Financially 'Batten down the hatches'

[sheep&cows&stuff]

Interested to know how many people have had to really slum it for a period of time in order to get out of a financial tight spot.

As said before I work full time, so farming is on a part time / hobby basis - though it take up 100% of my time thinking!

Anyway, I have invested seriously in the last year, so much so that I have over spent and now find myself in a position where I face a very tough year ahead. It can be done, but I was just wondering how many have 'stuck their shoulder to the wheel' and powered through a tough time?

I know people will say 'I have had it tough for 30 years' - this is not what I mean. I mean, that for the next 6 months to a year I will have to give serious thought to every single pound that I spend...such to a level that yesterday I started to keep a diary of every penny I spend - so that I think twice before wasting money.

There is certainly light at the end of the tunnel - I have a large VAT reclaim coming in 3 months which will help, but it will take a period of time after that to be comfortable again.

Would love to hear some success stories, as a bit of motivation / inspiration never hurt anyone!!

 

[matthew]

Yes. Have walked that financial tightrope many times in the past. Daily checks on bank balances etc.

First thought - why act as a bank for HMRC? Claim your VAT monthly if you're on a reclaim situation, and if it's a 'you pay them' then pay more regularly to even out the amounts.

Do a forward budget (realistic one) and stick to it. Good luck.

 

[sheep&cows&stuff]

Yes. Have walked that financial tightrope many times in the past. Daily checks on bank balances etc.

First thought - why act as a bank for HMRC? Claim your VAT monthly if you're on a reclaim situation, and if it's a 'you pay them' then pay more regularly to even out the amounts.

Do a forward budget (realistic one) and stick to it. Good luck.

Didn't know that you can reclaim monthly? - I am in a reclaim situation.

 

[neilo]

Interested to know how many people have had to really slum it for a period of time in order to get out of a financial tight spot.

As said before I work full time, so farming is on a part time / hobby basis - though it take up 100% of my time thinking!

Anyway, I have invested seriously in the last year, so much so that I have over spent and now find myself in a position where I face a very tough year ahead. It can be done, but I was just wondering how many have 'stuck their shoulder to the wheel' and powered through a tough time?

I know people will say 'I have had it tough for 30 years' - this is not what I mean. I mean, that for the next 6 months to a year I will have to give serious thought to every single pound that I spend...such to a level that yesterday I started to keep a diary of every penny I spend - so that I think twice before wasting money.

There is certainly light at the end of the tunnel - I have a large VAT reclaim coming in 3 months which will help, but it will take a period of time after that to be comfortable again.

Would love to hear some success stories, as a bit of motivation / inspiration never hurt anyone!!

Probably not a bad habit to get into, to think about spending every penny anyway.

On the VAT front, have you asked HMRC whether it would be possible to go onto monthly returns? They are usually pretty accommodating, especially for new businesses where cashflow can be an issue. When I started out, they allowed me to go onto monthly for just that reason, on the understanding that it was on a trial basis and that if I was late with returns, they'd put me on quarterly. Still on monthly returns, which literally take a couple of minutes from any half decent accounts software.
Certainly worth a phone call, if it will ease your cashflow problem.

 

[matthew]

Interested to know how many people have had to really slum it for a period of time in order to get out of a financial tight spot.

As said before I work full time, so farming is on a part time / hobby basis - though it take up 100% of my time thinking!

Anyway, I have invested seriously in the last year, so much so that I have over spent and now find myself in a position where I face a very tough year ahead. It can be done, but I was just wondering how many have 'stuck their shoulder to the wheel' and powered through a tough time?

I know people will say 'I have had it tough for 30 years' - this is not what I mean. I mean, that for the next 6 months to a year I will have to give serious thought to every single pound that I spend...such to a level that yesterday I started to keep a diary of every penny I spend - so that I think twice before wasting money.

There is certainly light at the end of the tunnel - I have a large VAT reclaim coming in 3 months which will help, but it will take a period of time after that to be comfortable again.

Would love to hear some success stories, as a bit of motivation / inspiration never hurt anyone!!

Didn't know that you can reclaim monthly? - I am in a reclaim situation.

Wen VAT first started, a million years ago, we were on quarterly, but soon stopped that option.

Always on monthly now and as it's a reclaim, always on time.

As Neilo says, contact HMRC or your accountant (?) and get that changed.

It's bad enough being an unpaid tax collecter without acting as a banker as well.

 

[Exfarmer]

Do keep your bank informed of your situation. Make sure they know you are serious in your intentions. There is nothing they hate worse than people ignoring them.
Do not use your credit card as easy borrowing, it is seriously expensive borrowing, except sometimes they will give free interest for 6 months on transfers, but do repay that before the period is up!
I think most farmers have found themselves in this situation at some point in their lives and it can give you sleepless nights but stick to your budget, it will be worth it at the end

 

[Still Farming]

Batterned down hatches permanently!

 

[sheep&cows&stuff]

Do keep your bank informed of your situation. Make sure they know you are serious in your intentions. There is nothing they hate worse than people ignoring them.
Do not use your credit card as easy borrowing, it is seriously expensive borrowing, except sometimes they will give free interest for 6 months on transfers, but do repay that before the period is up!
I think most farmers have found themselves in this situation at some point in their lives and it can give you sleepless nights but stick to your budget, it will be worth it at the end

Is there any need to keep bank informed really? Do not intend to default on any payments and I thankfully have no credit cards! Yea, it will be worth it!

 

[wasted years]

Is there any need to keep bank informed really? Do not intend to default on any payments and I thankfully have no credit cards! Yea, it will be worth it!

Depends what kind of sums we are talking about , I talk to my manager on a regular basis or send an e-mail with progress but I am well borrowed.

 

[sheep&cows&stuff]

We aren't talking huge sums - my livestock and machinery are larger than the un-secured debt.

 

[texas pete]

Is there any need to keep bank informed really? Do not intend to default on any payments and I thankfully have no credit cards! Yea, it will be worth it!

I wouldn't dismiss credit cards. They can be a useful cashflow mgmt. tool if you're disciplined.

 

[Kildare]

Depends what kind of sums we are talking about , I talk to my manager on a regular basis or send an e-mail with progress but I am well borrowed.

Banks were not great at telling us the truth about how they were going before they went bankrupt .Might be better in uk

 

[wasted years]

Banks were not great at telling us the truth about how they were going before they went bankrupt .Might be better in uk

I'm talking about running my business , you are on about something else entirely.

 

[matthew]

Is there any need to keep bank informed really? Do not intend to default on any payments and I thankfully have no credit cards! Yea, it will be worth it!

If you are running an overdraft and are very close to the wire, do tell the bank, rather than them telling you. If you need elastic for week or two, it will usually be forthcoming, if you show you are in control of your finances.
The same with say feed purchases. Be honest with your suppliers and maybe spread payments. Most people will accept smaller payments rather than no payment. Or worse still, a bouncing payment.

 

[wilber]

Interested to know how many people have had to really slum it for a period of time in order to get out of a financial tight spot.

As said before I work full time, so farming is on a part time / hobby basis - though it take up 100% of my time thinking!

Anyway, I have invested seriously in the last year, so much so that I have over spent and now find myself in a position where I face a very tough year ahead. It can be done, but I was just wondering how many have 'stuck their shoulder to the wheel' and powered through a tough time?

I know people will say 'I have had it tough for 30 years' - this is not what I mean. I mean, that for the next 6 months to a year I will have to give serious thought to every single pound that I spend...such to a level that yesterday I started to keep a diary of every penny I spend - so that I think twice before wasting money.

There is certainly light at the end of the tunnel - I have a large VAT reclaim coming in 3 months which will help, but it will take a period of time after that to be comfortable again.

Would love to hear some success stories, as a bit of motivation / inspiration never hurt anyone!!

Cant give you a success story (yet) sorry, but i am in a very similiar position and have been for the past few years, had hoped to be out of it by now and working towards achieving my first goal of giving up my full time job. Unfortunatly things have not worked out the way i hoped and i am still struggling. It's just a case of head down, grind onwards and (alot of) hope for the best! Not sure a money log is the right thing (i am not saying to ignore your finiances either), I try not to think of the finances as when i do it just makes me worried and depressed, winter blues dont help the situation either, particularly notice them affecting my mood as soon as the clocks change.

Have their been times when i wanted to just jack everything in, cut my losses and ditch the lot... Of course.

Will it all be worth it in the end?.... I bloody well hope so! At least i can say i gave it a go on my own, which is more than alot of people can say.

 

[sheep&cows&stuff]

Cant give you a success story (yet) sorry, but i am in a very similiar position and have been for the past few years, had hoped to be out of it by now and working towards achieving my first goal of giving up my full time job. Unfortunatly things have not worked out the way i hoped and i am still struggling. It's just a case of head down, grind onwards and (alot of) hope for the best! Not sure a money log is the right thing (i am not saying to ignore your finiances either), I try not to think of the finances as when i do it just makes me worried and depressed, winter blues dont help the situation either, particularly notice them affecting my mood as soon as the clocks change.

Have their been times when i wanted to just jack everything in, cut my losses and ditch the lot... Of course.

Will it all be worth it in the end?.... I bloody well hope so! At least i can say i gave it a go on my own, which is more than alot of people can say.

Great reply. I know what you mean by saying you don't like worrying about finances. I don't open any letters (unless from DARD) until the end of each month. I know exactly in my head how much I owe each place, but I just don't like seeing it in black and white - if that makes sense!

 

[DeeGee]

Didn't know that you can reclaim monthly? - I am in a reclaim situation.

I have always done monthly VAT returns, far better than quarterly if you reclaim tax, especially so with big purchases like fertilizer or new machinery when you can have the VAT back in your account within days if you time things right.

IIRC remember that if you elect to be in the right scheme you can claim back the VAT as soon as you have an invoice, the total bill does not have to be paid to your supplier before you can claim back the VAT. But if you do this I am fairly sure that you must also pay the VAT to HMRC when you have issued a sale invoice, regardless of whether you yourself have been paid.

 

[icanshootwell]

Depends what kind of sums we are talking about , I talk to my manager on a regular basis or send an e-mail with progress but I am well borrowed.

Bank manager. What's one of those. You must be one of the elite if you got one of those.

 

[Still Farming]

Bank manager. What's one of those. You must be one of the elite if you got one of those.

Don't have any here or know of any.
If "friendly" with them their only keeping an eye on their assets?

 

[neilo]

Bank manager. What's one of those. You must be one of the elite if you got one of those.

Perhaps he’s got more borrowed than you.