I’m aware that I’ve recently posted a mid-month update, but despite the short time span, I’ll try to make this end-of-November post relevant and comprehensive.
Some background info
I’ll start with a bit of background information. I’m building my monthly report and adding the numbers while writing this post, so at the time of writing this paragraph, I don’t know what it will look like. I won’t expect November to be a spectacular month for my finances, and will explain why here.
I used to split my fixed costs (rent, utilities, groceries, etc) until this month, when my ex-girlfriend moved out. We are both on the rental contract, but as the separation was mutually agreed, I’ve decided that I will handle the costs until the contract’s expiration date.
Other than the above, Black Friday and Cyber Monday were not good news for my credit cards either.
What should this post contain?
I’ve had a lot of thinking around the contents of the monthly update. My best guess is that it will take a few iterations until I will find a format that makes sense. The candidates that I found for content sections, so far, are:
- Expenses, grouped by category
Living in the UK, I’m quite limited in the ways I can automatically track my spending. I have been a YNAB user until they have changed their business model to place US customers at an advantage. The only app that I could find, which automatically syncs my transaction data, is Yolt.
I think this information is very useful to me and it can help me eliminate bad spending habits, but not very interesting for the readers of this blog.
This is fairly similar to track using Yolt, as long as we are talking about rolling/credit card debt. Luckily, I don’t have a student loan, a leased car, or a mortgage.
- Investments, grouped by account/type
To date, I could not find a reliable way to track my investments, other than logging in the accounts once a month, and checking the numbers.
- Investments, with a chart showing evolution over time
This brings a similar challenge to the previous point. Still working on that…
- Overall summary (earned X, spent Y, invested Z)
I think this should be the ending of these posts, showing what percentage of my income I managed to save / invest, and eventually how my “net worth” looks like.
The bad news: Debts
I have recently paid off a long-term loan that I have since 2016, so in the bigger picture, my debt graph is going in the right direction. If I were to depict my debt over the last 18 months, it would look like this:
Pink is long term unsecured debt, blue is credit card debt.
Other than that, I’ve got rolling debt on two credit cards:
|Debt to whom?||Amount owed|
|Credit card 1||755|
|Credit card 2||4383|
I’m tackling my debt with the Snowball method – getting rid of the smallest one first. Therefore, I’ve set my next statement of 755 to be paid in full, which will happen in a few weeks. This means that the next report should look much cleaner!
The good news: Savings & investments
The table below only shows minimal savings, as I’ve had my P2P investments paused for a few months. One of the P2P monthly contributions will start with the 1st of December, and will be reflected on the December report.
|What?||This month||Current balance|
|Investment (Cash savings)||200||5296|
|Investments (Property Crowdfunding)||0||49|
|Old pension account||0||17841|
I will also write another post explaining each of these accounts, how much return do they offer, and how am I planning to optimize them.
The overall picture for November
As predicted at the beginning of the post, this month offered no surprises. I know my expenses are higher-than-usual, and there is little I can change in the short term. My medium-term plan is to drive my debt down to 0 in a steady way.
As a savings ratio, this month I have saved just over 9% of my income. Pretty poor if you ask me; but this may be due to the higher-than-usual monthly income. In a normal month, I’d expect the ratio to be closer to 20%.
Happy December everyone!