Driving Down Debt

ThatKiss

Quick progress report, I've not put as much to savings as I'd hoped I would have a month on from debt-free date as I ended up buying a few things for the flat at the start of last month, but things are moving in the right direction.

My mortgage deal was due to expire at the end of July so I took advantage of being able to renew up to 3 months early and am now fixed for 3 years as of May 1.

Budgets set for May and June show savings starting to build, though we're then coming into a couple of months of car expenses - tax is due in July and insurance in August, though unlike previous years these are all budgeted for in advance

ThatKiss

Payday again and still struggling a bit to find the right balance between spending and savings. The world opening up again is great in terms of seeing people and the like but judging how much I’m likely to spend in advance is a bit hit and miss at the moment. To be expected I guess. I’ve budgeted a small increase to spending money this month so see how that goes.

That said, I finally got the new car tyres I’d planned to buy back in feb so overspend from plan is only half as much when you take that into account and expenses like that will be covered by a proper sinking fund in future.

Cards still at £0, savings going up, it’s not doom and gloom by any means, just a case of finding an equilibrium.

ThatKiss

A good feeling today, my side gig had gone into a bit of a lull over the last couple of months but I managed to sneak in one job last month. Payment appeared today and for the first time in a number of years, I was able to pass this directly to savings rather than a debt or topping up after an overspend somewhere.

I do actually have another side gig (essentially the same job, but less money and a more casual arrangement) that was a bit busier, so I'll need to chase up payment there.

The plan going forward is for any additional income or spare cash to go straight into the savings pot

ThatKiss

Payday and the money shuffle is complete, savings still going up and no card balances being carried.

I spent part of the weekend just gone decluttering a bit, a load of clothes emptied from wardrobes/drawers and either binned or passed to charity depending on their condition. Prompted by this I need to buy a couple of new t-shirts, plus socks and pants.

I've ordered some storage for vinyl records to help tidy the flat up a bit more - that will help with the decluttering as well.

Slow progress, but ever forwards.

ThatKiss

ThatKiss said:

I do actually have another side gig (essentially the same job, but less money and a more casual arrangement) that was a bit busier, so I'll need to chase up payment there.

The plan going forward is for any additional income or spare cash to go straight into the savings pot

The second side gig paid up earlier in the week, I've used half towards my clothing/decluttering spends and the other half has gone straight into savings.

Decluttering continues to move forward - I passed the majority of my books to a charity shop the last time I moved, and having not touched the ones I kept in the intervening period, these are now earmarked for passing on. A friend is taking the majority and the rest will go to charity shops, so that's nice and easy. I'm getting close to the task I'm dreading, CDs and DVDs. I can see that taking forever to organise.

ThatKiss

Mid-month update - I'm still waiting on the vinyl storage to arrive so decluttering has been held up a bit by that. I've not made a start on CDs/DVDs as yet - I need the vinyl out the way first for access and space.

Finances look reasonable so far this month - I don't look to be needing to pull anything back from savings for the first time in a while - I think the initial wave of trying to catch up with everyone as pubs/restaurants reopened has calmed down so outgoings have likewise followed. I still need to keep an eye on that, though.

This is also the first month I've not put any spends on credit card which is also helping - the past couple of months there have been a couple of spends which have been cleared on payday so no balance carried etc. This has reduced month-on-month leaving more in the budget for up-front spends. Or, as it transpires, punting directly into savings.

This leads me to some financial admin, my 0% spends offer ends next month - I like the flexibility this provides (especially with home improvements still on the agenda) so will be looking for a similar offer over the next couple of weeks, and will also have to decide which of the current cards to close down. One is good for balance/money transfers if required but a 0% spends card possibly negates that need? My use-case has changed now that I'm not chasing down debt!

ThatKiss

ThatKiss said:

This leads me to some financial admin, my 0% spends offer ends next month - I like the flexibility this provides (especially with home improvements still on the agenda) so will be looking for a similar offer over the next couple of weeks, and will also have to decide which of the current cards to close down. One is good for balance/money transfers if required but a 0% spends card possibly negates that need? My use-case has changed now that I'm not chasing down debt!

I've taken the bull by the horns here and applied for a new 0% card. Once it arrives I'll close down the existing 0% one. Sorted.

ThatKiss

ThatKiss said:

I've taken the bull by the horns here and applied for a new 0% card. Once it arrives I'll close down the existing 0% one. Sorted.

And that's the old account closed down - I'm not sure what's going on as I'm never usually this organised!

ThatKiss

Payday update:

• Monthly money shuffle completed
• Savings continue to grow
• No credit card spends for second month
• Car insurance budgeted and paid

No real progress on decluttering, the vinyl storage finally arrived yesterday so I can kick that off again now, and that allows me to access the bulk of the CDs and DVDs.

Both side gigs are kicking back in over the next few days so that will bring in additional funds to put to savings.

ThatKiss

Quick update, it'll be payday at the end of the week and the monthly budget has been well and truly blown.

Two main factors:

• My supermarket shops seem to have blown up though I'm not sure I'm buying anything different so not sure if I'm missing something or if it's the Brexit effect finally kicking in.
• The effects of being allowed out to socialise a lot more

I'll need to have a serious look at re-balancing the budget once again.

On top of this, my phone has died a death where even having a charger available is no guarantee it'll get through even half a day. Looking back, I last bought a phone in 2017 (though had a replacement under warranty in that time) so although it's a big hit up front, it's been reasonable value for money. I've gone ahead and replaced it already.

On a more positive note, one of my side gigs has put a pay rise in place which will help make up some of the shortfall, and although I've blown the budget I've still been able to add to savings (discounting the new phone which has gone on the new spends card to spread the cost).