First Steps to Solvency

getmore4less

The retirement thing does not have to be a all or nothing, business succession/exit  planning,
its not like a job where you stop at some point it is building up an asset with value and the trick is to make sure that you are not essential part of that value or can be phased out if someone else takes on the business.

How does your sector moves on what they have built up,  buyouts, mergers, succession...?

alt80

@getmore4less absolutely - no plans to give my business up entirely. If you’ve been an employee for your whole career you won’t get it IMO. Maybe when I’m very old I will have no involvement. If I wanted I could take 2 more staff on and work 20-30 hours a week now just as a managing director. I’m not instrumental to the business’ long term survival - purposely made it that way so when the time comes there is a business with value. In a roundabout way, yes I suppose I’ve planned for my old age just never sat down and considered it to any degree from a personal aspect. 

As I say by the time I have no involvement whatsoever I’ll probably be too old to get the most out of life. I won’t be one of those old people going into some care home and buying some awful bungalow on an estate of similar - that was my point re the house, I’ll keep my home (or a better one) even if life goes a bit awry and the LA cover my council tax and running costs - paid in enough over the years. No guilt there at all. Currently I do more work than I need to and have more involvement in the day to day stuff - still enjoy that side I’m not past it yet. 

Could definitely use my income a little more wisely taking advantage of pension tax benefits tbf. 

Really hope my son will want to take on the business if not I do loosely have another plan. 

alt80

Well it’s gone.

Spent my afternoon between work jobs looking at cars... never learn lol. If I could get rid of the bmw next spring and use the money we make from selling stuff + £5k, I found I could get a new Vantage for £849/m. Very tempting. Would leave the cards as they are but they are going down £1k/m anyway. Know what I’m going to be told to do on here haha and it isn’t buy a Vantage in spring. Also looked at using the cash for a deposit on a new f type (same idea get rid of bmw for it) - that’s worse on the payments than the AM because as I know nothing depreciates quite like a performance Jag. 

My life would probably not be worth living if wife knew I was at my desk looking at an Aston lol.

alt80

Well aware this probably sounds bonkers but just ran the figures could swap the BM for a Vantage and just have enough to live on including paying cards at current rate / fuel it / maintain it. If we binned the school that’d be £1k/m could split between overpaying the cards and maybe having a holiday. Once the cards were gone I’d have just about enough time to save up for a deposit on a new car or refinance the balloons. 

Obviously realise I can’t live my life in a deficit every month so will have to see how the next few months are on the reduced budget. Appreciate I should probably stick with the BM and overpay the cards, get those gone and buy the AM but this is so tempting and the deal is unbelievable tbh. 

rugbymadfamily

alt80 said:

Well aware this probably sounds bonkers but just ran the figures could swap the BM for a Vantage and just have enough to live on including paying cards at current rate / fuel it / maintain it. If we binned the school that’d be £1k/m could split between overpaying the cards and maybe having a holiday. Once the cards were gone I’d have just about enough time to save up for a deposit on a new car or refinance the balloons. 

Obviously realise I can’t live my life in a deficit every month so will have to see how the next few months are on the reduced budget. Appreciate I should probably stick with the BM and overpay the cards, get those gone and buy the AM but this is so tempting and the deal is unbelievable tbh. 

So you are going to sacrifice your sons education in exchange for a car? I am sure things are feeling quite raw today having just handed back the F-Type, so I am going to word this gently. Step away from the car websites for at least today (but preferably the rest of the week / month). Spend sometime with your family and remind yourself that the sooner you get the cards paid off (which will be a lot quicker if you go down to 1 car which I seem to recall you saying you could manage with and without buying a Vantage) then the sooner you will be out of deficit and have learnt to live with in a budget.Living within a budget does not mean no holidays or luxuries, it just means budgeting for them instead.

 Buying a Vantage will not make you happier or help your mindset think that you have "made it". 

efes_shareholder

Trying not to judge , but having read through your diary I'm wondering whether you want a debt free life ?
You seem more focused on trying to make the things you aspire to have in life fit to your debt?

enthusiasticsaver

alt80 said:

Well it’s gone.

Spent my afternoon between work jobs looking at cars... never learn lol. If I could get rid of the bmw next spring and use the money we make from selling stuff + £5k, I found I could get a new Vantage for £849/m. Very tempting. Would leave the cards as they are but they are going down £1k/m anyway. Know what I’m going to be told to do on here haha and it isn’t buy a Vantage in spring. Also looked at using the cash for a deposit on a new f type (same idea get rid of bmw for it) - that’s worse on the payments than the AM because as I know nothing depreciates quite like a performance Jag. 

My life would probably not be worth living if wife knew I was at my desk looking at an Aston lol.

So you will give up the BMW at £430 per month and take out a new deal for whatever a Vantage is at almost double the cost? How will that help your deficit? You really are bonkers. 

I can't see how depreciation makes any difference if you are buying them through PCP deals. You will never own them anyway unless you save for the balloon and you have said you have never saved a thing in your life. Unfortunately this is the result of our crazy government economic policy. Easy lending, low interest deals are an invitation to you and others like you. Still you are propping up the economy at whatever personal cost. 

alt80

@rugbymadfamily I don’t think we’re getting much value for money with the school imo. Certainly not at the moment. 

Paying the cards down is definitely punishment for not getting a grip on this. I’m very fast heading for 40 and it seems I’m going to be paying these cards down for the next few years at least. Not going to live without a toy for that long haha. Am I going to actually buy an AM - probably not. Would I rather have an AM than go on holiday - absolutely. Will it make me happier - yes when I’m testing the 3.5seconds to 60 lol.

@efes_shareholder Fair point - basically I need to get rid of the cards and not keep using them again. So 100% looking for debt free in that regard. The constant cycle of card debt is stressful and I’m fed up making £1k/m payments to cards. Can’t just default them as I need to maintain a clean credit record. Life would not be worth living if I couldn’t maintain a decent credit file for bigger reasons than not being able to finance the next range.

I don’t see the car finance / mortgages as a problem so quite happy to not be debt free in that regard. One is debt for toys which I appreciate I won’t get back but I will get some joy from and the other makes financial sense both the BTL and the res home. Yes I’m sure I could physically live in a two up two down and drive a 320 or something similar but I like two things above anything else; nice houses and nice cars.

From a very quick glance at your diary I pay about the same to run my Range Rover as you earn - that’s not a criticism but I think highlights why you have the view about me that you do.

alt80

@enthusiasticsaver Aston Martin Vantage. With the ftype gone I have a surplus not a deficit if I can stick with the budget I can say bye bye to the BMW, use the money we make from selling stuff we don’t want, throw £5k on a card and get one. 

Depreciation makes a difference as it affects the end value (balloon) on the car - a three year old Aston has lost less than a three year old top spec ftype. Hence the deal being better on the AM.  

efes_shareholder

alt80 said:

@rugbymadfamily I don’t think we’re getting much value for money with the school imo. Certainly not at the moment. 

Paying the cards down is definitely punishment for not getting a grip on this. I’m very fast heading for 40 and it seems I’m going to be paying these cards down for the next few years at least. Not going to live without a toy for that long haha. Am I going to actually buy an AM - probably not. Would I rather have an AM than go on holiday - absolutely. Will it make me happier - yes when I’m testing the 3.5seconds to 60 lol.

@efes_shareholder Fair point - basically I need to get rid of the cards and not keep using them again. So 100% looking for debt free in that regard. The constant cycle of card debt is stressful and I’m fed up making £1k/m payments to cards. Can’t just default them as I need to maintain a clean credit record. Life would not be worth living if I couldn’t maintain a decent credit file for bigger reasons than not being able to finance the next range.

I don’t see the car finance / mortgages as a problem so quite happy to not be debt free in that regard. One is debt for toys which I appreciate I won’t get back but I will get some joy from and the other makes financial sense both the BTL and the res home. Yes I’m sure I could physically live in a two up two down and drive a 320 or something similar but I like two things above anything else; nice houses and nice cars.

From a very quick glance at your diary I pay about the same to run my Range Rover as you earn - that’s not a criticism but I think highlights why you have the view about me that you do.

absolutely and its all relative , we are pretty much all here because our historic choices have been to live beyond a means that we can accomodate within our salaries regardless of what that salary is.
Nothing frustrates me more then allocating some of salary to what I refer to as old spends - money I spent a long time ago on what I couldn't even tell you now !! 
Its your choice to take the scenic route but it will be a longer journey if you aren't prepared to put aside the wants and make some sacrifices - imangine the dent my salary , your RR running expenses could make in your debt and the choices what will be available to you at the end of the journey