Growing up (at last)....

rising_from_the_ashes

Hello all, if you've popped in you're very welcome but you may be bored to the back teeth as I really just wanted to put a few words down to inspire me to keep slogging away and try to be more "grown up" with money.

A bit of background ........

Well, I still have a 3 in my age (but only just) and have been in debt most of my adult life.

I've not been a big over-spender on non-essentials (although there was the odd holiday or bit of furniture), my debt was mainly down to being single and the fact that the costs of running a house/living were more than my income.

I did try to get council housing but the waiting lists were about 10 years so had no choice but to rent privately and pay extortionate amounts for this!

At its worst, I owed over £17K:eek: - it's now down to around £900 (overdraft) but I haven't got anywhere in reducing that in the past couple of months - the main reason is that I've started budgeting properly for the 1st time in my life!

Budgeting is my big downfall - I really don't have a huge amount left after everything is paid and I tried to put money aside in previous years but always had to raid it when something broke.

The final straw came in January - car service, tax and breakdown cover all due and resulted in a £200 hit to Jan's salary:eek: - that's when I decided that enough was enough.

The new me ........

Through advice on MSE, I've set up several "pots" from my bank account and have faithfully put money aside each month. This seems to be working well as it's a relatively small amount to each one and as there are several small balances (rather than one account with a fair bit in), there hasn't been any temptation to raid them (yet)!:o and I really want to stick to this.

I'm trying to cut down on things generally: groceries, shopping around for best deals etc and have joined several "challenges" which are great at inspiring me on my long journey.

I'm also following Martin's tip of putting as much as possible on the cc every month (to avoid debit & cash withdrawals from my bank account) and paying this in full each month.

Things are still tough - just paid my house insurance in one go (for the 1st time ever:D) so there will be a bit hit on May's pay - but I saved £60 in doing this.

Fingers crossed that if I keep at the budgeting/pots, things will be a lot easier next year!



If you're still with me, thanks for reading and any tips are welcome/appreciated!

DreamerV

I think you've done amazingly. I'm lucky enough not to have been in debt, but I'm struggling not to spend wildly (from the savings I built up working for 3 yrs and through rent-a-room) as I'm a late 20s returned to uni as a mature students with teens all round me spending their parents money. It's stories from people who've been in debt that help remind me that it is important to budget, and it's very easy to slip the other way (especially now I'm paying fees with no income, and only have a 5k loan and nothing else to live on). So careful planning again it is! Thanks for the inspiration Keep it up!

rising_from_the_ashes

Thanks Dreamer, it's easy to forget that I have come a long way and things should improve drastically if I can crack this "budgeting lark" on the head once and for all!

Good luck with the Uni course - I've just completed my 2nd year (may have to take a break before doing Year 3 due to funding issues as don't particularly want to get into more debt so I'd rather wait a year and try to save up the fees) and have a higher qualification than I did before - it'll def be worth it!

rising_from_the_ashes

Just had the dog out for a walk and was thinking about what Dreamer had said about coming a long way .......

So..... rewind back to

2004

• Debt = 17k Loan, credit cards, HP, overdraft
• Struggling to meet minimum payments
• Many accounts defaulted
• Living on the payday loan roundabout for food etc

2005 - 10

• Worked 2nd job & put all the money to debts
• Skint, tired & fed up!

2011

• No loans or HP, CC paid in full each month - a bit to go on the OD
• All defaults now cleared from credit file (6 years is a LONG time)!
• Still struggling but things are def better
• Starting to budget properly

Things are looking up - be positive!

rising_from_the_ashes

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 12
Council tax............................. 95
Electricity............................. 33
Gas..................................... 33
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 5
TV Licence.............................. 12.12
Satellite/Cable TV...................... 19.5
Internet Services....................... 9.99
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 2.5
Car Insurance........................... 20
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 20
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 20
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 5
Holiday................................. 0
Emergency fund.......................... 20
Breakdown cover ........................ 4
Pets - litter........................... 16
Pets - food............................. 20
Pets - medication....................... 14
Total monthly expenses.................. 1046.11


Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 91000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 75000....(350)......3.6
Total secured & HP debts...... 75000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
OD.............................900.......20........0
Total unsecured debts..........900.......20........-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,046.11
Available for debt repayments........... 153.89
Monthly UNsecured debt repayments....... 20
Amount left after debt repayments....... 133.89

Personal Balance Sheet Summary
Total assets (things you own)........... 91,000
Total HP & Secured debt................. -75,000
Total Unsecured debt.................... -900
Net Assets.............................. 15,100

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

rising_from_the_ashes

So, just back from a couple of house viewings ..... mixed views.

The 1st was a new build and it was lovely but teeeeennnnnny and had a postage stamp for a garden.

The 2nd was ex LA and a lovely house but again a really small garden and there was a kids play-park right outside:eek:. It was a quiet street though so not too bad.

May have to give this serious consideration. Yes I like where I live but it does cost a lot (though it's obviously "doable" from my SOA).

No spends today :j - aiming for 3 in a row as back at work tomorrow:(: am relatively organised, have bits for lunches & shouldn't need fuel until Weds.

Must go & sort out stuff for work tomorrow and iron - I've had a great hol, 2 weeks of sun, lounging around reading in the garden, lovely walks with the dog and generally being lazy!

rising_from_the_ashes

Well, 1st day back at work, better than I thought.

Carping myself just now as has been thundering - managed to find both cats and bring them in.

Did a quick mortgage payment calculator at lunchtime, if I could lower my mortgage by £20k it would save be around £100/month, £30k would be £150 so def worth looking into.

If only I can find somewhere with a decent size garden!

NSD! (must go & post on the thread) - did take £20 out of bank. Going to try to make it last 10 days (non-essentials) and see how it goes!

LittleBoots

Hiya

Well done so far, long slog but worth it eh?

rising_from_the_ashes

Thanks LittleBoots - I'm getting there!


Well, 3rd NSD in a row!:j (won't be tomorrow) - the £20 is still intact!

Think I'm going to have to change Mr B's food again - p'd off a bit as it's such a good quality food for a great price (Skinners Duck & Rice) but his allergy's playing up again. I've got the wheat one licked and can only think it's the duck - seems strange but wee Mol was allergic to red meat so guess it's possible.

So, off to PAH tomorrow to get some Wainwrights - he was fine on that before but £10/bag more expensive (+ £8 fuel). Not a frugal day going to be had!

Feeling more positive about things and if I can just get rid of the OD then I know I can live within my salary.

Been hunting through my cook books as getting bored with the same things over and over - cupboards quite well stocked & 5 meals still in freezer. Sure I can last to the end of the month with just fruit & veg and milk etc.

rising_from_the_ashes

Well, been a few days since I've said anything so ... here goes!

Went to view another house yesterday and really the 1st one I think I could actually have lived in! Really nice & the street was the last one in town with farmer's fields only 2 houses along - great for the cats and also walking the dog.

Now, if only, I wasn't tied into my mortgage till the end of the year and there was some hope of me actually selling mine. Still 4 for sale in my street (2 big, 2 small). The small ones have been on for AGES and the big ones since about March - totally different from a couple of years ago when they went in a couple of weeks and very depressing.

Just had a look and there's now very free houses with "open viewing" which they all used to have on a Sun - guess not surprising if they're taking months to sell. Have found one in a town I wouldn't usually consider but it's a nice big house and I may go and have a look as don't really know the place that well (it may be OK). Good excuse to take the dog to the beach on the way back!

Had a good frugal day yesterday - DM got Whiskas pouches for me at Mr M (3 for £6 - usually around £3.70 each) so have 6 boxes waiting to collect. She's trying to get me another 3 today which would do me over 3 months so that'd be great.

Got the cc bill yest - really need to sit down and look through it as it's extortionate (and the house ins premium isn't even on it - must've just missed the cut-off). I think the 2 weeks hols had something to do with it - wasn't "silly" but used a lot more fuel than normal and did buy a couple of tops and some new underwear (but 1st clothes spend this year).

Need to be extra careful this cc bill period as house ins will def hit next month's bill.

Managed to go to Mr T with a £3 off £20 shop voucher and a £20 note - and come away with change!

So, lesson of the week - need to buckle down and be extra careful.