Diary 2011: Getting where I wanna be!

moneypuddle · 15 February 2011 at 2:27PM

Hello all

I’ve seen a few people keep a diary online and just thought I would try the same thing, since I’m desperately trying to keep on top of my finances and get saving at the minute for a new house. Don’t worry about commenting or replying – just doing it for myself really

Oh but if you do spot anything that is glaringly obviously wrong with my finances please do let me know! Sometimes its hard to recognise issues when you're stuck in the middle on them

Just to give you a bit of info about my situation. I’m 25, female and own a house with my ex partner which is currently up on the market. Its been up for sale for about 6 months at the minute, and we’re very hopeful for a sale very soon. As soon as it sells, I intend to buy a home with my new partner. I am hoping to come out of the house sale with around £20k but houses in my area are notoriously expensive so I am looking to need a sizeable deposit for the next one plus some money put away for all the furniture etc that I will need. At the moment, I don’t live in the house I’m selling (as it was a renovation project and has been left as a ‘show home’), but live half the time between my parents house and my boyfriends flat, which is ok for now, but an desperate for my own home.

My income: Really does vary each month. Basic £18,500k, Guaranteed Annual Bonus of £3k, Additional Bonus of anywhere between £100 and £500 per month
My partner’s income: Again pay varies massively as he works in sales and is commission based, but averages around £1200/month. No savings, but contributes to my ISA each month.

My basic outgoings:
£347 - My half of the mortgage & bills on my existing house
£60 - Credit Card Repayment: (on 0% until may, which I intend to switch)
£45 – Redundancy cover (just in case I lose my job, I an guaranteed I think £1500/month for up to 12 months whilst searching for another job)
£36 – Car insurance (High premiums as my cars has alterations – spoiler and alloy wheels – which ironically I couldn’t give two hoots about and didn’t put there myself but apparently they make it more desirable to thieves)
£18 – Phone Bill (maximum – usually more like £15)
£10 – Specsavers (contact lenses)
£100 – Fuel (maximum)
(I don’t buy food etc as either my family or boyfriend feed me)
So total basic outgoings are approx £615

Plus each month I always save
£30 for xmas
£58 for car servicing/costs etc
Taking my outgoings around £700

I also owe £1800 on a credit card (nationwide), which I'm repaying monthly.

I was absolutely shocked to learn that I was spending around £1300-£1400 a month though, meaning the rest (£700!)was literally frittered away on clothes, cosmetics, going out, birthday presents, shoes etc. That was most certainly my lightbulb moment and I’m very grateful for it. But slightly gutted at how wasteful I’ve been

My boyfriend and I have now developed a series of challenges which we’re trying out each month, so for example:
* Justify in January – We had to justify every single penny we spent. Really made me stop and think about my purchases!
* Frugal February – In the midst of this at the moment. Just really trying to cut back on everything. Though since it’s a short month (by what 3 days?!?) it would be a good time to try it!
* Miserly March – Next month, aside from my basic outgoings (£700) every other penny I earn will be put to savings (I guess this to be around £850 in march), and then my boyfriend will pay for EVERYTHING for the month out of his wages. Am really hopeful this will work and since I will lose access to ready cash, I should stop being so distracted by shoes, clothes, make up etc

Anyway just failed hugely by leaving my lunch at home today and having to buy a Tesco chicken pasta pot! Gutted! :cool:

Savings at the minute stand as follows:
Car, xmas etc : £118
House Deposit savings: £1,467
(Credit card balance: -£1,800)

moneysavermum_2 · 15 February 2011 at 2:35PM

House Deposit savings: £1,467
(Credit card balance: -£1,800) dont understand why you have all those savings and a credit card balance. Pay off your card first then save

moneypuddle · 15 February 2011 at 3:01PM

Hello! I'm doing it this way because I actually need access to cash in a few months time when I need to pay out for a deposit on a new house. The credit card is on 0% anyway so isn't costing me anything

LittleBoots · 15 February 2011 at 3:02PM

Hiya, welcome to diary land, love your monthly challenges, good to have a supportive OH too

You will probably be advised to pay off exisitng debts with your savings. Thats what I did in the end, it took me months to finally transfer them over as I loved having that little nest but it was ultimately the best decision.

Good luck with your journey

LB