First Steps to Solvency

ohdearhowdidthathappen

Amazing achievement paying off so much so quickly   Sounds like you had a lovely day with your son, perhaps you could have a monthly (or more frequent) boys day?  Your wife gets a day to herself too, win win.
I don't think anyone is jealous of your car(s), people will keep commenting on them as they're such a disproportionate percentage of your income.  It's great that you recognise that you're making big sacrifices to afford them and as long as you and your wife are happy with those compromises, then that's obviously fine.  But the flipside is that it'll take you much longer to pay off your debt and then save for the balloon payment.... I wouldn't like that at all personally, but we all have different priorities.  Some people would think we're mad for having 5 kids and living in Surrey - 2 very expensive lifestyle choices!!
I share your appreciation for JL though, one of my favourite retailers.  Hope they survive Covid, I have friends who work in head office and it's not looking promising at all

alt80

@mothsinmywallet_2 both the same interest rate wise - 18.9%. Tbf I'd just BT them. I used to like you but you've really !!!!!! disappointed me being a lefty environmentalist... 😜

@enthusiasticsaver agreed re ftype it's why it went. Didn't want to let it go at all but I needed to in order to move forwards in any way. Thanks re new project - first one for a while tbh and really looking forward to it. Thanks re card. Actually M&S do send me BT deals fairly regularly so could give me a bit of breathing space if I get that cleared and BC2 isn't quite cleared (worked out I may not quite be there, not too far off but possibly not 100% clear by July). 

@getmore4less thanks mate. Big thank you actually a lot of what you've written on here (and @warby68 too) has prompted me to push forwards. I'll be honest I could be coming back here in ten years to thank you for pushing me to actually seek the next level stuff rather than just talking a lot of BS about it and dreaming of the 7 figure house / AM etc which I know isn't what I need to actually be focusing on. As much as I want it, I'm !!!!!! terrified. Never have been before in business but been coasting for about 3 or so years every excuse in the world and 100 my fault. It's the relinquishing a bit of control thing tbf and I suppose feeling I'm not good enough compared to the people I've always looked up to. All mindset stuff (again).

@clairebeth wife said she told me to go with son on my own because she wanted us to spend some time together but knew I'd not agree to her not coming had she made it optional haha. It'd be good for son and me to make a day of it once in a while not even lying I really enjoyed yesterday one of the best this year didn't get a buzz from it as such just a really nice day from start to end, got away from it all and make time for son.

I know nothing depreciates like a brand new Range Rover, no 5.0ltr V8 is bought with the head I don't think haha.

@ryanm8655 thanks mate, it's quite an interesting one actually. Former village hall to bungalow, nice location always a strong demand for sale and rental. As mentioned to @mothsinmywallet_2 they are the same rate so who knows what's the best way haha. Tbh it's all balances coming down, steps in the right direction no matter how it's paid whilst it's 0% to my mind?

I thought some stuff would've gone with Christmas round the corner could just be priced too high. Made use of £1 fees with both watches - they've both gone now and my Submariner stays on my wrist. Wouldn't lose my home over it lol but that's about the only thing I'd sell it for.

Tbh I'm battling the urge to spend most days. Getting through without pulling the trigger right now which I suppose counts? I don't want the constant stress it all brings anymore. I can live with the business risks I take but long term I don't want the stress of being personally liable, it's the JL binges etc that just leave me with a little high the day I buy but then just a lot of stress and guilt after. Can't go through my 40s spending thousands more than I earn every month addicted to spending and giving no time to my family just to go out and buy stuff. You'll probably read this and think 'pull it together mate' lol but yesterday was wonderful to just be out with my son and dog, no stress and I didn't sit about looking for something to spend a couple of £k on, no massive highs, no massive lows just a really nice days I've got a few photos and a lot of memories.

@ohdearhowdidthathappen Thank you. I'm actually really pleased to see it where it is but willing at least £750 of sales to get it below £30k haha. Do feel massively under pressure to match it this month but know that's 100 unrealistic. Wife keeps telling me to let it go and whilst she's working on the selling she doesn't want to keep hearing me saying I need to hit £10k ha.

Would definitely like to make more time for boys days out with son.

Don't understand the 5 kids thing at all but to each their own. Sure Surrey is lovely though. I'd probably like to live that way but my £625k on a good day home would likely be £2-3M that way in a similar area. Don't know the market there tbf - a lot of uni mates headed to London but I made a very conscious decision to stay in my uni city as I knew I could buy a flat and add value straight out of uni, rinse repeat and get to the point of owning a really nice home. Property has always been a big driver for me. Cars, houses all the big ticket items of course lol.

Don't know what I'd do without a JL in town. Would probably move to a bigger city haha. We still have HoF in Notts but no Selfridges/ HN etc.

getmore4less

I was trying not to post about the cars again but they have to come in because of something you said, a couple of people commented I will add a bit below later.

before that one thing I struggle with is  lifestyle but I really can't see where that is with your spending,  it all seems to be about what it costs rather than what value it brings to your life. a lot of it does not even add to your "look at me" obsession about what others think because once bought a lot seems to end up just sitting unused and unseen.

Nice stuff, quality etc. I get big time, but should be buy right buy once. have nice stuff in your home, wear nice clothes, put nice food on the table, eat out at nice places, drive a nice car  all good things when chosen well and some don't have to be silly money.

anyway, back to what caught my eye and was picked up already.

Going to tell me I can’t afford my house either because I’ve got a mortgage on that? I’ve made myself quite clear that the RR is important to me and I am prepared to have less in terms of holidays / other lifestyle stuff to pay for it.

your money your choices, 
As the ftype analysis showed you sometimes don't think these things through and what the lost opportunity costs are for your choices.

it touches on the know the cost of everything the value of nothing,  but in that case I don't think you even knew the cost.

I think this has been said before there is a notion of good debt and bad debt, good debt is an enabler it gets you things you need or have utility or have growth potential and even better when the cost(interest) is less than the notional benefits.

We need cars and we need somewhere to live and you have chosen to finance them at about the same level(from pg1 SOA).
house £1330pm  ~2%
car £1220pm 3.9% 

looking at the house I think we are something around a 23y full term 
If we look at 10y time  probably the max you have the RR.

amount	rate	payment	owing	interest
£295,000.00	2.00%	£1,334.33	£183,162.02	£48,281.61

 
That money will have created over £110k in extra equity and cost about £400pm(average it starts at £490) in interest.


Couple that with the notion that at worst the house will not depreciate long term and looking at the Notts rental market that £400pm gets you into a house share.

GOOD DEBT 

That's why no one brings up the house it costs ~£400pm over 10 years, provides a very nice place to live, seriously good value.  
(from what you said it has some elements of a house share, you get your own room )  

The rest ~£930pm is going into savings(paying of debt)

I won't even try to work out the numbers for the RR they would be too much of a guess.

RelievedSheff

Excellent news on the project. Something to get your teeth into and take your mid of other things.

Good to hear that you had a nice family meal in together as well and family walk afterwards. Things are looking up for you

getmore4less

alt80 said:

@getmore4less thanks mate. Big thank you actually a lot of what you've written on here (and @warby68 too) has prompted me to push forwards. I'll be honest I could be coming back here in ten years to thank you for pushing me to actually seek the next level stuff rather than just talking a lot of BS about it and dreaming of the 7 figure house / AM etc which I know isn't what I need to actually be focusing on. As much as I want it, I'm !!!!!! terrified. Never have been before in business but been coasting for about 3 or so years every excuse in the world and 100 my fault. It's the relinquishing a bit of control thing tbf and I suppose feeling I'm not good enough compared to the people I've always looked up to. All mindset stuff (again).

Thanks, 
Having insiders&outsiders look over stuff is important, works at all levels, peer review can be a very powerful tool in business.
You mentioned having one of your seniors look over your work as if that was something you don't normally do in the business.

It is something you should probably have more of as not only does it help pick up errors it also shares the knowledge and makes the business more robust as essential information is not all in one persons head.

At the weekend you said you had to pick up work as two people were off,  that is something that needs looking at as part of the mitigation planning for holidays and sick, you can't be the one that picks up everything, also people need to be ready to pick up your fee work if you are off or something more lucrative comes along that needs your attention.

When it comes to growing you can't do everything and deciding where you need the help can be hard, you probably have an accountant, you have said you have fee earners because you can't do all,  there will be other things that use up your time that can be done more efficiently by other more qualified/experienced people or lower value stuff  that you are better off employing cheap people

Like your next property flip,  changes will take time the money shot comes later 

I did think maybe not the next level but the level after when you have really made it you won't be driving cars you will have a driver.

ryanm8655

alt80 said:

@mothsinmywallet_2 both the same interest rate wise - 18.9%. Tbf I'd just BT them. I used to like you but you've really !!!!!! disappointed me being a lefty environmentalist... 😜

@enthusiasticsaver agreed re ftype it's why it went. Didn't want to let it go at all but I needed to in order to move forwards in any way. Thanks re new project - first one for a while tbh and really looking forward to it. Thanks re card. Actually M&S do send me BT deals fairly regularly so could give me a bit of breathing space if I get that cleared and BC2 isn't quite cleared (worked out I may not quite be there, not too far off but possibly not 100% clear by July). 

@getmore4less thanks mate. Big thank you actually a lot of what you've written on here (and @warby68 too) has prompted me to push forwards. I'll be honest I could be coming back here in ten years to thank you for pushing me to actually seek the next level stuff rather than just talking a lot of BS about it and dreaming of the 7 figure house / AM etc which I know isn't what I need to actually be focusing on. As much as I want it, I'm !!!!!! terrified. Never have been before in business but been coasting for about 3 or so years every excuse in the world and 100 my fault. It's the relinquishing a bit of control thing tbf and I suppose feeling I'm not good enough compared to the people I've always looked up to. All mindset stuff (again).

@clairebeth wife said she told me to go with son on my own because she wanted us to spend some time together but knew I'd not agree to her not coming had she made it optional haha. It'd be good for son and me to make a day of it once in a while not even lying I really enjoyed yesterday one of the best this year didn't get a buzz from it as such just a really nice day from start to end, got away from it all and make time for son.

I know nothing depreciates like a brand new Range Rover, no 5.0ltr V8 is bought with the head I don't think haha.

@ryanm8655 thanks mate, it's quite an interesting one actually. Former village hall to bungalow, nice location always a strong demand for sale and rental. As mentioned to @mothsinmywallet_2 they are the same rate so who knows what's the best way haha. Tbh it's all balances coming down, steps in the right direction no matter how it's paid whilst it's 0% to my mind?

I thought some stuff would've gone with Christmas round the corner could just be priced too high. Made use of £1 fees with both watches - they've both gone now and my Submariner stays on my wrist. Wouldn't lose my home over it lol but that's about the only thing I'd sell it for.

Tbh I'm battling the urge to spend most days. Getting through without pulling the trigger right now which I suppose counts? I don't want the constant stress it all brings anymore. I can live with the business risks I take but long term I don't want the stress of being personally liable, it's the JL binges etc that just leave me with a little high the day I buy but then just a lot of stress and guilt after. Can't go through my 40s spending thousands more than I earn every month addicted to spending and giving no time to my family just to go out and buy stuff. You'll probably read this and think 'pull it together mate' lol but yesterday was wonderful to just be out with my son and dog, no stress and I didn't sit about looking for something to spend a couple of £k on, no massive highs, no massive lows just a really nice days I've got a few photos and a lot of memories.

@ohdearhowdidthathappen Thank you. I'm actually really pleased to see it where it is but willing at least £750 of sales to get it below £30k haha. Do feel massively under pressure to match it this month but know that's 100 unrealistic. Wife keeps telling me to let it go and whilst she's working on the selling she doesn't want to keep hearing me saying I need to hit £10k ha.

Would definitely like to make more time for boys days out with son.

Don't understand the 5 kids thing at all but to each their own. Sure Surrey is lovely though. I'd probably like to live that way but my £625k on a good day home would likely be £2-3M that way in a similar area. Don't know the market there tbf - a lot of uni mates headed to London but I made a very conscious decision to stay in my uni city as I knew I could buy a flat and add value straight out of uni, rinse repeat and get to the point of owning a really nice home. Property has always been a big driver for me. Cars, houses all the big ticket items of course lol.

Don't know what I'd do without a JL in town. Would probably move to a bigger city haha. We still have HoF in Notts but no Selfridges/ HN etc.

If interest rates are the same and M&S send you offers then I’d clear that.

If it’s on 0% then if clearing before the offer ends it doesn’t make a difference what you pay first. If you have offers finishing at the same time, can’t afford to clear both and can’t get more offers then makes sense to clear the highest interest. Though I get the motivation argument.

Maybe do another sales audit. Reduce some of the items you still have for sale a bit and move onto the next tier of lower value items. Should still make a decent impact by taking advantage of eBay selling offers.

Would love a submariner, good investment too. Even the new ones are worth more immediately due to the waiting lists. Love the datejust II but a bit out of sensible me price range ha. Though did make a few savvy watch purchases in my earlier years where I was able to turn a bit of profit. Just took so long to sell though and I didn’t have the capital to have many at a time. Plus one bad buy would wipe out all of the profit and more.

Also a big John Lewis fan.

Andyjflet

alt80 said:

Looks like I’ve gone and got myself a little flip project. 😁 Absolutely buzzing to be back in that game tbh. Other business still busy too and should have another employee all being well will take the pressure off a bit and also increase revenue. Good day on the work front. 

Selling front is looking a bit bleak right now no enquiries on some stuff that’s been up for a few weeks. Wife is thinking about dropping a couple of items, think she’s right. She’s also had a look through some other stuff too - I’d love to get to £25k owing with stuff sold possibly a bit of a stretch but would make this a lot more manageable. @andyjflet you mentioned binning off the M&S next - both 0% on this and the BC run out together at the same time, I was going to concentrate on the BC as that has the larger balance, what advantage to going for the smaller balance first? Surely if the 0% did run out and couldn’t BT for whatever reason going to be better with the smaller debt outstanding? That was my thinking anyway - open to other suggestions. 

Dinner in tonight paprika chicken, sweet potato, corn on cob, petit pois and tomato / red pepper sauce. Looking forward to that now tbh. Going for a walk with wife, son and dog after and start putting up some Halloween stuff. Pumpkin carving wasn’t amazing tbh wife should have done them as she’s quite good at that kind of stuff.

Counselling session went quite well still suffering with my mindset but trying to stay as positive as possible not letting my temper get the better of me - getting on the chill app and putting the effort in with the family. 

The snowball method is smallest to largest, in this instance its the smallest balance and would represent another good and probably quick win for you. Also close the M&S down when its done. The theory is that you this gives motivation, quick wins and stops you losing focus, you do seem to have a short attention span. You then roll the money you were paying from BC and M&S into the next debt and so on. 

warby68

I am delighted you have a new business project
I am convinced that properly getting back into your business is key for you.
Revive your mentors next?
Cars and highs/lows?
You had a whole day with your son, not a high but a gentle sustained feel good which is still there today and memories which are there forever. Actually let yourself compare that to a £500 JL splurge on stuff you have enough of already - a bigger buzz but much shorter and not many memories or cumulative joy. Your son is so much better 'value' lol. 
Cars - honestly, your blinkers are still on quite a bit about how others think but yes if you want to spend loads on cars that IS up to you as long as you're solvent and as long as its a reasonably joint plan with your wife ( yes you're the earner but you're also working on a marriage and being a team, well I hope so anyway even if its a struggle at the moment). People comment because you couldn't afford the cars at all with SoA1 and because its still a high proportion of income now. It really is about the £££ not about any particular car. The plan to have only one on finance, and one a collector, fun car that will hold value sounds solid to me. 
Roller coaster few days for you - hopefully you'll be on a gentler ride for more of this month.
PS Another John Lewis fan BTW - hope they survive, doing my small bit online.

RelievedSheff

Andyjflet said:

alt80 said:

Looks like I’ve gone and got myself a little flip project. 😁 Absolutely buzzing to be back in that game tbh. Other business still busy too and should have another employee all being well will take the pressure off a bit and also increase revenue. Good day on the work front. 

Selling front is looking a bit bleak right now no enquiries on some stuff that’s been up for a few weeks. Wife is thinking about dropping a couple of items, think she’s right. She’s also had a look through some other stuff too - I’d love to get to £25k owing with stuff sold possibly a bit of a stretch but would make this a lot more manageable. @andyjflet you mentioned binning off the M&S next - both 0% on this and the BC run out together at the same time, I was going to concentrate on the BC as that has the larger balance, what advantage to going for the smaller balance first? Surely if the 0% did run out and couldn’t BT for whatever reason going to be better with the smaller debt outstanding? That was my thinking anyway - open to other suggestions. 

Dinner in tonight paprika chicken, sweet potato, corn on cob, petit pois and tomato / red pepper sauce. Looking forward to that now tbh. Going for a walk with wife, son and dog after and start putting up some Halloween stuff. Pumpkin carving wasn’t amazing tbh wife should have done them as she’s quite good at that kind of stuff.

Counselling session went quite well still suffering with my mindset but trying to stay as positive as possible not letting my temper get the better of me - getting on the chill app and putting the effort in with the family. 

The snowball method is smallest to largest, in this instance its the smallest balance and would represent another good and probably quick win for you. Also close the M&S down when its done. The theory is that you this gives motivation, quick wins and stops you losing focus, you do seem to have a short attention span. You then roll the money you were paying from BC and M&S into the next debt and so on. 

This method does seem to work for us. 

alt80

@getmore4less I’ve definitely bought a lot of stuff without thinking about it ftype definitely one. Tbh your post has made me think about the good/ bad debt stuff - got a lot of the former but a lot of the latter too. Me saying I think I’ve got a spending addiction isn’t making excuses - it’s almost definitely fell into that category and the craving I get for it is ridiculous but doesn’t need to define the rest of my life people have got over bigger problems than wanting to spend too much. Tbh I think I’ve fell into a pattern of thinking I’m in a lot of debt anyway (property mainly) so what’s another £50k or whatever. The £50k just happens to be on stupid stuff that frankly is getting me nowhere in life.

Actually have a very robust peer review process in place - I was just getting stupid stuff I should be able to do with my eyes closed checked because I was in a really bad state of mind. Lots of things I don’t do myself in the business and rightly so just can’t get to the next level and its definitely mindset mainly also time running out.

Ha you’ve got more confidence in me than I have if you think I’ll ever be at the being driven level lol. 

@RelievedSheff thanks, I hope so.

@ryanm8655 I’m hoping I can clear both tbh - should if I don’t spend and can throw a little bit more than the mins at it or sell some more stuff. Wife on that today between Halloween lol.

Not going to lie I’d definitely buy more watches if I could. Maybe have about 5 and they aren’t necessarily stupid purchases as you’ve pointed out.

@Andyjflet thank think I’ll do that will be another one ‘off the books’ so to speak and much quicker with the sales I think I could probably get it gone by end of January.

@warby68 yeah I think you’re right stop focusing on lifestyle. It’s never enough / not good enough and I use it to ‘compensate’ for being a n*b. I know I’m a horrible person and not going to get to the ‘made it’ level - not good enough to and don’t make the sacrifice so I buy stuff on credit and live beyond my means which are also not good enough in my mind. Catch 22.