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    • ab_saver
    • By ab_saver 18th Sep 16, 11:04 AM
    • 126Posts
    • 310Thanks
    New Grad DFW
    • #1
    • 18th Sep 16, 11:04 AM
    New Grad DFW 18th Sep 16 at 11:04 AM
    Hello MSE-ers,

    I'm a mid 20s new grad after 6 years of uni and now employed

    I just have the pesky issue of my overdraft and CC to sort out.
    At it's worst, my total debt was about £2300 (never really had a lightbulb moment but racked it up living as independent adult before 1st month's pay, and on 3 months studying abroad, which I don't regret a jot).
    Currently I have:
    £498.18 CC
    £1243.88 OD
    Total: £1742.06
    (plus £22k student loan but let's not go there as I'm just planning on letting it come off with PAYE from April next year and not thinking about it).

    Good news is there's money coming in.
    £630ish old student house deposit to be returned soon (hopefully this week).
    £83 guarantor service rebate (they told me it was due and haven't paid twice so hopefully will arrive ASAP)
    £20ish overpaid bills on old place
    £20 owed by mum for vch I bought her
    £6 in charges in error bank have promised to refund

    £2k ish (will find out exactly how much on the day as had a bumper 1st payslip last month) due on 28th

    Plan is to pay CC with returned deposit and keep it hidden away until payday and hopefully beyond.
    Hope to keep spending to absolute minimum until next payday. Having big shop delivered today so hopefully only milk/bread needed until then. After payday will join the October supermarket challenge. I'm going out for a meal on Weds but only burgers so should be cheap.
    I estimate that I'll have about £1000 left to pay off by payday. After rent/bills etc, my disposable income is about £1000 - so any spending will go back on the OD.
    I'm hoping to clear £600 (i.e. only be £400 overdrawn) by end October payday, and be in the black by November payday.
    My £400 spending budget for October is as follows:
    £120 food (for me and OH - I'll aim to be below £100 as my cupboards are currently well stocked).
    £90ish contents insurance (I should have done this 2 months ago but kept putting it off because of the expense. Found a deal with cash back I plan to get as soon as payday is here)
    £50 cash/spending (to include treats like coffees (allowed on 13hr long days only!))
    £50 travel expenses (OH split between here and another city ~1.5h away)
    This leaves £90 for other expenses (which may have to include a £55 bike service I've also been putting off but needs doing before weather gets really bad).
    Under this umbrella - £36.99 one off payment to gym including joining fee (£16.99/mo dd after) - this is a concession to my health both physical and mental.

    I have a list of 'treats' and hope to pick one a month - most of them are practical. On the cards after payday are: a pannier bag for my bike, and waterproof gloves to cycle in as weather gets colder (both of which I'm justifying as much needed!!). Estimated total cost (< £50) - so if the bike survives without a service I'll have these instead.

    I have banned new clothes (except tights) etc. until Jan sales at v earliest.

    If I can pay off £600 this month and the next that puts me up £200 and in the black! That's the plan - DF by November.

    Long term:
    Once I'm solidly out of OD, plan to upgrade bank acc so I get in credit interest and other perks - aim November.
    Close student CC and get a rewards one pre Christmas (and before I book expensive flights to see parents who live overseas) (thinking JL) - aim november if credit looks good enough
    Open Help to Buy ISA - aim November / December
    Open regular saver - aim December/January

    Savings goals:
    £10k+ towards house deposit by mid 2018
    £50/month into holidays fund
    £100/month into wedding/life event/big purchases fund

    I'm mostly writing this down here to hold myself accountable (I know from fitness and food tracking that the mere act of documenting your habits gives a very powerful nudge to get them in order. That said, feel free to comment (is my spending outrageous??), but please be kind to me - I'm new to living like a grown up (and council tax ).
Page 3
    • giblet1979
    • By giblet1979 17th Oct 16, 10:44 PM
    • 835 Posts
    • 3,328 Thanks
    Sounds like a lot going on! How great is your mum to do all that x
    Debt remaining:
    Mortgage - £123,340 (of £134,600)

    Work overpayment and home improvement loan paid back (£19200)

    • ab_saver
    • By ab_saver 18th Oct 16, 11:01 PM
    • 126 Posts
    • 310 Thanks
    Thanks giblet - she is fab. I need to measure the windows, which of course I have yet to do.

    Had a rather prolonged meeting with the IFA. We will meet again after my holiday to discuss quotes for income protection. It might be a bit more complicated as I have had genetic testing in the past (nothing remotely serious, but I am theoretically 'at risk') . Will meet again after holidays to discuss this.

    Had some sensible advice about mortgages - the only possible hitch is whether my OH would be in a job that is salaried or paid from a research grant in some other way - essentially I was told that if it's not on a pay slip it can't be counted towards it (he wouldn't be self employed but in a situation peculiar to academia). However after some discussion with OH we could just use his extra pay to help overpay (he is totally on board with the idea of OPing and getting shot of our hypothetical future mortgage as quickly as possible). Anyway the crux of it is that the sort of thing we'd want would be affordable for us when we are looking to buy (in about 2 years time).

    Away from dreaming and back to reality.

    I've made an EPIC spreadsheet which I'm currently playing with - modeling different options for January onwards. I reckon the most I could save in some way (this includes short term i.e. holidays, Christmas, money aside for annual expenses) without too much pain is about £600 a month. So I'll aim for a minimum of £500/month saved to start with and see where I go from there.
    I got my staff flu jab and free cup of tea
    Still haven't done my relocation expenses or measured my windows... or packed my suitcase... or ironed trousers for tomorrow. At least the flat is tidy(ish)!
    DFW - aiming to be clear Nov '16__________ NSDs Sept 16 6/7 Oct 16 17/18_____ GC Oct: £15.62/40 Nov: £_/75
    £1000 emergency fund #208 - £5.93/ 1000 _ Next: 10k towards a house deposit by mid 2018!
    • ab_saver
    • By ab_saver 20th Oct 16, 10:54 PM
    • 126 Posts
    • 310 Thanks
    Off on holidays tomorrow! My OH has offered to get travel cash so all I might need to spend is a bit on the revolut card if needed.

    I'm doing well with the NSDs here - 17 so far.

    I got an email back from the gym (following my third email to them, which was positively irate at being ignored) and they are refunding the joining fee - £20 winging its way back to me.

    I'm doing the grocery challenge next month with a budget of £75 - but I hope to stock up on some wine for Christmas and fall well within that. I got a load of coupons from Mr W in the post as well as a £4 off £40 one from my last shop... and I have some others kicking around - so I'm going to try some offer stacking - I'm not sure it's a common practice for my rather genteel branch of Mr W

    I'm continuing to play with my EPIC spreadsheet - the problem is that I keep thinking of new categories and I'm not too sure how specific to make it. It's great fun being able to model the effects of small changes over the course of a year or more!

    It looks like the overdraft will be almost identical in size to last month - so a few hundred pounds of debt busting would have happened if I'd been paid correctly

    An email went round about a few extra shifts in work, which I'd happily do - but they haven't sent out the rotas yet so nobody knows if they are free to cover them I also think the overtime rate has been cut - I've emailed to check.

    Since payday is whilst I'm on holiday, I'm writing up my November budget now.

    Estimated amount left after rent and bills: £950
    £75 food
    £100 Xmas/ gifts
    £20 dry cleaning (ballgown for work do)
    £30 railcard (sadly now too old for a 3 yr one )
    £30 travel (would allow me a trip to see OH as he has been doing most of the travel of late )
    £75 personal/general spends/eating out/ any overflow from above budgets
    Total budgeted spends: £330

    Theoretical amount left for overdraft-busting: £620

    Inevitable spanner in works: at some point (as soon as leave is confirmed) I need to book flights to see my parents in January - currently looking at around £400

    So: my focus is to stay as far within my allotted budgets as possible - the Xmas one is high with the aim of spreading the cost and reducing costs closer to the big event. Black Friday also falls just before November payday (which is on Cyber Monday) so I'm hoping to get my OH's final gift plus hopefully a few bits for his sisters (am keeping eye firmly on boots star gifts also).
    DFW - aiming to be clear Nov '16__________ NSDs Sept 16 6/7 Oct 16 17/18_____ GC Oct: £15.62/40 Nov: £_/75
    £1000 emergency fund #208 - £5.93/ 1000 _ Next: 10k towards a house deposit by mid 2018!
    • ab_saver
    • By ab_saver 21st Oct 16, 2:27 PM
    • 126 Posts
    • 310 Thanks
    I'm on the train to OH's and off on my holidays
    Probably won't be much news from me as I'll be too busy having fun

    I had some spends today as I had to buy some tights (ALL my pairs are in the bin) but managed to get some branded ones reduced to clear in the Mr S at the station of all places. £5 for 4 pairs of posh tights is pretty good (hardly primani prices but these are much nicer and might last better).

    I had a bit of a savings brainwave - I have a spare old current account from my shared house that used to have my share of the rent and bills in before they were paid. I could switch it to 1st direct (who don't seem to require any DDs - can this be true?) and get the £100 switching cash and access a 5% regular saver for my long term savings.

    One to consider once I'm back I think.
    DFW - aiming to be clear Nov '16__________ NSDs Sept 16 6/7 Oct 16 17/18_____ GC Oct: £15.62/40 Nov: £_/75
    £1000 emergency fund #208 - £5.93/ 1000 _ Next: 10k towards a house deposit by mid 2018!
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