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  • FIRST POST
    • chelseablue
    • By chelseablue 1st Aug 17, 3:31 PM
    • 2,297Posts
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    chelseablue
    Journey to £0 by 2020, with a few bumps along the way
    • #1
    • 1st Aug 17, 3:31 PM
    Journey to £0 by 2020, with a few bumps along the way 1st Aug 17 at 3:31 PM
    Hi everyone!

    Just been reading some diaries on here and thought I need to add my own. Hopefully I will get some encouragement or just stop myself going insane

    A bit about me; I'm 34 and live in Berkshire with my partner and our 3 year old son.

    We are getting married next year so am saving towards that, plus we have a lease car that goes back in April so need to get another car. So am saving for that.

    Oh and we are going on holiday next December to Australia so need to save for that too!

    2018 is looking to be expensive

    Onto the reason I'm here: DEBT

    We owe the following:

    Lloyds credit card: £3,219
    Sainsbury's credit card £1,392

    Oh and a mortgage of £221,000 (!)

    The credit cards are 0% until 2020 so everything I send to those comes off the total.

    Currently the DD to Sainsbury's is £40, which will clear it by 2020 so I just leave that for now.
    The DD to Lloyds is also £40 so I need to concentrate my efforts here otherwise the balance will still be about £2,000 when the 0% ends.
    Determined not to have to transfer it on to another 0% deal!

    We earn £63,000 between us so am sure we can do it.

    Hopefully I've just paid the last £850 a month childcare invoice as our son is 3 now so is eligible for the Government funded hours from September.

    Will post our SOA shortly

    If you've read this far well done and thank you!!
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
Page 3
    • chelseablue
    • By chelseablue 19th Sep 17, 3:07 PM
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    chelseablue
    Well done on increasing direct debit to Lloyds. These cards are so much easier to clear if the monthly payment is calculated to clear within the interest free deal and no further spending is done on them. You can then just leave them to run knowing no interest will be paid.

    I would say on the buildings insurance even though you have paid in full this year if you put money aside for it monthly it will be waiting there ready to pay next years bill when it falls due. We have a separate account for annual expenses like holidays, presents,xmas, insurances, car maintenance, boiler services etc etc. I guess when your savings pot reaches £11600 for your wedding and the bonuses are for the car then all your savings next year are for Australia?

    I do not think you should cash in your s and s isa. You have no real debt apart from the mortgage and long term savings are important (the only reason I and my husband retired early at 58 is because we made pensions and long term savings a priority even in our 20s and 30s).

    Overall though I am impressed at the way you have arranged your finances in spite of high cost child care and living in the south east. Yes you could say £63k is a high income but I know of people who earn more and have much more debt than you. Well done for not succumbing to borrowing for these large expenses you have.
    Originally posted by enthusiasticsaver
    Thank you so much

    Yes I'm glad I increased the direct debit, at least now I know that they will both be clear before the 0% ends.
    Cards were cut up as soon as they arrived so cant be spent on.
    I have a Barclaycard that I use and pay in full when I do.

    When the wedding is all saved for, its onto the car next and then Australia. I'm exhausted just thinking about it all!

    When 2018 is 'out of the way' then the next focus will be overpaying the mortgage and doing up the house.

    Big things our house needs is a new driveway, bathroom and fence and patio in the back garden, the rest is just redecoration
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • enthusiasticsaver
    • By enthusiasticsaver 19th Sep 17, 7:17 PM
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    enthusiasticsaver
    Thank you so much

    Yes I'm glad I increased the direct debit, at least now I know that they will both be clear before the 0% ends.
    Cards were cut up as soon as they arrived so cant be spent on.
    I have a Barclaycard that I use and pay in full when I do.

    When the wedding is all saved for, its onto the car next and then Australia. I'm exhausted just thinking about it all!

    When 2018 is 'out of the way' then the next focus will be overpaying the mortgage and doing up the house.

    Big things our house needs is a new driveway, bathroom and fence and patio in the back garden, the rest is just redecoration
    Originally posted by chelseablue
    You can see though in spite of all of these things being expensive (wedding, car and long haul holiday) you are able to save for them only because very little of your disposable income is needed to repay unsecured debt. If you had numerous loans for things you had bought or even for one of the three things you are spending out for next year saving for things you want would take so much longer. You are also in a much better position should one of you lose your job or you have a maternity leave to cover or a new roof to pay for.

    Saving for things you want rather than borrowing is the key to a secure financial future.
    3 days 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 19th Sep 17, 7:23 PM
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    enthusiasticsaver
    Re Australia are you doing a package or organising it yourselves? We did a month in Australia/Asia in the late nineties when our daughters were in primary school. We did it over March/April and did the east coast of Australia, Queensland and Great Barrier Reef, Sydney and Blue mountains and Melbourne. We did Singapore stop off on the way out and Bali on the way back. It was a fantastic experience and luckily our daughters were fantastic travellers. What made you decide to do it now?
    3 days 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
    • chelseablue
    • By chelseablue 20th Sep 17, 7:50 AM
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    chelseablue
    For Australia we are organising ourselves, partner has family near Sydney so we are going to stay with them for a few days and then do a bit of travelling, staying in hotels then go back and stay with them.

    Not sure whether to go for 3 or 4 weeks, our son is coming with us so I don't want him to miss too much school.
    Although we are going in December so 2 weeks of it will be school Christmas holidays.

    He will be 4 so in Reception year, not sure how much work they actually do in Reception class
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 21st Sep 17, 8:57 AM
    • 2,297 Posts
    • 2,823 Thanks
    chelseablue
    Direct debit to Lloyds came out today and I was surprised to see it only being for the previous amount of £40, not the £110 I increased it to.

    Rang them this morning and they said its because I made the change after a certain point in the statement cycle, but that it will be £110 from the next payment.

    Oh well
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • Savertobe
    • By Savertobe 21st Sep 17, 9:19 AM
    • 27 Posts
    • 176 Thanks
    Savertobe
    You can always make an additional payment as you intended! No time like the present to put new plans into practice.

    Good luck
    • enthusiasticsaver
    • By enthusiasticsaver 21st Sep 17, 1:22 PM
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    enthusiasticsaver
    For Australia we are organising ourselves, partner has family near Sydney so we are going to stay with them for a few days and then do a bit of travelling, staying in hotels then go back and stay with them.

    Not sure whether to go for 3 or 4 weeks, our son is coming with us so I don't want him to miss too much school.
    Although we are going in December so 2 weeks of it will be school Christmas holidays.

    He will be 4 so in Reception year, not sure how much work they actually do in Reception class
    Originally posted by chelseablue
    I think it is much harder now taking them out of school but as he is in reception I am not sure if they make as much fuss about him having to miss school due to a holiday. When we went the schools were more relaxed about term time holidays but I went in and saw the Head and asked for the curriculum my daughters would miss due to our "holiday of a lifetime" and arranged for a tutor to tutor them before we went and after we came back. I also made them do a daily travelling diary about the things they had seen and done from snorkelling in the Barrier Reef to panning for gold along the Melbourne coast. They were a bit older than your son though.

    Sydney is lovely so I am sure you will have a great time. The Blue Mountains are well worth seeing too. We rented a house in Batemans Bay on the coast between Sydney and Melbourne and drove down the coast road. Magnificent.
    3 days 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 21st Sep 17, 1:26 PM
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    enthusiasticsaver
    Direct debit to Lloyds came out today and I was surprised to see it only being for the previous amount of £40, not the £110 I increased it to.

    Rang them this morning and they said its because I made the change after a certain point in the statement cycle, but that it will be £110 from the next payment.

    Oh well
    Originally posted by chelseablue
    You can make an additional payment but not sure if they take that off the next due payment - ie if you pay £70 will they take that off next months £110? Very confusing the way these banks take the direct debit payments and how making mid month payments tend to confuse them. I would stick it in your savings account.
    3 days 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
    • chelseablue
    • By chelseablue 22nd Sep 17, 11:50 AM
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    chelseablue
    Yes confusing! Will leave it for now as I don't want to decrease the DD, I'll just look forward to the £110 coming off the balance next time.

    I've been doing tilly tidies this month into an account I don't use, balance in there today was £15.78 so I've paid that off the Sainsbury's card.

    New balances are:

    Lloyds: £3,142
    Sainsbury's: £1,297

    I mentioned before about this being our best month for ages, our 'month' starts this Monday when partner gets paid and there is still £1,450 in the bank.

    Going to transfer £1,300 to savings today and leave £150 in the bank for fuel and food. Shouldn't need to buy much I'll just get enough to last until Monday.

    Have a good weekend all x
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 28th Sep 17, 4:28 PM
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    chelseablue
    Been a quiet week so far, no major spends which is good!

    Its our nephews birthday tomorrow so went into town during my lunch break to get him a present. Found a Disney art set reduced from £10 down to £5, so snapped that up!

    I sound like a right tight wad but he's only going to be 3 tomorrow, they seem to be happy with anything at that age

    Tuesday was our 5 year anniversary so going out Saturday night for a meal, its quite a nice restaurant so I'm expecting about a £60 spend at least.

    Then next Saturday we're going to a friends wedding, it's quite local but with drinks and taxi's I'm expecting to spend about £100 (we're invited for the whole day)

    Think I need to hibernate for the next 6 months and not spend anything!
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 3rd Oct 17, 9:32 AM
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    chelseablue
    Meal out on Saturday was very nice but.........£97 paid on my debit card though not credit card.

    £40 direct debit to the Sainsbury's card went out today, brings the balance down to £1,257

    Current Totals:

    DEBT
    Lloyds: £3,142
    Sainsbury's: £1,257

    SAVINGS
    Wedding + Car: £10,260
    S&S ISA: £5,158
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 9th Oct 17, 11:34 AM
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    chelseablue
    Friends wedding was good, withdrew £100 to take as spending money and have £30 left so that's a bonus.
    Petrol light came on today so going to put £20 of it in my car.

    Good news this week is that partners 24 month contract with EE is now up. Hurrah!!!
    2 years ago he signed up for a stupid £65 a month contract, now that's over we're dropping it down to SIM only that will cost £21 a month for the same package he has now.

    My mobile costs £9 a month so our total mobile costs will be £30 a month instead of £74!

    Note to self: don't let partner go into shops alone!

    Mortgage fixed rate is up in March so started to look around at new deals, hopefully getting a 5 year fixed rate this time.
    Cant really apply until around February time so hoping the rates I've found aren't too different by then

    One more direct debit to leave the account on 15th October, £36 to BT then that's it until payday on the 25th.

    Money in current account today: £1,789 but going food shopping later

    Have a lovely day all x
    Last edited by chelseablue; 09-10-2017 at 12:19 PM.
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 18th Oct 17, 9:02 AM
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    chelseablue
    A bit of good news this week (well I think its good)

    I started a new job in January and at the time the bonus scheme was still being discussed.

    My boss told me this week that my bonus will be a maximum of 12% of my salary.

    If I get the 12% that will mean £4,200!

    Unfortunately have to pay tax and NI on it so not sure what the actual take home will be.

    Not sure what I'll do with it yet. If its not needed for the wedding savings I could:

    Clear the Sainsbury's card and pay a big chunk off the Lloyds card

    Clear the Lloyds card

    Buy the flights to Australia

    Pay off half the car finance

    Do a mortgage overpayment

    Nice dilemma to have I guess

    Last week we saw the Registrar to do the Notice of Marriage thingy and tomorrow night we're going to our venue for menu tasting so really looking forward to that!

    Have a great day all x
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • Happierdays
    • By Happierdays 18th Oct 17, 9:30 AM
    • 147 Posts
    • 461 Thanks
    Happierdays
    Just popping in to say hi! That all sounds good- you are doing great!
    • chelseablue
    • By chelseablue 18th Oct 17, 11:00 AM
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    chelseablue
    Hi! And thank you.

    My bonus gets paid in March and partner gets his in February, his is a bit less at £1,500 but I'm sure I'll put it to good use haha
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • little_miss_spendtoomuch
    • By little_miss_spendtoomuch 18th Oct 17, 5:24 PM
    • 232 Posts
    • 465 Thanks
    little_miss_spendtoomuch
    I can totally relate to the costs of living in south east! I started to clear debt whilst saving for a wedding too. I actually found it easier when I said no to social events I could use 'saving for my wedding' as an excuse rather than the fact I was paying off debt.
    May 2015: £11685.56 / November 2017: £2076
    Credit card: £302
    Paid back : £700 / £2476
    • enthusiasticsaver
    • By enthusiasticsaver 18th Oct 17, 6:59 PM
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    enthusiasticsaver
    I think if you are confident you can clear the credit cards before the 0% deals finish then you should pay towards the car finance. That is bound to cost more.
    3 days 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
    • chelseablue
    • By chelseablue 19th Oct 17, 3:06 PM
    • 2,297 Posts
    • 2,823 Thanks
    chelseablue
    I think if you are confident you can clear the credit cards before the 0% deals finish then you should pay towards the car finance. That is bound to cost more.
    Originally posted by enthusiasticsaver
    Now that's something I didn't think of! Of course the best thing to do is pay it off the car.

    For the cards the direct debits are set up for an amount that will have them clear before the 0% end
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • enthusiasticsaver
    • By enthusiasticsaver 19th Oct 17, 3:43 PM
    • 4,865 Posts
    • 9,189 Thanks
    enthusiasticsaver
    Now that's something I didn't think of! Of course the best thing to do is pay it off the car.

    For the cards the direct debits are set up for an amount that will have them clear before the 0% end
    Originally posted by chelseablue
    Then definitely sort the car out and maybe put some in your holiday fund for Australia/home improvements.
    3 days 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
    • chelseablue
    • By chelseablue 24th Oct 17, 2:56 PM
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    chelseablue
    Its 'month end' today as partner gets paid tomorrow.

    There was £1,300 left so I've moved £1,000 to savings and had to send £300 to Barclaycard (this is the only card I use and mostly I clear it in full each month)

    I think going forward I might do that every month, send at least £1,000 to savings and whatever is left in the bank over £1k, send it to the debt, that way its getting cleared quicker.

    DEBT
    Lloyds: £3,142
    Sainsbury's: £1,257

    SAVINGS
    Wedding + Car: £10,650
    S&S ISA: £5,293
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
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