So where did that month go?
My first monthly review is not pretty reading, but I expected that. My net worth has actually decreased. This is due to a few expensive payments for professional courses and subscriptions I have coming up. Some of these will be reimbursed by expenses. I’ve also been shelling out for wedding items and legal expenses for property conveyancing. This has swallowed up some money I had in my main bank account put ready after working some extra shifts last month.
My assets have decreased. I have been back through old bank accounts and working out a more accurate picture of the lay of the land. I’ve now factored in a bit of overdraft I paid off earlier in the month, and the cash float has been swallowed by legal fees. Next month I should be clear of my (interest free) overdraft for the first time in several years. I’ve managed to raise a bit of cash by starting to sell some spare car parts, but I continue to be a serial hoarder of bits which I picked up cheap and ‘may come in handy one day’. I’ve also managed a mini-goal in drastically reducing my £4/day canteen lunch habit to a £10/week shopping trip… Chipping away.
My liabilities have decreased a bit. Student loan is being paid off as per amortisation, as is the mortgage. My credit card has increased a bit with wedding expenses. Over the month I’ve set a clearer plan for my credit card, and I now plan to pay off a specific amount (~£250) monthly rather than ad hoc amounts.
I have also set a plan to decrease monthly spending. We currently pay mortgage on a house on the other side of the country, and rent on a house where we work. This is an eye watering £1950/ month, plus bills and council tax. We’re downsizing our rental on a short lease, and waiting on the sale of our property and purchase of a new place.
Plans for next month:
- Set up a regular savings account to build an emergency fund. This may either be a regular saver or a high interest bank account.
- Set up a Starling/ Monzo/ Atom/ Revolut account for day to day transactions.
- Reduce mortgage and rent outgoings
- Sell five items from my hoard
- Set a monthly budget for hobbies
I also plan to continue reading about savings and investment strategies, and look into overpaying my mortgage once conveyancing and purchases are complete.
There’s a long way to go.
The FIRE Shrink