Starting to change bad habits

Paulgonnabedebtfree

Although the big debts are an issue for me, a lot of my money issues have also been about having a disorganised lifestyle. Buying too many newspapers, going into shops for snacks while at work and nipping into cafes for lunch too much are things that have cost me a lot over the years. So I am now cutting all that out. I even contacted my mobile contract provider just now to ask for a PAC code so I could switch to the ASDA 8p call/4p text deal. They talked me out of it but for £10 p.m. for the next nine months, I get about 150 minutes and 100 texts - more than I need. The last three months of the contract will go to £20 p.m. I also cancelled the phone insurance because the phone it covered is a dead duck anyway and I had already reverted to an older one (one that I actually understand how to use ). I might have saved a bit more if I had switched to the ASDA deal but with my current one I have the convenience of online billing and at least I know I can get a signal from home (an ASDA one might not have). It also saved me the irritation of number porting and a PAC code.
So, with a phone call that lasted a few minutes, I have saved myself about £198 over the next year from what I would have paid if I had made no call. As far as the 4 grand challenge goes, it would mean that of the money I will pay over the next year, £75 will be part of that challenge (the phone is part business part personal use).
I've got Southern Water in my sights too now. I live on my own in a 2 bed property. I have no dishwasher (nor do I want one) and I will soon be using a shower in preference to a bath. Clearly I am a good candidate for a meter. I may not be allowed one though due to being in a flat. If not, I will asked about assessed charging (which I wasn't aware of until I read it on here). Unfortunately, assessed charging is based on bedroom numbers so that may not be a help.
This week Vodafone and Southern Water. Next week Virginmedia and BT.
Go get 'em !!

cuddlymarm

Hi

I find that not carrying too much money also works well. If you've only a fiver with you you'll think twice before spending it whereas a magazine is nothing if your wallet is full. Its the little things that add up. :rotfl:

Sharon87

Well done! It looks like you're making lots of savings!

I've got an idea for an incentive to stop you spending money on snacks/mags/papers.etc. Every time you resist the urge for chocolate/mags.etc put that money into a savings account and watch to see how much you've saved, just on that.

Paulgonnabedebtfree

Sharon87 wrote: »

Well done! It looks like you're making lots of savings!

I've got an idea for an incentive to stop you spending money on snacks/mags/papers.etc. Every time you resist the urge for chocolate/mags.etc put that money into a savings account and watch to see how much you've saved, just on that.

That's a good one. Thanks

Paulgonnabedebtfree

cuddlymarm wrote: »

Hi

I find that not carrying too much money also works well. If you've only a fiver with you you'll think twice before spending it whereas a magazine is nothing if your wallet is full. Its the little things that add up. :rotfl:

For most people that would work just fine. However, I need to take money to work because I must have change for the customers that pay me with cash. I do wish that they would all pay by cheque or BACS but that's not going to happen. I'm having to self discipline my way out of this one. With 40 grands worth of debt over and above my (large for me) mortgage, I certainly need to do something pretty drastic. I do have room in my schedule to take on more work up to about a turnover level of 10 - 12 grand a year and, although I haven't been well disciplined over the years, I do know how to fight when my back's to the wall.
The situations that brought most of this debt about are long resolved (difficult relationship, longish illness) and the only battle I have left is the one I have with myself. Filling in an SOA the other day was a major eye opener and it has helped to show me what I need to do. In order to balance my books, making savings alone would not be enough. I can up my income by doing a lot more of what I already do. Hard graft. Iron self-discipline. That's my route for the next few years. I know how to do both of those.

paybacktime2008

Well done Paul. Off to look at what water assesment is now!

jellybean08

Have you posted your SOA? Peeps on here might be able to cut a few more pounds off for you. Have you sold your dead duck phone? You can even sell the broken ones now, we got rid of all the old ones we had knocking about. Do water companies do the same thing that energy companies do-where you get an online account and can put your meter reading in every month? Coz i hate estimates! I'm with southern water and pay 25 a month for 2 people in 2 bedroom house.

Paulgonnabedebtfree

jellybean08 wrote: »

Have you posted your SOA? Peeps on here might be able to cut a few more pounds off for you. Have you sold your dead duck phone? You can even sell the broken ones now, we got rid of all the old ones we had knocking about. Do water companies do the same thing that energy companies do-where you get an online account and can put your meter reading in every month? Coz i hate estimates! I'm with southern water and pay 25 a month for 2 people in 2 bedroom house.

I did attempt to post my SOA about a week ago but when I went to do it, the browser window had changed and I didn't do ity again. I will do though (even though I feel quite embarassed about it). In my earlier post BTW, the turnover I referred to with my self-employment was an EXTRA 10 - 12k per year. That bit is my saving grace I think (not at work today though due to heavy cold and splitting headache).
My SOA isn't so straightforward as I'm self-employed. However, it included the appropriate percentage of my phone bill for personal use. Same for vehicle usage. The after tax income was AFTER allowing for the business percentages of these items to be deducted from turnover (hope that makes sense). Also, zero for work clothing because that is 100% business item and comes off my turnover.
Actually, my income should increase a bit even if my work level stays the same because I have already spent out on the big items in earlier years so (hopefully) no need to get replacements for some time.
My original SOA showed a debit of nearly 7 grand a year which is a very big shortfall. However, about 10 grand a year is debt repayment to loans and cards with a further 8 and a half grand for mortgage. So that's 18 and a half grand going out before I even put a (supermarket own brand) cornflake in my mouth. That's more than a lot of people even gross.
That SOA really broke through defences with a sledgehammer I can tell you.
That's why I say that I need a two pronged attack. Chopping my spending is going to help a lot. It needs to be coupled with increasing my income too. I do believe I can do this too. I was recently told that some work I quoted to start in the new year (worth turnover about 2 and a half grand) is mine - though I don't count this until contracts signed and sealed - so that would be a good start. Also, most of it can be done out of normal hours so it could be done without interrupting my normal schedule.
It is a bit scarey and I feel that I should be quaking with fear yet it's not like that at all.

Paulgonnabedebtfree

jellybean08 wrote: »

Have you posted your SOA? Peeps on here might be able to cut a few more pounds off for you. Have you sold your dead duck phone? You can even sell the broken ones now, we got rid of all the old ones we had knocking about. Do water companies do the same thing that energy companies do-where you get an online account and can put your meter reading in every month? Coz i hate estimates! I'm with southern water and pay 25 a month for 2 people in 2 bedroom house.

The dead duck phone works but you can't read it at all as there is large screen burn on it. Not sure anyone would want that.
Don't know about online water accounts. Not heard of that at all.