Bright light, bright light!!

freshair_2

I am inspired I have decided that I will knit something in the next 3 months, i once knitted a very small rabbit, that was a long, long time ago think I was about the same age as DS is now.

Sure ma will have some knitting stuff somewhere still, sure she used to knit fingers crossed that she will show me how to .... well maybe sure

Off to my next catch up, I think I am going to be on here all night

Knitting_Nora

Marty82 wrote: »

Looking at your signature it appears that you've managed to pay off 10K a year for the last five years so a big well done on that. It's quite inspiring but how have you managed to do so well? Any hints and tips for someone just starting on on his debt free wannabe diary?

Hi Marty - good to have you aboard, and thanks for your kind words.


To be honest, my debt has actually gone up and down like a yoyo in that time, and there there hasn't always been an awful lot of consistent learning! But here's what I know has worked for me:

• First up - be honest with yourself about your situation.

I wasn't - right up until December '06 when the lady on the phone at Egg said no to extending my loan again. She was a total angel, and gently asked whether I knew how much I owed in total - truth be told, I didn't...but I was managing my payments so didn't really care...I just wanted more money to spend, and it didn't compute that my debt repayments had a significant impact on my spending capacity each month.

But then she took the time to go through everything she could see from the credit search. Not just what I had with Egg, but everyone else. It was like she held up a mirror, and I couldn't run away. She and I worked out a few 'next steps' for me which included speaking with my bank.

If I'm honest, it wasn't until I put down the phone, cried a lot and threw up a couple of times, that I really started to understand what a mess I'd got myself into. I didn't really face up to the emotional spending, and wasteful living, for quite a while longer - but I did understand, quickly, that if I couldn't reduce my spending, I needed to earn more.


I've been hugely fortunate to have a career where, by working really hard and developing my skillset etc, I've been able to pass boards for promotion. This has helped in some ways, (a little more money coming in) but created problems in others (more responsibility, lots and lots of unpaid overtime, lots of stress...and an emotional-spending habit = more debt). I also looked to up my income through the craft work where I could - though obviously I should mention the tax man at this point!:)

• Set up all direct debits, standing orders etc to come out of your bank account just after payday.

For example, I get paid the last working day of the month, and everything comes out on the 5th or 6th of the month. That way, early in the month I know all my bills and anything which may land me in serious trouble for defaulting is paid for. The rest is 'mine' for food, petrol, skipping through the shops with etc.

• Pay more where you can on repaying your debts, and less on everything else.

My loan repayments on L1 (below) are about £25 more than the actual requirement. It doesn't sound like much given the size of the loan repayments - but it adds up, and it means the loan is being repaid a little early, despite having had to take a couple of repayment breaks over the last few years (told you the debt has gone up and down!).

And I've swapped to things like value groceries (it's a carrot for goodness sake - why pay four times as much for it?!), and challenged BT for a cheaper phone, broadband and tv package (if you can go outside of BT, even better - but I'm on a contract at the mo).

• Don't be too proud/scared to make additional payments on your cards - no matter how small.

This is a more recent lesson from the MSE-verse. I used to try and save big lump sums, but then I'd get all excited about having money in the savings account and spend it! Now whenever it looks like I've got a 'spare' fiver or whatever, I transfer it over. I call it my 'beat the snowball calculator' approach!

• Be clear with your friends/family that you can't always afford to live at the same level as they do.

I have friends who earn two or three times what I do, and others who learn half. We're the closest group you can imagine, but we never discussed money. It wasn't until I was having a bit of a meltdown one night that the others started to admit they were having trouble too - doesn't matter how much you earn if you live to your means.


We'd all got caught up in an unsustainable lifestyle - and it wasn't even one we were enjoying any more because we were worrying about how much each cocktail evening, cinema trip etc was going to cost us. Once we became a little more open, it was easier to say "sorry, can't make that night I'm broke", or "can't afford to go out, but I'll do a pot of chilli if you lot bring the booze". Even now, we don't discuss money a lot, but my friends often come to me for a bit of advice or a friendly ear now they know - and you wouldn't believe how often I direct them to areas of this website.

• Remember how to have fun without spending money.

I don't have kids, but whenever I'm around my friend's kids I'm fascinated by how much fun they have with the cheapest of things. Personally, every time I find myself falling back on spending as a fun passtime, I demand access to a friend's animals - pretty hard to feel crappy about your finances when you're fending off the attentions of a huge dog, plus getting out and about is good for you - and free!

• Have a change pot - shove in the change in your pocket whenever you think about it, and don't touch it unless you are literally starving or the rent's due.

I did this long before I signed up with MSE, and it fast became my little way of saving for Christmas. Last year somehow my change pot had bred over £200....mostly in 20p pieces!

• Don't be too proud/scared to ask for help.

Signing up to MSE via this diary was the best thing I could do for my finances. It took me quite a while to do the SOA (and more the second time as I'd mucked up the first one), and quite a lot of chocolate before I shared it with you lot. But it was so liberating that my only regret is that I didn't do it years ago.


Plus, I'm finding that by becoming more engaged with MSE (I lurked for ages and ages), it's having an interesting effect on my spending habits. Yes, I still spend on things which I probably shouldn't - but now I know where my money goes, and I'm discovering that it can be nerdishly (is too a word) exciting and fun to watch the pennies go down on loans and credit cards! So when I had the overtime payment last month (the first ever!), where previously I would have spent it all in a week or two, it went on clearing the overdraft and a big chunk on one of the credit cards.

• When the walls are closing in, sit down, take a deep breath and just decide what the next step needs to be. Just the first one. And do it asap.

Every time the walls close in on me - irrespective of whether it's because of work, money, someone annoying the hell out of me (happens a lot!), it's that first step which, to me, is the biggest obstacle to sorting it. Do the first step as soon as you can, and the rest really will follow - I promise.


And finally:

• That this too shall pass - but it's up to me how it happens.

I've learned that no matter what state I'm in, what troubles I have, what company is banging on the door for their money, it'll pass - and I have the choice on how it happens.

My choices aren't always pleasant - in the early days, there were a few times when it came very close to "pay rent, or eat throughout the month". I learned that life does go on without the tv or a phone, and even (shockingly) without a constant source of chocolate.

Though things are much, much better now, I still have to maintain a balancing act. This is where the honesty thing comes back round to help - it's so much easier to say to someone that you can't do something, go somewhere or whatever because you're saving for something else, or you're paying off a debt.

Friends will become bored with this after a while (or uncomfortable because you might just be making them think about their own finances), so don't whine about having no money - make constructive suggestions instead....this evening a friend asked if I fancied visiting the new John Lewis that's opened near us. Combines three of my fav things - John Lewis, the John Lewis cafe, and Christmas stuff to skip through....but I'm determined that catch up to that pesky Freeby on her NSD achievements, so don't really want to go shopping just because the place is there. Rather than say that, I explained that I really fancied more of a mooch around the house (which I do), and we've decided on a morning of crafting and cake on the sofa instead.

I've no doubt there's more - for example, I find my MSE signature stating my position is a huge motivator for me; I've also discovered that by digging out all of the toiletries I have secreted around the house I apparently could start Boots on my own....massive reduction in my routine shopping bills now I know what I've already got...same goes for cleaning products and food (though apparently not chocolate...duplications of which don't last long enough around here to be an issue;)).

I also want to be clear that I'm not any kind of expert at paying off debt or saving money - I'm just muddling my way through like everyone else, and learning lots along the way.

It's been a long post - if you're still awake at this point, use what you find helpful, and bin the rest!

Nora.

Knitting_Nora

freshair wrote: »

I am inspired I have decided that I will knit something in the next 3 months, i once knitted a very small rabbit, that was a long, long time ago think I was about the same age as DS is now.

Sure ma will have some knitting stuff somewhere still, sure she used to knit fingers crossed that she will show me how to .... well maybe sure

Off to my next catch up, I think I am going to be on here all night

I often get caught up in the forum threads - so much to learn, comment on, grump about....;)

Good luck with the knitting - and if your mum can't teach you, then there are loads of tutorials etc on youtube, and free advice sheets from places like Hobbycraft....will you come back and show us what you make?

Nora.

ZTD

#254 - brilliant post.

scubaangel

ZTD wrote: »

#254 - brilliant post.

Agreed, almost made me go back to review my finances - and I have a spreadsheet that tells me what money is where already!

Marty82

Nora,

Wow, that was quite a post! Thanks for opening up so much in answer to my question; what an inspiring person you are.

I really don't know what to say in reply but just wanted to say thanks and to let you know I have read it all and then read it all again. I find it all helpful and will use your advice as my journey continues. I think my problem at the moment is that despite knowing the figures of all my debts I can't see them altogether, what I need to do in which order and when and how. Does that make sense? I have it all written down but I can't always get my head around it.

It sounds like you have a lot to thank the Egg lady for; makes me wish one of my debts was with them! Lol.

Happy knitting.

ps You should sell your knitted items online as they are lovely.

Knitting_Nora

Marty82 wrote: »

what an inspiring person you are.

*blushes* promise you, I'm not - I'm just a woman on a mission to ensure she never has to give up her chocolate supply again.....;)

I think my problem at the moment is that despite knowing the figures of all my debts I can't see them altogether, what I need to do in which order and when and how. Does that make sense? I have it all written down but I can't always get my head around it.

Makes huge sense to me. It'll come eventually - promise. But there are tools like the snowball calculator (www.whatsthecost.com/snowball.aspx), and the MSE demotivator http://www.moneysavingexpert.com/protect/demotivator/ which can jog the vision a bit while you're waiting....

You mention you've just started your own diary - will take a wander over....pop the kettle on!

Nora.

Marty82

Knitting_Nora wrote: »

*blushes* promise you, I'm not - I'm just a woman on a mission to ensure she never has to give up her chocolate supply again.....;)

Makes huge sense to me. It'll come eventually - promise. But there are tools like the snowball calculator (www.whatsthecost.com/snowball.aspx), and the MSE demotivator http://www.moneysavingexpert.com/protect/demotivator/ which can jog the vision a bit while you're waiting....

You mention you've just started your own diary - will take a wander over....pop the kettle on!

Nora.

Tea or coffee? Milk and sugar? Chocolate on the side? Lol.

Talking of kettles, I decided to dig out my Tefal Quick Cup rather than boil the kettle each time I fancy a cuppa as I'm hoping it'll save money as I always boil too much water.

As far as I know the interest and charges are frozen on all my debts so I suppose it'll just be priority debts first and then the rest. Spoke to someone from the CCCS today who has given me things to do but still feel rather confused as to what I need to do next. You'll see what I mean in my diary but be warned that my posts tend to be lengthy!

freebyfifty

ZTD wrote: »

#254 - brilliant post.

Hear hear, what a fantastic, inspiring post.

Knitting_Nora wrote: »

....but I'm determined that catch up to that pesky Freeby on her NSD achievements,

And I got a mention!!!! :rotfl:

Lemon_Tree

Knitting_Nora wrote: »

Hi Marty - good to have you aboard, and thanks for your kind words.



To be honest, my debt has actually gone up and down like a yoyo in that time, and there there hasn't always been an awful lot of consistent learning! But here's what I know has worked for me:

• First up - be honest with yourself about your situation.

I wasn't - right up until December '06 when the lady on the phone at Egg said no to extending my loan again. She was a total angel, and gently asked whether I knew how much I owed in total - truth be told, I didn't...but I was managing my payments so didn't really care...I just wanted more money to spend, and it didn't compute that my debt repayments had a significant impact on my spending capacity each month.

But then she took the time to go through everything she could see from the credit search. Not just what I had with Egg, but everyone else. It was like she held up a mirror, and I couldn't run away. She and I worked out a few 'next steps' for me which included speaking with my bank.

If I'm honest, it wasn't until I put down the phone, cried a lot and threw up a couple of times, that I really started to understand what a mess I'd got myself into. I didn't really face up to the emotional spending, and wasteful living, for quite a while longer - but I did understand, quickly, that if I couldn't reduce my spending, I needed to earn more.



I've been hugely fortunate to have a career where, by working really hard and developing my skillset etc, I've been able to pass boards for promotion. This has helped in some ways, (a little more money coming in) but created problems in others (more responsibility, lots and lots of unpaid overtime, lots of stress...and an emotional-spending habit = more debt). I also looked to up my income through the craft work where I could - though obviously I should mention the tax man at this point!:)

• Set up all direct debits, standing orders etc to come out of your bank account just after payday.

For example, I get paid the last working day of the month, and everything comes out on the 5th or 6th of the month. That way, early in the month I know all my bills and anything which may land me in serious trouble for defaulting is paid for. The rest is 'mine' for food, petrol, skipping through the shops with etc.

• Pay more where you can on repaying your debts, and less on everything else.

My loan repayments on L1 (below) are about £25 more than the actual requirement. It doesn't sound like much given the size of the loan repayments - but it adds up, and it means the loan is being repaid a little early, despite having had to take a couple of repayment breaks over the last few years (told you the debt has gone up and down!).


And I've swapped to things like value groceries (it's a carrot for goodness sake - why pay four times as much for it?!), and challenged BT for a cheaper phone, broadband and tv package (if you can go outside of BT, even better - but I'm on a contract at the mo).

• Don't be too proud/scared to make additional payments on your cards - no matter how small.

This is a more recent lesson from the MSE-verse. I used to try and save big lump sums, but then I'd get all excited about having money in the savings account and spend it! Now whenever it looks like I've got a 'spare' fiver or whatever, I transfer it over. I call it my 'beat the snowball calculator' approach!

• Be clear with your friends/family that you can't always afford to live at the same level as they do.

I have friends who earn two or three times what I do, and others who learn half. We're the closest group you can imagine, but we never discussed money. It wasn't until I was having a bit of a meltdown one night that the others started to admit they were having trouble too - doesn't matter how much you earn if you live to your means.



We'd all got caught up in an unsustainable lifestyle - and it wasn't even one we were enjoying any more because we were worrying about how much each cocktail evening, cinema trip etc was going to cost us. Once we became a little more open, it was easier to say "sorry, can't make that night I'm broke", or "can't afford to go out, but I'll do a pot of chilli if you lot bring the booze". Even now, we don't discuss money a lot, but my friends often come to me for a bit of advice or a friendly ear now they know - and you wouldn't believe how often I direct them to areas of this website.

• Remember how to have fun without spending money.

I don't have kids, but whenever I'm around my friend's kids I'm fascinated by how much fun they have with the cheapest of things. Personally, every time I find myself falling back on spending as a fun passtime, I demand access to a friend's animals - pretty hard to feel crappy about your finances when you're fending off the attentions of a huge dog, plus getting out and about is good for you - and free!

• Have a change pot - shove in the change in your pocket whenever you think about it, and don't touch it unless you are literally starving or the rent's due.

I did this long before I signed up with MSE, and it fast became my little way of saving for Christmas. Last year somehow my change pot had bred over £200....mostly in 20p pieces!

• Don't be too proud/scared to ask for help.

Signing up to MSE via this diary was the best thing I could do for my finances. It took me quite a while to do the SOA (and more the second time as I'd mucked up the first one), and quite a lot of chocolate before I shared it with you lot. But it was so liberating that my only regret is that I didn't do it years ago.



Plus, I'm finding that by becoming more engaged with MSE (I lurked for ages and ages), it's having an interesting effect on my spending habits. Yes, I still spend on things which I probably shouldn't - but now I know where my money goes, and I'm discovering that it can be nerdishly (is too a word) exciting and fun to watch the pennies go down on loans and credit cards! So when I had the overtime payment last month (the first ever!), where previously I would have spent it all in a week or two, it went on clearing the overdraft and a big chunk on one of the credit cards.

• When the walls are closing in, sit down, take a deep breath and just decide what the next step needs to be. Just the first one. And do it asap.

Every time the walls close in on me - irrespective of whether it's because of work, money, someone annoying the hell out of me (happens a lot!), it's that first step which, to me, is the biggest obstacle to sorting it. Do the first step as soon as you can, and the rest really will follow - I promise.



And finally:

• That this too shall pass - but it's up to me how it happens.

I've learned that no matter what state I'm in, what troubles I have, what company is banging on the door for their money, it'll pass - and I have the choice on how it happens.

My choices aren't always pleasant - in the early days, there were a few times when it came very close to "pay rent, or eat throughout the month". I learned that life does go on without the tv or a phone, and even (shockingly) without a constant source of chocolate.

Though things are much, much better now, I still have to maintain a balancing act. This is where the honesty thing comes back round to help - it's so much easier to say to someone that you can't do something, go somewhere or whatever because you're saving for something else, or you're paying off a debt.

Friends will become bored with this after a while (or uncomfortable because you might just be making them think about their own finances), so don't whine about having no money - make constructive suggestions instead....this evening a friend asked if I fancied visiting the new John Lewis that's opened near us. Combines three of my fav things - John Lewis, the John Lewis cafe, and Christmas stuff to skip through....but I'm determined that catch up to that pesky Freeby on her NSD achievements, so don't really want to go shopping just because the place is there. Rather than say that, I explained that I really fancied more of a mooch around the house (which I do), and we've decided on a morning of crafting and cake on the sofa instead.

I've no doubt there's more - for example, I find my MSE signature stating my position is a huge motivator for me; I've also discovered that by digging out all of the toiletries I have secreted around the house I apparently could start Boots on my own....massive reduction in my routine shopping bills now I know what I've already got...same goes for cleaning products and food (though apparently not chocolate...duplications of which don't last long enough around here to be an issue;)).

I also want to be clear that I'm not any kind of expert at paying off debt or saving money - I'm just muddling my way through like everyone else, and learning lots along the way.

It's been a long post - if you're still awake at this point, use what you find helpful, and bin the rest!

Nora.

such a lovely, open and honest post, reminds me of my journey which started not long before yours. i certainly think that such a post would be really helpfull to all those people who are just dipping their toes in the DFW world.