My brand new debt fighting diary

datlex

I have been using the MSE website for some time and receive the weeklyemails. I have found both the website itself and the forums contain greatadvice. Recently I have been reading through a lot of the debt free diaries andhave found them really inspiring. So I thought I would start one myself.

I am currently working full time as an agency worker in an ongoing roleearning £305.10 per week.

I live in a small flat which costs me £64.14 a week to rent. Council tax isapproximately £20 a week for the weeks it is due. (I still budget for it on theweeks between January and April when it has been paid) [this year Iaccidentally over paid by £28 so it'll be coming off next year's bill].

For utilities: I have a water meter and currently pay £20.47 a month. I wason prepayment meters and topped up £10 each on average a week for both gas andelec (gas was higher in winter but lower in summer and balanced out to £10). Irecently changed over to credit meters, so am budgeting the same amountassuming the direct debit discount and increases plus access to better tariffswill balance each other out.

For travel: I spend £44 on a monthly bus ticket. I use this for work andgoing into town when I need to. I put aside £4.62 a week at the mo towards myMOT and car tax. (Car Tax is purchased in Sept, MOT in March). My car insurancepayments are £27.08 per month. (This was cheapest, plus I am expecting £80.80cashback soon). Car is used for longer trips such as visiting family in otherpart of country.

For in home entertainment: £12.12 for tv licence, £24.50 for sky talk andunlimited broadband, £21 for mobile (contract runs until end 2013), £5 formobile broadband.

Christmas 2013 savings : £5 per week.

My one fixed indulgence : extended wear contacts £30 per month.

Loan payment: £150.35 per month.

At the end of last year, I set up a spread sheet for my finances. Since I am paid weekly, I have to apportionmy monthly payments so that an amount is allocated to them out of each week’spay. I have a number of bank accountsand credit cards which I use to pay for or buy things.

My spread sheet consists of 3 sheets. There is a sheet for my bills accounts, a sheet for my current accountand a sheet for my weekly spending. Thecurrent account is the one into which my wage is paid. I then transfer money out to my bills accountby standing order. These over the monthcover all my payments mentioned above. My current account is then used for food, slimming world and otherexpenses. I set aside £43.50 a week for food and groceries budget which is £40on groceries and £3.50 delivery. (I find I save money shopping on line as the realbargains are easier to spot). Slimmingworld is £4.95 per week. The remainingmoney is unallocated money. If I spend under the £43.50 I adjust the spreadsheet for that week. I don’t submitorders which would cost me more.

With the unallocated money, I have the spread sheet set to deduct from thisevery time I either withdraw cash from my account or spend money on my currentaccount debit card. I am not allowingmyself to spend over this. Last week wasmy first week of doing this and I managed to not spend £28. Any unspent money at the end of each week isthen transferred to a savings account.

The money in the savings account will be going towards repairs needed to mycar and replacement sofas (I have two futons at the mo) once I have savedenough money to get one.

My hope over the year is to be able to build up a small amount which I canuse as a lump payment towards my loan.

I have 2 credit cards which I use. Iuse one to pay my rent, bus ticket and council tax. This is always paid in full and earns mevouchers to spend in store. The other I usefor more expensive purchases to take advantage of the section 75 rule. I only spend on this what is already coveredin savings.

At current my debt is not unaffordable but I would really like to get itpaid off sooner rather than later. Iwill then be able to put the already accounted for money which pays my loaninto a savings account each money.

Hopefully I can keep up my good intentions, and hopefully make some moneysavings along the way too.

datlex

Yesterday I spent £8.17 so not too bad and I do now have a container to take salad to work in which won't leak beetroot juice every where!! It was £4, but the cheaper ones have all leaked.
Am thinking of booking a holiday week this week at slimming world. I have an essay due on Thursday, so really need to get on with writing it over the evenings this week. Hopefully won't need to spend too much today, if anything. Hoping to get to cash point later to check balance- I find it tends to be more accurate than bank statement in that it says what the balance is and more important what is available for withdrawal (the real balance).

datlex

I think today can be defined as a NSD. I took prepared lunch to work. Didn't get toast from canteen for mid morning snack and didn't pop into shops after work. The money for my monthly bus pass did leave my bills account today but it was already budgeted for.

datlex

Today was another NSD in that I spent no extra money today. My bus fare was covered by the monthly payment and as normal I took in lunch from home. This time was a cheese salad. I also took in a flask of coffee, so had no expense there either. This evening I have cooked a tea for myself from food already in my fridge/freezer. The net result is I haven't spent any extra. This has got me to wondering whether if we have already bought things in advance we really are having a NSD. My self challenge is to maximise my NSD whilst minimising my budgeted spend. To do this I am planning on small steps to save money. The small step I took this eve was to create enough salad dressing from a couple of "empty" bottles for tomorrow's salad. Hopefully over time these smalls steps will mean I cut back on how much I spend.
I am off to check which of my outgoings are showing as gone from my bank. Tomorrow is pay day and the day I get to transfer any balance from my current account for this week to my savings.

Crystal_clear_2

Hi Datlex.
I've just started my diary. I have an awful lot of debt so it's going to take me a long time to get debt free. You sound very organised. I'm also trying to lose weight. I have lost two stones so far with weight watchers.
Good luck

datlex

Hi Crystal,
I'm trying to loose weight too. I'm doing slimming world - so far lost 2 1/2 stone. Hoping to have got the next half stone off by March. I'm trying to be organised, but I do think had I been more so in past that I would have had my debt paid off ages ago.

datlex

My tesco shopping just arrived. Got a small refund of £1.65 due to substitutions. So that's been added to my non allocated funds for this week.

Have done 3 hours overtime at work this week too. Won't be a huge amount after tax, but will come in handy.

Yesterday I set up my direct debits for gas and elec. BG set them at £71 over all, which is lower than paid on prepay meters per month. Have asked them ref amount, apparently they have set amounts depending on situation. Still they are sending me a free energy monitor, not sure how they work - but hopefully it will let me see how much things cost to run.

One thing I do I wonder about the cost of is the lights in my lounge. There are two ceiling lights both from one switch. So either have to have both on or neither on, can't have just one. I've been wondering whether it would be cheaper to have a lamp. (all my bulbs are energy bulbs). I'm not sure however whether a lamp costs more to run than a ceiling light. Need to do some investigating. I'm also not sure whether using a dimmer switch is possible or indeed cheaper.

On Saturday, an electrician is coming to fit an inverter for the solar panels my landlord has had installed the roof. Not sure when they'll start generating power though, as he'll have to get into the flat above to get into the roof space. Still hopefully once he does, I'll save a small amount of money on my elec bill. Will try to remember to ask him whether the dimmer switch option is possible.

Be good to find a few savings by making small changes.

datlex

Had to pay contents insurance today. £138 but no excess on it. Still it is now covered for another year. Other wise I made breakfast here and took lunch into work with me.

Down to final notch on a large size belt. Few more weeks and I'll need to spend some money getting a new medium belt. Got a Debenhams voucher so hopefully can get a cheap one there.

datlex

I received my new energy monitor today. Need to program it with my tariff information, but it appears easy to use. Watching the display it did seem to fluctuate a bit. Am hoping by using it I can be smarter about my energy usage.

Also today I had the inverter put in my meter cupboard for the solar panels. Next week the guy will be doing the next stage of connecting it. The final stage involves going out on the roof, so that won't be done until the snow clears. Apparently they work during the day, which is great if like me you work during the day -NOT!!! Going to be a challenge to work out how to take advantage of them fully when will be out at work. At this time of year I leave for work when it is still dark and get home when it is dark too. I know the fridge/freezer will be running all day, so that may well use up all the free power generated. If not will have to work out when to use my washing machine and dri buddi to take advantage. Still don't have to worry about that for a little while. And to be honest since it means a small bill reduction will be a benefit whatever I can get from it.

On a not so good note, my car needs fixing. It was overheating a few weeks back, so I let it have a rest. Also didn't have funds to fix it but that is another matter. Today went to start it and battery was flat. I think that is just the cold weather. Now need to get it looked at by a garage and hopefully fixed without too much expense. Don't go far in it, but it is handy to have. Would call the AA out to it today, but it is thick snow outside so will be a nightmare getting it out any way. Fingers crossed I can get it sorted next weekend. Otherwise if it isn't fixable will have to scrap it and save for a new one - but am hoping it won't come to that.

datlex

Found out one thing I found quite surprising from the energy monitor. The gas boiler is quite a high user of electricity!!

datlex

Yesterday spent £1.99 on a kindle book to make my life easier during my OU course. Should have been £6.99 but they gave me a £5 voucher for not delivering a gift voucher on time!! Today once again took lunch into work and cooked out of the fridge when got home. Was able to resist temptation to buy any snacks from canteen as someone brought in some biscuits for their birthday.

Mind you would only have been able to spend £2 at most as took purse to work and realised I'd removed all the cards oops.