Our Journey from Debtdom to Freedom

hazeldreams

So we're fast approaching the end of the year and the start of another and given the very short window we've left ourselves to get this debt gone, the pressure is mounting somewhat!

We HAVE to find ways to cut back further if we've any chance of making it anywhere near to our goal. I've started to make a list of the things I'd never considered cutting back on before and here's what I've come up with so far;

Average spends per month:
Hairdresser £35pm
Alcohol £100pm
Eating out £69pm
Birthday/Xmas £260pm
Family days Out £105pm
Family holiday £180pm

Total £749pm

Then there's the groceries - we did great in November but the freezers and fridges were absolutely full to bursting as we'd over spent in October so it wasn't a real victory I'd quite happily live vegetarian and save on the cost of meat but hubby wouldn't agree to it in a month of Sunday's!

I've signed up for YNABs "aggressive debt repayment" and "take control of your food budget" tutorials and I'm reading "the recovering spender" by Lauren Greutman in a desperate bid to find new ways to hack at the debt next year and reach our goal. Initial estimates indicate we need to find an extra £700pm taking our total to £2733 debt repayment per month!!!!:eek: that's 60% of our net monthly income....is that even possible??? Well, I suppose we'll find out within the next 443 days:rotfl:

Whatever happens whether we ultimately win or lose this debt battle ....it's time to get really, really, really serious.

hazeldreams

Eek it's been way too long since I last posted! Although pretty sure it may have lost a post somewhere!

Ok so finished "the recovering spender". Found it ok - definitely some bits and pieces I can use. Also read "rich habits" Tom Corley. I found this slightly more practical in helping me breakdown what we need to do daily, weekly, monthly yearly and so on to achieve our much coveted debt free, mortgage free status. Result - clearly defined set of 7 daily goals/habits along with 3 weekly, 3 monthly and 2 yearly goals/habits.

Attended YNAB webinar - 9:30pm on Saturday night, I'm so rock and roll!! :rotfl: it was a good overview but nothing I didn't already know. It did prompt me to reorganise all of my categories though; I now have a "spends to eliminate" section and "spends to reduce" section. Those to be eliminated next year include meals out and nights out and holiday (sad but got to be done); those to reduce are Xmas, birthdays, hair, clothes, alcohol, family days out.

Whilst no news on the restructure front at work I did achieve the yearly rating I needed to clear a good bonus April 17- all of which will go towards the debt and really propel us forward (working off last years bonus but this of course is never guaranteed!)

NSD today 3 so far not bad but could be better. Grocery budget isn't good but we have had to cater for extra this weekend and next!

Really looking forward to Xmas break! Very exhausted!

hazeldreams

Morning!

All progressing well here...probably the best December we've ever had budget wise. NSDs a bit behind plan but all categories well within budget so can't moan! Still haven't bought stocking fillers for the girls have got to get that done early next week! Very low spends planned on that front so it shouldn't take too long to complete!

Have made a few extra overpayments here and there as well (should be able to make a few more this weekend too) from bits of s/e income. Expecting another £50 this weekend too - not much but it all adds up - will send that to the debt mountain too!

We've a lovely weekend coming up lots of time with family and friends planned so I'm starting to feel Christmassy now!

Happy Friday folks!

hazeldreams

Happy New Year All! Wishing everyone lots of love and happiness for 2017!


We've all had a lovely festive period here, nice and quiet and low key - just perfect.


Planning to keep chipping away at the debt mountain has continued and is ready to put into action. This is a big year for us, it's make or break in achieving our goal to be debt free by 40 in Feb 2018!


We've got to make lots of sacrifices to get there - but we're ready and willing to do it - it's going to be incredibly tough but I'm optimistic it will strengthen us as a family.


We need pay off a total of £2700 per month to hit this goal (not including bonuses) it's a massive stretch - 62% of our income and we know we won't achieve that most months, but we're adamant we'll do our utmost and congratulate ourselves the months that we do actually achieve this!


We're focussing on the following areas to bring down our outgoings by up to £700pm;


Goals
1.Groceries £5k spend last year;we're aiming to drive this down to £3600. I've built a humongous spreadsheet to manage inventory/prices to enable us to better plan what we're eating and spending
2. Birthdays/xmas - aiming to half last year spend of £3000 by budgeting less for DDs
3. Holidays - £2300 - This budget will come down to just £500 because we're not going to take any holidays this year! (Except in our tent!)
4. Clothes - £2000 -we're aiming to half last years spend by using charity shops and only purchasing what's absolutely vital to need
5. Meals/nights out - £1800 - aiming to reduce by 70% by just going out to eat for a birthday/special occasion
6. Health/beauty products £1300 - aiming to half by dyeing my own hair, not buying any make-up.


All of this should find us much nearer to £2700 per month to clear.


We're off out to a lovely NT site shortly to enjoy the last of the bit of family time we have left to enjoy, so best be off!

hazeldreams

Morning!


December was a month of planning for us and helped by the personal finance literature I'd read last month, I was able to commit these goals to paper. I found Tom Corley's "Rich Habits" particularly useful to align my priorities and goals. They're quite personal but I've decided to share them here on my diary because I know that this will allow me to revisit them regularly and keep me focussed and motivated. I also found a Dalai Lama quote which sums up pursuit of goals nicely..


"There are only two days in a year that nothing can be done. One is called yesterday and the other is called tomorrow, so today is the right day to love, believe, do and mostly live"


Daily, Weekly, Monthly, Yearly and Long term Goals

Daily

1. I had a NSD today/I stuck to my budget today
2. I limited my portions and chose healthy options today
3. I didn't drink alcohol today
4. I paused before reacting to kids
5. OH and I talked for 20 minutes today
6. I exercised for 30 minutes today
7. I completed 30 minutes work related reading today

Weekly

1. I completed 4 NSDs this week
2. I visited Mom and Dad this week

Monthly

1. I stayed on budget/I completed 16 NSDs this month
2. I cleared £2700 of debt this month
3. I lost 2lbs in weight this month

Yearly

1. I cleared £40k of debt in 2017
2. I cleared all unsecured debt by 1/2/2018
3. I lost a stone/I maintained 1 stone loss

Long term

1. We cleared our mortgage by 1/2/23
2. We cleared our buy to let mortgage by 1/2/27
3. We retired at 57
4. We built a uni fund for our DD's
5. We built a house deposit fund for our DD's

I'm making sure I read this list every day to keep me focussed and motivated - it definitely helps to have the end in mind!

brizzledfw

Wow. Just wow. That is a great post, Hazel. So clear and well, concise. You should be happy with those. I may have to nick that idea as it resonates with me better than some of the other methods that are set out in the PF books etc. Thank you in advance!

Keep posting! Have a good day

Honeysucklelou2

Really like the setting out of short, medium and long term financial plans. What a great idea.

hazeldreams

brizzledfw wrote: »

Wow. Just wow. That is a great post, Hazel. So clear and well, concise. You should be happy with those. I may have to nick that idea as it resonates with me better than some of the other methods that are set out in the PF books etc. Thank you in advance!

Keep posting! Have a good day

Thanks Brizzle! I've always been really good at this planning lark, just the executing that I'm still learning! Ha! Enjoy your planning! x

hazeldreams

Honeysucklelou2 wrote: »

Really like the setting out of short, medium and long term financial plans. What a great idea.

Thanks Honeysucklelou! I would recommend reading the Tom Corley book, very different, simplistic but hopefully effective!

hazeldreams

So healthy eating kick started yesterday, and therefore satisfying daily goal no 2 and hopefully, the monthly and yearly goals to get me fit for 40!


It's a well known plan which is high in protein (no, not the atkins!) which you follow for 90 days along with high intensity interval training 4-5 times a week. I'm sure it'll get me great results if I stick to it, but as an ex vegetarian, eating all this meat is really, really tough and expensive (hence the horrendous spend for groceries this week!) I'm going to give it a go this week, but already feeling that it's unrealistic budget wise as well as not ideal for us (we're used to eating meat just twice a week)


Back to work on Monday for me, so a weekend of preparation is in full swing...ugh isn't the return to work the worst after a break?!