Ydobon's Independence Referendum

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GandK
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Re: Ydobon's Independence Referendum

Post by GandK » Mon Feb 23, 2015 3:48 pm

Glad the little one is doing well, and congratulations on reaching 100k!

There's a recent thread floating around about how long it took everyone to get to 100k, and then from 100k to 200k. Be sure to check it out and post your own timeline.

bottlerocks
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Re: February Update

Post by bottlerocks » Mon Feb 23, 2015 4:21 pm

Ydobon wrote: Went on a Lean Six Sigma training course, will be good for my CV and the project I am now working on should bring some quick wins that will make me look a lot smarter than I am :lol:
Are you getting your Green Belt through the program? I'm taking a SQC course right now where you earn GB in the spring, BB in the fall. I've been wondering if it's actually a marketable certification or not.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Feb 24, 2015 2:23 am

Are you getting your Green Belt through the program?
The current one is for yellow belts, so it's quite basic. On the upside, the project will only take a couple of months. Past that point, green belt is an option if I show any aptitude. I think it has applications for quite a few careers (for example, I'm coming at it from an IT service improvement angle and it seems quite applicable). For me, it's a way to show I'm maintaining skills before the next career step up.
Glad the little one is doing well, and congratulations on reaching 100k!
Cheers, although it might be a while before we reach 200k :lol:

Ydobon
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Location: Scotland

March update

Post by Ydobon » Sun Mar 22, 2015 8:27 am

Bless me Father, for I have sinned! March was a total joke in terms of ERE, but quite successful in terms of getting stuff done.

Positives:
  • Finished all significant spending for baby stuff, all furniture assembled and house returned to normal (for now).
  • Didn't get the job I applied for, but got some helpful feedback that I will be able to use for my next application.
  • Got food budget back under control after going way off track during February.
  • Got our bathroom redecorated to a great standard for a relatively low total cost. The work was far better than I could have achieved by myself (plastering etc.), which is important as we're not planning on staying here long and nobody likes to see a grotty bathroom when they're viewing a property.
  • Made a substantial amount of passive income (c. 33% of my monthly wage), ploughed a good chunk of this back into investments, with more to follow.
  • Read two light non fiction books (pop history sorts of things), think I need to work harder at expanding my horizons!
Negatives:
  • A piss poor month for savings, our cash total increased by next to nothing, although investments were all good.
  • Was relatively successful cutting caffeine, but need to work harder to maintain it.
  • Niggling back pain after a back injury last year doesn't seem to be going anywhere, frustrating.

March
  • Net worth exc. Pensions: £31,153.05 (+£1,263.57 from last update)
  • Net Worth inc. Pensions: £103,934.85 (+£2,304.36 from last update update)
  • Savings rate: no idea, spreadsheet is duff, will redo.
  • Progress towards goal: 20.33% (+0.46% from last update). Target £500k.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Thu Apr 23, 2015 3:02 pm

I would like to learn German - has anyone tried Duolingo?

April:
  • Liquid Assets: £15,982.55 (+£1,301.59 from last update)
  • Net Worth: £105,240.17 (+£1,305.32 from last update update) <<<--- mostly Mr Market
  • Savings rate: 57.39%
  • Progress towards goal: 21.06% (+0.73% from last update). Target £499,700. <<<--- I have reviewed our budget and we spend less than I think. I will be reducing the target required by £1/mth/year from now on in.
Positives:
  • Wife and baby remain very healthy, this may be my last update as a DINKY
  • Got a free 270 mm of loft insulation installed, the flat feels way warmer already. The weather has also improved, heating has not been used this month
  • Removed the old washing lines from the back garden and replaced them with shiny new ones, only a couple of £ each
  • Kept up the momentum with gambling offers and had some great luck (including £350+ from risk free offers)
  • Learned how to profit from several more complex horse racing offers, this has expanded my range greatly. It is, however, bringing its own complications, horse racing requires a far larger float to allow for leverage at higher odds
  • Started walk commuting to work (ok, started today) :lol: The money saved on bus tickets will be ploughed into investments
  • Improved my diet quite a bit. Sticking to high protein, low fat and carb lunches that leave me feeling a lot fuller. I have also stopped drinking alcohol on work nights and have cut my overall consumption quite a bit.
Negatives:
  • Loft insulation installers damaged a lighting circuit that had to be replaced. Original electrician tried to scam us into wasting £3,000+ on a full rewire! Luckily I got a second opinion (who vociferously disagreed with the original assessment). Some people, eh? :o
Last edited by Ydobon on Tue May 26, 2015 5:44 am, edited 4 times in total.

DSKla
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Re: Ydobon's Independence Referendum

Post by DSKla » Thu Apr 23, 2015 4:20 pm

I've tried duolingo for Spanish and highly recommend it as a free, easy access way to get started. At some point you will need to find conversational opportunities, but if you have little to no German, it'll give you the building blocks.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Mon Apr 27, 2015 2:40 am

Thanks DSKla, it's good to get some 'real life' feedback for a product before giving it a try. Then again, as it's free, it's not as if I have anything to lose.
  • Electrics fixed (we ended up paying c. £100 vs. the £3,800 quoted!). No problem with that, the works that were completed are ones that you're legally obliged not to carry out unless you are qualified :o
  • Walking to work again this week, day 1 felt a lot more comfortable with a wicking running Tshirt on, wore cotton last week and got too warm
  • Have adjusted our budget for a couple of things (reduced travel and heating costs, increased home maintenance costs)
  • Increased monthly payment to S&S account, we'll be investing a minimum of £850 between pensions and tax-priviledged accounts from now on (minimum 26.69% savings rate)

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue May 26, 2015 5:42 am

May:
  • Liquid Assets: £17,205.64 (+£1,223.09 from last update)
  • Net Worth: £107,190.88 (+£1,950.71 from last update update)
  • Savings rate: 62.22%
  • Years to go vs. average +£/m: 20.10
Positives:
  • I am a Dad! Healthy baby girl born a week ago, luckily for her she has inherited her mother's looks :D
  • 5 weeks of paternity leave (statutory leave + long bank holiday + a big chunk of my annual leave budget)
  • No household maintenance or repairs required
Negatives:
  • Having a baby is proving extremely challenging to my sensibilities as an environmentally friendly human. Hopefully we will be able to get her onto the fabric nappies soon, but it seems like every day involves full bins, several loads of laundry and having the heating on at times when we never would have considered it previously. Still, what price do you put on a happy sleeping baby? :lol:
  • Having a baby is very expensive! There are more gizmos, necessary items and consumables for babies than I could ever have imagined. Some are absolute crap (for example, a vibrating bouncer that takes fancy batteries that cost 1/3 of the cost of the seat), some seem daft, but are indispensable (like a breast pump that cost £100, but turned around my wife's experience of childcare overnight!)
  • Passive income from gambling promos has died right down as the main soccer leagues have finished for the year, this will mean a drop in income until August. I have also been banned from a few bookies for making too much free money :o
Looking forward to my remaining 4 weeks off, will hopefully find some time to read with a baby perched on my arm and get in some exercise as well.

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vexed87
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Re: Ydobon's Independence Referendum

Post by vexed87 » Tue May 26, 2015 6:27 am

Congrats Ydobon, both on your new baby and being so good at making money that you got banned :lol:

I look forward to hearing how baby impacts your plans for ERE as I'm guessing its not too long until I'm in your boat too! ;)

Ydobon
Posts: 412
Joined: Fri Aug 29, 2014 9:15 am
Location: Scotland

June

Post by Ydobon » Tue Jun 23, 2015 1:46 pm

Quick update

June:
  • Liquid Assets: £18,052.17 (+£814.53 from last update)
  • Net Worth: £108,289.48 (+£1,066.60 from last update update)
  • Savings rate: 42.61%
  • Years to go vs. average +£/m: 22.51
Positives:
  • Paternity leave was *brilliant* fun, a great combination of sleep deprivation and hugs :D
  • I am starting to fill in the blanks in my financial planning and am now tracking baby-specific and general expenses. I figured that I couldn't save anything until I knew what I was spending. Grim reading so far, but sticking with it
  • Went for a 5k run yesterday, my first exercise in goodness knows how long
Negatives:
  • Work messed up my salary, I have been short changed by something like £600. I will get it back, but less than impressed
  • June was one of the spendiest months of my life! Still, 40% feels like a success this month

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Thu Jul 23, 2015 3:16 pm

July:
  • Liquid Assets: £19,560.72 (+£1,149.47 from last update)
  • Net Worth: £109,896.69 (+£1,662.21 from last update update)
  • Savings rate: 53.15%
  • Years to go vs. average: 21.79

thrifty++
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Re: Ydobon's Independence Referendum

Post by thrifty++ » Sun Aug 02, 2015 11:40 pm

Ydobon have you thought about including your student loan, home equity component of your mortgage payments, and pension payments into your savings rate? I include my student loan payments and superannuation payments as part of my saving rate. Rather than make me feel like I can get away with less I find it more motivating to save to a greater extent when I see a good saving percentage. After all it does go towards increasing the net worth.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Aug 04, 2015 3:50 am

thrifty++ wrote:Ydobon have you thought about including your student loan, home equity component of your mortgage payments, and pension payments into your savings rate? I include my student loan payments and superannuation payments as part of my saving rate. Rather than make me feel like I can get away with less I find it more motivating to save to a greater extent when I see a good saving percentage. After all it does go towards increasing the net worth.
That's an interesting idea Thrifty++ and I do include elements of what you have suggested. My pension payments are included in my savings rate as they are direct contributions into equities. I am less sure about home equity and student loan repayments. Both would make our savings rate look far more impressive than I feel that it is. Home equity would add roughly 12.5%, student loans 3.05% (an extra 15%+).

Home equity I feel more comfortable with, student loans not so much. Because our loans are income contingent, they are effectively an optional graduate tax. If we earn too little, we won't pay them and while they will grow, have interest added etc., the proportion of our wages that we pay towards them won't increase even if we paid nothing for years and the amount due increased dramatically). It is possible that I will 'retire' without paying off my student loan, although less likely if my wages increase over time.

The effect of including both categories would be to raise my savings rate for the current calendar year to just over 65%. That feels pretty damn good :D

thrifty++
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Re: Ydobon's Independence Referendum

Post by thrifty++ » Tue Aug 04, 2015 5:25 am

Boom 65% is huge! So that really is quite good then. I think it is genuinely fair enough to consider those other elements as savings. Just not in a narrow definition of saving it into a bank account.
Yep my student loan is similar. I don't have to pay any student loan until I earn over $19k and then its 12%. There is no interest on it at all. So given those things I shouldn't care that much about it. But it still bugs me as if I leave NZ for 6m or more then it gains interest. And $19k wont be enough passive income for me to retire on. So im keen to get rid of it.
Do you have interest on your student loan in Scotland ?

henrik
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Re: Ydobon's Independence Referendum

Post by henrik » Tue Aug 04, 2015 6:43 am

I also think it makes sense to count loan principal payments in savings rate, because 1) your net worth goes up and 2) when you're done with the loans that same monthly/yearly amount will be available to go directly into investments/savings. I'm done with student loans, but I have a mortgage. I consider the principal payments as savings and interest as an expense.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Aug 04, 2015 6:51 am

I also think it makes sense to count loan principal payments in savings rate, because 1) your net worth goes up
I *do* factor the change in net worth into our net worth calculations, I just have a mental block re. adding it to savings rate :)

I try to avoid too narrow a definition of savings and wealth, but I think that it can be easy to mentally discount certain forms. For some reason I find stocks (lines of code in a broker's platform) less tangible than our home, which is a massive pile of bricks!

My loan does have interest applied and the boom in central bank money printing has helped to keep it low. For my particular flavour of loan, the amount is either the lower RPI, or the average of a pool of bank rates +1%. Thanks to the negligible BoE base rate, we're paying 1.5%.

I would like to pay it off, but it still feels like easy money. Our mortgage rate is 3.15%, I can get 4.8% after tax from relatively secure P2P lending, 4% after tax from current account offers etc. etc. The threshold for repayment is £17,335, we pay 9% of salary after this.

Where possible, I try to save and invest all of our money in a tax efficient manner. Currently our pensions and all other equity holdings are protected from tax. We pay tax on cash savings and P2P cash, but this is a smaller part of our portfolio and P2P will hopefully be sheltered after the budget next April.

I will be very disappointed if we're paying any tax on our investments or are in a position where it is counted as 'earned income' by the time we reach FI.

henrik
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Re: Ydobon's Independence Referendum

Post by henrik » Tue Aug 04, 2015 8:18 am

Well, since I don't track all expenses, for me,
SR = (ΔNW - investment gains) / income
i.e. any change in NW caused by me and not the market are automatically part of the savings rate :)
I guess it's best to use whatever method seems fair to yourself and motivates you most.

I am also not in a hurry to pay any extra towards my mortgage right now since the interest rate is set at 6m EURIBOR + 0.5%, which right now means exactly 0.549% :) It's an adjustable rate mortgage though, so obviously things can change.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Aug 04, 2015 8:21 am

Wow! 0.549% is tasty :)

I expect our rate to drop to 2.25% in April, a great change from the 4.99% we were paying in 2012.

thrifty++
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Re: Ydobon's Independence Referendum

Post by thrifty++ » Tue Aug 04, 2015 2:54 pm

Ah so your student loan laws in Scotland are not too burdensome either. I feel sorry for people in USA with student loans.

That sounds like a huge interest rate on p2p for low risk. I have noticed this p2p being mentioned by a couple of people on this forum now. I might check it out. Does this stand for person to person?

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Aug 04, 2015 2:57 pm

Yes it does. The particular site I use has never had a lender lose a penny of capital or interest, but it doesn't offer the best rates. These tend to come with greater risk that I don't feel the need to take on. More than enough risk with our stocks and bonds ;)

thrifty++
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Re: Ydobon's Independence Referendum

Post by thrifty++ » Tue Aug 04, 2015 4:03 pm

Ah ok. There is only one provider in NZ of P2P. I have just been doing some research. Interest rates are massive. Lowest is 9.99% for the lowest risk lending. But interest rates in NZ are generally quite high I think. I have a deposit in a massive commercial trading bank ( very low risk) earning 4.15%.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Wed Aug 05, 2015 3:16 am

NZ must be thriving if people can afford 10% for P2P loans? That is akin to the amount that I was getting when I used a P2P platform that gave loans to Slovakia, Greece, Spain etc. (fairly subprime in Eurozone terms).

thrifty++
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Re: Ydobon's Independence Referendum

Post by thrifty++ » Sat Aug 08, 2015 5:11 am

mm well it has been thriving I supposed. 8 months ago we were supposed to have a "rock star' economy is what they called it. Now suddenly everything seems to be turning to shit and looming recession is the phrase of the day. But the p2p platform is brand new so who knows they might not be getting any takers at that interest rate yet. There is no secondary market for p2p here yet. So your stuck with them till the end once you buy.

Ydobon
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Re: Ydobon's Independence Referendum

Post by Ydobon » Tue Aug 11, 2015 1:25 am

A day I was not particularly looking forward to has arrived, we are thinking about moving house. The 'joy' of seeing your hard saved FI money being transubstantiated into a pile of bricks that you get to pay for for another 25 years :P

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Egg
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Re: Ydobon's Independence Referendum

Post by Egg » Tue Aug 11, 2015 1:34 pm

Ydobon wrote:Yes it does. The particular site I use has never had a lender lose a penny of capital or interest, but it doesn't offer the best rates. These tend to come with greater risk that I don't feel the need to take on. More than enough risk with our stocks and bonds ;)
Ratesetter? That's the one I use and pleased with it so far. Interested to hear more about your P2P experience/thoughts.

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