First Steps to Solvency

rugbymadfamily

Too right taking pleasure from telling FIL that you've binned £10k of it. Keep up the great work and think of the pleasure of him not being able to say "it's all on the never never" again without you being able to truthfully tell him to shut up as it isn't!

ThatKiss

alt80 said:

Actually can’t quite believe that it’s under control currently and I’m both managing to pay the debt and not add to it. Appreciate a lot of people reading this will be thinking managing to not put your life on credit is hardly any real achievement- it is to me.

I'm sure many here, myself included, do actually recognise that managing to get out of the habit of putting your life on credit so quickly actually is an achievement, and one you should be celebrating. It's indicative of a true lightbulb moment as so many - and I did this in my first spell on MSE - possibly put up their payments but continue to spend on the cards.

Just beware that there will likely be ups and downs, and you may find yourself dipping into credit again should something unexpected come up. The trick is to acknowledge it as a minor setback, and not let it spiral if and when it does happen.

alt80

Spent some time working out stuff on the portfolio longer term - don't want to have these PGs hanging over me forever. First time I've sat down with the figures on excel and not felt a sense of utter panic over not growing quick enough / not enough for me etc etc... realised I've been avoiding it just like the personal stuff just not to the same extent. Can't believe how much trying to live by a different set of values in my personal life is helping me to see everything more objectively. Should result in being better in business - know a few on here mentioned this but always thought I was 'good' at the business side but terrible with the personal side. Know there's a lot of room for improvement now and not looking at the businesses and trying to screw every penny I can out of them (within reason ha). 100 the result of not being able live on my income, feeling the income was the problem then blaming the business later panicking and hurting myself and the portfolio. 

@rugbymadfamily He's a n*b - knew wife wouldn't be in so rang my landline ha. He wants to make my finances his business (that what he really called for - probably been thinking about when to make his move for weeks lol) suppose that's what happens when you're retired and so boring lockdown makes no difference to your life whatsoever. 

@ThatKiss I've done it many times before - know I need to pay down but still buy things on cards. 'Debt free' ha not really that resulted from the portfolio remo lasted all of five minutes - literally the month after I had a balance on a card. I needed a complete change of attitude to my personal finances.

I'm quite aware re unexpected issues perhaps resulting in further debt. Not going to lie if I wind up using company retained profits to finish off my development block I'll be in a bad position personally until its complete and I can refinance / sell it. 

getmore4less

I think you also need to adjust your time line expectations, 40 is not that old nor the end of the world, loads of time left.

Especially when starting from scratch you have come a very long way in a short time especially when you knock off the coasting years and the early ones where you were finding your feet in business.

The first 20 years are just growing up, I think it takes another 5-10 to settle(late 20's) you then have 20-30 years of  establishing the wealth and then it is time to start reaping the rewards from 50-60 onwards. 

How many of those (20-40) 20  years have been focused on growing the business, you have at least that much time ahead of you as you see yourself working later in life at least to 60

Sometimes those simple goals in life were not that daft.
0-25 grow up
25-50 pay off the mortgage and bring up some kids
50+  go on holidays and prepare for retirement and grandkids.


Good to see you are looking at the BTL finances in a bit more detail,  I was wondering if you have done the calculations for how long it would take to unwind the gearing if  you stopped growth/projects and extracting funds.

PassElephant

Not sure you have to risk anything.
I wouldn't. Right now 
What can you save?
But that's just me. You take the risk. 

alt80

@getmore4less thanks mate. It's difficult sometimes - I know a few people who are doing a lot better than me tbh I've long tried to pretend I'm on their level but they didn't start out with a 100LTV flat and a £5k car lol. One of them is proper old money lives in an inherited 12 bed big f**k off house, wears a Patek, drives a RR lol Vogue spec diesel and 100 he won't have it financed or if it is the money has been offset against something else. Load of investments built over generations not just property. Remember him saying my house was 'nice for what it is', sent me on a massive spiral of inadequacy and wanting a 7 figure place. Winds wife up beyond belief me trying to be on this other guy's level but always taken it to mean she thinks I'm a failure rather than what she really means - he had a start in life that I didn't and I'm setting myself up for feeling like I'm a failure. Doesn't help with the debt tbf.

Lol no way will I retire at 60. Want to be actively working for at least 10 years after that. Will probably be slower pace at 60+ can see that but don't want to sit at home being totally passive about it.

Yes I've done the figures working out with no capital growth accounted for how long it would take to get to the LTV required to remove the PGs - looking at about 4.5 years if I took absolutely nothing which was a bit of an eye opener. Just under 8 years if I took what I do now. Getting those PGs off would take the stress / blurring of business and personal tbh. 

@PassElephant I assume you're referring to the FA on the development. Really not that simple. Shouldn't be an issue and all being well will get the additional finance I need to finish it and sell or exit onto a mortgage. Don't get the additional finance and I can wave goodbye to my income for a few months at least just to get it finished/ ensure everything else is paid. It's not great just another load of stress going on in my life right now. This was also a trigger for realising I need to change my life a bit, lower the debts and have some personal contingency too. It shouldn't be an issue as I say but realising it could be and your whole world would be going on cards if it comes to that focuses the mind.

RelievedSheff

There is no way that I am working until I am 60! and certainly not beyond that.

There is so much more to life than work. This is why you need to find yourself a hobby or pass time that you really enjoy that fits within your budget. Something to enjoy in your retirement.

You can't be a slave to the money all your life.

lostmyusername

I don’t think there’s anything wrong with wanting to keep working. Working gives me drive and purpose that no hobby can give me.

RelievedSheff

lostmyusername said:

I don’t think there’s anything wrong with wanting to keep working. Working gives me drive and purpose that no hobby can give me.

Being on the boat gives me that

warby68

I think there's a difference between working because you want to and working because you have to - aiming for a time when you have the choice is good, even just the choice to scale back.
Really happy to see you on something of an even keel @alt80. Trying to do a few things differently seems to be making them less of a barrier - like being generally more honest.  I bet with the investment deal you turned aside, previously you'd have had to rubbish it to avoid saying you couldn't afford it and end up with nothing out of it other than wasted time. Now you can possibly get an introducer fee and the management income, a low risk win all from how you position yourself. 
Family stuff sounds good too
PS not so good for me, this thread has already made me buy a Lego AM and stash some fragrance in a basket in the last week or so.