Jo_R's debt-free diary, slow and steady progress!

Keeping_Positive

All sounds good Jo - shopping and kids bad idea which is why I prefer online shopping even being a two car family!

bevan840

Hi Jo, welcome back, glad the move and party went well Sorry didn't pop in before, was at Mum's for a few days last week as had a very hectic few weeks.
Nice one Dad for the car
Sorry only short but having a peep while I'm at work xx

Jo_R_2

Phew KP, I was wondering if I was crazy for not going shopping myself now we have a car!

So what I have done from my "To Do" list in my little notebook this week:

• [STRIKE]Phone Tax Credits to renew claim[/STRIKE]
• Post proof of no claims for car insurance - got this ready to post tomorrow
• [STRIKE]Pay outstanding water bill[/STRIKE]
• Pay Eon £66 - not done this, not in arrears but a DD got missed due to us moving house - or that's how it appears from last checking online banking - so need to catch up with this

My next list is as follows:D:

• new SOA using this last month as a guideline
• list ebay baby items
• buy card and present for DD1's friend's party
• buy plastic files for new folder so can organise all household paperwork

My online activity is a bit erratic as the connection/computer have been playing up so not been able to check how everyone else is doing - hopefully can get online tomorrow to have a look!

Jo_R_2

I'm feeling a bit disheartened. I went to town today with kids in tow and you know what kids are like, they want this and that... Somehow I ended up in the Disney Store and spent £6 on stuff we don't really need.

Now I know £6 in the scheme of things isn't much, but there was another £2ish on pick and mix, £4 on a birthday present for DD1's friend, £2 on wrapping paper and two birthday cards, £3 I spent on facial scrub and nail varnish remover, plus parking at £1.90, that works out at about £19 just for a trip into town. The money is there - I'm not spending anything that we don't have, or need for anything else, but I can't help thinking every time I buy something that's not an essential, that it's money that could be paying off my debts.

I need to get some sense of perspective - on the one hand at times it can be so easy to spend pennies here and there and not think about it, just think, well the money is there so we won't be short, and then on the other hand I can be completely neurotic about spending anything on 'extras' that aren't completely essential. I need to work out where to stop to get the balance right - I also need to realise that even if I'm not spending money on 'frivolities', it doesn't make it okay to spend extra on groceries, because essentially I'm not actually doing anything constructive by saving money on other stuff because it's not going towards any debts.

I wrote down a list of things I want to save for. It appeared as thus:

• Christmas/birthdays
• bunk beds
• wedding/honeymoon
• house deposit
• buffer zone, ie in case OH loses his job
• car tax
• holiday
• savings for kids

Upon putting it in order of priority, based on what is most important to our everyday life:

• buffer zone
• Christmas/birthdays
• car tax
• bunk beds
• holiday
• wedding/honeymoon
• house deposit
• savings for kids

I've jiggled these around and it may change - in fact it would change if I were totally selfish and honest about what *I* want. Being truthful, the only really important thing we should have is some savings to pay the bills in case anything did happen to OH's job, more so as I don't work at the moment.

Keeping_Positive

Unessential spends are a pain but I think to not do any would be almost impossible and maybe back fire. Have you set up a "me" spend limit yet for the odd treat? I have £50 a month for me, £50 for OH and £50 for kids which I try to include all school trips, brownies, guides and little treats.

Jo_R_2

Yep KP - I think somewhere along the line I've forgotten about 'pocket money.' Would certainly lessen the guilt and still mean I'm only spending what I can afford. Going to do my SOA and include that.

Don't think I'm going to overpay any off my CC this month. Due to comp playing up we now have a new one - OH swapped his tv still at his mums house and hardly used since a couple of years before we got together for a practically brand-new laptop:j so not sold anything on ebay. Although I did get a refund from BT for phone services at the old house - only £10 but is in ex's name!:rolleyes: Need to give him the cheque and get the cash off him and I can pay that towards my CC.

So the big things... I realised I've been moseying along totally completely forgetting to sort the big things. So I hereby resolve to do these things by the end of this week:

• get hold of loan company, cancel PPI
• phone up unused CC company who were supposed to be sending out a new CC so I could sign up with their 5.6% life of balance offer and haven't:mad: Hope I haven't missed out on the offer, will be properly cheesed off if I have!
• do SOA (not forgotten but just been waiting to see how the month pans out, need to increase minimum payment to regular fixed payment on CC, add car costs and open separate savings account to start having a buffer zone just in case)

Jo_R_2

So I've been working on a new SOA. I've refined it and it may look slightly confusing with some key expenses omitted; this is because I have only included the ones I am responsible for, anything else OH pays for, mainly rent, groceries and car insurance.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 821.5
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 120
Total monthly income.................... 941.5
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0*
Management charge (leasehold property).. 0
Council tax............................. 134 Based on 6 instalments from moving midway through year
Electricity............................. 33
Gas..................................... 33 Joint DD with elec, pay £66 all together
Oil..................................... 0
Water rates............................. 50 New house not metered, based again on moving midway through year
Telephone (land line)................... 25 Package with landline, calls and broadband, will go up after 3 months - just looking for the figure after that
Mobile phone............................ 10 I only ever use £10 on PAYG per month
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0*
Clothing................................ 20 Guesswork here
Petrol/diesel........................... 50 Just got new car and using figure of amount spent in last month
Road tax................................ 15.83 To put aside to pay
Car Insurance........................... 0*
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15 Contact lenses
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25 Guesswork again
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50 Want to build up a buffer zone 'just in case'
Total monthly expenses.................. 472.78

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 995
Other assets............................ 0
Total Assets............................ 995

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................9000......154.......12.75
Credit card....................2576.29...54........29
Council tax....................440.......36........0
Overdraft......................800.......0.........0
Housing Benefit................170.......15........0
Tax credits overpay............400.......20........0
Total unsecured debts..........13386.29..279.......-

Monthly Budget Summary
Total monthly income.................... 941.5
Expenses (including HP & secured debts). 472.78
Available for debt repayments........... 468.72
Monthly UNsecured debt repayments....... 279
Amount left after debt repayments....... 189.72
Personal Balance Sheet Summary
Total assets (things you own)........... 995
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,386.29
Net Assets.............................. -12,391.29
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hope that all makes sense! It's a bit wonky at the mo because we moved house this last month and so this is the first "proper" month, we also got our car last month so a bit of guessing with figures. Anything with a * means OH is responsible for it

I need to find exact figures for water and phone/bb package. I also need to take out contents insurance and hope to take out life assurance so will be adding that at some point.

I am assuming OH will be responsible for car maintenance but I do need to double check that.

I want to implement 'pocket money' for spends for me so they don't come out of the grocery spends but not sure how much to allocate yet. I think I shall be needing a separate category for 'hair dye' as mine grows at a great rate of knots and I have to use two packs at a go as my hair is all voluminous (love that word) and long!

After that's all sorted I hope to increase my CC payments from the minimum to a fixed payment but obviously that will depend on what I have left over. I am at some point soon hoping to cut my loan repayment amount by cancelling the PPI and trying to negotiate a lower interest rate. I also need to ascertain the actual amounts left on my benefit repayments - the amounts I have quoted were the original amounts out standing and I have paid off a good few months' worth now.

The APR on the CC is the highest I am being charged, I have a number of different interest rates as I have a mix of money on my card - some cash withdrawals:o, part balance transfer and a small amount of card transactions. I am currently in the midst of hopefully balance transferring to a lower life-of-balance APR on an old CC I haven't used much recently.

Any pointers welcomed!

Keeping_Positive

All sounds logical to me. Id add your pocket money spends in as they wont go away unfortuntely .

Also how about transferring the expected remaining cash (£190 less pocket money budget)as well as the car tax, pressies and other non monthly spends at the start of the month to an instant access account. Therefore easier not to spend and there if you do need it.

Jo_R_2

That's a good idea re: the instant access account - I think part of the "where does it all go?" money conundrum is because when it's all in the same pot it tends to get eaten up, eg having a clothes budget is good but it's easy to spend a few pounds over as you can't 'see' immediately what's there and what's not.

So need to look for one of those and a decent savings account - I do have an ISA but the interest is TINY on it! Preferably with a different bank. My current account is with the Halifax and I've heard they are randomly withdrawing people's overdrafts which I could do without but if they were to snatch money I needed for stuff from other accounts with them I'd be mightily unhappy!

Some good news is that after renewing our Tax Credits claim we are getting a little more a month, works out in total about £40, not loads but it all helps!

Other good news is I have finally persuaded OH of the advantages of having a little money put aside, mainy because we are trying to plan a budget wedding for next year and will need to save. Have good friends who took out a loan for theirs, was supernice but at the end of the day I'm not fussed about chair covers, favours and a huge expensive dress, I want to have a nice day and not worry about being in debt for it. Hurray - the DFW way is engraved on my brain I think!

Keeping_Positive

The thought of the extra debt would ruin the day for me. Im sure with a bit of planning you can have a great dfw wedding.

My accounts are both with NW the savings is online so I can transfer between the two instantly. Mind you at the mo a whole 29p in the savings and about £20 in the main .