July update

July was a month spent in suspense. The pubs opened on the 4^th of July. I avoided attending on that day but did on Sunday. I also went several times as my confidence grew that I wouldn’t be struck down with COVID 19 immediately. There have been a few hangovers.

I’m gutted that favourite local pub shut down for good. It was an excellent pub that had about 20 beers on tap. I just hope someone opens up a similar pub there.

I was also finding my furlough and free time increasingly unnerving. I had a holiday to look forward to at the end of the month which couldn’t come quickly enough, but it seems such a long time to get there. However, we got there and the holiday was amazing. We went with two of our friends who have been out bubble for the COVID period. We had a great trip around Scotland and got a hill climb in too conquering Schiehallion in atrocious conditions. I also saw Mum and sister, so it was good.

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Employment

The big news is, and it was at the start of August, is I got a bloody job! It’s in a great firm and in the field I was trying to break into. I had an interview with a competitor, and they were keen but didn’t get a follow up from them. I think they had a hiring freeze on. So, I had an interview with their competitor, and they offered me a job during the interview! Great stuff! I even got the same salary I was on before. This is a massive win. I will start next week.

So i got my redundancy and a new job I’m seriously quids-in. I really feel like being petulant and buying something ridiculous, emailing a photo to my old boss and saying thanks, you paid for this you w*nker. Of course, I’d never do that as I am a mature adult and will only sensibly invest this money.

Twitter/Blogging

My following has broken through the 600 marks which is pleasing.  I love personal finance twitter and how friendly it is. I became slightly obsessed with it this month mainly because I had nothing else to do. It’s an interesting world with lots of great personalities out there. I’ve really enjoyed it, but it does use a lot of time.

I also did some SEO optimisation, and my blog seems to have become an authority on wealth in the UK ranking at no 4. Well done me. Now if I could only work out how to monetise this…

My websites were performing poorly and I decided to do some facebook advertising. I guess I was in a funk and wasn’t feeling up to pushing it. It is something that will take time I suppose.

Pension transfer

I will attempt to consolidate my myriad pensions this month. It’s fiddly and annoying. I didn’t sign something which delayed the process. Now I’ve had the last employer contribution into my previous employer I can move it over to Interactive Investor SIPP.

Taxes

I did my taxes for last year and received a rebate of £902 thanks mainly to my pension contributions and the tax rebate that receives. I thought it would be more but anyway I checked, and it is correct because my old employer deducted the tax at source which I had not appreciated.

I get an accountant to do my return for a fixed fee of £170. I could probably do it myself, but I know I wouldn’t do something right and get a fine or fail to get a rebate. For me, it’s worth it.

The numbers

Income / Expenses

Expenses are going up his month, thanks to a few big purchases such as a desk and another monitor for my home office and Ms Playingwithfire decided that she very much liked the one I had bought myself before being made redundant!

The major increase in expenses was due to my holiday. I also went to the pub and ate out a bit this month. I spent a lot on behalf of the group on holiday but we kept track using the app ‘Settle Up’. Really recommend this if doing something with friends. I discovered it on a ski trip with about 20 people and it did a great job of tracking expenses. It also removed the risk that you’ll be out of pocket.

Income was WAY up thanks to my redundancy payment coming in. I got 22k in my account after deductions. My employer gave me three months notice, my holiday entitlement and a month’s salary tax-free. I decided to contribute 5% of my salary to the pension (lower than 14% norm), so I got the 3% contribution from my employer but got more into my account. I did this because I was worried about getting a new job and wanted the cash available rather than locked in a SIPP. Now I have a new job that’s all but forgotten; I guess I can invest this! Hooray!

The question is in what? I’m open to ideas but it always comes back to an ETF fund.

Savings Rate

The savings rate at 14% is deceptively low this month as my income was so high! This will change next month when I decide what to do with my stash. It will likely go to the S&S ISA into an ETF. Although, it’s now tempting to get the tax back on this and put it in the SIPP. I’ll do my calculation and work out which is preferable.

Investments

Investments have shot up thanks to lots of contributions and my redundancy payment (which is yet to be invested).  The pension has grown by £4k. However, that is due to a higher contribution and a bit of growth.

I’ve hit the 20% FI number, which is also a great milestone. I’ve been stuck in mid-teens for a long time, and the boost from the redundancy was immense. The £22k is basically 10-12 months of savings, so it’s a real acceleration.

SIPP

I haven’t provided an update on the SIPP for a while. It looks like since I opened this in Feb the S&P 500 has been doing the heavy lifting. My FTSE 100 and 250 have been doing awfully and are still down 20%. I’ll keep holding, but I won’t be investing in this for now as I don’t believe the UK is in a strong position.

Conclusion

A month of boredom, but of good fortune, increased wealth and hope for the future!

I had a well-needed break in the form of a holiday and job offer.

Be patient and keep the faith are the lessons of July!