A life less ordinary

Johnnybegood

I'm a spender, or at least for the first 39 years of my life I always was, that is until the much referenced light bulb moment occurred. I am now 42. I don't recall exactly when it was. I think I just became fed up, then quite cross and then rather mad with the amount of debt I was paying off each month. Or rather I couldn't understand why my wife used to get so stressed with our finances and that we never seem to have any disposable cash despite having good jobs and working full time.
Until this time I spent my life as an adult in a financial wilderness. I would have described myself as a care free spirit and that money didn't bother or affect me too much, (hey we entered into this world with nothing and we leave with nothing, right?). I was happy to let my wife struggle with the pennies and showed little interest or regard to our finances. I recall that now and again I'd sign a loan document or a credit card application. I hated discussing money or having to think about it too much. This would cause arguments in our relationship until the next consolidation loan was sorted and the pressure was released for a short time.
In short I was the proverbial ostrich head stuck in the sand jind of man. Bumbling along and asking my wife for money to buy things and acting like a resentful child when she said we couldn't afford it, which to be fair wasn't often and I normally found a way around a purchase, such as on tick or a loan etc. I now realise how financially immature, selfish and naive I've been.
Fast forward 3 years and I'm now a very different beast. I check my bank account twice a day, reads books and listen to podcast on money saving and money awareness and I'm the school PA treasurer!! I have taken over the family finances and I'm on a mission to be debt free.
I am the father or 2 fantastic children 6 and 8 years, live with my wife in the Kent Country side, both work full time and I'm going bald/am bald.
I've heard it said that the best spenders can become the best savers. At our worst our debt was the best part of £30,000. We are now down to £12,500, hope to be clear by this time next year.
I think I just got sick of constantly having too much month left at the end of the money. I want to provide a secure future for my family and live within our means. I have paid so much interest over the years it doesn't bear to think about it. My inspiration is 'Dave Ramsey', who is an acquired taste, a bit evangelical at times but whose message is clear and based on sound moral principles. I love his mantra though because its so true of so many people in this world struggling to keep up appearances, "We buy things we don't need with money we don't have to impress people we don't like".
Anyway, starting to ramble now, not sure why I've commenced this blog but it may either help me to remain focused or provide a smidgen of inspiration to someone else on their debt free journey. I will update my current financial plan in due course and share with you some of the frills and spills of my journey thus far. Temptation to spend on unwanted luxuries is never far away and is a constant battle. Stay focused people!
Take care for now Jim

NHS_worker_bee

Good work Jim, keep up the debt busting

Sholly

Well done Jim! Keep going!!

Johnnybegood

Need V's Wants
I really struggle with temptation, its an almost daily battle. There is so much in this world that I think I need when really when you strip all the crap away you are left with food, shelter, clothes, warmth and that's about it. I pretty much stopped buying any luxuries for myself when I commenced this debt free journey, however I'm weaker when it comes to my kids. I look around our house and see loads of areas that need attention. However the roof isn't leaking, its been here for 150 years and will probably still be here long after I've gone. I want to repair our leaky, rotten sash windows, I want to decorate the kids bedrooms, wife wants a new kitchen but it can all wait until Mr Loan and Mr Halifax and Mr Nationwide are paid off.
Its hard sometimes not to feel your life is on hold during this process. We are throwing £1000 at out debt every month. I have lots of conversations with wife that start, "if we weren't paying this debt every month....". I know it'll be worth it when we get there though. It will feel like a grand a month pay rise. Looking forward to that time, then Mr Mortgage can have a bit extra too. There is something quite empowering about saying NO to stuff. I think it gets harder as the debt gets smaller because a splurge is easier to justify. However I know my personality, so I will try to remain focused, although the kids really would like an Xbox for Christmas.....
Stay focused people
Jim

DollyDreamer

Lovely to read your diary so far !! Its inspiring keep it up. I am new to this and constant looking for ideas and ways to progress - Diaries like your offer us all hope

Johnnybegood

Gazelle like intensity...
I think one of the biggest stumbling blocks to becoming debt free is remaining focused for the long haul. I've got an addictive personality. I've spent my whole life going through phases of 'really being into something' with an almost scary drive and intensity before dropping it completely. I don't know if this is a man thing, but I can recall getting into golf as a teenager, getting my mum to order a set of clubs from the catalogue and then being really into it for 6 months before dropping it like a stone. Other fad's have included, gardening, cycling, and mini's (as in the car). Anyway I digress, the point being, I know that I need to maintain my focus and drive to stay the course to become debt free. Its easy at first once you've had your light bulb moment. You gain inspiration, read other success stories, plan your budget etc. Its 8 months down the line that it gets hard, the months appear to drag on in front of you with no end in sight, temptation creeps in to have a splurge, something blows your plans out the water like the car having an expensive breakdown or the boiler going up the swanney. Basically your debt free train comes off the rails and you can't be arsed to put it back on track, re stoke the engine and get it going again.
In my opinion, this is a pivotal point, and its situations like this that will define whether you will become debt free and reach your goal or continue that same old spiral of debt repayments. This is a critical junction because the truth is paying off your debt is hard work, bloody hard work, to keep going and maintain that relentless drive. For me its like running a marathon, just focus on the next mile, one foot after the other and you will reach your goal eventually.
For me I use anger to my advantage. I've got to the stage in my life where I'm really quite cross with my debt, I'm sick of it always being there, hanging around like a bad smell, I want to kick it out of my family's life for good. I want to punch it square in the face and drive it from my front door with a red hot poker. Whatever does it for you I believe you need to find that focus to stay on track and drive this crap out of your life. As Dave Ramsey would say get 'Gazelle intense', (which is the focus the Gazelle has to stay alive when its being chased by a cheetah).
Anyway that's enough waffle for me. So my advice is, get angry people, punch that debt square in the nose, be relentless, be focused, when you get sideswiped due that unforeseen happening, get up off the ground, dust yourself down and charge at that debt like a lunatic!!!!!

Johnnybegood

Remaining Debt as of right now....

Halifax CC £3,103.19
Loan £6371
Nationwide CC £2337.23

Total £11,811.42

Johnnybegood

SOA

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 1500
Benefits................................ 136
Other income............................ 0
Total monthly income.................... £3836

Monthly Expense Details
Mortgage................................ 1002
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 183
Electricity............................. 55
Gas..................................... 0
Oil..................................... 80
Water rates............................. 70
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 25
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 30
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 13
Buildings insurance..................... 13
Contents insurance...................... 13
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 2412


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
loan................................£6371.....254..........5.1
halifax cc.......................£3103.....550..........0
nationwide cc................£2337.....200..........0
Total unsecured debts..........£11,800.11


Monthly Budget Summary
Total monthly income.................... £3836
Expenses (including HP & secured debts). £2412
Available for debt repayments........... £1424
Monthly UNsecured debt repayments....... £1004
Amount left after debt repayments....... £420

Personal Balance Sheet Summary
Total assets (things you own)........... £400,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -£11,800.11
Net Assets.............................. -£388,199.89

Calling14

Well just popped on here so thought I would say Hello you seem to doing well on your own. Only comment I would make your water rates seem high? You on a water meter, saved a lot since I went on one.

Houses do need upkeep I have ended up adding to my debt this month 300 pounds to avoid matters getting worse.

Good luck Jim with your debt free journey

Johnnybegood

feel free to critique/advise the above. I've doone a fair bit of overtime this month so hope to throw some extra at the debt next month. Came close to justifying a new bike to myself this month, but remained strong and manged to say no. i've promised myself one once the debt is gone, paid for is cash mind!

Johnnybegood

Thanks calling,
My water rates are made up as
Southern water £46.10, (fresh water) and
South East Water £24 (sewage)

Southern water were under charging me so have adjusted the DD to compensate, hopefully it will come back down in due course