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  • FIRST POST
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 4:30 PM
    • 74Posts
    • 148Thanks
    DrSpendLittle
    Reducing Debt - being accountable and taking responsibility
    • #1
    • 22nd Aug 17, 4:30 PM
    Reducing Debt - being accountable and taking responsibility 22nd Aug 17 at 4:30 PM
    Hi everyone!

    DFW newbie here! Been a lurker for a while but have been so inspired by reading others' DFW diaries - it's literally all I've done this weekend! - that I decided to take the plunge and join in the fun. Now's the time. Had my LBM a few weeks ago and can't wait to get started

    So, a little about me before I state my financial situation and my goals:
    - a happy, healthy and engaged homeowner
    - settled in my career with a fairly well paid job & annual increment
    - looking at starting a family soon as time is ticking!
    - enjoys sports and the outdoors and a healthy approach to life
    - has just started using YNAB
    - has a 'secret' unsecured debt of just over £10k (2 x cc's)

    About DF
    DF is debt free but doesn't actively save. He seems to spend what he earns which isn't great since we have a tiny mortgage and lowish bills. He had family money passed on to him a few years ago on the advice of his mother's accountants - she would NEVER give it away otherwise but that's a whole other story I'm sure we'll get into those MIL from h£ll stories in the coming months . This dosh acts as a financial cushion for him .....and, admittedly, me gosh, it really has meant I've been a wee bit lacking in the old saving malarkey Time to banish this false sense of security!

    About DF and I's financials
    DF and I don't have a joint account. All bills / mortgage come out of his current account except car insurance and broadband/phone which I'm responsible for paying. I give him £465 every month towards bills (includes a deduction for car insurance) and he gives me half of whatever the broadband phone bill is. This arrangement is, on reflection, part of my problem as I have too much 'distance' from the reality of bill payments and direct debits etc etc etc I'm sure you all know the score....

    DF knows I have some debts but isn't really aware of the current status of my 'net worth' He's one of life's worriers so I am taking this DFW journey alone for now. I'm completely settled and happy with this idea and I have been managing it all on my own thus far, so no need to change. I got myself into this situation so I'll be getting myself out of it.

    Why the DFW diary?
    Well, we're thinking of moving home since we could take a few leaps up the ladder. Its time for our dream home. This has caused my LBM. I want my dream home and the only thing stopping me is my poor money management skills! Its also time to move. We've been here a while and have never fully settled.

    My interim goal?
    To clear £4K of debt by January so when we put the house on the market, my debt levels are lower. I obviously also want to make sure we can maximise our borrowing, so I want to demonstrate good money management skills and a good pattern of spending and saving.

    My overall aim
    But, more than this interim goal, I just want to be in control of my money and no longer feel guilty for spending it. I want to save up for things and have that lovely 'I deserve this because I saved for it' feeling when I buy something. I want to be responsible. And, I am here to become accountable.

    My plan of action!
    So....this diary is my way of sharing my story, being accountable for my actions, taking responsibility and doing all this whilst my other half is oblivious!

    I hope you join me on my journey and I look forward to joining you on yours.

    My current financials
    I'll post my current financial situation later today - got some work things to get done before close of play. Its been one of those 'working at home' days which have largely comprised of obsessing over YNAB and lurking on DFW diaries, oh deary me A hint of my procrastinating / self sabotaging ways......

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:08 PM. Reason: I'm a formatting perfectionist :)
Page 4
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 3rd Sep 17, 4:43 PM
    • 317 Posts
    • 1,268 Thanks
    wishingthemortgaheaway
    Booo to overrated fees, yay to resisting Tupperware- I love the stuff.

    Just a note re:the bread bag, make sure your bread is completely cold and, no moisture on it before you put it in the bag, otherwise it doesn't last long and the bag is ruined (yup! Been there, done that!)
    The 100 payment countdown (each payment = £400)
    2017
    July : £36,800 8/100
    August: £36,411.85 8/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • DrSpendLittle
    • By DrSpendLittle 3rd Sep 17, 11:25 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Booo to overrated fees, yay to resisting Tupperware- I love the stuff.

    Just a note re:the bread bag, make sure your bread is completely cold and, no moisture on it before you put it in the bag, otherwise it doesn't last long and the bag is ruined (yup! Been there, done that!)
    Originally posted by wishingthemortgaheaway
    Thanks for the bread bag advice - will make sure to do that!

    We're currently over run with Tupperware (...why does autocorrect capitalise Tupperware, how odd...) as I defrosted the freezer over the weekend. Gawd, I'm going to have to batch cook and freeze some meals just to clear space
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 4th Sep 17, 8:10 AM
    • 317 Posts
    • 1,268 Thanks
    wishingthemortgaheaway
    Thanks for the bread bag advice - will make sure to do that!

    We're currently over run with Tupperware (...why does autocorrect capitalise Tupperware, how odd...) as I defrosted the freezer over the weekend. Gawd, I'm going to have to batch cook and freeze some meals just to clear space
    Originally posted by DrSpendLittle

    I wonder if actual Tupperware is still a thing in the USA ( where the autocorrect dictionary comes from)
    Wonder what happened to them here, my mum used to love a good Tupperware party.
    The 100 payment countdown (each payment = £400)
    2017
    July : £36,800 8/100
    August: £36,411.85 8/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • redofromstart
    • By redofromstart 4th Sep 17, 8:18 AM
    • 323 Posts
    • 1,410 Thanks
    redofromstart
    I was surprised at how long it took to stop getting charged for OD too.

    If you have good sick pay and life assurance through work then you may be ok, as long as you have a decent emergency fund. My experience is that they find a reason to not pay out so I have always preferred to save to cover.
    • enthusiasticsaver
    • By enthusiasticsaver 4th Sep 17, 8:25 AM
    • 4,268 Posts
    • 7,727 Thanks
    enthusiasticsaver
    Well done on a great start to budgeting.

    Re insurance, I am not a fan and we always self insured as there are often so many exclusions. Both me and DH had good sick pay and life cover from work. When we had children we took out mortgage life cover and we never bothered with income protection but saved in a savings account instead which we never touched. We stopped paying in when the mortgage was repaid but there was a nice tidy sum to bolster our early retirement fund and kids university fund.
    Countdown to early retirement on 21.12.17 3 months to go.
    • DrSpendLittle
    • By DrSpendLittle 4th Sep 17, 1:03 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Well done on a great start to budgeting.

    Re insurance, I am not a fan and we always self insured as there are often so many exclusions. Both me and DH had good sick pay and life cover from work. When we had children we took out mortgage life cover and we never bothered with income protection but saved in a savings account instead which we never touched. We stopped paying in when the mortgage was repaid but there was a nice tidy sum to bolster our early retirement fund and kids university fund.
    Originally posted by enthusiasticsaver
    Thanks - this is a really good idea. I may follow suit! Wait for kids and get mortgage life cover and then save save save. DF has insurances but we may change all that when we move.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 4th Sep 17, 1:05 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    lol! I wonder if there are sistema parties! Will investigate. Or sistema addiction support groups. One will lead to the other with me for sure!
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 4th Sep 17, 1:17 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    This Week's Wonderings
    Working at home today so hoping for a NSD. Got homemade soup and bread ready for lunch. Need to send DF out of the butchers for some meat for dinner as he is on cooking duty and we don't have anything in the house.

    I spent some time over the weekend thinking about the future - pensions, retirement, mortgage time frames etc etc. I think I've been watching too many Dave Ramsey zoutube clips as he's scared the living daylights out of me re: financial future proofing!

    I'm looking into increasing my voluntary contributions to my pension (1% matched) asap, probably in January when I've made a dent in the CC debt and saved a decent EF. The 1% is not much more a month in payment terms but it will lead to a nice little nest egg by the time I retire.

    I'm also thinking of adding in more than the 1% once my student loan is paid off (yay!!). I'll have to take some financial advice when I get round to this.

    Its interesting how MSEing and focused debt repayment does to you, even after a short time. I'm really beginning to get my head screwed on in regards to saving for the future. I want to retire early so I need to figure out how this will be financially possible. Lots to looking into and plan for. Feels so good to now be in control of my finances and begin to develop short, medium and long term goals as a result.

    Have a good MSE week!

    DSL

    p.s how have I not noticed that there are more emojs?!?!? :questio n:
    Last edited by DrSpendLittle; 11-09-2017 at 5:33 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 4th Sep 17, 1:31 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Car Payment & September Debt Repayment Total
    My car payment went out today, so I've updated my signature to reflect this and I can now produce a statement of total debt repayments for September:

    September Total Debt Repayments inc. Car Loan: £ 1,121.24

    This is made up of the following:
    CC Debt Repayments: £963.33
    'Real' CC Debt Repayments (minus the £100 for kitchen item purchase): £863.33
    Car Payment: £157.91

    So, actually, the real September Total Debt Repayments inc. Car Loan stands at £1021.24

    Now, I just need to stick to my budget for the rest of the month! That is the real challenge!!

    DSL
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • Kittychick
    • By Kittychick 5th Sep 17, 10:13 AM
    • 154 Posts
    • 383 Thanks
    Kittychick
    Hi, really enjoyed reading your diary, I think you have a similar occupation to my husband with his three degrees and bring paid on last working day of the month-I seriously couldn't believe when we got together he had no idea what day he got paid "it goes in different days each time... But it always goes in" (until the time a few months ago it didn't-for anyone!)
    Anyway, I'm up for a Sistema party-love that stuff but have only managed 3 soup mugs and 2 noodle bowls, I've had good prices from Asda and Wilkinsons, TK's have them but always been dearer for me!
    Being mega nosey.... Was the item a breadmaker? T me to sod off if you like though lol
    • DrSpendLittle
    • By DrSpendLittle 5th Sep 17, 12:34 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Hi, really enjoyed reading your diary, I think you have a similar occupation to my husband with his three degrees and bring paid on last working day of the month-I seriously couldn't believe when we got together he had no idea what day he got paid "it goes in different days each time... But it always goes in" (until the time a few months ago it didn't-for anyone!)
    Anyway, I'm up for a Sistema party-love that stuff but have only managed 3 soup mugs and 2 noodle bowls, I've had good prices from Asda and Wilkinsons, TK's have them but always been dearer for me!
    Being mega nosey.... Was the item a breadmaker? T me to sod off if you like though lol
    Originally posted by Kittychick
    Hi Kitty Chick, thanks for dropping buy! The kitchen item was a mixer - we've been after one for a wee while now and decided to take the plunge since we were starting to make more homemade bread!

    I think most of my Sistema was bought half price in either Sainsbos, TK M4xx or W4itrose. I seriously need to make a tonne of soup so I can put it all back in the freezer as since I defrosted it over the weekend, we have a Sistema outbreak!

    Look forward to catching up on your diary soon!

    DSL
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 5th Sep 17, 12:54 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Tuesday Ramblings
    I forgot to mention over the weekend that I had a bit of a ynab disaster at the start of the month. Basically, I had a small amount of left over money in a few ynab categories from August - food and misc. expenses - and I somehow managed to double count the money in my September budget. I only realised when I did a rough tot up of available money and my actual bank balance that I discovered I was short by that exact same amount, approx. £22. I'm really glad I noticed it sooner rather than later, otherwise it may have caused me to become overdrawn. Will have to figure out how I went wrong and sort it for next month. I think I swept up the accounts on 1st September, rather that 31st August, by which time my September budget had been calculated to include the leftover category spending. Or something like that! Doh.

    Anyway, the good news is that I think I can get a new laptop through work!! Yay!. This is going to be so helpful for me in terms of saving me some dosh and ensuring I can continue to work at home (thus saving fuel and car parking costs). But, the even better thing is it will satiate any spending fever I may have over the next month or so. Bonus.

    Having another NSD today - homemade soup and bread for lunch and leftover chicken curry for dinner. Need to post an eb4y item that sold last night but I don't count that as spending as it nets down to income overall. The £9 will pay for my unanticipated July overdraft fees, so I've replenished my misc. expenses category in ynab. Phew.

    Only one more direct debit to leave my account (broadband) and then the new dual fuel direct debit. Hopefully we'll get a rebate from our existing providers.

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:34 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 6th Sep 17, 6:49 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Wednesday Wonderings
    Today has been another working at home day and I've also had another NSD. Made some soup last night which will do for lunch for the rest of the week.

    Today I decided to add a 1% voluntary contribution (matched by my employer) to my pension, meaning I now put away 9%. It's not much more ££s a month and I can use my August salary adjustment to cover it without reducing my net salary. I had earmarked that extra money for my emergency budget but decided against that. I want to retire earlier than 67 so I'm playing the long game.

    I feel like my new spending habits are bedding in now. I'm super focused on paying off my debt before 1st July 2018 and then thinking about saving for the future and my retirement. I'm also really enjoying budgeting with ynab - I'm very much a visual person who likes organisation and systems, so the whole process appeals to me and I'm finding it positive rather than problematic. That, along with my love of a challenge, means I feel super positive. There will be bumps in the road for sure, and I'm realistic to the fact that life will get in the way, sooner or later. But so far, so good.

    Been watching more Dave Ramsey videos in zoutube over the past few days. I find them really motivating and helpful in keeping me focused on the end goal.

    I've got a couple of work visits this month to deal with - I will need to use my CC to pay for one train journey which is super frustrating since I think the expenses from the organisation I'm visiting won't be processed in time to avoid interest. It's going to be about £180 in total, which is no small amount. But, can't do anything about that so just have to deal with it. The other trip can be paid for in advance by my work, which is helpful.

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:36 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 7th Sep 17, 11:54 AM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Work Expenses... grrrr.....
    Just had to book a travel ticket for a forthcoming work visit - £90 on CC1. Hopefully I'll get the reimbursement next month. The £90 will be paid off by the over payment I will be making on 1st Oct so no interest payable. Still, my ynab category for work expenses is now orange and will stay that way for at least 6 weeks I reckon. Big sigh. And the CC balance is now back over £1K. Double sigh.

    Anyone else have any better suggestions for budgeting reimbursements and work expenses that can't be paid for in advance by work?
    Last edited by DrSpendLittle; 11-09-2017 at 5:37 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 7th Sep 17, 12:55 PM
    • 317 Posts
    • 1,268 Thanks
    wishingthemortgaheaway
    i used to have a separate account for work expenses. I opened it with £100 and had to spend out of it first, when work reimbursed me I gave them the details of that account so it was paid straight into the expenses account, or paid cheques straight in there.
    I had a debit card so could book train tickets, pay for fuel etc.

    Because I did a lot of miles (so it would work for you) I was able to build up a positive balance in the account and could eventually withdraw the original start up money.
    I appreciate this won't work if you are only getting back what you pay out - with miles you do get a bit towards wear and tear of the vehicle, so that really helps.
    The 100 payment countdown (each payment = £400)
    2017
    July : £36,800 8/100
    August: £36,411.85 8/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • DrSpendLittle
    • By DrSpendLittle 7th Sep 17, 2:55 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    i used to have a separate account for work expenses. I opened it with £100 and had to spend out of it first, when work reimbursed me I gave them the details of that account so it was paid straight into the expenses account, or paid cheques straight in there.
    I had a debit card so could book train tickets, pay for fuel etc.

    Because I did a lot of miles (so it would work for you) I was able to build up a positive balance in the account and could eventually withdraw the original start up money.
    I appreciate this won't work if you are only getting back what you pay out - with miles you do get a bit towards wear and tear of the vehicle, so that really helps.
    Originally posted by wishingthemortgaheaway
    Oooh, that sounds a really good idea - furnishing a separate account with, say £100, and then using it for work expenses and replinisng it as and when they are reimbursed. I guess it needs an initial outlay but it does help isolate work expense within my ynab categories. Good idea! For me in general, its only likely to be the odd coffee, odd lunch, odd tube journey etc etc. The bigger expenses (hotels and train journeys) I can normally get work to pay for in advance.

    Will try to start this off in October. Thanks!
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 8th Sep 17, 4:27 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Broadband & Home Phone WIN!
    Called up my broadband supplier today to speak about switching our home phone/broadband plan. We have rubbish download speeds and expensive calls and I was considering leaving and going to a new supplier. We currently have irregular monthly bills that hover around the £45 mark (I know, expensive!!) and with me working at home more this year, I need a cheaper solution.

    They were really helpful and gave me a really good retention deal - fibre broadband (10x faster download speed) with unlimited anytime calls, unlimited international landline anytime calls, 1500 anytime mobile calls and a free router / connection charge for fibre broadband all for £32 per month.

    No need to enter a new contract (thus no credit check) and as an extra bonus I get a 5gb data boost per month on my mobile contract (same supplier). Not bad for a days work.

    Only slight problem is I will need to stay on a pay monthly contract with EE when my phone contract expires in December to keep the monthly 5gb data boost. My plan was to go pay as you go as my phone is working fine but PAYG isn't eligible for the 5gb data boost. The SIM only contract however is - the cheapest is £10 per month. But, I'm not sure if they will do a new credit check or not? I'm trying to avoid any new credit checks for mortgage AIP in the new year.

    Had a NSD so far but need to do a small food shop for dinner.

    Yesterday, I bought a cheap laptop sleeve for my new laptop from eb4y - £4.99 plus a smaller accessories pouch for £1.99. Its a cheap solution and avoids spending £££s on branded cases.

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:38 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 11th Sep 17, 12:28 PM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    Weekend Wonderings
    Not much to report on from the past few days. Had a quiet weekend doing odd jobs about the house and catching up on a few things. Had a NSD yesterday (Sunday). Saturday was a food shop.

    Had a roast last night for dinner so the leftovers should do for dinner over the next couple of days, which Is pleasing. Need to make a soup at some point this week.

    In the office this week but fuel already in the car, so hopefully I can stick to my fuel budget for this month. It might be tight. Will take in lunches.

    Hoping for a few NSDs this week - today being one of them.

    Its approaching the middle of the month and in terms of spending, I'm feeling okay and in control. My budget is tight and I do have urges to spend now and again, but I think that's more habit that anything else. However, I do have a bit of an odd feeling at the moment - almost like there is a void that has been left by not frittering. Maybe its just part of the adjustment process.

    No luck on my 4 eb4y items - this is the third round of selling them I've gone through but I'm not willing to drop the prices so will just keep them going - I'm in no rush for the cash, unlike last month!

    The only overspend I've had this month is the work train fare, which is annoying, but it's been good in alerting me to the fact I need a category in ynab for work expenses - I've decided on a starting float next month of £100. This will also act as a nice account buffer for those months when I don't use it.

    I also think it would be wise to have a misc. household category in my budget. I haven't accounted for any small but unexpected spends, for example washers for taps, filters for the hob extractor etc etc. Might start that off next month too.

    My personal misc. category is looking a bit sorry for itself as I had to spend £8 on overdraft fees and £3 on moisturiser (it wasn't available to buy on points in Bo0ts but was half price in Sup3rdrug).

    Hoping that my work fee will get paid this month as I need to top up a few birthday budgets for the coming months.

    Hope everyone has a good MSE week!

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:39 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • DrSpendLittle
    • By DrSpendLittle 12th Sep 17, 11:41 AM
    • 74 Posts
    • 148 Thanks
    DrSpendLittle
    £1000 Emergency Fund
    Finally sold a dress on eb4y last night! Its been on there for nearly 1 month but I was stubbornly refusing to reduce the price. I won! A nice little £13 income after fees. It's gone straight into my emergency fund, which I have to say is looking a bit sorry for itself after my ynab end of month calculation error and then having to borrow from it to pay new elec/gas supplier direct debit. Still, its back up to £84.21.

    Dave Ramsey says we should build a $1000 emergency fund as the first step of becoming debt free, followed by the second step which is the debt repayment snowball. I've taken a leap over step 1 and gone straight into step 2 because I want to pay off my debt asap. My calculations tell me it will take 11 months to shift £10k, so my debt free date is July 1st 2018.

    But, I do feel a bit naughty doing it this way. I understand the logic behind building an emergency fund but I don't want to lose a month from my repayment goal.

    I have a pretty comprehensive budget (save for a few early teething problems!) and I have the short term luxury of being able to rely on DF for any big or proper emergencies over the next 9 months. I know I need to stop relying on DF for financial security and I will deliver on this promise when the debt is paid off.

    What do you all do with regards to an emergency budget? Did you build an emergency budget first, before beginning the debt repayments? Are you building it alongside debt repayments? How is that going?
    Last edited by DrSpendLittle; 12-09-2017 at 12:14 PM.
    CC1: £254 / £1,253.73; CC2: £297 / £9,124.13; CC3: £312.34 / £312.34; Car Loan: £157.91 / £1,894.92
    Emergency Fund: £84.21 / £1,000; Short Term CC Goal: £863.33 / £4,000 by Jan 1st 2018 (21.6%)
    • ChasingSunshine
    • By ChasingSunshine 12th Sep 17, 7:57 PM
    • 92 Posts
    • 748 Thanks
    ChasingSunshine
    I preferred to have a small emergency fund but it was only about £150 - enough for a last minute flight home essentially as I hated debt and just wanted out of it. I am renting though so don't have any house maintenance issues. It's not what other people on here do and most recommend £500 as minimum and 1000 if you are a homeowner so that you can avoid spending on credit cards again if something goes wrong.

    If your DF is ok to bridge any immediate emergencies you might have in the next few months then focus on paying down debt and you could always make your share another debt that you could owe him back when the interest charging stuff is sorted. Could always dedicate 'extra' money like 3Bay sales to the emergency fund and it will slowly build up.

    It might take you a few months to just see what works best for you and plans can always change if you think thats needed.
    Last edited by ChasingSunshine; 12-09-2017 at 7:59 PM.
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