Miss KJ's, "Actually I will have it all" with brass knobs on, Diary.

hypno06

slim, and rich.....where do I sign up :rotfl:

MissKJ

ragstoricheswannabe wrote: »

This book sounds interesting..............similar to "think yourself slim"...........

Ha ha,:rotfl: I have that one as well, how sad! Perhaps I should revisit those chapters after I have finished the 100 in this book.
Off to decide what is my "wealthy".....

MissKJ

My goodness, I have had a revelation!

I just wrote an honest list of what I believe would make me "feel" wealthy.

It looks like this

2 average newish cars £300 pcm

Easily afford bills £500 pcm

family gym membership £170 pcm (the one I like is this much)

Nice enough clothes £200 pcm

Food without scrimping £500 pcm

Fuel £200 pcm

Cleaner £100 pcm (used to have one, sigh....)

Entertainment fund £400 pcm ( one family trip to cinema, one family trip to pub lunch each week)

Holidays, at least 2 per year, skiing and summer, plus 2 weekends away save £800 pcm

Emergency fund build £400 pcm (around 10% of income)

Total for home £3570

Home mortgage £1300 added to home costs above total needed £4870
(this doesn't include any debt repayments)

Current joint earnings £4875 pcm

You see I dont want fancy cars, I would be happy with a run around a little newer than my 11 year old heap. I dont want to spend more on bills, I like value for money after all. I dont want a bigger house, I stuggle to keep this clean and tidy. I dont want to go to fancy restaurants, well maybe just occasionally, I like country pub food. I don't want loads of clothes, Next and M&S, one new item per month is enough, and some nice things for the kids. So this is my picture. Revelation is, that actually, this figure is very close to what we earn! If only I had upped my income when we were over spending, and hadn't waited until I needed it due to being in massive debt.

So why dont I feel wealthy? Because I am saddled with debt! :mad:So if we can clear the debt, we will feel wealthy. :cool:Right? Wrong. I also think that the closer you get to your ideal, you also up your ambitions and expectations. So I need to anticipate what I might want next. And that will be a comfortable early retirement, I am sure to "feel" wealthy, that would include an element of not HAVING to work as hard. Kids university costs, I want them to be able to go without running up student debts. And maybe not having to rent our holiday home. So I need to plan ahead as well. So today I am going to try and figure out what this all costs, in real money, because tomorrows chapter is......setting objectives..........

ragstoricheswannabe

Not having the book, i would say for me to feel wealthy it would be:

• having no debt
• having enough money to live comfortably
• having enough money so i can actually work part time and see my kids
• having enough money left over to start savings for the things we want...new car, clothes that fit, holidays etc
• not needing to check the online banking everyday to make sure i have enough money to pay everything.

simple things on paper, but hard to get there in reality.

MissKJ

Thanks ragstoriches, but if it wasn't hard, you wouldn't maybe value it as much when you do arrive there? I don't think people who have always had it easy would want to keep their household bills within reasonable levels like I do, I will never be ripped off by anyone again, when I get there, I want to be savvy! And you are right, we dont want to keep checking balances to see that we can afford the bills, but surely we would like to check our balances daily to see what we have saved or invested? That would be nice.

MissKJ

After doing my hair and make up this morning and contemplating what is "my wealthy" I realise I have missed a couple of things in my "perfect world". I am adding in hairdressing of £100 pcm, I have had the same style forever, as I am not good with styling, and it would feel very wealthy to go once a week for a blowwave....sigh. Also, I havent taken into account hobbies and stuff for my kids. They are entitled to up their lifestyle in our perfect world, so another £100 pcm for hobbies/activities and pocket money. Then the last £25 pcm to save for kids birthdays and another £100 pcm for Christmas. DH and I haven't bought each other christmas and birthday presents for years, so this wold feel like real luxury. So total needed to fund this "wealthy" lifestyle is now, £5100. So we are £225 pcm short, even without any debt. off to think....

MissKJ

as suggested by a lovely person earlier in my diary (esseshebredian?) I have just re-done my SOA. Here it is.


Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 2275
Benefits................................ 135
Other income............................ 0
Total monthly income.................... 5010
Monthly Expense Details
Mortgage................................ 1300 (int only at 6%)
Secured/HP loan repayments.............. 0 (see payplan)
Council tax............................. 165
Electricity............................. 60
Gas..................................... 60
Water rates............................. 41.81
Telephone (land line)................... 23.50
Mobile phone............................ 0 (pay as you go)
TV Licence.............................. 27.9 (in arrears, will be £11 soon)
Satellite/Cable TV...................... 0(freeview)
Internet Services....................... 12.99
Groceries etc. ......................... 300
Clothing................................ 0 (will buy when extra earnings)
Petrol/diesel........................... 100 (DH gets his paid at moment)
Road tax................................ 21
Car Insurance........................... 60
Car maintenance (including MOT).........£20
Other child related expenses............ 0 (agin,only when we get extra)
Medical (prescriptions, dentist etc).... 0
Buildings insurance..................... 52.77
Contents insurance...................... 0 (in with buildings)
Life assurance ......................... 0
Other insurance......................... 31.12
Presents (birthday, christmas etc)...... 25
Haircuts................................ 25
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 2476.09

Assets
Cash.................................... 0
House value (Gross)..................... 270000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 275000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 250000...(1300).....6
Total secured & HP debts...... 250000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
payplan........................184000....128.......0
Total unsecured debts..........184000....128......(on Payplan DMP)
Monthly Budget Summary
Total monthly income.................... 5,010
Expenses (including HP & secured debts). 2,476.09
Available for debt repayments........... 2,533.91
Monthly UNsecured debt repayments....... 128
Amount left after debt repayments....... 2,405.91
Personal Balance Sheet Summary
Total assets (things you own)........... 275,000
Total HP & Secured debt................. -250,000
Total Unsecured debt.................... -184,000
Net Assets.............................. -159,000

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Looks strange I know, but we have another mortage on another property, which is for sale and rented. That costs another £1600 on average after rental income. Thisn is for sale, but until it sells, I can't do much about it. I am trying to negotiate a better deal/interest only with the bank.

MissKJ

So, todays first objectives are:

1. Get costs covered by rental income, whilst waiting for sale on property number 2. Timescales 12 months. I dont know how I am going to do this yet.

2. Increase payments into DMP up to £850 pcm. This leaves no wiggle room at all in budget, so I will be doing this after August payment, so that we are up to date on everything first.

I have sent my proposals to the bank, so I am going to work on:

1. Diary in a reminder every week to the bank until I get the answer I need.
2. Speak to estate agent every 2 weeks to see how the market is going (query lowering price if necessary).
3. Market research of other rentals to see if we can add any improvements that will increase rental income more than the cost.
4. Cost cutting on second property bills?

We do get some extra income in expences here and there, but i cant count this as it varies and there is always something we need it for on such a tight budget, but I am going to try and sweep some into my savings account for big holiday fund. I also need to up our income to make this all bearable. If we up the DMP, our DFD will move forward from year 2133 to 2029, all things remaining equal.

Happytogetdebtfree

WOW you sound like you are doing extreamly well and you sound in good control keep up the good work x

MissKJ

It is easy to fel focussed when you are off work for a week. Sadly I must achieve as much as I can before resuming next week, when it may all feel like too much trouble!