First Steps to Solvency

ryanm8655

Best of luck, subscribed.

Think we have a bit in common mentality wise, as I’m sure a lot of people on here do. Fortunately I’ve realised I’ll never have enough money and material possessions wise, though it’s still a battle.

Andyjflet

alt80 said:

@Andyjflet my wife loves bags as much as I love cars lol. I’d be quite happy if she gets into commission sales but up to her.

@enthusiasticsaver will be all 0% by the end of this week. 

I was thinking the same re emergency fund. It’ll allow me to pay the insurance on the Range Rover up front when it’s due for renewal in November rather than being monthly or on a credit card. I can then use the amount split over 12 to pay myself back. 

In true MSE style, the emergency fund is just that.... £1000 for complete emergencies. Things like RFL etc you know they are coming therefore not emergencies. For anything like this start a sinking fund, so separate pots in Monzo for example. then transfer that amount each month to those pots. For example, I have a stag do in June and its just called Steve's Stag, £40 a month goes in there, this eliminates using credit cards. None of these things are surprises. 

enthusiasticsaver

alt80 said:

I was thinking the same re emergency fund. It’ll allow me to pay the insurance on the Range Rover up front when it’s due for renewal in November rather than being monthly or on a credit card. I can then use the amount split over 12 to pay myself back. 

Actually that is a really good idea. Saves you money and reduces monthly commitments although it maybe a good idea to start a car savings pot so you can pay upfront from now on for insurance, tax, service etc so set aside some every month. 

One-step-at-a-time

Good start! I'm really pleased that you weathered the initial post storm and decided to stay here

monetxchange

I agree - I do monthly savings for things like car insurance in a Monzo pot. You barely notice it going out and it doesn't hurt when you pay it!

You've said previously you wanted your wife to be working too, albeit in a similar high flying career. I think the doing nails and selling bags etc thing is a nice compromise - brings money in, gives her a sense of achievement, obviously brings her joy too. I think it'll be really helpful for your relationship to start to accept that couples often have different interests and ambitions but you can still make it work as a team.

alt80

Was doing alright today until I drove by a new black Bentley GTC. Now my head is just full of negative thoughts about not being good enough to buy something like that new. 

@ryanm8655 the mindset is the main reason I’m sticking around tbh. From seeing your diary you like nights out and all spending goes out the window when you’re out. I used to be like that until I was about 30. Don’t even want to think how much I’ve spent over the years on nights out. Thing is I’ve got some great memories of good times too so don’t exactly regret all of it. 

@Andyjflet I understand the function of the emergency fund and that my other expenses should be planned but not sure how to get into the mindset of putting £x away for imminent bills. Am I better saying I’ve got the bill end of November so sept, Oct and November to pay for it then do the twelve month thing? Car tax falls due at the same time and I don’t want to launch into a rant but it really annoys me that it’s extra expensive and the government seem to think if can afford a car with a list price over £40k you can afford extra tax for five years. Sure you see this all the time. 

@enthusiasticsaver yes definitely need a car pot and for other things too. 

@monetxchange Think I need to accept not going to get it all in a partner lol. 

Andyjflet

Yes I think with the bills then start now, work out what things you need sinking finds for, Car Tax / Insurance and start now, even £100 helps towards that situation, then start 12 months before ideally, all these little pots then contribute to the fund.
People on here have them for everything including School Uniforms / Christmas / Dentist etc, none of these things are surprises usually. 

alt80

Thanks and agree these things shouldn't be 'surprises' - at least some of my problem is not planning. 

What do they do just have a load of separate instant saver accounts attached to their personal banking app and rename them?

Andyjflet

alt80 said:

Thanks and agree these things shouldn't be 'surprises' - at least some of my problem is not planning. 

What do they do just have a load of separate instant saver accounts attached to their personal banking app and rename them?

Yes there is no reason why you cant do that, maybe keep all the car stuff in one. 
 I use Monzo, number 1 for customer service now, once I have worked out my monthly outgoings ( I work commission mostly so could be £2k or £10k) I move any surplus into my Monzo account which is for spending, eating out etc, then within that you can create pots, so, as previously, Stag do / Christmas / Daughters Uni etc
I have a fully expensed Audi so dont have any car payments or insurance etc. 

MidsHollie

As an example, I have the following accounts: 
High Street bank: current account & savings account for my £1000 EF
Monzo: for my monthly spends eg groceries, fuel, eating out
Alternative high street bank for my annual spends eg insurances, car maintainence, tech spends, holiday, clothing etc

I then use an excel spreadsheet  to keep track of the allocated amount in each month, when the spend is due, and what I have actually spent. It’s easy enough to see them that I have spent £0 on holiday this year, so this amount has built up. I might transfer this to debt pay off soon, as I likely won’t have a holiday until next year and can plan that and save when I know more. 

I know others have an account for every pot, but I CBA with that!