Blinkers are off

Eyes_wide_open

I have been through a really rough time in the last year and this has affected me both mentally and financially.

A couple of weeks ago I woke up and faced up to reality, yes I feel back to normal however my regular 'sod it' moments had had a monumental affect on my already poor financial situation.

I have always paid the bills but quite regularly only repaid the minimum repayments and by the end I realised with what I was paying out I was left with £100 - £150 per month and I certainly wasn't spending to match.

So I sat down and worked out what I owed and applied for a consolidation loan and I have repaid the majority of the large credit cards. Still have a couple of hundred pounds on a next card and a Evans card ( however plan to pay that off soon).

Yes I know I have 5 years to repay the debt but my intention is to repay sooner.

I have started a shopping diary and know exactly where I am financially. Writing things down has really assisted as It has made me aware of exactly what I am spending and I think about it rather than just spending.

I have set up a standing order for an emergency account - £50 per month as previously I have thought that's what you have credit cards for!!

I have not set any specific budget for food shopping - there is just me and the cat, but would like some help in identifying what an okay budget would be, to include lunches, cat litter, cat food, cleaning stuff and all other foods. I don't drive and don't live near a lidl or aldi so rely on tesco / sainsburys.

Previously I would do online shopping every week but as you had to spend over a certain amount I would buy the extravagant ranges or buy more than I needed and through stuff away ( gosh for a relatively clever person, I know I was stupid!!)

So decided one online shop a month for delivery of heavy cat litter, cat food and tins, frozen stuff etc. I shall then just do weekly shop for bread, yogurts, sandwich fillings and fruit and veg.

I don't want to be totally frugal as I know I won't stick to it and will rebel put know my previous way was just plain stupid.

So my goals are-

1) To continue with the spending diary.
2) Monthly online shop - weekly shopping of what I need.
3) £50 standing order to emergency fund.
4) pay off both store cards by the end of 2013.

Andrea

LittleMissDetermined

Hello there, well done for starting your debt-free diary.

I keep a spend diary and have found that it's been really useful in curbing the needless or frivolous spends - I had no idea where my money went previously and since I've been keeping track I've been able to pay off more debt and squirrel more away to my emergency fund.

The payment to emergency fund comes out as soon as I have been paid so I never notice it go.

Another thing to consider if it's just you and the cat is to so some bulk cooking and freeze it in portions. I do this regularly and love my slow cooker - The only advice I would add to this is to label up the tubs... I ended up with chilli instead of bolognese once, it doesn't go well with pasta! :rotfl:

Anyway, I wish you well on your debt free journey. If you haven't already you should have a look at the payment a day thread below.

https://forums.moneysavingexpert.com/discussion/4629473

This has been the biggest influence for me to really start to take control of my finances.

Lots of luck

LMD x

Eyes_wide_open

Thanks LMD - definitely need to start batch cooking and I shall have a look at the payment a day link.
Standing order has been set up on the 1st so hopefully I won't notice it going from my account.
Do you think I'm best paying extra off my debts or putting the extra in my emergency fund - to build that up first?

LittleMissDetermined

Eyes_wide_open wrote: »

Do you think I'm best paying extra off my debts or putting the extra in my emergency fund - to build that up first?

I like my emergency fund to be at a certain level (£500) just in case, my car is not so reliable these days so at least I know if anything happens I can get it fixed.

I guess it all depends on the emergency you may anticipate, some people say a few months wages in case of illness or unemployment, some a few hundred in case the washer konks-out. It is very much a personal thing. Some say you don't need any and to clear credit cards instead as these can be used in emergency but I know my mechanic won't take cards so I save the cash.

You will probably find that by keeping tabs on what you are spending you'll have more left at the end of the month to put towards an outstanding debt anyway!

Eyes_wide_open

Got my monthly tesco order - cat litter split at bottom and some apple bruised. Just complained and got a refund of £11 ( a quater of my my shopping bill ) - bonus.

Not complained before so my money saving mission must have gone to my head xx

LittleMissDetermined

Eyes_wide_open wrote: »

Got my monthly tesco order - cat litter split at bottom and some apple bruised. Just complained and got a refund of £11 ( a quater of my my shopping bill ) - bonus.

Not complained before so my money saving mission must have gone to my head xx

Start as you mean to go on, you could use that £11 as an extra payment off a debt. It's money you wouldn't have had if you'd not made the complaint

Eyes_wide_open

Thanks LMD, think I will concentrate on paying the two cards off and my emergency fund until new year. I shall then stick to paying off the loan early and pay the £50 monthly into my emergency pot.

Really don't want to use credit cards as my emergency pot as it would just be too easy to say to myself - just this once and for me to lose all track again.

Once the £11 is back in my account I shall pay it into my emergency fund.

Xx

Eyes_wide_open

Had the same thought - the £11 will not be frittered xx

Eyes_wide_open

Just realised that today was going to be an NSD. Yes I had a tesco delivery but ordered it yesterday ( so not sure if it qualifies anyway). Tesco however had other plans and failed to deliver sandwich thins so had to go out and buy them from elsewhere. Otherwise it would have been a shop purchased lunch tomorrow and co-op on the way home.
On the plus side I only brought what I went into get from the co-op, even though there were tonnes of reduced priced items ( no room in the freezer and would have eaten them just for the sake of it)
So although not an nsd officially, I didn't impulse buy anything which is a huge achievement for me x

Eyes_wide_open

NSD day for me today and so far so good.

I had a £16.25 bonus this morning. Purchased something from an online store over a month ago and never received the item. I chased it up with the company, whose after sale care was non existent and they failed to respond. I paid through paypal and raised a dispute. This morning I received confirmation that the money had been paid into my paypal account.
It's now been transferred into my current account.

In addition I made a small claim for expenses at work, normally if the amount is under £5 I don't bother - too much effort. Well not from now on. £1.90 claimed.

So collectively from yesterday I have £11 (tesco), £16.25 (paypal) and £1.90 expenses = £29.15.

Going to transfer the whole amount into my emergency fund, no frittering for me.

LittleMissDetermined

Hurrah! You're really getting into this, well done