Reducing Debt - being accountable and taking responsibility

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  • DrSpendLittle
    DrSpendLittle Posts: 698
    Debt-free and Proud!
    Forumite
    edited 11 September 2017 at 4:24PM
    Poor DF. We've just been through our joint monthly expenses with a fine tooth comb and looked at every direct debit. It turns out I've been overpaying him for my share of mortgage and bills :rotfl: He's now feeling a bit sorry for himself and I think has had a wee LBM since he actually spends all his salary every month. Naughty DF.

    However, I still need to sort out mortgage protection insurance and life insurance. DF has his own and hasn't switched for a while so he is going to look into that.

    Question: do people have life insurance AND critical illness / income protection / mortgage protection insurance? Do I need both?

    I also need to sort out breakdown cover for my little car (will try to add onto DFs policy for his car) and then we will pool this and split the payment since we take his car on holiday and use it for general driving. Mine little car is just my commuting car.

    But, we also still need to switch buildings, contents and car insurance. So, all in all, I'm expecting a monthly gain! Makes me feel slightly less guilty about yesterday's unplanned purchase!

    Today has been a top up shop but it was DFs turn to buy so I've actually had a NSD.

    Tonight is toad in the hole and a second movie night with homemade popcorn.

    DSL :j
  • DrSpendLittle
    DrSpendLittle Posts: 698
    Debt-free and Proud!
    Forumite
    edited 11 September 2017 at 4:26PM
    Travelled into the office today for the first time in ages. Yawn. Was hoping to park for free on the road but I can't guarantee I'll be finished with my meetings before the yellow line comes into force, so used one of my parking cards. Brought lunch, snacks and water. DF said I looked like I was going on a picnic. I consider that an MSE win! :money:

    Yesterday was a VLSD (very low spend day :rotfl:). For lunch we had homemade soup and homemade bread and for dinner we made a couple of curries with stuff from the fridge.I spent £3.49 from my discretionary budget to rent a movie online. We were too full for homemade popcorn!

    Today I put £10 fuel in my little car to cover my journeys into the office this week. I don't foresee an other spends, but I may pop by to collect my prescription from the chemist on the way home so I can try for a NSD tomorrow.

    I CANT WAIT for payday on Thursdsay - I've already done my September budget using YNAB and given every £ a job and now I just want to see that red turn to green. I also want the £99 that is currently yellow in my partnership card account to turn green - it tells me I was naughty and made an unbudgeted purchase (said kitchen equipment on Saturday). Need to wait for payday. Not so MSE.

    Over the past few days I've been thinking of ways I can balance my desire to be debt free ASAP with the need to be sensible about budgeting for the yearly expenses and building an EF. I've watched a few Dave Ramsey videos on zoutube and taken some inspiration from that. I've been thinking about a house that I've see for sale and what the potential mortgage payments would mean for my budget. I've also been thinking over how we could potentially extend it in the future and thinking through ways of saving for this. Its all hypothetical at the moment, but its really keeping me on track and determined to clear my debts ASAP.

    I have decided to commit to two goals that will help me to realise my 'debt free ASAP' ambitions. These are:
    1) Pay £4000 off my CC debts by January 1st 2018
    2) Be CC debt free by 1st July 2018

    I've worked out my YNAB budgets and set objectives for repayment totals and dates to help me achieve the above. I think I can achieve this as long as I stick to budget. Of course, there is xmas, DFs birthday and a big car service coming up between now and mid January. I've got £500 coming in from a work fee which will cover DF birthday and most of Xmas and I'm saving £50 per month for the January car service (I was told it'll be around £250).

    There are a few things in my 'normal' YNAB budget that I won't be adding funds to before January. These are: new laptop, music, hairdressers, holiday and clothing. These are all non urgent things and I don't see me needing them for the next 9 months so I will wait until January 1st to start paying in to these. Things that still get my money are: dentist, car maintenance, presents, emergency fund, YNAB, swimming, prescription, toiletries, misc expenses and cash kitty.

    I've enjoyed catching up on some DF diaries this bank holiday weekend. I'm going to post separately about the ones I've been reading and taking inspiration from, hopefully later this week. There are so many to get through and I want to read from start to finish so I'm taking it slowly and digesting them before I start commenting / chatting / thanking etc!! :)

    Hope everyone else is as excited for payday and a new month of sticking to budget as I am :D

    DSL :j
  • You sound like you've really got this sorted, some good targets then.
    You could always do some surveys or mystery shopping things to earn some pennies for those non essential ynab categories. I use vouchers I get from surveys for gifts and cash for my wool fund.
    I'm also eagerly awaiting Thursday night to do my mortgage overpay. To reset my Ynab pots had to find out on Friday morning what my mortgage interest for this month has been.

    Isn't it a shame we wish for months away like this but at least it keeps us of the financial straits and narrow.
    Outstanding mortgage: £23,181 (December 19)
    MFW 2020 Challenge Member #10 0/£2318
  • Some great plans there. Yes I'm so looking forward to 1st Sept too! Good luck
    Lightbulb moment - 17/08/2017 £17,033.  Current CC debt £1750 DFD 31/7/24 5 months to go…. 21 weeks 

  • You sound like you've really got this sorted, some good targets then.
    You could always do some surveys or mystery shopping things to earn some pennies for those non essential ynab categories. I use vouchers I get from surveys for gifts and cash for my wool fund.
    I'm also eagerly awaiting Thursday night to do my mortgage overpay. To reset my Ynab pots had to find out on Friday morning what my mortgage interest for this month has been.

    Isn't it a shame we wish for months away like this but at least it keeps us of the financial straits and narrow.

    Thanks! Yes, sad that we wish the days away but I think it'll become second nature to me once I get in a more positive position. Happy payday! I hope you enjoy resetting your ynab pots.
  • Some great plans there. Yes I'm so looking forward to 1st Sept too! Good luck

    Thanks for dropping by! Can't wait to update all my stuff tomorrow once my initial tranche of direct debits leave my account and start overpaying my CCs with this months allotted budget. Enjoy!
  • DrSpendLittle
    DrSpendLittle Posts: 698
    Debt-free and Proud!
    Forumite
    edited 11 September 2017 at 4:27PM
    Its payday! :D

    Its my first payday as an MSEer but also important, its my first payday in a looooong time where I've had a positive bank balance starting the month AND know that I will have a positive bank balance finishing the month.

    To think I entered last months payday with a £639.45 overdraft seems insane to me now. Since 11th August, I've kept on top of my spending and ended the month with £137.09 in the bank. This means I've pulled things back by £776.54! It just goes to show you what you can achieve in just 20 days by being mindful with spending patterns, stopping the frittering and selling some stuff on ebay.

    I spent yesterday finalising my budget for September and it was so nice to input my salary as income into ynab and see everything go green. I also took some time to watch more Dave Ramsey zoutube clips. That guy is a financial monster! So good! Also had a NSD.

    Over the next few days I will be waiting for and recording the tranche of direct debits and standing orders that will be leaving my account. I will then overpay my cc's as per my ynab budgeted repayment plan for this month before new statements are generated. I intend to pay £1,021.25 off my total debts this month (exc. student loan). I can' wait to see the CC balances go down. I will update my signature and provide an monthly update over the next few days.

    My emergency fund should be up to £122 by tomorrow. My plan is to have £1k in there by July 2018. I may need to dip into it for £400 for the new boiler as I haven't put that aside in my budget - I'm too keen to get the debt paid off.

    Happy payday for those 'last working day of the monthers' and enjoy the start of a new month - a nice clean slate!

    DSL :j

    p.s. I'm in the office today. Parked on the road to save parking card usage and brought in my breakfast (yoghurt, almonds and banana), lunch (homemade soup and bread) and water (tap water tastes rank in the office!). Should be a NSD. Still haven't picked up my prescription doh! :)
  • Well done on an amazing turnaround in such a short amount of time. Brilliant to start the month with a positive balance
  • Orange_Ena
    Orange_Ena Posts: 1,297 Forumite
    Wow, your done brilliantly to get rid of that overdraft so quickly :T Best thing I did was get rid of mine and start living in the black.

    Good luck with your goals, I'm sure you'll achieve them as you're so focused. Great to read :)
    Debt Apr 15 - £6895.44 :( Apr 17 - £2500 :) Dec 17 - £560 :) July 18 - £199 :D
    CHEFS challenge (Cruise Holiday Entirely Funded by Surveys) - £685.79
    Every penny is a prisoner :D
  • Fantastic achievements keep it going!
    Lightbulb moment - 17/08/2017 £17,033.  Current CC debt £1750 DFD 31/7/24 5 months to go…. 21 weeks 

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