No regrets. We only have debt.

MrGorsky

That’s what I’ve done, the mortgage is now as if we’d never had a mortgage holiday. £1500 to parents is next, thing is I wanted to tell them in person I was starting to pay them back .... can’t do that at the moment due to local lock down

MrGorsky

I've started to get in the habit of saving, investing, paying mortgage down, aswell as paying the debts down. I think it's a good habit to transition to these as my debt decreases. 
I've invested £500k in Vanguard S&S ISA blended fund, and paid £1k off my mortgage, so not much off the debt this month. I tried to pay my father £1500, but he wouldnt take it yet, he said after Xmas I can start paying it back a bit, in order to put a bit of money aside for emergencies, so I've done that. £1k emergency fund.

Debt:

Natwest Credit Card £9090 0% til 10/21

Family loan £30k
Total: £39,090

Excited to say I now have some savings, and an ISA.

Takmon

MrGorsky said:

I've started to get in the habit of saving, investing, paying mortgage down, aswell as paying the debts down. I think it's a good habit to transition to these as my debt decreases. 
I've invested £500k in Vanguard S&S ISA blended fund, and paid £1k off my mortgage, so not much off the debt this month. I tried to pay my father £1500, but he wouldnt take it yet, he said after Xmas I can start paying it back a bit, in order to put a bit of money aside for emergencies, so I've done that. £1k emergency fund.

Debt:

Natwest Credit Card £9090 0% til 10/21

Family loan £30k
Total: £39,090

Excited to say I now have some savings, and an ISA.

I assume, based on the rest of your post, that's a typo that you have invested half a million pounds ?

MrGorsky

Takmon said:

MrGorsky said:

I've started to get in the habit of saving, investing, paying mortgage down, aswell as paying the debts down. I think it's a good habit to transition to these as my debt decreases. 
I've invested £500k in Vanguard S&S ISA blended fund, and paid £1k off my mortgage, so not much off the debt this month. I tried to pay my father £1500, but he wouldnt take it yet, he said after Xmas I can start paying it back a bit, in order to put a bit of money aside for emergencies, so I've done that. £1k emergency fund.

Debt:

Natwest Credit Card £9090 0% til 10/21

Family loan £30k
Total: £39,090

Excited to say I now have some savings, and an ISA.

I assume, based on the rest of your post, that's a typo that you have invested half a million pounds ?

Correct. Lol. £500 😂 

MrGorsky

Investments:
Vanguard ISA: £15k
Nutmeg LISA: £10k

Debt:

Barclays Credit Card £4500 0% til 10/22

Family loan £30k - retired parents still wont take anything.
Total: £34.5k

enthusiasticsaver

Your investments are looking good.  When do your parents want you to repay them or is it now a gift rather than a loan? I assume you plan on repaying the credit card before next October? 

MrGorsky

enthusiasticsaver said:

Your investments are looking good.  When do your parents want you to repay them or is it now a gift rather than a loan? I assume you plan on repaying the credit card before next October? 

I'm paying off the 0% CC @ £150 / mnth. I'll look to move it on 0% if 0% fee, or just pay it off from my S&S investments if needed.

Parents, I'd like to grow the investments beyond £30k,  where I can say to my dad, I have your £30k, if you want it, or some of it, just ask. I don't want it to be a gift, I want them to splurge in their retirement. But a tthe moment, they have plenty holidays booked, and drive an Audi etc., they say they dont need it, but if I ever hear them not getting something in retirement due to cost, Ill throw it at them.

I've a separate pension which is now £190k (I'm 41yrs old), and there's £2500 / month going into that.

MrGorsky

Debt free yesterday.
Feels like a new dawn, thanks for anyone that read through my journey to date ................ tempted to look at a holiday let going fwd, but for now, updated SOA:

S.O.A.

Adults: 2

Children: 2 (aged 10 and 12)

Cars: 2

   

Income

£GBP£

Monthly Salary after tax.................... 2742 (My pension is defined contribution, currently I put in 63%, employer 5%. - so my net pay after this contribution is the £2.7k shown here)

 Wife's Salary............................... 1787  

Net Income from rental property ..............315

Ebay ........................................0 (task to achieve this)

Total Income................................ 4844

Expenditure

Home

Groceries..................................430 

Fibre Internet.............................22 (includes wifes mobile, a good deal)

Home insurance............................ 13

Council Tax............................... 210 (10 months)

Gas & Electric............................ 250 (includes some catchup on -ve balance)

Water......................................60

Mortgage...................................892 

Mobile telephones..........................10 (childs unlimited)

Life Insurance.............................33 (top up only)

Hair cuts..................................50 

TV Licence.................................13 

Clothing ..................................75

Dentist.....................................7

Vets .......................................20

Entertainment:

Going out.................................. 100 (likely this will be nearer zero in current climate)

Hobbies.....................................160 

Caravan expenses............................20 (insurance and club fees)

Holiday.................................... 100 (will fund caravan hols, and half term and xmas breaks) 

National Trust Membership ..................0

Transport:

Fuel........................................150

Public transport............................0 

Car Insurance...............................25

Car Tax......................................2 (£20 per year)

MOT & maintenance...........................70 (probably excessive, MOT + oil change + pads should only be £200 per year)

Other:

Union.........................................2

Takeaways......................................40

Lottery........................................5

Presents.......................................70

School Lunches ...............................40

Monthly Expenses..........................2869

Monthly Income.............................4844

Monthly Expenses...........................2869

Net Income before debt payments............1975 

Debt repayment:

Virgin Credit Card 0% .....................80

Family loan ................................0

Surplus ....................................2105

Surplus to be saved / invested.

Assets & Liabilities:

Debt: £GBP£ Balance

Mortgage Balance......................198k 25 years left

Value of house is £400k, mortgage rate 1.84% ... 5yr  fixed mortgage deal til Oct 24.

BTL mortgaged ............. £63k mortgage on 2yr fix (2024), value of property £95k

Family loan £30k ...  (I've got the cash to pay off if needed now - in an ISA, but parents wont take it).

Total Debt...................... £391k

Total debt excl Mortgages ....£30k 

Current Account balances:

Daily current Account.........................£2019

Emergency Fund ...............................£0

Value of house: £400k (was bought in 2018 for £252k and renovated)

Value of BTL £90k

Value of owned car 1: £7k,

Value of Car 2: £6k 

Value of Caravan owned £10k

Pensions:

Wife has final excellent final salary scheme (civil servant).

My pension is contribution, currently I put in 63%, employer 5%.

Current employee pension value:£40k, adding £3.7k / month

SIPP: £148k

LISA: £15k

ISA: £26k

RSU (shares): £15k

Shares: £2.3k

Assets: £571k exl pension, £759k incl pension

Thanks for reading through, feedback would be welcome. Thanks.

MrGorsky

Statement of Affairs (S.O.A.) - Monthly view.

Adults: 2

Children: 2 

Cars: 2

   

Income

£GBP£

Monthly Salary after tax and deductions..... 2393

Wife's Salary after tax...................... 1812  

Net Income from rental property ..............315

Child Benefit ................................ 145

Bank bonusus (cashback etc.) ..............  60

Interest from savings .................. ...... 40

Total Income................................ 4765

Expenditure

Home

Groceries..................................570

Fibre Internet.............................24 (includes wifes mobile sim deal)

Home insurance............................ 13

Council Tax............................... 165 (12 months)

Gas & Electric............................ 250 

Water......................................47

Mortgage...................................892 

Mobile telephones..........................10 (2 teenagers sim deals -  unlimited on Smarty mobile)

Life Insurance.............................33

Hair cuts..................................50 

TV Licence.................................13 

Clothing ..................................90

Dentist.....................................7

Vets .......................................35

Entertainment:

Going out.................................. 150

Hobbies for all of us ......................160 

Caravan expenses............................10

Holiday.................................... 160 (will fund caravan hols, and half term and xmas breaks) 

Transport:

Fuel........................................160 

Public transport............................50 (wifes work)

Car Insurance...............................38

Car Tax......................................2 (£20 per year for one car, £0 for the other)

MOT & maintenance...........................30 (probably excessive, MOT + oil change + pads should only be £200 per year)

Other:

Union.........................................2

Takeaways......................................40

Lottery........................................5

Presents.......................................60

School Lunches ...............................40

Monthly Expenses..........................3216

Monthly Income.............................4765

Monthly Expenses...........................3216

Net Income before debt payments............1549

Debt repayment (stoozing credit cards):

Credit Card 1 0% until Jun 2025.............130 ... 

Credit Card 2 0% until Spe 2024..............80 .... 

Credit Card 3 (Amex points cleared each month).. 0  .... 

Surplus ....................................1339

Monthly Direct Savers:

Savings Account 4: £300 @ 7.1% First Direct

Savings Account 5: £300 @ 7.1% First Direct

Savings Account 6: £150 @ 6.2% Natwest

Savings Account 7: £150 @ 6.2% Natwest

Surplus of £439 goes into Stocks and Shares ISA, or gets spent on whatever.

Assets & Liabilities:

Debt: £GBP£ Balance

Mortgage Balance......................192k 23 years left

Value of house is £410k, mortgage of £192k rate 1.84% ...  fixed until Oct 24.

BTL mortgaged ............. £63k mortgage on 2yr fix (Sep 2024), value of property £95k

Credit Card 1 £7950

Credit Card 2 £1857

Total Debt...................... £265k

Total debt excl Mortgages ....£9807k 

Savings account 1: £5k @ 5.12% barclays

Savings account 2: £700 @ 5.12% barclays

Savings account 3: £400 @ 5.2% Lloyds

Savings Account 4: £600 @ 7.1% First Direct (max input £300 monthly)

Savings Account 5: £300 @ 7.1% First Direct (max input £300 monthly)

Savings Account 6: £150 @ 6.2% Natwest (max input £150 monthly)

Savings Account 7: £150 @ 6.2% Natwest (max input £150 monthly)

Stocks and Shares ISA: £30k (Vanguard Life 100 & S&P500) - This is my retire before age 58 fund, hopefully there's £80k here when I'm 54.

RSU (shares): £17k (Tech shares)

Retail investing Shares: £3.1k (Freetrade app)#

LISA (Lifetime ISA): £15k 

SIPP (Self Invested Pension): £152k 

Value of house: £410k

Value of BTL £90k

Value of owned car 1: £9k,

Value of Car 2: £7k 

Value of Caravan owned £10k

Pensions:

Wife has excellent final salary scheme.

My pension is direct contribution, currently I put in 57%, employer 5%.

Current employee pension value:£95k, adding £3.7k/month

Assets: £598k exl pension, £845 incl pension

Aim is for £1m pension pot minimum, and reasonable ISAs.... who knows eh.

MrGorsky

update - Statement of Affairs (S.O.A.) - Monthly view.

Adults: 2

Children: 2 

Cars: 2

   

Income

£GBP£

Monthly Salary after tax and deductions..... 1920

Wife's Salary after tax...................... 1910  

Net Income from rental property ..............120

Child Benefit ................................ 178

Bank bonus (cashback etc.) ..............  30

Interest from savings .................. ...... 40

Total Income................................ 4198

Expenditure

Home

Groceries..................................625 (up 9%)

Fibre Internet.............................29 (up 21%)

Home insurance............................ 13

Council Tax............................... 183 (up 11%)

Gas & Electric............................ 250 

Water......................................62 (up 31%)

Mortgage...................................1128 (up 26%)

Mobile telephones..........................18

Life Insurance.............................33 - probably going to bin this

Hair cuts..................................50 

TV Licence.................................13 

Clothing ..................................90

Dentist.....................................7

Vets .......................................30

Entertainment:

Going out .................................. 180 (up 20%)

Hobbies for all of us ......................68

Caravan expenses............................10

Holiday.................................... 160 

Transport:

Fuel........................................60 

Public transport............................15

Car Insurance...............................50 (up 31%)

Car Tax......................................2 (£20 per year for one car, £0 for the other)

MOT & maintenance...........................30 (probably excessive, MOT + oil change + pads should only be £200 per year)

Other:

Union.........................................2

Takeaways......................................80 up 100%

Lottery........................................9

Presents.......................................75 (up 25%)

School Lunches ...............................40

Monthly Expenses..........................3402 (up ~9%)

Monthly Income.............................4198

Monthly Expenses...........................3402

Net Income before debt payments............796 (51% of previous)

Debt repayment (stoozing credit cards):

Credit Card 1 0% until Jun 2025.............15 ... 

Credit Card 2 0% until Spe 2024..............15 .... 

Credit Card 3 (Amex points cleared each month).. 0  .... 

Surplus ....................................766

Monthly Direct Savers:

Savings Account 5: £300 @ 7.1% First Direct

Savings Account 6: £150 @ 6% NWide

Savings Account 7: £150 @ 6% NWide

Surplus of £166 goes into Stocks and Shares ISA, or gets spent on whatever.

Assets & Liabilities:

Debt: £GBP£ Balance

Mortgage Balance......................183k 22 years left

Value of house is £410k, mortgage of £183k rate 4.05% ...  fixed until Oct 29.

BTL mortgaged ............. £63k mortgage on 2yr fix (Sep 2026), value of property £100k

Credit Card 1 £1346

Credit Card 2 £1857

Total Debt...................... £249k

Total debt excl Mortgages ....£3203

Cash Savings ~ £11k

Stocks and Shares ISA: £120k Freetrade ISA - up 300%

LISA (Lifetime ISA): £27k up 80%

SIPP (Self Invested Pension): £394k  up 160%

Value of house: £410k

Value of BTL £100k

Value of owned car 1: £4k,

Value of Car 2: £6k 

Value of Caravan owned £18k

Pensions:

Wife has excellent final salary scheme.

My pension is direct contribution, currently I put in 76%, employer 6%.

Current employee pension value:£39k, adding £6k/month

Assets: £696k exl pension, £1129k incl pension

Assets - Liabilities = £880k

Aim is for £1m pension pot minimum, and reasonable ISAs....