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  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 9:56 AM
    • 751Posts
    • 6,135Thanks
    Treadingonplaymobil
    67,031.92 is a frightening number indeed....
    • #1
    • 12th Feb 17, 9:56 AM
    67,031.92 is a frightening number indeed.... 12th Feb 17 at 9:56 AM
    67,031.92. Seriously. 67,031.92. That is a SCARY number. I can't believe our debt has peaked (and it is the peak, I am determined) at this level.

    Our light bulb moment actually happened a few months back, but it's taken since then of wrangling utilities and carefully watching out income/outgoings (using You Need a Budget) to really figure out where we were overspending and how the monthly shortfall of anything from 200-1,000+ was happening.

    We have literally nothing to show for this debt, it's just crept up over the past 8 years or so, and has always been at manageable levels, but back in October we realised we were spending more on credit cards each month than we were paying off.

    We committed that cardinal sin of taking out a consolidation loan, but alongside it we looked really carefully at our spending over the next couple of months, budgeted realistically for what we spend and have (I think) picked off all the easy 'low hanging fruit' of budget cuts and really identified why we were overspending.

    The main reason for the debt is, erm, me. Not that I'm the biggest spender (neither of us are amazing), but because I am self employed with a hugely variable income and basically worked out our budgets on the basis I would always earn my 'best' month's income. Which was, with hindsight, maybe a TINY bit deluded.

    The aim of this diary is to keep us on track with actually reducing our debt every single month, not doing it in a three steps forward, two (or four) steps back sort of way. Having sat down and put our numbers into the whatsthecost site, it appears that we are looking at 7 years and 1 month of repayments to clear the debt (and that's assuming we can get rid of the shortfall showing below). I REALLY want to reduce this term as that just seems bonkers.

    SOA below, with a couple of explanatory notes.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 250 (variable, but this is the minimum I have earned in any month in the last 5 years)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3153.86


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 174 (including overpayment for a period when we messed up during a house move 18 months ago and didn't restart the direct debit for the new property. Will drop by a little under 50 after either March or April, can't remember which)
    Electricity............................. 52 (gas and electricity are one combined DD, I haven't checked the exact split but the total is 104)
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 104 (also including a debt from previous property, but I think this will be included for another 6 months or so. I'm not sure what our actual usage is)
    Telephone (land line)................... 18.5 (includes internet)
    Mobile phone............................ 85 (45 for my contract, which I use for work as well, 40 for DH)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 (included in landline cost)
    Groceries etc. ......................... 520 (Includes 40 for one lot of school lunches. I am REALLY struggling to reduce this, but feel I could and should be able to!)
    Clothing................................ 100 (growing children, plus see notes below re clothes)
    Petrol/diesel........................... 225 (90% DH commuting costs)
    Road tax................................ 16.27
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 70 (this will disappear in April as child 3 gets free 15 hours)
    Other child related expenses............ 81.85 (music/swimming lessons x2, cubs and beavers, National Trust membership as they love visiting them)
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90
    Haircuts................................ 20
    Entertainment........................... 135
    Holiday................................. 75
    Emergency fund.......................... 25
    Total monthly expenses.................. 2707.29



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 210800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173733...(698)......3.14
    Total secured & HP debts...... 173733....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6880.21...156...... .0
    MBNA...........................9614.71...98....... .0
    Parental loan..................20000.....0.........0 (see notes below)
    Tesco loan.....................21000.....377.......10
    Total unsecured debts..........57494.92..631.......-



    Monthly Budget Summary

    Total monthly income.................... 3,153.86
    Expenses (including HP & secured debts). 2,707.29
    Available for debt repayments........... 446.57
    Monthly UNsecured debt repayments....... 631
    Amount short for making debt repayments. -184.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 210,800
    Total HP & Secured debt................. -173,733
    Total Unsecured debt.................... -57,494.92
    Net Assets.............................. -20,427.92


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.


    Regarding the (relatively) high clothes expense, it is a combination of 3 growing children (8, 6 and 3), plus the fact that my job is in the fashion industry, and as a self employed person I need to have the right sort of 'look' in order to get work (think along the lines of a self employed personal shopper - people need to see you looking good in order to book with you).

    The parental loan was for a house deposit. The parent in question has no idea about our debts. She is not desperate for the money back and isn't charging us interest, but has asked us to save 150-200 every month into a savings account and then once we've saved a decent sum to either repay them or 'reborrow' it for work on the house (basically they want us to be able to make repayments if they suddenly need the extra income, but meanwhile are happy for us to benefit from it. I am not saving the money while our debt payments are so high - we are hoping to have paid enough off that if the parent ever needs it that we can reborrow it and pay them back). This isn't great, but realistically I think the best solutions is to treat it as the lowest priority for snowballing - once we have paid back the other debts we will throw the entire 630+ at this debt.

    So, there is a freaking enormous shortfall every month, which is somewhat depressing. Most months it is covered by the fact that I earn more than my 'bare minimum', but it is those months where it isn't covered that the debt creeps up again, and I am a total disaster for going 'oh well, we've spent on the credit card, we might as well keep going' and buying more clothes or something for the house - this is probably a significant proportion of our debt problem.

    We have managed to get rid of the balance on the one credit card we were spending on, so the remaining ones are both on 0% deals (although one expires in September). I have not cut up the remaining credit card, because we don't have an emergency fund in case of eg boiler repairs, but it has not been used for all of a month, and I hope to keep it that way.

    A DMP or similar isn't really on my horizon right now - I feel like we should be able to make the cuts to make our budgets balance, and I am optimistic that as my income goes up (when I can work more as child 3 starts school) that we will be able to make overpayments.

    My plan for now is:
    1) Try to wiggle those budget numbers around enough that we don't have a shortfall any more.
    2) Make a plan for any months where I make extra - do I use it for an emergency fund, as a fund to cover future months' shortfalls, to throw money at the debt to try to reduce minimum payments in case of future 'shortfall' months?
    3) Try to make more money. Not quite sure how this will work as I am largely limited to working around DH's working hours (I work evenings and weekends and the 5hrs childcare per week we are paying for for child 3).

    Now that's all down in black and white I am feeling a combination of relieved (to be clear on the numbers) and immensely stressed (by the semi-regular 180+ shortfall).

    Onwards and downwards (for the debt, not me)!

    edited to add: the original 67,031.92 figure was based on the total figure for the Tesco loan, which included all interest payable over the entire term of the loan. I have updated the debt figure in my signature and in all posts going forward as at 4th June 2017 to reflect that actual current debt balance rather than the balance plus interest over the lifetime of the loan. This has knocked 7,911.62 off the debt figure, but means that each monthly payment will have the interest for that month deducted from it, so it won't affect the DFD if I don't make overpayments.
    Last edited by Treadingonplaymobil; 04-06-2017 at 2:58 PM.
Page 47
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Jun 17, 10:12 AM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    I'm aware of the theory that lots of unused credit is good but (a) I wasn't comfortable with having that much available, given my, ahem, spending history and (b) DH is the one with the credit 'problem' in that all the cards with big balances are in his name, because it's always easier to get a card as an employed person than a self employed, so he has always applied for the new 0%s. I have one 18 direct debit for work that gets paid on my remaining CC every month and then paid off in full, so my personal use of available credit (excluding mortgage) on paper is about 0.6% even with new 3k limit.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Jun 17, 10:15 AM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Hi ToP

    Serial lurker here, I love reading your diary and look for update every morning. You're doing really well, your mindset is shifting even if slightly held back by teaspoons etc!

    Re item 3 on this week's epic list, just thought I'd say that Aldi are doing camping stuff as part of their Special buys promotion sometime in the next week or two. Might be some things you identify as needs that you can get there and they're usually reasonably priced, good quality etc.

    Good luck with it all. X

    Edit - just noticed they have festival-type camping stuff on offer at present. The other camping stuff goes on sale Sunday 18th June. You never know, might be worth a look. X
    Originally posted by stoplurking
    Thanks for the Aldi tip! DH and I were just saying last night that we never time our requirements for things with aldi or Lidl offers.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • reality_check
    • By reality_check 12th Jun 17, 12:28 PM
    • 598 Posts
    • 1,108 Thanks
    reality_check
    Just wondering what was the paint called that you got? Also how much was it per pot? Everything I find for outdoor paint costs an arm and a leg!!
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Jun 17, 2:15 PM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Just wondering what was the paint called that you got? Also how much was it per pot? Everything I find for outdoor paint costs an arm and a leg!!
    Originally posted by reality_check
    We went for Weathercoat from homebase. Since we only needed one 5l tin to do the whole front (tiny house) it was <20 I think. And another tenner on grey Valspar masonry paint (b&q) for the bottom trim and sills. Both went on well, and only needed two coats.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Cherryfudge
    • By Cherryfudge 12th Jun 17, 7:48 PM
    • 494 Posts
    • 1,446 Thanks
    Cherryfudge
    Just wanted to cheer you on, especially re beating the shopping list and closing ccs...and that amazing 22 items off the 'To Do' list! I think you're on a roll!
    30 days in June...
    NSDs 9/12, Exercise 8/12, Housekeeping 108.57/120
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Jun 17, 8:25 PM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Balanced all my budgets today and am feeling very poor. Always depressing. We have slightly overcommitted ourselves on cheap camping weekends over the summer, and actually when you add them up they cease to be quite so cheap! Ho hum. I have a bit of guaranteed work this month which will help, but really I need some more money to come in. I'm going to give myself the rest of this week focused on the house and tidying and decluttering, then I'm going to get really back on the case with work - I know I've been easing off the throttle a little bit with all the front garden work taking up every spare moment.

    to do today:
    1. Ironing (the pile is towering over me on the sofa as I type). Done, and even cleared another pile of ironing created by doing another two laundry loads today. The laundry basket and ironing baskets are both empty
    2. Paint another batch of fence pickets. Done. Have almost done half now.
    3. Chisel out some bricks next to the garden path to see how it looks. Not done
    4. get another couple of laundry loads done. Done. Ironed. Put away. Have I mentioned?
    5. Mend DS2's shorts. Done
    6. Mend DS1's school trousers. Not done, but I did mend a shirt of DH's. Surely I get extra wife points for that.
    7. Pack and post orders for smaller business. done.
    8. Work on newsletter for larger business. Not done. I hate doing these and I'm not sure they generate me much business.
    9. Reply to some work enquiries. done.
    10. Declutter and clean our room (finally have finished downstairs by doing a room a day). Mostly done, have a bit of cupboard cleaning to do.
    11. Do some more knitting on my mum's socks. done. Almost at the toe of the second sock!
    12. Book camping weekend with friends for August. not done, DH needs to phone.
    13. Delete 3k limit cc from the 'wallet' on the computer so I can't be tempted to use it for online shopping at Christmas or similar. Done.

    to do this week:
    1. Make picket fence panels.
    2. Finish digging trench and make gravel channel under fence location.
    3. Go through camping stuff and plan what we need for the summer's camping trips.
    4. Keep focusing on smaller business while main business is quiet - made a couple of sales yesterday, the attention does pay off.
    5. As my mum about the chair and relist it with better description (assuming it doesn't sell by Tue).
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 4:59 AM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Week 18: Day 3

    Well nobody appears to have posted a cool 1m through the door overnight, so I continue to be as poor as I was when I went to bed. Disappointing.

    Really hope I pick up a bit of work with my main business in the next few days, but failing that I'm going to continue to focus my energy on my little business. I'm aware of lots of imminent expenses - camping trips, new walking boots for DH and me, last bits of fence, - and I have no idea how I'm going to pay for them.

    Busy Tuesday again - swimming then Cubs, so have to be organised and make packed dinner and snacks. Also meeting a friend for coffee this morning - am limiting myself to one cup of coffee (and a juice for DC3) and nothing else to keep spend to a minimum. We are meeting early so I will have a big breakfast before we go to reduce temptation.

    to do today:
    1. paint another batch of fence pickets (I'm as bored as you are of seeing this on my list every day)
    2. finish my mum's socks.
    3. Chisel out some bricks next to the garden path to see how it looks.
    4. Declutter and tidy the DCs' room
    5. Mend DS1's school trousers.
    6. social media for work
    7. Book camping weekend with friends for August.
    8. Make pasties for dinner.
    9. Cost out fence spikes and posts and figure out where the money is coming from to pay for them .
    10. Pay balance of holiday booking. We had saved 350 of the 425 due, but I have had to take the remaining 75 from Christmas/birthday/car maintenance budget pots, which are virtually empties for umpteenth time. Won't be able to top them up until end of summer. Argh.

    to do this week:
    1. Make picket fence panels.
    2. Finish digging trench and make gravel channel under fence location.
    3. Go through camping stuff and plan what we need for the summer's camping trips.
    4. Keep focusing on smaller business while main business is quiet - made a couple of sales yesterday, the attention does pay off.
    5. As my mum about the chair and relist it with better description (assuming it doesn't sell by Tue).
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • emmie26
    • By emmie26 13th Jun 17, 7:22 AM
    • 431 Posts
    • 1,371 Thanks
    emmie26
    Just thought I'd pop by and have a little read, I've got to page 5 and now am making myself late for work. You are so organised it's fab, I look forward to reading the rest.

    Total Debt: 24,359.79 23,124
    debt reduced by 5%
    Debt free date: May 2019
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 8:53 AM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Just thought I'd pop by and have a little read, I've got to page 5 and now am making myself late for work. You are so organised it's fab, I look forward to reading the rest.
    Originally posted by emmie26
    Ha, it starts well, goes down a bit, up a bit and generally rambles. It's not all that organised
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 11:44 AM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Holiday musings, complete with minor financial crisis....

    We have always done a fair bit of camping over the summer. I think because it's a budget holiday, it always seems like a good idea, so we've always done a fair bit. So this summer we have done the same as we always do and booked a good handful of camping weekends with friends and family (I've mentioned that here already I think). Anyway, I've just come to actually take a realistic look at all the 'cheap weekends' and added together it comes to at least 250 on campsite fees over the summer, never mind extra money on new camping gear. Well boy, is my face red? Turns out that camping is not actually all that cheap when you do it half a dozen times in quick succession. And this is on top of the already-committed 350 family holiday (paid today, had to snaffle some money from other pots, but had saved the majority), bring our holiday fund to 600+ for this summer, rather than the 350 I had in my YNAB dategory.

    Looking at it objectively, we have 6 weeks to fill with the 3DC, so filling a reasonable chunk of it camping (about 15 nights, plus packing up and unpacking days at each end of each trip) is actually quite effective, as we tend to spend very little money when we're there, but it's still a big chunk of money that we don't actually, currently, well, have.

    It's not that I necessarily think we should/could be spending less over the summer holidays (well, obviously we should), but I think I need to be realistic about how much having the 3DC at home over the school holidays costs/affects our budgets, and plan the savings accordingly.

    This is yet another 'invisible' expense that we weren't budgeting for before - because camping is cheap on a per-night basis, we were/are doing lots and lots of it because we felt like we were being budget conscious. I still think on a cost-per-day basis it's a great activity to fill the holidays, but I need to be aware that it isn't actually a free holiday, and start budgeting as such. Crikey, when am I going to get this budgeting thing sorted?
    Last edited by Treadingonplaymobil; 13-06-2017 at 11:47 AM.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • armchairexpert
    • By armchairexpert 13th Jun 17, 12:33 PM
    • 505 Posts
    • 3,309 Thanks
    armchairexpert
    I am giving myself a year to get the budget perfect for this exact reason! It's all a learning curve. I still don't, and won't, know if my birthday budget is about right until the end of the year, since both my girls have near-Christmas birthdays and I've never previously added up how much I spend on the party plus presents. You're ahead of me if you have a pot for school holidays, I always, always underestimate how much it costs to do even cheapish things when the kids are at home with me and I think I need a separate category for that.

    Anyway. Solidarity! I envy the camping trips, Mr E refuses point blank to contemplate camping and I think my kids would love it, so please enjoy them for me.
    MFW diary here. 1 Feb 2017 $229,371 - MFD Feb 2043 aiming for May 2028
    1 June 2017 $221,986.42
    1 July 2017 $223,199.76 - bit of a backslide: leaving the June total here for inspiration!
    • Silver Queen
    • By Silver Queen 13th Jun 17, 12:52 PM
    • 121 Posts
    • 550 Thanks
    Silver Queen
    On the flipside, think about how many great memories you'll make as a family, and how many important skills your kids are learning thanks to your encouragement to get out into terrain that they may not be used to...
    Debt Totals 01/07/17:
    350 Natwest Credit Card / Now 0 15,500 Loan from Parents / Currently 12,750 2,000 Overdraft Now 1,000
    • Wysiwyg49
    • By Wysiwyg49 13th Jun 17, 1:22 PM
    • 154 Posts
    • 1,285 Thanks
    Wysiwyg49
    I'm into my 4th month of tracking all expenditure and it has really surprised me how much I spend on kids activities (although DD is into horse riding which is far from cheap!)

    The camping fees aren't bad overall, just think how much you would spend on a week in the sun! Last year we got an air b'n'b place and visited friends who live in Europe - sounds like a cheap holiday, but it was still about 1800 plus a lot of eating out money...
    GC July 0/500 June 497.80/400
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jun 17, 1:44 PM
    • 3,659 Posts
    • 6,556 Thanks
    enthusiasticsaver
    I think some holidays you would think are cheap like camping, caravanning, even staycationing end up being more expensive than you think as in bad weather you need to sort out entertainment and often eating away is more expensive than eating at home. School holidays are a killer to any budget so we overbudgeted and any left went to Christmas fund. There is also additional petrol/diesel to find.

    I tended to find the cheapest days out were on the beach or walking or flying kites on the moors but living in Cornwall we did not have to travel far for either. Picnics and drinks were taken rather than eating out although we tended to do the odd fish and chips lunch or pasty. Walking, beachcombing, flying kites, ball games etc etc were cheap ways of passing the time with our kids. I am looking forward to doing that with our granddaughter this summer.

    Our Centre Parcs holiday with the family next week is costing us a small fortune but luckily discovered our cycle rack fits my OHs new car so we can take our own bikes and just hire a child seat for my granddaughter.
    Debt and mortgage free and saving for early retirement
    • warby68
    • By warby68 13th Jun 17, 1:47 PM
    • 766 Posts
    • 8,579 Thanks
    warby68
    ToPM, the simple truth, however you dress it up otherwise, is that you can't afford holidays at the moment. You shouldn't have had the 400 one and you certainly shouldn't have booked any more.

    Its no mystery, your budget does not currently stretch to this due to overspending for years previously yet you still keep spending, hoping for a miracle.

    I fully understand why you are kicking and screaming in resistance to an altered lifestyle especially with 3 little expectant faces but unless you adapt for a few years, you are putting bigger things at stake for much longer.

    At their age, they can have just as much fun camping in your own back garden.

    I am one of your harder commentators but all the 'there there' posts in the world won't help if you end up creating a problem for many years to come because you can't face consequences for a year or two now.

    As ever its your choice, but it certainly isn't some budgetting mystery - you are going on endless circles of rationalisation to make choices which you can't afford and I think you know it really.

    Sorry to be the bringer of doom once more but that light bulb is barely flickering at the moment.

    Seriously, why can't you cut your cloth for just one year and then, like you say, review things against hopefully higher earnings?
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jun 17, 1:50 PM
    • 3,659 Posts
    • 6,556 Thanks
    enthusiasticsaver
    Looking at your soa you have only been allowing 75 a month since February and if 350 is taken up with a family holiday and then you have lots of camping costs on top then it is not surprising that there is not enough as only six months worth of 75. Next year if you get this right the pot for holidays will be that much larger as you will be saving for longer.
    Debt and mortgage free and saving for early retirement
    • emmie26
    • By emmie26 13th Jun 17, 6:06 PM
    • 431 Posts
    • 1,371 Thanks
    emmie26
    I'm panicking a bit because like ES says, we are starting a budget half way through the year so the annual expenses won't actually be paid for, as long as you make cuts somewhere else and are aware then next year your budget should work better.
    When we did our previous debt busting 7 years ago we did a 'cheap' camping trip and we really did do it on the cheap but the children had a fab time and we have lovely memories.

    Total Debt: 24,359.79 23,124
    debt reduced by 5%
    Debt free date: May 2019
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 6:51 PM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    ToPM, the simple truth, however you dress it up otherwise, is that you can't afford holidays at the moment. You shouldn't have had the 400 one and you certainly shouldn't have booked any more.

    Its no mystery, your budget does not currently stretch to this due to overspending for years previously yet you still keep spending, hoping for a miracle.

    I fully understand why you are kicking and screaming in resistance to an altered lifestyle especially with 3 little expectant faces but unless you adapt for a few years, you are putting bigger things at stake for much longer.

    At their age, they can have just as much fun camping in your own back garden.

    I am one of your harder commentators but all the 'there there' posts in the world won't help if you end up creating a problem for many years to come because you can't face consequences for a year or two now.

    As ever its your choice, but it certainly isn't some budgetting mystery - you are going on endless circles of rationalisation to make choices which you can't afford and I think you know it really.

    Sorry to be the bringer of doom once more but that light bulb is barely flickering at the moment.

    Seriously, why can't you cut your cloth for just one year and then, like you say, review things against hopefully higher earnings?
    Originally posted by warby68
    Oh gosh, I'm not pretending there's any mystery to it. I'm in the process of breaking 15 years of mindless spending habits (I've been in debt, one way or another, since the day I started university), and even though in an ideal world I would avoid all these overspending incidents, the truth is that sometimes I need to make the mistake, get my sensible head on, learn the lesson and hopefully avoid making the mistake again ever again. It's not a perfect process (really really not a perfect process), but it's my process and I'm happy with it.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 6:53 PM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    I'm into my 4th month of tracking all expenditure and it has really surprised me how much I spend on kids activities (although DD is into horse riding which is far from cheap!)

    The camping fees aren't bad overall, just think how much you would spend on a week in the sun! Last year we got an air b'n'b place and visited friends who live in Europe - sounds like a cheap holiday, but it was still about 1800 plus a lot of eating out money...
    Originally posted by Wysiwyg49
    Kids' activities/entertainment was definitely one of our biggest spending categories pre-LBM. It's still a huge category for us, but at least the mindless spending on activities they won't necessarily enjoy/benefit from has stopped.

    On the flipside, think about how many great memories you'll make as a family, and how many important skills your kids are learning thanks to your encouragement to get out into terrain that they may not be used to...
    Originally posted by Silver Queen
    We have such great memories of camping since our oldest was a baby, we all really enjoy it, and I hope we continue to make great memories. Just need to learn to budget properly for them in future too, for a double win!

    I am giving myself a year to get the budget perfect for this exact reason! It's all a learning curve. I still don't, and won't, know if my birthday budget is about right until the end of the year, since both my girls have near-Christmas birthdays and I've never previously added up how much I spend on the party plus presents. You're ahead of me if you have a pot for school holidays, I always, always underestimate how much it costs to do even cheapish things when the kids are at home with me and I think I need a separate category for that.

    Anyway. Solidarity! I envy the camping trips, Mr E refuses point blank to contemplate camping and I think my kids would love it, so please enjoy them for me.
    Originally posted by armchairexpert
    Our budget has been adjusted so many times since we started out. It's a long process getting a budget sorted when you've been overspending for a long time.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Jun 17, 6:58 PM
    • 751 Posts
    • 6,135 Thanks
    Treadingonplaymobil
    Looking at your soa you have only been allowing 75 a month since February and if 350 is taken up with a family holiday and then you have lots of camping costs on top then it is not surprising that there is not enough as only six months worth of 75. Next year if you get this right the pot for holidays will be that much larger as you will be saving for longer.
    Originally posted by enthusiasticsaver
    I'd better get it right next year! I'm certainly not nailing it in 2017

    I'm panicking a bit because like ES says, we are starting a budget half way through the year so the annual expenses won't actually be paid for, as long as you make cuts somewhere else and are aware then next year your budget should work better.
    When we did our previous debt busting 7 years ago we did a 'cheap' camping trip and we really did do it on the cheap but the children had a fab time and we have lovely memories.
    Originally posted by emmie26
    I think there's never a perfect time to start a budget, it's just a case of starting and wiggling things around again and again as you keep going to try to make things balance a little better each month.
    67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: 58,608.13/1st Dec 2026
    debt on 6th June 17/DFD: 55,820.43/1st May 2025
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