Our Journey from Debtdom to Freedom

hazeldreams

So our debt busting efforts/moans/groans etc kinda pale into insignificance after the tragic events on Wednesday. Nonetheless, I feel privileged to have the luxury of life and choices and I'm more determined than ever not to waste the opportunity that we have as a family to rid ourselves of debt.

Hubbys pay day today so first step will be to allocate budget for next week and April. Not too much planned this weekend besides the family for dinner on Sunday for Mother's Day. One of these days I'll get a Mother's Day/Xmas day off (well I can live in hope!) :rotfl:

Happy Friday!

hazeldreams

Just 3 days until receive my annual bonus and get to clear a lovely lump sum off the mortgage. Should take us up to 55% cleared which I'm thrilled about! It really is starting to feel as if we're at the summit and it'll be downhill all the way from here on in.

Daily goals update for today:
1. [STRIKE]I had a NSD today/I stuck to my budget today[/STRIKE]
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 mins today
6. I exercised for 30 mins today
7. [STRIKE]I completed 30 mins work related reading [/STRIKE]

Had to buy lunch today as Mother's Day celebrations left me short on time to prep my lunches for the week yesterday. Planning on fixing this tonight!

Pleased with 5/7 goals achieved. Going for same or bettter tomorrow.

hazeldreams

Quick March update
[STRIKE] 1. I stayed on budget/I completed 16 NSDs[/STRIKE] really did horrendous last month. Not being able to clear the £2000 made us totally and utterly lose focus
[STRIKE]2. I cleared £2000 this month of debt[/STRIKE] We paid £1650 remortgage fee, but this will save us over £800 over 2 years in interest
3. I lost 2lbs this month - I've lost 6lbs in the last 2 weeks, would love to say it's through trying but I'm afraid it's health related!

On the good news front weve cleared £6500 off one credit card and closed it down from my lump sum which I received last week. We've kept back the rest for the moment as we're at a bit of a cross roads. We desperately need a second car. As I've not been too well, running for trains and buses is getting harder and harder! I've been having to get to hospital appointments and borrowing my sisters car more and more as hubby has our car at work. With DD1 going to high school in September, we're not going to manage on one car for much longer as she'll also need picking up and dropping off at bus/train stops. The problem is we don't have the capital to buy one outright and if we take a lease we definately won't make clearing all debt within the next 322 days as we'd lose the ability to clear £2k every month. Really don't know what to do. There is a chance my income will rise if a new job opportunity comes off but I don't want to bank on that.

Lots of thinking to do ....

hazeldreams

So...it's been a while :rotfl: but at least we're back!

It's been a tough couple of months with school appeals, job interviews, health issues...but despite overspending as our minds have been focussed elsewhere, it's not been catastrophic and we've used YNAB 100% of the time, everyday as usual.

Let's start with the most significant changes...
1. We bought a second car on lease (not PCP)
2. I got a new job
3. We've started saving £375pm for the girls Uni costs
4. We've decided we can't live without a holiday abroad every year!
5. We've been forced to rethink our goals in light of 1-4! :rotfl:

In my last post I mentioned how desperate things were getting not having a second car so we had to make a decision and after reviewing all of the options we opted for leasing. This is where you don't get the option to own the car outright, it's lower monthly payments and upfront cost and you just swap it in at the end of the 4 years. It's not very MSE. That said, we didn't have the funds to buy one outright, we don't want to own another car that will depreciate by thousands the very second you drive off the forecourt (we bought our other car for cash) and we didn't want to be stung with a hefty bill at the end of the contract with PCP as many friends and family have been. So best option for us was contract...car arrives in approx. 14 weeks, just in time for DD1 going to high school.

So, I also got a new role. This will pay for the car monthly payment :T and some of number 3, the savings for the kids. :T

Having not been too well, it gave me time to run through some numbers and I realised that if we didn't start saving soon we wouldn't have enough for the girls to go to Uni. When I weighed this up against clearing the debt by 40, it was more of a priority. It was a tough decision, but the right one and this has all been paid into my sharesave at work. It makes total sense particularly given that I get a 20% discount on share prices and there are associated tax benefits. Plus the potential for growth far outweighs the 0% interest I pay on the credit cards. I'm toying with the idea of adding a further £125 into a separate scheme called partnership shares which has the same tax benefits and some share matching from my employer, but no decisions made just yet.

Yep, we will be having a holiday abroad every year! We simply cannot work this hard and not find 2 weeks a year to get away from it all and really spend quality family time together. Therefore, each year we're going to set aside my annual bonus for holidays. Another hit for the debt mountain, but again a necessity...we'll never get this time with the kids back and they are growing up way too fast...

So...we won't be achieving debt free by my 40th birthday. But maybe achieving it at some point in my 40th year will just have to do!

I'm still working through the figures and decisions, but will update balances and countdowns soon..

It feels good to be back and in control.:)

brizzledfw

Just catching up...sounds like excellent progress and I agree with you re the saving for kids, reliable car etc. In my book, its about spending thoughtfully that really counts. You'll get to be DF...even if not by 40..by 41, or 42..you're on that journey and thats what really matters.

And...huge congratulations on the new role..well done

We are putting funds aside into the big trip abroad later this year for a big family occasion; pension and ISAs..means less for debt busting and even less for mortgage OPs..but its working for us at the moment. Thats what matters. Also working at clearing the freezer and cupboards...its working so far

crunch_time

Totally agree with everything you've said. No point to working towards debt freedom if you forget to live along the way!

Xx