WTBSEs 'Starting From Scratch' Savings Diary.

JoJoC

I'm really very much an amateur when it comes to finances so I really can't advise you but I firmly believe that as long as you trust yourself with the credit card to curb your spending and ensure that you do pay it in full every month then you should just do what you need to do to get you by for the first few months.

I need to take a serious look at our finances and my signature.

We had a pretty hefty bill for car repairs this month on husband's runaround. I think this'll be the last one before we potentially fork out for a new-to-us runaround. So that, combined with paying our years car insurance for both cars up front and paying off our overdraft this month means that I'm now down £1k in the savings department.

I think in future the plan will be to start a car expenditure account to take into account these things. We usually pay the insurance monthly but we were saving a good bit by paying it annually so made sense to just use the savings.

This is frugal month. The only extra spending I need is for my mum and dads 30th wedding anniversary and possibly a meal for mine and husband's fourth wedding anniversary on 26th. Other than that, I'm hammering the savings!! Must build it back up.

Hope you're not getting too stressed about the income vs outgoings for the first few months. You'll make it work!

I'm knackered so off to bed and will sort out my money thoughts in the morning.

atush

WantToBeSE wrote: »

Thanks atush Yes I am still paying NI Conts to keep up the state pension. I am going to be setting up as a Ltd Co I think, in the not too distant future and have learnt from this forum that I pay myself PAYE and pay my NI Conts that way.


I am going to have a LONG and hopefully informative discussion with HMRC on Wednesday.


Well done on using your CC for cashback, LOL, at least that's something! Where about in the US are you from? I have friends in the US. One in NYC, one in Pennsylvania and 1 in Connecticut. I would love to go and visit some day

I am from Maryland just outside DC, and am now based (in that I own a house there, pay tax there and vote there) in FL. The wedding was in ohio.

A limited Co is a GREAT idea. No downside re losing your house should your busness fail with lots of debt (unlikely in yru case anyway). BUT you have a huge future possibility- open your own company executive pension. Pay into it via the company and no income tax or nics and you save company tax (corporation tax).

Obv this would be int he future once you have 'spare' income/earnings in the company.

atush

2 kinds of debt aren't bad- mtg debt and 0% interest debt.

Which if you pay your cards off in full ALWAYS your CC debt will be.

If you have had bad debt, Aqua is good as it is a 'debt repair' card. So use it responsibly and then you will have good enough credit to open a better card- one with lower rates and 'perks' like cashback, tesco points, etc. All my card currently Give me something for using them, and they are always paid off in full (or have been for over a decade lol).

You after all will need a 'float' this month to get thru till you are being paid by clients.

WantToBeSE

Afternoon All


Jo- have you updated your signature yet, or do you need to do all the sums first? I am sure you'll build that £1K up again really soon.
I too think its a good idea to have a car expenditure account. I currently just use my savings account to pay for that kind of thing, but I think I am going to use my e-savings account instead. That way I know what's in my savings doesn't get touched, and what is in my e-savings is like an emergency fund.
I have to admit that I am quite worried about not having income for potentially 8 weeks. If they all pay within 48 days of being invoiced, it'll only be 5 weeks, but I cant imagine that'll be the case! I am worried, yes.


atush-its not so much that I have had bad debt, its more than I have never had credit and been self-employed. However, I have been successful in my application to Aqua, so we'll wait and see how much the credit will be. After working out all of my sums, I'll only need £200 for the month.


It does, however, mean that I am going to have to be SUPER strict with my food budgeting (as well as all budgets, but this one especially).
It's OK, it'll be worth it in the end

Eco_Miser

WantToBeSE wrote: »

Not all debt is bad, right? I have heard this being talked about elsewhere on the forum, but cant remember in what circumstances debt is supposed to be 'good'?

Debt is 'good' when it makes you a profit (or at least saves you money). So buying a house on mortgage saves you lots of rent; buying stuff for your business on credit lets you use that stuff to make more money; buying food and petrol on a card will help bridge the gap into entrepreneurship. An example of good debt Martin has used is buying a car on credit when the car is necessary for getting to a job.

Simply buying stuff on a card and paying at the end of the month isn't bad either, so long as you don't spend more just because you can.

WantToBeSE

Thanks for the clarification EM In this circumstance, I am pretty sure that I can only spend what I need to (and hopefully less than that!).


This morning I am off to stock up on products and get cloths and a new hoover. I am actually buying it all from the old owner at a discounted price Still, I'll make sure that I keep receipts.


Then I am going to meet my new employee and show her the rota that she'll have and explain a few bits and bobs before she starts shadowing me next week.

atush

Yes, you'll want that new hoover before the good ones run out lol. Tools of the trade.

WantToBeSE

Everything done!


We use Henry Hoovers atush, and they are only 1200 watts. I think its ones over 2000 watts that are being withdrawn from sales. Phew! I love the Henry, they do great jobs!


So, everything is done...now I just have to do my housework, email and phone clients, and then take my son to the dentist!

WantToBeSE

Just putting these links here, so I don't lose them:


http://www.hmrc.gov.uk/payerti/getting-started/new-employer.htm


http://www.hmrc.gov.uk/payerti/employee-starting/new-employee.htm


I need to call HMRC today or tomorrow..

MrCrimeFiction

Wow your doing fantastic. Keep going. I've just joined and just started saving after a silly period of spending. Good luck and keep going x