Life and financial plans - any useful hints and tips?

Jo_R_2

Hi all

We are starting in earnest to blitz our remaining debts and save for a house deposit.

I first came on here a few years ago, and have steadily chipped away at my debts, going from something around 8k, to now around 2k (I need to confirm the actual figure but it's now about that.)

Circumstances have changed dramatically since I first started posting, and suffice to say we are now more motivated than ever to get rid of the debts and start saving, at a time when we are probably LEAST able to really make headway!

I got made redundant nearly three years ago and have been a SAHM since, and had two more children. We would LOVE to be able to buy somewhere, but this is dependent on a) being able to save enough for a reasonable deposit, and b) me going back to work to be able to more easily facilitate "a)"!

I wanted to ask who has worked on doing a comprehensively detailed "plan" of how to get to where they want to be? I don't just mean working out what money goes to what debt, but going into more detail. I am thinking also of a plan over the next year/two/three, to eb able to project figures, and also to work on steps towards getting back into work and study and what needs to be done when.

How has anyone gone about this and do you have any examples of stuff that has been really helpful?

Mikeone

We're doing this sort of thing at the moment. I'm getting into the home straight as a DFW and we've just had a baby daughter, so I'm very much in the mode of planning for the future.

Don't really have any specific tips, but I'm doing it by being realistic about the targets (3-4yrs of saving after the debts are gone) and by constantly checking and revising the plans to fit our precise financial situation as things change.

On a wider note, the fact that I am able to make plans at all is a direct outcome of my experience as a DFW. I was sorting this month's bills out the other day (and enjoying it!) and thinking how much better things are now. I used to think that ignoring money issues was a form of freedom, but it wasn't. I know exactly how much money I have got, what is coming in and what is going out. I no longer fear window envelopes or cross my fingers when I use a cashpoint.

It is incredibly liberating and I can think of no better position from which to make a secure financial future.

Best of luck with achieving your goals!

lvm

Hey Jo,

Congrats on getting rid of loads of your debt.

Not sure if this is what you mean but I had my LBM in December just gone and started facing into all my debt issues in January. Before then I had no idea exactly what I owed and to whom.

So I decided I needed a plan to focus on and I would like to move house when I can (or at least just buy another flat and rent current one out) so I created a 4 year plan (my 4/5 defaults will disappear from my credit file in 3-3 1/2 years so 4 seemed sensible). My 4 year plan has my 2 bank account and my ISA on there and show all money coming in and all money going out and carries balances forward after the end of the year. It's not really a final plan or anything as it only has the set figures for salary and constant bills so if I buy food/clothes etc I need to add this in but I can easily put some forecast numbers in and I'll know how much I'd have at end of year if I allowed myself so much on luxuries etc. It's not a fancy spreadsheet or anything - just a simple one which includes outstanding debt as well and what % I have left.

I would recommend that if you want to move soon, you decide exactly how much you would need for deposit, fees, etc and put a plan together - it really gives you motivation to see you getting nearer and nearer your goal and you'll end up trying to get there sooner than you'd planned.

Good luck! x

stiltwalker

Hi there,

We are in a similar position, OH's big debt almost gone and only 2 small debts remaining. We live a very frugal life on a low income and I too am a SAHM with DD nearly 2 and a 7 month bump. I have started an OU degree in childhood and youth studies with a view to working in the support side of education once the kids are both at school which will be a bigger wage than what I did previously and also hopefully mainly term time hours to cut down on childcare costs. We're going to spend the next few years rebuilding OH's credit rating and as our income improves start saving big style. It's a long term plan, no figures in it as yet just determination.

God Luck with your plan