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  • FIRST POST
    • crunch_time
    • By crunch_time 23rd Oct 16, 8:22 PM
    • 1,044Posts
    • 3,065Thanks
    crunch_time
    Learning to budget to make future adventures happen
    • #1
    • 23rd Oct 16, 8:22 PM
    Learning to budget to make future adventures happen 23rd Oct 16 at 8:22 PM
    Evening everyone!

    I've decided its time for a new diary after sort of losing steam with my old one.

    In September 2013 our debt peaked at £29k. With some luck, a vague budget, changing priorities (kids), and some significant salary increases we have now got it down to circa £13-14k.

    I have learned lots during the process but the thing that I feel is holding us back is our inability to stick to a budget (or, more accurately, create a realistic budget).

    So basically the grand plan is to smash this 'debt hangover' as the hubs and I call I, as soon as possible so we can start using the money we currently use to pay it off for the adventures we have been planning pretty much all our adult lives. And also the things we should be doing at our age to be financially savvy like overpay the mortgage, contribute more into pension pots etc etc.

    I love the support from the wonderful people on this forum and look forward to sharing this adventure with you all!

    More info to follow!

    Crunchy
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
Page 27
    • Nicnak
    • By Nicnak 26th Nov 17, 2:20 PM
    • 544 Posts
    • 2,689 Thanks
    Nicnak
    You’ve made lots of progress. Are you glad you’ve managed to get so much sorted? X
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • crunch_time
    • By crunch_time 26th Nov 17, 7:47 PM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    Youíve made lots of progress. Are you glad youíve managed to get so much sorted? X
    Originally posted by Nicnak

    Do you think? I suppose I have really so yes I am glad - thanks Niknak!

    So...

    Christmas shopping update

    I had half an hour is sains whilst the husband distracted the children at home-pets-at. It felt a bit like 'supermarket sweep' but once I was home and totted it up it was actual quite restrained and I'm quite pleased with myself.

    Clothes - there was a 25% off so i bought slippers for myself and the children, a pack of 3 tops for DD, a shirt for DS and pyjama bottoms for myself - which, with discounts all came to £47.25. All of which is needed and was on the clothes wish list for next year anyway. Because of this it will be paid off with clothes money when husband gets paid at the end of December so won't even go towards the Christmas present total but will be wrapped and put under the tree!!

    Stocking fillers

    I stuck to my budget as much as possible and bought glue (£1) and pens (£2) for each child and then a showercap (£2) and two pairs of gloves (£1) each for DD.

    For me I bought make up remover pads (£1.50), hand cream (£1), face wipes (75p), a choc bar (85p), nail polish remover (£2), face mask (£1) and body lotion (£2). I also bought some much needed razor replacements for £4.50 which will go in the stocking too.

    For the husband I bought a bath lily (£1), bath salts (£1), chocolate (85p) and deoderent which should have been £2 but the receipt said 20p so winning there!! I also bought him some more of his favourite mans face moisturiser at £6 but he is worth it and it will make him happy.

    From January DD will get her free hours at nursery (15 a week) which will be split over 2 school hour like days and a morning. Annoyingly we will have to pay for an hour a week so she goes for a whole half day session which will cost us roughly £20-£30 maximum a month depending on how terms fall in a month. I was going to pay for her to have lunches there since DS gets them free at school to make my life a bit easier but I don't want to pay another £20 a month so on her full days she will be having packed lunches and I have decided that DS will too to save arguments. So I also bought them each a lunchbox costing £8 each.

    I used my £20 of nectar points and I am thinking that that has paid for the lunch boxes and the set of pens each.

    So I have spent £47.65 so far on stocking fillers!!! The standard toiletries I'm considering covering with my food budget as I would normally buy them in my weekly shop anyway.

    So I've made a little progress and off to a good start me thinks. I think my stocking is the fullest so far.

    Next stop is using my amazon voucher on secondhand books.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • Nicnak
    • By Nicnak 26th Nov 17, 7:49 PM
    • 544 Posts
    • 2,689 Thanks
    Nicnak
    Do you buy your own gifts?

    Xx
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • museumworker
    • By museumworker 26th Nov 17, 10:23 PM
    • 1,997 Posts
    • 11,282 Thanks
    museumworker
    Just popping in to stay hi, read your diary from the beginning and really enjoyed it. I’m late 30s and our family incomes are very similar, I have a 5 and 3 year old so can identify with the stress of working, juggling family life and getting ill as a result. You’ve done really well and I look forward to hearing how your course and freelancing go.
    Mortgage 16/03/2011: £190K 01/01/2017: £107,729.65 01/07/2017: £95,979.89
    OPs 2011-2016 = £45K 2017 OPs = £9250.20
    • crunch_time
    • By crunch_time 2nd Dec 17, 7:51 AM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    Do you buy your own gifts?

    Xx
    Originally posted by Nicnak
    Yes I do - Husband would be useless.
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 2nd Dec 17, 7:58 AM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    Just popping in to stay hi, read your diary from the beginning and really enjoyed it. Iím late 30s and our family incomes are very similar, I have a 5 and 3 year old so can identify with the stress of working, juggling family life and getting ill as a result. Youíve done really well and I look forward to hearing how your course and freelancing go.
    Originally posted by museumworker
    Thanks museumworker! Ive subscrived to one of your diaries to read at Christmas. xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 2nd Dec 17, 8:39 AM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    Morning diary!

    What a busy week!! Very glad its the weekend. We have a child free morning as the children have been at grandparents overnight so I'm intending to get as much as I can done so I can focus on them completely once they get home. Husband as taken the dog for a walk and I'm sitting on the sofa having a lovely cut of tea!! I have a lot to say as I've been working stuff out this week.

    Sooooo......the HMRC bill has been paid off!! I would have loved that money in my savings account and it annoys me that we have to go backwards as such but I'm also pleased that I don't have to worry about it anymore It is done.

    I'm also now at the point where we know where we are financially after the move.

    My aims for December are to make sure we start the new year with only £7500 of debt - all on 0%.

    My aims for 2018 are to pay off this debt at £200 a month and not get into anymore debt. If we manage to do this we will end up with £5100 of credit card debt by the end of the year.

    Whilst we are doing this I'm going to build up our savings so we have a nice cushion. We have £1393 left over from the house move. I'm going to transfer £1000 of this into my ISA to make it £1700

    Husband needs to reactivate his ISA so he can transfer £300 in. When he has done this we will have an ISA balance between us of £2340. I might round this up to £2350 as I like rounded up numbers. This will then increase by another £1200 over 2018 as we have £100 a month budgeted towards this so will be £3540. This the start of our 3-6 month emergency fund. £3000 would cover our bills for a month with a little bit of spending money so that is a great start. I'm going to be bold and see if we can save £9000 in 2018.

    I'm going to do this by visualising a pyramid of champagne glasses. (bear with me here). The first one is going to be put in our joint account and will be filled up to the value of £500. This will be our buffer for the month. Like a mini emergency fund. This must always be topped up to £500 on pay day. After a brief detour where we save up £500 for our 2018 family holiday, we will then concentrate on filling another glass up to £500 and then another and so on. Once we have 3 champagne glasses full then I can transfer £500 each into our respective ISAs.

    I will need to find a way to record our progress but this seems like a good way of switching from paying down to saving up which is key if we are going to tackle to debt monster once and for all!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • Nicnak
    • By Nicnak 2nd Dec 17, 9:03 AM
    • 544 Posts
    • 2,689 Thanks
    Nicnak
    That sounds like a fab idea to build up funds.

    How do you feel about finishing work in a few weeks? X
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • crunch_time
    • By crunch_time 2nd Dec 17, 9:15 AM
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    • 3,065 Thanks
    crunch_time
    Also, £1750 of the approx £7500 of debt is my course fees and new laptop for my new venture. I have decided to pay that off separately with a proportion of my income per month. At the moment after tax I’m thinking 50% debt and 50% savings. Roughly I will need to earn approx £300 a month from January in order to get this cleared for the end of the year.

    I can already feel my mindset changing. The £7500 is neither helping or hindering us. It’s not stopping us from moving forward in life like all the debt before.

    Part of me though wants to be debt free as soon as possible after coming so close this year. I’m going to try not to second guess myself and just go for it.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 2nd Dec 17, 9:17 AM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    That sounds like a fab idea to build up funds.

    How do you feel about finishing work in a few weeks? X
    Originally posted by Nicnak
    Like a massive weight will be lifted and I can get on with my life. Very weird. I also worry about the nations children if there are so many teachers out there like me who are struggling. Maybe it doesnít affect them like we think.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • Seasidegal58
    • By Seasidegal58 2nd Dec 17, 5:32 PM
    • 1,173 Posts
    • 6,600 Thanks
    Seasidegal58
    I love the way you are visualising your savings plan! A RL bottle of champagne will be the order of the day once that £7500 goes!
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    My debt free diary - " Paid off the £31,000 - BUT still scrimping!"
    • Nicnak
    • By Nicnak 2nd Dec 17, 7:22 PM
    • 544 Posts
    • 2,689 Thanks
    Nicnak
    Like a massive weight will be lifted and I can get on with my life. Very weird. I also worry about the nations children if there are so many teachers out there like me who are struggling. Maybe it doesnít affect them like we think.

    Crunchy xx
    Originally posted by crunch_time
    Oh, I think it does. I think it massively impacts on them. x
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • crunch_time
    • By crunch_time 3rd Dec 17, 7:53 AM
    • 1,044 Posts
    • 3,065 Thanks
    crunch_time
    Spreadsheets are great for budgeting. I have always used them and tracked spending initially using Microsoft money then intuit quicken (both now defunct I think) and in recent years a spending tracker app on my phone. This helps you to see where your money goes and it can even be held on different devices and updated via Dropbox so your husband could put it on his phone too so up to date.

    We always had a system for budgeting. After all essential outgoings were accounted for we split disposable income three ways. One third was long term saving so overpaying mortgage when rates were high and Avcs into pension and latterly stocks and shares isas for early retirement. One third was medium term savings for holidays, replacement cars, home improvements, moving house etc and we spent one third on entertainment, clothes, personal spends, gifts etc. Always worked for us.
    Originally posted by enthusiasticsaver
    Enthusiastic saver - I just read back the beginning of my diary and noticed this post again. I like the Ďrule of thirdsí and think I might apply that to our budget. Essential spends would include our debt payments (£200) and then once that is paid off I could readjust.

    What did you do for an emergency fund?

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Dec 17, 8:09 AM
    • 4,844 Posts
    • 9,147 Thanks
    enthusiasticsaver
    Enthusiastic saver - I just read back the beginning of my diary and noticed this post again. I like the Ďrule of thirdsí and think I might apply that to our budget. Essential spends would include our debt payments (£200) and then once that is paid off I could readjust.

    What did you do for an emergency fund?

    Crunchy xx
    Originally posted by crunch_time
    At that point we already had an emergency fund which I seem to recall was 2-3 months essential expenditure at the time so once it reached a certain point we no longer paid into it. I like the rule of thirds still but the priorities have changed as time goes on and particularly as DH is retired and me almost retired. Now we no longer do long term savings as mortgage paid off and we are in the drawdown phase of our life. One third of our monthly disposable income is still set aside though for Christmas,insurances, gifts, car expenses and house expenses. One third we split between us as personal/hobby/entertainment spends and our subscriptions to country club/NT and one third is our travelling/holiday money. This may change as we get further into retirement if we find our savings buffer going down too quickly as we need to use that for car replacement, long haul holidays or major DIY or house project.

    I think it would work for you too but your priorities would be different now to when you are debt free and as your children get older.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Dec 17, 8:31 AM
    • 4,844 Posts
    • 9,147 Thanks
    enthusiasticsaver
    I like your system of filling up the champagne glasses and transferring them to the ISAs with a portion set aside for holidays. I think a £9k emergency fund is a great aim especially if you now have a larger mortgage.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • louby40
    • By louby40 3rd Dec 17, 6:21 PM
    • 1,192 Posts
    • 3,263 Thanks
    louby40
    I’ve been teaching for 22 years now and if I could retire tomorrow I would. I love the kids and the people I work with, but the red tape and jumping thorough hoops gets me down.

    I can’t retire for another 12 years but it’s definitely in my sights. Teaching is bloody hard work and very stressful.
    Parent loan PAID IN FULL
    Emergency fund £670/£1000. Christmas savings £50/£600 Car maintenance £100/600
    Kitchen July £12,493 NOV £10,493. 18% paid off
    Barclaycard £142
    Car loan £2696 Mortgage £94,992
    TOTAL DEBT (with mortgage) = £108,323 (without mortgage) = £13,331
    • crunch_time
    • By crunch_time 7th Dec 17, 9:12 PM
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    • 3,065 Thanks
    crunch_time
    Iíve been teaching for 22 years now and if I could retire tomorrow I would. I love the kids and the people I work with, but the red tape and jumping thorough hoops gets me down.

    I canít retire for another 12 years but itís definitely in my sights. Teaching is bloody hard work and very stressful.
    Originally posted by louby40
    It certainly is. I have had a horrible week at work. What I have learned from 8 years in 'the business' is schools can be terribly !!!!!y places which add to the stress immensely. My line manager has been causing all kinds of stress this week by stirring. My replacement came in for a visit this week and I tried my hardest to be positive. I think I succeeded as she is coming back for another!

    xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • crunch_time
    • By crunch_time 7th Dec 17, 9:45 PM
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    • 3,065 Thanks
    crunch_time
    Evening diary

    Gosh its just so busy at the moment! Just another 5 more days to go for work and then that's it. At the moment I just feel excited to leave. I'm beginning to look ahead to January and the massive change in lifestyle we have to undertake, tightening the belts and change in pace but it just doesn't feel real yet.

    So I'm focussing on keeping on top of the finances so we aim to end the year with £7500 or less in debt and some money in the bank.

    I've had a spree on amazon (although I now can't find the voucher dammit - it's probably in a pile of carp) and my Christmas bill so far is up to £326. This is for all of us and my nieces and nephews. I have a few more stocking presents to buy for the children and presents for teachers but then I'm done so it will probably be around £400.

    I started stocking up on food for Christmas today and bought some mince pies, stuffing and cranberry sauce. We need to make a proper plan for food for Christmas. Its only us this year so it should be simple..... and cheap.

    I have also thought a bit more about the 'rule of thirds' for our budgeting next year and have played around with some figures. The left over money split three ways actually looks similar to what we were planning anyway. I played with lowering the spending money part and upping the medium term goals and it looks like a system we could work with.

    I get paid on the 19th December and am expecting something in the region of £1300 which is higher than normal as I have cancelled childcare vouchers. Husband gets paid on the 29th December and he has cancelled childcare vouchers too so we are waiting to see what that does to his pay packet. He also got a bonus last year of a few hundred pounds and he had only been with the company a few months so if the same thing happens this year well that will be a massive.... er ... bonus!! We shall see what happens.

    So lots of waiting to see where we are at before I can draw a line and say this is where we are and next year we are planning to do this.

    Really really must get organised with bills and changing of addresses tomorrow.

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
    • enthusiasticsaver
    • By enthusiasticsaver 7th Dec 17, 10:00 PM
    • 4,844 Posts
    • 9,147 Thanks
    enthusiasticsaver
    We both have a massive change of lifestyle crunch I have three working days left before my retirement as I have leave next week to spend time with visiting relatives. Retirement party on 20 December woohoo!!

    You will probably spend less when not working as you will have time to think about where to get the best bargains. I assume that £7500 is on 0% and the £200 monthly will go to paying that down?

    Well done for keeping the Xmas spend to £400. I have seen some crazy spending figures on this forum recently which make me despair of people who spend thousands of pounds they don't have quite unnecessarily simply due to pressure of what other people think.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • crunch_time
    • By crunch_time 8th Dec 17, 7:09 AM
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    • 3,065 Thanks
    crunch_time
    We certainly will!!

    I’m definitely hoping having more time at home will make me spend less money - particularly on food, fuel and spending money.

    We have bought ds a secondhand bike from bay of e - £55 and dd a pram for her dollies £32. That is their main present and I don’t intend to make up the difference for my dd - she doesn’t know her brothers present cost more. So I’m saving myself money and clutter there. I have also only spent £10 each on my 4 nieces and nephews. I don’t believe they need anymore spent on them. £20 doesn’t show them I care for them anymore. My materialistic sisters would say otherwise though which is sad.

    Husband has cost the most - £46 on a new pair of hardworking wellies for dog walking and £22 on a new umbrella for his trips to London in a suit. Plus some books and odds and ends for his stocking.

    I only have a stocking this year due to my splurgey birthday a few weeks ago - a laptop for my new business which will be paid off with my new business money.

    I want Christmas to be about traditions and having fun - not stuff!!

    Yes the £7500 will be 0% hopefully - I haven’t done anything about this yet so must crack on.i need my finalcourse payment to go out in the 11th to do mine and then my pay day on the 19th to do the husbands as I want to clear it down as much as possible beforehand.

    I also need to get both cars serviced. And yes at £200 a month.

    Lots to do lots to do.

    Happy Friday ya’ll!!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017.
    NEW DEBT: £7500 Now: £7500 Paid off £0 Long term savings £1240
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