Jellie's attempts to banish the wobbles and get debt free!

*Jellie*

Seems like the right time to start a diary! Latest LBM is that until I tackle the reasons behind my spending I'm never going to get free.

I've had a few wobbly times with debt and a few LBMs! I've basically had debts since student days and although at times I've managed to get almost debt free I then fall back into the same bad habits.

Last year I met a wonderful guy and I desperately want to start our life together debt free. At the moment we are looking to sell both our places so that next year we are able to get a place together. With that in mind I really want to be debt free and have adjusted to some better spending habits.

This latest LBM was back in March and provided I don't put any new spending on the cards or overdraft I will be debt free by next August keeping up my usual payments. However, I aim to be debt free by my birthday in April next year by throwing everything I can to clear the debts. My overriding challenge at the moment is the Debt Free Birthday Club and I'm joining in other challenges to meet this goal.

I'm in bed ill at the moment so I'm planning to keep posting between resting until I feel the thread is up to date. Feels like a bit of an indulgence but the thread is really about tackling the reasons behind my spending to help me change and move on so I know I need to talk it all out to reach my goal.

If there is anyone out there reading then thanks and good luck on your own journey!

Primula

Hi Jellie

Good luck in your debt free quest. Loving all the diaries on here so subscribing to your nice new one and look forward to your journey.

P

*Jellie*

Thanks Primula- it feels weird starting one and not just reading others!

Ok here goes with my SOA.....feel free to quiz me or comment!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2527.58
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2527.58

Monthly Expense Details
Mortgage................................ 741
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 31
Gas..................................... 80
Oil..................................... 0
Water rates............................. 35.39
Telephone (land line)................... 38
Mobile phone............................ 31
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 12
Car Insurance........................... 26.17
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 60.25
Pet insurance/vet bills................. 0
Buildings insurance and Contents........ 48.07
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 16.61
Presents (birthday, christmas etc)...... 10
Haircuts................................ 25
Entertainment........................... 270
Holiday................................. 25
Emergency fund.......................... 80
Total monthly expenses.................. 1978.44

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................6744....450........0
Total unsecured debts..........6744....450........-


Monthly Budget Summary
Total monthly income.................... 2,527.58
Expenses (including HP & secured debts). 1,978.44
Available for debt repayments........... 547.17
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 97.17

Personal Balance Sheet Summary

Total Unsecured debt.................... -6744
Net Assets.............................. -6744

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Lemon_Tree

hi and welcome to the boards, the only things that have struck me is that assuming our SOA is for one (there's only one income) your groceries have space to make savings. Also you are spending one heck of a lot on entertainment, you could be debt free even sooner if you weren't spending over £3k a year on entertainment!

*Jellie*

Lemon_Tree wrote: »

hi and welcome to the boards, the only things that have struck me is that assuming our SOA is for one (there's only one income) your groceries have space to make savings. Also you are spending one heck of a lot on entertainment, you could be debt free even sooner if you weren't spending over £3k a year on entertainment!

Thanks Lemon Tree
My SOA is for one- my partner and I go halves on groceries etc!

I know form reading other threads my grocery spending is high but I can't really work out where I'm going wrong. I try to buy non-branded where possible and often overcook and then freeze.

I'll take a look at entertainment- some of it is the fact that we sometimes eat out (on voucher deals) and I don't really want to cut this too much as I tend to splurge if I feel I'm denying myself too much and I don't want to put pressure on my relationship. I'm probably going to cut my Lovefilm subscription next month and am looking at decreasing book buying which I included in entertainment as well.

I think maybe I need a spending diary as I'm sure some of my groceries is really toiletries and cleaning products and entertainment includes various odds and sods. I need to break this down a bit further to figure out were to save.

Funny how it adds up- quoting my annual entertainment was a bit of a shock! Goes to show that it all adds up!

Thanks again. :beer:

Primula

Aaarrrghhhh, this is the third post I have typed out. The last two when I hit the button to post just disappeared. I am copying and pasting this one!

I know what you mean about it being a bit scary starting your own diary, I just started one a few weeks ago and I keep thinking someone will “recognise me”! LOL.

Anyway, re your SoA, I am no expert but I can see a few things already, so get your MSE hat on girl and jump aboard the MSE wagon and you will be debt free by your birthday in April! You would need to pay approx £750 per month for the next 9 months to pay it off by then. Some food for thought, going on what I pay:-

1. Landline and broadband. You pay £60 p/m. I pay £40 with BT for both and I am told this is not the cheapest. Possible saving £20 p/m minimum.
2. Groceries is high for one. Check out OS board. You could start by reducing to £150. Saving £50 p/m
3. Clothing. Could you make do with what you have and not spend until your birthday? Saving £50 p/m. If this is too difficult, just spend half your usual amount. Saving £25 p/m.
4. Mobile – can you get out of your contract? You could get a good one for £15 p/m or PAYG for £15 p/m or less. Saving £15 p/m
5. Entertainment – this is high. Could you try really hard to make do with £100 p/m. Saving £170. If impossible, half your usual, saving £135 p/m.

So………………….your usual payment to c/c £450 plus your surplus from your salary at approx £90 plus the savings from above @ £305 or £245 comes to a possible £845 or £785 you could pay to your c/c meaning you would be rid of it BEFORE your birthday.

It’s amazing what you can do when you put your mind to it. Give it a go.

Also, your gas seems quite high and your home insurance. I saved over £100 off mine this year by shopping around. Do you have no life cover?

Anyway, sorry rambling on a bit and hope some of my comments may be useful to you.

IWantToBeFree_2

Hi Jellie, can relate to you not wanting to cut back too much on the entertainment, I am the same, If I go cold turkey, I end up splurging and the end result is worse than if I just treated myself!

There are a few things that stuck out on your SOA:

Gas - This seems high, do you ensure that you do proper meeting readings and not estimates? Can you switch to a cheaper supplier?

Landline - Also high, can you use your mobile for calls etc if you have inclusive minutes?

Internet - Which provider are you with? We only pay £7.34 a month for ours, a third less than what you are paying.

Clothing - Buy from ebay etc? Sell your old clothes to make way for new ones?

Medical - Also high, do you have a prepaid perscription card which may save you money?

House insurance - Seems high, when are you up for renewal? Do you go via cashback websites when you do renew?

Re the books, how do you buy them? I am a complete book addict and recently, I have been buying bulk lots from ebay for really cheap prices bring the cost right down. Also, amazon marketplace is great for picking them up for 1p excluding postage (the 1p ones come in at around £2.76 when you include postage).

Wishing you all the best on your journey, it looks like you are making massive inroads into the debt every month despite allowing yourself treats etc, so I wouldn't feel too bad by having fun either!

*Jellie*

Primula wrote: »

Aaarrrghhhh, this is the third post I have typed out. The last two when I hit the button to post just disappeared. I am copying and pasting this one!

:mad: I hate it when that happens!!

I know what you mean about it being a bit scary starting your own diary, I just started one a few weeks ago and I keep thinking someone will “recognise me”! LOL.

I'll take a gander- most of the diaries I've looked at so far are so long I never seem to be able to read up to date and I don't like starting in the middle.

Anyway, re your SoA, I am no expert but I can see a few things already, so get your MSE hat on girl and jump aboard the MSE wagon and you will be debt free by your birthday in April! You would need to pay approx £750 per month for the next 9 months to pay it off by then. Some food for thought, going on what I pay:-

1. Landline and broadband. You pay £60 p/m. I pay £40 with BT for both and I am told this is not the cheapest. Possible saving £20 p/m minimum.

Unfortunately I'm in a contract- will try and get out of it when I get my house sold but I'm not holding my breath!
2. Groceries is high for one. Check out OS board. You could start by reducing to £150. Saving £50 p/m Will do- am going to take my spending further by itemising groceries next month I think!

3. Clothing. Could you make do with what you have and not spend until your birthday? Saving £50 p/m. If this is too difficult, just spend half your usual amount. Saving £25 p/m.
Am not spending on clothes while doing 100 day challenge. This leaves only any essential spending on underwear and shoes allowed until start of November. Spare money should go to CC! However this is one of my danger areas and I have been known to go out and spend a few hundred on clothes in a day if I've been good for months and feel like I need a treat!....Imagine a headbanging smilie here!!

4. Mobile – can you get out of your contract?
Unfortunately not!

5. Entertainment – this is high. Could you try really hard to make do with £100 p/m. Saving £170. If impossible, half your usual, saving £135 p/m.

Again I'll sort out a spending diary and see what I can do here!!

So………………….your usual payment to c/c £450 plus your surplus from your salary at approx £90 plus the savings from above @ £305 or £245 comes to a possible £845 or £785 you could pay to your c/c meaning you would be rid of it BEFORE your birthday.

It’s amazing what you can do when you put your mind to it. Give it a go.

Wow! I guess it's possible- clothes, entertainment and groceries could well make the difference!

Also, your gas seems quite high and your home insurance. I saved over £100 off mine this year by shopping around. Do you have no life cover?

I might shop around for gas- depends if I have time before I sell house! Life cover was done the MSE way and home insurance will be redone when I've made a claim for losing freezer worth of food!

Anyway, sorry rambling on a bit and hope some of my comments may be useful to you.

Thanks very much for all your comments. Incredibly useful, inspiring and motivating to know people are holding me accountable for my decisions!!

*Jellie*

IWantToBeFree wrote: »

Hi Jellie, can relate to you not wanting to cut back too much on the entertainment, I am the same, If I go cold turkey, I end up splurging and the end result is worse than if I just treated myself!

I'm glad it isn't just me. One of the reasons for starting the diary is in the hope it helps me address the splurges and work out why I do it!! My other problem seems to be unbudgeted spends which seem to me to be essential! I'm wondering whether lots of my groceries and entertainment is down to this!

There are a few things that stuck out on your SOA:

Gas - This seems high, do you ensure that you do proper meeting readings and not estimates? Can you switch to a cheaper supplier? Will check

Landline - Also high, can you use your mobile for calls etc if you have inclusive minutes? In contract. Rarely pay for calls though.

Internet - Which provider are you with? We only pay £7.34 a month for ours, a third less than what you are paying. Also in contract at moment

Clothing - Buy from ebay etc? Sell your old clothes to make way for new ones? Not buying any at the moment and am having a huge declutter- will mainly buy from charity shops and operate a 1 in 1 out system when I finish the 100 day challenge

Medical - Also high, do you have a prepaid perscription card which may save you money? I do this. I have contact lense which I get using MSE guide at cheapest rice I can. I have a long term illness which leads to several other expenses which can't get on prescription. This is an area I will be looking at though.

House insurance - Seems high, when are you up for renewal? Do you go via cashback websites when you do renew? will do this when my claim has gone through

Re the books, how do you buy them? I am a complete book addict and recently, I have been buying bulk lots from ebay for really cheap prices bring the cost right down. Also, amazon marketplace is great for picking them up for 1p excluding postage (the 1p ones come in at around £2.76 when you include postage).
I buy ebooks mainly- I was running out of space! I also use charity shops and Marketplace for fiction. However my weakness tends to be books and resources to help with work. They can be more expensive and always seem justifiable as they seem necesssary and helpful! Again an area I need to work on!!

Wishing you all the best on your journey, it looks like you are making massive inroads into the debt every month despite allowing yourself treats etc, so I wouldn't feel too bad by having fun either!

Thanks- if I can get to the point where all fun is within budget and I'm debt free I'll be happy. At the moment I never seem to get to the point of having enough savings to cope with unexpeceted expenses and feel like I go round in circles!

Thanks for your comments. There seem to be lots of areas I need to look at and some which I can't do yet. I think I'm going to update my New Year Resolution technique and Make A Change Challenge to encompass this! In a few days I'll read back and pick one thing I want to change or focus on each month for the next year in order to be DF by my birthday!

Primula

Re your eating out, we used to eat out every Friday night, then Sat night was usually a chinese takeaway, have cut back on this though since DD went to uni and we are supporting her. I did miss our Fri night meals out at first I must admit, but now we go for a treat much less frequently and it is more of a treat when we aren't doing it all the time. What I sometimes try to do instead is on a Sat when I have more time, I will make a nice meal, set the table all nice etc etc and feel proud of the fact I have made a nice meal for a fraction of what it would have cost going out. It feels good.

I also know what you mean about splurging on clothes, [STRIKE]I do this too[/STRIKE], I did this too! Still been known to cave in when I visit the "sales" or look on the internet at the bargains so now I spend my time on here instead! :rotfl: And of course I will be busy next week ironing (re your challenge thread!). Seriously, just staying away from the shops is a help. Good luck.

*Jellie*

Primula-
I am cultivating a MSE forum addiction but don't want it to annoy the OH!!

I'm trying to home cook where possible and as you say it is great to feel like you've made a special effort with the table etc. We are trying to go out in the week for food and use offers and set menus to save where possible. We sometimes have weekend lunch at the local Greek Cafe as that works out much cheaper for more food than elsewhere. Main problem at the moment is that I don't have the freezer space I'd like to cook in advance as much as I want.

I will try and get on here for a bit before I go out shopping- might help. I'm already better than I was but I think it will always be a difficult and dangerous area for me to battle with!

I'm sure you'll do the iroming challenge you've set without and problems!