The pound costs US$1.30, and I’ve now broken a personal record for longest time spent seething at
dimwits my fellow countrymen whose stupidity democratic rejection the EU has negatively impacted my plans. My earning power, as measured in VWRL shares, has been reduced by circa 10% compared to before the referendum, and this has happened way too early in my accumulation stage for it to not matter. Perhaps I should drink more.
Give me coffee to change the things I can change and wine to accept the things I can’t.
(dude in charge of the chalkboard sign at my local café)
Other than that, it’s been a fairly benign quarter. The SIPP is filling up, slowly, the S&S ISA gets a nominal amount chucked in each month, ditto Emergency Fund.
I use ONS metrics for net worth related goals – why reinvent the wheel? Calling home equity “property wealth” might sound a tad silly, but it seemed reasonable to keep the ONS terminology when using their formulae.
Let’s take a look at the detail.
Goal 1: 60% savings rate
The good news is that summer’s over along with its excesses: boozy lunches that become dinners, impromptu parties on account of it being sunny and a weekend, purchases of outdoor gear on account of it being not so sunny and a weekend (but fuck it, it’s summer, and I’m going to enjoy it whatever it takes), and assorted treats just because it’s summer and I’ve already spent all that money on the gear, so what’s another few quid.
The bad news is that summer’s over.
As expected, the monthly savings rate has recovered from the previous lows, and the in-year average stands at 66%.
Goal 2: 10% mortgage overpayments
Goal 3: Pension
Given the status on Goal 2 and the newly added Goal 5, pension has been promoted to my FI vehicle of choice this year. Having filled this year’s allowance I’m aiming to utilise all carry forward allowance that’s due to expire this year.
Goal 4: Emergency Fund and Freedom Fund
Freedom fund has been getting its regular monthly contribution as per usual. Emergency fund is getting more than it would otherwise purely because I have to wait until March 2017 before I know my earnings for this tax year. That will determine my pension contributions (see Goal 3 above). I’m aiming to optimise so I pay as little tax at 40% as possible.
Goal 5 (added midway through the year): Pay no more than £22k income tax in 2016/17 tax year
Because they got their country back, and I sure as shit ain’t paying for it.