SAHM to 2 boys Money Diary

SAHMto2boys

Well, after reading what seems like every diary on here and loving the information and support people give I have decided its time to start my own. I must be honest and confess that I did have another user name and use to post on the boards regularly however my user name was very similiar to my real name and I got the feeling someone was stalking my posts:eek: I am really hoping I can use this diary to be able to tame my spending ways and make me take some responsibilty in clearing debts.

To the outside world I have a pretty perfect life - big house in a nice area, don't go to work and look after my toddler and baby, great hubby whos earns a fab wage, blah blah. But the reality behind closed doors is rather different. DH job is safe and secure at the minute but like most people I don't think we can say they are totally safe, we have a small debt compared to some (but still debt the worrys me) but the main thing is we have a MASSIVE mortgage, and I mean MASSIVE. It scares the life out of me really. We have lived on the breadline and totally hand to mouth since we moved into this house for the past 3 years, we knew we would have to do this but moving was very important to us. Plus thankfully we moved at the right time as we would never be able to afford to move into a house like this now. Please no-one get me wrong I'm not complaining at all and I'm very thankful and love our life, its just that no onein the 'real' world knows how hard it is.

So the plan is we need to be shut of the credit card debt so we can either save cash or overpay on the mortgage to try and be rid of it asap or be secure should the very worst happen. We have been in this situation before where we have debt and we either clear it using work bonus or re-mortgage when our mortgage deal expires and borrowing a few more £k to clear it and now these things aren't an option anymore I really scared that we will continue to run up debt or not save and be in a really bad way in the future.

I'm going to use the next couple of posts to be able to keep a running total of debts/money.

Thanks for reading, sorry if my ramblings aren't very interesting!:):o

SAHMto2boys

Only one debt plus mortgage. We transfered everything we had from a very high APR card (about £1000) to a 0% card and used the card to purchase a car. Reason we brought a car was the old one died in a big way and needed a couple of grand spending on it so no longer viable to keep and run and we could clear the card quicker than if we had taken a loan out. We have fallen into a massive trap as our mortgage deal ended putting us onto 1% above base rate so we have been clearing the card off with the surplus cash each month like we had planned BUT spending on it like mad too. How stupid! So the 0% ends in September so the card MUST be cleared by then.

Feb = £7841.97 and at last bill was £6467.91/paid off £1825.00 but think I've added £290/waiting for bill to confirm but think total is around £4932.91
Current Balance (May) £5088.91

Hoping once DH gets paid at the end of this month will be able to pay off £1500 but they means going back to no spending again. Thats fine and I don't mind doing it, its actually getting my head around and stopping spending thats the problem - thats where I hope this diary comes in. I have been adding about £1000 a month onto the card and then paying it off but the never actually clearing the original figure down much. Now the mortgage rate is low we've been using the money to do up the garden, buy things for the house and basically living beyond our means and a bit wild for a few months - writing all this down has made me feel really embrassed and disgusted with myself I have wasted so much money.

SAHMto2boys

I saw this idea on someone elses diary and thought it was clever so I hope they don't mind me using it!:o


Credit where credit is due! :j
Positive things I've done to reduce the debt

MAY: Sold some gold, made £45 on Ebay (hope to rise), joined Value Opinions and completed some surveys, made £60 at Car Boot, as of 9th stopped adding to the card!

SAHMto2boys

Looking at the paying off figure I've done for this month I don't think I've done badly there but it has drained my accounts to do it. I just need to basically stop spending again, I feel like cutting the stupid thing up but I too scared too. Keep telling myself thats the last big thing brought but then seem to spend more.

I have sold some stuff on Ebay and waiting for Paypal to send the cash over then I think I've got about £45 for food and spends till next payday. The freezer is quite well stocked with yellow stickered meat so it should be okay. We have both decided to cut right down on booze (another issue that I'm sure I'll bring up later) so that should be a huge help, I can easily spend £20 per week on wine alone.

I really need to push and do some NSD, I seem to need to spend something everyday no matter how small it is. Only spends today will be on a card and gift for a birthday but this budgetted for. Right enough waffle, the babys awake.

SAHM

joshua_blue

Hi SAHM

You don't seem to have high unsecured debts but a big mortgage..... my situ is the opposite.... but either way a huge amount has to be paid every month whether it be on mortgages, loans, credit cards or whatever... the net result being that for most on here there's not very much left at the end of the month

In hindsight, my problem has not been OTT luxurious spending but "death by 1,000 cuts"... £2 here, £3 there, tenner for this, £20 for that...which can add up to several hundred every month

I heard a clever person say recently something like... "When times are tight the most important thing is not to spend... even if something seems like a bargain & it appears to be a sensible purchase"

Hopefully you manage to achieve your aims & best of luck

SAHMto2boys

Thanks for your reply J.Blue. I was reading your diary too yesterday so will be following with interest, good luck!

You're so right - there is just not much left at the end of the month! I too am another little spender - things like going into Primark and spending cos its only £2 but then getting to the till and its actually cost £30 for everything, really lazy things like buying a sandwich because I haven't time to make one and then stand at home and make my DS one - stupid, stupid! I honestly don not know where my cash goes when I've been to the cashpoint.


Well just been for a walk with the pram to buy the birthday stuff so saved a bit in petrol (hey, every little helps!) and resisted buying anything else.

SAHMto2boys

Am having a major worry day today. Just about the state of our money, what happens when the interest rate goes threw the roof??? We will lose our home. Simple.

Oh god, I feel sick.

In other news I need to nip for some milk but can not spend anything else. DS came home with a letter about a trip so I need to get the money together for that, then tomorrow swimming needs to paid again and on Monday gymnastics fees are due too. Hmmm. Hopefully I can pay them with a cheque and then take them out of next months budget, I have £1000 in a savings account that is ear -marked for some dental treatment I will need in the future so I can borrow some money from there until payday but must replace it.

Think I will work out next months in and outs now and see where I might be able to cut back. Just been checked the bank and I'm now down to £15 for food till payday so hope my Paypal £20 hurries up. Have taken some yellow stickered stuff out for tea. I need to do have a sort and see whats actually in the freezers I can make some meals from.

Planning do a car boot sale tomorrow - the weather should be good, have babysitters arranged and some change. Need to have a good root through the garage when DH is home tonight and see what else can go, think it will be easier to load the car at the same time.

Will report back later, hopefully with some news that June won't be as bad as I'm fearing.

Jo_R_2

Wish I could advise about the mortgage situ, unfortunately my only real knowledge of them is what I've read on here and not having my own.

What is your current mortgage situation - ie you say your deal ended and the rate is currently 1% above the base rate, how does that work as in how long you are tied to that for?

Don't know if you have sat down and done this but have you worked out a longer-term plan for your money based on the knowledge you have now? Obviously there is the risk interest rates could go up, but rather if you worked out how things can realistically go over the next 12 months with what you have now, overpayments you know you can make, areas you know you can cut back on, months where say DH might have less pay, or alternatively a bonus if that applies, months where you can predict individual expenses (such as Christmas, particular birthdays), and factor all this in.

Then you have in black and white a definite situation, and know what you have to play with so to speak. I always feel better knowing things as definitely as I can - if I can accommodate things then good, if not then I can plan ahead and do 'damage limitation' where possible.

My initial thought (and do bear in mind I haven't had to deal with this myself so just throwing things out there) is could you put away some of the surplus you do have as a 'just in case' for if the interest rates do rise, as a buffer so to speak? Could you balance this with overpaying on the cc maybe?

SAHMto2boys

Hiya Jo R, thanks so much for taking time to read and reply to my little thread

What is your current mortgage situation - ie you say your deal ended and the rate is currently 1% above the base rate, how does that work as in how long you are tied to that for?

We took the mortgage out on a fixed rate deal two years ago and when that expired it went to the companies standard terms which is 1% above base rate. We aren't tied in any longer and of course it will go when they start putting interest rates up but looking at the other deals avaiable nothing can touch what we have, think we will have to start looking for another fixed rate deal when the rates start going up.

Thanks for your advice, DH and I sat down last night and made some long term plans, I feel so much more in control now we've had a chat and got some plans in place. I need to realise that when the interest rates start going up it will be gradual and not straight up to 10% or really high. So (in theory) I should be used to having less and less each month.

I do a really big budget every month so I should know where everything is going and am good at getting the bills paid and saving for birthday/xmas but its the surplus that just goes so I need to keep a better check on this. Looking back at old budgets from two years ago I was doing the food and household shop (incl nappies) for £200/£250 per month, now I'm giving myself £300 and then having the child benefit on top:eek: That needs reducing.

Right, have loads more to put down but will have to pop back later, hopefully I'll have good news from the car boot. Fingers crossed the sun keeps shining.

Have a good day xx

Pinky15

Just wanted to pop by and say hello too!!
Keep posting everyone is very supportive!! :)

Jo_R_2

How did the car boot go?