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  • FIRST POST
    • fatrab
    • By fatrab 2nd Jan 18, 9:22 AM
    • 145Posts
    • 290Thanks
    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
    Pay off credit card 1 - £1000 outstanding
    Pay off Loan - £6100. My SOA reckons I currently have £1000+/month available for additional debt payment.
    Pay insurances in full - £400 car and £130 home (last year I paid these monthly - I have learned from my mistake!)
    Cancel Vodafone contracts - £70/month
    Build up £2000 safety fund
    Remortgage in September (Start looking for a new deal in May)

    Year 2:
    Pay off car 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


    From Feb 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................ 3700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3700

    Monthly Expense Details

    Mortgage................................ 800
    Secured/HP loan repayments.............. 402
    Rent.................................... 250
    Management charge (leasehold property).. 0
    Council tax............................. 136
    Electricity............................. 30
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 71
    TV Licence.............................. 12
    Satellite/Cable TV...................... 14
    Internet Services....................... 10
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 460
    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).... 0
    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.......................... 0
    Netflix................................. 6
    Total monthly expenses.................. 2362


    Assets

    Cash.................................... 1000
    House value (Gross)..................... 128000
    Shares and bonds........................ 0
    Car(s).................................. 26000
    Other assets............................ 0
    Total Assets............................ 155000


    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 65300....(800)......3.24
    Hire Purchase (HP) debt ...... 20000....(402)......6.9
    Total secured & HP debts...... 85300.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................6130......167...... .3.1
    Tesco..........................4050......100...... .0
    Total unsecured debts..........10180.....267.......-


    Monthly Budget Summary

    Total monthly income.................... 3,700
    Expenses (including HP & secured debts). 2,362
    Available for debt repayments........... 1,338
    Monthly UNsecured debt repayments....... 267
    Amount left after debt repayments....... 1,071

    Personal Balance Sheet Summary
    Total assets (things you own)........... 155,000
    Total HP & Secured debt................. -85,300
    Total Unsecured debt.................... -10,180
    Net Assets.............................. 59,520

    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by fatrab; 15-01-2018 at 10:15 AM.
Page 2
    • fatrab
    • By fatrab 8th Jan 18, 7:00 AM
    • 145 Posts
    • 290 Thanks
    fatrab
    Back to work today - oooft...

    Last nights left overs for lunch, dinner in the slow cooker, bacon and eggs for breaky.

    My first conscious attempt at a no spend day. Let's do this.
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • Storm89
    • By Storm89 8th Jan 18, 9:57 AM
    • 151 Posts
    • 203 Thanks
    Storm89
    Happy No Spend Day
    • fatrab
    • By fatrab 9th Jan 18, 7:44 AM
    • 145 Posts
    • 290 Thanks
    fatrab
    My first no spend day (yesterday) was a success! Trying for 2 in a row! Have made a shopping list for the next 3 days as all current food will be eaten by lunchtime tomorrow so will go shopping after work tomorrow and that'll be us through til Saturday.


    Received £175 for my December expenses from work today. I had sort-of forgotten about them so that was a pleasant surprise.


    First thought was "oh yes, what will I buy" closely followed with a swift self-applied slap to the head.


    So I've transferred £158 to the emergency fund, which now stands at £1000! That'll do for now, will add more to it in March/April once the Credit card, HMRC and the purchase of a new microwave are taken care of.


    Also, switched the Gas and Electric. It was in my wife's name but the deal has just ended and she'll be on statutory maternity pay as of next month so it seemed sensible to switch to a better deal and transfer into my name/account. £20/month "saved" apparently!


    A few other little things have changed since I last did my SOA back in December so I think I'll re-do it at the start of Feb and get a better picture of where I stand.


    Cheers!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • enthusiasticsaver
    • By enthusiasticsaver 9th Jan 18, 8:48 AM
    • 5,192 Posts
    • 9,885 Thanks
    enthusiasticsaver
    Excellent diary. We have a built in microwave in our kitchen which is still going strong after 20 years!!! Think we have had our moneys worth out of it.
    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 9th Jan 18, 9:24 AM
    • 145 Posts
    • 290 Thanks
    fatrab
    Excellent diary. We have a built in microwave in our kitchen which is still going strong after 20 years!!! Think we have had our moneys worth out of it.
    Originally posted by enthusiasticsaver

    Yes I think you have! I thought 12 years was good!


    We bought a matching microwave, toaster and kettle in 2006 the day we moved in. Never used the toaster so gave it away many moons ago, kettle still going strong. Was looking to replace microwave with similar (Russell Hobbs) but cheapest matching one we can find is £65.


    So it'll be the cheapest(ish) one we can find. Don't need to buy it until 19th Jan as we have the use of one from elsewhere until then and if we're frugal we'll have enough in current account to buy it (assuming £40ish), no need to use emergency fund or credit card.


    Cheers!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 9th Jan 18, 11:42 AM
    • 145 Posts
    • 290 Thanks
    fatrab
    Slight miscalculation in my favour! I hadn't deducted the minimum payment that was taken for Credit Card 1 (MBNA) last week, so the balance is down from £1040 to £978.80!


    Called up and reduced credit limit to £3000 (was £10000). Unsurprisingly, there was a great 0% deal available if I wanted to transfer another balance! Eh.. no thanks!


    Payday can't come quick enough so I can get this card paid off. I will keep the card active for now, as will use it again to pay HMRC and then from time to time I have business expenses which I claim back though my employer.


    I have also amended the direct debit for this card to repay the full outstanding balance from now on.


    I really feel like I'm getting somewhere. I hope this momentum keeps up!
    Last edited by fatrab; 09-01-2018 at 12:04 PM.
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 10th Jan 18, 12:50 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    Not feeling so great today, midweek slump methinks.


    Need to go do a bit of shopping, will fuel up while I'm there. Going to try the downshift challenge at the supermarket.


    Feel like I'm wishing my life away wanting payday to come around so I can start to make an impact on the current situation.
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 11th Jan 18, 10:35 AM
    • 145 Posts
    • 290 Thanks
    fatrab
    You know, I actually think that the fact I had to spend yesterday was what got me down.


    "saved" £5.20 by downshifting. NSD today and feeling good about it too!


    Coasting along now until the 25th (payday). Fingers crossed for no more blips this month.
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • Storm89
    • By Storm89 11th Jan 18, 10:37 AM
    • 151 Posts
    • 203 Thanks
    Storm89
    I feel exactly the same as you with waiting for february. Payday for us is 31st so literally the last day of the month. But we feel the same with just coasting along, don't want to wish my life away but wish it was february so we can start properly .
    • fatrab
    • By fatrab 11th Jan 18, 12:09 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    I feel exactly the same as you with waiting for february. Payday for us is 31st so literally the last day of the month. But we feel the same with just coasting along, don't want to wish my life away but wish it was february so we can start properly .
    Originally posted by Storm89
    It's quite a hard thing to come to terms with, that you're basically just going to have to sit there and get on with it when you're used to going out doing what you want.
    Its finding new things to do, ways to be entertained without spending, challenging yourself to be thriftier and while focussing so hard on not making a mistake.

    Then, when payday comes, there will be a day or two of arranging and allocating money (which I'm looking forward to) but then the lull until the next event in your timeline occurs.

    At least February is a 4 week month!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 12:20 PM
    • 5,192 Posts
    • 9,885 Thanks
    enthusiasticsaver
    Slight miscalculation in my favour! I hadn't deducted the minimum payment that was taken for Credit Card 1 (MBNA) last week, so the balance is down from £1040 to £978.80!


    Called up and reduced credit limit to £3000 (was £10000). Unsurprisingly, there was a great 0% deal available if I wanted to transfer another balance! Eh.. no thanks!


    Payday can't come quick enough so I can get this card paid off. I will keep the card active for now, as will use it again to pay HMRC and then from time to time I have business expenses which I claim back though my employer.


    I have also amended the direct debit for this card to repay the full outstanding balance from now on.


    I really feel like I'm getting somewhere. I hope this momentum keeps up!
    Originally posted by fatrab
    I read yesterday that due to charges on credit cards being abolished from mid January HMRC are no longer accepting tax payments on credit cards. You may want to double check on that.
    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 11th Jan 18, 12:32 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    If that's the case then I may need to use either my emergency fund or overdraft. Haven't been in overdraft for over a year and had no intention of ever using it again.

    Suppose it would make sense to use the emergency fund and keep the overdraft for emergencies if that's the case.

    I'll look into it today as they told me last week I could pay it by credit card.

    Thanks
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 11th Jan 18, 12:39 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    You are correct, last day for credit card payments is tomorrow. Oh well, that part of the plan is up in the air....
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 12:43 PM
    • 5,192 Posts
    • 9,885 Thanks
    enthusiasticsaver
    Unless you pay it today or tomorrow? I would use the emergency fund rather than overdraft.
    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 11th Jan 18, 12:48 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    Thinking about it logically, if I pay by credit card I'll need to pay a fee. I have the money available, I'd be as well using it.


    I have £1000 exactly in the fund, my tax bill is £1017.60 and I'll be claiming back over £3800 in April which is the annoying part.


    I can rebuild the fund, I'd never had one until last month and I survived up until now just fine!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 12:51 PM
    • 5,192 Posts
    • 9,885 Thanks
    enthusiasticsaver
    How frustrating you have to pay and then claim back. Is this something you have to do every year or just a one off? I also have to claim a tax refund after April as just retired and have paid tax even though I will be under the personal allowance for 2017/2018.

    With your surplus you will soon build up the emergency fund again and I would not pay a fee either.
    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 11th Jan 18, 1:01 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    I received an over payment last year as I claimed business mileage but only informed them of one employment within the tax year. I only told them about the employment to which the business mileage related to. I didn't realise the tax I paid with the other employer would have affected my claim.


    Basically, I left my employer in October 16 and had a business mileage claim from April - Oct 2016


    From Oct 2016 until Sep 2017 I worked for someone else and didn't have any business mileage.


    Then went back to original employer, and now have business miles again.


    All through self-assessment as the amount claimed is far to high to be filed on a form P87.


    It's just a one-off blip, should never have left current employer in the first place. The grass was not greener on the other side of the fence!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 11th Jan 18, 1:12 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    I am now thinking that paying off and cancelling the credit card is a wiser choice come payday.
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • fatrab
    • By fatrab 12th Jan 18, 12:16 PM
    • 145 Posts
    • 290 Thanks
    fatrab
    Revised plan:


    Pay HMRC on 25/1/18 (debit card - no fee!)
    Await billing cycle to complete on MBNA which will see balance taken in full by DD on 27th Feb (no interest due)
    Close MBNA account 28/2/18 or as soon as credit is applied from DD.


    I should be able to do this without dipping into overdraft, but the emergency fund might take a slight hit.


    Wonder how long it'll be before the revised plan needs revised?!
    Wannabe debt free by 31/12/2022 - Wannalose 3st in the process - 8lbs lost so far
    10 x £2 coins (#32) - 8/12 NSD in January
    • MeenaM
    • By MeenaM 12th Jan 18, 12:25 PM
    • 132 Posts
    • 263 Thanks
    MeenaM
    I'm the same waiting for payday , aghhh but will be good when it does come
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4673.58- 0% ends April 2019 virgin 0% ends july 2020 £4138 4055.29AA Credit Card £860 275.16- 0% ends Dec 2017 Sainsburys Credit Card £521.27-429.01 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £210/£1000
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