While it may be nice to start from zero (for the story if nothing else), the actual fact of the matter is I’m not. In detailing my starting point, I can better reflect the decision and progress made towards the eventual goal. I’m going to lay out my monthly budgets, monthly income, investments currently made and the plan for the future here as a reference point to reflect upon when necessary.
Income and Expenditure (monthly)
Joint Income – £3,000
Food – £250
Rent – £550 (going to about £750 in mortgage payments soon)
Council Tax – £140
Utilities (Gas, Elec, Water) – £130
Petrol – £300 (will reduce with move to new house)
Internet – £40 (will reduce when move to new house)
Entertainment – £100 (includes visits to soft play etc for little one)
Gym – £46 (two memberships, will be gone in September)
Phone – £33 (for two people)
Total – £1,589
Savings – £1,411
Savings Rate – 47%
There is a lot of things in here that will be reduced when we move house, we will also increase rent by £200. Some of this will be increasing our net worth though, but some will go towards the interest payable. I’m planning on having savings of about £1,300 once we move but that could change. One of the things that sticks out for me is petrol. Unfortunately, at the moment I have a 100 mile per day round trip but I go on a motorbike that does 65 mpg. This will reduce for me but increase for my partner so I think it’s a net reduction.
I would think the plan would be to find a new job that is much closer to home once we have moved. Will have to wait and see what happens.
I’ve decided to have the value of our home included in this, why will be another post but it seems controversial to do this. I think my reasoning is solid though.
House – £0
Cash – £30,000
Limited Company – £75,000
Shares – £400
Bonds – £0
Tracker Funds – £0
Total – £105,400
So we are holding a lot of cash while we buy another house, this is for the deposit and various other costs associated with moving house. The limited company is a family company that I setup last year with my brothers. We run buy to let housing and my shares are currently worth £75,000 and I hold a director’s position within the company. This should hopefully go up in time.
The shares I hold are from when I was looking at investing a monthly amount. This fell by the wayside when I needed to have cash to buy a house. It will start increasing once things have settled down a bit.
I’ve just got a new job back in April which gave me a 23% pay rise. So I think I’m done for a while in increasing my main income. I am a member of the Army Reserve which brings in a little extra per month. This isn’t guaranteed so I don’t count it in my main income.
I plan in increase my companies housing portfolio over the coming years so will start to take a salary from that as soon as I feel that the cash flow can handle it.
There are other things I am going to do including matched betting, various blogs and maybe dip my toe in forex trading again. Other options are to write some books about things I love like cooking.
One thing I have been keen to do over the past few years is to learn how to code properly. I use a lot of excel and SQL in my day job so would like to take that further into programming mobile apps and learning other computer languages.
I have a fairly active mind and am always looking for ways that would increase my income. I’m not above stealing other peoples ideas and having a go myself. A wise man once said, you’ve got 10 fingers might as well have one in each pie.