Time to get serious about money saving...

LookingToTheFuture_2

I've been using this website on and off for a number of years but I've always been just a 'lurker' on the forums.

I had my first lightbulb moment at the end of 2008 when I realised that I was over 20K in debt - more than my annual salary! :eek: I started keeping a spending diary and tried sticking to a budget, with varying degrees of success. My monthly wages only just covered my outgoings plus minimum debt repayments, so I had to cut back as much as possible - all the usual stuff, cancelling gym membership, cutting out luxuries etc, but there have been a few times when I slipped back into my old spending habits and had to get myself back on track. Also I had a major set back about 18 months ago when I needed to pay out £2000 to get my roof repaired. I have no savings so I had to put it on credit.

It's been very tight and I've often had to resort to using my credit cards to buy essentials when I've run out of cash at the end of the month but overall I've managed to reduce my debt at a steady pace and I now owe just under 13K.

I had begun to feel that there was light at the end of the tunnel, especially as I will finish paying off a bank loan in July 2012 which would free up £295 a month. I was hoping to have a bit of extra spending money after July, while still paying off my other debts at a steady, comfortable pace.

But of course, life has a way of coming along and spoiling all our nice plans. We were told at the end of last year that there will be redundancies at work - about half the staff will lose their jobs. So now we're all waiting to find out where the axe is going to fall and should find out in the next month or two.
The term 'lightbulb moment' doesn't even begin to cover what I'm going through right now. This is more like a Nuclear Blast Moment! The scales have completely fallen from my eyes and at last I'm seeing my true situation for what it is. Facing possible redundancy with debts hanging over me and no savings is a very bad place to be in with the economy the way it is.

So - now I need to get serious about a plan to sort this mess out. I know that I've got a job for the next 3 months at least, so I'm
going to cut down all spending to the bare minimum and live as frugally as I can, to throw as much money at my debts as possible in that time.
I'll also be looking at ways to get more money coming in. Whatever the future holds, I need to clear my debts and start building up some savings as soon as possible.

To end on a positive note - I've spent enough time lurking on these boards reading other people's success stories to realise that things are not completely hopeless. There's always a way out of the mess. Hopefully in a few years time I'll be looking back at this diary as one of MSE's success stories!

LookingToTheFuture_2

Adding signature showing total of debts - will update this at the end of each month.

davidgh

Just thought I would add comments about the "virtuous circle" is use in all my shopping expenditure:
I use "affiliate shopping" wherever I can so that my expenditure is less than the "face" sum
As many on this site will know there are many affiliate sites, presently I use Avios (to acquire the old Air Miles) and sometimes quidco (for cash);
I use credit cards that themselves offer points etc
(eg I use M & S credit card and earn M & S points; Lloyds TSB Avios Duo cards for Avios (Air Miles) points; Tesco Clubcard Plus for spending in Tesco when I want to maximise Clbcard points (I had too many problems with 2 of Tesco's credit cards)).
I put as much as possible on credit cards, ideally just after the statement date;
If not a balance transfer amount I pay off in full each month.
Am fortuate enough to have staetment dates nicely spaced through the month so simply switch as a statement date is reached.
In case a newbie reads this - rest assured it takes far longer to excplain than operate in prtactice!

LookingToTheFuture_2

Thanks for replying, davidgh. I don't really buy much online but I do use loyalty cards in shops where ever I can. I try to make sure I still get good deals though. For example, Boots give very generous points but I still don't buy toiletries from there unless they have a good offer on. I can get most products cheaper in Wilkinsons or Poundland. I always top up my pay and go mobile phone at Boots though, and get points that way.
My Tesco and Co op cards give me loyalty points on my spending but I'm trying to avoid using all credit cards, as the interest I'm paying is way more than the value of the points. Once I've got one of them cleared I plan to use it for general spending to build up points, and will pay it off in full each month.

HappyNow

Hello

You will see from my signature that I am not the best person to advise you, but I just wanted to say welcome to diary-land and I promise you will get loads of help and support here.

You are doing exactly the right thing by cutting your costs/looking for extra income. Even if you don't lose your job (and I hope you are lucky there) it is such a good idea to focus on becoming debt-free - it puts you in a far stronger position if ever life throws anything nasty at you. Good luck and keep posting x

LookingToTheFuture_2

Thanks HappyNow - what a lovely welcome! xx

MaccaHallam

Good luck becoming debt-free!

LookingToTheFuture_2

Thanks MaccaHallam x It's lovely that people are so friendly and welcoming on here.

LookingToTheFuture_2

Quick update - I've spent this morning jumping from one MSE thread to another until I felt quite dizzy! But I've picked up a few ideas and tips along the way. One thing I've realised is that I can't plan too far ahead until I know what is happening with my job situation, so I've only set goals up to the end of March. I've also decided to change the way I budget. Instead of budgeting per calendar month I'm going to do it payday-to-payday. This will give me a more realistic idea of how much I have available to spend.

So today I have done the following:-

1. Set up my debt free diary!
2. Sorted out my food cupboard and worked out a menu plan. I've reduced my budget for spending on food to £20 until my next payday (25th January) because I have plenty of food already. I think I'm going to be spending a lot of time looking at the Old Style thread!
3. Claimed 2000 Nectar points that had built up on MySurvey.
4. Joined a few more surveys to generate another small source of income (every little helps!).
5. Joined the No Spend Day challenge on this forum. I've put myself down for 12 NSDs in January but I think I could manage more.
5. Claimed my O2 rewards - £6 phone credit.
6. Made an extra payment of £50 on my store card (minimum payment goes out by direct debit).
7. Listed all payments due before pay day and set spending budgets.


My goals -

1. Stop all spending on credit cards immediately.
2. Pay off store card in full by the end of March.
3. Reduce overdraft to £1500 by the end of March.
4. Stick to budget!!

Well that's all for now I think. Just realised I haven't had lunch yet so I'm off!

LookingToTheFuture_2

It's been a couple of weeks since I last posted on here, mainly because I didn't have anything new to say! I've been plodding along, sticking to my budgets and spending very little. It's 2 days before pay day and I still have money in my purse and plenty of food in the house. :T That's a novel experience for me in January!
I've reached my target of 12 no spend days already for this month and I'm hoping to manage another 2 or 3 before the end of January.
The surveys have been a bit of a disappointment. I registered for Valued Opinions and they've sent me a few surveys but after a few questions they tell me they've got all the people they need or I don't qualify. I might just give up on them because I'm wasting too much time on it.
I've also sent off for a few freebies from the Freebie Board on here and that's been much more successful!

LookingToTheFuture_2

I haven't been very good at keeping this diary up to date, have I? Still haven't updated my signature with the balances for the end of January, and already my February credit card statements are arriving! Going to dig out my paperwork now. Will be back soon.