Here's to the Fools Who Dream

scrooge2008

So end of the month catch up.

My debt stands at £24,864.00 and it was £24,596.00 so it has gone up by 1.01%.

The main reason is that I only paid the minimum amount for Pulse.  I had a couple of emergency repairs on properties; plumbing and drains and no money in that account to pay for them.  Not ideal, but could have been worse.

I have managed to go through my accounts with my accountant prior to submission, but he has still not been able to give me any indication of what my tax liability will be, despite promising me I would have the figures before the end of April.  I have guesstimated £8,000.00 and that is in the total of £24,864.00.  I have an appointment with a potential new accountant at the end of this month.  She comes recommended and has an App that I can use to keep track on tax liability and I want to get to the position in March 2026 where I am paying my tax in the month it occurs.

Generally I have had a happy and healthy month, enjoying the sunshine.  I am cancelling my gym membership (£80.00 a month) today and I have paid the last quarter of my office lease, which is paid three months in advance, then I am free of that commitment (£1648 a quarter inc internet and utilities).  There is a lovely, local gym with an outdoor pool and an office suite and they have a membership whereby you can hot desk in the attached office suite and use all the health club facilities for £71.00 a month, so I am planning to take up a trial membership there in August to see if I can manage running my business between there and working from home.

Finally, I was looking at my critical illness insurance which is a 25 year, high lever cover and It runs out on December of this year. I have never claimed on it.  I plucked up the courage to book myself in for smear, breast and bowel screening this month and also a full blood screening.  I figured that if there was anything wrong with me I would rather know before the cover ended and at least there would be some money to sotten the blow.  I really need to prioritise health now in a proactive way rather than just recovering from burn out. One step at a time.

Have a lovely May   

scrooge2008

Virgin	HMRC 1	Pulse	HMRC 2	Pay off Month	Debt Repay
£600.00	£816.00	£900.00	£190.00	June	£2,506.00
£600.00	£816.00	£900.00	£190.00	July	£2,506.00
£600.00	£816.00	£900.00	£190.00	August	£2,506.00
£600.00	£0.00	£900.00	£190.00	September	£1,690.00
£600.00	£0.00	£900.00	£190.00	October	£1,690.00
£600.00	£0.00	£900.00	£190.00	November	£1,690.00
£600.00	£0.00	£900.00	£190.00	December	£1,690.00
£600.00	£0.00	£900.00	£190.00	January	£1,690.00
£0.00	£0.00	£900.00	£190.00	February	£1,090.00
£0.00	£0.00	£900.00	£190.00	March	£1,090.00
£4,800.00	£2,448.00	£9,000.00	£1,900.00		£18,148.00

Month end round-up

Paid salaries and the current debt 'score on the door' is - £18.148.00.  The debt started at an estimated £24,596.00 so that is the equivalent of 26% of the debt gone!!  I am really pleased with that .

The key figure here is a much lower tax bill than anticipated, but this was largely due to me working very hard with my accountant for a couple of days to get it down, using every method possible legally, when I was unhappy with his original estimate .......  

This month (June) I am going to read Mike Michalowics - Profit First and analyse every penny that I am spending, in all aspects of my life, business and personal.

On the Joie de Vivre front - that is going well.  I have set up a What's App group with my two, dear sisters where we share something each day which has brought us 'joy'.  Often our precious moments are completely unrelated to spending.  

Sarahwithlove

I don't understand why your accountant didn't look at getting it as low as possible already for you. I would definitely look at a new one as you need someone who is proactive for you. 

scrooge2008

Thanks Sarahwithlove,

I have decided to stay with this accountant, but adopt a much more proactive approach, as I realise that I was a big part of the problem too and had lost control of my financial situation, whereas I used to be on top of everything, before I burnt out and stuck my head in the sand.   I have been looking at other local accountants, but they are much more expensive and I am in a different head space now.

I am completing my self assessment for April 2024/25 now, with the accountant and my company accounts will be completed by him as soon as my company year ends, August 31st 2025,   The issue before is that I was allowing him to do things, at the last minute and I had not kept accurate records.  Following discussions with him, we think that I will make a loss this company year and be able to reclaim the tax that I have just paid, which would be great.  From 1st September 2025, I will be using a system whereby I know at the end of each month how much profit I have made, that is why I am investing in the book and having honest discussions with the accountant.  

My monetary situation is quite complicated as I have rental properties in the company's name, my husband and I's and in my own name; pensions and a limited company and sometimes do PAYE work.  I need to do a self assessment and company accounts, at different times of the year.  I feel I have learned a valuable lesson, though from this whole experience and feel quite positive about the financial future.

scrooge2008

Scores on the Doors for June:-

Debt as at April -  £24,596.00
Current Debt - £15,858.00
Paid off - £8,738.00 or 35% of the debt.

	Halifax	Pulse	HMRC
Virgin	HMRC
£600.00	£816.00	£900.00	£370.00	July
£600.00	£816.00	£900.00	£370.00	August
£600.00	£816.00	£900.00	£370.00	September
£600.00	£0.00	£900.00	£0.00	October
£600.00	£0.00	£900.00	£0.00	November
£600.00	£0.00	£900.00	£0.00	December
£600.00	£0.00	£900.00	£0.00	January
£0.00	£0.00	£900.00	£0.00	February
£0.00	£0.00	£900.00	£0.00	March
£4,200.00	£2,448.00	£8,100.00	£1,110.00	£15,858.00

Emergency Account - £380.39

I finished the book 'Profit First' and the key takeaways were:-

1. Take out your own salary/drawings and your estimated debt to the government first.
2. Put a percentage of all income into a reserve account, for emergencies only
2. Eliminate all debt as ruthlessly as possible, using a snowball method
3. Cut expenses to the bone 
4. Innovate to make the business as efficient as possible

Plan for July
Currently my budget shows a deficit of £1896.28 for the month if I pay off the above debt for July.  I can only actually afford to pay £789.74 off debts. 

The shortfall is caused by a tennant's insurance which has gone up to £800.00 (not budgeted) and emergency work on one of the flats (not budgeted - roof and plumbing issues) 

I am going to adopt the following strategy to see if I can make up as much of the £1896.28 as possible.

- Try and negotiate cheaper insurance
- Try and get some nursing bank work
- Watch every penny I spend
- Post on here more regularly.
- Use my Emergency Account towards the plumbing work

scrooge2008

Good progress has been made:-

- I managed to get the Landlord's Insurance down from £850.00 to £600.00 and I am paying the company £60.00 over 10 months.

- I have updated my CV and applied for 5 part-time nursing jobs 

- I have been tracking every penny and found a way of saving another £400.00, (I was going to gift some money to a person, but decided that I am not in a position to do that, so have added it back into my budget.  I have resolved that until I am debt free I am giving no more money away.

- By using the Emergency Account, towards the plumbing work, I now have no deficit on my budget.

It is amazing the difference a pro-active approach is making.

I also realise that my weight increased along with my debt and I am going to get on the scales now, as I believe it will be the highest it has ever been and I have been afraid to tackle it, but I am feeling stronger here too.

I have now Jumped on the scales and I am officially 205 pounds or 14 stone and 6 lb; three stone overweight (42 pounds to lose).... I have a number of friends who have been on Mounjaro, with spectacular results, but I am very sensitive to medication and not sure what the long term side effects will be for me.  So despite being offered a free first injection, I have declined and will do this the old fashioned way, which to be honest has never worked for me.  Will start today and innovate.

Plan for today:-

Go on a cycle ride for 30 minutes to the beach and take healthy HM lunch and drink and a good book (make exercise pleasurable) NSD

Menu plan and do an online shop, keeping it below £100.00.