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  • FIRST POST
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 5:31 PM
    • 49Posts
    • 78Thanks
    EscapingTheAlarm
    Spend less now, work less later...
    • #1
    • 3rd Dec 17, 5:31 PM
    Spend less now, work less later... 3rd Dec 17 at 5:31 PM
    Hello!
    Iím starting this diary with two loans to clear (as well as a mammoth mortgage- but Iíll worry about that later!). Iím not a massive spender but Iím not hugely careful either and I could clear my debts much quicker than I will at the moment if I put my mind to it and stopped deciding that my money would be better spent on another meal out...
    I live with my wonderful husband and would love to start a family next year. However, Iím very aware that when I have children, I will want to be at home as much as possible which at the moment would be very difficult as we rely on my full time wages to help service our pretty big outgoings.
    So the plan is to spend less, pay off our debts, and ultimately get to work less when we have a family.
    Wish me luck!
Page 1
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 5:50 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    • #2
    • 3rd Dec 17, 5:50 PM
    • #2
    • 3rd Dec 17, 5:50 PM
    So this weekend I have finally managed to convince DH that it’s time to get rid of these loans rather than plodding along with the minimum payments as we have in the past...
    I think that if we’re careful, we can pay off about £500 a month on top of our normal payments without stretching ourselves to the point of giving in. We owe around £14,000 in total so I’d love to be able to wave goodbye to both of the loans in under two years. Once we’ve done that then we can focus on our mortgage!
    I cooked a roast at home to avoid the temptation of eating out today. Small steps but better than blowing £40 at a pub!
    I need to do some work before tomorrow but am avoiding my laptop as at this time of year I get a huge temptation to look for and buy anything with sequins on...
    • doingitanyway
    • By doingitanyway 3rd Dec 17, 5:57 PM
    • 2,222 Posts
    • 10,277 Thanks
    doingitanyway
    • #3
    • 3rd Dec 17, 5:57 PM
    • #3
    • 3rd Dec 17, 5:57 PM
    A great goal. Wishing you well with it
    JANUARY 2016/SECURED DEBT=24,822/November 2017=3,475
    MORTGAGE FREE 25/07/16
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 6:15 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    • #4
    • 3rd Dec 17, 6:15 PM
    • #4
    • 3rd Dec 17, 6:15 PM
    Thank you! It’s very exciting to think that I could actually not have loans to pay as I don’t think I’ve ever not owed something since I went to uni!
    I’m suprisingly nervous about the prospect of posting an SOA though as I’m very good at convincing myself that I don’t overspend until I think about telling anyone how much I spend on food each week!!
    I’m sure I’ll find the nerve to do it soon... in the meantime I’m going to keep a really careful eye on what DH and I spend so that I can try and scrape together a few extra pennies to throw at these debts.
    • MissShoes
    • By MissShoes 3rd Dec 17, 6:31 PM
    • 1,246 Posts
    • 1,839 Thanks
    MissShoes
    • #5
    • 3rd Dec 17, 6:31 PM
    • #5
    • 3rd Dec 17, 6:31 PM
    Good luck on your journey. I'm seeking something similar- a more frugal lifestyle and an escape from my 9-5. One day!

    Shoes x
    DFD 4th July 2015 Happy Independence Day
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 7:15 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    • #6
    • 3rd Dec 17, 7:15 PM
    • #6
    • 3rd Dec 17, 7:15 PM
    Thank you Shoes! I’ve just had a read of your first few posts on your latest diary and so much of what you’ve said rings very true with me!
    I love little projects but tend to forget about the bigger ones (probably because they’re harder to achieve) and seem to focus on earning more rather than spending less! My husband was really poorly last year though and I think that it’s been a bit of a wake up call that there’s more to life than work and that we should probably do a bit more to free ourselves up!
    When (and how?!) do you plan on being debt free?
    • MeenaM
    • By MeenaM 3rd Dec 17, 7:16 PM
    • 61 Posts
    • 99 Thanks
    MeenaM
    • #7
    • 3rd Dec 17, 7:16 PM
    • #7
    • 3rd Dec 17, 7:16 PM
    welcome and good luck! It will def help to keep a budget and for that you need to log everything you spend it's working for me
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4781.15- 0% ends April 2019 virgin 0% ends july 2020 £4138 4096.20AA Credit Card £860 629- 0% ends Dec 2017 Sainsburys Credit Card £521.27-511.80 0% ends Feb 2018 AIM TO BE DEBT FREE JULY 2019Emergency Fund £10/£1000
    • elsien
    • By elsien 3rd Dec 17, 7:21 PM
    • 15,450 Posts
    • 38,810 Thanks
    elsien
    • #8
    • 3rd Dec 17, 7:21 PM
    • #8
    • 3rd Dec 17, 7:21 PM
    Have you done an SOA?
    Even if you don't want to put it up here it can be a useful tool for yourself to work out where the money is going. Especially if it shows up a discrepancy between what you should have left and what you actually have left - a good way to focus on what's really happening rather than the wishful thinking version.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • MissShoes
    • By MissShoes 3rd Dec 17, 7:25 PM
    • 1,246 Posts
    • 1,839 Thanks
    MissShoes
    • #9
    • 3rd Dec 17, 7:25 PM
    • #9
    • 3rd Dec 17, 7:25 PM
    Thank you Shoes! Iíve just had a read of your first few posts on your latest diary and so much of what youíve said rings very true with me!
    I love little projects but tend to forget about the bigger ones (probably because theyíre harder to achieve) and seem to focus on earning more rather than spending less! My husband was really poorly last year though and I think that itís been a bit of a wake up call that thereís more to life than work and that we should probably do a bit more to free ourselves up!
    When (and how?!) do you plan on being debt free?
    Originally posted by EscapingTheAlarm
    I've been debt free for a couple of years now....but with wanting to leave my job and do something that makes me happy, I'm facing a huge salary drop which is risky.

    Sorry to hear of your husband's illness. I think you're right- so much more to life than work. So now I want to have a bit more freedom and space and time with my husband and family rather than working 50+ hours a week in something that makes me increasingly unhappy.

    xx
    DFD 4th July 2015 Happy Independence Day
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 8:21 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    Thank you everyone! MeenaM and elsien you were both right about keeping a budget and doing an SOA. I have just done mine and I have either made lots of mistakes or I have definitely been doing a lot of wishful thinking!!
    Shoes, I should have read to the end before assuming you were still paying off debts... Congratulations on being debt free- I'm very envious! 50+ hours a week though!! That's a lot of hours to being putting in if it's making you unhappy. Good luck trying to find a bit more balance and please let me know how you did it once you have!
    • EscapingTheAlarm
    • By EscapingTheAlarm 3rd Dec 17, 8:29 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    So here's my SOA. What have I been spending it on?!


    Number of adults in household 2
    Number of children in household 0
    Number of cars owned 2

    Income, Expense, Debt & Asset Details
    Income Amount(£)
    Monthly income after tax 2000
    Partners monthly income 2400
    Benefits 0
    Other income 0
    Total monthly income 4400

    Expenses Amount(£)
    Mortgage 892.7
    Secured/HP loan payments 145
    Rent 0
    Management charge (leasehold property) 0
    Council tax 161
    Electricity 34
    Gas 34
    Oil 0
    Water Rates 48
    Telephone (land line) 0
    Mobile phone 34.32
    TV Licence 12.37
    Satellite/Cable TV 56.6
    Internet services 0
    Groceries etc. 400
    Clothing 50
    Petrol/diesel 350
    Road tax 5
    Car Insurance 50
    Car maintenance (including MOT) 10
    Car Parking 0
    Other travel 0
    Childcare/nursery 0
    Other child related expenses 0
    Medical (prescriptions, dentists, opticians etc.) 0
    Pet Insurance/Vet bills 38.92
    Buildings Insurance 0
    Contents Insurance 22.32 (This covers buildings insurance as well)
    Life Assurance 16.67
    Other Insurance 15.99
    Presents (birthday, christmas etc.) 0
    Haircuts 0 (This, along with most of the other stuff, should come out of the entertainment fund)
    Entertainment 400
    Holiday 0
    Emergency Fund 0
    Total monthly expenses 2776.89

    Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
    Mortgage 263000 (892.7) 1.74
    Hire Purchase (HP) Debt 7000 (145) 5
    Secured & HP Debt totals 270000 - -
    Unsecured Debt Description Debt(£) Monthly(£) APR(%)
    Loan 7000 161 9
    DH Car 14000 245 0
    Unsecured Debt totals 21000 406 -
    Asset Description Value (£)
    Cash 1000
    House Value (Gross) 350000
    Shares and bonds 0
    Car(s) 7000
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets 358000
    Summary

    Monthly Budget Summary Amount(£)
    Total monthly income 4,400
    Monthly expenses (incl. HP & secured loans) 2,776.89
    Available for debt repayments 1,623.11
    UNsecured debt repayments 406
    Amount left after debt repayments 1,217.11 (I must have made a mistake somewhere...)

    Any ideas would be very much appreciated!
    Just to clarify, I have included my DHs car on the SOA but I have no hope of persuading him to pay it off and settle for one we can actually afford so I'm burying my head in the sand for now and focusing on the ones that I can get rid of!
    • Karonher
    • By Karonher 3rd Dec 17, 11:36 PM
    • 440 Posts
    • 2,006 Thanks
    Karonher
    Hello - the first thing I notice is the groceries budget. I am sure you can get that down to £250. You should have an emergency fund, and it is hard to see what is being spent if a lot of things are covered by entertainment.

    Can you go back over the last 3 - 6 months and see what you have spent on food/presents/haircuts/clothes. It could show you were the £1,000+ you should have at the end of the month is going.
    Getting ready for Christmas 2017

    Aiming to make £4,500 online in 2017.
    • MeenaM
    • By MeenaM 4th Dec 17, 10:06 AM
    • 61 Posts
    • 99 Thanks
    MeenaM
    well done on doing the SOA ! another thing that really helped me to figure out where the heck our money goes is to download an app like Spending Tracker, here is the link https://itunes.apple.com/gb/app/spending-tracker/id548615579?mt=8 I would recommend it , but you have to remember to put in everything that you spend , it has helped us to see where it is goes and i would also agree on the comment about cutting down on the food bill if you can
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4781.15- 0% ends April 2019 virgin 0% ends july 2020 £4138 4096.20AA Credit Card £860 629- 0% ends Dec 2017 Sainsburys Credit Card £521.27-511.80 0% ends Feb 2018 AIM TO BE DEBT FREE JULY 2019Emergency Fund £10/£1000
    • EscapingTheAlarm
    • By EscapingTheAlarm 4th Dec 17, 8:53 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    Thank you both for having a look! I agree that I need to work on getting my food bill down... this is a real stumbling point for me though as I'm a bit funny about the food that I buy and like to cook as much as possible from scratch. I'm still sure I could be better than this though... I'll get DH on it too as he tends to be the one to get drawn in by 'great deals'! I'll definitely look into that spending tracker too - Thank you for sharing it.
    After the initial panic of posting the SOA last night, DH did remind me that up until September we were still saving (and then paying off after we didn't save enough) for our wedding and also saving a house deposit so I haven't actually had this much spare cash before.
    I have enough in the joint account to save £1000 this month if we don't come across anything unexpected (like the Christmas presents that I haven't done anything about yet!!) so I think that's a good start. I seem to have a real issue with wasting money if it doesn't fit into a nice round number though. If it isn't a nice number like £50 or £500 I seem to discard it and let DH spend it on snacks... (Poor DH- he is wonderful really!) So I think that taking note of each bit of money which I can save is going to be my first challenge for myself.
    I'm feeling optimistic at the moment so I'm keeping my fingers crossed that it stays this way!
    • enthusiasticsaver
    • By enthusiasticsaver 4th Dec 17, 9:10 PM
    • 4,870 Posts
    • 9,197 Thanks
    enthusiasticsaver
    As your car loan is 9% that should be your first target. You have £1000 emergency fund but your soa has gaps in it and presumably the £1200 approx spare is available to clear the loan in about 6 months. Is your DHs car loan really 0%?

    The groceries figure on the soa is high for 2 people but barring the car loans you obviously can afford it so that is up to you. Is the £400 for everything else an actual figure or just a guess?
    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
    • EscapingTheAlarm
    • By EscapingTheAlarm 4th Dec 17, 9:25 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    I agree on the car loan. I think we should aim to have it gone by the middle of next year so that we can move onto the next one. I don't actually know the percentage for DH's car but he isn't convinced about paying that off at the minute so I think that's a battle left for once the other two are cleared.
    The £400 entertainment is pretty accurate. I give DH and I £50 a week each that we use for haircuts, meals out etc so the only time we tend to blow this is when we go clothes shopping about twice a year. At that point I tend to allocate money out of our monthly spare cash.
    I think we've just been ticking along up until now but just not really bothering to make much headway with these loans as they haven't been our priority. I'm just hoping we can get rid of them now before new priorities sneak in...
    I'm very envious that you are debt and mortgage free! Well done - you must have put in so much hard work! Do you have any tips that you stuck by to keep motivated?
    • EscapingTheAlarm
    • By EscapingTheAlarm 6th Dec 17, 8:03 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    This weekend has the potential to be a spendy one so Iím trying to plan ahead...
    On Friday I have a Christmas meal to go to. The meal itself is £15 which isnít too bad and Iím going to drive so canít spend on wine but I think Iím going to buy an outfit which will cost a bit. However, Iím hoping that I can get away with re dying a pair of jeans that I already have so I only need to buy a top (perhaps a Christmas jumper) which I can wear to all upcoming Christmassy events.
    Iím also planning on doing all my Christmas shopping on Saturday. I donít have to buy for too many people so the plan is to pay for everything out of the spare money in my and DHs personal accounts so that we donít have to touch the potential savings in the joint account.
    Fortunately, I have a mountain of work to do this weekend so I donít think Iíll have time to be tempted by a roast on Sunday!
    13 days until payday and still feeling optimistic!
    • camz2017
    • By camz2017 7th Dec 17, 11:26 AM
    • 159 Posts
    • 188 Thanks
    camz2017
    I think you are doing great and you clearly have enough to tackle these debts really well! Just keep at it, and make your budget realistic. I have subscribed
    • EscapingTheAlarm
    • By EscapingTheAlarm 7th Dec 17, 6:40 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    Christmas jumper purchased! Only £25 which I thought was fine but DH wanted one too so I got him one with lights (lucky DH) and it was £34. He’s going to transfer the money back to me though so I’m not going to worry about buying it.
    Two of our friends asked us to go away for a few nights in spring which will be lovely but of course needs paying for. Our friend is great at finding deals but neither DH or I have dared to open the link to his suggested hotel to find out how much it will be!! Hopefully DH will sort it tonight while I do some work and we can still salvage the money in our joint account. Fingers crossed!
    Thanks for your kind words cam2017 and thanks for subscribing! If you tell me how to do it then I’ll subscribe to yours!
    12 days until payday...
    • EscapingTheAlarm
    • By EscapingTheAlarm 7th Dec 17, 6:42 PM
    • 49 Posts
    • 78 Thanks
    EscapingTheAlarm
    Camz not cam! Good thing I’m not an editor...
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