My quest to have £100k Net Worth by 26

Ilya_Ilyich

Fair enough. Best of luck mate.

acs_2

rictus, im not going to pick you up on inconsistencies in previous posts but i am going to pick you up on your ambition - you have bags of it which is a good thing. my simple advise is learn to walk before you learn to run. forget being worth millions for now, and look at the cold hard fact - youre in debt and whilst youre in debt youre worth naff all....so.....

1) do the numbers and find out your debt, to the penny, including any early repayment costs

2) stop spending and investing - pay the debt off first.

3) take a look at your business and make sure its not running at a loss and your have positive cash flow.

4) figure out your monthly SOA +\- (all income minus all expend) (everything from food to fuel to national insurance, EVERYTHING)

5) you should now have a figure that is your monthly leftover.... you can either spend it, invest it or save it on the way to being wealthy


5 easy steps to being in the black at least, and that is the foundation you need before you go claiming you will be worth X by 'date'

just my 10 pence worth...

all the best.


4)

rictus123

Thanks acs, that is the kind of posts i am looking for. Step one is most definatly eliminate all debt then i will worry about saving.

acs_2

rictus123 wrote: »

Thanks acs, that is the kind of posts i am looking for. Step one is most definatly eliminate all debt then i will worry about saving.

No problem. Don't over complicate things mate. Im a little older than you, im 27, and when i was 19, i had very similar aspirations and i had nothing apart from my monthly wage and i still lived at home with a parent. Don't take offense here, but i think you're in the same boat as i was, obsessed with being wealthy and very erratic.

8 years later i own 3 properties, 2 mortgage free and one with around 58k left on the mortgage debt. I have several ounces of Gold which is maturing nicely in price and has been a good investment. I don't make major money, but my overheads are low and if you exclude the remaining mortgage, i have no debt (credit cards, car loans etc).

how did i do this...? i followed my own 5 step plan, got to the point where i knew what i had left over every month and stuck to making what i had work well for me. It just takes discipline and a bit of entrepreneurial spirit...

Keep it simple, keep it rational, keep your feet on the ground....

or learn the hard way, and trust me, you will...

markdebby

I am heading towards retiring and love reading rictus posts.
Sure he is not hurting anyone and if you don't like what he says there are many more posts

acs_2

markdebby wrote: »

I am heading towards retiring and love reading rictus posts.
Sure he is not hurting anyone and if you don't like what he says there are many more posts

exactly, He's having a go and trying to make something of his life. Sure he's got his flaws, but havnt we all?

At least he isnt asking for ideas on how to spend his benefits and boasting about his free council house!!

eviekins

I'm of a similiar age to you Rictus and always enjoy reading your saving aspirations!
I think the psychological analysis from certain members was slightly uncalled for! It's been explained many times that he has taken on a debt for tools to therefore increase income. How hard is that to understand? Sounds totally logical to me.
Good luck to you, prove the cynics wrong!

geneer

RenovationMan wrote: »

Life is full of people like this, but they never have the balls to say anything like this to your face, they do get brave on anonymous forums though.

If you don't mind me saying so, you don't appear all that unwilling make "brave" statements onanonymous forums yourself.

RenovationMan wrote: »

Deary me, what a nasty turn this thread has taken since I posted my "Good Luck" message. FWIW, I have also had a lot of negative attention because of the mortgage free challenge I set myself and because of the large overpayments I initially made.

Some people can't stand the thought that others have financial goals and set themselves challenges and they can't stand the thought that someone is doing much better financially than they are.

I suspect your "mortgage free" challenge isn't the problem RenovationMan. You are after all a single individual on an anonymous internet forum. The proclaimed size of your overpayments are unlikely to effect individuals in any significant way.

I'd venture to suggest its your obvious need to express your "status" which rubs people the wrong way. For example using phrases like "large overpayments" whilst maintaining a record of your "large overpayments" in your sig. Just a though, but you might want to tone it down.

In general, I must admit, I know what you mean though.
I recently posted that I bought a house with a 25% deposit, and had been overpaying since to protect myself from potential interest rate increases.

For some reason this attracted lots of negative attention.
Some people just couldn't seem to stand the fact that someone else is doing well. Whats that all about eh?

Anyway, good luck with your mortgage free challenge.
I'll keep at my own, but don't feel bad If I'm not compelled to give daily updates.

rictus123

Well I am not getting rid of this username and dont see why I should just because mlf said so. Even falling short of my challenges and dates I will still be going into 2013 with no debt and a little savings behind me,that gives me first half of 2013 to save for house deposit. I only need half of everything, 8k each for deposit should be enough.

lvm

Ok, I'm going to stick my oar in here, having read this from the start. Ignoring the inconsistencies and changing goals and targets, it's still rather entertaining!

So...I'm going to impart some wisdom and I hope it comes in useful.

First of all, you're in an excellent position given that you seem to know what you want and *kind of* how you're going to get it. Now, a big assumption here...the debt you originally accumulated - was this reckless spending on things you wanted but didn't have the patience to wait for? I was pretty much like this as soon as I was able to get credit and just bought things because I could. I'm only assuming you're like this because you're very vocal about how eager you are to get things and so quickly I'm imagining that you were possibly like that with other things (getting a car, new mobile phone etc). Could be wrong though! Anyway, is this original debt you had all cleared? And it's only your business debts left?

Anyway, I think the problem with all your plans is that, although they are great and most people have similar goals, your plans on how you're going to reach your goals is rather vague. So, although you're now planning on "going into 2013 with no debt and a little savings", I don't think you really have a plan on how this will happen.

So...it was Jan 2011 when I was in the same position - just over £10k of debt - when I had my "lightbulb moment" and the thing that has benefited me most is my finance spreadsheet and I swear I wouldn't be in the position I am now (£13k savings, £3.5k 0% debt 12 months down the line) if it wasn't for my spreadsheet. Now, the spreadsheet doesn't limit me in what I am and am not allowed to spend but it lets me see where I'll be based on what income and expenses I get.

So, if I happened to be your Financial Advisor (I swear that's the career path I should've gone for) I would be telling you to do the following:

• Do your SOA and stick it in a post in this thread. Don't assume you'll get overtime or income from any other source apart from your main job and go through your bank statements for direct debit info. Put your loan info in there, individually and with APRs. You WILL get useful advice.
• Draw up a spreadsheet with a budget for the next couple of years (1 sheet per year). You'll pretty much know what all your expenses will be so it seems like just your income you don't seem certain about. On my spreadsheet I have different incomes (one for main employment, 1 for additional employment, 1 for expenses as I claim a lot of travel back through work, 1 for mystery shops - you can put others for gifts etc). 1 month per column and the number at the bottom should always be equal to your bank account balance. I use my credit cards for any non-direct debit spend throughout the month and have a budget for each credit card. I include any transfers I make to savings accounts as an expense and have other tabs for savings, my mortgage balance etc and this all links in to an Asset and Liability sheet. You obviously don't need to be as detailed as this although it does help (and is a little addictive)
• Once you have done that you'll know how much extra you can throw at your loans before going onto your savings.

Realistically if you can earn as much as you say you do, you should be able to clear your debt a lot earlier than you think - it's not until you write down all your figures that you'll realise you should be in a better position than you are (and I'm talking from experience!)
Anyway, that's just my advice. Good luck!