Project Phoenix- rising from the flames

livewire_82

Closing in on 30, I'm increasingly coming to the realisation that life is way too short. It's all very well living a care free lifestyle but sooner or later, if you don't live responsibly within your means, it can all come falling down around you. Fortunately, although it's far from great, my personal financial situation could be a lot worse than it is so I have an opportunity to nip it in the bud before it esculates any further. The main reason I feel I've got myself into this situation is pride - I simply have too much of it (if I had as much money as I had pride, I'd be a rich man!) I foolishly try to keep up with the Jones's in an attempt to mask my lack of finances but recently I've had a my own little lightbulb moment and realised that the only mugs out there are the ones who part with their cash without a though of finding a better deal somewhere else. I've actually started to get a kick out preventing shops, restaurants, etc from getting their hands on my hard earned cash - why should we make it that easy for them? Not all of the purchases we make are necessities.
So it's time for me take take the bull by the horns and become debt free once and for all! :beer:

Employment Situation
After a turbulant 18 months prior to April 2011 following a redundancy, I now find myself in a financial rebuilding process. Of the 18 months I had between full-time employment posts, I was jobless for 9 of those. 9 months of no income (aside for some mortgage PPI) took it's toll and it's going to take some time to fully recover from it. Fortunately, I now find myself in a stable company, earning reasonably good money and I expect this to remain for the forseeable future. Unemployment was an interesting experience in which I learnt new things about myself along the way but it is one I do not wish to experience again for the rest of my life. I did my time, I passed the test. Now for a new challenge. :j

Current Finances
Barclays Personal Account: -£2294.23:mad:
Santander Joint Account: +£428.77
Car Loan (inc. interest): -£1997.60:mad:
Consolidation Loan (inc. interest): -£6666.52:mad:
Savings: £0.00

Why Now?
The main reason I'm deciding to start now is due to an accumilation of all the up coming events I have to find money for this year. I won't go into the details of these events but they're the sort of I feel obliged to attend (i.e. best mates stag do for one). It won't be easy but I am of the option that if you work hard enough to achieve something then you will do just that.
Although I am not totally convinced it will be possible to afford all of these events without obtaining a credit card as a short term solution, I am going to do my damned hardest to avoid it! Besides, even if I find I have to, I hopefully will at least have helped the situation with all the DFW challenges I decide to undertake. :T

Peabody_2

Hi :hello:

I too am part of the nearly 30 group (82 was a good year ) I'm pleased to hear you have a new job, hopefully this will make everything that little bit easier.

The challenges are great and everyone here is an expert at keeping your motivated.

When's your mates stag do? And what does he have in mind? There are some great idea's for making money here and as we all know every little helps.

Enjoy the rest of your weekend

Pea

caeler

81' was a better year ;-)
Why not think of posting your SOA so others can help you tackle your day to day living costs? Often tackling those can free up even more of your monthly income. Redundancy is never easy but you did it - you got through it! Well done!

livewire_82

So encouraging to read these supportive comments so soon after launching my shiny new diary!

caeler: The SOA is on it's way. It's definitely first on my to do list.

Peabody: With regards to the stag do, what I didn't point out is I actually have 3 of them to attend (2 of which I'm organising as best man). It couldn't be any more difficult as they're all within the space of 2 months but I suppose it's the price you pay for having good friends!
Location wise they're all decided..... Bournemouth, Ibiza & Poland. Not the cheapest of locations I know but when it's their stag do's I can't really argue! When it comes to events like these there's not really a lot you can do to pinch your pennies but if you have any suggestions on saving the pennies beforehand, they'll be more than welcome!

livewire_82

Statement of Affairs and Personal Balance Sheet (HOUSEHOLD)

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1240
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3140

Monthly Expense Details
Mortgage................................ 621
Secured/HP loan repayments.............. 330
Rent.................................... 0
Management charge (leasehold property).. 20.83
Council tax............................. 110.31
Electricity............................. 52
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 18.1
Mobile phone............................ 80
TV Licence.............................. 12.37
Satellite/Cable TV...................... 10
Internet Services....................... 7.5
Groceries etc. ......................... 240
Clothing................................ 0
Petrol/diesel........................... 10
Road tax................................ 9.58
Car Insurance........................... 45.01
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 412.8
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8.3
Buildings insurance..................... 0
Contents insurance...................... 33.33
Life assurance ......................... 25.14
Other insurance......................... 45.43
Presents (birthday, christmas etc)...... 0
Haircuts................................ 8
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 7.49
Property Maintenance.................... 172.64
Ebay Shop Fee........................... 14.99
Bank Account Fee........................ 25
Sky Insurance........................... 8.25
Total monthly expenses.................. 2328.07


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 1000
Total Assets............................ 179000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 134344...(621)......4.2
Secured Debt.................. 1997.....(181)......9.6
Hire Purchase (HP) debt ...... 7333.....(149)......8
Total secured & HP debts...... 143674....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Unsecured debt.................6667......230.......6.9
Total unsecured debts..........6667......230.......-


Monthly Budget Summary
Total monthly income.................... 3,140
Expenses (including HP & secured debts). 2,328.07
Available for debt repayments........... 811.93
Monthly UNsecured debt repayments....... 230
Amount left after debt repayments....... 581.93

Personal Balance Sheet Summary
Total assets (things you own)........... 179,000
Total HP & Secured debt................. -143,674
Total Unsecured debt.................... -6,667
Net Assets.............................. 28,659

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

As you will see I have based this on our household's TOTAL income and expenditure. However, I am intended to treat this debt free diary as an individual challenge as my OH's finances are in a better state than mine are so I may come back with another that purely highlights my personal finances only. However, as this covers everything it should give you a clear idea of where my £££ are going.... all cost cutting suggestions are welcome! :beer:

With regards to the debts I have listed - I must make it clear that these are not ALL mine!:rotfl: Some of them are mine, some are my OH's and one is shared (mortgage)

Additionally I'd like to point out that I have intentionally left any areas I consider to be dispensable at £0. This is for my own benefit just to see what I have left over after all the essentials have been taken into consideration. As we earn different amounts, and each have varied amounts of debt, we no doubt put aside different amounts for our non-essentials.

livewire_82

This is the SOA that has more relevance as it focuses solely on what comes in to my bank account and what goes out:

Statement of Affairs and Personal Balance Sheet (PERSONAL)

Monthly Income Details
Total Monthly income after tax.......... 1900


Monthly Expense Details[/b]
DD into joint account................... 750
Car Loan................................ 181.60
Consolidation Loan...................... 229.88
Loan PPI................................ 12.25
Travel.................................. 412.80
Mobile Phone............................ 40
Bank Account Fee........................ 25
Ebay shop fee........................... 14.99
Total monthly expenses.................. 1666.52


Available Remaining Funds
Weekly allowance (x4 weeks)............. 160
Payment into savings pot 1.............. 20
Payment into savings pot 2.............. 20
Payment into savings pot 2.............. 20
Payment into savings pot 2.............. 20
Total................................... 220


Overall Outgoings
Total................................... 1886.52

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

• The DD you see that I pay into my an my OH's joint account takes care of the mortgage, food and all the bills that go into paying for living in our flat.

• My OH pays for all car expenses at the moment but I intend to help out with that a little more once I free up some funds.

• The bank account fee I pay gives me breakdown cover, mobile phone and gadget insurance, worldwide family travel insurance, cardholder protection, airport lounge access, lifestyle management service (and a few other things too) which I consider to be good value for money.

• The eBay fee I pay is for a shop I currently run in which I sell specialised products as a second income. As with all retail, I requires investment and although I have accumulated a small amount of stock to keep it running, I have come to the realisation that it'll have to go on the back burner for a while until I can free up some funds from when the first of my loans ends later in the year.

livewire_82

My first port of call will be to assess whether or not I can reduce any of the payments listed in my SOA. During my unemployment stint, I had plenty of time to analyse my finances and where they could be improved so I like to think that the majority of them are fairly priced.
However, if you think otherwise and see an area that you feel I could save some money in, please let me know!

livewire_82

Ok, now I know getting a CC and being a DFW are two contradicting actions but as I've explained before, I have a very busy and rather expensive year ahead of me and without sufficient savings and little margin between my current income and expenditure, I have to think of the safest possible option that will avoid further debt. My debt free diary is less about becoming debt free (though it's what I dream of every night) and more about managing the debt I already have and preventing it from increasing.

So here's what I'm up against:

• My holiday to Croatia (june): £400
• Stag do weekend #1 in Ibiza (june): £600
• Stag do #2 in Bournemouth (august): £400
• Stag do #3 in Poland (august): £400
• My engagement plans (december): £1000
TOTAL: £2800 :eek:

And here's how I intend to fund it all:

• Apply for credit card July (15 months at 0%)
• Throughout 2012 use £1800 of credit
• Car loan ends November 2012 (£180 p/m)
• Begin regular monthly payments of £150 in December 2012
• From December 2012 - 12 months available to pay back on 0%
• 12 x £150 = £1800

So that's seems safe enough but I'm still £1000 short.....

Possible additions:

• Minimum available savings feb-dec: £880
• Birthday money: £200
• Ebay sales: £200
TOTAL: £1280

So, with plenty of determination and a little bit of luck, I should just about be ok. The outlays I've put are only estimations but I suppose it's better to over estimate than under estimate.

The important thing for me now is to really tighten my belt with the spending. I have a £40 budget for weekly spending so my target will be to see how much of that £40 a week I can avoid spending so that I can put that aside into a sealed pot and use of one of these events later on.

livewire_82

I've neglected my DFW task for a while and in confessing that I've recently got back from a (well earned) week's holiday, I come home releasing that I really do need to make a start on clearing my debts.

I could really do with some feedback on my DOA though. Opinions good and bad are welcome alike.

livewire_82

anybody??

livewire_82

If anyone has the time, I'd really appreciate some feedback on my SOA.