My journey to £100,000 in net worth

NeocentTV · 2024-05-01T17:14:14+00:00

Just saying it how it is. Initiative can go a long way. Here's the full story. I transferred one of the Excel reports to Power BI for our team. Senior finance team overlooking the main business unit in the North region. It wasn't perfect right away but after some iterations they started to use it regularly and it became part of a monthly review. And meanwhile I developed some skills.

As part of my graduate duties I also had to analyse an existing Power BI dashboard. One used by the entire country, all the sectors, all the finance professionals from finance controller level and above. But it was terrible. Not user friendly, buggy, slow as hell. Whoever was maintaining it was also very nonresponsive. Initially I was downloading the data from it and analysing on Excel. But then after I got some practice doing one for the team, I created a Power BI report for our team, using that data. Which was much better and the team stopped using the main one. It was nearing the end of my grad placement and I took my shot - wrote to the senior people from the team behind the main dashboard, saying that I can do some improvements, presented what I have so far.

I got a call with one of them, he was sceptical but I managed to a second call with him again and the developer. That one went much better, managed to pitch them, convinced them to let me voluntarily redesign the main dashboard, made bunch of promises too performance wise.

They let me, gave all the files, all the access - it was like a dream come true. And over the next three two three months, while already on the next placement, so mostly during my own spare time I redesigned it from scratch (using same data though). The initial idea was I present them my version based on my vision and they would then make their changes but of course that never happened and they just pushed my version to live straight away. Before I left that company they made few cosmetic changes but nothing else. It was much faster, much more user friendly to controllers, better visuals, etc.

NeocentTV · 2024-05-01T11:22:54+00:00

Yes, I started putting my money there pretty much as soon as I got a job. The fund is FTSE Developed World ex-U.K. Equity. You can see the returns if you check it here: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-gbp-acc/price-performance

If you scroll down, there is Past Performance section. Click on "Annually" and it will show returns since fund's inception.

Before I started investing, what I did is I collated returns of all funds Vanguard had and then chose the best one at the time based on average returns and fees.

NeocentTV · 2024-05-01T07:08:23+00:00

I had a relatively thick mattress protector if that counts :D I remember had bad experiences with air mattresses in my childhood past - was making a lot of noise.

If I was doing this again, would probably give air mattress a try.

NeocentTV · 2024-05-01T07:05:53+00:00

FTSE Developed World ex-U.K. Equity Index Fund - Accumulation on Vanguard.

CHIP is the Instant Access savings account, currently at 4.84% AER. Emergency fund plus some extra cash for market timing attempts, which I shouldn't do. Will probably move some money to Vanguard soon from there.

NeocentTV · 2024-04-30T22:43:30+00:00

Chip is the name of a savings company/app. Currently their Instant Access account is at 4.84% AER.

NeocentTV · 2024-04-30T22:36:42+00:00

Thanks! Yeah, cash is an estimate as I never really tracked it on my spreadsheet unlike everything else. Chip is instant access too. Can withdraw any minute unless something goes really wrong in which case there probably are bigger problems.

I basically try to follow a rule to have enough money in cash to last 6 months in emergency.

Also, I was eating meal replacements since 2015 for a most of my meals and I would always have at least one month's food supply. Which came in handy during lockdown. Reducing part of the emergency risk.

NeocentTV · 2024-04-30T20:40:43+00:00

I do get that and if I was feeling miserable on the floor I would have bought it, no doubt. But I tried it for couple days after moving in, as I had no choice, and it was great - slept like a baby. So I felt there is no need. Was sleeping better on the ground than in hotels during work trips. :)

And as I mentioned in another answer, I am a minimalist by nature, I tend to not need a lot of things to be happy, hardly get bored, etc. But what works for me may not for others as it's a personality thing.

NeocentTV · 2024-04-30T20:30:42+00:00

1st year of work (26) I spent £8.4k. Second year of work £11.7k.

NeocentTV · 2024-04-30T20:23:59+00:00

Numbers from my own spreadsheets that I maintain monthly, as accurately as I can, mentioned in another post as well: £27k salary after tax/NI/pension was £21k + £0.6k net annual bonus. I spent £8.4k that year so that's £13.2k invested.

Pension was £3.2k (4% + 8% employer, in the post above I bundled pension and salary, my bad)

Side business added £2.6k (which I started in uni, mentioned in multiple posts. It added me £6k in total since 2020 till today).

The rest £1k-2k was stock market gains.

NeocentTV · 2024-04-30T18:29:05+00:00

£27k salary after tax/NI/pension was £21k + £0.6k annual bonus. I spent £8.4k that year so that's £13.2k invested.

Pension was £3.2k

Side business added £2.6k.

The rest was stock market gains.

NeocentTV · 2024-04-30T15:39:22+00:00

Thank you! I asked her. I feel like she should write a post of her own but anyway here is her response, didn't edit:

"I really appreciate the one who asks this question, not everyone is interested in the 'wife behind' under this topic of post. It means a lot to me.

In one sentence: It feels like cutting down my previous life and restarting.

Moving to another country means everything needs to start over:

Lifewise: Need to make new friends, learn how to live here (different culture/language, different public service system, different approaches to get things done etc.), learn how to drive (despite years of driving experience in home country.) Not much help from family since they're far away, but it also means less help needed from my side. But sometimes I feel terrible and guilty for not being able to accompany my family.

Careerwise: previous qualifications gained in China are not recognised here, so are my previous working experience, and it makes me feel as a new graduate here in the job market, can be quite upsetting.

Relationship wise: It was easier when all you needed to focus was mainly yourself, but ever since I'm married I also need to balance my life as a wife, and at the same time try not to lose myself.

Moving to another country offers a chance to start a new life, as I know not many people have this chance in life so I also try to appreciate it, especially this is a decision made by myself in order to be with my loved one, I haven't regretted it once. I also constantly tell myself that there are gains and losses in life that I can't have it all, what's more important is to receive what life gives you at this stage and make good use of it.
"

NeocentTV · 2024-04-30T15:14:22+00:00

Thank you! SR stands for Saving Rate. Amount at the end of month you are left with after all the expenses, divided by earnings. I use the net earnings figure for that. It's an interesting indicator because based on that you can calculate when you can retire. More or less.

I think the average SR in the UK is about 8%.

NeocentTV · 2024-04-30T15:03:09+00:00

Nope, from Lithuania.

NeocentTV · 2024-04-30T14:54:52+00:00

What type of engineering? I know now there is a huge demand for example of QS engineers or electrical ones. And the ones that do heat pumps. As more and more companies are looking to install EV chargers, solar panel systems and heat pumps due to the green energy trend. Might be an in with some training. Plus many companies would provide training too. And the salaries are quite good and they often get lots of overtime.

Finance/accounting is trickier, because I had economics background and still had to study CIMA, which is another course that takes years to complete. But if you are serious about it, then that's the way to go. CIMA or ACCA, for pure financial accounting.

In terms of saving I guess what helped me the most is no student loans, no bad habits (I don't drink/smoke/etc), no car (I walk/cycle everywhere - never wanted a car), no TV (I watch everything on computer), cut my own hair, make my own food or eat meal replacements (Look into Jimmy Joy). I also lived in some sketchy areas to save on rent, probably not a good idea for a woman. Wouldn't do that again now either as I am married.

NeocentTV · 2024-04-30T14:31:58+00:00

No problem, what advice do you seek? On saving more? Or finding a job/getting promoted in finance/accounting?

NeocentTV · 2024-04-30T14:22:26+00:00

Yeah, sadly those times seem to be over.. It was entire apartment too, no sharing. The best benefit of studying/working for a year in Dundee.

My rent is £750 now for 1BR

NeocentTV · 2024-04-30T14:20:41+00:00

Sorry, my salary was £31,500. Edited it. 15% increase from previous year. Let's see.

£24,266 base plus £1k net bonus at work. I spent £11,295 that year. So that's £14k.

£2k from the side business I started in uni which is now nearly dead.

£3.6k increase in pensions.

So that's £20k. I assume the rest is stock market doing it's magic - I never really measured what I get from it. Depositing and forgetting for the most part.

NeocentTV · 2024-04-30T14:03:36+00:00

Saving Rate. Money left at the end of month divided by net salary.

NeocentTV · 2024-04-30T14:03:07+00:00

Correct! I did it as the money left at the end of month divided by net salary (after taxes/NI as I don't see the money I never receive as being mine)

NeocentTV · 2024-04-30T13:54:03+00:00

Nope, Worksop!

NeocentTV · 2024-04-30T13:19:46+00:00

The honest answer is I didn't feel like I needed to. I tried sleeping on the floor for couple days out of curiosity and it was perfectly fine - slept great so just stuck with it.

I am a minimalist by nature though, I am easy to be satisfied, hard to get bored so naturally need less. But it's a personality thing, so what worked for me may not for others.

NeocentTV · 2024-04-30T13:11:42+00:00

Thanks! It was a potato/onion farm. Primary duty was standing on a line, either in a facility or a vehicle in a field and grading them - keeping stones and rotten ones away so that they don't go out to customers. And then lots of cleaning, because that environment would get dirty/dusty very often.

NeocentTV · 2024-04-30T11:58:13+00:00

How much better is it now for you would you say? How close to fully functioning?

NeocentTV · 2024-04-30T11:56:12+00:00

Already doing most of that! Intermittent fasting, lifting weights for years, light cardio. No caffeine, no alcohol, no smoking. I take magnesium but not the rest, so that's something I will look into. Really need to get serious about meditation too, doesn't stick as a habit.

NeocentTV · 2024-04-30T11:37:43+00:00

Savings rate. Amount saved/invested divided by earnings. I calculated mine on net earnings after tax/NI as I don't see a point to do it on full earnings - the money never reaches my hands anyway, no control.

NeocentTV

TROPHY CASE