My quest to have £100k Net Worth by 26

rictus123

Which gives me just over 5 years to totally transform my financal situation!!
Plans are in a couple of stages

1. Pay off debts(£12,319.41 as of right this minute)
2. Save up emergency fund (3 months net salary should do short term)
3. Save up house deposit, fees, moving costs, cost of furnishing house etc
4. Build up emergency fund to 1 year of my net salary
5. Start overpaying mortgage as much as possible without occuring fees and charges

5 simple steps to do me the next 5 years.
I will most likely only include my savings and our joint savings while also including value of car,household goods, total equity in our house, only thing not included will be ohs own savings.



Right now this is my situation
3 business loans as followed -
£5,767.87 - £304.28 a month
£2,496.77 - £152.09 a month
£4,308.07 - £253.30 a month
Owe a mate £600 for work done to car - £100 a month



totals of £12,819.41 owed at £809.67 a month

I value my car at £2,000. Will not include business goods i bought with the above loans as they will depreaciate gradually and are not for selling.



So my net worth is at -£10,819.41....so i have to increase net worth by £110,819.41 in just over 5 years to get to my goal.....Lets give it a bash. Will look into pension a bit further along, HR at my work were not helpful in the slightest. My pension is worth a few k just now but will not be included until i know what it all means. :cool:

JustinCredibleGillespie

I'm Team Rictus! If anyone can do it, YOU can.

JCG

xx

VfM4meplse

Well you have no lack of ambition young man. To achieve this, what is your target income for each of these 5 years?

choccyface2006

Good luck! I'll be interested to see how you get on.

Sarah x

Esoog

What do you do out of interest Rictus? Seems to be "rewarding"

rictus123

Got a trade in construction...work may not be most secure but plenty overtime if I can get my name about and a good reputation. Target income would be 38k net this year, I have not looked beyond this calendar year as far as income goes. I am part of many challenges on this forum. Pay off all debt by Xmas 12, I'm aiming to clear my 13.5k by June-july. Save 12k in 12 months this year. I'm going for 15k...even though won't be saving anything until debt is paid off in the summer. Frugal living, getting by on 6k this year for everything except loan payments,car repairs and holidays. Save 120k in 10 years with my aim being 100k by June 2021, my 30th birthday.

The 100k cash by 30th birthday will help my net worth be 100k at 26 as I should be half way there.
Will look more into pensions once debt free.

somethingcorporate

I do love your drive and ambition Rictus, plus you seem to be rooted in reality which I have to admit is incredibly rare for someone your age. Good luck with your plan - I have no doubt if you are committed as you seem you will be well on your way by 26.

Don't be afraid to flex your plan, if you read any of the pension posts (which I think I have seen you posting in before) you will quickly learn that the flexible plan is the best one, so do not feel worried if you have to change things to reach your goals. I made plans assuming I would never have kids, here I am 27 with a baby girl on the way and all the 20 year plans are out of the window

I will try and follow your progress best I can.:T

sorcerer

I would really look into Pension's now if I was you, simply add it to the Net Worth, which is what I do, even if you have to do a SIPP, at least you get 20% back from the government.

rictus123

I am looking into pensions but with no HR department at my work for as far as pensions go, who do i turn to? How do i find out? I get a yearly statement through from construction pension company, will rake these out right now and see what the score is. Will try and see them about contributing more. Will it show up on my payslip if i am putting money away into these?

A 35 year saving plan for pension + £100k in 10 years plus im sure i will be on the mortgage free asap board aswel as soon as i buy, along with a buy to let im sure i will be set for a lovely retirement even by the time i am 30....how that could all change though. Plus will have a wedding and maybe kid inbetween now and then aswel.

I was thinking to keep the liquid cash at a certain level, say £50k or so and anymore above that into pensions/buy to let/overpaying mortgage. After all it just loses money.

somethingcorporate

£50k is way too much in liquid cash. 3-6 months living expenses is advisable to cover emergencies and the rest you can tie up in longer term savings (ISAs / Pensions etc). Otherwise you are heavily exposed to inflation risk by keeping so much in cash.

rictus123

I did mean ISAs though as ISAs are liquid? Wouldnt know where to start with buying a stocks and shares ISA. How high could inflation go?