Build a new life in 3 yrs.

SmithfieldPartDeux

Ok, so I'm back. Working on Year three of the plan. Some wins, some loses.

Update, I'll do, good, bad and new goals.

I have no active defaults, Capital One was paid off in full. Default was Oct 2012.

This is the last month of Budgeting loan! Last 36.10 goes out end of Feb and it's no longer.

I check Noddle every month, I haven't missed a payment now since May/June 2013, I was 1/5, now 2/5, want 3/5 by summer lol (I know these mean nothing, but its free and feels like a win).

My temp post in this thread was made perm last Jan, instead of JSA, I now make £1250 a month (not fortunes, but compared to the start of this thread, its a lot more!) I have been back in work now three years this June and out of benefits system.

I have started a Masters degree distance learning, always loved grand designs and older houses, so doing a conversion degree in Building Survey/Conservation. This is however a money pit and not cheap. £2400 in fees this year so far.

My father now lives abroad and has offered to put his old house in UK in my name. It is paid off in full and about 80k. I have been speaking to a whole market mortgage advisor this week, who is coming back to me. I have seen a farmhouse for sale that needs restored, it's currently 60k, but with a bit of arm twisting maybe less. Lots of room for sweat equity, its big too, so potentially could be a great long term home. I just want a place to call my own, but with a decent level of payments, so if things turned bad, I wouldn't have to worry about selling.

I have an assessment centre next week for a new job, cant really discuss this too much, but see what happens.

I'll do the not so good in the next post with proper financials.

SmithfieldPartDeux

I owe
£530 HSBC CC (I kept this on to have a regular payment for credit rating, £15pm)
£1050 HSBC Overdraft (I live in this far too much, I want this sorted, one of the reasons for return)
£1700 Marbles (my Masters won't allow direct debits for fee's! so £1200 was put on this end of Jan and some silly christmas spending) Last min payment was £30, but will be attacking this from now - Sept)
£36 budgeting loan 0% interest


Outgoings.
Rent (incl rates/council tax) £275pm
Electric £25pm
Oil £25pm
TV licence £12
HSBC Min payment £15
Marbles Min payment £35
Overdraft £7 per month in charges.

Goals

I want to move from rent, to owning a house that I am restoring and that equity is going into. This could potentially be do-able by July, will update this when Mortgage advisor responds.

I have more fees for masters to pay in Sept, so Marbles needs to be paid off by Sept.

Proper budgeting, I want to get back to much more frugal grocery shopping and spending, I have gone from being on benefits and in financial freefall and defaulting, but I am still in debt, using cards and overdraft too much. Hence MSE Part Deux.

I still cant drive, its silly. thinking trying for an automatic, this will have to be a bit more back burner for now, as I have a lot of other thing pushing for money.

SmithfieldPartDeux

OK, so, I think I want more positive goals, in the next 3 years.

Goal one – (June)

Mortgage application
Module 2 of masters passed.
£1200 of Marbles cleared.

Goal two - (12 months)

Restoration of house under way.
4 modules of Masters done (50%) finished
passed automatic test.

Goal (3 years)

House restoration complete
New Job
Masters Completed
Debt free other than mortgage debt

Buffythedebtslayer

Welcome back

I think you are doing pretty good, good on you for starting the Masters, very brave! I think you have worked out stuff really well and lots of luck for the job next week

XX

SmithfieldPartDeux

Thanks, I just feel like I need to get back to basics. I've gotten out of post university freefall, but I really need to get a grip of what I'm spending and do better with it, everyone I know seems to use credit cards and overdrafts, I'd like to do a bit better with that. Housing is my biggest bill, so I really want to turn that into an investment and the stability of a home that is affordable even in tough times.

I'm gonna do some ebaying next, get some things sold, to pay some bills.

Full monthly budget from end of Feb.

SmithfieldPartDeux

Quality bit of ebaying tonight, sold some bike parts and a chefs knife on a forum.

End result £150.

Listed a bike frame as well, auction to run until next sun.

Buffythedebtslayer

that is quality ebaying!

I am happy with a fiver!

SmithfieldPartDeux

So under charged on the ebay postage, £4 less!

But items posted and off, need to get a bike box sorted to post frame I have on ebay at the minute.

Mortgage broker is ringing me tomorrow with options apparently, dunno if this is good news.

Phone went bang, thank fullydue an upgrade, extra 10 pounds a month though £28

Work is pretty hellish atm, need to focus on what it will hopefully enable me to do.

SmithfieldPartDeux

Bit of an update.

Mortgage broker said that a mortgage should be possible (its quite small 60k), I need to have another property currently owned by my dad put into my name for 6 months before application.

So looking at Aug/Sept time.

In the meantime, I want to go back to some good old fashioned MSE'ing. I haven't done a proper budget in far too long. I'm going to have some pretty big bills coming with the house purchase and don't want to get paying those with debt. So from this paycheck,we are back in business.

I sold a bike frame on ebay last week, £250, so that has kept the wolves from the door for a bit. Paid thursday. I'm going to post a bill breakdown and budget, I'd like to ideally to be putting away £350 month.

SmithfieldPartDeux

So gonna work out bills and budget.

Wages £1220

£36.10 (final budget loan payment!)

£15 - HSBC CC
£32 Marbles CC

£75 Oil - (this is about every 3 months)
£50 Elec (quarterly)
£31 Phone
£275 Rent

Total £510.14 - This is a big month for bills, Next month, no oil, electric or budgeting loan, so extra £164 next month.

This leaves £720

40 journeys on bus - £51 (will try and save these so get a free month every three)

Looking at this I'm spending most of my income on food, Probably £3 daily for lunch, maybe £5-6 for dinner add in some soft drinks etc and thats £10-12 per day. Proper meal planning and a big tesco shop required. £372 a month going on this on average.

I visit my GF maybe twice a week, thats £16 per week, but no bus fares these days so maybe £10 extra.

If I budget travel at £100, So say £80 per week to live on for food and what have you = £290 saved.

If I managed this next month, that could be £450!

I'm actually quite shocked at this, I had no idea how much I was spending on travel and food.

I want to look at the food bit much more. Will do a big tesco shop for store cupboard stuff, This could bring the weekly down from £80 to £60 pretty easily.

This is a starting point, I honestly feel I can do better, so much wasted money in this.