To be debt free by 30 I need to start now! - Gingernutbizkit's 2010 diary

gingernutbizkit

Ok, so it's not quite 2010 yet but it is only a few days away so I think I can legitimately start this blog. I realised earlier today that I have spent a small fortune over the past few weeks on Christmas and yet when Mrs Ging asked me what I wanted all I could think was to be debt free.
I will be 30 in just three years time and I have always wanted to be mortgage and debt free by then..... imagine spending the rest of my life with no financial worries .

Our current debt stands at £154k and, although we have the best income now then we ever have, this will still be a massive task. Keeping this diary should help me to keep on track and even if no-one reads it I think it'll still be worthwhile.

Ging x

gingernutbizkit

Below is our monthly budget based on me receiving 2 payments. Obviously in a month where I get three I will be able to give more to the debts
Ging x

Income
Mrs Ging£1,600.00
Ging (paid fortnightly) £2,300.00
total:£6,200.00
Expenditure
Direct Debits + mortgage£1,400.00
Debt repayments£3,200.00
Groceries£250.00
Mrs Ging's Pocket Money £100.00
Ging's Pocket Money£100.00
Birthdays and Celebrations£50.00
Household£100.00
Car Maintenance/Savings£150.00
Family Holidays/Activities£150.00
Christmas£100.00
Our Holidays£100.00
Petrol£250.00
Direct Fostering expenses£200.00
contingency£50.00
total:£6,200.00

gingernutbizkit

Goals

[STRIKE]Pay off Ging's virgin credit card (£2300) by 10th Jan[/STRIKE]
Pay off Mrs Ging's virgin credit card (£4438.35) by end of feb - now £3438.35
Total debt at £140K by 12/03/10 - currently £149k
£3600 in an ISA under Mrs Ging's name by the end of March - started process of opening an account
Total debt to be under £100K by the end of 2010

gingernutbizkit

The kids are back at school today so this is the frst chance I have to get to grips again with my finances. I have spent a lot of time discussing money with Mrs Ging over the past week or so and I think for the first time we are really both committed to getting our debts gone once and for all. We have highlighted some of the key problems and had a think about the possible solutions.

Problem 1: Groceries
We spend a ridiculous amount of money on groceries for a number of reasons. We don't plan our meals, we don't seem to fancy what's already in the house, we have expensive tastes and we aren't motivated to cook properly (even though I love cooking it's not as relaxing with three boys running around the house and me stressing that one will get covered in boiling water, another will burn himself trying to get the hob to turn on and the third will stick his head in the oven 'just for fun'!).
The freezers and fridge are chocca so I think we should be able to cope with limited spending. I have set a budget for £250pcm and plan to write a rough menu plan every sunday and go shopping on Monday and STICK TO THE LIST!!!!
I was lucky enough to receive a Kenwood Chef over Xmas so I will be putting that to good use .

Problem 2: Our home is our castle!
We have spent a small fortune on our house but it is mostly done and Mrs Ging has agreed that once the doors have been done (job half way through) then we will not do any more large jobs on the house until the mortgage is paid!

Problem 3: We're disorganised.
We spend money by not thinking ahead enough. For instance going out over lunchtime without taking something to eat for the boys, buying birthday presents on the day of the persons birthday etc etc. Having done a lot of reading on this forum I can see the great benefits of doing a House File to make everything run smoother. I have also set aside a drawer in the loft room for bargain presents so we should always have something when we need it.

Problem 4: Our budget is unrealistic.
We try to be too tight in some areas and then forget to save for the annual expenses - holidays, xmas, car tax etc. I have written more comprehensive budget for us to follow.

The other problem is that we are coming up to a very difficult time of the year for me. I can often end up depressed and unmotivated in the dark winter months after Christmas and I know I need to keep going. Hopefully rambling away on here will do the trick.......

Ging x

saver03

Didn't want to just read and run so thought I would say :hello: and good luck

It's good that you have set yourself a goal as that helps to keep you focused. And now that youhave identified your problems you can hopefully do something about them.

If you ever feel down and unmotivated just come on here and get it all out as I find that really helps.

SkintGypsy

Howdy!

I stalked your last diary which kept me amused, so I shall subscribe to this one also. Can't believe how young you are and how much you have done, what with the foster kids and all. I hope that they all had a fab Xmas being together again.

You put us regular folks to shame:rotfl:.

Anywho, keep posting.

Gypsy

gingernutbizkit

Thanks Saver.

Just spent sometime organising the kitchen cupboards and think I need to make a list of the number of meal I already have in them .

Next on to the banking. I have some savings which I think are best moved to pay off some of the credit card. I will leave the ISA's alone as I don't want to lose the compund interest for next year.

back soon...... Ging x

gingernutbizkit

Just moved all my non-ISA savings to pay off the credit card debts. It has bought them down quite a bit. Total debt (inc Mort) now stands at £151,698.48

Off to create some goals for post 3 - something more concrete to aim for.

Ging x

gingernutbizkit

Thanks Skint.... although having three foster kids is not helping me to stay feeling young

gingernutbizkit

The kids and Mrs Ging were at home today due to the snow so very little has been done :rolleyes:.

However me and the misses had a chat last night and decided to not go abroad with the kids this year.... we'll camp like we did last year. We also decided not to have a holiday just the two of us and put the kids in respite as we don't earn anything when we do this and also we don't think it's really helping them to feel like they're part of the family. We'll just have a weekend or two in the UK instead so we do have some time to ourselves. All in all this means that we can use the money we had saved for holidays and have now put it onto the credit cards. This means an extra £1K off Mrs Ging and.....

:j:jI have paid off my credit card!!!!! :j:j

AND

:j:j Our debt total is under £150K!!!!! :j:j

Ging x

miemie

Well done Ging, keep it up your doing fantastic.