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

LadyWithAPlan

@SuperSecretSquirrel well done on the transfer and enjoy those platform fee savings   Glad I inspired you to save those ££'s - have you worked out what you will save annually?
Yes do you think Agent Millionaire will come to me first as I am in London?
I have not ever stoozed but who knows what the future will bring

I filed my taxes Monday and also paid in full Monday so my taxes are in a timely fashion. My loved ones also have and paid...

I do know using my CC for Xmas and also my Stateside trip has meant two very high monthly CC bills. I always pay in full but I defnitely somehow spend more, allowing the  ' I wants ' to sneak in - Jan was a new desk that was flatpacked argh, some toiletries/makeup from US..
So I am planning to not using my credit card unless its travel or the 2 dd's on it.

I pulled money from everywhere - my 16 saving pots, £1600 from my MB sink fund (always a joy paying taxes from your sports betting winnings ) , odds here an there from old small bank accounts so I could pay my taxes and also  leave my PB untouched. 

@themadvix they don't charge you as long as you pay by the 31st Jan. Even if your 2 previous payments on acct (Jan and July) come to less than what you actually owe once you have done your taxes - they dont charge interest on the difference (as long as paid by 31st deadline - I have never paid late so not sure what  happens after. I always put money away as I go into my PB's to see if my tax money can win me money . It can be a bit confusing knowing exactly how much  is left for savings  but I aim to do my 22/23 tax records  by the summer even if I don't file them to get a clearer idea. 


@savingholmes tx and  I have restarted the transfer of the one ISA again .....


January roundup   

Hse deposit  £104340.70 (inc 2 S&S Isa's so up and down)
plus h2b excess if we get buy below $£50k...
Finally got over the £103k mark! I will go colour 2 £500 squares

Sales of home stuff £634!!
Ebay sales £384 (- fees and post so clear about £350
Fridge sale £50
Equipment sale £200

Jan MB profit £452.82 - Largely casino as did not do much sport this month 

SIPP  £37,295.57
Really not put much in my SIPP 22/23 - so need to add at least to £40k in next 2 months
Fire not including  house deposit savings.... or when my DB  or SP kicks in
EXC home. Lean FIRE  12.43%
Fire on 16k per year  9.32%
FIRE on 24k pa  6.22%

SuperSecretSquirrel

I had not calculated the annual saving, but now I have 😁 It'll save me about £130 a year in fees, an amount I'm happy to keep hold of 👍

Well done on filing and paying in time. I tend to file months ahead of the deadline just to get it over and done with. It's really easy these days as I don't really have any extra earnings to declare, but I keep on filing in case I find a sudden burst of enthusiasm...

Yes I'm sure agent million will visit you first, but that's OK I'm not in a rush, I can wait a few hours, even a day or two if I must 🤣

Great sales and mb figures too!

savingholmes

Well done on your figures

Cheery_Daff

That's an excellent January round up, well done! Good MB figures there. Agent Million didn't visit me, so perhaps they're visiting you... 

LadyWithAPlan

Well I made the 'mistake' of looking at the frugal challenge thread and all their annual spend targets.
At least I now know why my savings are moving so slowly - and not just cos of waiting to be paid. 

I always do a budget at the beginning of each month on paper  and look at what is hopefully due in  (I am se).. however I have just added the figures into a spreadsheet and made them annual . Ouch - definite life creep going on though I am not sure where I can reduce.
I do have lots of sinking funds I add to - 2 of my banks have loads of these 'pots' so I transfer money over at the beginning of the month and then move it out as I spend.
However I dont usually track how much is left over  at EOM or if I overspend .. so I will start from Feb..

Gifts is a tall amount - but I've a family with kids  (not mine ) and it used to be more spendy and includes me buying dinner for my 2 parents 2 x a year on their bdays and my uncle often I cover as well   so £100-£130 a time  so not excessive..
I no longer buy gifts for friends unless going to a house do.

Some of these costs will be borne partially or fully by my company /self employed expenses so its not all coming out of take home income post tax  but I still have to pay them .. and earn it first...

Figures per month avg: and this is on low spend  and my targets- and includes my monthly saving pots
I live on my own and have still not got this huge mortgage...

Grocery £145/month (as per my Grocery Challenge)
Bulk  £30 pm
Subsistence when away £25 pm     .....                                  Total £200 pm = £2400 pa

Entertainment/Treats/Coffees out/Restaurants   £150pm          £1800 pa
Mobile + Internet                 £45 pm                                     £540 pa

Office costs - subscriptions   £100pm                           £1200  pa
Office costs  £10 pm                                                   £120 pa

Utilities                                                                        £1000 pa
Water                                                                           £100 pa

Cabs/trains/Tube   £100 pm     (mainly wfh)                 £1200 pa 

Insurance - home/travel                                              £100 pa

Odds & ends £20pm                                                        £240 pa           
Home costs and  repairs £20pm                                  £240 pa
Clothing  - new costs +  repairs £40pm                      £480 pa
Toiletries £40pm - I use v gd brands that last              £480 pa
Hair                                                                               £400 pa
Medical /teeth  £20pm                                                   £240 pa
Future tech  £100pm                                                   £1200 pa
Subscription £20pm                                                   £240 pa
Hobby 1 £20pm                                                   £240 pa
Hobby 2 DIY home improvement  £20pm                   £240 pa
Blow money £20 pm                                                £240 pa

Gym                                                                        £540 pa

Xmas spent £1200 last year    inc food/drinks/gifts        £1200     
Gifts  £50 pm                                                          £600
Furniture pot £50pm                                                   £600 pa
Vacation                                                                  £1000 pa


Total £16,640 pa  - not including rent or council tax
So I do think I am frugal and given I live alone and in London - my spend is low compared to others. However I am spending at least £18k a year I think w/out rent/CT... so £1500 per month

My entertainment is often way more  than £150 per month. One can blow £70 on a night out even without the cab home or a restaurant!  The dry  January/ spring will also help with my house deposit budget,
I rarely eat out  or get TO as I am GF DF so its a pain. I live on my own so  I do like to go out at least once a week. £150 pm is only £38 per week or so and I often like to go to art exhibitions , theatre or gigs that often are £25 + easily a ticket...Note win more event tickets,,

I no longer have/need a car nor do I have a TV, tv license, NETFLIX, SKY or anything similar.
My gym is important to me for Mental and physical health and the annual fee saves me 2 months - over £100

Sometimes travel  is more than £1000 pa - however pre covid I travelled for work a lot so I can often  deduct some of that.  So more work based travel I rarely do a holiday as such.

 It does include future tech £100 savings pm which may be for a work thing, a new laptop or phone etc - I may spend less than that one year - but in 2022 I spent  £4100 £2k laptop (which normally lasts 7 years), £1200 equipment, £500 2nd hand phone - which has just been stolen  but would normally last me 3 years and a Apple watch £360 - but I did get bday money for that..
 - 
On my income side - I make extra from MB which is not taxed - even more useful as a HR tax payer , I am only just a HR tax payer this year  but I always add enough into my SIPP to take it down to BR.

I also do comping so I get some nice treats and gifts for that - last year I won gifts for my  family,  £2k cash, something I sold for £200 and now a large gift card...

I also get some decent Cashback    .. and am on the declutter sell wagon.

My credit card usage has just blown up the last 2 months ... £1700 pm  - I always pay it off in full - but as I put food, gifts, travel etc on there and then pay it back somehow it always comes back a bit higher - and then save less,
I only have a CC to help my credit score ahead of this mortgage

So I am officially declaring that unless something should be on a CC to be covered by Section 75 - in which case I will add the cash immediately back .. I have 2 work DD's on it  and my London travel and I will pay all else via bank cards.
I have got cash out for food, bulk and treats this month ..

AIMS + add in my signature to easily find - per month 
Track my NSD's - Target 16 days  1/16 so far
Track my Grocery spending in GC thread £0/£145 and £0/30 bulk
Track what I save in my hse deposit and SIPP in my signature £0 £0 
Track extra income from ebay etc  £0
Track Minimalist game  1/31  


As per the fabulous @Secret_Saving_Squirrel suggestion on the frugal thread as below (have copied it in) I do have a £200 h2b dd  isa go out every month anyway but I will definitely try this as much as possible given my inconsistent income  - as I get decent lump sums - I can always move this around

Hello old stylers! I usually lurk here, but wanted to voice a suggestion that might help anyone in the above situation. Pay yourself first.

If you have a regular income, the same amount received at regular intervals, and find that you should have a certain amount left over at the end of each month, but don't - instead of waiting until the end of the month to save the remainder, save it as soon as you get paid.

There are easy access accounts paying about 3% interest these days. Using the example above, stick £1000 in there on payday, then try living on what's left in your current account until next payday, and repeat. If your estimate is right it should be doable. If not you might need to adjust the budget and make a withdrawal from savings to cover the shortfall. It's very quick and easy to withdraw from an easy access account, but that one extra step can sometimes make you stop and think... If you would prefer a bit of enforced waiting time, I think premium bonds take a few days to withdraw from, so that could help.

You gain a little interest/prizes along the way, but for me the real benefit is that you manage to save a lot more when you save at the start of the month (and then try to cut your cloth to fit what's left) than you otherwise would.



         

Sistergold

Oh @LadyWithAPlan you always impress me with your budget. I think you are doing well on saving and cutting out. The whole point of London is the outings and you don’t want to cut it out too much when you also live alone! I think your budget is quite reasonable BUT don’t take my word for it as I am terrible at budgeting! I have always paid myself first though and it does make finances easier to manage. 

LadyWithAPlan

Sistergold said:

Oh @LadyWithAPlan you always impress me with your budget. I think you are doing well on saving and cutting out. The whole point of London is the outings and you don’t want to cut it out too much when you also live alone! I think your budget is quite reasonable BUT don’t take my word for it as I am terrible at budgeting! I have always paid myself first though and it does make finances easier to manage. 

Tx Sister Gold, trust me i have partied and played hard enough in London I can save a bit whilst this deposit focus is ongoing Plus I know how to party without too much cost. It's the gig/event tix that kill you.

I do need to sock some more away for savings and sipp first and stop the 'oh I need X' having a large savings balance and no home yet makes it tempting to say I can afford X/Y/.Z - I mean yes I can but getting my £104.5k up to £155k or £200k is the monster I am running towards ..

Grocery Challenge £22.98/£145 + £0/£30 bulk
Just spent in Mr Lid £22.98 - mainly loads of veg as had run out of most , kitchen towels £2.49 (*which normally come from a home budget but I will see how I go), some turkey mince ..
I had bought a side of YS salmon before Xmas so I have just cooked in the halogen so that will keep me going for the couple days,.
I have a voucher of tinned tuna and also nuts I will use as well for bulk. 

I hit the gym as well  go me

SIPP £200 added today - mkts bouncing up but I have moved a lot of cash around to not withdraw from my PB;s (looks like no winning today) 

This week I did my soldering of copper pipes which were tested to a successful pressure 4 (something) and tonight is carpentry - some joint I guess. I have asked if he will teach us to make picture frames as that be super MSE for those odd shaped ones.

Sistergold

I know what you mean @LadyWithAPlan once there is a lot sitting in the bank it’s easy to lose momentum! 

Suffolk_lass

Yes, that significant balance triggers what I refer to as my "smug filter" - resulting in feelings of "I've got this", "I can have it if I want it", "I can pay for that next month and make up the bit I'm stealing from myself" and various other euphemisms for over-spending. Be very afraid - years of this mean our retirement is less than it should have been!

LadyWithAPlan

Suffolk_lass said:

Yes, that significant balance triggers what I refer to as my "smug filter" - resulting in feelings of "I've got this", "I can have it if I want it", "I can pay for that next month and make up the bit I'm stealing from myself" and various other euphemisms for over-spending. Be very afraid - years of this mean our retirement is less than it should have been!

Thank you for your wisdom and warning @Suffolk_lass ...  I have really seen this last year especially with all the late paid invoices.. so I never know how much exactly and when in the month  I am getting every month to cover my basic bills - so ist meant when money comes in late or I pop stuff on a CC.
Either way the CC will be unused now apart from 2 work DD's, work travel as its connected to my apple watch  and large equipment stuff - no more popping food stuff on there and entertainment

@Sistergold I guess that is why you are looking at BTL's now you not doing the big house reno
Yesterday in carpentry we started building a builders triangle - way too much chisel and saw action on. We all got exhausted with all the detailed  sawing - I went to the gym in the morning and need not have bothered.
Plumbing is much easier on the biceps than Carpentry!
I am also being MSE by walking to class - taking me 26-30 mins as opposed to 10 min walk and then tube £2.60 each way - no brainer as I get extra exercise in as I always walk fast as I am always slightly behind time.

I had a cyclist drive into me last week on my return to London from the states (I was half asleep and jet lagged) and i moved thinking he was out of control but he  snatched my iphone. I think he had an accomplice as it was in a gap where the pavement narrows to a single width as there is a large tree trunk in the pavement - and another guy on a bike suddenly appeared after. His timing was too perfect. I had a slight black eye and cut on my eyelid but it has healed quick. Luckily I had another old  Android phone at home and friends in the building who looked after me whilst I cancelled everything as the phone was open...
I could see it as I have an apple watch so the police went to look at a huge council block where they had found 10 phones wrapped up in foil the night before. The same eve apparently they had snatched 7 other phones..
I bought it last summer refurbished iphone 11 pro - about £450 - not sure its covered on my home insurance.
On a positive side I spent last week sunbathing around a pool in the States and he is spending his time on a bike stealing phones - so I still have a much better life - karma has already got him  - annoying though as I now have to buy a iphone as it works with my apple watch  and there is an IOS app I use for work so..an extra few hundred to come out my budget this month...

Just making some gf fish cakes from the salmon I had left - they look amazing as I am now frying them up - had no chives in so adding in coriander and lemon zest. 


My sipps and isa all really up this last week - need to add at least £7k more into my sipp before April 5th .. so that nice to see.