I’m really late this month with my monthly review because everything’s got a bit crazy busy. My girlfriend is moving in with me, so if our weekends weren’t busy enough already there’s that to contend with. I’ve been remortgaging both of my houses, which means paperwork all over the place. I lost my wallet a couple of weeks back and have been slowly replacing the contents. And generally speaking I’ve been exercising and cooking a lot more recently in an attempt to be healthy.
August began with my friend’s wedding up in St Helens. The drinks were ridiculously expensive, I’m talking £6.50 for a single spirit and mixer, so we made a quick trip out to the supermarket and smuggled in a bottle of rum. We probably saved about £65 this way, though obviously I’m not suggesting anyone should follow my example…
The weekend after I met my girlfriend’s mother for the first time – I thought it was probably best I met her before we actually moved in together (I’m a traditionalist!). The following weekend we went down to Portsmouth to see my sister and co who are doing very well. My little nephew is growing up fast.
Regarding my finances I didn’t have a particularly great month mainly because I bought flights to New York, spent about £650 on a mortgage broker (for my HMO property), and spent £300 on new gutters (also for my HMO property). So basically my passive income was rubbish last month and if you followed my post recently on savings rates you’ll know that has a big effect on my savings rate. Anyway, here are the gory details:
Spending and Income Breakdown for August 2018:
- Mobile phone – £10.
- Imputed rent – £550 – I own my house (with a mortgage) but I pay myself rent. I don’t actually move any money around, but for the purposes of my spreadsheet and my savings rate I treat my house as though it were a rental property and I am a tenant in it.
- Food, drinks, toiletries – £217.98
- Eating/drinking out, takeaways – £253.42 – This includes drinks and going out so, you know, it could be worse. I did spend £50 at this mediocre Turkish restaurant which made my inner miser grumpy.
- Petrol/travel – £214.65
- Car expenses (insurance, repairs etc) – £0
- Gym/Sports – £30
- Music/gigs/cinema – £0
- Cash Withdrawals – £21
- Miscellaneous – £597.41 – Holiday related stuff mainly – flights, insurance, visas, airport parking. We’ve booked the hotel but that won’t come out til next month.
- Bank charge – Negative £10.86 – ie they paid me.
I split out my income into active and passive – passive is basically my rental income, active is everything else.
- Salary (after pension/sharesave removed) – £2289.50
- Pension payment – £899.16 – I put in 6%, my employer puts in 20%
- Sharesave – £250
- Matched betting – £0
- Rental Income (after bills, expenses, council tax and mortgage interest removed) – £181.40
Total Active Income = £3438.66
Total Passive Income = £181.40
My Savings Rate
I work out my savings rate by using passive income as an expense reducer. So in this case my spending is £1883.60 minus £181.40 which equals £1702.20. As my active income is £3438.66 and my spending is £1702.20 that makes my savings rate 50.46%.
Here is my month to month and year to date savings rate:
My savings rate for the year is currently sitting at 67.57%. I’ve still got self assessment income tax to pay, boiler repairs to make, a trip to NYC, and Christmas to come, but all in all I don’t think Oct to Dec will be too bad so I might still make the 70% savings rate for the year… I’m an optimist, what can I say.
My Net Worth Tracker
My net worth increased in August from £223,972.91 to £227.933.13, a £3960.22 increase. This is based on the estimated values of my properties minus my debts (mortgage/loans etc), plus my savings, plus my investment accounts (including pension) and the total of my bank balances.
About £1.9k of this increase is thanks to me saving my income (well, not spending it all is perhaps a better way of putting it) and the other £2.1k is thanks to the value of my pension and my properties increasing in value (according to Zoopla).
(I say this every time – I realise Zoopla isn’t the most accurate way of measuring a property’s value but based on my rental yield I don’t think it’s too far off – actually I’m probably being quite conservative in my valuations.)
Since this time last year I estimate my net worth has increased by £50,724.50. Here’s a lovely graph to show how my net worth has increased since September 2012:
This graph will see some changes next month as I withdraw some equity from my rental property, but I’ll go into a bit more detail on that in next month’s review.
A Citizen’s Fund?
On a completely unrelated note I saw the Lib Dems are talking about creating a “citizen’s fund”. This is something I talked about earlier in the year when I wondered if a government could be financially independent:
Of course, the likelihood of the Lib Dems getting close to power any time soon is pretty slim, but I’m glad the idea is out there and it’s not just me saying these things.
Labour mentioned the idea of a ‘sovereign wealth fund’ a few years back, which I believe is basically the same thing. So maybe, just maybe, Labour and the Lib Dems between them could make it happen. You never know.
That’s all from me, it won’t be long until my September update,
Thanks for reading,