A Return to A Debt Free Mission

Exerbusi2

Hello all...

For the purpose of this thread my name is Exerbusi2 - I used to be known as Exerbusi, but problems with my log in have meant I signed up with a new profile!

A bit about me...

I joined this site just over a year ago - I had found myself in £8000 of debt. None of it was on irrational purpchases really, I had bought a car, a computer, some furniture, a house move etc. The point is, I ended up realising enough was enough, and I didn't want to be another statistic...

I addressed the problem with vigour, and within a month had shaved off over 20% of my debt. I was really enjoying my money saving - I had not long moved to the North, I was doing well at work and my social circle was relatively small, giving me a chance to really attack my debt. That, and the fact that my debt was poorly planned on my part meant with a few minor tweaks I could tidy up my account.

A month or so later, Christmas came and I met the woman of my dreams. To cut a long story short, I fell head over heels in love, spent too much money travelling to see her, staying in hotels, buying dinners etc - as they say, love is blind and it really distracted me from my finances!

My position now is simple - I am still in debt - £5069.24 of it to be precise. This is some way off the £8000 I started with, and is largely down to the solid foundations I put in place when I was on the debt beating wagon last time. All of my debts were on an automatic repayment, so they are chipped away at.

Now my situation has changed - I want to be buying a house very soon (4-6 months). I have the capacity to store £500 or so per month (on a good month), so I shall be working towards looking at ways I can reduce my outgoings. There are a few easy changes I can make, and intend to do so starting from today! I am back on a money-diet, so shall be on NSD's as of now!

My goal is to have £1500 in savings by March!

This thread will see me post on my progress, and share advice and life nuggets along the way!

Hope you enjoy reading as much as i will enjoy writing!

starnac

hi exerbusi2. thought i'd pop in to wish you luck on your journey. you obviously know what you need to do as you have done it before. why don't you post your SOA up for savvy MSE'ers to look through to see where you can save some money.

also there is a monthly NSD challenge running which may help you along with the sealed pot challenge. many of them are now over on the debt free diaries board. pop over and see if there are any that take your fancy.

good luck

starnac

Exerbusi2

Thanks starnac - I will have a look.

I don't really have time to post my SOA yet, but I will do at some point!

Yeah, I have some history in this, and it really did help me. Like with many things though, I slipped off the ladder and have suffered from my lack of focus.

My first plan is to clear and reduce my overdraft - I know it is the cheapest of my debts, but having a bank account that always reads in the black will be good for me from a mental point of view. There is a certain xen in knowing that my account is in credit - I once reduced my overdraft to £400 - it is now at £750, but that is half of the £1500 it was 12 months ago!

I have decided to be brave next month and shave it down to £600, even though it is Christmas time! My plan is to be very frugal - a cheap Christmas involving only going out once or twice over the festive period is the aim of the game - my girlfriend and I have decided that spending quality time with friends and family is a cheap and fun way to spend the Christmas period. Also lots of nice long beach walks will do us some good and keep us from spending money!

As for today, it is the day of my renewed vigour, and I have opened up the penny jars I keep by my bed. After counting up the silver coins, I had a very welcome surprise....£76! This doesn't include the coppers, of which there were far too many to count. I have no idea how much there is in copper, but I would hazarc a guess of around £10 or so.

I can add this to the £25 I have found out my old phone is worth, and I am £100 better off this month! My next step is to call the bank to ask for a list of my previous charges, and I will get the ball rolling on my reclaim!

At present I have no idea how much I have been charged, but it would be set to run into the hundreds. If I could get that back it would be a very welcome and timely boost to my account!

I pay for a premuim account, but I don't really use the benefits. My girlfriend has an account with Barclays that gives us both travel insurance, so I don't need that. That costs me £13 per month. Other than that, my outgoings are pretty streamlined thanks to my efforts last time around. My only issue is the little dribs and drabs of spending that I don't need to do - I must be more disciplined!

As for now, I am looking to have as many NSD's as possible - I think last time I managed 14 in 18 or 19 days, but I don't see that as possible. As long as I stick to not spending during work, I will be onto a win! I can walk to work about 1 day in 4 or 5, saving me a bit of petrol. I can take food from home for lunch, and after work I can head to the gym (free entertainment for an hour), then get myself home and relax on the cheap!

Day 1 - a NSD hopefully, and a nice boost of £100 or so going into my account within a couple of days!

Verbatim

Good luck. It sounds as if you're well on your way already.

Exerbusi2

A long awaited update from me!

Well the money saving is going really well - a nice pay check this month has left me with a nice cushion for Christmas. Pension arrears, mileage allowance and a backdated pay rise gave me more than expected, especially when we need it most!

The most exciting bit of news is a potential future revenue stream! I have linked with a well-established agency in my industry, and there is potential for extra work to be pushed my way. I have asked for around 10 hours per week, which would be relatively well paid (£23 per hour). The agency are well respected, have been going for 8 years and offer no promises. They are a professional outfit and having done my research, I have deemed them trustworthy! The great news is that signing up with them costs me NOTHING, and I can earn a great reward from it!

Importantly, the agency pays on the 1st of every month, and my job pays me on the 15th, giving me great income boosts at the start and half-way point of every month! If I could pick up an extra £500-£900 per month through them I would be able to make great money, eradicate my debt and build a very healthy savings account really quite quickly!

Having met with the owner of the agency today, he says they take on around 4-5 new clients on a poor month, and over 25 on a good month. He has said that by February I could be expecting around 5-6 hours per week, building by the month - perfect for me! I have also taken on another client recently, so will shortly be recieving £300-£500 in a lump sum very soon!

Add to that another £300 from a client I am working for, and it could potentially be a case of bye bye overdraft!

Watch this space...

Exerbusi2

I'm back, and this time for good!

I have just realised I haven't been around for over a year - lots has changed!

My money saving has been going well. The agency I mentioned in my last post has turned out to be fantastic, paying me a solid £500 per month. I have also set up a sideline business, paying around £1500-£1700 per month. I now manage to bring in at present £2300 per month after tax, which is fantastic compared to my income of arond £1000 per month 1 year ago!

It hasn't been easy - I work long hours (although I love what I do) and I am looking for the next project. My business is easy to run, and I can enjoy plenty of downtime which gives me the opportunity to work on my future projects.

To set up my business, I had to invest £5000 in a vehicle. Although this was a hit financially, it has allowed me to increase my income dramtically. The vehicle is paid back at a rate of £200 per month (although it is a flexiloan allowing me to pay back more when I can afford it).

I have a savings account, which by the end of this month will have a balance of £1800 (£2000 if I can push it, which is a big mental boost if I could achieve it). I have moved as much of my CC debt onto 0% as I can, and aim to have that down to £1500 by July (it is currently at £2300). By the 15th of this month I want to have it below £2000, which is very do-able.

So, there is an update which will be added to far more regularly! I want to be able to celebrate a debt-free life as soon as possible!

Exerbusi2

So today I have cleared another £130 of credit card debt, and have transfered another £380 onto 0%. This brings my overall debt down to £4603.59.

By the 15th of this month, I will have brought in another £1448, of which I will try to save £600 - I want to put that money into my savings account, as I see the money building up in there as a very positive thing. I will also pay off £200 on the loan, and will pay off another £250 of credit card debt. The rest I will use to pay for my general life expenses.

By reducing my debt by £450 each month, I would be debt free by the end of the year. That would be a fantastic achievment, but my girlfriend is expecting our first baby in July and that will affect my debt reduction, as I will be the sole earner for at least 6 months!

Exerbusi2

Life is about targets and milestones. There is a positivity that comes when a target is hit, and psychologically hitting targets is a boost in both real terms (debt is reduced) and mental terms (hitting targets brings confidence).

I am firm believer in our pyschology is the key to all we achieve, and all that we are. My pyschology now dictates that I see my debt as something that can, and will be beaten. I am forcing myself to be embarrased by my debt, even though it is modest and could be paid off relatively quickly (within 12 months).

I have taken the time to think about my financial life over the last 12 months tonight, and I have made large strides. This is actually down to a stark realisation that I don't need a job - income is a responsibilty I have to take on. I am removed myself from the comfort zone of a job, which forces us to accept the safety net it provides. In my line of work I was over-worked and under-paid, and I am glad I made the decision to break free. It has made me much more proud of my financial achievements than I thought possible when I was an employee.

If I didn't have to buy my vehicle, I would be debt free by now, which was my target originally. I have registered as self-employed, and given I need to provide 2 years worth of books before I can take out a mortgage I am happy to accept that buying house needn't be a priority now - it can wait, and good advice has told me to wait regardless!

Where next? As in the post above, the early target will be to shift another £450-£500 this month. That would put my net debt under £4000, which would be a massive boost to me!

I am considering my own circumstances as similar to the policy the government is taking - pay back debt now, easing life in future!

Exerbusi2

I have also recently read Paul McKenna's 'I Can Make You Rich' - very interesting reading. Don't expect it to give you lots of ideas on how to make money, but it certainly changes your psychology which is the key to wealth creation, according to many!

Exerbusi2

I have assessed my income days over the next month, and I am expecting it to come in blocks, finishing at the 15th. There is also the posibility of some cash-in-hand work which would pay for my fuel, meaning I would be, in real terms, not spending on fuel.

Having posted my aims last night, I am hoping to stick to them rigidly. That said, I have since realised I have a long trip and a birthday that I forgot about this month! This will take careful management, and I am willing to sacrifice a small part of the money I am saving, rather than the money I have earmarked for debt repayments. The aim is to pay £400-£500 per month of debt, the rest going into savings.

Exerbusi2

Interesting point...

Over the last 3-4 years, I have done lots of reading on personal development. The area that has interested me the most is achievements, and the foundation of all success seems to be focus. What we focus on, we create.

The first time I attacked my debt, eventually removing most of it, I became really focussed on my mission. Rather than view my situation as 'removing' debt, I focused on 'creating' wealth. There is a negative psychology when focussing on debt - it reminds you of what you have. What I wanted to focus on was what I wanted, which was money, not debt.

In truth my approach was a mixture - I focussed on creating more money, and this extra money went to paying off debt. Looking back, my focus on creating extra income taught me a lesson I took with me, which was look for extra income, not to strip my lifestyle back and live over-frugally.

Anyway, my focus on extra income has paid off - I have just taken on a new client this morning, which will be worth at least £200 to me. Additionally, I am waiting on a potential extra £200-£500 per month from another client!

Remember, what you focus on, you create.