Late Starter to FI

I am really excited to let you know that I have had the honour of writing a post for Latestarterfire in her series about people who find the FI/RE movement late in life. It tells you about how I discovered financial independence and started on this journey, along with the progress that I have made so far and what I hope to achieve. You can read it here. Don’t forget to check out the rest of her site as well.

Financial Goals for 2020

Flames

It’s been just over a year since I discovered the FIRE movement and fell down the rabbit-hole of endless blogs and podcasts all talking about financial independence. I watched the documentary ‘Playing with FIRE’ last night and found it so inspirational. It was thanks to an email from Monethalia, letting me know that it is free here (with the password FIRE) until 11th December. The documentary follows Scott Rieckens and his wife and daughter as they make enormous changes in order to pursue financial independence. On the way they talk to the great and the good of the FIRE world.

If like me you’re not quite brave enough to give up your job, sell your home and move half way across the country to live with your parents for four months, as the Rieckens family did, then a good place to start instead is with an annual review of your finances and a plan for what you want to do over the next 12 months.  

Reduce the mortgage by £12,000

My main aim for 2020 is to reduce our mortgage by a further £12,000. This year I have made payments totalling nearly £14,000 against our mortgage and by the end of the year we will owe about £72,000.

As we overpay by more than £500 per month the building society recalculates our monthly payment each time and decreases it. The plan is that each month Mr Simple increases the overpayment which he makes manually, therefore the total amount we pay each month remains the same. The thinking behind allowing the standard monthly payment to decrease each time is that at some point in the future, if we decide to stop overpaying and just let it run its course, the amount coming out of our account will be fairly small. At the moment the standard payment is decreasing by about £4.00 every month.

Well, that’s enough about the mortgage, let’s have a look at the other bills I expect to be paying in 2020:

Item Monthly Annual
Water £40.50 £486.00
Gas and electricity £89.78 £1077.36
Phone and broadband £18.99 £277.88
Woodland Trust £6.00 £72.00
TV Licence £11.50 £138
Council Tax £258.00 £2580.00 (ten months)
watering can
Watering the garden costs money, but we enjoy growing our own vegetables

Reduce the water bill to £31.00 per month

Our water bill went up after we had a new lawn laid and spent the very hot summer of 2018 watering it using a sprinkler. Prior to that the bill was £31.00 per month. We have a large garden, two greenhouses and a vegetable patch, so our water consumption is going to be higher than someone who lives in a flat, but I am hoping that when it’s reviewed at the end of the financial year it will go back down to the previous rate. Mr Simple has installed two water butts and we have adopted the habit of not flushing the toilet every time we spend a penny. Sorry if this sounds a bit disgusting, but it’s only me and Mr Simple and it really doesn’t bother us. According to the Money Advice Service about 30% of water used at home is due to flushing the toilet.

Gas and electricity have recently gone down thanks to Octopus and we are moving our phone line and broadband to Plusnet, so I am happy with those totals. All of the other items are fixed so there’s absolutely nothing I can do about them.

Increase my holiday spending

This year has been a fairly frugal 12 months in terms of holidays. Mr Simple hasn’t been abroad at all, but I did go to Italy with my mum in celebration of my 50th birthday. Having only gone away in the UK with Mr Simple, which meant missing our usual two weeks in France, I realise that holidays are one thing that I am happy to spend money on. My mum wants to go to Croatia next year and whilst I could stick to my frugal guns and decline, she’ll be 75 in April and so I want to take the opportunity to enjoy time with her whilst I can. It’s not that I think she going to pop her clogs any time soon, but you never know what might be around the corner. I have therefore increased my holiday budget and am going to put my annual car user’s allowance from my employer towards my holidays.

Next there’s my own bills – for some reason the house insurance comes out of this instead of the joint account, but it makes no difference as I would be paying the total amount whatever.

orange beetle car
It has 105000 on the clock, but I need to keep it going

Keep the car going

As my car is getting older it is likely to cost me more and so I have calculated increased spending in that area. It’s only a matter of time before I have to buy a new one, but fingers crossed that won’t be in 2020.

Item Monthly Annually
Car service £42.00 £500.00
Car tax £2.50 £30.00
MOT £3.75 £45.00
Recovery £5.08 £61.00
Car insurance £20.00 £230.00
House insurance £24.00 £290.00
Travel insurance £7.50 £90.00
Hair cuts £8.00 £96.00
Opticians £13.50 £162.00
Dentist £28.00 £2.30
Holidays £166.00 £2000.00 (plus £800 from travel allowance)
Physio £38.00 £455.00
WI £3.50 £42.00
Presents £25.00 £300.00
WWT membership £3.45 £41.50
Total £364.21 £4370.50

I am due to have my eyesight checked in January 2020 and may have to buy a new pair of glasses. I therefore save every month towards this eventuality. If I don’t need a new pair then the money can go into savings.

Continue paying into my ISA, but at a reduced rate

With the increasing cost of my car and the holiday expenses I can only guarantee paying £363 per month into my ISA. What doesn’t factor in my spending is the payments that I get towards the miles I drive for work. This is on top of the annual travel allowance. Although I budget spending £120 on petrol, sometimes that is covered by my travel expenses. How much I receive varies each month, but whatever I get will go into my ISA. Some months it is over £100 so would take my savings up to nearly £500. We’ll just have to see how it goes.

After deducting the above payments I have will have £450.00 to spend as follows

Item Monthly Annual
Food £140.00 £1680.00
Petrol £120.00 £1440.00
Toiletries £30.00 £360.00
Professional membership £24.10 £289.20
Phone £9.99 £119.88
Pilates £34.00 £408.00
Social £50.00 £600.00
Miscellaneous £40.00 £480.00
Total £448.09 £5377.08

Reduce the food budget

I have worked hard in 2019 to reduce our food spending, but I hope to make further progress next year. £140 also covers cleaning items and some toiletries so I don’t think it’s that bad, but I feel that I could do better. So how does this compare to your budget? Finding it hard to make savings? Why not subscribe and get my ‘Frugal Tips’ sheet as a thank you.

November Review

Two two pence coins

Welcome to the penultimate review of the year. Another chance to see my progress on paying off the mortgage and whether I’ve overspent or underspent on each of the budget categories.

I love to see real numbers rather than percentages on other blogs, as I believe that it gives a true picture of someone’s financial situation and you can then compare it to your own.  Each month I therefore bare all and go through the exact amounts that I have spent on household bills and any personal items. To give you an idea of how much I’ve got coming in my salary, after tax, provides me with just over £2,700 every month.

If you’re new to the blog, just to let you know that these are the amounts that I have spent out of my wages. My partner, Mr Simple, does not currently contribute to the mortgage or any of the household bills as he is paying for all of the work that we are doing to the house. He does pay for his half of the food though.

If you are trying to find ways of saving money and want to get a grip on your finances a budget is a must. Check out my post on drawing up a budget here

Let’s look at the figures then…

Woodland with a path running through it
Planting more trees is good for the planet so we support the Woodland Trust

Monthly bills

Firstly, the mortgage, which is our only debt and which I am on a mission to pay off as soon as possible.  The standard monthly payment was £516.09 and then we made an overpayment of £595. This leaves the balance on the mortgage standing at £73,357.72.

Woodland Trust donation £6.00

Gas and electricity £95.35. This is our usual direct debit. We have underspent over the past year so from next month our payments will reduce to £89.78. It’s not an enormous reduction, but it’s a reduction, which is great considering that most of the time bills tend to go up rather than down.

Council Tax £258.00. The downside of living in a large house is that we are in Band G for this. The only way to reduce it is to move house.

Water £40.50

TV Licence £12.83

Internet and phone £30.00. We are with John Lewis, who have just increased their prices. Yesterday I signed up with Plusnet who have a special deal for Black Friday – broadband and landline for £18.99 per month. This is under an 18-month contract. It doesn’t include any calls, but as we have unused minutes on our mobiles, we plan to use those instead of ringing from the landline. Hooray – another saving as from next month.

Income and savings

It was this time last year that I discovered the concept of financial independence and therefore some of my savings accounts which I opened at that time have borne fruit this month in the form of interest, namely…

  • Charter Savings interest £123.61
  • Ratesetter £47.67. I am due £100 bonus for signing up for a year, but won’t get that until January.
  • Savings I had with Nationwide at 5% matured and I received interest totalling £80.79. The rate has gone down so I’ve moved the total, £3080.79 to my ISA.

Savings are a grand total of £36,840.63.

Interest on Marcus account which I am using for stoozing was a grand total of £9.86.

shelves of vegetables
I spent more than usual on food this month

General spending

Food £150.62 – over budget by £10.62. This does include cleaning products and some toiletries as well. I felt as though it was a frugal month, but the figures tell me otherwise. I think it is more than the past few months as we were home for the whole month, whereas in October we had a few days away in Somerset and in September I was in Italy for a week.  I am due to do a monthly shop for December, but the cupboards are fairly full so I am hoping that the spending will come in under budget next month.

Petrol £94.57 – £25.43 under budget again. I currently have a quarter of a tank, which is when I fill up. As it’s the weekend I haven’t got around to putting anymore in the car, but if this month had had 31 days I may well have spent the full amount.

Pilates £24.00 – this covers three sessions. Unfortunately there was a problem with the hall floor this week, so the class didn’t go ahead. The bad news is that our teacher won’t be able to do the class after Christmas due to changes in her job. We are currently trying to find someone else to do it for us.

Toiletries £31.93 – some body lotion – I spend £9.95 on lotion which contains magnesium, which supposedly helps prevent heart arrythmias, like I have. I then called in at Boots for some hair dye and hair spray paint, both of which were on special offer. I therefore decided to buy two of each, hence I went over budget this month, but only by £1.93.

Social £50.50 – lunch out with a friend, dinner out with a friend and a drink for me and a neighbour at our monthly village get together. Parking whilst out for a Christmas do and an advance payment for another meal next month.

Miscellaneous £41.48 – paint tester pots, a plant, which was a gift and a plum tree for the garden which we are expecting to be delivered shortly.

Volkswagen beetle with bonnet up
As my car is getting older having breakdown is really important

Expenses from bills account – expected annual/regular expenses

There was very little from this account in November….

Physio sessions £64.00

Roadside assistance £61.00 – I get a discount as Mr Simple also has this with Toyota.

So there it is, everything that I’ve spent money on this month. If there is anything that you would like to know more about please let me know. I am in the process of drawing up my budget for 2020 and monitoring my expenses this closely has been invaluable in working out what I should allocate to each category. If you have never kept tracking of your spending maybe you could think about starting next year?

The Bullet Journal

Diary pages
A simple life is an organised one

Get your life organised

Do you want life to be easier next year? Want to feel on top of your task list? How about learning to meal plan? Want to keep track of the cash that keeps disappearing from your purse? Would you like to have one place for all of this? A place which you can tailor exactly to your specific needs? The answer to all those questions is a bullet journal.

The problem with other planners

The bullet journal is a planning system that I have been using over the past two years. When I was first looking at planners I bought a Passion Planner. The trouble was it was too big and had a lot of space for listing your appointments during the day. I wanted something to organise my personal life i.e. my evenings and weekends, so didn’t need all the space for weekday appointments. I then discovered the bullet journal.

What is a bullet journal?

It’s basically a notebook where the pages are covered in dots. The pages are numbered and there is space to create an index at the beginning. It was created by Ryder Carroll who has recently written a book about his system. Although he gives ideas for various page set-ups and symbols that you can use within the journal, basically there are no rules and you can use it however you want.

writing at a desk
Bullet journalling can be a lot of work if you don’t keep it simple

Possible downsides

Some people are turned off because it can be a lot of work setting up the different pages each month, whereas something such as the Passion Planner does all that for you. The answer is to keep it simple. There are loads of YouTube videos out there about how to create beautiful bullet journal pages, but if you’re gonna use it to save time, then you don’t want to make work for yourself.

Then there is the cost. Although you can buy the trademarked Bullet Journal notebook, they are expensive. There are other dotted notebooks out there which you could buy instead or just use an ordinary notebook at first and see if you like this system.

Ideas for how to use a bullet journal

To give you an idea of how I use my bullet journal, these are the pages that I set up every month…

Diary

This is simply the date and day of the week in a list and I can write events and appointments next to it. For example…

1M 2pm Haircut
2T  
3W  
4T  
5F Drink with Sally
6S Lunch at Mum’s

Spending

As I am doing my best to keep track of where every penny goes, the next page in my bullet journal keeps track of my cash spending. I withdraw money once a month, having worked out how much I should need and every time I spend some I write it down. It looks very similar to the diary page, but instead of appointments it shows what I’ve bought and how much it cost. It has also helped me to keep track of how much Mr Simple owes me. Before starting this system I would pay for things in cash and forget that he owed me for half. This may be a step too far for you, but if you really want to dig deep into your spending habits then this is a good way of doing that. Here’s what it looks like…

  Me Him
1M Eggs £5.20 £2.60 £2.60
2T Pilates £8.00 £8.00  
3W Groceries £3.90 £1.95 £1.95
4T    
5F Tea and cake   £4.50  

Task List

This is just half a page or a page with the heading ‘Tasks’. I write a very simple bullet-point list, adding to-do’s as the month progresses and when the task is done I put a cross through the bullet point. At the end of the month you look to see what you haven’t done, decide if it is still a task that needs doing and if so, carry it over to next month.

recipe book with kale leaf
Find recipes to cook throughout the month

Meal Plan

For the last two months I have created a meal plan table. This is the beauty of the bullet journal. The dots allow you to draw, using them as a guide. I create a table with 30/31 boxes, with the day and date in each box. I then write in a meal for that day…

1F Vegetable lasagne and salad. 2S Pizza 3S Chilli and rice 4M Paneer curry, dahl and flatbreads
5T Chickpea and squash stew and couscous   6W Vegetarian shepherd’s pie with green beans and peas

I don’t always stick rigidly to the plan, but it at least gives me ideas as opposed to scrabbling around after a long day at work trying to think what to make.

Daily Logs

Ryder Carroll calls daily logs ‘the workhorse’ of your bullet journal. Just write down today’s date and all your notes for the day go here. You can write the day’s tasks and appointments or use it for journaling, whatever you want. Here’s what mine looked like the day after we came back from our short break in Somerset:

28.10.19 Monday

Had a sunny walk up Dunkery Beacon yesterday and then came home and went out for a curry. Nice to be back home, but have to think about work now. Planning to make time each morning to work on the blog.

  • Transfer money to AM for Xmas meal
  • Advertise bed on Facebook Hub
  • Ironing
  • Order Tesco monthly shop

As you can see I often write tasks on the daily log rather than on the ‘Tasks’ page. It just depends how I feel. Like I said, there are no hard and fast rules.

I hope that this has given you a little taster of how versatile a bullet journal can be. Ryder Carroll’s book gives other ideas e.g. custom collections and trackers, but I think I’ll leave those for next time.

Do you plan? What planners have you tried? Have you ever tried bullet journaling? Is there anything you’d like to know about setting up a good planning system? Just drop me a comment below.  

Want more ideas for simple living, saving money and being well? Then don’t forget to subscribe. You’ll also get my ‘Frugal Tips’ sheet as a thank you for signing up.

Ideas to Save Time and Money at Christmas

Stuffed toy reindeer sitting on a sofa

Christmas is fast approaching – that time of year when it is expected that you spend money you haven’t got to buy gifts that other people don’t need or want. I can hear the booing and calls of ‘Baa Humbug!’, but I honestly believe that this is true. I am not a religious person, but I feel that we have moved a long way from the real meaning of this time of year. There is so much pressure on us to go mad, spend lots of money and eat until we pop. But I truly believe that Christmas is optional or at least all of this excess is.

If I ruled the world I would make Christmas like the Olympics – just once every four years. I am not against the time that we are given off over the festive period, as this enables families to spend time together, but often the weather isn’t good and we all just eat too much and then slump in front of the TV for hours. I would rather have the time off when the weather is better, but as I don’t make the rules here are some ideas for moderating the excess that is shortly to come…

Just buy for the children

This is what we have done in my family for years. Once we all got jobs my mum suggested that we stopped giving presents to each other as we could all buy something for ourselves whenever we wanted to do so. I first met Mr Simple, fifteen years ago and he and his parents were still buying presents for each other. When his mother learnt that we no longer did that in my family she agreed that it was a good idea and so now they are ‘present-less’ at Christmas as well.

Keep the cost of each present to under £5 or £10

If you can’t survive the festive season without having several beautifully wrapped packages to open then keep the budget low by limiting spending on each present. There are Secret Santa schemes for several groups that I belong to and there is always a limit to cost of the gift.

Pick one adult, like Secret Santa, and buy for them

My physiotherapist mentioned this to me recently. He is part of a large sibling group, so instead of everyone buying for everyone else, they just buy a present for one of their brothers or sisters and obviously only receive one present. In this way it could be that although you get one present, it may be of more value and therefore something nicer than the several pairs of socks or smellies.

Give the money you would have spent to a charity

If you decide not to do presents, but still want to give something to someone, then give some money to your chosen charity. Find something close to your heart or maybe linked to Christmas, such as one that provides food or shelter to homeless people during this time.

Invest the money

As you won’t be spending as much money as you usually do, put the savings into a high interest savings account or even better, your ISA, in true financial independence style.

Prepare for Christmas 2020

Once the madness is over go shopping and buy cards, wrapping paper, etc. for next year as it will all be on sale at discount prices.

Share the cooking

Instead of one person taking all the responsibility for cooking, share it around and get someone to bring the starter, someone else the dessert, others mince pies, cakes, etc. Just let the host cook the main course, which will be the hardest meal to transport. There may be people who aren’t so good at cooking, but give them something simple to make, or maybe they can just bring the treats such as chocolates, crisps, nuts, etc.

So there we are, a few ways to save time and money at Christmas and hopefully make it all a bit less stressful and a bit less expensive. Whatever you’re planning to do over the festive season I hope have a lovely break.