A path out of the Jumble

Jumblerina · 29 August 2016 at 8:45AM

Morning Everyone,

Just had what feels like my millionth lightbulb moment and it's pretty bright! I've used MSE in the past and seem to have tumbled off the wagon too many times.

I don't want to continue spending and living the way I have, things have got to change and I ready for them to

Between 2012-13 I cleared just over £8.5k in debt in a year, with just £6k to go - then an unexpected career break and some long overdue house renovations put me back in debt :eek:

Since then I've had my head throughly buried in the sand, it's time to draw a line in that sand and come up with a plan

To dig through the jumble that is my life, to set some goals and get back on track.

I'll be posting every day to keep myself motivated, I've spent the last few days reading diaries on here which have given me a real boost :money: hope you enjoy my random ramblings

Jumblerina

Jumblerina · 30 August 2016 at 8:35AM

Morning Diary and fellow Debtfreers,

I've taken the first step towards getting myself on the right track, looking at my debts and figuring out where I am.

So here's my debt position today;

Card 1: £12.007.63
Card 2: £5529.67
Card 3: £3605.02

£21,142.32 :eek:

This doesn't include a loan I've got about 7 years remaining on for £18,000-ish for house renovations

So all in all, I'm looking at just over £39k excluding my mortgage - it's shocking how this can happen, but I did it to myself and I'm going to be the one who gets out of it. I'm going to tackle the credit card debt first, there are a few good things I'm already thankful for;

1. All of my credit card debt is 0%
2. I'm already making more than the minimum monthly payments
3. I can look at my budget and put together a re-payment plan

I spent yesterday thinking about my 5, 10, 15 year plans - I've never really worked to a plan yet I know if I want to achieve all the things I dream of, I'm going to need one

The last 3 days have been no-spend days, my weekly shop has kept us well fed and our dog has kept us entertained. Having NSD's really helped me last time I tackled my debts and I kept spreadsheets of how I did it, so I had a little look over them yesterday too.

My situation may have changed since then yet I know if I create a budget, have a plan and stick to it - I can start to make a path out of this mess I've got myself in.

Today will be a low-spend day, we're off out for a walk in the park then off to buy some cereal and my first coffee shop trip for 2 weeks. It's the simple things that make the difference

Hope you all have a lovely day - so nice to see the sun out

Jumblerina

doingitanyway · 30 August 2016 at 5:24PM

Good luck Jumblerina. You can do this! I've added you to my subscriptions so I can cheer you on

little_miss_spendtoomuch · 30 August 2016 at 5:28PM

Good luck! £8.5k in a year is amazing. Shows you've got what it takes x

Jumblerina · 31 August 2016 at 8:03AM

Thanks so much for stopping by DIA and LMSTM

it's great to have your encouragement, this is a great forum with lovely supportive people. I know I can get back on track :money:

Jumblerina · 31 August 2016 at 8:23AM

Had a lovely day at the park yesterday, was great to see the sun shining and get some fresh air

it's a beautiful nature reserve with a lake a short drive from my house, you'd never know its there - a hidden gem.

Despite planning to grab a coffee and cereal - when we nipped into the local town I got cards for 3 upcoming birthdays. I realised I wasn't that bothered about having coffee, which is crazy as it's usually my go to treat :rotfl:

So it was a low spend day - just £5.17 for birthday cards, it's an independent shop with lovely designs. Spent yesterday talking about my short/long term goals with my OH, he'll be personal debt free in April 2017. He's being really supportive of my suggestions to cut the budget

After sitting in the garden wishing I had a picnic set, my neighbour popped her head over the hedge to chat. I didn't mention it, but she asked me if I went on picnics and would I like a set she was going to take to the charity shop :T it's like the cosmos heard me! I'm now the proud owner of a beautiful wicker picnic set, complete with real crockery and cutlery

I'm going to make her a cake today to say thank you - I've already got all the ingredients in the house and I was going to bake anyway for our trip to the seaside tomorrow.

We grilled some chicken on the grill and had it with salad, all from the weekly shop and sat out chatting until a beautiful sky full of stars appeared

It was a wonderful reminder that it's the little things in life, those that are often free that put a smile on your face.

Hope you all have a great day - I'll be back later to set out my goals and plans for 2016-18.

Jumblerina

Jumblerina · 31 August 2016 at 9:38AM

I've put a lot of thought into what I'd like to achieve I'm the next 5, 10, 15 years over the last few days. I've never really had set plans before yet it's something that's really started to appeal to me. Maybe it's because my 36th birthday is hurtling towards me and time just seems to be flying by!

So without further adieu, here's what I'd like to achieve

2 years - Age 37

1. Save an emergency fund of £3000
2. Pay off my credit card debt - currently sitting at £21,142.32. My credit card debt free date is 31 August 2018

3. Reduce my working week to 4 days
4. Move to a new house - which will be my forever home complete with a huge garden, dining room and as few neighbours as possible!
5. Close all but one of my credit cards

5 years - Age 40

1. Once my credit cards have been cleared, pay off my home renovations loan - it's currently at £17,921.19, by making the standard payments it will be at £12,261.75 by 31 August 2018. By paying an additional £265/month I'll pay it off in 2 years with a debt free (excluding mortgage) date of August 2020

2. Start saving for a 40th birthday coast to coast trip across the USA. I'll take extended leave so I'll need to cover any pay for the period that's unpaid and all the trip expenses.
3. Plan and create a savings plan for renovations to my new house
5. Look into going back to University to study or start my own business.

10-15 years and beyond - Age 45+

1. When I'm debt free and have had my big coast to coast USA trip - start on paying off my mortgage.
2. Save 6 months expenses
3. Plan our next big trip - maybe take 3 months out to travel
4. Start building an annexe on our house for my parents/brother - funded by savings.
5. When we're totally debt free and have £20,000 savings - start planning to retire early.

I'm going to go away and have a think about what mini-goals I'll need to meet my 2 year achievements. The only way things will change is if we have children before I'm 40 - I'm not sure if it will happen for us, if it does that will be amazing, if not - we'll always have each other

Jumblerina

tunnelandlight · 31 August 2016 at 10:25AM

Jumblerina,

Best of luck with your journey, I am looking forward to following you. I suppose that although you do have big and scary loans to repay at least you know where they went and they increased the value of your home?

I love the idea of planning long term. I will be taking a leaf out of your book and doing a 2 year plan. I suspect that life will get in the way, but it will at least focus the mind!

Keep enjoying the little things.

little_miss_spendtoomuch · 31 August 2016 at 4:18PM

Sounds like a fantastic life plan!

Jumblerina · 31 August 2016 at 6:39PM

Thanks for your post TL - my house is almost finished, the bits that are finished I get a lot of enjoyment from, thanks for the perspective

it's nicer to think of what I've gained from what spent vs the amount I've got to re-pay :eek:

Jumblerina · 31 August 2016 at 6:40PM

Thanks LMSTM - here's hoping my plans work out

A path out of the Jumble

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