Multi-millionaire Road Plan Review (6)

Blueprints:

This post details my financial progress as of the end of October 2013. All posts of a similar title to this one are written to demonstrate how all prior published articles interlink to form my plan to become a Multimillionaire. Think of these posts as a self-review of my progress and the blueprints to my Multi-Millionaire Road Plan. I encourage my readers to add comments on these posts. Feel free to compare to my previous report:

Multi-Millionaire Road End of October 2013 Report:

As always I'd like to offer a huge thank you to all my readers. Without your readership, comments, tweets and following I would not find the motivation to keep posting. I hope you will continue to find this site interesting. 

In particular, I would like to thank all those readers who have recommended any of their friends to start to follow this site.

Website Progress

As you may have noticed, I am not hugely tech-savvy and in terms of a technologically impressive website it is definitely lacking. I have always felt that the pull of my site should be its content of which I am working constantly to improve. If any of you have any suggestions to improve the site then please feel free to email me at mrmoneybanks@multimillionaireroad.com. 

Recent statistics show that the site attracts on average between 150-200 readers per day. I am extremely happy with this level of readership but would always welcome more. If anyone invites a friend or family to read an article that i have written, or shares one of my posts, just let me know and I will personally get in touch to say thank you.

Get Rich Plan Update

Picture from freedigitalphotos

I am 14 months into working life and I am now still able to save roughly 20% of my monthly net (income after tax and pensions comes out of my pay package) income. I have very recently received a modest pay rise and as such my net income after pension contributions and tax is just over £1,707 per month. This means that I am now saving about £341 per month. £135.75 goes into a Company pension scheme each month andis matched by my employer. Furthermore, I benefit from tax savings from this contribution.

The income set aside for savings is taken directly from my current account into an esavings account with virtually no interest. From there, I can transfer the money either into a stocks and shares ISA or into a cash ISA depending on how much of my allowance I've used. I aim to split all savings 50:50 between, cash and bonds and in stocks and shares. Some of my coworkers (on the same wage) are surprised that I am able to save this much considering almost  44% of my net income goes on rent and bills. I put this down to my budgeting technique and method of automating my savings. When making investment I aim to buy undervalued and dividend paying stocks (assuming there are any!).

My current share portfolio is performing strongly. With an overall performance net of any tax and charges of 18% over the last 2 and a half years. The FTSE100, for example currently sits at about 6700 points. When last I wrote it was at 6500. Although it is folly and fairly meaningless to make a prediction on the stockmarket I shall do so anyway: It will go up or down or stay the same, but regardless of the movement I will look to improve my research in the hunt for undervalued shares.

If you take a look back at an article back in March 2012, I gave my original financial breakdown. I now wish to update my current asset holdings:

• £685 - Sits in cash as a deposit for the flat I currently rent.
• £949.86 - Current Account. This is obviously before any spending has occurred for the month of November.
• £684.52 - Everyday Savings Account
• £11,585.26 - Loyalty Reward ISA
• £100 - UK Premium Bonds
• £13,842.21 - Online Shares
• £2,056.52 - Funding Circle Investment
• £300 - sitting as capital in a business account 

• Total Accessible Assets: £29,518.85 (July 2013: £28,192.94)

This represents a growth in Total Accessible Assets of £1,325.91 (4.7%)

• £3,950.97 - Friend's Life Pension (contributions since October 2012)

Total Assets £33,469.82  (July 2013 £31,157.83 - an 7.4% growth)

I am very pleased with my progress over the three months. In March 2012 I began recording my tangible wealth. Back then it was £22,970. I have grown my net total accessible wealth by about 28.5% and my total wealth (including my pension) by 45.7% in 23 months. My original plan was to grow my wealth over the year by about £4000 from September 2012 until September 2013 which (if you prorate my progress) means that I have almost reached this goal in terms of total accessible assets and more than passed it if you include my pension. Arguably, it should be acceptable to include the value of my pension as this will form part of my assets in later life.

Originally I wrote a post on a Get Rich Plan and am currently in the middle of implementation. Whilst I have a long way to go, I am currently laying the foundations of this plan. I will now go through each section, briefly:

1. Frugality - I believe that life should be lived whilst preparing for the future. As such I don't buy into the argument that you should count every penny. Instead, you should get the fundamental decisions right. for example, to automate your savings and commit a certain amount to savings each month.
2. Budgeting - all going according to plan. My method allows me to ascertain where I may be spending too much. In October 2013 this was clearly the case as I had to incur some extra charges putting a strain on my finances for that month. I aim to adjust my spending in the coming months to try to rectify my cash position.
3. Saving - I am still trying to save 20% of my monthly net income. I am now making better utilisation of my cash, channeling more into cash ISAs, so much so that I have maxed out my limit for the current financial year.
4. Debt - Although I have two credit cards, I have no debt. I pay them off in full each month. I have one credit card which gives 3% cashback (up to a maximum of £100 a year) and another that gives 0.5% cashback. Read my article to explain how to maximise the cashback on credit cards.
5. Housing - My rent currently costs about £750 with bills. This is an improvement on the £800 I was paying previously. For more information on my ideas on Housing read my article: Renting Vs Buying.
6. Investing - after all taxes and expenses my portfolio has increase by about 18% since it's inception  two and a half years ago.
7. Tax - I have topped up my tax free ISAs. It is now maxed out. I am now starting to utilize my investment ISA with an ISA stocks and shares trading account.
8. Job - My base salary is £27,650. In November I will receive my bonus of £1,000 (gross) for passing my exams. The majority of this will go towards savings to help to build wealth. Living as a young professional living in London has huge opportunities for networking but of course is highly expensive. I must remind myself that this is (hopefully) the lowest wage I will have for the rest of my life so things are looking good into the future.
9. Time and Patience - Slowly but surely, year by year, the seeds which I am planting will grow into trees.
10. Self-belief - check.

As you can see, on the whole things are looking good. There is much work to be done but at 24, I have time on my side.

I would encourage all of you to update your financial position. Feel free to use my post as a template. It helps you clarify what you have to do and where you are going.

What's going on in your personal financial review?

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