Future Proofing my life: Deposit saving then MFW journey in under 13 years

LadyWithAPlan

Merlin's_Beard said:

YNAB - yes, it can connect to UK banks fairly easily.

I don't work for myself but I have a  "to be reimbursed" category on my work expenses. I'm guessing you have entirely separate personal and business accounts though so it might be easier to just run two budgets - one personal, one  business (this is entirely possible on YNAB) - and the business one you can always have a tax category where you  set aside a certain percent for taxes?

Yes, you need to reconcile. So easy to miss things if you don't.

The reddit ynab is easily searchable and full of good advice though, so it's worth a google search through there for specifics.

I've always found the credit card thing intuitive - you pay for whatever, it takes the money out the relevant pot, the money is sequestered in the credit card account until you pay off the bill - so it forces you to never buy things you don't have the money for now (ie no "next month's paycheck is covering this"). There are a lot of internet things saying it's  confusing but I think that's mainly people who came from previous versions of YNAB where it worked differently.

Thanks for this - been watching various videos on it as dont want to set up then re have to set up.  I think I need to relook at the credit card ynab way  as watched a 30 min  video on it but think it might have been old way of dealing the video as different from what you describe..

I run accting software anyway for both se and ltd company  as have had to file seperately - but will merge all into ltd co this tax year .. so also one cost rather then 2 annual fees.

I have the instinct I will have just one ynab  as reports will be easier and  there are expenses that cross both eg subsistence away, split rent and bills in terms of use of home as office as I have a study etc ... Though you may be right two may be better.. 
If I ran just one ynab I will always add income  paid in and then directly as I do now add a % into my premium bonds for tax savings immediately so the tax money can be budgeted off straight away. I also shunt 15% off into my sipp on each invoice paid as long as I am ahead. I do effectively do ynab process  just not using their software and google suggests I may get a student ynab free year - not sure if only in the States but I have proof so I will see.

I think I can use lots of assets/liability accts rather than try to go in and add all my accts in for budgeting so thus would need to go through all transactions etc 
I think I need to try one ynab acct  then re think after a few months. 
The notion is a pain and my own G sheet is doubling up where I move my pots around .. so now I have added a G sheet to track all my expenses by category I might as well try ynab as its similar effort but all in one place so reports are available..

Going food shopping in cold grey .. - no gym but a walk is good so off out shortly
Really cold and gloomy today and its past 2pm - was doing some MB this morning  - so put the gym off again and now feeling lazy - however I have some CS to drop off and I need loads of greens, coconut oil, w/up liquid and i fancy a roast chicken and then I can make soup  - I have the Sain vouchers .. or I can go to lidl which is slightly nearer  .. hmm.. 

MB income 
 I have a feeling my  MB 'income'  since 14 Nov will be fabulous - I did have over a £1k win - I wont add up til EOM
It was up £952 Oct 9-nov 14 (didnt do much nov 1 -14 as was away) so hopefully it will be of a similar amount.

Minimalism - 220 things this month
only managed 10/26 yesterday so will look at the 27 items today
Will update sign to track minim monthly totals 

Taxes on my return from the shopping

KajiKita

Thanks LWaP 😊
I have tried using the MSE OP calculator but it doesn’t really show you anything until you get to OPs of £1K per month or so. No good for me (yet! 😉). 

I think this will be an MSE goal for me over Christmas - to set up a calculator that shows me what each OP does, over the remaining lifetime of the mortgage (assuming it runs to full term - too confusing otherwise!) at current interest rate level. I probably would need to re-set the balance each month at the same time in each month. I can probably work it out if I am not achingly tired and can give myself some time. 

KK

LadyWithAPlan

KajiKita said:

Thanks LWaP 😊
I have tried using the MSE OP calculator but it doesn’t really show you anything until you get to OPs of £1K per month or so. No good for me (yet! 😉). 

I think this will be an MSE goal for me over Christmas - to set up a calculator that shows me what each OP does, over the remaining lifetime of the mortgage (assuming it runs to full term - too confusing otherwise!) at current interest rate level. I probably would need to re-set the balance each month at the same time in each month. I can probably work it out if I am not achingly tired and can give myself some time. 

KK

Early Xmas gift for you ......I finally found this brilliant spreadsheet from here  - this is latest version - happy playing!
It calculates even small eg £10 ops as both one-offs and regular
http://spreadsheet.locostfireblade.co.uk
 
Here is the thread where he talks about it  and mfw ask queries but its a great s/sheet as is 
 https://forums.moneysavingexpert.com/discussion/1157173/my-excel-mortgage-spreadsheet/p1 

Sistergold

Oh my exciting news and congratulations on getting a space for abroad side hustle! 🥳🥳🥳

KajiKita

Thank you!! I will have a proper play with that tomorrow 🤩😊

KK

LadyWithAPlan

Tax  + PAYE Conquerer   
I am VERY impressed with myself and giving myself a celebration  for today ...
 - Have largely all reconciled & finished my tax returns (self empl and Ltd co as well )    - did some whilst away so wasnt too bad. 
AND I figured out how to set up and use work the Basic tools HMRC for Paye and updated/added, even  filed and paid the paye side. Go me!
And I got to grips with much of the invoice issues ... so much owed...
Plus I have realised my one accting software also has the tools for free for me to file online my ltd company accts as well if I wanted to..

I was stressing myself out as this is a big tax job this year as a split SE/ltd company year and I dont want to be harassing my accountant in the chaos of Jan. I also had to see where my invoices were at etc. I was also stressed about not knowing how to set up the paye as my acct software got the maths wrong! The support took months to get back and were wrong....
So now I feel I am winning  

Good news is seeing my directors pensions contributions  as an expense of my business pre tax -  My tax payment the last 3 years have been ouchy in terms of class 4 contributions etc even with me adding to my pensions. 
I may take more dividends yet - I did take the standard tax free £2k divi  in time - only £1k limit this year 23/24 but  I have a house to buy next year so I will chat to the acct on dividends.

Invoices are however still  show a lot owing now I am up to date  - a big discussion this week ... i can now send proper statements on chasing..

NSD 6/13 - apart from PAYE but I am not counting that!
I didnt pop out to shop, walk or gym. It was drizzling and I knew if I went out i'd find it v hard to come back and settle to do all my tax stuff and reconciliations - so no exercise but it was a good decision I sat down and worked...
BF new Phone - I have looked at options to upgrade and Music Mgapie is cheapest option and have a 10% student disc .. my current phone though now was worth £345 buying wise  just before I went to States and now says £285! no difference in usage etc,,, 
I do need to do more xmas shopping but I am enjoying a final NSD 

Minimalism - 27/27 today.. so 247 things this month now 
I am really getting on a roll. I also have started opening a random drawer and looking for rubbish and clutter. So I threw away some OOD  food stuffs at the back of the cupboard, some eyeshadows I was gifted and never used more than once etc. I am very clear I have a lot still in my home but 247 things less  in 13 days is great - I was away for 2 weeks at beg of month) 
The nice thing re the minimalism game is even when I miss a day or dont hit the target eg only doing 10/26 yesterday I can just start again anew the next day on that day of the month - quite looking forward to hitting one again!

Food 
I had some Cov Gdn soup in (was Clubcard reduced)  and made a roast pork with manchego toastie on one slice GF bread (last one) and a bit of chermoula paste and tomatoes..
I also baked my GF DF protein pancake with oats, frozen raspberries and choc vegan protein powder, eggs and some ground almonds, some DF cream  as I found two bags today in my cupboard!. Its a v healthy and tasty treat. I have no bananas or blueberries etc to add nor flaxseed but it was still good.  Ate it all  ...
I prefer strawberry vegan protein but have 2 huge tubs  of choc in  left as I had a subscribe and save... so I  need to get it eaten down before ordering more.
My fridge is looking a bit bare, I like a full  exciting fridge but I can wait til tomorrow or Tuesday to fill. I have some soup and roast pork left, cavolo nero, bacon, eggs and some peppers plus a fair amt in the freezer. When I pop out I spend more and I buy sweets/crisps so ...


YNAB
After a long day on my tax stuff .. I then watched another video on ynab - I have decided I will have a go at it although I know there will be a sharp learning curve.. mainly on a workable set up.
I like many of us here love a spreadsheet and a  financial  system and  as I have decided to properly do a @Secret_Saving_Squirrel and track every penny thru a year I spend after the shock of seeing my Oct and Nov approx spends ... YNAB makes sense. Will be a learning curve but it is already working as  I want to start ynab asap as I  know i am over now on spending again.
-I have this overseas hustle to pay for by tomorrow £400 approx  -
- the PAYE was also more than I expected  but I wanted to get it paid off immediately which I did  - I had a pot to cover but less than what it was.
- and what with xmas I am going to have really raid other pots any way.

So that means again my cash/bank  float is down and I will have to transfer monies across from various pots to ensure I can cover rent this week if I don't get paid on time .. I also dont want to allow the cc to go up cos of xmas..
I could choose to pull out the trip next year but I wont - i do need to ensure I can make money on the trip and use it to get me going ... so will need after xmas to think on sales, merchandise etc etc  - I normally have a s/sheet for such but I may try a ynab category instead.

KajiKita

Well done on the tax and PAYE thing. All that is one of the main reasons I have never gone freelance! 😳 You sound much clearer on the priorities and good luck with the invoice chasing!!! 😉
Not nagging, curiosity: I have lost track of where the transcription task sits in terms of priority for further income generation? (Do I stop doing accountability on this now you have the new project? 😉😂)
Excellent progress on the decluttering. I have got a bit stuck and I quite like the idea of not ‘doing’ a whole drawer or cupboard but looking for X number of items which leads you to pick out the most obvious unneeded or ‘junk’ items and thin what it is you are left with to make ‘decisions’ about. Might try that in my office filing drawers ….. 🤔

KK

LadyWithAPlan

KajiKita said:

Well done on the tax and PAYE thing. All that is one of the main reasons I have never gone freelance! 😳 You sound much clearer on the priorities and good luck with the invoice chasing!!! 😉
Not nagging, curiosity: I have lost track of where the transcription task sits in terms of priority for further income generation? (Do I stop doing accountability on this now you have the new project? 😉😂)
Excellent progress on the decluttering. I have got a bit stuck and I quite like the idea of not ‘doing’ a whole drawer or cupboard but looking for X number of items which leads you to pick out the most obvious unneeded or ‘junk’ items and thin what it is you are left with to make ‘decisions’ about. Might try that in my office filing drawers ….. 🤔

KK

No please keep me accountable on the programme .. it is unlikely to happen before Xmas unless I chose to spend time on it but its important as It is completely written then lost  it when I threw coffee over my macbook twice in 10 mins  - I have the audio transcripts to then flip back into written form and then its just website /mkting but I already did so many 100's of hours of doing it already.. With the summer 24 trip its actually even more relevant so.

Walking to a drawer to find 1 or 2 (or more depending on the day of the month) bits of junk or just rubbish is an easy in on the decluttering. In the early days of the month its easy as paper mounts up especially in the filing drawers! Doing it daily but not stressing when you miss a day and going to number of items per day of the month eg 20th of month is 20 items is my own amendment to the game  but it takes guilt and stress away (when I miss the day or the full target) and just says start again today and no worries about where I got to.
It does though slowly form a habit of looking for things to declutter every day which is why after a few months of doing the minimalist game  I am finally picking up the odd pair of shoes or a gifted to me top and thinking I will never wear this so now what... or looking in a bathroom cabinet or makeup drawer to say what can I threw, is there junk here etc etc. The flat still feels too full but it is looking and def feeling  clearer bit by bit as I know some of the drawers are emptying etc - 247 items in 2 weeks is actually a big number. 28 to go today

I woke up feeling great today as I had eaten the paye frog Plus 90% of accts x 2!
Have a great week all.

Voluntary spending £ £1317.35+ £393 = £1710.35 Nov
Paid £393 out on fee and will be more Xmas BF shopping this eve...

beanielou

That is a lot of decluttering! 

LadyWithAPlan

@beanielou
sometimes the 27 items include single receipts, or entire files Its good to track a positive habit and make it a game it works for my head anyway 

28/28 
On 10/28 things today as 28th  so far but  determined to finish strong .. on this  minimalism game..
EDIT 28/28 TOTAL 275 things/papers/jars, makeup, old beauty stuff .. GONE! 

did my normal let’s get to the full quota dash before bed ..
I  spied some more paperwork ! And OOD stuff in fridge, also  pulled out some stationery bits that were in a bottom shelf of a bedroom wooden tall cupboard- I now have. Study so emptied it but yet to sort out a stationery area 
also found lots of old promo material - can’t see why I need them but loads of large A5 printed postcards - havent decluttered yet but I see them! 

Voluntary Spending   £1887.67 Nov - wow thats a huge amt if on my savings ... and I think I am frugal!! 

This tracking everything is showing me a lot .. It does mean I could afford a big mortgage payment if I stopped with the spending already 

Xmas gifts £116.94 + £7.40 

Plus an expensive but bf usb storage deal on a computer thing I need as cant find mine £37.98  - think I have lost it - will count as voluntary though .. I could have got a bigger one or a slower one ... but all part of the great tracking 

A work related dd I could cut ..£15  but I used to use the org a lot pre covid ... so need to decide - its quarterly 
 (Plus the £393 already mentioned earlier today ..)

I do have a xmas pot but had drained it lower this year and due to slow invoices hadnt quite put back in as much as I had hoped. So some of this is coming out of other savings or this months invoice..

Dinners - I was hungry today and couldn’t  stop eating for some reason.. no sweets or crisps in house so 
At least I am saving on food - wfh today then bit of xmas online etc.. so no grocry shop.
I am eating out of corners of my kitchen cupboards though ...eg the tuna salad bean thing I bought as a trial in Mr Li - not bad, made some GF pancakes  with frozen raspberries, made a bacon sarnie with the one GF roll in freezer, had the half Cov garden soup with what was left of the roast pork joint (great value)  and fried cavolo nero, an orange, a sad apple...
I was v hungry today - i definitely  need more greens in - if i can get up early and get to gym I will get food as Mr L is next door.