£67,031.92 is a frightening number indeed....

armchairexpert · 28 February 2017 at 1:44AM

Remember - and I know you know this! - that debt repayment is cumulative. The percentages are always low at the beginning, but as you start to get the overall numbers down, the same payment looks bigger and bigger. I realise I'm not saying anything new, but it sounds like you need a reminder.

Debt busting also gets easier as the habits get ingrained, so if you've done this well in the first month, you get to give yourself an enormous gold star because it is all upwards and onwards from here.

Treadingonplaymobil · 28 February 2017 at 5:41AM

brizzledfw wrote: »

Looking good TOPM...very good. Particularly impressed by the new state of your business account. That's some swift turnaround

I've been lucky in that february was a pretty good month, turnover-wise, which has allowed me to recover quickly. Now if I could just have another month or two like that so I can shove it towards debt payment rather than bank account recovery...

armchairexpert wrote: »

Remember - and I know you know this! - that debt repayment is cumulative. The percentages are always low at the beginning, but as you start to get the overall numbers down, the same payment looks bigger and bigger. I realise I'm not saying anything new, but it sounds like you need a reminder.

Debt busting also gets easier as the habits get ingrained, so if you've done this well in the first month, you get to give yourself an enormous gold star because it is all upwards and onwards from here.

Thank you! I do know it really, it's just hard to see all that work translated as such a tiny percentage of the overall debt! I suppose at least it's a sign that if we keep doing it, the debt will keep dropping.

Treadingonplaymobil · 28 February 2017 at 5:53AM

Week 3: Day 3

A slightly less positive start today - found out last night that I had mis-recorded the holiday cost that we have committed to, and actually we need to find £425, not £300. It’s not a huge disaster, as at least we’ve found out while we still have five months to save for it, but it means I need to add it as a priority category to ‘overpay’ to when I earn any extra money. Annoying, but not a disaster. Another punch to roll with, as YNAB would tell me.

On the upside, it is the END OF FEBRUARY. That means I can spend a little time this evening rebalancing the budgets, hopefully making another little debt overpayment, getting everything square for a new month tomorrow. I have had March's budget planned for WEEKS (embarrassing), but it will be good to actually get to it and make sure there's enough money for all the pots. This all makes my organised side very happy. Also it will be SO pleasing to just withdraw March's salary from my business account, instead of having to wait for it to trickle in in cribs and drabs throughout March because I've already spent everything I turned over during February.

To Do today:
1. at the end of the day, when any money has come out of the account that needs to, check the budget pots that need to be zeroed for the new month (mainly petrol, family kitty, food, a couple of others), divide up according to formula and make debt overpayment (hopefully!)
2. Send out the last of February's invoices
3. Social media while working
4. Finish knitting the hat
5. Post eb@y sale
6. Clear the ironing mountain

To do this week:
1. During our family meeting, focus on ways to save electricity, after the success of last week’s ‘how to save water’ chat. Done!
2. Also during family meeting, try to work out who’s going to need a haircut next month, so we can make sure there is sufficient in the budget. Done!
3. Plan out March working time. Done!
4. Update YNAB for March once we get to the 1st.
5. Sit down with DH once we get into March and chat through current budget situation, so he can see how much positive effect there is from the budget changes we have made.

JoJoC · 28 February 2017 at 10:07AM

That's annoying about the holiday but you're right - you have time to fix it and you have the means to fix it now. Before, what would you have done? Not realised until last minute and put it on a credit card or spent money that was allocated elsewhere? You should recognise this as a big step and again you are taking control of the situation and owning it. Well done!

You sound nice and positive about your month ahead - I'm getting the same feeling and have been working on my budget (although now finished yet).

Hope you have a nice, productive day!

joeyjimbles · 28 February 2017 at 11:45AM

Just on the subject of menu planning, it's worth getting in the habit of checking out what the Aldi Super 6 and LIDL equivalents are - I think they publish them on their websites on Thursdays and I know that someone puts them on a thread on MSE but I don't know which one I'm afraid. It can help given MySupermarket is less good on comparisons for those two shops and a bit of savvy stocking up with fruit and veg from there can save a lot of money, The veg wars at Christmas began from Aldi/Lidl's extreme price cutting to 19p a bag apparently.

Treadingonplaymobil · 28 February 2017 at 11:52AM

Oh yes, good point about the super 6. Must remember to check that each week.

Treadingonplaymobil · 28 February 2017 at 3:39PM

Ha. Have just realised something interesting. The list below is how I am currently dividing up any extra money that comes in (excluding self employed income, which is now held in my business account until the end of the month) - so things like eBay sales, underspends on budgeted items etc:
20% debt
10% next month's money (this is the interesting bit)
10% holiday
10% DH kitty
10% my kitty
5% family kitty
5% food budget
5% house maintenance
5% Christmas
5% birthdays
5% children’s clothes
5% new bike for child 1
5% emergency fund

Basically, some of the things that got cut when I went through our original SOA, but I still felt that ideally I wanted more money for, plus a little sensible saving in the form of an emergency fund and putting money by for the next month.

ANYWAY I have just realised that I actually put enough by using the above division of income to cover my minimum £120 income for March, without even needing to draw anything from my business account. This is absolutely ridiculously amazing to me. I know it only means I put £120 aside (and that includes £20 or so which was leftover in the food and fuel budget pots today, so more like £100 in reality), which isn't a huge sum, but it is SO FAR removed from my previous financial self.

I am still going to draw my minimum 'salary' from the business account, but it will be partly divided up according to the list above, and partly thrown straight into the 'birthdays' pot, as two of the three children have birthdays this month, and since the pot has only been building for one month it's not really big enough to cope! Expect me to be researching budget birthday ideas in the coming days...

JoJoC · 28 February 2017 at 3:53PM

Am i getting this right - so all the extra money you've been divvying up and allocating with the above formula, you've been able to save £120 in your 'next month' pot? Wowza!

Good luck in filling and then emptying the birthday pot!

Treadingonplaymobil · 28 February 2017 at 3:59PM

JoJoC wrote: »

Am i getting this right - so all the extra money you've been divvying up and allocating with the above formula, you've been able to save £120 in your 'next month' pot? Wowza!

Good luck in filling and then emptying the birthday pot!

Yes! I'm a bit in shock at it myself! I can't believe how well, ermmmm, having a budget and then sticking to it has worked for us.

I'll be picking up my Rocket Science degree any day, at this rate :rotfl:

JoJoC · 28 February 2017 at 4:40PM

And the honorary budgeting degree goes to... TOP!

Seriously, that's awesome news. What a boost it must be

£67,031.92 is a frightening number indeed....

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