Wow wee oh my - trying to hack away at my £54k debt (was even about to book a holiday)

Beeboo23

alt80 said:

@Beeboo23 fair enough mate. I faced an awful lot of flack for my lifestyle choices on here and just wanted to give a bit of moral support to the OP and let him know there are people out there with similar mindsets but tbf I probably overreacted a bit to your post. Absolutely up to you what you value in life I definitely agree with you there.

Sounds like the three of us have similar backgrounds. I grew up in a poor family and as soon as I started making money I started spending money on expensive holidays, designer clothes etc. I never wanted to feel poor again or hear the word no so I racked up the debts. Luckily it only took a couple of years to realise that spending a lot of money doesn’t make me secure, saving a lot of money does. The damage wasn’t too bad when I had my lightbulb moment but still had 15k debt at 24. Long story short once you change your mindset it’s very possible to get your head back above water and pay your debts down. Good luck to both of you. 

alt80

@Beeboo23 Wouldn’t say I grew up in a poor family as such but iswym, it was definitively chaotic and my dad back then makes me look like a saint with money. Literally gambled his business/ home away (pub/ restaurant trade) and he’d 100 tell you I’m ‘very sensible lad’ lol.

To be in your 20s, near six figure income whether that’s net or gross and free of personal debt is an amazing achievement. Well done and I wish you all the best mate. Do find time to let your hair down from time to time though you only live once. 

Rainbowtrousers

alt80 said:

@RainbowtrousersI’d say we probably do have similar mindsets on the personal stuff, @ryanm8655 has also admitted to having similar issues with mindset and I may have just hooked you up with a lodger tbf as he’s looking to move back to London. Never stop making deals ha.

Totally understand re still wanting the toys but 911 C4S - come on be a man and at least be aiming for the C2S... none of that power should be heading to the fronts mate. I had to voluntarily terminate my V8 F-Type, one of the hardest things I’ve ever done and sent me on a massive downer tbh. Still got the Range and a 440i but not gonna lie I want a Vantage far too badly right now.

As you’ve gave me permission to make judgement I’m sorry to break it to you mate but assuming property investment is going to be ‘easy’ because your Dad is a painter and decorator is really the wrong way to go about it. It’s a business and to make it work as a LL you need to treat it as such - it’s not the passive income the ‘gurus’ will have you believe. You either need to manage yourself or have a damn good agent you can 100% trust - not the one with the cheapest fees usually. I’m passionate about property - it’s my livelihood after all but I’ve dealt with so many LLs over the years who are either the ‘accidental’ type or the ‘easy money’ type - not great for them and no good for the tenants. Please don’t forget you are providing a home to someone whether that be a room in a HMO or a whole house, for the time that tenant is there it’s their home. I’d honestly say don’t do it if you just want some easy money/ second income - it’s not what it was tbh but can still work under the right circumstances and for the right person. I may well have read your posts re property entirely wrong and sorry if I have but having a BTL on a res mortgage was a massive flag to me and would be to any other professional LL.

That made me laugh. I'd always wanted the C4 because of the red strip at the back but with the new model they all look the same so maybe time to revisit and think about power distribution!
I see what you mean. Without sounding spoiled i cannot remember the last time i had christmas and nye in london. Probably not for 10 years. I am a very optimistic and positive person but i am feeling some remorse for my old life right now but i guess that is a good thing as that could not continue. I was in sort of a toxic relationship with myself. 
Thanks for the room referral - would certainly work to have a fellow new budgeter in the flat. My place is pimpin too i have to say. 
Thanks for the tips/hard words! It is what i need. I have been a really good LL to my tenants over the 10 years but i definitely fall into the accidental LL category. I think the main issue i have right now is dealing with too much at once when in fact i should be simplifying it down to 1.budget for the first time in my life  2. pay off all debt not using mortgage. 3. consent to let for rental/eventual i/o btl mortgage. And then think about investment strategies and set some life goals!

Rainbowtrousers

Beeboo23 said:

alt80 said:

@Rainbowtrousers I was spending £3.5-4k more than earning just on lifestyle stuff. Had a lot of flack on here for the cars but still all I want to do 50% of the time is go and finance a brand new AM Vantage having just had to voluntary terminate my V8 F-Type. Before I handed the Jag back there was £175k owing on cars alone would have kept it if I could, down to 2 cars now. Point is we both need to sort the debts and mindset to an extent but don't need to drive a Kia or eat beans on toast seven days a week.

Mortgages I wouldn't worry about too much mate. Tbf I would like to be in a position I didn't have a load of personal guarantees against me. Personally can't wait to be 2 years down the line if everything goes to plan, get the res home remo and get some more leveraged investments.

I nearly make 6 figures and I drive a Kia which I own outright. Made my last credit card payment this month and I’m officially debt free (mortgage pending). Nowt wrong with a Kia. 

Thanks for reading my thread and posting a reply. Have read your later posts too. Impressed with the budgeting skills and discipline. It took me many years longer to recognise the overspending was an issue. It has paid off in a way as i massively over stretched myself with both my properties and now have two really nice places which have gone up in value as a result. So not all bad. Great to see you on top of things. I will be officially debt free one day!

Rainbowtrousers

Beeboo23 said:

alt80 said:

@Beeboo23 fair enough mate. I faced an awful lot of flack for my lifestyle choices on here and just wanted to give a bit of moral support to the OP and let him know there are people out there with similar mindsets but tbf I probably overreacted a bit to your post. Absolutely up to you what you value in life I definitely agree with you there.

Sounds like the three of us have similar backgrounds. I grew up in a poor family and as soon as I started making money I started spending money on expensive holidays, designer clothes etc. I never wanted to feel poor again or hear the word no so I racked up the debts. Luckily it only took a couple of years to realise that spending a lot of money doesn’t make me secure, saving a lot of money does. The damage wasn’t too bad when I had my lightbulb moment but still had 15k debt at 24. Long story short once you change your mindset it’s very possible to get your head back above water and pay your debts down. Good luck to both of you. 

I concur. It is the mindset. It is going to be tough to shift. Like alt80 i still browse the porsche websites and even stopped at natuzzi on the way back from surfing on sunday to check out new rugs. I really need a t shirt which reads 'i am £50k plus in debt do not sell me anything' 

Rainbowtrousers

ryanm8655 said:

alt80 said:

@RainbowtrousersI’d say we probably do have similar mindsets on the personal stuff, @ryanm8655 has also admitted to having similar issues with mindset and I may have just hooked you up with a lodger tbf as he’s looking to move back to London. Never stop making deals ha.

Totally understand re still wanting the toys but 911 C4S - come on be a man and at least be aiming for the C2S... none of that power should be heading to the fronts mate. I had to voluntarily terminate my V8 F-Type, one of the hardest things I’ve ever done and sent me on a massive downer tbh. Still got the Range and a 440i but not gonna lie I want a Vantage far too badly right now.

As you’ve gave me permission to make judgement I’m sorry to break it to you mate but assuming property investment is going to be ‘easy’ because your Dad is a painter and decorator is really the wrong way to go about it. It’s a business and to make it work as a LL you need to treat it as such - it’s not the passive income the ‘gurus’ will have you believe. You either need to manage yourself or have a damn good agent you can 100% trust - not the one with the cheapest fees usually. I’m passionate about property - it’s my livelihood after all but I’ve dealt with so many LLs over the years who are either the ‘accidental’ type or the ‘easy money’ type - not great for them and no good for the tenants. Please don’t forget you are providing a home to someone whether that be a room in a HMO or a whole house, for the time that tenant is there it’s their home. I’d honestly say don’t do it if you just want some easy money/ second income - it’s not what it was tbh but can still work under the right circumstances and for the right person. I may well have read your posts re property entirely wrong and sorry if I have but having a BTL on a res mortgage was a massive flag to me and would be to any other professional LL.

Haha. Thanks for the tag. Likely looking to move around January.

Will check out the diary, it looks an interesting one from the few posts above.

Likewise and well done for being so disciplined. Imagine having to tell people we met on a night out that we met on a forum ! But lets keep in touch and see what happens. I am in south london. 

Rainbowtrousers

alt80 said:

@Beeboo23 fair enough mate. I faced an awful lot of flack for my lifestyle choices on here and just wanted to give a bit of moral support to the OP and let him know there are people out there with similar mindsets but tbf I probably overreacted a bit to your post. Absolutely up to you what you value in life I definitely agree with you there.

Thanks mate. I am a no nonsense guy most of the time so those words get me motivated. Plenty of supercharged RRs where i live so i keep looking in imagining its you driving along. Even funnier if i see one parked outside the AM showroom. Not funny but you know what i mean. 
On a sensible note i think i can pay off one CC before xmas with some consultancy work and longish hours. 

warby68

Of your immediate options, I'd go for the consulting work - presume its decently paid and could kickstart debt reduction. It might be too much long term but 2 months is not forever especially with corona limited activity elsewhere.
I too would hate lodgers - my very last choice - but it works well for many, just might need to think it through more. The extra work option is time limited and lucrative so that looks good.
I like the gathering of the kindred spirits as long as you egg each other on with the good habits not the bad ones.

Beeboo23

Rainbowtrousers said:

Beeboo23 said:

alt80 said:

@Beeboo23 fair enough mate. I faced an awful lot of flack for my lifestyle choices on here and just wanted to give a bit of moral support to the OP and let him know there are people out there with similar mindsets but tbf I probably overreacted a bit to your post. Absolutely up to you what you value in life I definitely agree with you there.

Sounds like the three of us have similar backgrounds. I grew up in a poor family and as soon as I started making money I started spending money on expensive holidays, designer clothes etc. I never wanted to feel poor again or hear the word no so I racked up the debts. Luckily it only took a couple of years to realise that spending a lot of money doesn’t make me secure, saving a lot of money does. The damage wasn’t too bad when I had my lightbulb moment but still had 15k debt at 24. Long story short once you change your mindset it’s very possible to get your head back above water and pay your debts down. Good luck to both of you. 

I concur. It is the mindset. It is going to be tough to shift. Like alt80 i still browse the porsche websites and even stopped at natuzzi on the way back from surfing on sunday to check out new rugs. I really need a t shirt which reads 'i am £50k plus in debt do not sell me anything' 

Haha, I would love a Porsche Macan but realistically I’d only let myself buy one if I saved up the cash, and if I saved up the cash I wouldn’t want to swap it for a car. Much easier to make ridiculous purchases on finance because it feels more affordable when in reality it’s much more expensive. It seems like a long journey ahead of you but you’ll get there, you have a great job and you’re in a great position to start tackling this. Good luck. 

enthusiasticsaver

Rainbowtrousers said:

On a sensible note i think i can pay off one CC before xmas with some consultancy work and longish hours. 

That would be a brilliant start to your debt free journey.