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  • FIRST POST
    • Penguin8410
    • By Penguin8410 12th Oct 16, 5:28 PM
    • 57Posts
    • 97Thanks
    Penguin8410
    So here i am again......
    • #1
    • 12th Oct 16, 5:28 PM
    So here i am again...... 12th Oct 16 at 5:28 PM
    So I've just been given my 5 year MSEversary notification yet i am in a much worse situation than i was 5 years ago.

    What have i actually been doing??!! i'm so angry with myself right now but so determined to change for the better.

    I now have 2 girls who i need to get debt free for. we live in a 2 bed flat and our long term aim is to get a house and some outdoor space.

    I really need to stay motivated this time and acually crack this but its going to be a struggle for the next 11 months until the loans finish. i have a plan set up and ready to go where i'm going to be snowballing but until then it will have to be minimum payments and buckling down as much as i can. I
    have no idea how we are going to afford presents for christmas but i will make as many as i can.

    So those of you who are making a dent in your debts and those of you who are on the debt free roll of honour what are you main tips?

    thanks for reading my ramblings
    Car finance: £9312 £1740.51 Nationwide loan: £16176 £3092.78 All other debts £19494.28 £19494.28

    Debt free date aim: September 2019 (reduced by 1 year already!)
Page 1
    • datlex
    • By datlex 12th Oct 16, 7:17 PM
    • 1,059 Posts
    • 911 Thanks
    datlex
    • #2
    • 12th Oct 16, 7:17 PM
    • #2
    • 12th Oct 16, 7:17 PM
    For me going to weekly pay has helped me hugely with my finances.

    For me the key has been planning and piggy banking so I know what I have to spend. I sit down at least once a year and input all my planned finances for a year into a spreadsheet. This then allows me to know how much I need to put aside from my pay each week to cover these bills.

    I always end the week with £0 in my initial current account, this is because I start each week with a fresh slate. I get paid, I transfer funds to my bills account, I move a certain amount to savings. With the amount that is left I with draw some cash. Then the final amount is for spending. I spend on my card and transfer the funds to cover the transaction from my initial account to an account that mirrors the credit card. At the end of the week any money not spent is transferred across to savings.
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 16, 7:26 PM
    • 2,546 Posts
    • 4,358 Thanks
    enthusiasticsaver
    • #3
    • 12th Oct 16, 7:26 PM
    • #3
    • 12th Oct 16, 7:26 PM
    Budgeting is something I have always done and putting at least a small amount away every month for emergencies so not tempted to put on credit cards. I use them now and pay them off every month but when money was tight I did not use them at all except in dire emergencies when emergency fund empty.

    Weekly cash drawn out for everyday spends, groceries, entertainment, petrol and no other card payments so that I could budget to the penny for direct debits, standing orders etc. Each payday I would itemise all the direct debits, standing orders and leave that much in the account. Savings pots had money put in them for emergency, holiday, car, house and gifts and then remaining income divided into weekly spend which I kept in a grocery purse and OH and I had a certain amount weekly and kids had the child benefit for their clubs, interests, school uniform. We do not need to be so careful these days but budgeting is the only way to stay out of debt.
    Debt and mortgage free and saving for early retirement
    • EssexHebridean
    • By EssexHebridean 12th Oct 16, 8:09 PM
    • 6,318 Posts
    • 35,049 Thanks
    EssexHebridean
    • #4
    • 12th Oct 16, 8:09 PM
    • #4
    • 12th Oct 16, 8:09 PM
    Welcome (?!) back Penguin. You know the drill, if you want suggestions of possible savings you might have missed shove your SOA in here and we can take a look.

    Another fan of budgets and pre-planning here. OH's money goes in last day of the month, mine anywhere between 28th - 2nd depending whether they remember or I have to remind them. we have regular transfers set up for money from our joint account into our various savings "pots" - for car expenses, holiday, household expenses, general "fun stuff", present buying and a few others bits. Savings all go out then too. Everything is accounted for. Our personal spending money transfers into our own accounts and I then split off personal savings and stuff from mine too. The savings pots mean that we don't get taken by surprise by the annual expenses or silly things like small household appliances dying on us. It's a method that works for us.
    MORTGAGE FREE 30/09/2016
    • ramblehan
    • By ramblehan 12th Oct 16, 8:17 PM
    • 342 Posts
    • 683 Thanks
    ramblehan
    • #5
    • 12th Oct 16, 8:17 PM
    • #5
    • 12th Oct 16, 8:17 PM
    Hello.
    We've found YNAB (youneedabudget.com) to be the best thing that has helped us to get our head around our budgets and to stay on track. There's a free trial, but you do have to pay for it.
    Ramble x
    LBM June 2015: £24025.75!
    The big bad three:£22,034 8.8% down 91.2% to go:
    Tax savings: £400/£1800
    'Very little is needed to make a happy life' Marcus Aurelius
    • Penguin8410
    • By Penguin8410 17th Oct 16, 3:25 PM
    • 57 Posts
    • 97 Thanks
    Penguin8410
    • #6
    • 17th Oct 16, 3:25 PM
    • #6
    • 17th Oct 16, 3:25 PM
    Thanks all for your replies.


    Things got worse since i wrote this which has made me realise even more that we, or mainly i, need to sort this out. We got a final bill from council tax as the payments have been late too many times so we've been put on an arrangement plan with them and also got a letter before court summance from dart charge for forgetting to pay the dart charge back in june. This has left us with nothing in our savings but has forced me to have an honest chat with OH about what state my finances are in so everything is out in the open. he was so nice to me about it that i sat at my desk and cried. what a loser!


    anyway so that is whats happened. i've also cancelled youngest's swimming lessons and will just have to take her to the local pool as and when we can. I've also set up the basic santander account which give you no overdraft and a top up card so once your moneys gone its gone unless you transfer some more over. i feel that with this option i will have more control over my finances. I cut up my barclaycard and will give oh my santander card for my current account and also my santander credit card tonight so that i don't have access to either.


    when i did this before and actually got somewhere i took out money for petrol, food and spending in cash and just use that so i'm going to go back to that method with the petrol and spending and use the top up card for food shopping.


    I'll look at ynab again ramblehan as did before but didn't really get into it or probably didn't want to pay the fee!.


    Essex Hebridean the way your finances work is exactly how i plan ours to work when we put them all together. for the next couple of years it will work out better for us keeping them seperate but then we will get everything joint and not just household things.


    enthusuastic saver i definitly need to do a pot for the kids, especially now eldest is at school as there always seems to be something you need the pennies for!


    datlex i think weekly pay would work out better for me too but unfortunatly we don't get that option. i do similar with budgeting and have a spreadsheet for each month but i still overspend so i think its that that i need to get undercontrol to move forward.


    thanks for listening to my ramblings!
    Car finance: £9312 £1740.51 Nationwide loan: £16176 £3092.78 All other debts £19494.28 £19494.28

    Debt free date aim: September 2019 (reduced by 1 year already!)
    • -taff
    • By -taff 17th Oct 16, 3:52 PM
    • 6,458 Posts
    • 3,731 Thanks
    -taff
    • #7
    • 17th Oct 16, 3:52 PM
    • #7
    • 17th Oct 16, 3:52 PM
    I tried ynab about two years ago, didn't get on with it at all.

    I don't know if i's the new shiny version or what but I get this one much better, and the app is very helpful for spending on the run.

    All your 'pots' are in one app, so no need to physically split them up.
    • EssexHebridean
    • By EssexHebridean 17th Oct 16, 4:03 PM
    • 6,318 Posts
    • 35,049 Thanks
    EssexHebridean
    • #8
    • 17th Oct 16, 4:03 PM
    • #8
    • 17th Oct 16, 4:03 PM
    Personally - and this is just my opinion - I would avoid budgeting software that you have to pay for at this point in times. If you're only just making ends meet as it is, then another £3.99 is not a good plan. Use the MSE Budget Brain tool and the usual SOA template and work everything out to the last penny. If you should have 73p in the bank the day before payday, you literally need to get things tight enough that there is exactly that left behind. Make sure that where your SOA says you are budgeting for things - for example car expenses, or insurances - that you are actually setting this money aside otherwise things can never improve.

    Our method of budgeting works just as well for separate money as for joint by the way - it just varies where the money goes from/too.
    MORTGAGE FREE 30/09/2016
    • Penguin8410
    • By Penguin8410 20th Oct 16, 1:53 PM
    • 57 Posts
    • 97 Thanks
    Penguin8410
    • #9
    • 20th Oct 16, 1:53 PM
    • #9
    • 20th Oct 16, 1:53 PM
    i agree EssexHebridean i think this is why i didn't buy it in the first place after the free trial! thats what i'm doing at th moment. I've done all my budget spreadsheets and have worked out what we will have left. this will change as i don't get a couple of our bills until midway through the month. they are direct debit but the figure occasionally changes by a few pounds each month. i monitor these and know the dates the bill is produced but there is always enough money to pay them.


    the extras like car expenses etc is where we've always gone wrong before so i've started us a pot and worked out how much we need to put in to cover mots etc. hopefully this will put us in better stead for next year as we'll actually have the money to pay for them.


    once i feel like i've got a couple of months under my belt with this i think i'll feel a bit happier that its actually working and we will stick to it
    Car finance: £9312 £1740.51 Nationwide loan: £16176 £3092.78 All other debts £19494.28 £19494.28

    Debt free date aim: September 2019 (reduced by 1 year already!)
    • -taff
    • By -taff 20th Oct 16, 5:36 PM
    • 6,458 Posts
    • 3,731 Thanks
    -taff
    Personally - and this is just my opinion - I would avoid budgeting software that you have to pay for at this point in times.
    Our method of budgeting works just as well for separate money as for joint by the way - it just varies where the money goes from/too.
    Originally posted by EssexHebridean

    I agree about not paying for it. I was just thinking that it shows a different way to budget. If you're any good with spreadsheets or pen and paper, I'm sure you can replicate it.

    I used to have a normal spreadsheet where I recorded my spends, I didn't actually budget properly. The first month just got me into the habit of working out where my money went.
    • enthusiasticsaver
    • By enthusiasticsaver 20th Oct 16, 5:56 PM
    • 2,546 Posts
    • 4,358 Thanks
    enthusiasticsaver
    You don't need to pay for software. Working in cash will mean you can't overspend. Take a calculator with you when you go shopping and a list and stick to it rigorously. I think your idea to put money away for car repairs etc etc is good and will help. Once you have got in the mindset of watching your budget closely it will be second nature
    Debt and mortgage free and saving for early retirement
    • katy_ann
    • By katy_ann 20th Oct 16, 9:01 PM
    • 896 Posts
    • 4,483 Thanks
    katy_ann
    For me budgeting is everything! I had a spreadsheet for everything, incomings, outgoings, Christmas, birthdays, eventualities - every single penny I had was accounted for.

    Its a little different as I didn't have children when I had my debt like you do but I'd still recommend spreadsheets and planning, from there you can see where each penny goes and you wont "lose track" of any money

    Start off with smalls steps
    Officially Debt Free on 10/12/2015 | Married on 02/07/2016 | Baby Boy Due on 21/11/2016
    November NSD 0/6
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