The first yearly plan for my finances, this data is just before tax-year 2018/9.
Up until now I’ve been pretty ad hoc with my finances, much like most professionals (I assume). Budgets are based on how far into my overdraft I am and spending in line with my means. Big surprise bills go on 0% credit cards. I’ve always spent as much as I’ve earned, and have limited tolerance for overexposure (unlike some colleagues). Time now for a change and some structure, namely the flowchart from r/UKpersonalfinance
My main debts are mortgage, credit card, and a small loan to a family member to pay for our wedding. The loan has no interest, and the credit card is 0% for another 2 years. I make more than minimum payments (usually 10x) each month.
Goal 1: Build an emergency fund.
Initially one month, but I’d like 6 for security. I’ve been investigating where to put this, and reading about new banks for current accounts. I’d like to have the benefits of a digital bank as I’m abroad a few times a year. This appears to be a good summary:
So I may set up a Starling account and a Santander 1-2-3 regular saver for it’s 3% interest rate.
Goal 2: Pay off debts
Simple really, but I’ll set up a plan rather than ad hoc.
Goal 3: Reduce superfluous outgoings.
Not too many, but deserves it’s own post.
Goal 4: Commence investing!
I’ll check back in quarterly to see how I’m meeting goals.
The FIRE Shrink