Multi-Millionaire Road Plan Review (4)

This post details what I have achieved so far. This article has a lot of links to other articles I have written to demonstrate how the articles interlink to form my plan. Think of these sorts of articles as review and the blueprints to my Multi-Millionaire Road Plan. Feel free to compare to my previous report:

Multi-Millionaire Road End of Year Report:

I wish to extend a big thank you to all my readers. I really enjoy any interaction that we have over comments and email. Please please get in touch - to chat, compliment, criticize, or even curse!

Picture from freedigitalphotos
I am now able to save roughly 20% of my monthly net (net of tax and pensions) income. This is around £340. Additionally, £135 goes into a pension scheme each month that is matched by my employer in full. This money is taken directly from my current account into a monthly saver earning a meagre 3.5%. At the end of my financial year (July for me) I will transfer the total sum into a trader account to buy more undervalued and dividend paying stocks and shares.Sometimes I am able to save more through careful buying and budgeting. I wish to emphasise that I do not budget in the conventional way - I do not plan every penny that I will spend, rather, I make a conscious effort to be aware of current spending.

My current share portfolio is having mixed results with my banks performing well, however the mining stocks are being crushed by falling gold prices. The FTSE100, for example currently sits at about 6450 points. As the Fiscal Cliff nears its end, things are looking good for the years ahead in the markets.

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:
  • £925 - Sits in cash as a deposit for the flat I currently rent
  • £2370.76 - Current Account
  • £1763.70 - Monthly Savings Account
  • £391.69 - Everyday Savings Account
  • £7959.69 - Loyalty Reward ISA
  • £100 - UK Premium Bonds
  • £10,449.38 - Online Shares
  • £2,007.73 - Funding Circle Investment
  • Total Accessible Assets: £25,967.95
  • £2,079.99 - Friend's Life Pension (7 months contribution)
As you can see my total accessible funds has fallen by about £120. I put this down to the fact I have almost doubled my stockmarket investments. I have found that my investment ideas take a little time to prove themselves good or bad. In this time I have lost out on interest that I otherwise would have got and on investment charges such as stamp duty taxes. Furthermore, it was during this period that I paid for my holiday (about £700). I am not worried about my asset growth progress. Since March 2012 - 13 months ago, I have grown my net wealth by about £3,000. This is track to grow my wealth by about £4,000 from September 2013 until September 2014.
I have now included 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 spend about £100 a month on food and am careful in the sense that I keep an awareness of my spending habits.
  2. Budgeting - all going according to plan. My method allows me to ascertain where I may be spending too much.
  3. Saving - I am able to save 20% and above of my monthly net income. I still haven't switched my bank account. However, I really should consider it at some point in an effort to get a better interest rate, especially now that there is a lot more money going through the account.
  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 - I currently rent accommodation in London. Rent sits at £690 per month, not including bills. This seems rather high. In the summer when this tenancy agreement is up I will be moving to a cheaper area in London saving an extra £100 a month on accomodation. However, transport will cost an extra £30 per month. For more information on my ideas on Housing read my article: Renting Vs Buying
  6. Investing - on the whole this area of my personal share portfolio is going well. After recent additions my current share portfolio has growth 7.4%. This drop in growth appears to be due to the poor performance of my mining stocks and the introduction of capital averaging down my growth rate.
  7. Tax - I have utilized about £2,500 of my cash ISA this year so far. I need to top up my tax free ISAs before next April. I need to look into investing in a structured product that may give me 10.5% growth. I am now starting to utilize my investment ISA with an ISA stocks and shares trading account.
  8. Job - My base salary is £27,150. In September I am hoping to get a bonus of £1,000 (gross) for passing my exams first time. Living as a young professional living in London has huge opportunities for networking but of course is highly expensive.
  9. Time and Patience - Slowly but surely, year by year, the seeds which I am planting will grow into trees.
  10. Self-belief - check. I will make it
As you can see, on the whole things are looking good. There is much work to be done but at 23, I have time on my side.

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