlike me).

I’m still hoping they go for the ‘Northern Powerhouse‘ idea, since their other office is down south but we’ll see!

Oh, and I finally got my long service award for 20 years (which was in November 2015). New Co is still a little behind the times in that I received the usual award of gift vouchers but they weren’t e-vouchers, they’re old fashioned shop vouchers that I can only spend in-store! Still appreciate them anyway!

Shopping Benefits

Speaking of shopping, I’d been getting various internal ‘spam’ emails offering ‘shopping benefits’ throughout January. After overhearing colleagues talking about getting cashback and discounts off their shopping, I didn’t even open the emails and just deleted without reading properly.

Until someone mentioned that ‘shopping’ also included grocery shopping.

It looks like for certain supermarkets (Tesco, M&S, Sainsbury and Morrisons are the ones I can think of), you can purchase ‘shopping cards’ and get 4% cashback (it varies from shop to shop).

Since I’m still keeping to a grocery budget of <£25 per week, I thought I’d give the shopping card a go and bought a Tesco one for £100, getting £4 cashback. If I keep to my budget, this card will be enough for one month’s shopping.

Currently, most of my grocery shopping is covered by a credit card which is paid off in full every month. I don’t get any cashback with the credit card, just Avios Airmiles.

The shopping card is reloadable so I’m going to use the cashback I earn for future top ups.

Ok, in the scheme of things, if I only spend £100 a month on food shopping, the cashback I earn will total just £48 in one year. Some might say hardly worth the effort but this is no real effort at all! Topping the card up and checking the balance can all be done online, although your balance is also printed on the shop receipt. You then just hand over the card to pay for your groceries as normal.

Saving £48 by itself isn’t going to grow my Future Fund. However, I did also cancel my Netflix subscription a few months back saving £60 a year so all these little expenses I cut back on will continue to add up.

Anyway, I’m not really interested in any shopping cards for other shops, although am due to do a big toiletries shop for my family, so I’ll have a look at the Boots shopping card, which is offering a whopping 8% cashback!

Notes
1 – standard operating procedures

Hurray for Emergency Funds!

As some readers may be aware, I’ve never had an emergency fund.

During the ‘dark old days’ when I wasn’t in control of my finances, whenever there was an emergency, out came the credit cards and I just got into more debt.

When I eventually paid off my debts, I still didn’t build up an emergency fund – I used credit cards again, only this time, at 0% with plans to pay them off in full before the 0% ran out. It’s worked for me for the past 5-6 years.

So it did kind of surprise me that most PF/FI blogs I read advised building up an emergency fund equivalent to several months of your salary (some even recommending 6 months!). The more I read, the more I warmed to the idea of building such funds, so as one of my goals for 2016, I set a target to build an initial pot of £1k by the end of the year.

I know £1k isn’t much, but I have to start somewhere. In fact, at the end of December 2015, I had a starting emergency pot of £237.47.

The thing is, we’re still only in January and I’m having to dip into my fund already!

Emergency!

The other day, I broke part of a tooth (I was eating fish fingers and yes, they were cooked, which is what both my boss and my dentist asked me, haha!).

Fortunately, it wasn’t one of my front teeth, which would have been devastating but one of the back ones.  However, I needed to get it patched up quickly or risk more damage being done to the tooth.

The cheapest option to sort it out was £222.50 and that’s NHS price! The days of free dental treatment on the NHS while I was a student are long gone!

If I wanted it done on private healthcare, the cost was in excess of £600… I of course went for the more reasonable option!

teeth

The work’s not covered under my company medical policy because it’s classed as ‘cosmetic’.  I have a dental plan where I can claim back around 50% but it takes a while for the claim to be processed, so I’m most grateful to dip into the emergency fund to pay the dental bill in full.

I do make an effort to look after my teeth – I always attend my twice-yearly check-ups, use an electric toothbrush, floss fairly regularly and even use those funny little inter-dental brush things that dental hygienists recommend. My diet these days is pretty ‘teeth friendly’ too, ie plenty of calcium and I don’t tend to snack on sweets or chocolate.

Unfortunately, I have to admit that I wasn’t so great looking after my teeth when I was younger, had a far greater penchant for sweets and chocolates than I do now and by the time I was a teenager, I had a mouthful of fillings.

I now have the task of dealing with the expense of maintaining the repaired teeth which will continue to suffer from wear and tear as I get older.

This has really convinced me of the importance of building up an emergency fund to cover things like this, so I’ll be making all efforts to balance investing with saving into the fund this year.

I did consider setting up a ‘Teeth Fund’, but that sounds too much like I’m saving up for a full set of dentures – really, I’m not that old or there yet, haha!

Anyway, fingers crossed no more mishaps before I get the emergency fund topped back up!

January 2015 Savings + other updates

As I didn’t start my blog until April 2014, this is my first January savings update.

However…not quite the best of starts:

Yes, I’ve fallen at the first hurdle, managed a savings rate of 48.9%, which is still a good attempt but not quite getting to my 50%! I’m still suffering a little from the over-spending in December, have really tightened the purse-strings this month (not a single social outing!) but still fell a little short. Still, 11 more months to go to bump up the average!

The above saved was boosted by £44.12 from TopCashback*, £54 boiler service cashback, £20 football predictions winnings, £7.37 Orange mobile refund and £100 rent received.

Future Fund and Net Worth

I’ll still be detailing my Future Fund and Net Worth on a quarterly basis but here are the basic numbers.

Future Fund is now standing at £34,952.16, a decent jump from the end of the year due to favourable markets.

Net Worth is £91,019.25, an increase of 2% from last month.

Dividends

I received £5.31 from De La Rue and £3.80 from GlaxoSmithKline.

So the £9.11 received this month is already close to the total dividends from shares I received for 2014 (£9.59)!

Shares and Investment Trusts

No new shares purchased this month but I’ve updated my portfolio here.

Some readers may recall that I discovered an investment trust, that I’d forgotten all about, which I’d originally invested in back in 1997.  Investment trusts haven’t really been a part of my investment strategy, but then again, neither were individual shares until recently.
I’ve decided to add a couple more investment trusts (including some exposure to real estate investment trusts, or REITs) into the mix for more diversification. I shall be reporting dividends paid along with the dividends I receive from my shares. ITs invested in updated here, along with my shares.

Last year, I received a dividend of £9.38 from my Aberdeen Japan Investment Trust.

As with shares, investment trusts will just make a small part of my investment portfolio, the bulk of my money still remaining in mostly index trackers.

Non-Financial Goals Update

Food/Groceries Budget – I spent £92.31 this month, averaging £23.08 per week, so comfortably under my budget.

Cooking Recipes – I learned 1 new recipe this month, making my own low-carb pizza. Can I just state here (since my friends  have berated me!) that a ‘recipe’ in my eyes is something I’ve gotten out of a cook book and yes, low carb pizza was in there!  Ok, not exactly gourmet but it’s something I can add to my easy-to-cook list! I’m going to be adding some really ‘simple’ recipes – there are some things that I just don’t normally cook!

Yoga/Pilates classes – I’ve been carrying a slight muscle injury to my right leg so have been unable to stretch it properly and consequently, not done anything here, so an epic fail, but I’m going to try to play catch up over the coming months…

Rubik’s Cube – I’ve been doing the puzzle most nights and am now able to complete it with instructions, which in itself is progress! I’ve probably learned about 2/3s of the sequences (or algorithms as they are known) off by heart – that last lot may take a bit longer!

My progress so far!

Library Books – I borrowed and read one library book this month.

So in a nutshell, this is how I’m doing against my goals:

A mixed month, with successes and failures but at least some progress!

Hope everyone else had a good January!

[* Referral links]

November 2014 Savings & Other Stuff

My salary this month was a little higher than usual as it included the £360 Health Rebate from work for my gym membership.

Instead of just saving half of it, I’ve invested all of it, which has enabled me to get an all time high savings rate of 56.3%! Woo hoo!

The amount saved was also boosted by £20.07 from Inboxpounds*, £1.25 win from Searchlotto, £33.37 mortgage protection premium refund I mentioned earlier in the month£6.13 reviewing music on Slicethepie* and £100 rent received.

My average savings rate is now at 46.19% – I’m not going to hit my target average of 50% as I’m unlikely to save over 80% in December but I think I’ve made a good attempt in my first year of saving/investing.  I’m quite confident I’ll hit that target next year!

Speaking of goals, one of my goals for 2014 was for the value of my investments portfolio to reach £22,000. As of today, the value of my investments was £23,902.56!  Sorted :-)!

Grocery Spending

So I’ve set myself a budget of £25 per week for my food/grocery shopping as this is one expense which I feel that I have the most control over. Here’s how I did this month:

7th Nov – £20.03
14th Nov – £30.93
21st Nov – £23.99
28th Nov – £21.79
Total Nov – £96.74

Average per week – £24.19

25% was spent on meat or fish and 25% was spent on fruit and veg, so better on the fruit/veg front compared to last month. Still spent 11% on snacks so need to continue to work on that! 

Splurge next Month

I’ve already been spending more than usual (on my credit card) as is typical for this time of year. While I’m being quite generous buying things for friends and family, I’ve resisted the urge to buy a single thing for myself…so far! I’m not going to abstain completely, but whatever I buy, it’s not going to be anything expensive, unlike some gifts I’ve bought for myself in the past!

Black Friday came and went without me buying a thing, I just didn’t feel like getting caught in all the hype and madness. Perhaps I’ve missed some great deals, but perhaps I haven’t. 

I’ve got a day off work tomorrow to do some actual shopping in the high street – I reckon I won’t last very long before I get fed up and go home!
[*referral links]