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  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 388Posts
    • 706Thanks
    fatrab
    My 5 year plan
    • #1
    • 2nd Jan 18, 9:22 AM
    My 5 year plan 2nd Jan 18 at 9:22 AM
    Happy new year!

    I made a thread at the end of last year in the DFW section (http://forums.moneysavingexpert.com/showthread.php?t=5756197) because of a few silly financial decisions I made in the past year and wanted to set them straight. As part of that I made a spending diary for week and realised how much more I was spending than what I though I was.

    So I promised 2018 was going to be different and that I'd make a thread here to set my goals and note down any achievements!

    My 5 year plan looks like this:

    Year 1:
    Pay HMRC - £1017 - PAID 25/1/18 (page 5)
    Pay off credit card 1 - £978.80
    Overpay car finance - £18500 remaining
    Pay insurances in full - £400 car and £130 home (last year I paid these monthly - I have learned from my mistake!)
    Cancel Vodafone contracts - saving £70/month, 3 contracts ending in July/Oct/Dec
    Build up £2000 safety fund
    Remortgage in September (Start looking for a new deal in May)

    Year 2:
    Pay off car finance
    Pay off loan
    Continue to build up the safety fund

    Year 3:
    Pay off credit card 2 (currently on 0% deal)
    Overpay mortgage if possible

    Years 4 & 5:
    Overpay mortgage. I have 7 years and 8 months remaining at the moment but I have been making regular overpayments and I'm due to re-mortgage in September at the end of a 5 year fix.
    At the end of year 5 have enough money saved to pay any outstanding balance on the mortgage.

    Obviously as each debt is paid off I'll have extra to pay to the next debt, this is where I'll struggle. It'll take a lot of commitment and focus not to go bananas with any spare cash but I'm 43 and want to be debt free by 50. I can do this in 5 years. Debt free by 48 would be amazing!

    Wish me luck!

    Robert


    NOTE: Due to a malicious attack some diaries disappeared and this was one of them. I started a new one, but the nice people at MSE towers managed to recover my original one and they're now merged, from page 6 onwards.

    From March 2018 onwards:


    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2
    Monthly Income Details

    Monthly income after tax................ 3500
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 175
    Total monthly income.................... 3675

    Monthly Expense Details

    Mortgage................................ 801
    Secured/HP loan repayments.............. 402
    Rent.................................... 250
    Management charge (leasehold property).. 0
    Council tax............................. 113
    Electricity............................. 35
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 70
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 13
    Internet Services....................... 10
    Groceries etc. ......................... 230
    Clothing................................ 0
    Petrol/diesel........................... 300
    Road tax................................ 42
    Car Insurance........................... 34
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 6
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 13
    Contents insurance...................... 0
    Life assurance ......................... 7
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 100
    Netflix................................. 6
    Total monthly expenses.................. 2514.12


    Assets

    Cash.................................... 1200
    House value (Gross)..................... 128000
    Shares and bonds........................ 0
    Car(s).................................. 24000
    Other assets............................ 0
    Total Assets............................ 153200


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 64730....(801)......3.14
    Hire Purchase (HP) debt ...... 18500....(402)......6.9
    Total secured & HP debts...... 83230.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................6021......167...... .3.1
    Credit Card....................4050......110.......0
    Total unsecured debts..........10071.....277.......-


    Monthly Budget Summary

    Total monthly income.................... 3,675
    Expenses (including HP & secured debts). 2,514.12
    Available for debt repayments........... 1,160.88
    Monthly UNsecured debt repayments....... 277
    Amount left after debt repayments....... 883.88

    Personal Balance Sheet Summary
    Total assets (things you own)........... 153,200
    Total HP & Secured debt................. -83,230
    Total Unsecured debt.................... -10,071
    Net Assets.............................. 59,899

    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by fatrab; 13-02-2018 at 11:51 AM.
Page 1
    • EscapingTheAlarm
    • By EscapingTheAlarm 2nd Jan 18, 9:25 AM
    • 91 Posts
    • 203 Thanks
    EscapingTheAlarm
    • #2
    • 2nd Jan 18, 9:25 AM
    • #2
    • 2nd Jan 18, 9:25 AM
    It sounds like you!!!8217;re very determined and have a great goal to work towards! Good luck!
    ETA x
    • Honeysucklelou2
    • By Honeysucklelou2 2nd Jan 18, 10:10 AM
    • 673 Posts
    • 2,678 Thanks
    Honeysucklelou2
    • #3
    • 2nd Jan 18, 10:10 AM
    • #3
    • 2nd Jan 18, 10:10 AM
    Looks like a focussed plan- good luck with the debt busting.
    paydbx #93 £483/£8,000.
    Loan £17k - paid off in Aug 2017. Home improvement loans £3342 March 2017. £3123 in Jan 18
    • Buffythedebtslayer
    • By Buffythedebtslayer 2nd Jan 18, 10:34 AM
    • 15,041 Posts
    • 48,989 Thanks
    Buffythedebtslayer
    • #4
    • 2nd Jan 18, 10:34 AM
    • #4
    • 2nd Jan 18, 10:34 AM
    I am pondering a 5 year plan as well, Hmmm.

    Lots of luck with it all XXX
    Penny a day Challenge, Frugal living challenge, £1 a day challenge, VSP challenge, Sealed Pot Challenge.
    • WannabeFree
    • By WannabeFree 2nd Jan 18, 10:55 AM
    • 1,120 Posts
    • 9,173 Thanks
    WannabeFree
    • #5
    • 2nd Jan 18, 10:55 AM
    • #5
    • 2nd Jan 18, 10:55 AM
    Good luck
    “Once you hit rock bottom, that's where you perfectly stand; That's your chance of restarting, but restarting the right way.”
    • fatrab
    • By fatrab 2nd Jan 18, 12:17 PM
    • 388 Posts
    • 706 Thanks
    fatrab
    • #6
    • 2nd Jan 18, 12:17 PM
    • #6
    • 2nd Jan 18, 12:17 PM
    I am pondering a 5 year plan as well, Hmmm.

    Lots of luck with it all XXX
    Originally posted by Buffythedebtslayer
    What's stopping you? Go for it


    Best of luck and thanks everyone for the encouragement!
    • doingitanyway
    • By doingitanyway 2nd Jan 18, 12:20 PM
    • 2,535 Posts
    • 12,104 Thanks
    doingitanyway
    • #7
    • 2nd Jan 18, 12:20 PM
    • #7
    • 2nd Jan 18, 12:20 PM
    I am another 5 year planner. Whenever I panic I look back at the plan and think 'it is okay, you are on-plan.' It helps inform what I do as i ask 'is this in the plan?' and if it isn't I swerve.

    Good luck. I will be following
    JANUARY 2016/SECURED DEBT=24,822/February 2018=795
    MORTGAGE FREE 25/07/16
    • fatrab
    • By fatrab 2nd Jan 18, 12:28 PM
    • 388 Posts
    • 706 Thanks
    fatrab
    • #8
    • 2nd Jan 18, 12:28 PM
    • #8
    • 2nd Jan 18, 12:28 PM
    It helps inform what I do as i ask 'is this in the plan?' and if it isn't I swerve.
    Originally posted by doingitanyway
    Good advice, thanks
    • Debtnomoreplease
    • By Debtnomoreplease 2nd Jan 18, 3:40 PM
    • 55 Posts
    • 145 Thanks
    Debtnomoreplease
    • #9
    • 2nd Jan 18, 3:40 PM
    • #9
    • 2nd Jan 18, 3:40 PM
    Hi, good luck with your 5 year plan-something I think I'll look into doing too.
    All the best and look forward to watching your journey :-)
    • enjoyyourshoes
    • By enjoyyourshoes 2nd Jan 18, 3:45 PM
    • 1,043 Posts
    • 1,275 Thanks
    enjoyyourshoes
    Just ensure you can pay off the 0% CC deal in year 3 and you don't incur the charges post ending the deal.

    It might be worth either:-

    1.0 Doing cat flow for the 5 years with DD's set up to pay off the major loans/CC

    2.0 paying off CC 0% in year 2 instead of loan (depends on early repayment charges on loan, loan interest rate and thew cash flow mentioned above.

    Again Mortgage , check any early repayment charges and maximum allowance to overpay each year. This could be added to cash flow discussed in 1.0
    Debt is a symptom, solve the problem.
    • fatrab
    • By fatrab 2nd Jan 18, 5:21 PM
    • 388 Posts
    • 706 Thanks
    fatrab
    Just ensure you can pay off the 0% CC deal in year 3 and you don't incur the charges post ending the deal.

    It might be worth either:-

    1.0 Doing cat flow for the 5 years with DD's set up to pay off the major loans/CC

    2.0 paying off CC 0% in year 2 instead of loan (depends on early repayment charges on loan, loan interest rate and thew cash flow mentioned above.

    Again Mortgage , check any early repayment charges and maximum allowance to overpay each year. This could be added to cash flow discussed in 1.0
    Originally posted by enjoyyourshoes
    Hi, thanks for the comments.


    Yes, I've set the monthly payment on the CC so that the balance is clear at the end of the 0% term so all good there.


    Car finance is 6.9% so would rather pay it off asap and let the CC run it's course.


    Current mortgage is with Santander who allow 10% overpayment, however the mortgage I fancy switching to in September (assuming its still available) allows 20% overpayment with no penalty. But I can't see overpayments being a possibility in years 1 or 2 so whatever mortgage I go for next really needs to be the lowest possible cost over 2 or 3 years (by cost I mean set up fee & interest rate). I would like to shorten my term again as the lower interest rates currently available would mean keeping my payment the same over a shorter term (currently 3.24% - £800/month)


    Cheers
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • fatrab
    • By fatrab 3rd Jan 18, 10:20 AM
    • 388 Posts
    • 706 Thanks
    fatrab
    So, with this new motto "If it's not in the plan - don't do it!" (thanks doingitanyway), what exactly is "the plan"?


    Here goes -


    Cut out unnecessary spending, have little or no waste and put the money saved to the first target debt, then as each debt is cleared put the extra money to the next debt.


    I'll be keeping a weekly spending diary and cost sheet. The cost sheet is easy enough as I already have a spread sheet of monthly income & outgoings so I can amend and add to that as necessary.


    But what about the daily/weekly spending?


    When I did this exercise a few weeks ago I just wrote everything I spent in my work diary, but is there a better way? Are there any apps available for logging expenditure or is a written pocket diary the way to go?


    What do you do?


    Thanks
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • Storm89
    • By Storm89 4th Jan 18, 9:53 AM
    • 284 Posts
    • 414 Thanks
    Storm89
    Just searched for your diary after your comment on my thread. Sounds like a good solid plan - I like the idea of a 5 year plan actually . I never think of mortgage as debt but I suppose it is really , it's great that you're overpaying that might be what I look into doing once my debt from the cards is gone.
    • Honeysucklelou2
    • By Honeysucklelou2 4th Jan 18, 6:20 PM
    • 673 Posts
    • 2,678 Thanks
    Honeysucklelou2
    I use a spending tracker app. It was free to download and allows me to track spending and note category of expenditure. It gives a running total of amount spent and amount remaining and presents all the info in a bar chart or pie chart whichever you prefer. I used to record spending in a notebook but this app is quicker and visually effective.
    paydbx #93 £483/£8,000.
    Loan £17k - paid off in Aug 2017. Home improvement loans £3342 March 2017. £3123 in Jan 18
    • enthusiasticsaver
    • By enthusiasticsaver 4th Jan 18, 6:48 PM
    • 5,705 Posts
    • 11,304 Thanks
    enthusiasticsaver
    A 5 year plan is good but don!!!8217;t ignore pension planning in that too.

    I use clear checkbook app on my phone to record spends. I have used spending tracker too in the past but clear checkbook is better for keeping track of investments and lots of different accounts. Spending tracker just records spends.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fatrab
    • By fatrab 5th Jan 18, 8:02 AM
    • 388 Posts
    • 706 Thanks
    fatrab
    Thanks for those, I'll give spending tracker a try. Just need something for noting down spends.


    Have a small pension deducted from salary but it won't be enough. My Wife has a good pension through her employer. We've decided to focus on our mortgages for now as my Wife also owns a house which generates a rental income.


    Tax man wants just over £1000 from me which is most definitely not in the plan! It's really annoying as I'll be claiming back way more than that in April. Was trying to get them to amend my tax code and get it back that way, but they won't as it was an overpayment last year, apparently.


    A minor hiccup.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • fatrab
    • By fatrab 6th Jan 18, 8:35 AM
    • 388 Posts
    • 706 Thanks
    fatrab
    Come payday (25th) I'm in a position to clear my credit card balance (£1040) but my tax bill needs to be paid by 31/1/18.


    Am I correct in assuming that if I pay the tax bill by credit card after I've cleared the balance then I won't pay any interest?
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 8:44 AM
    • 5,705 Posts
    • 11,304 Thanks
    enthusiasticsaver
    That!!!8217;s right as the tax bill won!!!8217;t show up until your next statement.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fatrab
    • By fatrab 6th Jan 18, 10:26 AM
    • 388 Posts
    • 706 Thanks
    fatrab
    That’s right as the tax bill won’t show up until your next statement.
    Originally posted by enthusiasticsaver

    Thought so, thanks for confirming.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • fatrab
    • By fatrab 7th Jan 18, 8:35 AM
    • 388 Posts
    • 706 Thanks
    fatrab
    Another little hiccup today. The microwave has decided to pack in. It's 12 years old so I suppose it's lasted ok.

    We need it for sterilising the baby's bottles so an unavoidable expense. Suppose that's why we have an emergency fund! Otherwise it would have been put onto the CC.

    Hopefully spot a bargain today at the sales.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 15/18 NSD - 16/19 Lunches - 23/28 AFD - 19/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
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