The Financial Dashboard – January 2021

The goals for January were:

  • Cut down on takeaway spend
  • Make plan for clearing credit card debt
  • Exercise five days/ week
  • Revisit emergency fund allocation

Checking the assets and liabilities:

January’s Assets and Liabilities

These are taken, as always, from my Beast Budget spreadsheet. Wales continues in lockdown (six weeks and counting), so there’s no frivolous spending on dining out or trips away. I managed to save just under 30% of my salary, as much went to recoup some ‘float’ funds which were spent over Christmas (I don’t count this as saving). I’ve opened a new regular savings account, but for this month my money went to paydown my 0% interest credit card. New investment money in the Freetrade S&S ISA went to increase previous holdings.

If you fancy a free share, sign up to Freetrade with this link (I also get one).

Goals:

Goal passed: Cut down on takeaway spend

Bit of a simple one this, and passed easily, partly by ordering cheaper takeaway (swap that indian for a fish and chips), and partly by reducing the number. We’ve had a lot of vouchers come through from JustEat and Deliveroo, but that is a very slippery slope.

Goal passed: Make a plan for clearing credit card debt

As of the end of January my credit card debt stands at £3,431. This was one transaction – buying new windows for our house – and is on a 0% interest card with 20 months interest free left to run. With this in mind I’ve decided to pay it down over minimum twelve months. I will pay £100 a month direct into the account, and a further £250 into a Principality Thank You savings account (1). This is an online regular savings account available to NHS staff in South Wales with a 1.40% interest rate. I’ll stooze the interest rate, and at the end of the year pay off the credit card (2). I’m also working a fair bit of overtime here and there, so that will go direct into the credit card (currently about £100-300/month after tax).

Goal passed: Exercise five days/ week

I’ve now got a routine where I exercise before work every day, and I feel fresher and healthier for it. It also makes weekend lie-ins a proper treat.

Goal passed: Revisit emergency fund allocation

I last looked at how my cash savings and emergency funds were flowing back in November 2019. Since then I’ve moved my accounts around, the savings landscape has changed (3% interest rate on my old Monmouthshire account!) and I’m close to hitting my emergency fund goal. With that in mind, I’ve redrawn my cash flow and how I’m going to structure my emergency funds.

Cash flow. Amazing what you can do in Powerpoint.

This gives a rough idea of where my money flows. I use two main bank accounts to distribute my expenses and provide a predictable and trackable flow. Bills and investments are paid first. I use ‘pots’ for predictable future expenses; saving cash for things like MOT and car servicing, professional bills etc. I also run a £500 float ‘pot’ in my secondary account, which acts like an overdraft of just-in-case money each month. Beyond that my emergency funds are split into instant access, <24 hours to receipt and 3-5 days to receipt accounts (i.e. the money arriving in my main bank account). I ultimately want to have a division of £500 float, £5,500 <24 hours, £6,000 three-five days. From where I’m currently sat I’ll need a further £1,500 premium bonds and £1,300 in cash savings accounts. A goal for this year as part of my annual plan.

Budgets:

  • Groceries – Budget £200, spent £181.70, last month £331.35 – Back on track
  • Entertainment – Budget £100, spent £100, last month £70
  • Transport – Budget £250, spent £123, last month £455.11
  • Holiday – £150, spent £0, last month £0
  • Personal – £100/ £78/ £359
  • Loans/ Credit – £50/ £255/ £89
  • Misc – £50/ £96/ £50
  • Fees – £300 /£302/ £304

In the garden:

Working over raised beds with new compost (and removing a lot of general rubbish) where they got thrown together with anything I could get my hands on previously. General mooching.

Goals for next month:

  • Make a few hours each week to enjoy hobbies without pressure
  • Test intermittent fasting
  • Organise remortgage

Happy February everyone!

The Shrink

References:

  1. https://www.principality.co.uk/savings-accounts/everyday-savings-accounts/thank-you-online-saver
  2. https://www.moneysavingexpert.com/credit-cards/stooze-cash-credit-cards/

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