This Time I'm Really Going To Do It

Watty1

So much for the positive start and plans for 2016.
Business stress has resulted in 2 nights of very little sleep and the facing the possibility that the company may not survive. Overnight came up with a potential plan, so, just off to make a cup of tea and read contract with supplier.

smallholdingsister

Oh dear, Watty. Lovely kettle.

hiddenshadow

Fingers crossed that the plan works out, Watty!

Watty1

Reviewing contract was scary. I am very definitely in breech of contract. Supplier seriously peed off. I tried to put breech right about 18 months ago but clearly didn't satisfactorily as it has occurred a number of times since then. Now have major problem. And I have to own up that part of it is mine. Should have read contract more carefully when problems first occurred rather than hoping they would go away.
Have tried to put right over last 24 hours.
Will honour contract terms moving forwards.


But


This has made me think. If I lose my supplier then I can re-think business but potentially it will seriously impact earnings.


So a plan needed


Time to look at our old house. Currently this is rented out and on a repayment mortgage with the intention that it will be repaid by the rent and eventually we will own outright at which point it will become part of pension income. If I rethink this, and repay quicker then the rent would be income and would be a better income than having the outstanding amount invested at say 4% as rent would equal a 10% return on that sum or thereabouts.


Current mortgage is 2.65% fixed until 31 Jan 2017.
Cannot make overpayments at all.
So savings goal is £86,000.


Somehow have to keep business going, but relief that I can see an income could be achieved from the other property. And if the worst happens then there will be options for here too (renting a stable and field and Air BnB being two that spring to mind). Not keen to do those whilst running business - but - reassuring to have in background.

Watty1

So MF relaxation over with
£86,000 required, am setting a target of £50,000.
£26,000 is already held in a S&S Isa that goes up and comes down but usually seems to end up at £26,000.
In a push I could find £10,000 from company.
Leaves a nice round figure of £50,000 to save. This will be our emergency fund although its purpose is to clear the BTL mortgage and provide an income.


So there we have the end of my MF relaxation and a clear target to work towards.
We have no pots to raid, no shares and no hidden amounts so no short cuts this time around. I have debated stopping my pension payments for 12 months but decided against this for now although it remains an option that will be reviewed from time to time. (If my company does not survive then they will have to stop any way hence my willingness to consider this as an option)

hiddenshadow

Go, Watty! £50k is a big chunk but I have faith you can do it. Always nice to have a good challenge, too.

Ali-OK

You've a plan, a goal and a back up plan - you'll do it!

Goldiegirl

I think it's good to have a plan to go forward with, and you have options as well. Good to keep your pension payments going as well

CathT

Well thought out plan Watty.

apple_muncher

You are amazing - I would still be running around like a headless chicken + blue-bottomed fly combo, panicking. And here you are, having thought it through and come up with a working solution - with built-in variables! Good luck x