Multi-Millionaire Road Plan Review (8)
Blueprints:
This post details my financial progress as of the end of March 2014. 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 March 2014 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 350-500 readers per day. This recent boost in readers is mainly due to the popularity of The Science of Wealth post. 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 |
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. When making investment I aim to buy undervalued and dividend paying stocks (assuming there are any!).
My current share portfolio is performing strongly. The FTSE100, currently sits at about 6653 points. When last I wrote it was at 6750. 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.
- £946.10 Current Account. This is obviously before any spending has occurred for the month of January.
- £341.80 - Everyday Savings Account
- £8,456.52 - Loyalty Reward ISA
- £100 - UK Premium Bonds
- £18,951.87 Online Shares
- £129.53 Cash within Online Shares
- £2,115.70 Funding Circle Investment
- £270 - sitting as capital in a business account
- Total Accessible Assets: £31,996.52 (December 2013: £31,854.41)
This represents a growth in Total Accessible Assets of £142.11 (0.4%)
- £5,330.48 - Friend's Life Pension (contributions since October 2012)
Total Assets £37,327 (December 2013 £36,316.36 - a £1,010.64 or a 2.7% growth)
In terms of my finances it has been an incredibly tough few month. There have been many weddings, miscellaneous and emergency costs that required immediate payment. Given the circumstances I am surprised that I managed to grow my total accessible assets at all. Whilst a growth of £142.11 may seem small, it is certainly better than nothing! 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 39.2% and my total wealth (including my pension) by 62.5% in 24 months. My original plan was to grow my wealth over the first few years of my employment (and any significant pay rises) by about £4,000 per annum. As I have grown my wealth by £9,004.24 since the start of recording my Multimillionaireroad Plan Review, I am happy to see that I have beaten my target by about £1,000.
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:
- 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.
- Budgeting - all going according to plan. My method allows me to ascertain where I may be spending too much.
- Saving - I am still trying to save 20% of my monthly net income. This is sometimes difficult as I find myself having to make unplanned purchases e.g. Wedding presents, parking fines etc. This has been particularly tough this month.
- Debt - Although I have three credit cards, I have no debt. I pay them off in full each month. I have one credit card that gives 1.25% cashback. The other two give 0.5%. Read my article to explain how to maximise the cashback on credit cards.
- 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.
- Investing - Please look out for an update to my Portfolio. I've recently invested a decent proportion of my portfolio in Banco Santander S.A., hence the big increase in my portfolio.
- Tax - There is now far more scope for utilizing my ISAs especially given the recent changes to the New Tax ISA. I am now starting to utilize my investment ISA with an ISA stocks and shares trading account.
- Job - My base salary is £27,650 plus my November exam bonus of £1,000 (gross). Living as a young professional living in London has huge opportunities for networking but of course is highly expensive.
- Time and Patience
- Self-belief
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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