Got myself Comfortable - Now Increasing the Pace

mark55man

Hi there

Just been pondering things - well as a dad of 4 (late teen and above) and as its fathers day and no one else is up - I think I earned the right.

Responded to a post on another thread (yo Mr about the need for DFW/MFW to be a journey with some immediate (often harsh) decisions and some long term changing business as usual. But that BAU is about constantly squeezing and saving and doing stuff better

It made me think that although I have finally moved away from boom and bust economics into a steady state where I am edging ahead - I would like to accelerate the pace and set a target of being MF for my 60th Birthday in 8 years - coincidentally my retirement target

The IT boom and bust (2002), the financial crisis (2007), OH having to give up work to support DS2 through GCSEs (2013) - I have seen it all and come through OK - thank heavens I got my act more together 2008 onwards otherwise I would have been holed below the waterline and sunk by now

Family situation
* Married - 4 kids - at uni / secondary
* Working - good job well paid but demanding
* OH - not F/T working as DS2 needs support - but does private tutoring
* 3 of the kids part time/holiday jobs (Boy that helps - will charge rent when left education but not now)

Financial situation - generally good - 13 year to go mortgage currently 33%LTV - extended from 8 years when OH had to stop working to avoid immediate mess (want to claw this back) - not aggressively overpaying (balancing with other investments) but getting on with it more

Have done preliminary SOA - will post that next and then provide some commentary - (have put flak jacket and tin hat on). I know there are plenty non essentials here, part of that is history, part of that is indulgence, but part is we have worked hard so we didnt have to watch every penny all the time - however I do want to start watching the £10 notes a bit more closely, and help become leaner and save more.

Hope you enjoy this trip (and it is a trip)

mark55man

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 4

Monthly Income Details
Monthly income after tax................ 4400
Partners monthly income after tax....... 400
Benefits................................ 0
Other income (bonus).....................795
Total monthly income.................... 5595

Monthly Expense Details
Mortgage................................ 1307
Secured/HP loan repayments.............. 400
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 65
Gas..................................... 65
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 140
TV Licence.............................. 10
Satellite/Cable TV...................... 38
Internet Services....................... 20
Groceries etc. ......................... 720
Clothing................................ 100
Petrol/diesel........................... 220
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 45
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 10
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 20
Entertainment........................... 220
Holiday................................. 72
Emergency fund.......................... 150
Cash Spends (Kids/Lunch/Coffee)......... 350
OH CC - Household / Crafts.............. 330
MY CC - Not Work related................ 150
Total monthly expenses.................. 4947


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 175000...(1307).....2.99
Hire Purchase (HP) debt ...... 19000....(400)......5.2
Total secured & HP debts...... 194000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Zero %.........................5800......70........0
Total unsecured debts..........5800......70........-


Monthly Budget Summary
Total monthly income.................... 5,595
Expenses (including HP & secured debts). 4,947
Available for debt repayments........... 648
Monthly UNsecured debt repayments....... 70
Amount left after debt repayments....... 578


Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

mark55man

Commentary

* Cars - 2 cheap cars for the kids + 2 new cars (spent last 5 years making 2 old banger last, but both went west, and the both cheap replacements went west, so when local garage did 40% off offer we went for it
* People - 2 adults - 2 over 18 - 2 over 16
* Expenses / Pension / Company Sharescheme / Savings - all not reflected in here as they are all separate pots and am happy with them
* Phones - 5 contracts - am moving cost onto the kids at the next exchange but for now is fixed
* Holidays - 2 holidays in UK per year one paid for by FIL one for family
* TV Internet - Plusnet + EE (one business line) + Sky (Basic) + Now TV for DS2
* Groceries - Has been reasonably constant over years - could squeeze further but this is where it ends up
* Discretionary (cash and social) expenses are high - am doing more to squeeze this and better characterise (this was a slight surprise)
* Child Expenses = School trips and pocket money £10pw stopping when leave secondary)
* Residual Debt from DFW days £6K in 0% account - Snowball target 2018 will need one more 0% switch and then done
* Hoping pick up in the economy will filter through to wage increase soon which will give more headroom for savings

OK - Please tell me how I can squeeze more value from this, I would like to OP at least one month extra a year and ideally 10%

mark55man

Mustn't forget 2 cats (was 3 ) cost in groceries

edinburgher

You have 4 cars?! :eek:

mark55man

Yep - Me, OH, DD1, DS1

DD1/DS1 funded their own - I do help with running costs.

We live not exactly remote, but not exactly convenient for anywhere and certainly not for Public Transport

So the alternative is Mum and Dad the Taxi - which we are glad to be shot off.

Plus independence for the kids is important to us - even if initially subsidised as their forward plans are credible

Luckyinlife

half a million in assets 4 cars aint that bad lol
Sounds like you got everything pinned down really

What is the target to get mortgage free asap ?

getmore4less

Car costs look low for running 4 cars.

are kids paying their own insurance,

4 cars 2 young main drivers insurance for £360 is a bargain.

even if two are new and no/low MOT/service that only lasts 3 years.

mark55man

Target MF by Dec 2023 - so not ASAP but quicker than current progress mortgage free 2028

Not planning to use pension money to pay off Mortgage

mark55man

getmore4less wrote: »

Car costs look low for running 4 cars.

are kids paying their own insurance,

4 cars 2 young main drivers insurance for £360 is a bargain.

even if two are new and no/low MOT/service that only lasts 3 years.

Well spotted - FIL Paid the 1st year insurance which was £950 for DD1 and £1050 for DS1 (rather FIL gave me some money I manage for the kids which I decided this was a fair usage of)

2nd year insurance for DD1 was £333 which she paid although we contirbuted a bit when OH needed to use her car for a month

EDIT - OH and I have new cars so reduced maintenance costs to annual service which we are have Fixed price plan for £16pcm

getmore4less

Analyse the mobile use, there should be cheaper options.

Need to be looked at as a set, and making the phones last longer, most of the contract cost are jut buying new phones.

A target of £100 for 5 would not be unreasonable and more savings by offloading the costs to the kid.