My diary... becoming debt free whilst still having a life!!!

Tonylpool

Happy New Year all, hope everyone is well!

Will send a catch up mail later!

Jus got my internet connection after being off for a month!

Tony

rubydoiwannabee

Hi everyone,
Today has been a 'finances' day and so I thought I would update my diary to record the situation at the start of 2009.

BEWARE THIS IS A VERY LONG POST!!!!!

Those of you that have read since I joined in July last year will know that at that point we had taken steps to start a debt management plan with Payplan, having received the paperwork and read for hours on end the fantastic advice on this site we (DH and I) decided to make BIG changes to how we lived and SPENT money!! We decided to give ourselves six months of going it alone and then review again whether a dmp would be right for us.

So here we are at the start of 2009 six months on we still have large debts but they are all under control and being paid and coming down every month. We are even managing to overpay one or two each month. The problem we have is our income, it is not enough!!! Haha.. If I could work full time in my current job I would earn a good salary but because I only work term time only, my salary is pretty low really and DH salary is under the national average, I guess that is why we got into this position!!

Six months ago we left our bank and a large CC and OD balance behind and set up SO's to pay money to them every month from a new bank. This left us with the monumental challenge of living out of a bank account with no OD facility, because we wanted to start living within our means instead of beyond them. I am pretty proud of the fact that we have done this now for 6 months. The account balance has been under £10 at various points for a few days but we have succeeded in staying in credit and receiving interest for doing so. It sounds ridiculous but that really is a big achievement for us. Both salaries go in each month and everything is paid on time from this account. As bad as things are we have NEVER missed a payment on anything and never received bank charges or late payment charges. Our debt has gone down slowly but surely and more importantly our outlook and view of money has changed dramatically.

Anyway, in a nutshell we are NOT going to go for a dmp, we are going to carry on working hard and trying to get ourselves out of this situation on our own with our credit rating intact. (Hopefully) By the snowball calculations we still have four years before we are debt free, mainly because our salaries don't allow us to pay large amounts every month, so we will be in this situation for a long while yet. BUT life feels manageable and no where near as stressful as it was in the summer of last year.

Our plan for this year is more of the same on things like:

o Menu planning – we have religiously since July done a menu of main meals for the week ahead and then built the shopping list from that menu. On average our weekly shopping bill for two adults, a teenager and a five year old is £68 per week. This is significantly less than before we started where some weeks it would be as high as £110!! I have to say the key though is that DH does the supermarket shop with the list because he can easily just buy the items on the list and not browse and be tempted like I do.
o Cash Withdrawal once a week – Every weekend we withdraw a set amount of cash to cover, petrol for two cars, parking, groceries and a small amount of cash for DH and I to have in our pockets for the week. When this cash is gone, we don’t spend again until the next Saturday. This has proved immensely hard at times but really does work. On several occasions over the six months DH and I have had words about sneaky switch payments that have appeared towards the end of the week, normally for cigarettes!!! This leads me nicely on to…
o DH giving up smoking – he is on day two of the gum!! And isn’t a bear with a sore head, which is a miracle. I think my DB having cancer has been a real motivator for him. We have agreed that if he succeeds we WILL take ourselves and the kids on a holiday this year, it might only be a few days at the beach in the UK but as long as we get to stay away from home it'll be a holiday.
o SPREADSHEETS!!! – I have a number of different spreadsheets the most important of which is the bank account one. At the start of each month I do a sheet for the forthcoming month, I have an estimated started balance, factor in all the standing orders, direct debits, savings amounts and cash weekly withdrawals. I then let the spreadsheet work out whether any weeks are too close to the mark, e.g. we are in danger of going overdrawn. If this is the case I just put off moving the weekly savings amount over until the threat has passed!!! Ha ha. This has helped enormously because some months because of the day of the week a SO or DD is due it can cause no end of problems. (DH gets paid weekly and I get paid monthly so we have to balance the books very carefully, and the so and dd come out throughout the month to allow for this).
o SAVINGS – well I call it that, but really it is the money I put aside each week when DH gets paid to pay for things like car tax, DS school bus pass, DD after school club, clothes, Christmas etc. This is something else that has stopped us reaching for a credit card and I would thoroughly recommend it.


If you are still reading I applaud you, this can only be interesting from my point of view surely??!! But there it is our six months in a nutshell, 2009 means more of the same, maybe extra jobs to make room for some luxuries, but right at this moment in time I feel happy that we are taking responsibility and doing as many things as we can to change our errant ways!!!

The support from you (anyone still reading) but especially Cas, Belle, SHolmes, Irishchick, 1step, Tonypool has been invaluable and I feel really thrilled to have such support from people that haven’t met me. So a big THANK YOU.

With love and best wishes
Ruby
xxxxxxxxxx

:A :A :A :A

savingholmes

Ruby Thanks for the long post. Good to know things are working out for you a bit more financially. Good to hear that OH is serious about giving up smoking too - fab. I joined the site just after you did - and as you know you gave me advice on one of my very first posts. That is what I like about this site it is mutually supportive and we get to take turns at being the care giver and the care received. Anyway - bye all for now - have a good week.

I'm thrilled to bits at the moment as our debts are also coming down, and our debt free date has potentially crept closer again... but also our extended family is getting closer and more supportive which is also nice.

Cas, Belle, Irish Chick and 1 step - Happy New Year and hope to hear from you all again soon. I do see you posting on various challenges or the finished baskets type threads...

Tonylpool

While we are all feeling sentimental here, I agree with Ruby and all you guys who have helped by offering support on these forums. Have cleared £3k of my debts in 5 months and still a long way to go but am facing the New Year with optimism and confidence!

Money comes and goes but true friends are forever!

Thank you!

rubydoiwannabee

Hi all,
thanks for kind words and indulging my ramblings.

Well the christmas tree is down and put away. I have cleared out the conservatory and my desk and all the recycling and rubbish bins are full to the brim!! Anything to take my mind of off going back to work tomorrow!!!

How is everyone else feeling?


xxxx

sistercas

Ruby WOW! I read every word (honest) I am so pleased things are working for you. Its so hard isn't it? but you are doing fabulously :j and If your DH can quit smoking thats got to help financially and healthwise, keep us posted as we are all genuinely interested

SH a big well done to you too, its fantastic that you have managed to bring your DFD alittle nearer. I know how much hard work you have put in. lets hope your job remains secure and glad you joined £2 savers club ,I reckon I have saved about £70 now in just a few months.

Tony 3K in 5 months - thats some going well done nice to see you on here, its a lovely supportive thread
Belle good luck with resolutions- I whole-heartedly agree
IC welcome to the £2 savers its brill. I have been saving bits and bobs for a year . I counted them up and had £105:j :j so as we have just been to birmingham to see see a panto, with that money I paid for us to have a meal in the stageside restaurant before the panto. and it made it such a special night ( took mum and step-dad too) I think we will remember it for a long time (panto was hilarious too)

I am hoping to pay off 2 credit cards this year my DFD is july 2010 but hopefully will come a bit sooner. still havent got DH on board yet -I will before long

off to watch celeb big brother:rotfl:

savingholmes

Hi sistercas - If I keep my job and OH does his, I'm hoping DFD could be Feb 2010. if I get a bonus March/April - My new DFD could be by xmas wouldn't that be brill!

sistercas

savingholmes wrote: »

Hi sistercas - If I keep my job and OH does his, I'm hoping DFD could be Feb 2010. if I get a bonus March/April - My new DFD could be by xmas wouldn't that be brill!

that would be incredible x

irishchick_3

Ruby I read it all and I have to say, it was very inspiring!! You're so organised!
What a great team we are, I just love it and agree the support is invaluable!
Managed to get a signature sorted, finally! Thanks Ruby!
So far this year its been payments, payments, payments but Im determined to make BIG differences this year. Hope you all have great New Year determination to make small changes but BIG differences in 2009!

rubydoiwannabee

Hi,
Sistercas, your evening at the panto sounds wonderful I just love going to Panto such a lovely festive thing to do. Thanks for reading my long post.

Savingholmes, WOW you could have a DFD of this year!!! Amazing, I really hope the job situation remains stable for you both.

irishchick, thanks for reading all the way through. We aren't really that organised but things are really so very tight that we had to do those or go under, hence my celebration that we are still here with our heads just about above water.

Tony, good to hear from you and it is really great news that you are making such inroads into your debt. I take it your job is going well? (not so new a job now, is it 4 months?)


How has everyone survived today's cold weather, return to work and school etc.?

with big warm hugs and hot snowman soup wishes.
xxxx