Progress Update – February 2018

Today is the 1st March and I’ve been snowed in! Let’s hope Spring comes soon but in the meantime, it has given me time to review progress for February and allocate my monthly investments.

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February is a short month but has still proved to be quite expensive. I’ve attended a wedding and a birthday lunch, booked flights for our summer holiday, had my car serviced and renewed my passport. I haven’t touched any savings for these expenses or used a credit card but I did dip into my agreed overdraft. This is a bad habit so my goal for March is to stay out of it!

Having tracked my net worth for 6 months now, I decided to update the figures for those assets that are based on estimates. I used Zoopla to estimate the value of my property (excluding my new rental as that estimate is based on the recent mortgage valuation and therefore is reasonably current). I used 3 free valuation websites for an estimate for my car based on it’s registration number, current mileage and condition and I used the lowest of the 3 although they were all within £1,000 of each other.

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With these new values in my assets are worth £310k and I have liabilities of £174k giving a net worth of £136k, an increase of 3.4% compared to last month.

The majority of my liabilities are mortgages at 97% on low rates but I still want a clear plan to pay them off, preferably by the time I’m 45 years old – 13 years and 6 months away! As the other 3% of liabilities are shorter term debts for car and furniture finance (but still on low or zero interest rates) I want to clear them first with a goal of the end of this year. That will also give me additional cashflow with which to pay off the mortgages in 12 years which equates to just over £1,100 per month.

The rental property generates around £300 per month in surplus funds and by the end of this year I will have built a healthy emergency pot allowing me to redirect that surplus to paying off the mortgage. Then I need to find an additional £800 per month to reach my goal, which will definitely be achievable by December!

 


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