financial planning

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What is this blog about, and who is it for?

/ Gracie Sunderland

What is this blog about, and who is it for?

This blog was born because I couldn’t find anything like it. I started it as a single British woman in my late thirties, living with my two primary age children when we had just moved to Denmark. As of 2024, I am in my mid-40s, with all the joyful tween and teen years for my children that entails. And whilst we are still in Denmark, my career means that I expect to move countries in the coming years.

I started this blog through a love and interest in the Financial Independence, Retire Early (FIRE) community. However, whenever I needed advice or a community to talk to about being a great single parent, living on a budget, or planning my side hustle, I struggled to find information that resonated. Sometimes it was because I’m single; other times, because I felt I had a different ethical approach which I didn’t see reflected. If you have similar needs, or just want to see a real story of personal and financial growth during what sometimes feels like times of real challenge, I hope this blog can be a great space for you too.

I cover several main topics focused on financial independence, personal finance, social justice and lifestyle management all through my own personal journey:

My Personal Financial Journey: I walk you through my own experiences and challenges as a single mother working towards financial independence. This includes dealing with emergencies, budgeting, and managing household expenses​, as well as making long term financial decisions for my children and wider family.

Financial Tips and Strategies: Whilst I don’t give advice I aim to provide practical thoughts on money management, including tips on setting up an emergency fund, being savvy with money. I also share how I try to spend mindfully toward the life I want to create, whilst optimizing on spending like meal planning, travel, and activities with my children.

Financial Planning: I also share my own journey of planning for the short, medium and long term, looking at retirement planning, raising money savvy kids, and preparing for my children and other loved ones’ financial futures. A lot of this links to career planning and how (and why) I think about getting to ‘work optional’.

FIRE Community and Inspiration: Whilst not everything resonates, I have found a great FIRE community  with a lot of inspirational stories and resources from well-known figures in the community, such as Tiffany Aliche (The Budgetnista), Paula Pant, and Mr. Money Mustache. I also regularly share recommendation for podcasts and books that are helpful for financial education and inspiration based on what I am finding interesting and useful as my journey continues.

Policy and Social Justice: Personal finance might be personal but it doesn’t happen in a vacuum. I aim to explore policies and trends which impact on our money including cost of living issues, issues impacting the stock market, and changes in budgets and taxation relevant to a UK audience. I also focus on social justice and how I understand that neither how we make or spend money is the same for everyone.

Goal Setting and Accountability: I highlight and give tips on the importance of setting realistic financial goals, having an accountability partner (and what that looks like for single parents particularly), and staying focused on financial plans is a recurring theme. I share my own goal-setting process and regular reflections on progress, both financial and how I am feeling about it all.

Disclaimer: The content on this blog is for informational and educational purposes only. It is not intended as financial advice. Please consult with a qualified financial advisor before making any financial decisions.

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2023 Savings Review

/ Gracie Sunderland / Leave a comment

Last week I wrote about how I spent my budget in 2023 and this week I want to dive into my savings and investments.

I wanted to start off (because I know you love a relaxing subject) by reflecting on shame around money. There is a lot about this in terms of getting over feeling shame or guilt about having a low income, or having money troubles and that’s a really important conversation. My own family story with money is a mishmash of being low income with middle class aspirations, meaning that between my family and the people I grew up with had very different incomes, aspirations and feelings about money. I also work in a ‘helping’ industry where there are expectations that we shouldn’t earn as much as e.g. bankers because we are working for a higher purpose and should do it for the feels and not for the remuneration.

So there is a lot mixed up in how I feel about money. On one hand, I am working in a job which helps people, and which I got after working almost 20 years in jobs which paid around the median wage whilst studying on the side as a single mum to achieve, and pay for, a Masters and PhD. On the other, I recognise that I significantly outearn pretty much everyone I know. I guess this would be different if I was in the USA, where every single caller on the financial independence podcasts I listen to seems earn a similar amount to me.

This is a topic I will likely come back to, but I have been uncertain about posting both my spends and savings for 2023, because I am not sure how I feel about being public on an area which has so much judgement. But to make this blog useable and useful, it strikes me that real numebrs are better than theory. So with your kindness, here we go.

Total savings 2023
SIPP personal pension (invested) £                3,600
ISA savings (invested) £              15,000
Work Pension (pre-tax – invested by company) £              15,552
One year living expenses (cash) £              48,029
Total Saved 2023 £              82,181
Children’s savings
Childrens’ ISA (invested) £                2,800
Childrens’ Junior Pensions (invested) £                1,200
Total Saved 2023 £                4,000
Average monthly savings £                6,848

I have to say that I am pretty happy with that. Compared to my spending of £88,344, savings of £82,181 means I saved almost 50% of my income. This is significantly better than other years, and definintely something to aim for moving forward. This has also been the first year I had zero debt other than my primary mortgage – in 2021-2022 I was paying off a bridging loan I had needed to buy this house, and in previous years was significantly overpaying on the mortgage for my rental. So there was definitely more available to save this year, though all those actions contributed to my net worth.

There need to be some tweaks to how I manage things, based on changes and additional risks in 2024, so I will use this information to guide my planning and goals for 2024.

But I am both proud and slightly guilty at the same time. So something else to work on too!

How was your savings rate in 2023, and how do you feel about it?

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2022: Financial year in review

/ Gracie Sunderland / 1 Comment

I like to start the new year with a stocktake of how my finances are doing and whether my savings and investments went according to plan, then using this as a prelude to setting some plans and goals for the coming year. This isn’t the only focus for the year, so check out future posts to find out more about setting intentions, vision boards and the like. But it is a good way of gathering some baseline data to see where I am starting from.

To say 2022 was a tricky year financially is a massive understatement. Whilst the economy globally seemed to be strengthening post-COVID at the start of the year, the invasion of Ukraine in February turned a lot of the world’s certainties on their head. Prices started to go up for petrol, food, energy, leading to massive cost increases in the basics for most households.

This trend has continued throughout the year, with supply chain issues as well as scarcity in some areas leading to a crisis with the soaring cost of living. I feel like I’ve been writing about this all year: 92% of adults in the UK have reported an increase in the cost of living, with 60% saying they are ‘very concerned’ about their ability to cope with additional rises. Food banks in the UK had to distribute more than 1.3 million food parcels in 2022, an increase of 50% since pre-COVID figures. I recognise that whilst financial freedom remains a critical goal in my life, so many people are getting closer to the financial precipice that they really need to get support, and get it now.

Inflation also grew at a significant and rapid rate, hitting almost 11% in the UK by the end of December. For many people, including me, this had an immediate impact on mortgage interest rates, biting even deeper into the daily costs of getting by. Whilst the expectation is that inflation has now hit its highest point and will start to reduce in 2023, the impact (and uncertainty) of these shifts are real.

It has also been a shaky year for the markets. Again an understatement, with the Financial Times headline for the end of the year reading Stock and bond markets shed more than $30tn in ‘brutal’ 2022. Markets in the US had their worst year since 2008 (and we all remember what a brilliant year that was). Whilst I love FIRE and the focus on both balancing for risks, and keeping your head in the event of a downturn – and I have definitely moved on from panic selling in 2020 – it has felt like another rollercoaster ride which just hasn’t been that fun.

This has also been the worst year in terms of growth for my own portfolio. I made some major changes this year (more about this in future posts) to rebalance away from being over-invested in property, but continued to invest throughout the year in mutual funds and my pensions. I added in kids’ savings here which I don’t normally do, but as they are starting to get older I need to come back to my financial planning for them, and make sure I am adjusting as needed depending on their age and stage.

My investments this year came to almost £80,000, though some of this came from my property sale meaning that my investment from salary alone came to £50,000. I am extremely proud of this figure and what it represents in terms of prioritisation and tenacity. Since I have been working on myself over the last few years, I can feel that pride at the same time as recognising that my salary and privileges mean that I am in a very unusual and blessed position.

2022 Contributions
Personal pension (SIPP) £                   8,600
Savings (stocks and shares ISA, emergency savings) £                 31,000
Work Pension (pre-tax) £                 18,444
Mortgage capital overpaid £                   5,000
Kids’ savings (JISA, J-SIPP) £                 16,000
Contributions £                 79,044

Next steps for me are to do a review of my net worth (and realistically to not compare it to a US$ amount as I traditionally have – with the recent forex issues, this is a pathway to sadness) and set out some plans and goals for 2023. Whilst I do that, I will just continue to save and invest as usual, and get ready for what is hopefully an easier year for us all.

Look forward to hearing about your 2022 and how able you were to follow your financial plans given that major challenges during the year.

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New Year 1: Getting started with money

/ Gracie Sunderland / 1 Comment

So here we are again, another year! Having started off with a cheerful little post on loneliness, I wanted to come back to thinking as the FIRE community, where you are definitely not alone. Whether you are new to thinking about personal finance or fully on your path, the new year offers a moment to take stock and think about where you want to be, and how you will get there.

Woop! Photo by zero take on Unsplash

Now, I don’t really make New Year’s resolutions. As my dear friend said – why add pressure? Why not just resolve to be kind to yourself, and treat yourself well? I think that is sage advice, but I do like to find tangible ways to treat myself well (and also to myself, said with love – this does not involve a cold beer and some cheese straws).  I’ve written before about how managing your finances is an act of radical self care and it’s certainly true for me.

I know lots of people find thinking about finance stressful: try imagining instead that dealing with your money is a way of reducing stress now and in the future. You might have to sit and do some tedious legwork now, but what if it meant no more sleepless nights worrying about money? What if it freed up some brain space for you to dream and act on those plans? Now that’s worth a resolution.

So my advice to you, especially if you are just getting started, is to give yourself a break. We’ve all had a hard few years, and a lot of the financial (and other) news coming out suggests that 2022 isn’t going to be a bunch of roses either. The most important thing though is to give yourself some grace and some space, not just because you deserve it but because when you are ready to work on your finances (or your weight, your love life or your novel) you will come from a place where you are more centred and compassionate, and more able to engage.

New year, same old you, but maybe with some new ideas. Photo by Sincerely Media on Unsplash

I also believe there are a lot of easier ways to cut through the white noise of financial confusion. My next few posts will cover some options as to how to knock your finances into shape for 2022, when you are ready.

There is a ton of financial guidance out at this time of year. January feels like a fresh start, plus it’s common to come out of the holiday period feeling a bit queasy about overspending, or about carrying debt into yet another year. Sometimes the advice can be helpful, but I find many of them either over simplify – “set a budget and stick to it” is a frequent gem which makes me think “oh thanks! :facepalm:” – or cram so many different things in that it can feel overwhelming.

So my new year financial resolutions are limited to the following:

  • Audit: Work out what my fixed costs are;
  • Pay myself first: Work out what I can reasonably save and ensure that it is automated to come out straight after I get paid;
  • Burn the budget: Basically, I’m not going to sweat what happens with the rest of my money. I mean, within reason.

And that’s it. Simples! Looking forward to sharing my audit process, and my own results, next week. Until then, put your feet up and finish off the Christmas chocolates. You got this.

Grace and space first: everything else will come. Photo by Nitish Meena on Unsplash

Happy new (tax) year!

/ Gracie Sunderland

In the UK, for various nefarious reasons, the tax year starts on 6th April. I love spring anyway with its sense of fresh starts, but the new tax year always feels like a great moment to take stock of where I am financially. So here’s some of the things you might want to think about whilst enjoying the start of the nice weather.

New year fun times, the financial way. Photo by Sincerely Media on Unsplash
  1. Check out your pension: The tax-free amount that you can pay into a personal pension stays at £40,000 for the 2021/22 tax year in the UK. The lifetime allowance for pension savings remains at £1,073,100 (not a problem for me right now, but good to know!). I’ve written before about working out how much you need in retirement but it’s good to keep an regular eye on where you are at.
    • Make the most of your work pension: if you have a workplace pension, check how much you are paying in and what the employer match is. Since your contribution comes out pre-tax, and hopefully you get a top up, this can often be the best option for pension planning. I pay 10% of my salary to my work place pension, and it’s a significant chunk of my monthly savings.
    • Check out personal pension options: If you don’t have a workplace pension you might have done this already. The most tax efficient way to do this in the UK might be a Self Invested Personal Pensions (SIPP). I have a SIPP with Fidelity, invested in low-cost index funds. At the start of the tax year, I check the investments and if needed rebalance the percentages across the various different funds.
    • Check your state pension projection: If you’re in the UK, check your national insurance contributions and what it means for your state pension. You shouldn’t need to do this every tax year but just putting it out there as a reminder!
Happy financial spring cleaning 🙂

2. Check out your investments. Depending on where you are in your financial journey this could be lots of things, from opening up your piggy bank (thought note, this is not investing!) to reviewing your enormous portfolio. The ISA is a brilliant tax wrapper for UK residents, and comes in lots of different types: cash, stocks and shares, junior. The tax allowance for 2021-2 is £20,000 per person, and you have the tax year to use it since it can’t be rolled over. For me, I have all my investments in a stocks and shares ISA – there are places you can compare the S&S ISA options. At the start of the new tax year I check my investments, and rebalance them if needed. I also check my monthly ISA contribution to try and make the most of the personal allowance – to use up the personal allowance would take £1,666 per month.

3. Set up your financial plan for the year. You might have done this in January, which is when I do my goal setting and overall planning, but because of tax returns, I keep my spreadsheets from April-March, and have a lovely time at the start of April setting them up for the new year.

4. Get ready for your tax return. Ok, you don’t need to start work on it right now but it’s good to get things (receipts, invoices etc) together ready for the fabulous time to come.

So – what are your rituals for the new tax year? Would love to hear from you!