“More income would be nice, but not as nice as not having to go to work.”
+ money neutrality, Icelandic banks, and Sensations crisps
Hi and welcome to The Ladybird Purse, my weekly newsletter about women and money. I’m not a financial advisor and am in no way qualified to give financial advice. I’m just a girl, who told her son of course he could have some Timberland boots… and then saw the price of Timberland boots.
Hello! Apologies for taking last week off with no warning. I was deep in editing panic and overwhelmed, but the book’s gone in and hasn’t yet come back, so I can relax. (As much as I can ever relax. I need a couple of weeks’ run up to it.)
Anyway. Still nothing happening money-wise for me. I’m not saying I want something to happen for content, but it does feel a bit odd to be writing “I’m fine!” week after week.
I feel like I may have reached a point of money neutrality? For so long, I would look at my banking app and have an emotional reaction to the numbers. Lately, that’s not happening. I even slipped into my overdraft briefly and I felt okay about it. Because I know why it happened. And I know what money is coming in and when.
I keep wanting to say - I have said in response to a comment - that it probably won’t last. Something will happen, someone won’t pay me, a payment will be taken out that I didn’t expect, and I’ll be thrown into panic again (and I did have a money stress dream last night). But I’m trying to let that idea go and just, yeah, relax. A bit.
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A couple of years ago, I wrote about Waiting for Impact, a Dave Holmes podcast about a band that briefly appeared in Boys II Men’s 1991 video for Motownphilly, but actually about so much more than that. (I loved it.)
Dave Holmes has a new podcast, Who Killed the Video Star: the Story of MTV. Again, I’m loving it, but I was genuinely shocked to learn that MTV came out of American Express trying to find a way to advertise to 18-35-year-olds. I’m so naive!
An interview with… Melanie Jones
Hi, I'm Melanie. I’m a former primary school teacher, currently living on the Greek island of Corfu with my husband and nine cats. I gave up life in the rat race aged 43 and we bought a village house here. We live a frugal life with the rental income of our UK house. I do volunteer dog walking on Mondays and love a trip to the nearby recycling centre that I used to volunteer at pre-covid.
What is your current relationship with money?
I like to think its good. We budget for food and bills, allow ourselves pocket money and eat out once a month. More income would be nice, but not as nice as not having to go to work.
What is your earliest money memory?
Saving up to buy things with birthday and Christmas money and going to the sales.
Buying clothes from the catalogue and managing my money and paying it off monthly.
Playing the 2p machines with my mam at the arcade.
What advice would you give your younger self about money?
Always pay more than the minimum payment. It's how I paid off my UK mortgage early, which allows us to live the life we currently live.
Could you tell me a bit more about how you came to make the move to Greece? Was it a hard decision? What did your family and friends think about it?
After holidaying in Corfu every year, we had a ten year plan to buy a house and retire here. I've always had savings and been frugal. I think it comes from having no choice when younger. I worked two jobs and had student loans to put myself through university. As soon as I was earning I made overpayments to the loans. Once I'd paid off the student loan I didn't allow myself a lifestyle creep I just added that to my mortgage payments. At the time I was single so I just suited myself.
Then I met my now husband and we started holidaying here every year and the plan was hatched to use the savings and retire to Greece. By this point I had a ten year fixed rate mortgage that would see me mortgage free.
About three years into the ten year plan along came Brexit and from our point of view the worst happened, we lost freedom of movement and we thought the dream was over. I was feeling a bit disillusioned with the job that teaching had become and we decided to see what our savings could buy us and maybe have a few years out. On holiday in 2017 we found the house, we put in an offer and a deal was struck. We gave power of attorney to our lawyer and hey presto (three months later, lol) we'd bought a house in a Greek village. In August 2018 we moved here and established residency and are protected by the withdrawal agreement.
Looking back, I think I was burned out after 18 years of teaching and maybe running away to a Greek island is a bit extreme, but if you are feeling the same see what you can change. Nothing is worth as much as your mental wellbeing and you can surprise yourself with how far you can stretch money when you have to and when you don't need treats to get through the day or week.
What did your friends and family think about it?
I think some people thought we were crazy. Many said we'd never last a year. But most were very supportive and said go for it.
These were the days of cheap flights so we were sure we could get back to visit easily. I guess by now you know what's coming next. Covid hit. We didn't visit for two years. Our parents were shielding and we didn't want to stay with family and put them at risk. Things have settled down now, but flights are expensive and so our number of visits have reduced.
Greek bureaucracy can be challenging, often involving several visits to town with photocopies of paperwork, etc., but I have no regrets and all my family, friends and even former pupils say I'm so much happier and look younger now. I've recently started learning Greek. I've always been frugal so even my lessons are at a great price.
I'm lucky in that my husband is my partner in all my adventures, as he also gave up working. But I would say to anyone you never know what you can do when you put your mind to it. I know we are living through a cost of living crisis but you'll surprise yourself with how you can manage on a small income. I think your wants change and you concentrate your spending on needs.
What's the biggest money mistake you've made?
I had my savings in the Icelandic banks when they collapsed. Thankfully with the guidance of Martin Lewis Money Saving Expert I was able to access the financial compensation scheme but they were scary times.
Fascinated to hear about the Icelandic bank! That’s the first time it’s come up in more than two years of weekly interviews. Can you tell me more about it?
I have always been a huge fan of Martin Lewis so my savings were in an Icelandic bank where they could get the highest rate of interest. I think it was called ICESAVE. It was a government backed initiative to encourage saving.
Then in 2008 all three of the countries banks defaulted.
The UK treasury provided compensation and I think has since claimed money back from Icelandic banks but it was unsure at first whether that would be the case.
It was a shock at the time and took quite a while but I did eventually get my savings back through the UK compensation scheme. Good job, as its that money that I'd added to that we used to purchase this house.
What's the best thing you've ever spent money on?
My UK house. It pays for us to live here.
My Corfu house for the same reason.
My wedding. It was on a budget, my sister in law helped me decorate the village hall and made my cupcake wedding cake. We had the best time and no debt.
Do you have a pension?
Yes, I have my teachers pension which I can access at 57. I have also made contributions to the state pension.
What would you do with £10,000?
Buy a newer car the current one is 20+ but that's quite normal here.
Have the front of the house adapted to fit the car as parking is at a premium in our village.
An extra visit to the UK to see family and friends. Flights are expensive since covid.
What little luxury could you get with a tenner?
Salted caramel chocolate from Lidl.
Some smoked salmon. I love salmon and scrambled eggs as a treat breakfast.
If I was in the UK, crumpets and Sensations crisps.
If you were me what would you want to ask women about money?
Do you use a budget?
Who manages the finances in your house?
What are you saving up for?
Have you got long term plans? What are they?
I absolutely love your work. Thank you a million times
Oh such a fun one! ✨❤️