Monthly Report: December 2020

With the new year came a review and update to my financial plan and I opened a new financial account.

I’m now only going to be reporting my savings and investments for my NET worth. I previously included the money I have in my current accounts, however, this fluctuates quite a lot depending on the time of the month and so does not give an accurate picture.

I earned £5,500 in December and put about £1,500 of that into my savings and investments.

Recap from last month…

Last month I was considering the possibility of moving house and made a plan to make this affordable, however, after discussions with the family and looking at property available in our area, we have decided to hold off on this idea for a little while.

I was also looking at finding a new home for my cash savings and tax money that is now earning a paltry 0.5% interest. Unfortunately, the whole instant-access savings market is pretty dire at the moment, so I tried something else (see Savings below).

Asset Table

ASSETVALUE
Marcus Savings£4,700
Vanguard ISA£8,400
Club Lloyds Current Account£600
Barclays Current Account£1,800
RCI Bank Savings Account£2,000
First Direct Current Account£1,000
Club Lloyds Monthly Saver£4,000
First Direct Regular Saver£3,300
CrowdProperty£3,100
Premium Bonds (NEW)£8,900
TOTAL£37,800
Current allocation of assets

Real Asset Table

The table above includes all my financial products, however, it is not a true reflection of my NET worth because some of that money is reserved for my income tax and National Insurance (when self-employed, it has to be paid in January and June). In addition, the above table also includes a snapshot of my business and personal current accounts at the time of writing. The amount of cash in these change quite regularly based on what I earn and what I pay out.

The table below shows only my savings and investments and is a better reflection of my NET worth.

ASSETVALUE
Marcus Savings£4,700
Vanguard ISA£8,400
RCI Bank Savings Account£2,000
Club Lloyds Monthly Saver£4,000
First Direct Regular Saver£3,300
CrowdProperty£3,100
TOTAL£25,500
Current allocation of assets (excl. current accounts and money owed to taxman)

NET Worth

So, my NET worth for December 2020 is:

£25,500

Savings

Being unhappy with poor interest rates at the moment and after reading this article by Martin Lewis, I decided to invest some of my cash savings in premium bonds. Another reason for this decision was to separate the money I owe to HMRC from my own personal cash savings. I previously kept them both together in my Marcus Savings Account, which was a pain when it came to quickly working out what was mine and what belonged to the taxman.

So I bought almost £9,000 of premium bonds (all my tax money after paying £12,000 to them for January).

Regarding my own personal savings, I left about £4,500 in the Marcus account to act as an ’emergency fund’ (about 3 months of living expenses). I also have a Club Lloyds Monthly Saver and First Direct Regular Saver containing about £3,000 combined and a £2,000 5-year fixed-term account with RCI Bank.

Altogether, my savings value at:

£14,000

Investments

I increased my stake in my Vanguard Stocks and Shares ISA and it also grew in value (I’ve realised about 40% capital growth since I started investing in early 2020). Some of my CrowdProperty loans were paid back and reinvested. Altogether, my investments are valued at:

£11,500

Thoughts & Plans

Separating my personal cash and the money I owe to HMRC by putting tax money in Premium Bonds has certainly made understanding my finances easier. I’ll do a full write-up of my reasons for choosing Premium Bonds when I get time – hopefully, I’ll get a nice win as well (or at least enough to beat the 0.5% interest it would have received in the savings account).

I try to keep an even split between my savings and investments, however there’s currently a bit of disparity between the two with my savings at £14,000 and investments at £11,500. So I need to look at rebalancing soon.

I’m toying with the idea of investing in precious metals and cryptocurrencies but I have a whole lot of research to do first!

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