There's this dragon I'd like to kill...

Laconic

[Edited to add: Realise I didn't introduce myself at all when I started this diary.
I'm currently 37, 38 come the May bank holiday and I'm back in uni following my dreams after a decade of working to put my younger siblings through college (they've all graduated and are doing great! ).
Uncomfortably aware that I'll be looking to start a new career just at the point when many people are looking to send their kids out of the house to a whole new world. In a perfect world, come graduation I'd have a bit of a nest egg with which to relocate/buffer the shocks of life/buy a house. Don't know if that'll happen, but owing no one any money seems to me a very good place to start and hence my diary. ]

From my SOA, I'm sure some of you might be wondering what the problem is! I'm hoping this diary might provide me with the reality check and encouragement I need to get and keep focussed.

I went through quite a period of having no money in (no job, no course confirmed) wherein I ran down my savings, borrowed from family and built up a frightening overdraft. Since September, I've been fortunate to both have a stipend from my PhD and a flexible part-time job that so far, works around my studies. I've paid off my overdraft, paid back my family and am rebuilding my savings. Having worked for a decade before going back to school, I'm all too aware of how unusual it is to have a significant amount of disposable income and I find myself worrying over how much I waste.

I don't know how long I'll be able to keep my current job -- the next 12 months, almost certainly, after that, we'll see -- but I want to at least kill off my Career Development Loan early. It still has 4 years to run, but if I can build a lump sum equivalent to its value I can pay it off and be done with it!

The problem is that I'm a fritterer -- I waste impressive amounts of money on lunches and pointless treats for self. It's been painful going through my bank statements, highlighting what I spend where and realising how much of my money I turn into food. And the real story is how little of what I have left to set aside actually winds *up* in my savings accounts.

Welcome any comments, smacks upside the head etc., so that this time next year, I can start worrying about how to build up a nest egg for whatever I'll do after I finish my PhD.


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1794
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1794

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 325
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30 (I agree, it's far too much!)
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0 (no, not a mistake: I get my annual bus pass paid for through work)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 75
Emergency fund.......................... 100
Total monthly expenses.................. 962


Assets
Cash.................................... 1700
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1700

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Student Loan...................8000......194.......9.9
Total unsecured debts..........8000......194.......-


Monthly Budget Summary
Total monthly income.................... 1,794
Expenses (including HP & secured debts). 962
Available for debt repayments........... 832
Monthly UNsecured debt repayments....... 194
Amount left after debt repayments....... 638

Personal Balance Sheet Summary
Total assets (things you own)........... 1,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,000
Net Assets.............................. -6,300



not (yet) a moneysaving expert,

L.

Laconic

Did something I probably should have done months ago: called up my bank and arranged to meet an advisor to see what savings accounts might make more sense. Going in tomorrow morning.

Laconic

Today's been a banking day. Interesting conversation at bank -- set up a decent ISA and opened a couple more savings accounts to better split my money. Still in two minds over whether to go for the Nationwide Flexdirect current account. The 5% in-credit interest is alluring, but being fined £5 if I don't deposit £1000 every month is scary (yes, I do keep thinking the sky will fall and I'll get a letter telling me I've been expelled).

Second, called bank from which I have my CDL. It seems silly, but I've been putting it off as I worry I've underestimated what I need to pay and have run up a huge fine. No, account in the black. Phew!

First spending challenge ever! Can a whole £50 really last me a week? Let's see.

amyc92

Hello Laconic :-)
Good luck with your diary! I have subscribed!
x

Laconic

Turns out that I actually owe a little less money than I thought: 7559.95 to be precise. Makes me happy!

Laconic

Second week in and a bit has happened.

On the good side: my new ISAs and savings accounts are now live. So I've moved my old ISA (0.75%! I ask you!) to one paying 2%. The one I'm paying into pays 2.5%. The interest rates are still paltry compared to my debt rate at 9.9% so I'll definitely going to be using my savings to pay off debt.

So-so side: holidays. Going on holiday for three weeks in two weeks' time. Of my £900 budget, I've still got £300 left after tickets, visa, trains and accommodation. Still need holiday clothes, shopping for family... some moneysaving savvy is required.

Not really good side: how to pay off debt. I have thought about taking out a loan with my bank to pay it off but while that gives me the flexibility to overpay, banking where you're owing is a total no-no. As it stands, I have to pay it all off in one go or else I can let the payments come out on schedule.

So, my current pay-it-off war-chest stands at: £1200. Time to start a ticker...

diamond_sky

Hello from another mature student :wave: good luck on your journey

Laconic

Finally back from a three-week holiday and have totted up my spend...
Amount allocated for holiday: £900
Amount spent *on* holiday: £1196.16
You could say it's not soo bad, but then once I add in my airfare of £515, making a grand total of £1711.16
There needs to be a *waaaah*! smiley.
I was only going to visit family, but I'd underestimated just how much a 'few' gifts would actually cost! Ah well, it was worth it (all save the £200 the ENT specialist took to remove a q-tip from my ear -- my stupidity).

More problematic is that there are a couple of things around my family house I want to sort out so now Bad Planning Lady needs to think of how to plan for those without completely derailing my savings plan.

Anyway, that's enough out of me. I need some ice cream and a loong nap now.

Laconic

Ah, there was *one* thing I did today that was vaguely Money-saving. I'd set aside all the coins and change I got all year and today I cashed it in at Tescos. With the hefty commission the coinstar machine charged it still came to £40.81. Used half of it to buy groceries for the week (after making a proper menu and shopping list). Used the other half to get three pairs of shoes re-soled: previously I've always tossed worn shoes but these have been so comfortable and still look good that I thought I'd try. Definitely doing this again!

Perhaps I'm learning. A little.

patman99

£200 to remove an object from your ear?. Did you not take out travel insurance ?.

Also, your SoA has nothing in for landline or broadband. Do you access the net via a free hotspot?.

tiger_eyes

Laconic, we're in the same boat! I'm also saving hard to pay off my Career Development Loan early. I'm a couple of steps ahead of you with about £6000 in savings, but alas, my loan is bigger - I had to take out the full £10,000. Here's hoping we'll both be early repayers.