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

LadyWithAPlan

Hse deposit savings + £260.53      up as £50 PB  Jan win
V pleased  as I was definitely under average last year - PB prize money was a low £275 in 2023 on an avg of £15k .
Now got £16,250 in PB. 
I am way over the £1k interest income level hence my PB's and having my cash ISA limited to £200 pm in my h2b Isa so I have my hse deposit in various vehicles from PB's to savings to an investment and an S&S ISA.


SIPP dividends  £108.98  -  Main Van SIPP finally over £45k! new high there  (Have a smaller Sipp at nearly 6k as well) 
Even though I have mainly accumulating  (not distributing)  funds in my Van SIPP I did have £108.98  paid in as dividends this month (its one of the big 4 quarters)  so I dont count the SIPP/S&S ISA til end of month ever to smooth out vagaries but  nice to hit this £45k milestone

Lunch
YS heated smoked mackerel with roasted sweet potatoes, pickled pink onion (yes you read that right -  Mr Lid was selling them) picked in HM cider vinegar( note HM vinegar was not made by me , moroccan houmous (I will have a go and make myself cos then I appreciate the oil going in) and a huge half plate of fried in coconut oil kale and organic spinach with walnut halves and a satsuma. 

When I am at home I have got into the habit of ensuring a massive plate of dark greens  (broccoli, kale, spinach) for myself each day - I am getting thru a pack of kale every 2-3 days. This started when a family member died of diabetes complications and I read about how kale is so great for cleansing the liver. I also notice when I eat more dark greens I crave sweets less.
Having been away so much this last quarter I am sure my nutrition is not as good than when I am at home so I need to look at this, its expensive to eat well when travelling but its a priority this year given I am not eating sweets.

Still havent made the bread in the new breadmaker as forgot to buy eggs. Now on my alex* shopping list I am trialling.

SPENDING The £24.98 (They charged extra for 2024 meals..) has gone out my CC for HellFresh - it comes with a large free bar of Tony Chocolate I will be gifting.. 
I can see I have £34.48 credit so I will try to spend that in a large order in a couple weeks.

NSD 1/13 - not spent anything today 
MG -7     Total to Jan 2 did 6 things yest ,
 Today 3 items - one only so far 

LadyWithAPlan

MG January total 10 up to 3/1
4th Jan - 6 so far 
Just posted via local what’s app group 3 weird tasting plant  yogurts and some HF breadcrumbs- gone in 3 mins - I could manage the plant desserts but as I am off dessert and sugary stuff I I am choosing to pass on - was unwanted Xmas food stuffs 
EDIT my neighbour has now said she has some bacon from Xmas so I am getting that as a swap! Result! 
Threw a  about ready to crack in half bowl
 decluttered 2 scarves /pashminas - had 2 new ones for Xmas so 2 are going to CS tomorrow. Not a big fan of the washed out colour so

3 things yesterday decluttered

My home is definitely tidier after months of this decluttering game.  i am eyeing up the 2 piles of shoes I dragged out from a few places to sort for what to sell on Vinted - I am tripping over them deliberately to make me look at them 
A lot of low lying easy to declutter stuff is gone as this month 4 of MG but now it’s the bigger decisions - the shoes I never wore, the dresses I meant to sell as never wore them, the ‘in case’ stuff, the 2 lamps I need to fix, the lamp that has a difficult bulb (will sort that on Amazon I think ) the random I will deal with that , the books I mean to sell but never manage a whole box full 
 

Years ago when I did a big move after a 15 year stay in a flat I actually gave my excess hundreds of books to the local
library - I never borrowed them back out again so maybe I will do the same 
I do keep my music books and sheet music though - what for I am unsure but it’s all catalogued

SIPP thoughts v home buying  and current spending
Saw  SuperSecretSquirrel very impressive 23 v 22 round up on here  - he has a paid for home and his cash/isas/pensions all going up wonderfully each year. It reminded me of his sage advice to not over buy a home due to how the bigger the mortgage the more it impacts on my FIRE and sipp saving abilities. He also suggested before  I do buy, to do a s/sheet of varying mortgage sizes and their impact on how much I can then save into my sipps.

I am also buying in London so the cost is probably 3x? 4x?  more. Not owning a home is the major flaw in my long term LaPlan  planning but of course I could always buy something outside London in cash in a couple years the way I am going. 
I am not stressing too much on buying with my current work uncertainty and as due to getting my 12% on a large % of my deposit and my rent is still less per month vs the  actual monthly interest payment portion of a mortgage of the homes I am looking at would be - on borrowing £335k. So even after the tax on my interest income (and can state use of home as well for a portion) I am still quids up - though I am out of the capital growth possibility of a mortgage and of course the peace of owning my own home plus use if himne of a largely monthly amount.
Currently looks about 4.34% is best rate from a quick google on mse. So each £50k extra I borrow is £2,170 per year to service that debt so £180pm extra and a mortgage would be just over £2k per month plus CT, bills, upkeep and charges. Feels a stretch on current income and I think rates will continue to stabilise

Just playing on the Vanguard pension calculator it does also show how my current spending on non essential things does impact my future. My voluntary spending of £4822 over the last quarter does not seem much in the scheme of things as a solo single London lady who travels and has a lovely life .. however an extra £4800 a year into a sipp  currently doubles what I can draw down from my SIPP in later years (!)  and that £4822 was what I spent voluntarily Oct-Dec so the full year picture is probably at least £15k if not £18k. If I added an extra £1k per month (so 12k of my voluntary spending) into a sipp that would triple my sipp value in 13 years (SP age) from current projected add nothing more £70k to £235k excluding the 25% tax free drawdown. Plus I get huge tax advantages on the SIPP thru my ltd company.
This £1k extra a month stats  is a bit of a shocker -   however one does have to actually live and have fun.. 

I could choose to drag 12 months of data into YNAB and categorize to get clearer spends for 2023  but I think the 3 month tracking I did and now YNAB ongoing clarity means its a look back exercise I dont need to do. I can see the lessons - now about actions.


2024 no spend (beyond £450k property..) ha!
I can see lots of threads on non spend Jan and 2024 - however for me 2024 for me is all about spending voluntarily in a way that gives me great value and also allows me future freedom and peace.
I really am learning to look at things I buy as 'does this make my life feel more free, more creative, beautiful, healthier, more peaceful, more fabulous, more 'rich''. Not 'happy' as that can be a short term rush only yet in the long term not move my life forward.
So things like the Sm*g expresso machine I lust after  may still enter my life just not yet  
What is the value  to me of saving to buy a flat with outdoor space ideally a garden  vs the loveliness  of top brand items or (in)expensive travel or expensive London night outs.

Plus whilst I declutter it makes me think of how much cash over the year has been spent on stuff that now just feels too much. Luckily I have a fairly frugal life (if one can say that spending nearly £5k last quarter on fun so as I type I realise I have conned myself that way) but I do have amazing travel experiences  rather than loads of designer clothes - those have been bought already or from a CS. However now is the time to properly save as 2024 is the year of buying...
Even the weekly coffee at college - I will take a flask.

So I will be spending serious money this year - like hopefully £450k on a home so the rest of the spending will be chilling - I dont need any more clothes, some boots/clothes  will be repaired not replaced,  I need to not overspend in CS as well as that can add up. I have loads of cosmetics and toiletries so I will  be working through everything first - a M*c mascara is essential but I have stuff to use first - I do need a night cream (got 4 day creams in for some reason)  but I have some oils to finish first. 
I will curtail the leisure travel - maybe just do the one annual planned cheap trip for fun/work  this year - which will cost about £800 for 2 week and tax deductible as  networking and work thing where lots of friends are.
Plus I may have some more travel for work but again it has to make sense money wise to  travel vs not be here. Food costs more where I travel and I eat less well.

I currently am on dry Jan and had no sweets/cakes/biscuits/crisps this year (4 days in so less drinking means less stodge the next day, cheaper nights out and no cabs... I spent £60+ NYE and it was as cheap as I could make it pub afternoon out.  I dont regret it but those nights need to be curtailed to a couple a month..

My income has to go up as well this year as it all spends/saves  - 
A huge target would be £1k a month into SIPP, £3k a month into hse savings.. except those  savings figures are impossible on current earnings and living costs - I could get a bit cheaper rental here if I had someone live with me but not ready for that.
My deposit went up £11,300 in 2023 but thats not good enough - largely due to my voluntary spending ....
so 2024 is the year of YNAB and getting absolute clarity on my chosen spends.

Jan voluntary spending  £24.98 (hellfresh) 
There are a couple subscriptions I can also look to cut I use for work so I need to have a think..
My 6 month free amazon prime subscription runs out in Feb - then will be 50% off but I am saving on the vitamins subscribe/save but probably not £5 a month saving ... so think need to cancel that once it kicks in




 

LadyWithAPlan

Free money £10 
my airtime rewards £10 I used  didn’t kick in quick enough for last months bill but have for this so I have a mobile bill of £4.43 this month (sim only) - there is another £13.26 to use in airtime for next month and £9.44 pending - neither of which I have not counted or moved yet.
I have thus moved the £15 extra I had in the cellphone pot /category into ‘next months income’ category - as I want to get fully funded 3 months on base expenses 

This £4.43 bill  is much nicer than the £60+ monthly bill I was looking at for a new phone and tariff - now  I am not travelling so much the battery is less of an issue. Last month was mind you over £50 due to States travel for 2 weeks and the £6/day charge.

If work plans and side hustles come off there may be serious travel coming up but I will wait til it all gets confirmed as then the new extra income can be partially used towards a new phone with a brilliant battery. I can then justify it and safely travelling across the planet with a working phone is important.
- Tech on mobile batteries gets better each year and the 15 plus is great for battery. I do have a future tech fund  with £10 in but it needs building up 

Mortgage Pig 
just emptied to find £7 in there in change plus had an extra £5.50 in my purse than I thought (miscounted my cash and often find change I have left on the side ) so £12.50 added just into house  deposit savings 


FOOD
Dinner was Defrosted YS beef mince fried in a chermoula spice,  harissa paste, tomato puree, chicken stock, YS mushrooms and pink onions with brown rice and peas and some HM pickled pink onion and sliced cucumber. My freezer has a lot of YS meat in from Coop shop and HM stock and got HellFrsh arriving Sunday so will aim to make do from fridge /freezer til then.

MG January total 18 up to 4/1
4th Jan - 8 so far  ... extra scarf and getting thru bedroom

NSD 2/13 - Another one today

Just looking at what other college courses I can do (have free ones by me if they below Level 3 diploma)  ... but waiting to see if I  get on the sewing one  first.. no diy ones that take me next step beyond a plastering course - done 2 weeks of it which is probably enough. There are some IT courses I could do might help cv// cyber security etc



Amazon return - one item proving difficult  as size completely wrong than ordered kids v adults etc and ama*zon said to wait for them to get back...6 days later ....

South_coast

LadyWithAPlan said:

Luckily I have a fairly frugal life (if one can say that spending nearly £5k last quarter on fun so as I type I realise I have conned myself that way) 

Well I have been thinking that myself 🤣! You've said a number of times what a frugal life you lead, but you do spend an awful lot of money!

daisy_1571

Awwww, mortgage pig, haven't thought of that term for ages, loved having our mortgage pig  😀 

Daisy xx

PennysIntoPounds

That all sounds positive, a good mix of life and property focus.
In terms of areas, I think be open to everywhere in London, you never know which one property will appear that makes you think 'yep'. Everywhere has good and less good aspects. Areas of East like Whitechapel are great for having the overground option but then overground lines seem to regularly not run on weekends when you want them most. Some areas around there seem super fun but you'd have to consider how much community/people who aren't much younger or more transient you'd have around if you weren't going out so much to pay off mortgage/in older age.
There's lots of lovely architecture in the Finchleys and you can get a nice place for cheaper than just a bit further down the tube line but it gets very suburby very quickly, a lot of places are not that near a tube or shops in which case would it be worth getting a smaller/pricier place with more tube/high street/local pub options.
Then there's South East London which doesn't have tube but has decent train links and good communities and you can get a bigger property with bigger garden and weigh up having a cab fund for nights out if you were saving on deposit/mortgage.
I'd just set my search to min beds and max amount with garden essential in London and go see everything that looks interesting!

Watty1

I like that last suggestion.  Think of the fun you can have exploring areas of London you might not know each weekend, visiting cafe's walking around, checking libraries and so to see if there is a "community" feel.  Looking forward to the search beginnning!

Cheery_Daff

Watty1 said:

I like that last suggestion.  Think of the fun you can have exploring areas of London you might not know each weekend, visiting cafe's walking around, checking libraries and so to see if there is a "community" feel.  Looking forward to the search beginnning!

This is what we did when we were looking (not in London). Interspersed DIY with days out in different areas, popping into cafes and wandering round the streets. Not even going to view specific houses at that point, just getting a feel for the areas. It was lovely, and we discovered plenty of cheerful places we didn't end up living in 😂 And once witnessed an incompetent lunchtime drug deal while we were having a cuppa in a cafe - we didn't have that place high on the list 😂

Watty1

@Cheery_Daff    yes I can see how the drug deal might put one off a place!   When I thought I might have to move out of the south east I started looking at places on line and I would find a house I could afford and then see if the area had cafe's and community centres and a facebook page and so on. I ended up totally falling for a place that had an old converted mill that had become a historic centre and had a workspace where the community ran events (music concerts, plays and even repair workshops).    That village was one of the short dreams that got me through a difficult time, if all fails I can go and live "there"

savingholmes

Good luck LWAP. I think part of the problem is the uncertainty around when invoices will be paid. I have read other's diaries which suggest in that situation you give yourself a fixed month's float (from your current savings) - and then 'pay' yourself on a set day regardless and plan spends accordingly. Then top up the original source of your float from your invoices when they are paid. Obviously keep chasing invoices and seek out alternative income sources as you are already doing.

I know a lot of people here use PADs. I prefer the give every £ a job system - which is very YNAB I think - where I upfront at the start of the pay month decide how much to send to savings. They each go out on different days so if there is an issue I can hold some back - but I've set an intention of how much to save at the start of the month. I'm by no means perfect and I have had a high voluntary spend in the last few months. We need to get to the point where we are telling our money where to go rather than letting systems tell us where it actually went. I pay my extra pension from my gross.

HTH