Independence

DanBrown

I've been a convert of MSE for just over a year now, and whilst my finances are a lot better than they were (income is finally covering my outgoings), I still have some some way to go before achieving the holy grail of savings. I've been reading other diaries and hope that doing the same can keep me on track.

I live on my own and have no family or friends to help me out when everything goes t**ts up, so getting my independence in the form of savings is really important for me.

I should also add that I have Bi-polar which is at least partly responsible for my spending large amounts of money which I didn't have whilst at Uni. And often convinces me that my debt problems are either not that bad, or so bad that I should jump off the nearest bridge. anyway.

Statement of existing debts (as of today):

• Tesco CC : £1,122 0% until October (limit £3000) - I've transferred debt from MBNA and Egg onto this card and cleared both cards.
• Barclaycard CC: £1,699 27.9% :eek: (limit £2400)
• Barclays overdraft: £2,493 (This is an unused student account which I never paid off because the interest was so low; and then they whacked it up in December - I'm paying around £25 a month in interest now)

I also have a student loan (huge) but I'm discounting that as it's deducted from my salary and my other debts are far more pressing.

So - The plan is:

• pay minimum on Tesco and Barclays overdraft and pay as much as I can afford (Around £300 per month) off Barclaycard
• hoping I can pay Barclaycard off before 0% ends on Tesco
• If don't manage to find another 0% for the Tesco, shift to the Barclaycard on around 6.7% - then pay that off
• finally address the Barclays overdraft

Hoping to be in a position to start saving sometime in Summer 2012.

Budget

Monthly income:
£1,464 net

Monthly outgoings

Barclaycard: £300
Tesco minimum payment: around £30
Barclays overdraft: £25

Rent: £450
Home contents insurance: £18.50
Utilities (Gas and Electric) : £60
Utilities (Water) : £20.00
Council Tax : £74.00
BT phone: £15:00
BT broadband: £15.99
TV licence: £24.00 (This will reduce after a couple of months)

Travel (Weekly bus passes for work): £40.00
Contact lenses: 18.00
Groceries: £170 - I include all toiletries, and housing cleaning products in this budget

Gym: £35.00
Lottery: £5.00
Mobile phone: £30.00 - quite expensive but this includes insurance for an iphone which I've already had to have replaced 3 times in 18 mths - so actually quite cost effective :rotfl:
Disposable income: £100 - This is what I allow to cover things like dry cleaning, shoe repairs, any clothes purchases and any recreation.

Luckycharm_2

Hi Dan :wave:

Thought I'd duck in and say well done on getting your finances in order. Your total debt doesn't seem to be too high and with a good effort you'll have it sorted in no time. The first step is admitting something needs to be done and making a plan. You seem to have done that brilliantly.

My friend has bipolar and has had to be talked out of major purchases (houses, etc) that he couldn't afford so I understand this is a real problem. I hope everyone on here can help you find ways to stay on track.

I'll be following your progress and wish you all the best.

LCx

BEAT_THE_DEBT

Hi Dan from one to another.xx

DanBrown

Hi Lucky, you're right, the total debt isn't too bad now. I think I'm in the debt equivalent of the home run. I've paid off other debts like horrendous HP agreements and catalogues and a debt to my university that I was very ashamed of (I didn't bother to pay residence fees for a whole term). And I've finally got a career rather than a job now, so my earnings are rising a lot faster than my outgoings.

I know I'm very lucky to have had my LBM before things got a lot worse. But it's hard to remember that when it seems that everyone around my age, in my line of work (I'm 26 and work in Government communications), owns property and has savings. They're either all very sensible or maybe just in denial?

I'm hoping to move to London soon (job scheming) and I figure then I'll no longer be in the minority as a tenant rather than a homeowner.

DanBrown

Meant to be doing my OU (Open University) reading on exponentials, but am loitering around MSE instead :-(

Good program on Radio 4 at the moment though about national debt.

gwen80

Just wanted to pop in and wish you all the best. I'm very lucky that my Mum would help me out wherever she possibly could, but I don't want to rely on her and am working hard to put myself in a better position financially aswell.

Good luck!

Gwenx

DanBrown

Having a really pants bank holiday weekend.

Moved to a completely new city in January. Even though I didn't know anyone here. That's what grown up people are meant to do right? Make life one big adventure?

Well, it's not working out too well. My job isn't what I thought it would be - I've basically become a glorified data inputter (though it's only on a temporary contract, so I can escape fairly easily), and I think I'm fairly miserable. Don't know anyone here yet, and the people I work with are all familied up. I've spent pretty much of the whole weekend in my flat eating too much food.

So tempted to buy a wii (which I can't really afford) just to cheer myself up. Was pretty close this afternoon: had it in the virtual basket on Tesco direct, filled out all the delivery details etc, just managed to stop myself filling in the CC details.

DanBrown

Had to buy new bed sheets :-( My one and only undersheet has started to develop a hole - Probably through excessive and repeated washing. I can never quite bring myself to spend money on things like bed linen. But needs must.

M & S have 20% off homeware at the moment - so got a Kingsize duvet set (undersheet, duvet cover, two pillowcases) for around £26 including a Saturday delivery.

Didn't spend much other money today. £10 weekly bus pass and 97p for 2 pints of milk (work coffee).

Thinking I'm going to have to give in and buy the Wii though - I've got around 10 months before I can leave and shimmy down to London. I could leave my contract now (quite a good permanent position has just come available), but when I consider what the costs would be in moving again so soon (van hire, penalty fees for cancelling phone and broadband, finding money for bigger flat deposit etc ) - I don't think I could really afford it. So as I'm stuck in purgatory for quite a while longer, going to have to find some way to entertain myself.

Luckycharm_2

Hi Dan

Sorry your bank holiday weekend has been rubbish. It's hard when you move and don't know anyone. What are your interests? Could you join any local groups to get you out and meeting people? These things are usually free.

I don't think a wii is the answer to having a job you hate and 10 months is a long time to be consoling yourself with expensive toys. What are your options for moving again? Short term it may be more expensive but if you're really not happy...

Good luck

DanBrown

Spent so much money today. £27.00 having a pair of boots resoled and reheeled, and a pair of shoes reheeled. And £35.00 on a haircut. :-( I hate having my hair cut. Hopefully though I can have a couple of NSD now.

Lucky - thanks for the message. Groups are a great idea, just I'm so not a group joining type of person. I enjoy exercise but as a solo activity - so not a team player. And again love books, but the thought of going to a book club makes my toes curl. Think I might apply for the position which has become available in London and just take it from there. It's a great job with a good salary, so there's likely to be quite a bit of competition which means I might not even get it. But if I do, then I can weigh up the costs of moving against having to stay here.

cococoladebt

£35 on a hair cut? Tony & Guy? You can easily cut this down by £25.