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

TallGirl

Hi @LadyWithAPlan I do hope you are ok hopefully you are just off working somewhere abroad staying in a friends fab house lol. 

LadyWithAPlan

partial EOM report July  - sat in drafts for ages... been a busy few weeks  looking after people/animals etc

July Grocery target was £160 + £30 bulk - blown
Actually spent  £375.52 (inc abroad) plus £36.22 bulk (coffee)
Reporting in - Grocery budget blown - I have  a family member here this week - although she did arrive with foods but I think I have used it as an excuse to fill my freezer and fridge  plus some abroad food 
£200.26 groc +accidental HelFresh £28.98 + junk £30.88 (crisp/sweets)
Plus £14.48 airplane snacks and £51.57 abroad subs + £49.35 abroad meals.

Planning to get back on track and eat less in August!  I do also have a full freezer I will eat out of,.

£200 Grocery plus £30 bulk  August goal

4.5 weeks in August so 

LadyWithAPlan

Queen_of_the_Hive said:

Morning @LadyWithAPlan,

I am sooo behind on diaries, hope life is treating you well

In your search area have you looked around SE London on the Overground route up to Crystal Palace. Plenty of period places, lovely green parks etc. May fit into your budget? Sadly my budget was most definately not "London prices" so I had no choice to move but would like to go back if circumstances changed.

I will have a look re Crystal Palace.. I am looking more North London as its nearer my family but I am aware South is about £75k cheaper than the North London areas I am looking at  - I definitely would prefer a tube line though to a train... Love the overground but I am thinking late night getting home.


I have the last few days been very dizzy/faint/nausea so been a bit of a struggle as I have to keep sitting down first things in morning to stop fainting (I always eat loads so not sure what it is hopefully a bug that will pass as I am also hot/cold and not sleeping well) Difficult when you have a menagerie to look after..

@TallGirl I am indeed back to playing Ms Doolittle, looking after many horses, dogs, cats and this year rabbits for a relative. The fish have all died (before I got here) and the Bitey Dog as I christened him 2 years ago  has been put into kennels as not only has he started randomly nipping people but also he non stop barks...life is too short to deal with that.

@KajiKita@WelshmansDaughter apologies life just got very rushed - from one thing to another and tried to do normal work levels around new responsibilities.

Another hats off to parents .. how parents (even harder single parents (!) ) deal with all the taxi driver/guide/chef to kids whilst also making money and working .. its a miracle..
I am now surrounded by lots of animals and no kids... slightly easier apart from the stubborn pony (of 5 horses)  who chooses when he wants to move whilst needing special Veteran feed at least 2 x day, the one dog (of 4) that always wakes me up at 5am to go to the toilet and the ageing cat who has having been v ill and recovered now decides he is king so  insists on home cooked food and hanging at the front door so the dogs fall over him on their way out. The larger horses are happily in their fields as the weather has been ok - as they also can be obstinate about leaving the stables and want to party in the barn...

My 3 year anniversary of this diary was  the 11th Aug  - 3 year look back to come
so I will do an annual update  later  - where I have to acknowledge the lack of progress in some areas (still loads unpaid invoices and home buying - however I am definitely more on the stats since YNAB start end Nov - I look at my NAV each month (I also have my 2 SIPPs off budget as well so I can see the big picture each month.
MY NAV is nearly back to March levels due to me having to pull money out savings and the up/down behaviour of the mkts.

@Suffolk_lass ah yes it was you on the letting the supermarket store your stuff
I am feeling like that about my toiletries - since I put them all together from the various hiding places and then laid them in clearly visible  bins - body, hair, face stuff .. I can see the huge amounts of stuff so I am able to easily ignore offers, even B**ts  and my £54 points at present there - I am only buying potions/lotions when I have ran out of all ..  serums, face creams, I have  a lot of unopened or partially used so..  I always tend to buy my new fav creams but pointless to let other half used ones expire 
My makeup I have diminished by a third at least and more to get rid of... I tend to only wear eye shadow in a certain shade variance so I am slowly getting rid of the rest.
My Death cleaning stalled as I am not at home but I have bought with me loads paperwork to sort /through/file so..

YNAB/Insurance
- had some decent payments this month and more to come so started refilling my true expenses pots again - hate it when I have to drain them due to unpaid invoices.

I have been saving for annual  contents insurance  -  my renewal came in at £222 (from £130 last) and for some reason it was on auto-renew so had to get that credited back.
I got the insurance having shopped around for £152 plus Cashback £33 I am hoping as well. 

debtfreewannabe321

Wow super busy! The animals sound like hard work and very hands on.

I've started using YNAB but still getting used to it. Need to pay for that next month and was disappointed to see they never seem to do discount codes. 

Will look forward to your yearly update!

LadyWithAPlan

debtfreewannabe321 said:

Wow super busy! The animals sound like hard work and very hands on.

I've started using YNAB but still getting used to it. Need to pay for that next month and was disappointed to see they never seem to do discount codes. 

Will look forward to your yearly update!

YNAB def takes time but so worth it - makes paycheques and money coming in anyhow - from cashback to goodwill  - always fun ... - I listened to all of Nick True's YNAB videos on YouTube and it got me to speed quickly - also any confusion send screenshots to the support they v good...  -  i can give you my YNAB referrer code if you want and we both get a month free if you sign up and use that if you want? I will dm you it -feel free to ignore    

Yes the animals are a lot ... there is the 2 .5 hours each morning  including cooking for them and then the 2 hours each eve routine ...especially as I have to get one horse in for an extra feed and whilst he runs to me ,.,, then  he takes forever to eat  and refuses to go back out without a lot of attention and horselyx .....

LadyWithAPlan

THREE YEAR DIARY ROUNDUP 
I found last years round up so have added onto it. This way I can see where i have won/lost /not taken action/half assed etc

House deposit /all savings amount is not exact as i have it in YNAB  as £116,526 but  I have added £1k as I have a forex cheque that takes it approx up by £1k to £117,653. (Will edit when clears)

PLUS I have some serious outstanding invoices ... as in thousands and thousands   due but not added in total - that I am now charging monthly interest on
Plus I have a large semi-annual interest payment due in a week but have excluded that as well.
So only up £7980.76      this year on savings alone - not great  but I am owed a LOT  

Aug 2024 
House Deposit     2024    £117,526.93 (£1k added)  2023   £108,546.17   vs       Aug 21  £67,711.70       + £40,834.47 in 2yrs    + £48,815.23 in 3 yrs
SIPP                      2024    £57,849.12                         2023   £45,712.90     vs       Aug 21  £26,731.30       + 18,981.6  in 2 yrs      + £31,117.82 in 3 yrs

SIPP/FIRE
SIPP  -  up £12,136.22 YOY  -  I added in £6,651.26 this 12 month period (as company director  and £5484.96 on market gains (charges included)
V lean fire (too lean)  19.8%             (exc hse dep savings)    inc hse dep savings    58.46% 
£24k per annum FIRE  9.64% (exc hse dep savings)               inc hse dep savings  29.23% 

Some 2023/4 Wins
Happy and healthy as are all my family. Friends all well bar two awfully with cancer but looks like  both their chemo/surgery  etc has worked   
H2BUY ISA now fully funded - £200 per month for years!!  SLOW AND STEADY won this race £12k added in - current  £12,621.15  with interest
SIPPs  now at £57.8k  (finally got over £50k) and this is despite recent share collapse.
Set up own company so can pay sipp contributions directly
Grocery Challenge on MSE has really helped (I note I dont do it when I travel)

MB wins over the last 12 months £4099  - good when I am gubbed by lots and had 2 turnaround drop months..
New software for doing extra places etc is making me money 

Finally started YNAB end Nov and LOVING IT -
YNAB really helped when didnt get paid properly for months whilst I was travelling - however managed ok
CURRENT YNAB Age of Money - 13 days - I did get it up to 38 but invoices had hiccup in being paid 
Did lots of fun travelling - most paid for as work from Europe to the Americas.
Had some v successful  and wonderful side hustle events and award nominated

Loved living in my fabulous London home and saw some great gigs, theatre and art and spent time with fabulous friends.
Got over being dumped by text last summer My current paramour  MWAP is quite lovely
Comp wins have not been amazing as not done much to win but still have won maybe £1.5-2k worth ...£150  + a £50 restaurant voucher, a few event nights out,  a mobile phone, festival tix VIP 2 x £250,  exhib tix, and just won  yesterday another immersive dining  event experience. Did win £600  festival tix as well  but was a day late in seeing email...
Loved my face mask!

Did my garment construction class (and some music prod classes) which I loved
My student discount card rocks 
My flat is looking much clearer, loving the new desk /office set up, my new hall cupboard shelving and GAOSDC (Death cleaning) really helping
Made some decent money whilst not getting more work - I will be filing less income 23/24  though which is annoying 
House hunted quite a lot so think  I have found area I want to buy in
Found one home I loved (with JKW) and had nightmare EA/got outbid  but I could  finally  see why it was worth working to pay for a home vs rent
Sold my first (and only) Vinted for £5 but still this is good

AVERAGE SPENDS per month - I plan to up /revise my monthly targets after seeing this
My YNAB data started end Nov so these are a few average monthly spends  rather than yearly - love the ynab reporting! 
Food - include grocery, bulk, snacks out (not bday meals)  and junk £243.20 per month (x 12 is £2918.40)
Utilities   £97.64  per month  (x 12 is  £1171.68)   
Going out £227.70 per month (x 12 £2732.40)   I need to look at this for 24/25 - includes coffees, entertainment, drinks out,
Toiletries/beauty/fitness/dentist/hair  -147.68 per month (x 12 £1772.16) - OUCH! This includes my recent EMS but not my annual gym as that is Sept. 
Clothing  £39.47 per month - largely vintage  (x 12 £473.64) I am ok with this 
Gifts/bdays   £124.39 pm (data is missing 3 main bdays and only part last Xmas budget so this is low) 

REFLECTIONS - SOME TO DO BETTERS or new focusin 24/25
Pb's only won £200 in last 12 months (exc Aug 23 £100 win) it is there as I earn more than £1k on my savings.. but now they opened more isa choices as could only have one cash isa before I will invest more around
The new CV /contract get on this and find..
Start and complete  my new software course and use as 
a) Use within work to get new contract
b) The programme - either kill it or do it - plan is to use my new software course to build a test website
c) build an app for my side hustle 
d) possibly build software re my work to license out 
Being a bit more on top with my paperwork - when I travel I get behind and I dont catch up
Paperwork issues also meant foreign taxes were paid - get clarity and do it  way ahead of time
Getting leaner  and more exercise
More sleep required
Not upped my earnings to cover my increased rent hence saving rate lowered
YNAB - get 1 month ahead on my essential bills, then 3 months ahead given up/down nature of invoice payments.
LIVE like a YNABer - so check money in my YNAB  pots before spending on non essentials
My YNAB targets are far more than my income each month - something has to shift
Buy my home by July 2025.
Cut the hari** and junk crisps out my life, health and budget .. remove the junk category £11.24 avg per month.
Get my European passport
Sort some very profitable side hustle moves
Buy a small amount of crypto I can afford to lose to learn about it


Goals set in 2021  - now  for next 12 months (2024 notes/additions in bold)
Goal 1: Build House deposit further  to £150k in 8 months  GET SAVINGS TO £170K IN NEXT 12 MONTHS - CURRENT £117K  FROM NEW INCOME/ but DUE loads of  open invoices - get paid in full inc interest by Sept

Goal 2: Buy somewhere nice and  affordable in London  with a balcony, terrace or garden  in 2024/5 - prob £450k - if I buy more then I lose my £3k uplift from my H2B - not included in figures BUY A FABULOUS LIGHT FILLED, CLOSED TO A London TUBE, WITH A PRIVATE GARDEN, 2 BED FLAT  IDEALLY  A GROUND FLOOR PERIOD CONVERSION BY JULY 2025 AND AFFORDABLE Monthly FOR ME 

Goal 2.1 Save in YNAB the difference between my rent and what wll be my house mortgage payments - think about £800 extra pm - and lock away

Goal 3: Once I am in the flat then save 15% gross income to SIPP and then all else goes to O/P  REACH £73K IN SIPP BY AUG 2025

Goal 4: 2035 is the goal date for MFW - still  but that means a 10 year mortgage so income has to go up GET EXTRA CONTRACT, GET PAID UP TO DATE

Goal 5: Look at income each month and make enough to save £3750 a month - this requires a new contract or lots extra side hustles which could be doable but I have been lazy and unfocused and just coasting. Decide on my plan of action and commit. NOT EVEN CLOSE  - still coasting.  Get new contract - no action taken on this, do my software course, get more money on my side hustle


Goal 6 - daily posting here on spending/saving and TT's. - I re-read some of Tilly's diary yesterday  (2023 note) and her  daily check-ins she definitely said helped her focus. i HAVE POSTED MORE THIS YEAR AND YNAB HELPED my money focus and tracking - keep on it

Suffolk_lass

Excellent update LaPlan. I am also drifting, but given I am retired and no longer have aspirations for more property or other debt-inducing spend, that is OK for me but not for you! You are older than when I started to clear our debts and grow wealth, and your income is greater, but is your coasting complacency? Fear of buying? Even smugness? (One of my traits that is most unattractive is the arrogance that goes with knowing thinking I am right all the time - my "I've got this!" smug filter)

What is unclear is whether any of your current contracts are with the non-payers. If they are, you should be considering a further penalty clause beyond the interest - along the lines of "no pay, no work!" in my view. 

Additional contracts to phase out the late or non-payers. You used to say more but since YNAB you don't differentiate. 

• Are you willing to say more? 
• How long-standing are these unpaid invoices? 
• are they an indicator of a company struggling? and so on. 

When one of DH's agents went bust he was stranded working and renting in Stuttgart with three months unpaid. Our (my) credit cards paid our way forward but it took about three years to recover from this. You seriously don't need anything like this to impact your plans. 

Think of me as that critical friend who tests you about what you say. Not critical as in rubbishing, just making you think it through a bit more. Best wishes

TallGirl

Good to see an update even if us long term followers know that it is the unpaid invoices, I need a second job and I really want to buy but I have such cheap rent that is being some of the drifting (sorry just being a critical friend as well). I think that is absolutely fine as long as you know the deadline so to speak for when you can get a mortgage and still clear it within the 10 years you have set yourself. 

You sound like you have the potential to earn serious money but in a small field so it might be harder to be tough on slow payers. I would seriously think about restricting the work you do for them until they are paid up.You should not be their cashflow or push yourself out there and look for a new contract. Do it now before you have done course xyz see what happens what have you got to lose. 

If not then sit back, continue as you are, have a fab lifestyle (kept in check by YNAB) in central capital and be happy as you have a lot to be happy about and home ownership is not the end all and be all. 

Take care from another critical friend 

LadyWithAPlan

@Suffolk_lass @TallGirl tx for popping by and good to have some external critical thinking /reminders

Ouch SL on losing all that cash, glad you got through it. 

All outstanding invoices are now paid  apart from with 2 companies that I still work for. 

One of the late payers is now a small amount behind - £1k ..  but very long term friend I have worked with for 18 years and I know his business is struggling w cashflow but the company is on the mend and so I am not that worried

The second big late payer is thus the issue - its a cumulative thing, still paying monthly amounts to me - consistently throwing me lump sums but they  are often under the monthly invoices (day rate based)  so the outstanding balance grows, it started when we opened a second firm.
 3 things have stopped me from refusing all future work - I have been promised some shares in the company (confirmed again), I have a high paying interest on capital investment  comprising part of my deposit savings (that is paid always on time ) and  importantly I am finishing work for a new investment restructure to be finalised  at which point I have been promised immediate up to date payment on all outstanding when this cash comes in. This  investment change structure has been delayed due to the below  issue ... I do believe the MD  - we been working together for nearly 5 years and I trust him - 
However there is a big risk here - I can see it - and my friends, mum and MWAP and of course you are pointing it out. 

The positive news is someone was bought in by a new company  to track the workflow/finances between them and us etc  and to say she has been clueless and so wrong is an understatement. Think she is doing that tiktok girl maths ..  and  writing as a woman who is brilliant at maths she is giving us all a bad name.

These last few weeks have been me trying to get any data from her and digging in  what I can get (I had no plans to be a forensic acctant but thats what I have had to be)  she has turned out to be clueless on very basic financial understandings..  she has also been quite rude and defensive to the MD  I work with  - he is now getting exasperated and it was very clear on a group call for clarity  with the MD online just how completely not capable she is at this task she is being paid a lot for. 

I am rarely shocked at someone being that incompetent - I had to chant for an hour before the zoom call to try to keep my spirits high and my sarcasm levels low given the data I had already seen - but she kept clearly showing incompetence/lack of understanding at super important levels  - I was stunned to silence a few times   and  I have saved the MD a HUGE amount of money  on the new business structure once I have started digging. Once this gets sorted (we are working hard) then my due cash is due to arrive.
 
Her absolute incompetence  is making me look amazing ,,, It has really made me realise  how capable I am in this field, I am exact and a bit perfectionist and can visualise the wood and  see the trees at the same time which you need in this work. My maths skills have always been very next level  and again I am reminded of this. - it isnt my dream job but yes I can make a lot  day rate wise and could make far more once I choose to spend the time to go looking.

I am thinking of building some software for the business in my own time to maybe then license it out  .. if I got some basic software skills I could as have the rest of the knowledge and excel understanding ..

@Suffolk_lass I think its less smug -(i may be smugly wrong)  just I am cruising  and living la vida loca/la vie en rose/perfect day (pick a tune)  - I keep being so busy and not prioritising my big dreams/goals.. the cheap rent and large savings also gives me a comfort factor.. However YNAB is clearly pointing out the lack of savings progress. My dream career up to Covid has been put largely in abeyance and  I must question as to  why am i spending so much time doing a job that is not my dream job but not getting all the physical rewards in my hands..

@TallGirl I will update my CV this weekend and as you say not wait to do the courses. As you say home ownership is not everything but I have set up this very diary for it and keep wavering...

 Big question for me is also can I make the money I need with my dream job to get  a mortgage /house paid off - I currently don't believe I can though it IS  possible  - however I am not doing the work I need to get there and no guarantees  right now - I am just allowing the environment  (and what I dont say NO to) to dictate to me my time schedules and what I do. 
The animals, family member who stayed, MWAP etc etc all have taken more time than I expected this year and I keep saying I need to reset my goals and action them but then get busy - that is on me trying to do everything..

This 3 year update is great to see where I am clearly not following on my big goals though I am having a wonderful life. I will relook at my stated 2024 Goals this weekend and start  deliberately choosing my moves  forward.. so I am  branding this weekend the

 

'LaPlan Weekend of Fresh Start'  (4.5 months til end 2024 Goal Focus)

...................................................................
Good thing about being out of London (much as I miss it/get bored)  is no spending 

I have had 6 NSD  !    Thurs 8th/Fri/Sat/ Tues/Wed/Thurs 16th !! 
Sunday I went for a swim for free as friend had a free pass but then shopped at Waitrose.
Monday I saw mum and used my won restaurant gift card to pay for lunch but travel in/out cost about £20. Didnt buy anything else and we had a lovely walk.
Today (Fri)   I am aiming to do some food shopping but am being driven there later once finish work but no plans for the weekend as I am still Ms Dootlittle (as in  Dr and animals not Eliza) all weekend

I have cancelled an old (7 year) prof subscription I pay quarterly but I really have not used it since Covid so thats £15 a quarter I am better off, I also cancelled Amazon Prime last month as well...student cost but still far too easy to buy things.. so thats £10 a month I am saving...  small but ...all helps but not as much as income needing to go up

 Vinted bank not yet set up so my £5 sale can be brought home - again this is small fry versus .... the income equation

However real focus now has to be on increasing my received and new forms of income as above - I read the YNAB REDDIT THREAD a lot where many people rave about their (understandable) love for the software but many people on there  say 'YNAB made me realise I needed to earn more given my goals/targets/dreams' and that is where I am at. I have loads of true expenses funds targets  from my next Macbook Pro  to annual subs ... but if I really want to live with a  budget based on having a mortgage - as in putting aside the difference - at least £750pm/£800  in cost more per month, then I currently can not  save for long term expenses as well as this extra monthly target  especially since my rent went up by £500 - so I want to/need to bring in more money if I want to buy a home and be able to save for retirement and LT expenses

SAVING £250
Concerned re my lack of  YNAB saving progress I have just moved £250 into my Cov Regular saver   at 7% - i had stopped the last couple months and allowed my excess cash to be spent or held on to - this cash came from me  having cancelled my EMS sessions as I am away and moving some pots around. 

KajiKita

Wowsers …. That’s a lot to read and take in …. I don’t think I quite followed all of it, but two things stood out to me.

You seem to be distracting yourself from your key goals. It would be good to know why that is. It comes across as fear / lack of confidence that you can DO the thing. After reading all of the above, I think this unlikely so there is something else going on …. Might even be worth exploring life coaching / counselling to unpick this? 

Secondly, you kick-!!!!!!-rock!  🤩❤️👏🎉🥳 I loved the description of how you dealt with and understood the incompetent expert and how you balanced supporting that MD with allowing him to see how out of her depth she was …. Bravo. I now understand why you sustain that risk, but also think that MD is flipping lucky to have you around. Don’t forget that 😉

I really admire how analytical you are about your goals, how to achieve them and possible blockers. I wish I could do this - I just never seem to have the thinking time.

Go you and keep powering on ❤️ 😊

KK