Monthly Report: November 2020

NET WORTH REPORT NOVEMBER 2020: £23,990 - Hobbit Money

Another good month in terms of income, with a profit of £4,355 – this is a personal best for me for a single month’s earnings.

I followed my financial plan and moved 40% to my personal account, 45% to my savings account (which includes cash for income tax and National Insurance), 10% to my Vanguard stocks & shares ISA and 5% remained in my business.

Actually, these percentages totalled £4,000 – the remaining £355 I kept in my business account as I am planning to invest a little more in my business this month.

Recap from last month

I’m still on the lookout for a new instant access savings account with a decent rate but unfortunately there does not seem to be a lot on the market.

As I planned, I’ve been working on making my business even more profitable and December looks to be even higher than November!

Asset Table

At the end of November, my assets look like this:

Marcus Savings£21,965
Vanguard ISA£7,180
Club Lloyds Current Account£1,734
Barclays Current Account£1,383
RCI Bank Savings Account£2,000
First Direct Current Account£1,000
Club Lloyds Monthly Saver£3,600
First Direct Regular Saver£3,000
Current allocation of assets

NET Worth

As always, a fair chunk of my assets is money that I owe to HMRC for my tax and National Insurance, so taking an overcautious figure of what that is likely to be, my NET worth is:



The total of all my minimum-risk savings accounts (Marcus Savings, Club Lloyds Monthly Saver, First Direct Regular Saver and RCI Bank fixed-term savings) minus an over-cautious tax estimate is:



With the announcement of a working vaccine for coronavirus in November, the stock market rocketed and I saw my stocks & shares portfolio increase by about 8% – of course, these profits will not be realised until I actually withdraw the money and could go up or down before that time.

My investments consist of my Vanguard Global All-Cap Index Fund (a stocks & shares ISA) and my CrowdProperty peer-peer lending account. I invested a further £400 in my Vanguard this month and these investments now have a combined value of:


Thoughts & Plans

I am continuing my search for an instant access savings account with a decent interest rate, especially as Marcus announced a further cut in their interest rate to 0.5%. Unfortunately, most savings account providers are doing likewise and the ones that are slightly higher have a variable rate and will probably drop again themselves sometime.

I have been considering putting a little extra effort into maximising the interest earned on the little-over £20,000 cash savings I have by using other products such as regular savers, fixed-rate accounts (that limit withdrawals or require notice). I’ve avoided these in the past because I need my cash to be liquid so that I can pay my tax bills on time and access my money quickly in case of emergency. However, with proper planning, this may be a possibility. It is something I will be looking at in December if I have time.

In other news, I’m thinking of moving to a bigger house. I thought I would be able to afford something decent with the money I am earning but property is so expensive! I want to make a plan in the next couple of months to afford the move.

Monthly Report: October 2020

NET Worth Report October 2020 - £22,518

October was a pretty good month for income, pulling in over £4,000.

Out of this, I took £1,600 for myself to cover monthly living expenses and some Christmas shopping and the rest was allocated amongst my savings and investments.

Recap From Last Month

By taking time off from my job last month (the stress got to me), I’ve been able to spend a bit more time on my business interests, which has helped to push up earnings this month. I’m currently in two minds whether I want to go back to work – I’ve told my employer I will decide after Christmas, so I have plenty of time to think about it.

I did say last month that I wanted to look at changing my instant-access savings account to something with a better rate, however despite regular checks I have not been able to find a product that is significantly better than my Marcus account, which pays 0.7%. There are a few that are slightly higher and I very nearly grabbed a deal with Newcastle Building Society that offered a fixed rate but I missed it. The problem is, all savings products are cutting their rates at the moment and I don’t want to waste my time switching when the rate could drop a month or so later.

I adjusted my contributions between my savings and investments this month to re-balance them for an approximate 50/50 split. I now have about £9,500 in each of my savings and investment pots.

Asset Table

So, let’s take a look at my assets at the end of October:

Marcus Savings£20,852
Vanguard ISA£6,327
Club Lloyds Monthly Saver£3,200
First Direct Regular Saver£2,700
RCI Bank Savings Account£2,000
First Direct Current Account£1,000
Barclays Current Account£841
Club Lloyds Current Account£1,478
Current allocation of assets (Oct 20)

NET Worth

Being self-employed, a chunk of that money is owed in tax to HMRC in January 2021. The good news is that my accountant filed my taxes last week and the amount owed is a few grand less than I expected 🙂 My tax liability for the year 19/20 is about £8,000 and my estimated tax liability for this year so far is about £11,000 (although I always overestimate this just so I don’t get any nasty surprises!)

So, that leaves me with a NET worth of:



I have retained my main instant access savings account with Marcus and contributed to my two regular savers with Lloyds and First Direct. I also have a 5 year fixed rate savings account with RCI. The sum of all these accounts minus my tax liability is:



My investments continue to perform well.

I lost a little value on my Vanguard Global All-Cap Fund ISA but it recovered pretty quick.

I also configured my CrowdProperty IFISA to ‘autoinvest‘ – I hadn’t realised that some of the interest had started to be paid back in cash and was just sitting in the account!

The value of these two investments combined totals:


Thoughts & Plans

With my stress levels beginning to go back to normal and an extended period of time off work, I continue to plan on making my business more profitable, which will provide more income to be invested for my future. Earnings for November are set to be a personal best!

I have to admit that I am happy and comfortable with my financial planning at the moment and all the financial products I am using contribute to my over-arching financial plan in their own way. Therefore, I won’t be actively seeking out new products however, I will be keeping an eye out for an instant access savings account that has a decent or fixed rate.

Monthly Report: September 2020

The last few months have been a nightmare, both emotionally and economically.

I had some very expensive building work done at my home and the builders did a very poor job, meaning I had to get someone else in to sort it out and pay out double. In addition, health issues within the family and pressures at work have taken their toll on my mental health and I have been signed-off from my employed work with stress. Fortunately, I have my business to fall back on, so I will be able to pay the bills and still have money left to save and invest but it won’t be as much as previous months. I’m talking hundreds rather than thousands.

The fact that I am still able to maintain my standard of living through passive income, even though I am unable to work has made me feel very grateful for the opportunities life has given me. I would hate to be worrying about being able to put food on the table in addition to all my other woes at the present time.

Anyways, let’s take a look at my financial assets:

Marcus Savings£19,736
Vanguard ISA£5,811
Club Lloyds Monthly Saver£2,800
First Direct Regular Saver£2,400
RCI Bank Savings Account£2,000
First Direct Current Account£1,000
Barclays Current Account£800
Club Lloyds Current Account£280
Current allocation of assets

NET Worth

Roughly £20,000 of that total is owed to the taxman, leaving a NET worth for my finances of:



I try to keep around a 50/50 split between my ‘safe’ savings and my riskier investments.

I try to squeeze as much interest out of my savings accounts as possible, regularly reviewing them for the best rates. I also keep the money I will have to pay to HMRC following my tax return in my savings accounts to earn interest on money that technically does not belong to me.

I currently have my main instant access savings account with Marcus, two regular savers with Lloyds and First Direct and a 5 year fixed rate savings account with RCI. The sum of all these accounts minus my tax liability is:



My investments have the potential to yield far more than my savings at the risk of losing capital. However, these are calculated risks rather than gambles.

I currently have a stocks and shares ISA with Vanguard and an IFISA with CrowdProperty. The sum of these two accounts is:


Thoughts & Plans

I have about £17,000 in my savings and investment accounts. As I stated previously, I try to keep a rough 50/50 split between low-risk and high-risk investment vehicles, however due to the success of my investments, they have crept up higher than my savings. Therefore a bit of rebalancing needs to be done in October to maintain the correct split.

My Marcus instant access savings account is taking a big cut in interest rate (it was originally 1.2% and is reducing to 0.75% in October), so I need to look at switching the provider. It may not seem a big difference but there’s about £20k in this account, so for every 0.1% decrease in the interest rate, that’s a loss of £20 per year!

My main concern for this October is working on increasing the income from my business. I don’t go into a lot of details about exactly what I do here, but it is a great business model that generates passive income, once the initial hard work has been done. I will be earning about £4,000 in October from my business, however this is the high end of a variable income. I’m usually looking at around £3,000 per month and this will fall lower in December, which is always a bad month for me so I will need to have some reserves handy. I am working on increasing monthly profits to an average of £5,000 per month from January 2021.