First Steps to Solvency

RelievedSheff

You can't blame yourself for your wife's lack of motivation. That isn't your fault. You can only try to encourage her to do something.

Glad to see you in a much more level headed frame of mind. 

Your son will appreciate this family time more than the money you have thrown around in the past.

alt80

@ryanm8655 wish I’d had the courage to know when things weren’t right relationship wise tbh I’ve never told one to go, always been told they’re going haha and yeah agree re parents 100%. My sister and I get along pretty well always have and have a good laugh generally. Went through a phase of quoting Philip Larkin to each other lol yep pair of idiots when we get together 100% ha. Def worries me for my son’s future as I think it’s very true no !!!!!! hope having me as a father. 😆 

Re drive/ being driven that’s an interesting point too mate idk actually don’t think I’m that driven tbh but others say they think I am, I just like working and making money from property haha so not sure that’s actually driven or not. Was concerned only reason I did it was to fund my BS lifestyle but idk not sure that’s the case, always been interested in business and actually more looking forward to the future/ planning/ growth etc now I’ve decided to bin the lifestyle haha. Irony is might one day have the money for all the lifestyle stuff and not be interested in it - that really is a head !!!!!! mate ha.

enthusiasticsaver

It sounds like you have gone through a complete transformation and I for one can hear the difference in your posts now.  I also do not have a problem with anyone buying luxury cars or whatever so long as it is affordable and I think once you just have the one very expensive RR on finance it will be affordable for you and you now know you can afford the balloon and to get rid of the debt as well.  As you say all the other lifestyle stuff is a waste of money IMHO but I am going to watch a documentary tonight about Social Media and the dangerous human impact of social networking and I think that talks about IG and influencers etc (a word I had never heard of before reading your diary, did not even know that was a thing).  Not sure what my DH will make of it either LOL. £500 on a top!!! I believe in paying a  bit over the odds for good quality stuff or clothes which have been responsibly produced by an ethical company and will last but that is ridiculous. 

17% is what shows on our portfolio report today as the annual gain as at yesterday so not a typo and that is in a cautious portfolio.  I am surprised it has done so well since March/April when it dipped last year but we had a zoom meeting with our IFA yesterday and he warned that it may not last as the market is buoyant due to so many governments stepping in with support over the pandemic so if the support is withdrawn relatively quickly and the economy suffers then it may drop. The US funds particularly are doing well but several of the funds are  invested in Tesla, Amazon, online retail companies etc which have all done well out of the pandemic. He thinks a lot of the European drug companies will also do well out of the vaccines.   The thing with investing though is that overall it is a long term thing so you cannot get too worked up about the peaks and troughs.  Our investments are diversified enough across geographies, sectors and assets for us to weather most storms.   I find it really interesting but admit I don't have the resources or knowledge  to research funds like our IFA does and had we left it in the fund I was using prior to going with him the return was only 10% so the return depends on where it is invested. 10% is still good though. Check out Tim Hales book Smarter Investing and articles on Monevator aimed at novice investors. I think you would enjoy learning about it and as I say until you are in a position to invest you can do a virtual portfolio. Interactive investor has a lot of resources and I think they are all free. 

I agree with others on here that you need to stop blaming yourself for your wifes lack of ambition.  She is not a child. Glad you have had a nice day 

alt80

Day 32 still not had a drink. Not spent no money either teetotal monk training going very well imo. Wife got F&M sparkling tea again not alcoholic but came off the ‘alcohol’ spends ha similar cost to a bottle of wine. Prob should change that to ‘drinks’ spends. 100% recommend though. Had a massive 3 course meal, won’t complain about the chicken salad again haha we both feel really ill lol massively overate not really used to it, meant to be cooking a roast chicken dinner tomorrow tbh might just do the chicken salad ha. 

BoJo making me anxious again, saw a news article saying social contact going to come back asap next hour my mate on the phone ‘big one soon’ FML 100 don’t need that in my life. Ha remember all the angry posts on here and the rants to staff/ mates last year, couldn’t !!!!!! wait for the end of it. Now 100% never want to be allowed into a pub ever again - !!!!!! praying BoJo keeps me away from the chang for good. Always laughed at JV mate for choosing to live in the middle of the Derbyshire Dales - it’s a truly stunning place where he lives in a rural type way and the views are something else but FML the towns are truly tragic - choice of puddings in one direction and smack in the other lol but I’d go live out there right now never a reason to step in a pub or shop again ha.

Might have a look at tidying the spreadsheets up a bit before I go to bed, start to get ready for monthly tracking starting end of next week. Time to check for stupid typos then. Apologies for not responding to everyone individually struggling to keep up a bit but have read everyone’s posts and thanks.

@RelievedSheff yeah definitely feeling a lot more level headed I’m better keeping away tbh. Apart from the obvious ‘bonus’ ha everything a lot better without it. Still want it on and off no doubt but making a real effort on the counselling etc get my head in the right place and it goes. 

Son loves me being around more, still not sure that’s a good thing for him but better than being ‘there’ but not really. 

@enthusiasticsaver haha idk about complete transformation but really trying to work on the good and bin the destructive stuff - spending one of those things 100%. Bit of a shame taking me this long though worked out if I had worked to this budget after I refinanced to get free of the card debt even with the BMW and F-Type would have only needed to finance 1/2 the value of the RR and would have made the balloon payments on the BMW and F-Type. Just going to have to take my punishment now and learn from it. 

Lol yeah IG a big thing amongst people, girls mainly my wife’s age and younger. Mainly younger tbh I’d say and yeah bought a fair few £500 tops all for the wife ha. I’m like you pay a bit for good quality stuff but have very little proper high end clothing, buy just about all my clothing from JL but wife usually have to take a trip to a bigger city she’s got a lot of proper high end clothing. Times I’ve had to be her !!!!!! photographer for IG FML refused to do it since I stopped going on it altogether - never really into it personally I’m a bit old for it ha so never fully got the appeal but did used to follow a lot of (often BS) car/ property accounts and got all the AM ads haha. Irony is going to be more likely to be a position to actually buy an AM without any of that in my life lol. 

17% is incredible, so is 10% tbh. 10% yield hard to achieve, can be done with places that need a lot of management (mainly lower end HMO/ blocks - decent student HMO places c.6.5-8% here) but average yield from your average res single family BTL round here tends to be around 5-6% in a decent place - 7-8% if you know what to buy / worse areas though tbf. Assuming you’re talking res here I know - will be here all day going into comm. ROI decent if it’s leveraged which harder to do for what you’re investing in from what I know which is about nothing ha so could be wrong there. Definitely going to have a look into it thanks for the book/ website - new interest ha bit embarrassing when I’ve got !!!!!! all money to invest but I’m the sad act who did a degree in property so nothing like being prepared lol. Going to have a go at the virtual portfolio be my luck in the years I’ll be having a go virtually I’d have made a !!!!!! fortune if it was for real haha.

Onebrokelady

Just because Bojo says you can doesn't mean you have to, you just need to keep focused  and carrying on one day at a time, you have inspired me to give up chocolate, cakes and biscuits for 30 days,I thought if you can give up drink and drugs for 30 days then surely I can manage my sweet tooth 😂

alt80

@Onebrokelady yeah well BoJo technically says I can’t even if the pubs are open ha unless he’s gonna stop lockdown and legalise chang to pay for it lol. Seriously, you’re right I know just a bit anxious. 100% go for it re choc/ cakes/ biscuits if it’s something that you think will be beneficial for you. You can def do it, I’ll keep you on board on your diary mate ha. 

woahsoah

Hey mate. Just logging in from the other side of the world to say such an amazing turn around! I'm really pleased for you.

Talking of asset returns (and I don't advise this now). I punted a small amount into crypto years ago. I calculated i've taken 350k GBP profit (after tax) over the last few years. Unfortunately now I have very little left but it has been a hell of a ride.

I'd take a look into vanguard funds. I couldn't possibly recommend crypto at these prices but I know nothing!

RelievedSheff

As someone else has said even if Bojo does open stuff up doesn't mean that you have to go and use it.

We will definitely be taking a closer look at our spending now after lockdown has made us realise how much we did previously spend on "stuff" at the weekends. 

I do think that how we shop and spend will be changed forever now and for the better.

ladyholly

Onebrokelady said:

Just because Bojo says you can doesn't mean you have to, you just need to keep focused  and carrying on one day at a time, you have inspired me to give up chocolate, cakes and biscuits for 30 days,I thought if you can give up drink and drugs for 30 days then surely I can manage my sweet tooth 😂

I have done much the same. I keep thinking  if alt can keep off the addictive stuff I can lose some weight which I seriously need to.

I bet when you started on your debt free journey you never thought you would inspire others.

getmore4less

alt80 said:

Some help needed with this please - I have done this around 11 times in total, went out for a 15 min walk and still coming up with the same figures - it's the not keeping BMW figures that feel completely wrong but I can't see where they are?? Basically saying end of Dec '26 I'd have £79k saved hahaha FML (no savings interest accounted for or what I'd really do which is never take the income in the first place - keep the surplus in retained and reinvest). 
...

I missed this yesterday in the morning when I like to deals with numbers

A cash flow analysis sorts out when you need to juggle debt.
between your 2 tables if the only difference is the BMW then that should condense nicely.
As I see it you have current payment(£430), running costs(£160) and a £19k balloon in March 23 
Keep
£10,320  = £430 x 24  March 2021-Feb 2023
£19,000  balloon March 2023
£11,200 = £160 x 70   March 21-Dec 2026
£40,520  total  cost

Go
£3,540 = (£430+£160)*6  you seem to be keeping for  6 months

net saving 
£36,980  (£40,520 -£3,540)

from your second set of numbers go-keep savings total 
£37,020  =  £78,975 - £41,955 

That's pretty close,  should cut a years off debt free RR paid for(this is roughly a years worth of £3,100pm)

Lobbing that basics data into a spreadsheet(just for fun an I need practice with open office)

We are just dealing with just  cars BMW, RR  and debt
from the old data post before the lockdown additions I get that there is about £3,100 pm paying for those 3 at the moment
(it seems to give the ballpark numbers you have so will go with it)
Going to put in £27,380 as the starting debt as that is total in the post on the net worth 18th Feb.
add in the 2 balloons for the cars when the finance runs out then plot the net debt over 70 months with and without the BMW


If we change this to treat the CC debt as only appearing when there 0% run out so the debt does not exist till it is due like the balloons, starting debt is the just the £2345 OD.
.

where you dip below zero is when you need new credit options, although you should have some cash in reserve as the day to day includes allocations for future spends,
 
Without the BMW and once you get past the July 2021  CC running out should be able to find ~£1k to avoid the Jan 2022 renewal  the Oct 2022 is covered  then the next crunch point is not till the RR balloon May 2024 looking at ~£11.5k(keep the BMW its ~£44k)
Sept 2024 Debt free no BMW 
Sept 2025 Debt free keeping the BMW