The Escape Update 2008

Posted:Abigail Andrews - Sunday, April 27th, 2008 at 1:52 pm.

I thought it was about time I posted an update on my progress for financial freedom so here it is........

THE RACE IS OVER, I WON THE LOTTERY!

How I wish that was true, until then here is my real update:

Websites

www.lets-makemoney.co.uk

Well, this website is doing OK, though sadly I never seem to have enough time to work on it. I have tons of ideas but never enough from time to implement them. I think most people probably come across this when trying to improve their financial freedom. Unfortunately you have to work to earn money to live, which restricts the time you have to work on your ideas.

I started this website as a hobby, to improve my programming skills. I didn't really see it as a way to earn money at first, but it is making me some money through advertising, not a lot, but it is something I am working on, and it definitely contributes towards my monthly bills.

Other Websites

I started this website as a hobby, to improve my programming skills. I didn't really see it as a way to earn money

Recently I have been asked to build a website for a friend of a friend. Nothing is concrete at the moment, but if this idea is realised it should earn me a few quid in my spare time. I will keep you posted on any developments in this area.

I also have some "vague" plans to build another website with a good friend of mine at some point in the future. We have been bouncing ideas around and we think this will take the form of some sort of on-line shop. We will have to wait and see about this money making scheme, as yet again this will all boil down to time restrictions.

Property Investments

Our Rental Property

As you probably know, I rented out my old town house 2 years ago. This is going fairly well. We have long term, reliable tenants, which is the best I could ask for. The only problem I envisage in the future are the difficulties in the mortgage market. We are due to renew our 2 year fixed mortgage in June and that has truly bitten into our monthly profits, though we will still be making money, which is more than many landlords can say. We plan to take out a 5 year fixed rate on this house to protect ourselves from the current uncertainties in the property market. In 5 years time I would hope that the current problems will be long forgotten.

We have long term, reliable tenants, which is the best I could ask for.

Ultimately, this is a long term investment for our future. Regardless of the current property climate, I am still optimistic that come 25 years time, we shall have a nice lump sum to put towards our retirements from this property.

Spanish Property

Now this is a different matter all together! Some of you may know that nearly 4 years ago we invested in a Villa in Costa Almeria in Spain. From the beginning, this investment has not gone smoothly. Not normally a fan of Spain, Costa Almeria was entirely different from what I normally thought of when I imagined of the Spanish Costas. Completely unspoilt, no high rises, brilliant weather. We could not resist investing in a small villa as a holiday home, besides the rental potential was good as well.

So what went wrong? Well, just as I have said Costa Almeria is completely unspoilt, thus far, but with very loose planning restrictions, it was in danger of heading the way most other costas have gone. In essence developers started a build and then claimed retrospective planing permission. This was how it had always worked in much of Spain; controls were very loose.

We are now getting our money back and because of a breach of contract we are seeking compensation too.

Cutting an extremely long and very complicated story short, basically officials realised this was a free for all and not in the interests of the region. As a result all building in the whole of the area was stopped, and all developments have been reviewed and now have to await "official" approval.

Our build started for approximately a year, then was stopped. We have been told time and time again that the paper work has been approved and building will begin soon, but after nearly 4 years we can wait no longer. We are now getting our money back and because of a breach of contract we are seeking compensation too. We have not lost any money with this investment, in fact, if all goes well, we have still made some, but it is still annoying that in those 4 years we could have invested money in the UK market, and more than likely have made much more, rather than wasting time and effort on Spain. I have no doubt that this development in Spain will eventually go ahead, but it could take another 2 years before they even begin building again, and we are not willing to wait for that for various reasons. Hey you live and learn though don't ya!

Future Property Investments

With one success and one failure under our belts and the fact that the property market in the UK is going through what some would call a crisis. Are we still interested in investing in property? Absolutely! If prices in the UK begin to fall, it becomes a buyers market again and I will be a VERY eager investor. We are biding our time, saving our cash, ready to snap up a bargain investment property when the time is right. Watch this space!

Share Saves and Share Investing

I had a share save scheme mature last August, and managed to sell at pretty much the top price my company has ever reached. This was truly good luck rather than good management. In essence, changing my name after getting married, delayed the selling of my shares, and actually made me more money in the long run. Though it probably knocked years off my life through the stress, and scarily less than 2 months after I sold, the current woes in the markets kicked in and the price started to plummet!

I have another share save scheme due to mature this year. In August, I have the option to take the shares or take my savings. I would be a fool if I didn't take the shares, since I have more than doubled my money at this point. However, up until September last year I had actually quadrupled my initial investment. It is annoying that thousands have been knocked off my investments value due to overall poor stock market performance, but I am still making money and that's never a bad thing. I will take the shares and hope that the price recovers over the next year and sell once it does.

I would be a fool if I didn't take the shares, since I have more than doubled my money at this point.

The recent falls in the stock market may have had a poor affect on mine and my husbands share save schemes, however, we have taken advantage of this low and bought many more shares outside our share save schemes in other companies, at what we see are bargain prices. We are also continuing year on year to invest in our companies share save schemes and share incentive programs, and each year so far we are getting a nice lump sum.

It may take some time for the confidence in the markets to be regained, but it will happen, and hopefully we will be quids in when it does. Hey making money involves some risk, yes? But so far it is paying off for us.

Surveys and Testing

I still test products and do surveys for money, which does help towards general everyday costs. Last year I estimate I made around £400-£500, for relatively little effort. Some of the surveys are good, some are bad, it's really about trying to find the best effort to reward ratio. For example, last year one of the best rewards I got was for doing my washing. I would have had to have done my washing regardless of whether I was being rewarded or not. All I had to do was put a piece of coloured cloth in with my wash loads every time. They gave me 2 HUGE boxes of washing powder to use for 12 weeks, so in essence I had free washing for 12 weeks too. I was also rewarded with £30 for filling out 2 surveys about my experience during the trial. Including the washing powder I earned about £40 for approximately 30 minutes work. Not bad really is it? I bet you don't get paid that much for even an hour in your job!

If you want to find out how you too can make some extra cash doing surveys then sign up to some of my favourite survey sites here.

Update Over

So there is my update. My next update will be in about 6 months time, hopefully then I may have more to tell.

If you are trying to escape too, then good luck and keep trying, at least you are giving it a go like me, don't let people put you off by belittling your efforts. Others seem content to simply go to work and moan that they don't get paid enough, at least we are doing something about it!

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