First Steps to Solvency

alt80

@enthusiasticsaver yes I’ve valued the business using a multiplier effort and it’s a ballpark. Fairly reasonable ballpark given I have quite a good idea about what I’m doing but still a ballpark sorry but I’m going to pull rank on this one lol - valuation is not an exact science.

Know you’re right re the pensions and you’re not the first to say it. I would actually like to do something about it tbh as it’s stupid not taking advantage. 

@RelievedSheff ha idk might last until tomorrow lol. I do keep thinking about the AF year but then not sure it’s for me and probably would go mad on day 366 haha.

getmore4less

@alt80   you have this thing that generates £8kpm net  (and could be able to with you stepping back if you wanted)

Look at what size pot of alternative investments you would need to generate that income and inflation proof it.

Might get away with £2m in a tax wrapper like ISA  generating 4.8% excess income, £3m would be more realistic 3.2% once some is taxed you need more. 

This is sustainable lifetime income no cashing in or dropping dead early it even carries on after you go for your wife and son.
That's why it is worth £3m to you if you can stop it going bust, create sustainability, then has some attributes of a perpetuity )

enthusiasticsaver

I agree valuation of things like property, business goodwill, cars etc can only be ballpark as it is only worth what someone will pay for it. As investments are listed they are easier but you don't have any of those. Probably you weren't interested before as you know property and cars but don't know anything about investing and as you seem to be a guy who likes to control your money etc maybe you shied away because you don't want to relinquish control on something you don't fully understand. You can diy invest though which is why I say take these next few years when the debt is dealt with to educate yourself. 40 is still young. I also think until now you have always thought short term re your personal finances.

@ryanm8655 and @Nicnak assuming you both have civil service/teacher pensions those are gold plated. If you get CETV for those at some point you will be pleasantly surprised. 

alt80

@enthusiasticsaver yes talking about cash flow though the exercise yesterday was probably more akin to a personal balance sheet or something though. I have done a cash flow for the year - put it up later probably need to get off here now and out for the walk I’d planned lol.

You’re 100% right re control / lack of understanding of investments (probably too thick to work it out ha) and yeah property is all I know (don’t really know that much about cars, enough to probably make a couple of wiseish investments tbf but I’ve not chosen wisely very much heart over head in that department ha). Definitely true re thinking short term re personal finances too. 

@ryanm8655 / @Nicnak you probably both are ‘pension millionaires’ haha.

@getmore4less Iswyacf however doesn’t mean the business is valued at that figure which is where I was coming from actually makes a lot of sense though and never thought about it like that.

enthusiasticsaver

Enjoy your day with your son. The figures can wait.

ryanm8655

alt80 said:

@enthusiasticsaver yes I’ve valued the business using a multiplier effort and it’s a ballpark. Fairly reasonable ballpark given I have quite a good idea about what I’m doing but still a ballpark sorry but I’m going to pull rank on this one lol - valuation is not an exact science.

Know you’re right re the pensions and you’re not the first to say it. I would actually like to do something about it tbh as it’s stupid not taking advantage. 

@RelievedSheff ha idk might last until tomorrow lol. I do keep thinking about the AF year but then not sure it’s for me and probably would go mad on day 366 haha.

I ended up doing about 6 weeks booze free in the end. Felt great but then it did begin to feel like a punishment. My drinking habits had changed though, when I did drink I drank a lot less! It’s only moving to London and being off the leash that has got me back into bad habits again. Think I’ll do another chunk of time off soon. Personally wouldn’t have a set end date in mind, just see how you go, otherwise you will find you go crazy I expect.

Day with son sounds great! Enjoy the drive thru ha.

enthusiasticsaver said:

I agree valuation of things like property, business goodwill, cars etc can only be ballpark as it is only worth what someone will pay for it. As investments are listed they are easier but you don't have any of those. Probably you weren't interested before as you know property and cars but don't know anything about investing and as you seem to be a guy who likes to control your money etc maybe you shied away because you don't want to relinquish control on something you don't fully understand. You can diy invest though which is why I say take these next few years when the debt is dealt with to educate yourself. 40 is still young. I also think until now you have always thought short term re your personal finances.

@ryanm8655 and @Nicnak assuming you both have civil service/teacher pensions those are gold plated. If you get CETV for those at some point you will be pleasantly surprised. 

Yeah, mine is average salary, pay in about 7% and government effectively pay in about 22%. Also have a small amount from my big 4 days. Not even sure who that’s with ha. Pension is about the only thing I’ve done that’s financially sensible ha.

alt80

@enthusiasticsaver Son !!!!!! about in playground so did get out in the end got away from the numbers. Def will put up tonight - bit of an eye opener but helped me to plan coming year 100%. Loving that side of the debt payback life yeah 100 a bit of a !!!!!! know that much ha. The lists / reminders, parking the BS makes my mind clearer and a lot more level on the emotions FML only took me until I was 40 to work that out. As I say always have been a bit slow, sister was the clever child those extra brain cells def passed me by and I probably decimated what I was left with all by myself.

@ryanm8655 I’ve not made a date, taking it one day at a time mate see how I feel on the day. As you say would be soul destroying otherwise lol. Not even made the promises re the other stuff this time, no intentions to start that again tbf but just dealing with each day. Parking it if I do fancy it, no reminders in my phone like the wish lists though lol. Genuinely in a place where I hope I don’t touch it again but the promises never worked, just park it and hope I carry on doing so. 

Ha with your background/ profession I bet you’re !!!!!! cringing at my efforts on the number crunching mate ha. Honestly I’m a bit embarrassed putting it up on here as I’m aware there are people like you who got a bit further up the chain than making a living from measuring sheds, always up for personal growth though - never learn anything if you don’t try haha.

RelievedSheff

Stop putting yourself down. You know how to use that tape measure   

Willowtree222

Yes, mine is teacher pension. I have a couple of years on the final salary scheme but most under the new average salary. 9.6% contributions from me every month. It'll be less with me dropping to part time come May, but still a Surprise when I worked it out.
The equity in my house is a lot bigger too. About 70k so far. 10k of debt. Car has equity, not loads but enough to pay off the finance should I need it. 
Not in a bad position x

Bargainhunter30

I'm trying to do clean eating atm, went cold turkey on the bad stuff for a month, then Christmas happened! Now trying to limit junk food to weekends (doesn't always work but feel better for trying). Maybe you can do the same with alcohol when you're ready to re-introduce, then you know you have control over it and not it controlling you. Obviously wouldn't reccomend this approach with the other stuff 😂