Financial Planning

By 1866 Edmund had just finished a tour of duty as captain of the 'Frederick William', a first rate i.e. 100 gun ship. He no doubt realised that obtaining his next service commission would be difficult. The diary reflects that opinion by his beginning a detailed analysis of his expenditure and the notes making up his first budget.

The first page is headed: Income on half pay for 1866 - Fritham
 
        £       s      d  
Half pay as Captain    264     12     6
G. S. Pension    150       0     0
Private income  5%    260       0     0
Rent of cottage        8       0     0
Butter sold at market        8       0     0
Taking in cattle to feed        4       0     0
Sale of any hay, 2 calves        6       0     0
Less tax       16     17    0
Total     657     15    6
 
After discounting the smaller items and deducting income tax, he is left with £657 15s 6p. It is worth noting that there are no other references to a G S [good service] Pension in the Diary. There is, however, that entry on his service record. Presumably it was a single payment. His private income of £260 per annum at 5% suggests  capital of about £5,200. We know that the money came from a bequest from Edmund's father Samuel Heathcote - Rector of Walton-on-the-Hill in Lancashire from 1803 to his death in 1847. That bequest started as £7,000 and was reduced by payments to Edmund's first wife Lucy when he was away on 'Constance'. The capital remaining was £5,311-17-9 and its distribution became an interesting issue after Edmund had died: partly explaining what happened to Lucy, Edmund's first wife, after the divorce.  That is for another part of the story.

The page opposite Edmund's statement of income shows how he intends to spend it.

Title: Necessary Expenditure Fritham 1866.

 
                                                £     s     d  

Eustace allowance    50     0     0
Walker ditto    40     0     0
Cleveland, school & dress    80     0     0
J.L.H  [Jessie]    30     0     0
Rates and Taxes    16     0     0
Coals and carriage    21     0     0
Wood, Faggots      2     0     0
Fern for litter & carriage      4     0     0
Gravel & carriage      3     0     0
Living at 2 £ per week  104     0     0
Beer    15     0     0
Wine    30     0     0
Haymaking      6     0     0
Repairs annually    20     0     0
Carriers      5     0     0
Labourers    15     0     0   
Washing    26     0     0
Willis  [servant]    32   10     0
Cook    20     0     0
Housemaid    14     0     0
Stamps      8     0     0
Garden, seeds      2   10     0
Fry's wage Cows, Pigs etc    26     0     0
Pony, harness oats etc          25     0     0
 

This planning exercise produced the happy result for Edmund that his income, £657, was marginally more than his planned expenditure of £595. However, when he produced his budget for 1867, harsh reality indicated that planned expenditure would increase to £833. The main changes came from the 'Living' item: £5 per day rather than £2 and £260 total not £104. The allowances for the three boys - Eustace, Walker and Cleveland - were each £40; servants' wages were very slightly less and Edmund added two extra items: dress for myself £10 and Forest shooting licence, guns, powder etc cost £25. Also, in echo of our own times, Rates, Taxes and Tithes increased from £16 to £25. Of course, Edmund could have reined back his expenditure but he chose not to do so.

By the end of the following year, 1868, Edmund obtained promotion to rear admiral. Half-pay for a rear admiral was almost £200 more than for a captain and from then onwards the family finances seemed to be 'on an even keel': a suitable metaphor for a navy man.
 
 

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