Happy New (Financial) Year

The 6th April has come around and here, in the UK, it is the start of another new tax year.

Everything has been reset, and for me that means my expenses mileage clock has set back to zero too. Last year I amassed about 3500 miles. That doesn’t sound like a lot but when you start talking money it accounts for over £1500 additional income. This forthcoming year I should be nearer the magic 5000 mile mark, which will equate to over £2200 extra income. Sweet.

Unfortunately my savings situation doesn’t allow for me to get all giddy over the thought of tax-free savings. Maybe next year with that one.

I hope you have your budgets and financial goals set for this forth-coming year. I certainly have. My budget is maintained over a rolling 12 month period i.e. on the first of every month I review this month’s budget whilst updating the monthly budget for the same month next year. Using YNAB certainly helps me with that one.

My financial goal for this coming year is to end the year with a positive net-worth. This excludes the inherited debt burden which will be cleared by mid-2017.

Happy New (Financial) Year to all my readers.

 

Loving the 14th

So the 14th March has come and gone. What was so significant about this then? To some, it will have no significance. To others it may well mean a lot. But to me I get very excited around the 14th of each and every month!

Why? Quite simply the 14th of every month is the day I can reconcile my YNAB budget and accounts,  with some degree of certainty, for the remainder of the current month whilst being able to plot the following month’s anticipated income and expenditure so I know where I am with our money. Also, as a side note, reconciling my accounts using YNAB takes me a matter of minutes (about 15 in total) to complete!

The 14th is the day when my Sky (please don’t judge – I was foolish once and the contract is up in September!) estimated bill becomes the actual invoice due, and our cashback credit card gives us some money back for using it relentlessly (so long as we pay, in full, the amount owed – which we do, religiously!). Everything else between the 14th and the end of the month is accounted for down to the penny, with the exception of car fuel and food shopping costs. They are always a variable cost, despite being well budgeted for.

The scores on the doors for this month is that if we stuck rigidly to the budget then there is scope for a saving of £942. In reality though that will not be achieved. We are going on our family holiday in May and the wife is already eyeing up new wardrobes for the kids and my car needs some long over-due repairs prior to it’s MOT test at the end of April. So I fear that my joy at having a massive chunk taken out of the family debt burden will be somewhat short-lived. At least I have already sown the seeds of managed expectation on how much should be spent on any new clothes – at least that may not be as painful as it could be come the end of the month!

Do you have a favourite date of the month when it comes to managing your finances?