When I was 16, I started blogging. Not daily, but close to. It was fairly easy, as I wanted to share random things with people, and Facebook wasn’t yet a big thing. I never had any well-defined structure, schedule, or style – they all evolved with time.
This current blog post will be significantly harder to write than anything I’ve written before, as right now it requires a structure (that I haven’t defined), and in the long term, it will require a schedule and consistency (this will likely be monthly).
However, the most challenging part that I have to deal with now is the actual content. I have to lay down some numbers and some stats that I don’t know/track yet. Irresponsible me, I know!
To start with, I’ll list the accounts that I can identify/remember right now:
Current account 1
Salary comes in here; credit cards are paid off from here. Doesn’t really carry a balance from a month to another, as I either spend or invest my income. Ok, mostly spend :).
Current account 2
This is used exclusively for household costs. This scheme is very useful when I am sharing the house with someone, as the amounts that have to come into this account are equal and easy to determine & track.
Current account 3,4,5…
I have several (6) other current accounts, which I will not list individually here, as they do not have balances, and they do not participate in my regular spending. The reason for having these accounts/debit cards is to experiment with the new “Startup Banks” that appeared in the UK in the last few years.
Savings account 1
A tax-free 3.5% / year account, where I contribute £200/month. Interest is paid annually, and I am planning to close it for something more lucrative.
Trading account 1
A tax-free “Stocks & Shares ISA” account, which only holds ETFs/funds at the moment. This gets a regular contribution of £250/month. The performance has not been brilliant, and the diversification is really bad, so this needs some work.
Peer to peer investment account 1
A peer to peer lending account which generates, on average, 5.4%. I’d like to raise this average to 5.8% before the end of 2017. This gets a regular contribution of £250/month.
The account is not tax-free, however, the income I get from it falls under my personal allowance.
Peer to peer investment account 2
This has £50 in it, lent out at 5%.
Property crowdfunding account
This has £50 (I know, right?) invested in a property in Bourne End, Buckinghamshire. I am yet to understand how the income model works on this kind of investments, as the numbers (yield + growth) still don’t add up in my head.
For reference, the average yield on the website is around 3.5-4%/yr.
Pension account 1
This comes from my previous employer, and I’m trying to move to “Pension account 3”. It currently has an approximate balance of £17000 (approximate because website is down for maintenance)
Pension account 2
This comes from my current employer and has an approximate balance of £600 (this website is down for maintenance too).
Pension account 3
This account is empty at the moment, however, I’m planning to consolidate “Pension account 1” (in a few weeks) & “Pension account 2” (after I change my job) here in the near future.
And now the depressing part
This is issued by American Express, has an annual fee (and amazing benefits). Since it’s a charge card, it does not carry a balance after the statement date. This is my main card
Credit card 1
This is issued by American Express too (I’m a fan) and has no annual fee. I used to have the premium version but downgraded to the free one and stopped using it. I’m only keeping it for the benefit of having history on the credit record.
Credit card 2
This is issued by Barclaycard and, and while I don’t use it, it carries a balance of £700. This is my first target for debt elimination.
Credit card 3
This is issued by Lloyds, and it purely exists because it allows spending overseas without paying FX-related fees (typically 3%). This carries a significant balance (£5000) and will require a bit of effort to eliminate.
It also carries an annual fee, which I’m not very happy about.
I apologise if this post was too long. As this blog evolves, I’ll try to find a more summarised format – I’m thinking a table, with potentially some graphs.
And related to that, I’m trying to find a UK-compatible version of Personal Capital – if anyone is aware, any suggestion is appreciated.