My journey im making to financial freedom UK.

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holly
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Joined: Wed Sep 24, 2014 8:10 am
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My journey im making to financial freedom UK.

Postby holly » Wed Sep 24, 2014 8:34 am

Hi everyone, as others have said, I have been reading this forum for a while now, and love looking through everybody else's stories/lives, so thought I need to get serious now and get going and do my own journal.

Heres a bit about me, I am 24 years old, never went to university and am in no debt, well except my mortgage which is £93,000 with around £30,000 equity in my flat.

I have been saving hard as I want to be a buy to let investor as my full time job, as soon as I possibly can. I am currently saving , but want to look at my finances and save more so this can become a more realistic goal.

I have spoken to my parents and they know how hard i am saving for this, and we have said , if i can get half the deposit up together, they will give me a loan, which will be paid back in 3 years, with interest on top. Im not sure what it is like in other countries, but here in england the smallest deposit i am allowed on a buy to let is 25%, which given my current location, i will need about £40k.

I have worked out cutting my spending, saving more, and hopefully getting a much needed promotion (this side of christmas) I will have my share of the £20k this time next year. I currently have £10,500 so over halfway there.

My pay at the moment is £21,500 p/a with a £3,700 car allowance and an £1000 bonus.
Payday was today I had my £500 bonus, so next bonus will be next September. This bonus has gone on my ring fund for my girlfriend (soon to be fiance)

I need to do a better break down for you but this is what i know i spend right now, will be tracking money better from today so will be able to give you more info next time i update you all on progress.

Monthly Pay -£1497 after tax and after £300 into shares (me and the gf split 50/50)
Flat- £500 this includes my side of mortgage, all bills and food.

This leaves me with £997 a month, im not sure how much of this i spend, although in future i will be able to tell you, I know i normally will save at least £500 of this, my problem is , it is all in one account except for the ring fund, so it builds up but not sure of the exact amount i am saving each month.

This is my current status and targets:

£10,500 B2L Deposit - Need £20k in 12 months, by christmas i want this to be £12k
£1,100 ring fund- added £500 to it today as ive dipped into it a few times, target £1,500.

Im not sure if i have missed anything, probably have, but as i said, by doing this i should be able to really watch what i spend and see how to improve, going to try and save really hard this month as last month i feel like i wasted money and i dont even know what on, i dont even have anything to show for it.

My aim is to get a property next year, pay my parents back for 2.5 years, then buy another and sell the flat i am living in, use our share money as a deposit for our own house, and the flat money for a buy to let, so 27 2 B2l's and a family home, i dont want to spend the rent if i can, just let it build up and up so i can buy more. If anyone has any advice or stories i would love to hear from you, the interaction i have read on the other stories really seem to help the people who write them.

Thanks guys!!!

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lavendar
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Re: My journey im making to financial freedom UK.

Postby lavendar » Wed Sep 24, 2014 6:30 pm

(couldn't figure out the pound symbol on my keyboard so had to use #)

Very huge goals! Sounds like you have a plan. I know little about the rental market, let alone how it works across the pond, so I don't think I have anything constructive to say about it.

Just looking at savings and re-payment plan, are you prepared to save #800/mo for the next 12 months and leave you with #197/mo for everything else That's a huge lifestyle change...

Also -- making a huge change for one year can be doable -- but you're also talking about paying back your in-laws at $555/mo + interest for the three years after that? Also, since your'e planning on getting married, make sure your bride-to-be understands that you'll be in debt to her in-laws for a while too.

holly
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Joined: Wed Sep 24, 2014 8:10 am
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Re: My journey im making to financial freedom UK.

Postby holly » Wed Sep 24, 2014 11:41 pm

Hey Lavender, thanks for your reply. I know to live off of £197 p/m would probably be too hard, im hoping to get a promotion around christmas time, which is where the real saving will start! the raise should be about £8,000! So if i save my raise and then continue to save but give myself a realistic amount to spend p/m and as i get closer to my goal by posting it here i reckon it should get easier!

Also in regards to paying my parents back, im hoping to have a multi let, so more money than just one occupant. Im then going to repay my parents the rent i get after i have paid the mortgage, bills etc. from what i have read this seems the best way to get a good return on investment.

This all sounds great in my head, but when it gets to it, it may not be so dreamy, but this is the dream so going to try my best to find out :D

holly
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Joined: Wed Sep 24, 2014 8:10 am
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Re: My journey im making to financial freedom UK.

Postby holly » Sat Sep 27, 2014 8:50 am

Really quick update, I know this is really boring, me and my girlfreind normally do a weekly shop online and it costs about £30-40 p/week. Today we decided to go to a Lidl, its a cheaper supermarket in the uk, they dont do online delivery, but we did a massive shop and worked out we saved £10. I know its not a massive amount, but If we do that once a month and get the majority of our shopping, and then when we are busy at work and maybe just do 1 or 2 online shops per month, we should save some decent money. Im doing a break down at the moment for my account and our joint account, so i can see exactly what we are spending and how we can cut back. If i dont write it down i never actually know what has been spent, so this should really help the savings grow quicker. I was worried about this month because we have quite a few nights out and a wedding to go to, I went out for my friends birthday last night and managed to spend just £22.70 and that included buying her drinks aswell. (not bad) My girlfriend is in a band and has her first gig tonight, so im sure ill spend money tonight aswell, I dont want to be scared to spend money, im a big believer in you work hard, so you should treat yourself. Im just looking at the priority now of getting this buy to let, i feel like once i have got that, i can relax a bit. Coming up to christmas we have alot of expensive things coming up, my real saving will start when i get my promotion. If they dont give it to me this side of christmas, ill be nagging them!

plank
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Re: My journey im making to financial freedom UK.

Postby plank » Tue Sep 30, 2014 10:44 am

I'm looking forward to reading about your journey. It will be interesting to read about another European trying to get ahead.

(I'm actually American, but live in Germany for the foreseeable future.)

holly
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Joined: Wed Sep 24, 2014 8:10 am
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Re: My journey im making to financial freedom UK.

Postby holly » Thu Oct 16, 2014 9:59 am

Malik125 I don't really understand what input your post has?
I am from the uk? 40k is what I am aiming for , and am doing very well
Saving for my half of it? Do you have any advice or any input? Or did you just want to
Rewrite sections of what I have originally posted???

geoff_tewierik
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Location: Brisbane, Australia
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Re: My journey im making to financial freedom UK.

Postby geoff_tewierik » Thu Oct 16, 2014 10:04 pm

Holly, malik125 is possibly a bot - hence the lack of making sense.

holly
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Joined: Wed Sep 24, 2014 8:10 am
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Re: My journey im making to financial freedom UK.

Postby holly » Thu Oct 16, 2014 11:38 pm

Ha I was so confused, thought he may of had something useful
To say, anyway I know I've not been on here for a whole
But because I get paid monthly I thought I would update
Monthly rather than just update because I want to with nothing useful
To write, I get paid in 7 days so I can give you all an update
How my savings look this month including a better break down of my outgoings.
I still come on here most days to look at other posts, wish I was paid bi- weekly
Like all the Americans so I could comment twice as much
On my post. I've been very strict with myself this month , as I have
A lot going on in November and December so have been saving hard, looking forward to working out exactly what I have managed to save! :D


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