If you’ve landed here for the first time you may wonder why I am baring all about my finances. Since I discovered the FI/RE movement and started my journey towards being more financially secure, like others in this niche, I have jumped on the bandwagon of doing a monthly review.
Even if you don’t have a blog I can’t recommend it highly enough. It is such a good way of looking at what went well and examining areas in which you could have been more frugal. It’s not only a tool for looking back, but a monthly review helps you plan for the future. I have learnt where I need to increase my allowances for next year. For example, we seem to spend money each month on bird food, so it probably deserves its own category!
How did October go for you moneywise? For me it was a more expensive month than usual. Some of my regular spending was less, but there were some unexpected expenses. Let’s see how it went…
My only source of income is my monthly salary. Last month I received a backdated pay rise, but in October it returned to the usual amount which is £2726.17.
We are plodding on with our quest to reduce the mortgage. The standard monthly payment was £520.18 and then we made an overpayment of £591. This leaves the balance on the mortgage standing at £74,354.86. As we overpay every month by over £500 our monthly payment decreases the next month and Mr Simple then usually increases the overpayment amount. Instead of decreasing the term of our mortgage Mr Simple suggests that we should aim to get the monthly payments down to a very low amount where we hardly notice that we’re paying it and then just let the mortgage run to term. What’s your view on this?
Gas and electricity was £95.35. This is our usual direct debit. We are £191.44 in credit and I am hoping that will be enough to carry us over the winter so that our monthly payments don’t increase next year.
We paid the standard amounts on these bills which we can’t change:
- Council Tax £258.00
- Water £40.50
- TV Licence £12.83
Okay, actually we could reduce the water bill, which is metered, and it is lower than last year when we spent a lot of the hot summer watering the new lawn that we had had laid.
Our internet and phone bill was £27.85. We are currently with John Lewis who are putting up our bill by £2 per month. As usual they are offering a £20 a month deal for new customers, but loyal ones like us will be paying almost £10 more than that. At the moment we are paying for free evening and weekend calls, when in fact we rarely use the landline. Mr Simple is going to see if we can drop that and hopefully get the price down. John Lewis’s service is provided by Plusnet so we may change our package to them if we can’t reduce the monthly payments.
Any suggestions for broadband and phone providers? We were with TalkTalk at our previous home and they were completely useless so we certainly won’t be returning to them even if they are cheap.
Savings and interest
My savings are a grand total of £36,227.74. My Vanguard stocks and shares ISA made a loss and stands at £9,072.69. As usual I saved £185.00 to Vanguard and £250.00 to Nationwide. My savings account with the Nationwide matures in November and so I will get some interest, but the rate will decrease. I plan to close the account and move the money to my ISA.
Interest on my Marcus account, which I am using for stoozing, was a grand total of £8.43. Part of me wonders whether this stoozing is worth the bother as I am not making a fortune, but I suppose it is free money and I’ll keep going for the time being. I am getting to the limit on my Tesco credit card so I may not be able to use it much longer without either getting the limit increased or paying off each month what I spend. Even with the latter arrangement I would be able to keep £10,000 in my savings account, which is giving me 1.75% and over the next 8 months (until my 0% interest rate runs out) I would make about £100 to add to the interest I have already made.
Food £114.39 – under budget by £25.61. We ate a lot of food out of the freezer; mainly meals that I cooked over the past few months and froze. I also bought some dried fruit and nuts which I purchase online.
Petrol £109.57 – under budget this month. Yet again I had a week off so did fewer miles.
Pilates £24.00 – managed to get to three sessions this month. It’s good to get back to a regular class.
Toiletries £13.90 – this was two extra large bottles of lysine tablets which I am using to try to prevent the cold sore virus in my ear erupting. It was on special offer at the health food shop and so I splashed out. Otherwise it was a very cheap month.
Social £55.40 – this included a ticket for the village cinema, plus a very frugal £2 spent on the raffle and snacks. The price of the ticket, which was £7.50, included a very large glass of red wine, which I would happily forego if I could pay less for the ticket, but it doesn’t appear to be an option. I paid the balance on two Christmas meals, which put my spending over the budgeted amount of £50, but fortunately not by much.
Miscellaneous £181.97– I massively overspent in this category. It was mainly due to purchasing a blind and lampshade for the spare bedroom (although we did get them at 40% off in the sale) and buying a new handbag. I have a very old canvas bag that I bought from Next donkeys years ago and have been looking for something similar for a long time. Mr Simple calls it ‘the grand sac’ – a reference to the fact that I use it a lot when we are on holiday in France each year. Unfortunately it is very torn at the front and so I decided that I needed a new one. Canvas bags don’t seem that popular, but when we were away in Somerset I found a great shop in Dunster selling lots of canvas bags and they had one in just the size that I wanted. It was £32.99, which in the world of handbags, isn’t a lot.
Expenses from bills account – expected annual/regular expenses
Physio session £64.00
Staycation and weekend away £217.46. Most of this was for the hotel and the evening meals.
Car battery – £80.87 – you may remember that my car broke down and it was the battery that was the problem.
The blog – £124.63 – I have never spent money on blogging courses before, but I was persuaded to buy the Genius Blogger’s Toolkit. This is a package of about 100 courses. It must be worth thousands of pounds. I have downloaded a couple of the courses and started working my way through it. Mr Simple (who doesn’t know about the blog) is disparaging about blogging as a career, but there is so much more to it than there seems at first glance.
The first course that I started suggested moving from WordPress.com to WordPress.org, which means managing the site yourself. The good thing about this is that you can start adding plugins, a lot of which are free. With WordPress.com you have to be on their business package which is about £200 a year to get plugins. The downside of the move was that I needed to move my hosting to another providers. I chose Siteground as it is adequate for what I need and was a reasonable price.
So there you have it. Any observations? Where could I have saved more money? What do you think about our mortgage tactics? Should we reduce the term instead of the monthly payments?