Diary of a Investor-phobe - Setting up a Nest Egg

As you know, yesterday I set myself the task of starting my Cappuccino Factor Investment to create a long term nest egg..... It took me half the day but I didid it. YAAAAYYY!!!

My plan is to stop paying £80pcm into a pension plan, which I started 27 years ago (in my early 20s). I realised some time ago that there was no point in continuing to throw good money after bad. 

To illustrate the point to myself I used an online compound interest calculator. I wanted to see how much better off I would have been if I had been putting the same £80 per month into the Cappuccino Factor over the same 27year period. I've been conservative and used a 10% annual increase, which is  entirely possible with this strategy... the interest and regular payments accumulated over into the each year.

The current balance in my pension plan is £27,331.46. If I had just been putting the money under my bed it would have accumulated to £25,920.... so, what could it have been if I had put the same money into the Cappuccino Factor??...... wait for it.... be prepared to gasp..... it would have grown to..... £132,753.33!!!!!!! 

If I'd had that money now I could have paid off most of my personal mortgage .. I feel like asking Friends Life where their friend has put my money, but I think I wouldn't get the answer I want!

Anyway, if you want to check out how compounding will effect your money here is the link for the calculator I used.

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Strangely, just as I was writing this, my 83 year old Dad called to wish me happy Easter... I mentioned what I had been doing and he said he had exactly the same experience with his Friends Life policy... that's two houses we could have got! Thankfully this did not stop him from taking early retirement from his job at the civil service on a full final salary pension at 58 years old - phew! But you can see how many people could be completely scuppered if they don't start taking action and NOW!

Are you like me and still procrastinating over using the magic of compounding to set up your nest egg? If you are then please get going now! To help, next week I'm going to do a top up video to add to Pam's because I had a really nice short cut experience that I would like to share with you.

Until then have a fabulous Easter/Passover/Bank Holiday weekend!

Tx

Become an Millionaire Today with The Cappuccino Factor

Today Tania will be finally be taking action to set up a SIP and redirect her coffee and cake money into a low risk/ high performing mutual fund. This idea comes from our mentor Gill Fielding and  Pam has created a video for you to make it easy for us all to put the strategy into action.

The Cappuccino Factor is a long term strategy to take advantage of Compounding. It allows you to invest small amounts of money for a long term gain.... Pam explains more in the video.

When you retire a Millionaire you will look back on the day Pam introduced you to this idea and thank her and Gill for their generosity of sharing how to do it.

Enjoy!

Inspiring Journey of Two Young Property Investors

Inspirational Talk at Crawley Property Meet

We run a fabulous monthly meeting near Gatwick, for property investors and financial freedom fighters. Oli and Alicia are two members and here they share their amazing property journey. It's completely inspiring and must be watched... if you want to be inspired that is... enjoy!!

Success : Passion

The Trials & Tribulations of Becoming Financially Free ~ Part II

Following our article ‘The Trials & Tribulations of Becoming Financially Free’ we thought I’d better give you an update on what happened next….

Pam and I are writing a daily online diary for our Property Investor friends. It's tracking the purchase of our property investment journey.… 

So, I put a post about the problems of letting go of my past world and embracing the new life full time. You know, the power of network is an amazing thing and I am eternally grateful to the friends I have made via the ones Pam and I have started and joined. The feedback was truly inspirational… here are a few of the gems that people took their time to share:

Kerry said…‘Jump. You will not regret it and that £15k hole you describe will get filled with a larger than £15k plug. That's what happened for me’ 

Beaufort advised…‘Step up to that door of opportunity and it will open as it's done countless times for me before. Incidentally I had to leave fear at the door and take a step of courage or (step change) to follow my bliss. Follow your bliss, providence will come! Think of the benefits to your Reticular activating system!’ 

Ama shared…‘Nobody can tell you when to jump, but I must say I can't wait to jump off the hamster wheel. I hate my job it is very stressful and is impacting negatively on my personal life.’

Our mate Phil mentioned….‘Funny you should raise this issue Tania, Nick and I were talking after a great Tuesday with you both… and we have a plan for an extra £700 an month . And You get to redevelop you home and pay for it at the same time , £700 cash flow after.’

Now that’s interesting… they have shown me what’s right under my nose and I’m looking into it now!

Julie offered….‘What a great problem to have! I say, get yourself a coach, who will help you think this through on a higher level... hey.  I'm a coach. Would you like to have a chat?’

So… what did I do??

Firstly, I jumped at Julie’s offer to coach me through the issue, she’s an amazing person and has a spooky ability to help you dig deep and get to the nub of the issue. The main thing I discovered is, for me, not all money is equal. We have all heard of tainted ‘blood-money’, which can leave the possessor wracked with guilt because of the way it was acquired. For me I have ‘sunshine money’ and ‘ball and chain money’…. One makes me feel happy and fulfilled, the other drags me down and leaves me feeling uninspired and drained.

So, I’ve decided to pursue the ‘Sunshine Money’… tomorrow I’m having a meeting with my ‘Boss’ and by the end of it I will either be leaving the ‘job’ straight away or… either-way I will be following my sunshine money!

Eeek! … That’s the sound of a Hamster leaving her wheel!

The Trials & Tribulations of Becoming Financially Free

At some point this financial freedom journey will present you with the dilemma... when to complete your jump off the hamster wheel??

Having spent a wonderful day in Brighton with some of my favourite people in the world (talking property, life, death and love) 
THEN
I made the mistake of listening to my phone messages :( and found one from my 'boss'.

I'm still holding on to part of my old life as an Interior Designer and have a little one day a week, commission only sales job for a curtain shop. It's a family business and there are lots of changes a foot as the designer/sister, who has been in charge for 35 years, plans to leave in October.... for the past 5 years I have been her backup designer and I've covered the one day a week and her ever increasing holidays (12 weeks worth last year!). It's been clear to me that she has been preparing to leave for years... with all my financial freedom activities I'm close to being able to decide what I do with my time, as opposed to what my time does to me. 

Her brother/finance director, is now trying to make his mark and in the last 3 months this mark has resulted in a divide and conquer situation. Urgh... I hate politics and generally I have managed to not get involved.. I am, after all a one day a week, commission only, sales person! But now he has put me slap bang in the middle of a 'situation'.

Although I have been grateful for the work to date but  after this phone message I'm wondering if I should just bow out and take the leap and leave now rather than later?? If I leave now there is a possible £15k hole in my bank balance.... if I stay I know I will become increasingly unhappy, which will impact what I really want to do.... but if I go it will be my last connection to the past... heavy stuff!

I've dealt with this before in my life and taken the leap of faith into the unknown...survived... and grown... but at the moment I just feel sick, worried and peed off... not to mention tired because I fell asleep worrying about this and and woke up at 4am doing the same... humph!

What to do? Stick it out until I've replaced the £15k ... or jump now and have faith that as one door closes another will open??

Tania
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