First Steps to Solvency

alt80

Had a productive work day today for the first time in a week or so. Didn’t manage to call it a day until 7.15pm but happy with that. I usually dip in and out of work throughout the evening so it’s a step towards reducing the stress a bit.

Had a 30 minute dog walk with son before bed. Just me and him. He’s been saying I never have time recently so I’m trying to make the effort to do something together everyday. Read to him for the first time in years too. Don’t want to be an absent father. If I’m going to put the effort into sorting my personal finances out I think I need to put some effort into sorting my personal life out - all related.

Swapped my landline / internet no massive saving (£12/m) but better in my pocket than the providers.

Having a look at the spreadsheet in a minute. 

Wife not sold anymore bags today but early days on the selling front. She has told her two mates she does the nails for that she’s charging and another one wants her’s doing - didn’t want to ask when wife was doing them for free as she wanted to pay something for them which I understand. 

Good start apart from spending some of the afternoon wishing I could buy that Bentley.

alt80

A few of the younger guys who work for me have monzo. What’s the advantage of it over a high street account? 

@MidsHollie why have three accounts with different providers? 

I’ve had the same account since I was at uni it’s just had my wife added and been upgraded periodically by the bank. I’ve got separate accounts (same bank) for my companies but personally my wife and I just have the one same account between us.

MidsHollie

Strange reasons really, but it works for me. 

My current account I have now had over 15 years. I can recall the details of it from memory which is useful, so I don’t want to get rid. 

Monzo: when I originally started using this account, it had the options of different pots (which I named 3 of the groceries, fuel and eating out) and also pinged on my phone every time I spent. Now more and more banks do the same, so not so much a USP now, but I’m used to it, and I find it useful to divert my spending money away from my main account. 

And the separate account with separate bank is a hangover from when I had some kind of regular savings account or HtB ISA with the best rate at the time. I find it helpful to have the money for annual spends separately, over here, because it’s an account I don’t need to look at, other than when I make one of these annual spends. It being somewhat hidden, doesn’t make me feel like I’ve got money that o could do something else with: I think if it sat with my current account and EF, I’d use it to pay off some debt, and then leave myself at risk of using a credit card to pay for my car insurance etc. 

Do you know what zero based budgeting is? Because of that, it doesn’t matter that my current account may only have a few pounds in for most of the month. Because my money is elsewhere, doing what it’s been allocated to do. 

mark55man

Glad to see your diary has taken off with a good feel to it. 

But (ha!) I think the question we all want to ask is how much did you need to buy a £90K car, when that didn't even scratch the itch.  So I think what I am asking is why wouldn't the £60K Range rover have done - or even a £40K car - or even a £20K higher spec commodity.  To me it feels like part of the needs versus wants debates that all diaries end up facing (eventually).  Will the you in 10 years really thank yourself when you have put these car spends over other family needs?

  

alt80

Thanks, I'm similar with the current account re remembering the details lol. I do have instant savers attached to the account for tax - don't consider it my money so I get the idea of having the 'hidden' account. Tbh we always used to spend all our day to day items on credit cards have done for years - I used to kid myself (and the wife) it was for the cash back/ other 'reward'. 😉 The idea was to pay off at the end of the month, keep the spending away from the main account and had I done that it'd be fine but clearly I didn't or I wouldn't be here. They just ended up supplementing my lifestyle. I've now got rid of all but one from my phone and wallet (still in the house but I don't take the house with me when I spend money). 

Never had any regular savings - think being younger than me (assuming you must be with the HTB isa) you have to learn a saving mindset just to get on the property ladder. I bought my first house in the good old days of 100% borrowing. Wanted to build equity though to get bigger houses so I bought places that needed work. Financed the refurbs of course. Scraped together the money for the first BTL from my ltd co lending the money so didn't even manage to personally save then. I can't actually think of a single thing I've saved for or a point in my life when I've had even £1k not accounted for in some way. 

I understand what you're doing with the zero based budgeting. That's the principle I'm trying to incorporate into my spreadsheet.

alt80

mark55man said:

Glad to see your diary has taken off with a good feel to it. 

But (ha!) I think the question we all want to ask is how much did you need to buy a £90K car, when that didn't even scratch the itch.  So I think what I am asking is why wouldn't the £60K Range rover have done - or even a £40K car - or even a £20K higher spec commodity.  To me it feels like part of the needs versus wants debates that all diaries end up facing (eventually).  Will the you in 10 years really thank yourself when you have put these car spends over other family needs?

  

I've always been a car guy probably always will be. I'm actually very happy with the Range Rover. Had the cheaper Sport one before (still with the Supercharged V8 though), liked it and always wanted the full size one. Will I always want a Bentley to go with it (or a newer version) and a multicar garage full of supercars? Yeah most likely, who doesn't? Getting older I hope will = access to more, better, bigger and more expensive toys. I like cars and I like houses others like horses or big diamonds or whatever. I want a bigger, better house; mine is a nice Victorian period 4 bed detached in a conservation area and I do like it but I still want the 7 bed Georgian / Regency place in a slightly better area with a swimming pool and a 10 car+ underground garage. Again who doesn't if they're honest? Don't think that's going to ever change. What I hope will is the incessant craving for it all RIGHT NOW and if I can get the finance for it I will type mentality which is combined with a certain degree of self loathing if I haven't got what someone else has. Doesn't matter if Bentley dude lives on a council estate to fund it - I will still want the Bentley just not the rest of his lifestyle iyswim.

mark55man

That moderation often comes with age, as you hunger for different things or nothing at all.  When you are balancing high aspirations, high incomes and high spending - you don't need to get the margins very wrong to end up with a big pile of trouble - often more than once. Its easy to be endlessly financially inventive when the real challenge you face is there never enough money in the world to buy all that you could want so when do you stop chasing and work strategies to be content with great stuff but not all you want. 

I think some things we all take for granted (eg house, car, holiday), but other things are more of a decision (that Bentley, shopping, luxury)  - I think you know you need to find a new level as a family, but the longer you fight it the longer you will be here. I know, I have definitely come the scenic route.

RelievedSheff

alt80 said:

mark55man said:

Glad to see your diary has taken off with a good feel to it. 

But (ha!) I think the question we all want to ask is how much did you need to buy a £90K car, when that didn't even scratch the itch.  So I think what I am asking is why wouldn't the £60K Range rover have done - or even a £40K car - or even a £20K higher spec commodity.  To me it feels like part of the needs versus wants debates that all diaries end up facing (eventually).  Will the you in 10 years really thank yourself when you have put these car spends over other family needs?

  

I've always been a car guy probably always will be. I'm actually very happy with the Range Rover. Had the cheaper Sport one before (still with the Supercharged V8 though), liked it and always wanted the full size one. Will I always want a Bentley to go with it (or a newer version) and a multicar garage full of supercars? Yeah most likely, who doesn't? Getting older I hope will = access to more, better, bigger and more expensive toys. I like cars and I like houses others like horses or big diamonds or whatever. I want a bigger, better house; mine is a nice Victorian period 4 bed detached in a conservation area and I do like it but I still want the 7 bed Georgian / Regency place in a slightly better area with a swimming pool and a 10 car+ underground garage. Again who doesn't if they're honest? Don't think that's going to ever change. What I hope will is the incessant craving for it all RIGHT NOW and if I can get the finance for it I will type mentality which is combined with a certain degree of self loathing if I haven't got what someone else has. Doesn't matter if Bentley dude lives on a council estate to fund it - I will still want the Bentley just not the rest of his lifestyle iyswim.

I think this is where you and most people differ. Most people are just happy with what they have got rather then wanting what they can not have.

Why do you need a 7 bed house for 3 people? Who really wants a garage full of supercars that are no use to anyone and make people view you as a bit of a !!!!!! when you are out in them?

Until you get to the bottom of why you feel and act like this then I fear you won't change. One bad day and you will be off to the nearest luxury car dealers and buying that next toy, which still won't be good enough for you.

ryanm8655

RelievedSheff said:

alt80 said:

mark55man said:

Glad to see your diary has taken off with a good feel to it. 

But (ha!) I think the question we all want to ask is how much did you need to buy a £90K car, when that didn't even scratch the itch.  So I think what I am asking is why wouldn't the £60K Range rover have done - or even a £40K car - or even a £20K higher spec commodity.  To me it feels like part of the needs versus wants debates that all diaries end up facing (eventually).  Will the you in 10 years really thank yourself when you have put these car spends over other family needs?

  

I've always been a car guy probably always will be. I'm actually very happy with the Range Rover. Had the cheaper Sport one before (still with the Supercharged V8 though), liked it and always wanted the full size one. Will I always want a Bentley to go with it (or a newer version) and a multicar garage full of supercars? Yeah most likely, who doesn't? Getting older I hope will = access to more, better, bigger and more expensive toys. I like cars and I like houses others like horses or big diamonds or whatever. I want a bigger, better house; mine is a nice Victorian period 4 bed detached in a conservation area and I do like it but I still want the 7 bed Georgian / Regency place in a slightly better area with a swimming pool and a 10 car+ underground garage. Again who doesn't if they're honest? Don't think that's going to ever change. What I hope will is the incessant craving for it all RIGHT NOW and if I can get the finance for it I will type mentality which is combined with a certain degree of self loathing if I haven't got what someone else has. Doesn't matter if Bentley dude lives on a council estate to fund it - I will still want the Bentley just not the rest of his lifestyle iyswim.

I think this is where you and most people differ. Most people are just happy with what they have got rather then wanting what they can not have.

Why do you need a 7 bed house for 3 people? Who really wants a garage full of supercars that are no use to anyone and make people view you as a bit of a !!!!!! when you are out in them?

Until you get to the bottom of why you feel and act like this then I fear you won't change. One bad day and you will be off to the nearest luxury car dealers and buying that next toy, which still won't be good enough for you.

Are they though? I think it’s human nature to want more from life. Though if people just stuck to what they needed then there would be far fewer kids living in poverty around the world (including here), so I admire your sentiment. It’s natural to aspire to more. I know for a fact that if I had the OPs income, I’d likely want more.

And that is the problem when your own self worth is based on what you earn/own. You’re always comparing yourself to others, without any knowledge of their circumstances. That Bentley might be a rental or on finance (almost certainly). There will always be someone better off than you. I’m just beginning to seek satisfaction in other ways rather than moping about what I don’t have (and I don’t mean that in a judgemental way, OP, I completely get your mentality and have a constant battle with myself over the same thing). It’s especially fruitless living in London where, while my wage is decent, it’s a struggle to even afford a flat, let alone a Georgian mansion. It’s also a place where there are people who’s riches you will never reach. I’ve let that mentality beat me up for years. 

RelievedSheff

ryanm8655 said:

RelievedSheff said:

alt80 said:

mark55man said:

Glad to see your diary has taken off with a good feel to it. 

But (ha!) I think the question we all want to ask is how much did you need to buy a £90K car, when that didn't even scratch the itch.  So I think what I am asking is why wouldn't the £60K Range rover have done - or even a £40K car - or even a £20K higher spec commodity.  To me it feels like part of the needs versus wants debates that all diaries end up facing (eventually).  Will the you in 10 years really thank yourself when you have put these car spends over other family needs?

  

I've always been a car guy probably always will be. I'm actually very happy with the Range Rover. Had the cheaper Sport one before (still with the Supercharged V8 though), liked it and always wanted the full size one. Will I always want a Bentley to go with it (or a newer version) and a multicar garage full of supercars? Yeah most likely, who doesn't? Getting older I hope will = access to more, better, bigger and more expensive toys. I like cars and I like houses others like horses or big diamonds or whatever. I want a bigger, better house; mine is a nice Victorian period 4 bed detached in a conservation area and I do like it but I still want the 7 bed Georgian / Regency place in a slightly better area with a swimming pool and a 10 car+ underground garage. Again who doesn't if they're honest? Don't think that's going to ever change. What I hope will is the incessant craving for it all RIGHT NOW and if I can get the finance for it I will type mentality which is combined with a certain degree of self loathing if I haven't got what someone else has. Doesn't matter if Bentley dude lives on a council estate to fund it - I will still want the Bentley just not the rest of his lifestyle iyswim.

I think this is where you and most people differ. Most people are just happy with what they have got rather then wanting what they can not have.

Why do you need a 7 bed house for 3 people? Who really wants a garage full of supercars that are no use to anyone and make people view you as a bit of a !!!!!! when you are out in them?

Until you get to the bottom of why you feel and act like this then I fear you won't change. One bad day and you will be off to the nearest luxury car dealers and buying that next toy, which still won't be good enough for you.

Are they though? I think it’s human nature to want more from life. Though if people just stuck to what they needed then there would be far fewer kids living in poverty around the world (including here), so I admire your sentiment. It’s natural to aspire to more. I know for a fact that if I had the OPs income, I’d likely want more.

And that is the problem when your own self worth is based on what you earn/own. You’re always comparing yourself to others, without any knowledge of their circumstances. That Bentley might be a rental or on finance (almost certainly). There will always be someone better off than you. I’m just beginning to seek satisfaction in other ways rather than moping about what I don’t have (and I don’t mean that in a judgemental way, OP, I completely get your mentality and have a constant battle with myself over the same thing). It’s especially fruitless living in London where, while my wage is decent, it’s a struggle to even afford a flat, let alone a Georgian mansion. It’s also a place where there are people who’s riches you will never reach. I’ve let that mentality beat me up for years. 

There is a world of difference between aspiring to own more and financing yourself to the hilt to have more. 

When we bought our new build house last year we had the option of this 3 bed detached, a slightly larger 4 bed detached or a much larger 4 bed detached. In the end we chose the 3 bed because there are only 2 of us and a dog. We really don't need a 4 bed house and all of the extra costs that come with this. The extra money that we have saved each month by not mortgaging ourselves to the hilt will be used to pay down our credit cards more quickly.