The 2 Year Freedom Plan & 2015 Beat The Budget Challenge

I_want_a_baby

Welcome to my shiny new diary.


I actually found this forum when my husband was in an IVA and it helped so much. To give a little bit of background.

• Husband had approx. £44k debt.
• He went into IVA
• We paid off as much as we could and ended it early.
• I took a £10k loan out to pay off the IVA and we paid the loan off in a year.
• We spent the next year getting married (all £8K paid for in cash) and rebuilding our savings.
• We have had two children (and have one due in March).
• We have moved into three rented houses and currently live in our first mortgaged home.

The reason I am creating this diary is that we are currently about to move in with out in laws, which means:

• We have borrowed approx £12500 to renovate their home so it now feels like our home ready for our big move (they have moved across to a newly built annexe).
• We have got consent to let on our mortgage and my sister will be renting it from us - we have organised contracts/deposits etc to make it all official.
• It is the first time we have had any debt at all since the dreaded IVA and I want it gone.

My dream plans are as follows:

• Pay the loan to parents off by December 2016 so approx 2 years.
• Once overpaid build savings up for 6 months.
• Once savings are acceptable then start overpaying mortgage to bring the capital owed down and therefore make the difference between the rental income £600 and the mortgage payment £500 a bit bigger and more comfortable.

I should add I have not worked properly since being a SAHM in 2009 and only very small ad hoc part time jobs. I do not plan to return to work properly until baby no 3 (still a bump) starts school.


I will post another post shortly with how we will plan to make the loan repayments and other savings :-)


IWAB xx

I_want_a_baby

The Freedom Plan:


Part of the agreement when we live with the inlaws is that we will pay the majority of the bills but not pay any rent.
They have no mortgage so will benefit hugely from us paying the bills.
We will pay all of the council tax, phone bill, line rental, broadband, tv licence, sky tv (if we have it). We will also pay 70% of the oil tank being refilled, 70% of the electric bill and 70% of the metered water supply.
We have also had to buy a 2nd car as due to moving from a town to a village I will need a car to get my son to school and my husband will need to drive to work. We used our savings to pay for this.


The rental income of £600 will cover our mortgage payment of £500. The rest will be allowed to accrue to cover any repairs/insurance/boiler safety check etc.


We also save £127.50 per month (yes my budget is very exact, I budget a small amount per month for everything and let it build up until it needs to be paid).


So when we move we would in theory have £500 + £127.50 available.


However after we budget for the additional bills plus the 2nd car expenses and fuel we have £315.50 left.


So initially we will be paying a standing order of £300 per month to repay the loan to parents.


However I want to clear the loan by dec 2016 (2 years) so I plan to save the £15.50 leftover, the money when we have a council tax free month and ANY additional income. Plus I want to save as much as I can by underspending on all the bills and budgeted columns on my spreadsheet.


We may be heavily in debt but I learnt last time how to be frugal ;-)


I will post as much as I can (hopefully daily once we are in and settled) but a minimum of weekly.


I will list all the small savings I have made and how much I have managed to save to pay off the loan.


As a start I have counted the sealed tin which stands at £50.85 & my virtual sealed pot (an online savings account) which stands at £19.65. I have transferred the £50.85 from next months food budget into the VSP so that the £50.85 cash will sit and wait to be spent on food next month and the total of £70.50 waits to be paid off the loan.


I am waiting to find out the exact figure owed as there are still a few bills to pay.


Let the freedom plan commence :-)


IWAB xx

I_want_a_baby

Just counted my cash purse which stands at £87.30 this is for all food, cleaning products, medicines etc until payday on the 30th.

Providing we don't lean on convenience foods too much during the move we should manage on this just fine.

It really would be nice if I could add some pennies from this to savings but that may be a bit ambitious for such a busy few days.

I have also got some minced pork out of the freezer to make a chilli con carne and I've got some bolognaise out to make a lasagne with to give us some quick and easy meals.

I am currently led up with a cold and a sickness bug so not able to get a lot done just yet.

Back soon

IWAB xx

roxy7699

Joining you on your journey.

x

I_want_a_baby

Hi roxy

Well did spend a bit today - did a top up shop, went to both lidl and then morrisons to get the best prices.

Bought a few birthday presents too but used cash from the food purse for these as well.

Also bought descaler for the kettle, a washing machine cleaner to run through it before we move and the oven pride oven cleaner that everyone raves about. Hoping to get the oven spick and span without paying the professionals.

Had a very productive weekend at the new place. Finally got the ceiling put up in the office and bedroom, the stud wall between and it's all been plastered. Spent the evening pulling up old carpets, sweeping up rubble and dust and finding rubbish to burn.

Glad it's starting to look more like a house than a building site as we are moving on Saturday. Need to check what the current balance owed is from 'the book' that the inlaws use to keep track of everything.

Anyway must go and do the next stage of the washing machine cleaner, put the kettle on for hubby who is due home in a minute, empty and load the dishwasher, iron his work clothes for the next working week and put the batch cooked chilli in the freezer.

I made chilli in the slow cooker 6 family portions and also 4 family portions of lasagne. To give me some quick meals for the next few weeks.

Must dash

IWAB xx

roxy7699

Wow amazingly busy weekend, you achieved loads.

freckles1_2

good luck x

I_want_a_baby

Morning all,

Very busy times here. Yesterday we spent painting, today is a packing day.

Did have some spends yesterday approx £50 on fuel and approx £45 on paint and brushes. But these were essential spends so that's good.

Also spent £30.25 last night as we went out for an Indian for my cousins birthday. It is the first time we have been out for ages and my cousin has been helping us loads in getting our new home ready so we wouldn't have missed it for the world. The food was gorgeous as well.

Things I need to do today:

Update banks/spreadsheet, meet friend in town, buy masking tape, drop off charity bags, out all washing away, put all paperwork away properly.

Right must dash to do the school run, will update tonight xx

I_want_a_baby

We are in :-)


The move went well although now things are a little chaotic!


There is still lots of DIY to do at the new place so things cannot be put away until shelves are created and the attic is boarded etc but we are now living in my dream home in the dream location and to be honest I feel quite emotional with how blessed we are.


I have spent the morning updating our banks & budgets. I am aiming for a very frugal October whilst we settle in and make our home. I am hoping to buy minimal food and use up what we have. Also I am hoping to draw cash out for the month and use only this as with so many DIY bits and bobs we have been buying the debit card has been used so much and we must pull our belts in and get frugal.


Our current loan stands at £11,361.35 & is projected to end up somewhere around £12,700.00. I have reworked the budgets to take into account our new higher bills and also set up the standing order to make the first repayment for £300 on 1st November.


As you know the reason for me joining the DFW forum is that I don't just want to pay £300 per month. I want to be debt free ASAP! So here is what I have managed to 'save' this morning:


£19.65 - Balance in virtual sealed tin (online saving account)
£50.85 - Balance in Cash tin
£42.46 - Child tax credit - saved in full
£ 2.39 - Save the change
£136.20 - Child benefit (paid every 4 weeks, I budget this monthly and this is the month where we get 2 payments so I have saved one of them)
£251.55 TOTAL saved towards additional repayments.


My goal is to get the savings to £1000 and then make this our first additional repayment.


I must dash. I am off now to do a small food shop, I have written a meal plan and I don't need too much.


I will update tomorrow (and hopefully daily) with any savings I make.


IWAB x

I_want_a_baby

Its payday!


Just did our banks and budgets and have put the following into savings:


£50.00 - holiday savings on hold for the moment
£20.00 - Cancelled national lottery DD
£5.00 - reduction in budget for house insurance
£10.00 - optician budget fully saved
£16.48 - Surplus from monthly budget
£2.39 - save the change
£103.87


New balance in savings account: £355.42 :-D


Very happy with that!


I have also drawn out my cash budgets for the month.
We have £100 in cash for food plus approx £40 in the change tin.


Tea tonight is from the meal plan so all organised & frugal!


Back tomorrow


IWAB xx

I_want_a_baby

So I've decided to join in with a stoptober challenge that a blog I read has started.

The aim is to spend as little as possible over the month.

I'm game! I would love to get the savings up to £400 by the 31st. I truly believe that by focusing on money, keeping track daily and saving the pennies as well as the pounds, amazing things can be done.

This is the first month on the new budget for the new home too so it will be a good month to frugal up and pull in the belts.

I've also pulled a nerve or something in my back so I'm currently sofa bound which I'm not sure will help or hinder the challenge?

IWAB x