I'm new and on a mission to become debt free - any help appreciated!!

mrsb83_2

Honestly, I don't think you've had your light bulb moment yet.

Your list of things you "need" to pay for are the kinds of things that everyone deals with - weddings, Christmas, birthdays etc. You say it's hard to budget for things like that but it really isn't. You put money aside and you spend only that amount. If you have a very busy month you can tweak your budget to allow more for those things - with the income you have this will not be difficult at all.

With minor changes, and proper budgeting, you could be debt free in 6 months IMO.

DitchTheDebt

I will look into a separate account it might make things easier tbh that way I can have a set amount paid into my account as a wage, I honestly don't know why I didn't think of that before, I suppose I was young and just off maternity leave when I set the business up and I've never thought that hard about it. I do keep separate accounts it's just that the money is just not separated.

I don't think we will be debt free in 6 months, god I would love that! My wages are going to go down soon so I'll be loosing about £800 a month. I think I have had a light bulb moment but whether it is THE light bulb moments remains to be seen

rising_from_the_ashes

mrsb83 wrote: »

Honestly, I don't think you've had your light bulb moment yet.

DitchTheDebt wrote: »

I think I have had a light bulb moment but whether it is THE light bulb moments remains to be seen

I'm afraid I agree with MrsB,I think it's still flickering tbh (sorry) but it's a great step in the right direction - if it was the full watt LBM then there are a lot of cuts that can be made and it really becomes a need compared to a want when the full watt moment strikes these choice become 2nd nature ....

Few comments from me ....

Gas & Elec yup, check the elec meter readings and if you are due money back, it goes straight to the debts.....
Satellite/Cable TV...................... 45 this covers our phoneline, internet and sky, my husband managed to ring and get a good deal, is it not that good a deal then? My landline & internet come to under £25/month .... Sky is a want
Groceries etc. ......................... 400 Try the grocery challenge on the old style board - there are families of 4 who manage (and eat healthily & well) on £220 / month - incl toiletries, cleaning stuff & nappies etc
Petrol/diesel........................... 400 Are these all essential journeys - could you stop at the sm on the way in from work to save a separate trip etc
Medical (prescriptions, dentist etc).... 120 have realise i had added the rent i pay per month for a room i use to do art in, I'm hoping it will make money at some point and I can gain experience in the meantime before it makes money I am using it as therapy, it's possibly a luxury i can ill afford but it's something i have worked very hard to gain and would be heart broken to give up, I have only had it 2 months so far how much is the room? Are there any local facilities / art clubs etc you could join instead?
Contents insurance...................... 23 shop around at renewal time
Life assurance ......................... 11
Presents (birthday, christmas etc)...... 100 This needs to be around £20 / month
Haircuts................................ 30 I usually use a salon because my sister will only wet cut my hair and I'm useless at girlie things so I need it styled sorry this needs cut .... try student evenings etc
Entertainment........................... 700 This needs to be a max of £100
Holiday................................. 30 we will not be having any more holidays until our debts are cleared probably unrealistic to have £0 for things like school hol periods etc - try to cut if poss

determined_new_ms

I think it is really easy for us seasoned DFWers to say cut this cut that (and its totally the truth!) But I have been positing on these boards for 4 years now and I have lost count of the times I have read people bulking at the suggestions. But in truth you have a very generous income/disposable income. We have (I think) a good joint income at 3k a month and we have a good life, several holidays a year, can afford what we want but we spend a lot less than you are and save approx a 3rd of our income each month. I think you do need to get serious. Oh and I set a £20 limit of gifts to each other. When we were in debt it was £5. You will get there but if you want to do it fairly quickly I would suggest really cutting down on everything, considering whether your budget allows for what you are considering - remember it is your disposable income that should direct your lifestyle choices not your choices dictating your income. But baby steps and build momentum - it doesn't all need to be done today

DitchTheDebt

This is this weeks spending log so far - what could we have done differently do you think? I'm wondering if we should also be checking the bank and adding things that have come out each day too to get a real idea of what everything costs per week? But then this is why it's hard to keep business and personal stuff separate because I just buy everything in 1 go for e.g. if I to lidl and brought toilet roll I didn't split that on my spending list

DitchTheDebt

toddler group £2.00
milk and pop £2.50
petrol £53.00
chloes bus & dinner £10.50
petrol £40.25
car park for tots £1.50
toddler group £2.00
milk, bread, butter £3.68
toddler group £1.50
pharmacy £10.87
vimto, bread, pop, butter £6.90
lidl £41.71
co-op t bags, fizzy pop £5.57

rising_from_the_ashes

DitchTheDebt wrote: »

this is why it's hard to keep business and personal stuff separate because I just buy everything in 1 go for e.g. if I to lidl and brought toilet roll I didn't split that on my spending list

OK .... it is vital to keep personal & business spending separate - you need to keep proper receipts etc for your business spending and have a separate account for the money in/out of your business..... otherwise it could end up a real mess and you won't know what is what.

DitchTheDebt wrote: »

toddler group £2.00
milk and pop £2.50
petrol £53.00
chloes bus & dinner £10.50
petrol £40.25
car park for tots £1.50
toddler group £2.00
milk, bread, butter £3.68
toddler group £1.50
pharmacy £10.87
vimto, bread, pop, butter £6.90
lidl £41.71
co-op t bags, fizzy pop £5.57

Ok .... a couple of ideas from me:

Items in red would seem to be reasonable - these come to £17.50/week so, take £20 / week out the bank and put it in a pot or jar and this covers these activities

Items in blue are not essentials and it's here you need to try to cut down on - aside from your main shop at L*di, these added to the other grocery items in orange comes to nearly £20 ...

Try writing shopping lists - I keep a list on the fridge and if I open a pack of something I use a lot / get down in something used infrequently, I note it on here so I don't forget to get them when I go for my main shop = keeps me out the local shop which is much more expensive & I then buy other things I don't need

Pharmacy stuff - what this all essential? Could any items have been bought cheaper at the sm?

Fuel - try to see if there's any way you could cut down on the number of trips you make. Also, any business use fuel should be put against the business and not taken out your own spends.

HTH

allthingsmustpass

DitchTheDebt wrote: »

I'm wondering if we should also be checking the bank and adding things that have come out each day too to get a real idea of what everything costs per week?

Easy way to keep track ive found is an iphone app called 'spending log', just tap in what you spend as you spend it and you can see your account balance straight away.

Or better yet, check your account balance using it and then decide if you should be spending BEFORE you do it!

It adds stuff up for you so you can see what you spend per week,month,etc, categorises it all, v. useful.