Lotti's Marathon Challenge: One year, £10,000, 26 miles!

lotti379

Right.

I haven't been taking this seriously at all.

I have spent £304.66 more than I have earned this month.

:eek: :eek: :eek: :eek: :eek: :eek:

I added up the true value of money I owe (including all I owe to family).

Current total: £9857.71

:eek: :eek: :eek: :eek: :eek: :eek:

The good news is, this is not the highest total it has been. Highest value: £10657.71

So I have paid off 7.5% so far, which is, at least, a good thing!

So my challenge is to get a grip on this debt stuff! I need to have a think about DFDs, but I NEED to get my CC (£1217.71) clear within a year, the overdraft (£500) clear within a year too, and the rest (family) as soon as possible!

My other challenge, for reasons of pride largely, is to run a marathon in 2014. I run about 6 miles a week at the moment, so this is going to be a mega step up!

I should explain - my ma said "we don't have the build for running marathons", which I ahem, bristled at! She means this kindly I think, but if I had listened to her "we can't do sport" attitude as a teenager I would have lacked a lot of physical confidence, never been brave enough to try out new sports at uni, certainly never been brave enough to join the TA, where I met my wonderful partner...

So y'see, the gauntlet has been laid down, and it will keep me away from the internet shops over the next year whilst I blitz this debt!

Positive Mental Attitude!

lotti379

SOA to follow later when I'm not at work

Just a quick note to say I've PADded a grand total of £1.64 today, and edited my spreadsheet so it updates the % paid off every time I add a little more into that "paid" column.

So now at 7.52%

The problem will be not letting it get higher. As has been rather painfully brought home to me this month, I spend more than I earn. :cool:

lotti379

PAD today of £5.

Going to run with rounding down to the nearing £5 each day rather than the nearest £1, and see how we go with that.

I know I've frittered a lot of money away over the last month, so am not sure it is truly representative. A few big changes are also due over the next few months so this diary should be a good place to mull over the best changes to the budget.

Hard to believe, but I do ostensibly have a monthly budget. I just don't stick to it... :mad:

trishx

Hi Lotti,

Just followed you over from the Crazy Clothes Challenge page

I used to have a massive issue with monthly budgets too (there were always extenuating circumstances - "oh but I had to pay my car insurance this month, that's why I'm over" etc, etc every month) - I finally cracked it when I discovered the "You Need a Budget" (YNAB) software - budgeting little amounts for the "lumpy" payments each month suddenly made everything much smoother and I could see where my money was going. Maybe you do that already with your spreadsheet / SOA but it was like an epiphany for me! I'd recommend you check out ynab.com if you haven't already (there is a 34 day free trial). I'm not on commission or anything, I'm just a total convert, being able to enter spends on my phone made all the difference for me and I've actually managed to stick at it for almost a year (no hunting around for receipts anymore).

Anyway, good luck with your debt plan and also the running!

beanielou

Happy shiney new diary

lotti379

:hello:

So nice you see you!

trishx - I had a look at ynab - it looks like good software and I had a thorough look at the "four rules", definitely some good advice there!

Tammy - I have to admit, the regime is a little scatty at the moment! I'm running between 6 and 12 miles a week, looking to up that (obv by a LOT to attempt a marathon!). I only started running regularly in April really, but I love it. Fantastic way to chill out after work! Clearly you're an early morning person?

lotti379

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.................... 1
Monthly Income Details
Monthly income after tax................ 1397.37
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1397.37
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 485
Management charge (leasehold property).. 0
Council tax............................. 0 - I rent a room all bills included, so that accounts for most household stuff
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 16.76
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120 - budget between £80 and £100, this is more like the real figure
Clothing................................ 25
Petrol/diesel........................... 200 - should reduce from September as boyfriend moving location
Road tax................................ 0
Car Insurance........................... 90 - including breakdown and business miles. Need to rethink this or allocate work expenses better!
Car maintenance (including MOT)......... 0 - well, the plan is to put away money but it never seems to happen, same goes for road tax
Car parking............................. 0
Other travel............................ 0 - this may well increase from september for same reason
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 - need to go to dentist and optician soon, not budgeted for. Can you see a theme?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 - probably should have
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 100 - if we include "miscellaneous" this is probably a lot higher
Holiday................................. 130 - slightly complicated. Gone through on the July yomper thread...
Emergency fund.......................... 0 - not sensible
Fitness (yoga/running).................. 50 - 3x yoga classes per month, race entries, money for new shoes (actually needed, I can see my socks through the holes in the current ones. If don't get soon-ish will probably need more chiropractor treatment, so more cost effective to just buy new shoes...)
Total monthly expenses.................. 1246.76

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Supermarket CC.................1238.01...0.........0
Family loans...................8140......100.......0
Overdraft......................500.......0.........0
Total unsecured debts..........9878.01...100.......-

Monthly Budget Summary
Total monthly income.................... 1,397.37
Expenses (including HP & secured debts). 1,246.76
Available for debt repayments........... 150.61
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 50.61
Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,878.01
Net Assets.............................. -5,878.01

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

lotti379

So the entertainment/miscellaneous/fritter part of the budget stands out for me.

As does the petrol :eek:

(As does the holiday fund, but I'd really rather not go into that just now)

It really surprised me that the SOA calculator only came back with £50 spare each month! I was guestimating some of the categories, trying to be honest and I know where I have tripped up this month, but I honestly thought in a "regular" month I would have more unallocated cash.

Clearly I have been labouring under a misapprehension! :cool:

So my goals are to clear my debt, build up a savings fund and have enough in the bank to pay for car insurance etc upfront rather than by direct debit. I have been reading up on some of Martin's advice and - since all my debt is at 0% - have applied for an ISA to put any extra debt repayment money aside into before paying off a chunk at a time. This is to get in the habit of siphoning off a chunk into a savings account each payday. Hopefully I'll get addicted to seeing that positive number grow and it'll inspire me to debt-bust/save in double-quick time!

As my household outgoings (bar groceries) are pretty fixed I think the focus has to be on cutting back. Perhaps I should hot foot it over to the OS board? I do find them a little scary sometimes there though...

Nicky_Noo_Na

Good luck with your goals Lotti - I'm interested to see both how you save money and how the marathon training goes!

trishx

Hi Lotti,

I think your SOA needs to be for an 'average of months' not for an 'average month'... if that makes any sense. You might not budget anything for Car Tax each month but the SOA should include the annual amount divided by 12. Also you might be spending £130 on a holiday this month but do you spend £1560 over the whole year?

How come you've included business miles? I'm assuming you get reimbursed by your employer (if you're self-employed it should really come out of your business accounts).

It's a tricky one though, like you say, so many of your costs are fixed that you don't have a lot of room to manoeuvre... You should definitely start with working out where the entertainment / miscellaneous money - I was amazed what a difference it made to me once I got a grip on the fritter. I found that easier than doing most of the stuff on the OS boards - great tips but most of them are very time consuming. Simply not buying something doesn't take any time at all

Is the family loan really at 0%? Are they really ok with waiting 7 years to get all their money back or are they expecting you to up your payments when you can afford it? It's fine if they are happy to wait (especially considering inflation) but I'd be worried that it might cause strife if they get wind of the fact you're setting up an ISA before paying them back. Personally I'd want to be making extra payments whenever possible just to show good will (private loans are always awkward), of course it depends on who the loan is from and their situation. Also watch out for overdrafts - banks are known to take them away.

Have you heard of Park Runs? Free weekly timed 5K runs. See if there are any in your area, that might help you get your "race fix" and reduce your entry fees. Plus it's all training

Well done for doing your SOA though. Good luck. xx

lotti379

Hi, just a quick dash in and out as have another early start in the morning...

Thank you trishx for some really useful feedback, I shall address your points properly soon, but it is appreciated!

I think the main point is to prioritise my "spending", i.e. the number one priority is to get rid of the debt and get some independence back. I suffer from a bit of the green-eyed monster though, and want the lifestyle I percieve others to have. Not meant to be an excuse, just that I'm aware of the trap I fall into (and I am sure I'm not alone).

Anyway, not much to report really, got a couple of weeks break with family from friday so the focus will be keeping within the piggy banked spends. :cool: