Lightbulb Moment: Before it's too late

adam_devon

My income goes up about £300-400 more than is on the SOA, that's right. In addition sometimes I get paid 2 months in one go, having prior to that been three months in arrears on petrol.

I must get into habit if putting some of this money away for car costs, because with this many miles something is bound to go wrong.

I now have iPhone app for tracking expenses. I also manage my fiancees finances as well, so I'm in the driving seat, and therefore want to make sure I'm 'driving responsibly".

Superbiatch

adam_devon wrote: »

My income goes up about £300-400 more than is on the SOA, that's right. In addition sometimes I get paid 2 months in one go, having prior to that been three months in arrears on petrol.

I must get into habit if putting some of this money away for car costs, because with this many miles something is bound to go wrong.

OK, so in that case your 'disposable income' is almost £800 a month which you can't account for. I'd definitely suggest a spending diary.

My OH does a similar job to yours and the coffees on the motorway, magazines, lunch on the run etc used to eat into hundreds each month. Something to consider ....

FireWyrm

Superbiatch wrote: »

OK, so in that case your 'disposable income' is almost £800 a month which you can't account for. I'd definitely suggest a spending diary

Holy crap! :eek:

Start paying attention to the road and right now...:rotfl:

Good luck and let us know how you get on. Remember, Creation first, then the Overdraft, then the credit cards.

Remember to keep your OH informed. I do monthly reconcilliations with the bank and then report results to the OH. S/he needs to know that something is being done and see it working at the same time. I know it's tough to have to answer to your partner for every little thing spent, but you just can't get a grip until one person has the purse.

beachie

FireWyrm wrote: »

Good luck and let us know how you get on. Remember, Creation first, then the Overdraft, then the credit cards.

I am going to disagree with you.

Creation is currently 0% until next year. All he needs to do is setup a direct debit or standing order for 900 / 7 = £128 a month to clear it.

Whether paying the Overdraft next is also debatable. If he is in credit for 15 days and then into the overdraft for the last 15 then it could work out that he is paying less interest even if the rate is higher.

If the SOA is true and you are on a 0% overdraft then the credit cards would come next paying any money you have left over after paying the above.

FireWyrm

Can you get 0% overdrafts because i thought that was a typo. Besides, I'm betting he hits overdraft every month which means he's trying to service debts with bad money. If the overdraft is smallish, all he has to do is pull it up by 600 in month one, £600 in month two and then he can turn his attention to Creation knowing that he's in credit every month from now on. Apportion £128 to Creation and the rest to credit cards aiming for a final payment on Creation with the lump sum in February before the rate skyrockets. Two birds with one stone. Overdraft gone for good, creation dead and made a go at the credit cards into the bargain. This of course presupposes that a budget is created and stuck to, and our assumptions about spending habits are justified.

adam_devon

Assumptions about spending are correct. I could save (pay off) a significant amount each month if I really got a grip.

I think my overdraft is 0%, I don't recall seeing fees, or at least not much if they are. Having said that I dont open paper statements or check regularly online because it's just depressing. It would be lovely not to be living in my overdraft every month!

So I'm going to record everything I spend for the next month, until July 25th - I get paid on 25th. Ill pay something off creation on the 25th - not sure how much.

FireWyrm

In the words of Yoda...."Do, or Do not, there is no try"

Much respect for even starting, most don't even get as far as you have. Let us know how you get on. It's always good to hear a success story...makes us all feel better aboutmour own situations.

Superbiatch

adam_devon wrote: »

So I'm going to record everything I spend for the next month, until July 25th - I get paid on 25th. Ill pay something off creation on the 25th - not sure how much.

Looking forward to your update next month, I think you're in for quite a shock