From Debts to Assets: Part One – Income, Debts & Outgoings

Hey Everyone, & Welcome to the Blog 👊🏼

It’s finally here… Part One of the series, and we have plenty to go over,

We’re gonna start the series straight off with all the incomings and outgoings of my life!

Wages, Debts, FI account at Current, and what’s the plan for the blogs going forward so that we have some structure to the series,

Let’s get straight into it with a bit of a run down of Incomings

Wage

At present my incomings consist only of my wage, I don’t have any extra jobs, or a side income, I don’t make money from blogging or any other online function

Currently I am on furlough leave, so my wage that I will receive on Friday 3rd July will be relatively similar to the previous month at around £919

However, we are scheduled to go back to work on that same day, and my hours will be around 30-40 per week upon arrival back into the business, on an hourly rate of £8.90p

I must say, that in normal circumstances I look to hit around 43hrs per week as I find this give me a take home wage of close to £1300 which I have found to be a great amount in regards to outgoings and saving etc, but we’ll get into the outgoings and see what I would need in order to make this work

As mentioned previously, I am currently looking to gain a promotion in work to a salaried position, or a job with a salary, so this may change over time

For the purpose of outgoings I’ll base my wage around 30 hours per week for the time being going forward after this pay, we will of course adjust this over the coming episodes of the blog

So Wage post Friday 3rd July will be 4 weekly

30 hrs (4 week period) x £8.90

Gross Pay: £1068

Tax: £31.29

NI: £50.40

Net Pay: £986.31

I used http://www.overtimecalculator.co.uk to work this out, and have always found its very accurate,

For a context, going forward each month we will have an episode of the blog on payday weekend, where I will go over my actual pay, what I’ll be paying out, what I’ll be saving and any adjustments

We will also have a blog around a week after payday in which I will look into my new credit score, if it’s changed, if it’s got better or worse, what I need to do different to increase it etc

So…that’s the wages out of the way, let’s talk about the next subject, the debt!

I have previously done a post about this, though I feel that this will be more in depth, and have a better breakdown, as I do feel previously it wasn’t as detailed as I could have made it

For the purpose of the blog all the loans will just be letter based, and I won’t be disclosing who the loan is with

The Debts

Loan A – £5414.86

This is my car loan and is a 5 year loan with around 2 years left to run! I’ll also say that as my credit was exceptionally poor at the time of purchasing the car i had a £7k loan that will cost me £14k overall

Current Monthly Payment – £246.13p

Estimated Repayment Months – 22 Months

• Loan B – £663.94

Current Monthly Payment – £10

Estimated Repayment Months – 67 Months

• Loan C – £916.46

Current Monthly Payment – £10

Estimated Repayment Months – 92 Months

Loan D – £884

This loan is to a family member & changes on a monthly basis with how much I pay them, however once back into work properly I will be putting a set payment amount on this

Expected Monthly Payment – £50

Estimated Repayment Months – 18 Months

• Loan E – £450

As with the previous loan, this is to a family member also & changes on a monthly basis with how much I pay them, however once back into work properly I will be looking to pay £50 per month

Expected Monthly Payment – £50

Estimated Repayment Months – 9 Months

Loan F – £200

This is more of a payment to my partner, for a previous purchase, she is happy to wait, but we will look to pay this off

• Credit Card 1 – £200

The Credit limit on this card is £200 so we are currently at the peak and will be looking to clear as soon as we can

Expected Monthly Payment – £15

Estimated Repayment Months – 14 Months

Credit Card 2 – £150

The Credit limit on this card is £150 so we are currently at the peak and will be looking to clear as soon as we can

Expected Monthly Payment – £15

Estimated Repayment Months – 10 Months

Contingency – £1000

I have set a contingency amount of £1000, from time to time a debt arises that I have forgotten about or something new comes up, I will for now say there could be upto £1000 extra to pay on top of these loans to give me a figure close to my overall debt

Overall Debt Amount: £9879.26p

I thought I would be interesting to put a total amount of months estimated to pay each debt off, of course we are planning on doing this much sooner and will be looking at ways to clear these debts at a much more efficient rate,

It will be good to see when we pay a debt off, how much sooner we paid it off as opposed to the estimated amount of time it should have taken

Okay, we’ve gone over the wages / incomings and we now have an amount set out as to what is owed in debts, let’s talk about monthly outgoings & then take a look at how things will be paid off

Additional Outgoings

• Rent – £150

Currently I am living at my parents house, so my rent is not a crazy amount, this is paid on a 4 weekly basis

• Phone Bill 1 – £40

Phone Bill 2 – £37

You have read that correctly! I currently have 2 phone bills that come out of my account monthly, with one of them being for my previous account which ends in November

• Car Insurance – £27.57p

• Petrol – £60

Nursery Costs – £250

These costs are currently £0 as my partner is still on furlough leave and so we are not in need of child care, however this will soon change once we are both back into work

Additional Outgoings (w/ Nursery) – £564.57p

Additional Outgoings (w/o Nursery) – £314.57p

I’ve got to say at this point seeing everything written down as it is it’s a bit overwhelming with how much there is to pay off along with my usual/ additional monthly outgoings

But, it’s a journey, and there will be bad months & good months, in the end it’s working towards the overall goal and I’m excited for that

Let’s break this down into what is going to be paid out per month, and see what’s left after each payment, from there we can see if changes need to be made to the payment plans etc

For this well use the current furlough wage to be sure we have added everything in

Monthly Wage – £919

• Rent – £150

• Phone Bill 1 – £40

• Phone Bill 2 – £37

• Car Insurance – £27.57p

• Petrol – £60

• Loan A – £246.13p

• Loan B – £10

• Loan C – £10

• Loan D – £50

• Loan E – £50

• Credit Card 1 – £15

• Credit Card 2 – £15

Total Outgoing Amount: £710.70p

Total Amount Left: £208.30p

That’s the breakdown, with all the outgoings I have both via Debt Payment’s & my usual bills etc I will have around £208 left per month

It’s important to remember that this is based on my furlough wage, so although currently it’s only £208 left, once I am back to the level of hours and pay I was at pre COVID it will be a lot different

Say I can get back to the £1250 – £1300 mark that would give me a left over amount of between £539 & £589 which would give me a substantial amount to pay towards debt or save etc which we will work out on a monthly basis.

Finally I want to get into my Football Index Portfolio,

For those of you that don’t know what Football Index is, it’s a gambling / betting platform, but not like a traditional bookie in which your bet ends at the final whistle

You bet on a players future, and the bet lasts 3 years, like a stock market you invest into players, buying low and selling high, whilst making dividends on the way

I have decided to use this route to save my money for the fact that with a bank I may get interest of 0.01 – 0.5% or what ever the rate is these days, however there are much greater returns to be possibly had on the index

If you haven’t tried it, and would like to you can sign up via http://www.footballindex.co.uk and use Referral code 452568 & in return you’ll receive £10 free when you deposit and spend £10 on shares! The perfect way to start your journey!

If you do want to try it and you do use my referral code then I would appreciate it, it gives me an extra £10 towards shares and my overall goal

Please do remember that Football Index is a gambling platform and not an investment site, and like me understand that you could end up losing some money,

However for me the risk to rewards ratio is far greater than that of a bank and it’s an exciting time to get involved

I recently had to take some funds out of the index, I have kept in there £350 as a start to the journey, but I have previously said that by the end of 2020 I would like to have 10x that amount and be sat at around £3000 saved / in shares

My current portfolio, I will update this every time I buy more shares along the journey!

For now I think we have covered everything that is important at the start of this journey, you know the Incomings, you know the debt, outgoings and current FI portfolio

Each month we will have a Blog on the weekend of payday explaining what I have been paid, recapping the income and outgoings and also looking at where we currently stand with debts etc

Well also have a blog each month going over my new credit report, checking all the latest updates, if it’s gone up or down, and how I will look to improve this

Finally there will be blogs around houses I have looked at for inspiration, my tips for saving, Football Index & everything else I speak about

If you have enjoyed the blog please be sure to hit the like button on this page; follow the socials for all the updates & be sure to comment any experiences you may have had in the same areas

I will be leaving some affiliate links on the blogs, mainly around football related products, but I’ll also add in an amazon link for anything I may purchase along the way to help me with this process, so feel free to sign up to Football Index or footstock (checkout footstock at the bottom of this blog) via the links, and purchase via any links I leave,

This of course helps with reaching my goal quicker, I don’t expect people to use them, but your free to should you wish

For now, have a great rest of your Sunday, stay safe, stay positive , and I’ll see you on the next blog ♥️

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Published by Drage162

Hi Everyone, I’m Jack, I’m 32 from the UK and welcome to my blog Follow my journey as I travel through different stages in life creating a better future for myself and my family Along the way you can take a look at my weight loss progress including how I’m achieving my goals, my weekly reviews & my future plans I’ll take you through my finances! The good, the bad & the ugly as I work to go from £9500 (as of Feb 2021) in debt with no assets to debt free and something to show for myself I have ups and I have downs, days I feel like I can achieve everything and days where I’m not motivated at all but I’ll document that and look to inspire you guys to achieve your goals too Let’s smash 2021 and make it the year we really take control of our lives and set the foundations for an amazing future ♥️

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