| Real Life Strategies for Building Wealth

Last week was one of celebration at The Money Principle HQ.

First, we celebrated my son’s birthday. Honestly, I have not idea where time goes (yes, this is a cliché, but it is also a valid concern). My son, my little baby, is seventeen years old and growing up to be a decent young man.

We celebrated by going to a nearby restaurant; it was only my son, husband and me. Grown up sons were working and will come for a little family get together next week (when their days off coincide). We had splendid time and managed to grab the ‘early bird’ menu. Win on all fronts.

There is also another birthday that passed almost un-noticed.

The Money Principle is seven years old.

This is ancient for a blog. Still, personal finance is a fast-moving and changing field and there is always that grabs my interest, something that I learn and wish to share.

Here is to the next seven years of The Money Principle.

AHA of the week

You remember that in the UK it is ‘ISA season’ right?

This means that by mid-night on 5th April, the end of the tax year here, you should use your tax-free investing allowance and top up your ISA. Currently the allowance is £20,000 per person, per tax year.

John and I thought that we are done with this one – we maxed our stocks and shares ISAs a month ago.

Couple of days ago, I decided to check the rules of ISAs and…It turns out that it is against the rules to invest in two stocks and shares ISAs during the same tax year (we have two each). We had to react very quickly and bring together our ISA investments for 2017-2018 or risk losing on some of the tax benefits that these accounts bring about.

So, my AHA for this week:

You can only invest in one stocks and shares ISA during one tax year.

Doesn’t make much sense, I know. But rules and rules and if you, like me, decide that these are designed to ‘make sense’ think again.

Where have I been this week?

No, I did not travel last week. This is good and I’m starting to relax knowing that I have not arrived home just to change my travel bag.

Last week, I was interviewed by Thembi Bheka for her Women Investing Summit 2018. We chatted about the reasons women don’t invest and the kinds of support necessary to overcome some of the impediments. It was great fun and I’ll let you know when my interview is live. Meanwhile have a snoop around and check the Women Investing Summing out.

My favourite blog posts for the week

Now, let me tell you about the blog posts that I loved last week

  • What FIRE Bloggers Owe Readers (Our Next Life): A blog post that sheds a bit of light on the whole confusion around claim of early retirement. I admire and respect people who achieve financial independence, at any age, greatly. When it comes to early retirement though, it often looks like ‘don’t do what I do, do what I say’ kind of situation. It is all about confusion between ‘not working’ and ‘not being employed’; e.g. RE people often work and sometimes make good money doing it. They still are not employed (and don’t need to be).
  • The Three Step Saving on Groceries Strategy That Saved Us $30,000 (Debt Free Guys): This is worth trying.
  • Why Real Estate Will Always be More Desirable Than Stocks (Financial Samurai): I may not agree with everything he says but the guy is talking sense.
  • Millennials can chill about not having massive savings (Simple Living in Somerset): Couldn’t have made these points better myself. Or, as I told a young friend of mine, ‘you didn’t know me when I was in my mid-20s’.
  • The 10 Pillars of FI (Choose FI): Financial independence is not a pipe dream – many get there on average income and in super-fast time. Others get there on high income, slower but enjoy loads of life on the way. Read this post carefully (even if some of the ‘pillars’ sound worn out and/or naïve) – at least four of these suggestions work miracles (and the hardest one to master is manipulating tax, I believe).

This is it from me for now; speak soon.