@Jon Bon Thanks so much for the reply you are a star! :)
Ok so the good news is you are super young, practially a baby, and hitting FI by 40 should be very easy. However you have 2 different parts of a journey in front of you, one difficult and fulfilling, the other rather boring.
First you have the hard part: Clawing your way out of debt. Obviously you need to start attacking your debt. I dont know if you have a small emergency fund set aside, but if you do you need to start pouring all or nearly all of your extra cash into your debt. Go with the highest interst rate stuff first. So you should be able to knock out that 7% car loan FD (which I dont know what FD is)
FD is the name of my bank (First Direct) in 2-3 months. The large car debt makes things a bit more complicated. I dont know how things work in the UK but you are always going to get killed selling it to a dealer. Do people do private party sales over there? Look into it, if you can walk away from the car and not lose money it is definitely worth it. Keeping it however and attacking the debt also is not a terrible option. It looks to be reasonably affordable and reasonably new?
I will certainly look into selling it privately - Its trying to work out if it is worth paying off early. 2015 Audi A1 - I recently got a payrise and I thought I would treat myself.. Bad decision and if I would have known about MMM I certainly wouldn't have bought it! What is the interest rate on the car?
I will find out :) and what is a PCP?
A PCP is a agreement where you pay a set amount per month 0 When you get to the end of the agreement you then have the option to hand the car back or pay a lump sum to keep it. There is also a clause you can trigger which is when you reach half way through the agreement you can just hand the car back - So from here I am around 2 years away from this. http://www.financingyourcar.org.uk/car-finance/personal-contract-purchase-pcp/So after you hit claw your way out of debt you can move to the easy and boring part. It wont be nearly as difficult, or give you the high that paying off debt will, but its a better place to be. Basically you just sit around and watch your money grow. Its pretty boring because it can take 10-15 years, but invest a large portion of your income, dont take on debt, dont succumb to lifestyle expansion and you will wake up one day and be a millionaire. The accumulation phase is where most of the folks around here are at.
Probably expand on your case study to include.
1. Interest rate and terms of all debt
Mortgage 3.5% £220,000 Remaining
Car Loan FD 7% £2400 Remaining
Credit Card 0% £2200 Remaining
Medical Procedure 0% £3124 remaining 2. Define acronyms for us non-Europeans
PCP - http://www.financingyourcar.org.uk/car-finance/personal-contract-purchase-pcp3. Value of current assets
I own 10% of my £150,000 House - No savings etc..4. Tell us more about your income and potential income
T
ake home from my job is usually around the £2300 mark
Side Hustle (Match Betting usually 1000 -1500 per monthYou could also read through the case study sticky, and investment order sticky.
Again welcome, you are in the right place my friend!
So in terms of moving forward it would be best to attack all debt and then focus on investing in the index funds in this order?
Car Loan FD 7% £2400 Remaining
Credit Card 0% £2200 Remaining
Medical Procedure 0% £3124 remaining
Thanks alot for your help :)