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  • FIRST POST
    • adventureofmemories
    • By adventureofmemories 6th Jan 18, 12:07 AM
    • 159Posts
    • 527Thanks
    adventureofmemories
    2018 is my reinvention
    • #1
    • 6th Jan 18, 12:07 AM
    2018 is my reinvention 6th Jan 18 at 12:07 AM
    I'm starting this diary as I am terrible with money and have been in a few situations that has scared me enough to want to change the way I live and think about money & finances. I've always lived with a few pounds to spare or have been living in the negative or relying on others especially my fiance to help me out when I have spent my bill-money. I've always viewed money as a throw-away object that I get monthly ... for me to enjoy.

    I had £0.00 in savings with big things to save for ; Wedding, A "beautiful" house that we actually own, children in the future and an emergency fund

    I've recently had a few nasty experiences with being short on money that I would like to use 2018 as the fresh start of my life. I want to start again from here on in. I'd like to become financially "free" and live much stress-less life when it comes to money. I'd like to wake up everyday being able to know that my future is in good hands.

    My financial goals of 2018
    1. Pay off all debt to Adam (£444.00)
    2. Save £1,000 in Emergency Fund
    3. Save £2,400 in Help To Buy ISA
    4. Keep financial life updated in this diary
    5. Aim to have 3 No Spend Days a week
    6. Not be negative in my accounts
    7. Try not to live pay-to-pay

    Tools I will use to help me
    1. Airtable - I have made a base for my financial life during each month.
    2. Creating and following a guide of "pay day allocation" - Setting 3 tiers for where my money should go, starting with the most important to what can be left out
    3. using my budget planner , keeping record of bills paid, savings and my debt to fiancee, no spend days , things I've done to save money etc...
    4. Checking my bank online
    5. keeping an expense log to see WHERE my money goes once out of my account
    6. M.S.E challenges
    7. January money challenge on another site

    Background
    Me and my fiance live in a rented house. I pay around £700 a month on bills, food and energy for us whilst my fiance pays the rent and internet as well as netflix. We try and half every big purchase down the middle - for an example our tv was £400 so we split it to allow us to pay £200 each for it.

    I'm literally starting from having nothing in my bank accounts.
    My bank accounts are:

    NATWEST;
    Current account for bills
    Bills holding pot
    Powershop sinking fund
    Food shop holding pot
    Help-to-buy ISA
    Emergency Funds - Savings builder account
    Health
    retirement

    SANTANDER :
    I don't use this account now as I've found Lloyds Bank offers more for me.

    LLOYDS:
    I am currently waiting on Lloyds bank to send me the activation code for my new bank account with them so I can sign up for the save-the-change system and also use that account for personal spending so it is much easier for me to track and keep things separate. I also love the other things that the Lloyds account offers.

    Challenges I am in & current progress
    January penny pincher challenge - 0 pts
    £1,000 Emergency fund challenge - £102.00 / £1,000
    Sealed Pot Challenge - £6.90 (money is going towards Wedding , Anything less than £1 is deposited there until Emergency fund is built up)
    Help-to-buy challenge - £200 / £2,400
    January NSD - 3aweek 3/15
    Saving for Christmas 2018 £1 a day challenge - £32.00 / £356
    Retirement - £10.00 in Bank account | £61.08 in B&CE
    Save £12,000 in 2018 - £371.90 all together
    Last edited by adventureofmemories; 06-01-2018 at 12:15 AM.
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
Page 1
    • adventureofmemories
    • By adventureofmemories 6th Jan 18, 12:23 AM
    • 159 Posts
    • 527 Thanks
    adventureofmemories
    • #2
    • 6th Jan 18, 12:23 AM
    2018 financial goals progress
    • #2
    • 6th Jan 18, 12:23 AM
    Pay off all debt to Adam (£444.00) (9.01 %)
    5/1/18 - £40.00 Paid , £404.00 Left to pay


    Save £1,000 in Emergency Fund (10.2 %)
    1/1/18 - £3.00 Deposited into Emergency Fund Piggy bank
    5/1/18 - £100.00 Deposited into fund


    Save £2,400 in Help To Buy ISA (8.33 %)
    5/1/18 - Transferred £200.00 from wages into H2B fund

    Aim to have 3 No Spend Days a week (1/52 weeks completed)
    5/1/18 - Tuesday 2nd , Wednesday 3rd & Thursday 4th were a No Spend Day

    Not be negative in my accounts (1/12 months completed - Runs from my pay day to pay day )
    5/1/18 - Had £40 left though £39.39 is due to come out but I have been paid £1295,21 today so it's all good. No negative signs in my account

    Try not to live pay-to-pay
    this will be hard to track .

    5/1/18 - Powershop: £100.00 put into my powershop energy sinking fund. Will only pay for energy used each week unless good powerpacks are available . Anything not used will be kept in that account and roll over to the next month.

    Putting £20 away each month into health fund in case I need to buy some prescriptions or have dental work etc... done,

    I am going to put some money away to buy household items (not essentials) that we need
    hopefully I will do this each month If my wages allow me to.

    I will be having £100 of spending money for myself but anything I don't use will be put into a savings for my own fun money. I will try and only use £10 a week for myself which can be spent on coffee / sweets / make up etc .
    Last edited by adventureofmemories; 06-01-2018 at 12:36 AM.
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
    • jwil
    • By jwil 7th Jan 18, 9:05 AM
    • 7,934 Posts
    • 23,242 Thanks
    jwil
    • #3
    • 7th Jan 18, 9:05 AM
    • #3
    • 7th Jan 18, 9:05 AM
    Good luck
    "If you can dream it, you can do it". Walt Disney
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 9:13 AM
    • 5,190 Posts
    • 9,884 Thanks
    enthusiasticsaver
    • #4
    • 7th Jan 18, 9:13 AM
    • #4
    • 7th Jan 18, 9:13 AM
    Good financial goals. Is your fianc!e on board with saving too? Is that £404 the only debt you have? No loans or credit cards?
    Debt free and mortgage free and early retiree. Living the dream

    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
    • adventureofmemories
    • By adventureofmemories 7th Jan 18, 7:47 PM
    • 159 Posts
    • 527 Thanks
    adventureofmemories
    • #5
    • 7th Jan 18, 7:47 PM
    • #5
    • 7th Jan 18, 7:47 PM
    Good financial goals. Is your fianc!e on board with saving too? Is that £404 the only debt you have? No loans or credit cards?
    Originally posted by enthusiasticsaver
    He has A lot of savings in his bank account, he puts £200-£400 each month and what ever he uses from it he always puts it back. We keep our finances separate but I have told him i want to save more of my money so we can save for the Help-to-buy scheme and I need to build the Emergency fund up too.

    Yeah, that's the only debt i have and it's only because he's learning to drive & or wants to use it for buying a car when he passes.

    I don't have any credit cards - I really want to avoid ever having one. I've never had one.

    Thank you to everyone.

    Update
    Another £110 has been added to my emergency online fund,
    £3.00 has been added to my Emergency fund pot
    84p has been placed in my wedding fund.
    I've removed £20 from health but placed it into the emergency fund
    I had 2 spend days today & yesterday but will be taken out of shopping funds.

    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
    • ValiantSon
    • By ValiantSon 7th Jan 18, 11:06 PM
    • 224 Posts
    • 203 Thanks
    ValiantSon
    • #6
    • 7th Jan 18, 11:06 PM
    • #6
    • 7th Jan 18, 11:06 PM
    I don't have any credit cards - I really want to avoid ever having one. I've never had one.
    Originally posted by adventureofmemories
    There's nothing wrong with credit cards per se. The problem only comes if you spend more on them than you actually have. Used wisely they can actually help you to earn money, possibly through cashback, but more importantly by leaving your money in your bank account earning interest. Two points to bear in mind:

    1) If you are keeping a careful eye on your spending then you will only ever spend on your credit card money that you actually have in your current account, so you can simply pay it off when the bill comes (setting up a direct debit to pay the balance every month avoids any risk of forgetting).

    2) The money in your current account will stay there longer and (hopefully) earn some interest. If you don't have an interest paying current account then I'd advise switching to one. For example, TSB will pay you 3% on balances up to £1500, and the minimum monthly deposit is only £500.

    Credit cards can actually help you if they are used correctly.

    Oh, and they also give you Section 75 protection on purchases over £100.
    Last edited by ValiantSon; 07-01-2018 at 11:08 PM.
    • adventureofmemories
    • By adventureofmemories 12th Jan 18, 10:11 AM
    • 159 Posts
    • 527 Thanks
    adventureofmemories
    • #7
    • 12th Jan 18, 10:11 AM
    • #7
    • 12th Jan 18, 10:11 AM
    crredit cards aren't for me, i don't have the right mindset to use one right now.

    update
    It's been a bit of an 'expensive' month but i've used my emergency fund for only emergencies or expensive needed house items / work items. I've decided my emergency fund isn't just for emergencies but for needed house hold bits too (within reason) so I've changed the name to the MOJO fund...

    I have a little bit of personal money,
    £50 in cash & around £50ish online - I split it so £25 is in my new lloyds bank which is for personal spending. I don't have a lot of personal money because I've put a lot of it into some savings.

    Wedding = £28 (started with £6.90 on 1st jan)
    Retirement = £40.00 (started with £10 on payday)

    I've set up a save the change account on my lloyds bank as well.

    Only 1 no spend day so far this week
    Aiming to get 1 today & tomorrow / sunday
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
    • MeenaM
    • By MeenaM 12th Jan 18, 10:46 AM
    • 132 Posts
    • 263 Thanks
    MeenaM
    • #8
    • 12th Jan 18, 10:46 AM
    • #8
    • 12th Jan 18, 10:46 AM
    welcome and good luck !

    I agree with you , don't get a credit card ! you don't need one and they will only lead to trouble imo , you get protection with a debit card these days too so don't be tempted is my advice ,

    will you join your income when you marry?
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4673.58- 0% ends April 2019 virgin 0% ends july 2020 £4138 4055.29AA Credit Card £860 275.16- 0% ends Dec 2017 Sainsburys Credit Card £521.27-429.01 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £210/£1000
    • adventureofmemories
    • By adventureofmemories 13th Jan 18, 8:55 AM
    • 159 Posts
    • 527 Thanks
    adventureofmemories
    • #9
    • 13th Jan 18, 8:55 AM
    • #9
    • 13th Jan 18, 8:55 AM
    We won't join our finances , I've already spoken to him about this. He doesn't see the point.

    Yeah I'm just more so afraid that I won't be able to control my spending with credit cards. Done fine without them.
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 18, 11:53 AM
    • 5,190 Posts
    • 9,884 Thanks
    enthusiasticsaver
    Whilst I commend you for not having a credit card when you come to apply for mortgages having a well run credit card account helps your credit score.

    It is difficult though if you are convinced you will run up the account and not pay it off in full each month as you should. It is just something to bear in mind that mortgage lenders will score you higher if you have well managed credit. If you do get one then just spend once a month on it and pay it off in full by direct debit.

    Opening up the help to buy ISA is a good move too.

    Personally I would keep the emergency fund purely for emergencies rather than buying household stuff which should really come out of your joint household account.

    The best way to save for retirement is in your pension if you have an occupational one. Saving in a bank account is a waste of money as the interest rates are low and inflation means it is actually going down in value, retirement is a long term savings plan and the returns are better in a pension or some sort of investment plan and saving in a pension is more tax efficient and usually also means your employer will match contributions up to a certain point.
    Debt free and mortgage free and early retiree. Living the dream

    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
    • adventureofmemories
    • By adventureofmemories 14th Jan 18, 12:19 PM
    • 159 Posts
    • 527 Thanks
    adventureofmemories
    ah okay - I didn't have enough in my normal budget for the little bits but it's okay.
    We don't have joint finances. He doesn't have an emergency fund but loads of cash stashed away.
    I have a employer pension fund with around £61 in.
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
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