April seemed to go by in a bit of blur. I’m not sure if that’s a good thing or not. Let’s see how I did in terms of my Net Worth and working towards my goals.
As usual I’ve got last month’s figures in brackets for comparison. I’ve got my Defined Benefits Pension in there based on twenty years worth of money if I start drawing it at 60. I used to track how I was doing with my net worth minus the house equity. This was to see where I was in my quest to become mortgage neutral. Now that I’ve well and truly achieved that I don’t feel the need to track that any more. Instead what I’ve decided to do is see how I’m doing with my mortgage balance compared to my AVC balance. The reason for this is that I made a decision to mostly stop overpaying my mortgage. Instead I used that extra money to put more into my AVC fund. So hopefully I’ll start to see my AVC fund increase in value and more slowly my mortgage balance come down until they meet at some point and I have enough in my AVC fund to clear my mortgage when I retire. That’s the plan anyway.
Mortgage £93,361.71 (£93,853.99)
Cash £35,708.53 (£35,668.12)
Defined Benefits Pension £130,653.60 (£130,653.60)
AVC’s £12,464.24 (£11,634.04)
House £250,000 (£250,000)
Total £490,020.64 (£485,222.29)
Net Worth including house equity
£490,020.64 – £93,361.71 = £396,658.93 (£391,368.30)
AVC Fund vs Mortgage Balance
£12,464.24 – £93,853.99 = -£81,839.75
I’m pretty happy with those figures. It doesn’t seem five minutes since I was delighted to get my shares above the £50k mark, and now I’m above £60k. My net worth including the house equity is edging ever closer to £400k, which will be a nice figure to get to. It doesn’t really mean anything, as it includes twenty year’s worth of my defined benefits pension and the house that I live in. Neither of these things can I use at this stage to skip away from work without looking back. FIRE is a big thing to aim for though, so you have to play tricks with yourself and celebrate random figures that you achieve.
There’s obviously a long way to go until my AVC fund value gets anywhere near what I owe on my mortgage. As long as I get there by the time I’m 60 then I’ll be happy with that. I took the mortgage out until I was 70 but with the plan to over pay it and get it cleared by the time I was 60. I’m hoping I’ll achieve the same outcome doing it this way, but that compounding can do a lot of the heavy lifting for me. With a base rate mortgage it makes no sense to clear the mortgage quickly, but I don’t think I’d be comfortable with still having a mortgage when I’d stopped working.
It’s felt like I’ve been spending a bit more recently. April is an expensive month anyway in terms of my car. The insurance, tax, MOT and service are all this month. With a bit of jiggery pokery I’ve managed to get the car tax into May’s figures by paying it right at the end of the month on my credit card. There’s still a lot to pay out in one month though. Luckily the car got through the MOT without anything too horrendous. £250 for a ten year old car to pass the MOT I didn’t think was too bad. I can’t really think what else I’ve spent. A takeaway I think and a few treats to celebrate the slight easing of lockdown. May is already proving much more expensive, but as that includes a week’s holiday from work I’m not going to worry too much about that. And anyway that’s a confession for next month’s review!
I think that will do for the money side of things now. Let’s move on to see how I did with the goals that I set myself. Here’s what I said I would be working on in April
- Finish Cien días series 2. PASS This is all done. I really enjoyed it and this wasn’t a chore to do. I’m sure my Spanish must be improving, but I have to be honest I can’t really see it myself.
- Complete up to week 5 of Couch 2 5k PASS I’m still really unfit, but crucially my hip is holding up. If I walk for too long my hip hurts, but with the amount of running I’m doing just now I don’t feel it at all on my runs. Long may this continue.
- Read the Moscow Rough Guide. FAIL You would think with only setting myself three goals this month I would definitely get them all done. Apparently not. I think maybe it just seems too far off for me to be interested in reading the guide book. Or maybe I’d be better just dipping in to various sections as and when I want to research particular things. We have made a bit more progress on planning, I just haven’t read the book.
So let’s set myself some things to work on for May.
- Finish couch to 5k. I’m on track for this. As long as I don’t get injured again I should be able to finish this no problem. The latter part of the programme is building up the length of time you run for, with no walking at all. I’m being careful to follow the schedule and not rush on ahead and get injured again.
- Cross train twice a week. I’m trying a new strategy to stay injury free. Instead of running four times a week I’m going to stick to three times weekly and put in some walking or cycling on top of that. I’m hoping going out on the bike will strengthen my hip without putting any strain on it. That’s the plan anyway.
- Start a new Spanish series. I have picked one and added it to my list on Netflix. I can’t for the life of my think what it’s called, but I know I’m good to go with it.
- Weigh under ten and a half stone on 1st June. Going back to an old favourite of mine. I was ten stone 7.2lb on the 1st May, however I’ve had a week’s holiday since then. The fact that I haven’t been on the scales since the first of the month probably tells you all that you need to know. I’m a bit annoyed with myself with this one as I was doing so well. Time to get back on it.
I think that will do for the month. As usual no money goals in there, which seems ridiculous when this is supposed to be a FIRE blog. I never really see the point though. I’ve got things set up how they need to be. Unless I earn more then I’m not going to be able to save and invest more. I’m working on the earning more angle with my 9-5, but realistically that’s probably going to take a bit of time to come to fruition. I have everything automated in terms of my investments, so there’s no point setting myself goals around those. And randomly trying to achieve a certain level of net worth seems a bit pointless. The markets will do what they will do, and whilst I’m happy when I hit certain random figures, setting myself goals around that doesn’t seem like a good use of my time.
I’m happy with how I’m progressing in my journey towards FIRE. I’m working on the things that are important to me, albeit with certain recurring themes around my weight, which to be honest have been a work in progress for most of my life. Unless something miraculous happens I imagine I’ll be thinking about my weight until the day I die. Sad but true. I’m happy to be back running and the key is going to be staying injury free. With parkrun due to restart in England next month I have already planned some trips across the border to ahem “visit my parents”. The fact that these visits will allow me to be in a park in England at 9am surrounded by fellow runners is purely coincidental! Have a great May everyone.