All about the finances

Our lifestyle CV – for a bit of background

  • We are homeowners (paid off last year!)
  • We holiday abroad around 3-4 times a year (mainly extended weekends or weeklong)
  • We eat out on average twice a week (mostly under £20 a pop for the 3 of us)
  • Our biggest expense (childcare) has been slashed as of September, due to government help which will therefore see my savings rate hopefully increase (from that below)
  • We’re a primarily vegetarian household
  • We’re non-car owners

My financial status – understanding my numbers

  • I’m responsible for my own pennies (Mr F has a good hold of his finances, phew!)
  • I generally contribute 50% to household costs (we don’t count every penny)
  • I’m a basic rate income tax payer (as is Mr F)
  • I have no debt (neither does Mr F)
  • This list of bullet points makes us sound more similar than we are, that’s for sure 🙂

My most immediate financial goals

  • To get to £100k net worth by the end of the year (bit of an arbitrary but we’ll see!)
  • To max out my ISA (£1000 left to invest, but see next bullet point)
  • Since September, I have a new goal to invest in a property within the next year or so

My financials

(August end 2019 update here. September end 2019 update here.)

This is as of the beginning of August 2019. Links to monthly updates below.

Cash accounts £47,000
Cash at 2-year+ fixed rates £28,200
ISA tracker funds £13,000
Peer lending £3,200
“FI stash” £91,700
Current savings rate: 50.63%*
House equity £144,000
Work pension (including lump sum)**

TOTAL ASSETS (excluding work pension) £235,700
Total assets including pension £414,400
***Theoretical years to FI: 6-7 years***

*Savings rate = Amount saved/invested each month (including work pension) divided by take-home pay (plus work pension). The amount saved does not include my employer’s contribution to pension. Edit: I’ve since updated my definition (and calculation) of the savings rate.

**Work pension is mainly comprised of a final salary (i.e. defined benefit) pension, and as such, the calculation is based not on a concrete ‘value’ but on the (cautious) assumption I’ll live 20 years from the date of retirement (modelled on a retirement date of 57 years). I contributed 14 years to this scheme before it ended.

***Edited 18/9/19: Pension recalculated based on arrival of 2019 statement… £254,056 – wow. It isn’t that much of an increase per year but I’ve calculated on a 20 year basis. This brings my total assets (based on August start figures) to £489,736 – Must actually check this is all correct even if/when I leave my job!