-£99,152 net worth - scary figure

enthusiasticsaver · 6 November 2018 at 5:17PM

charliedavis wrote: »

Sorry the HP is for a car that is technically on a lease, i.e. we plan to hand it back 2 years in and exchange it for a new one, due to the number of miles OH does. I presume I could probably remove it for that reason?

Yes totally agree our overheads are waaaay too night, looking forward to moving to somewhere far cheaper in August.

You could remove it if paid from the business account. If it comes out of the income quoted on the soa then you need to leave it there as a liability although technically it is car lease and not HP which is when you keep the asset at the end.

Remember moving costs money so over the 10 months or so before moving you will need to save up to cover moving fees, deposits etc. Not a problem and presumably at some point you will get a deposit back from your current property but that won't come back until after you need to pay for a new rental.

charliedavis wrote: »

Yes I do have a good accountant, thank goodness. I worked out I need to pay £400 per month towards my January self assessment to avoid getting into debt. Best option will be to pre-pay it to the HMRC I think.

I am glad you have an accountant and are prepared for tax costs. So many self employed people get themselves into a real pickle with this and then end up panicking when it gets to SA and the tax deadline.

charliedavis · 6 November 2018 at 8:02PM

That is so true about the house deposit - it will cost us at least £800 in moving costs, £500 in referencing and around £2500 in deposits so this definitely needs to go into the budget.

In other news - DS is throwing a hissy fit. He got a job at the local pub but was told he’d “only” be paid £4.50 per hour. He’s now in a massive sulk - I’m presuming he will then decide he doesn’t want the job. He needs the job to pay for his car insurance and I think he’s just presuming we will give in and pay for it. He’s definitely the one that’s having the toughest time adjusting to the new budget. Currently he’s refusing to drink anything in the house as we bough unbranded squash... even typing this I feel guilty what a spoilt kid I’ve raised :-(

enthusiasticsaver · 6 November 2018 at 10:59PM

A bit of tough love needed with your DS I think. Tell him to buy his own branded squash out of his first weeks wages. Stick to your guns. My DD2's first job was cleaning caravans in a local caravan park for a fairly low wage and she hated it but stuck it out for a year including through the summer and easter holidays and earned herself a massive bonus. The biggest plus though was that she realised how hard she had to work to earn a decent salary and resolved to study hard to get qualifications and a decent job after school/university with good wages. Sometimes we can make life too easy for our young adults and it does them no favours in the long run.

adg89 · 7 November 2018 at 11:04AM

Totally with enthusiasticsaver

DS will definitely thank it for you later. Being given money will not make him realise how hard you have to work to earn it, but by earning it himself, he will learn the value of his money going forward and will maybe make his own concessions on branded squash.

Keep going charliedavis, you've got this!

charliedavis · 7 November 2018 at 11:39AM

Thanks all!

So a quick update on the first week of November having meticulously tracked our spend (for the first time ever!)

1) Grocery spend £99.17 (thinking around £100 per week might be doable based on this week)
2) Holiday spend £90.53 (had budgeted £100 for a night away for my birthday so came in under budget)
3) Eating out / misc £47.98
4) Credit overpayments £2811.91 (made using tax overpayment for OH - normally we'd have booked a holiday with this!)
5) Savings towards EF £200
6) Prepayment towards my self-assessment £100. If I pay £100 per week until Jan I will pay it in full

I'm finding the daily habit of tracking our spend to be really helpful and OH is fully on board with this. He's making sandwiches to take with him and taking a drink to avoid needing to spend while out. It's a shame DS hasn't quite got it yet, but we will get there!

enthusiasticsaver · 7 November 2018 at 12:47PM

Brilliant first week and so good you used the £2811 towards debt overpayment and saved for EF and tax. Reducing £220 to £100 on groceries spend is great although you could probably get it down further using Aldi or Lidl. Small steps though. Hopefully your DS will take the pub job. If not I would seriously think about pulling back on the driving lessons if he won't get on board. He is almost an adult so should be starting to grow up a bit and realise the world can be a tough place.

charliedavis · 7 November 2018 at 4:22PM

Just had another £1958.55 tax rebate - about to go and pay it in at the post office. I’ll then use this towards my EF and further debt repayment.

OH has broken our NSD by spending £1 on bread - sigh... well we nearly would have managed it! Need to buy more / freeze more next time

charliedavis · 9 November 2018 at 2:39PM

NSD yesterday, the second this month. Did have business expenditure though.
Been busily sorting out life insurances, basic private medical insurance, income protection insurance. Following the advice in the Barefoot Investor book that arrived a couple of days ago.

I don't find I can apply all it yet until I've paid down a lot of the debt, anyway else that has read the book find this?

In other news - DS did his first shift as a kitchen porter and enjoyed it - YAY! He has accepted 4 evening shifts next week which is great news. So pleased for him.

adg89 · 9 November 2018 at 2:43PM

Congrats to DS on the job - hopefully he will see the benefit soon!

Well done on the NSD - I find even if I break it, so long as it's a low spend (under £5) for the day - and it's not too frequent - I don't need to be despondent as it would still be less than I would have spent in the past!

Go you!

charliedavis · 9 November 2018 at 3:24PM

Yes I totally agree about aiming for NSDs and it still being okay if it's just a couple of pounds, that makes sense!

Just rang and closed my Next Directory account down having paid it off in full a couple of weeks ago. Their VIP sales used to tempt me into spending a good £3000 or so each year! It's a very satisfying feeling :-)

-£99,152 net worth - scary figure

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