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  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 371Posts
    • 677Thanks
    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 11
    • savingholmes
    • By savingholmes 14th Feb 18, 6:54 AM
    • 8,841 Posts
    • 16,679 Thanks
    savingholmes
    Congrats on the weightloss and identifying the source of your debt. We like you are debating whether to change our car loan / find a way of paying it off earlier as it is our most expensive debt.
    Today is a new day £1311/280 £10 a day Feb Challenge
    • fatrab
    • By fatrab 14th Feb 18, 10:14 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Some good news this morning. Just got a call to say there's a contract starting next week for around 10 weeks which might justify a little bit of overtime. It wont be much, 4 or 5 hours per week, but every little helps! Been quiet since mid November so it's good that things are picking up a little.

    This might mean I've got less time to think about my debt too as I've become obsessed with it recently.

    Been thinking about the car too. Just in terms of how long I plan to keep it. I'm thinking around 2 years from now it'll be time for a change. The car turned 3 years old in December but it only had 3000 miles when I bought it in October (previous owner only used it on dry weekends!) and it just hit 10,000 on Monday. So in terms of reliability there shouldn't be any problems. I cover roughly 20,000 miles per year, so in 2 years time when the car is 5 years old it will still have reasonably low mileage of around 50,000 so that's probably going to be the sweet-spot to try and sell for maximum return. Any higher then it'll be harder to sell and will be devalued further.

    It's not a cheap car to run and probably wasn't the most sensible choice but I like it and it's fit for the purpose it's being used for. I spend too long at the wheel every week not to enjoy what I drive.

    So in 2019 I'll need to start thinking about saving the money to add to whatever the current car sells for, to buy a replacement. But I will be downgrading so hopefully wont need to put much to the next car.

    It's all about sensible choices from here on in.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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 15th Feb 18, 11:06 AM
    • 277 Posts
    • 388 Thanks
    Storm89
    hi fatrab just catching up, well done on the weight loss front and don't stress over the slip up with the breakfast roll! We have always bought our cars up front and we never have anything fancy but are looking to replace our current one in the next couple of years. I don't even drive myself so the cost of lessons and passing a test etc is on the horizon once the debt is gone. I think it's really good being able to reflect on where the money has gone and you've done well to have utilised balance transfers. I'm with you with obsessing over debt lol.
    • fatrab
    • By fatrab 15th Feb 18, 11:52 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Thanks Storm, definitely going to give myself a little leeway next month with things like alcohol and takeaways but I don't want to undo any of the weight loss!

    On the giving up booze thread, there's a line of thought that if you allow yourself cheat days you're actually making it harder for yourself by having to make the decision whether or not to drink. Same rules apply to eating out unfortunately. Just decide whether you're going to do it or not, then stick to it. It sounds like a really easy plan doesn't it? Lol

    I've got a week off in March, not going anywhere just going to spend time at home before Mrs fatrab goes back to work and hopefully get a few little bits of decorating done, but being realistic I'll probably have a few beers in the house while I'm decorating. I've still got 27 beers left from Christmas and I have no idea how I've managed to resist drinking them!

    Halfway through the month and the payday waiting game is on!

    At least it's Friday tomorrow
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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 16th Feb 18, 2:28 PM
    • 371 Posts
    • 677 Thanks
    fatrab
    Well the weekend is upon us and another day closer to debt freedom!


    Not a lot to report today, wasn't at home to weigh in this morning so will do that tomorrow. No snacks, no alcohol and no take aways are beginning to take their toll, I'm fantasizing about pizza, kebabs and curries but I will resist.


    I think a wee treat will be well deserved after payday/month end.


    Have a great weekend
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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)
    • CoffeeCakeYarn
    • By CoffeeCakeYarn 16th Feb 18, 2:32 PM
    • 208 Posts
    • 663 Thanks
    CoffeeCakeYarn
    Happy Friday! I am with you in fantasising about the bad food - an freely admit I have a cheat meal once a week. It really does help!
    PAY BACK THE FUN SPEND! £38.72/£137.67
    MBNA - £2233.51/£2385 - 6.35%
    Emergency Fund £26/£1000
    • fatrab
    • By fatrab 17th Feb 18, 11:12 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Nearly there!!!! 16st 0lbs this morning! 1st 8 lbs off since Boxing day!


    Wish the debt was coming down as fast at the weight!


    Hope you're all having a good weekemd!
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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)
    • Debtnomoreplease
    • By Debtnomoreplease 17th Feb 18, 4:00 PM
    • 55 Posts
    • 145 Thanks
    Debtnomoreplease
    Hey Fatrab, just caught up with your diary-apologise I've been slacking lately!

    Huge well done on your weight loss-fabulous achievement since Boxing Day!

    Bet you're glad that tax bill is gone-well done again!

    Keep you chin up and carry on battling through the way you are doing, you're doing great!
    • Honeysucklelou2
    • By Honeysucklelou2 17th Feb 18, 7:29 PM
    • 664 Posts
    • 2,630 Thanks
    Honeysucklelou2
    Fantastic weight loss, well done!
    paydbx #93 £483/£8,000.
    Loan £17k - paid off in Aug 2017. Home improvement loans £3342 March 2017. £3123 in Jan 18
    • savingholmes
    • By savingholmes 17th Feb 18, 9:46 PM
    • 8,841 Posts
    • 16,679 Thanks
    savingholmes
    Impressive weightloss. I've gone the other way... Only put a pound on over Xmas but in the last 2 weeks put about 6Lb on.... Need to get back on track.
    Today is a new day £1311/280 £10 a day Feb Challenge
    • supersaver1000
    • By supersaver1000 18th Feb 18, 8:25 AM
    • 1,953 Posts
    • 12,176 Thanks
    supersaver1000
    Morning Fatrab, I've just started reading your thread and had to comment on the car thing. Our family used to joke that OH was keeping the german car market afloat single handedly. Did all the pimping up the new cars and then the almost new ones and waved goodbye to the money when a change was 'needed'. I think we could have bought several houses with the cash wasted. We now have 2011 and 2012 plates and OH is really happy with his vehicle and the low maintenance costs. He did used to do lots of travelling for work (70k+ per year) and I know a new car was probably more cost effective but it was all the buying them and then selling them months or a year later that was the problem. He's cured now thank goodness.


    I also really like your idea of concentrating on the old debt and being happy (if that's the word) with debt that is actually buying assets. Our two loans (around £6k each) have purchased vehicles and business assets and apart from the monthly payments, I don't feel bad about those - could sell up and pay them off if we ever needed to. Its the credit card debt of around £7k that has nothing attached to it (apart from long gone holidays, cars, clothes and some jewellery) that makes me feel really uncomfortable. Sorry to hijack your thread but its LBMs like these that really give me ideas and motivation - thank you.

    Congrats on the weight loss and I think I read that you have a newish baby too - huge congratulations!

    Look forward to reading the rest of your thread soon. SS
    New Job - Degree started - get rid of big OD - Credit Cards repaid by April 2019 - Work Promotion
    Consumerism is.... buying things you don't need with money you don't have to impress people you don't know and probably wouldn't like even if you did know them.
    It's not getting what you want, it's wanting what you've got
    • fatrab
    • By fatrab 19th Feb 18, 8:47 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Thanks SS, yeah if I could recover every penny frittered on cars over the years I'd be living in a mansion!


    My downfall was a particular high performance Japanese brand which I have been fascinated with since Colin McRae won a few rally championships back in the early 90's. Although expensive to run they were pretty much reliable cars, I've had 10 of them, but one car in particular let me down, catastrophically! It was a global problem with the car - not anything to do with my modifications - but as per every other car manufacturer as soon as you modify a car they won't entertain any warranty work. So the car had to be transported back to the specialist to be un-modified and then transported back to the dealer for repair. I hate to think how much I lost on that car, and how different my current situation might be if I hadn't bought it.


    Apparently, you learn from your mistakes!
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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 19th Feb 18, 9:27 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Another Monday, another week closer to the big day (payday, debt-free day, weight goal, retirement etc etc.....)

    The weekend was a bit of a mixed bag of affairs.

    Good points:
    Started decorating the kitchen, conservatory and touching up a few bits in the living room
    Broke the 1 and a half stone weight loss barrier
    No alcohol
    Advertised Wife's car

    Not so good points:
    Went shopping on Saturday morning and didn't buy anything for breakfast, ended up buying a few rolls from local sandwich shop
    Went out for a meal yesterday, it was my Mum's birthday last week and my oldest Son's birthday is this week so killed two birds with one stone.

    Mrs fatrab paid for the meal and for the decorating items, and we have only advertised her car on free car pages so far, so my spending for the week doesn't look too bad:

    Weekly stats:
    Fuel - 56%
    Shopping - 37%
    Eating out - 7%

    This week I'm not eating out. It needs to stop. It's only due to bad planning and I need to give myself a shake. Even though I lost another 3 pounds this week, there was a part of me that was disappointed that I hadn't broken into the 15's. It's going to happen this week!

    On Sunday, at the meal, I almost caved in. I ordered a pint of lager. It sat in front of me for 10 minutes before I decided not to drink it. I gave it to my son (the older one who's 22, not the baby!). That was hard.

    I was also on the brink of ordering a replacement credit card for the one I cut up. I'm going to struggle this month as the payment due to clear it is going to leave me with no surplus. But I haven't and I won't. However I think there's a very high chance that the emergency fund might get dipped into this coming month. I am going to try as best I can for that not to happen but I'm about £100 short by my calculations.

    That tax bill last month really did do a bit of damage.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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)
    • Drawingaline
    • By Drawingaline 19th Feb 18, 7:30 PM
    • 342 Posts
    • 1,219 Thanks
    Drawingaline
    Your willpower is so much better than mine. Well on the food front anyway! Well done.
    • savingholmes
    • By savingholmes 19th Feb 18, 8:20 PM
    • 8,841 Posts
    • 16,679 Thanks
    savingholmes
    That's the biggest challenge isn't it - not creating new debt when things go wrong. Stick with it.
    Today is a new day £1311/280 £10 a day Feb Challenge
    • Storm89
    • By Storm89 20th Feb 18, 8:33 AM
    • 277 Posts
    • 388 Thanks
    Storm89
    You are doing fantastic with weight loss, we have lost all motivation in this house. It's annoying about the tax bill but dipping into emergency fund won't be the end of the world , it is an emergency of sorts as you don't want to add to the debt. You're doing really well
    • fatrab
    • By fatrab 20th Feb 18, 11:16 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    we have lost all motivation in this house.
    Originally posted by Storm89

    Well give yourselves a good talking to! Lol, it's so easy to let things slip. I've had numerous conversations with Mrs fatrab when I notice things are slipping. I seem to be more aware of them, or at least more willing to try and prevent them happening, than she is.


    It feels like you're fighting too many battles at once sometimes!
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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 20th Feb 18, 11:29 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    The trials and tribulations of selling a car...
    I'd forgotten how many utter space cadets you need to deal with when you're selling a car.

    Honestly, people don't read adverts. When you clearly say "No swaps" and the first person who contacts you asks if you want to swap for their hunk of junk you start to ask yourself if it's worth the hassle.

    Then you have people who tell you "it's not worth it" even though they've not seen it, obviously haven't looked at the price similar models are advertised at, let alone the book price. One chap offered me £2000 less than the asking price! How can you make an offer on a car that you haven't seen, or even asked any questions about?

    I've even had one person ask me if I'd like to sell the floor mats separately!!!

    I've only advertised on free pages so far, so maybe the audience reached so far isn't exactly my ideal demographic.
    Last edited by fatrab; 20-02-2018 at 4:22 PM.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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)
    • deux x m
    • By deux x m 20th Feb 18, 10:29 PM
    • 9 Posts
    • 23 Thanks
    deux x m
    Hi fatrab - just caught up with your diary. Looks like you are going great guns on both the debt and the weight. NIce!
    • fatrab
    • By fatrab 21st Feb 18, 8:11 AM
    • 371 Posts
    • 677 Thanks
    fatrab
    Morning all!

    Not a great deal to report in the past 24 hours. Nothing much has changed financially and my next weigh in will be Saturday morning.

    I'm doing really well at not snacking and not impulse buying. Looking back, it used to be normal that I'd go to the shop/bakery/cafe/snack van twice a day, probably spending between £4-£8 each time. It's horrific to think how much money I must have spent.

    I think the benefit of this saving will take a few months to show itself properly, as the amount of "stupid" debt takes a little bit of time to clear. Hopefully by March's payday things will be looking rosier.

    Payday this month falls on Sunday the 25th so won't be in my bank until the 26th. DD for CC1 comes out on the 27th, clearing the balance "IN FULL" and then it'll be cancelled.

    There will be a big smiley face that day, I can assure you!
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 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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