Small Steps Out Of Massive Debt!

GeorgianaCavendish

astrocytic_kitten said:

You’re doing brilliantly - debt neutral is fantastic! You’re sounding much happier and less stressed with things too ☺️

Thank you! I'm so happy to have got to this point, when I first started this diary I thought being debt free was impossible for me but now it feels like it could be achievable ... eek! 
On the whole I'm feeling much happier, but there are still a lot of ups and downs. I find this part of the month more difficult because it's when I have to allocate my money to different Monzo pots, make the debt and savings payments etc and I guess I still have the fear of not doing the "right" thing. I find it gets much easier as the month goes on and I'm just working on the budget / tweaking pots etc. I think having such big deadlines in April is stressing me out a bit (as well as working on them both simultaneously) and that is contributing to some of the 'downs'. However, I'm doing a lot better with it than I was even a month ago  

GeorgianaCavendish

enthusiasticsaver said:

I am glad that you are calmer about  money now and having a financial admin slot where you think about it then put it away in its box is working for you.  You are now used to living within a budget so you do not need to constantly be thinking about debt and you have the money pots so sounds like you are sorted now.  Your mental health is important so if reading diaries or some diaries is fuelling stress then step away.  

Thank you I think once the MBNA is gone (or it is my main focus) I will be even calmer - it feels like a lot of pressure right now but it is only for five months, I've got to keep reminding myself of that! 
The money pots are working really well and help make budgeting more tangible - I really struggled with it when it was just numbers in a spreadsheet! 

vixx_123

I have setup the bare minimum pots so far for the last two months and can already feel the benefit! I have gift fund, emergency fund, and holiday fund (mom's 60th next year!), and even though my bank balance looks v low, I know all my bills are sorted (separate bills account), my debt is being paid down, and I actually have money for my future self!! 

enthusiasticsaver

GeorgianaCavendish said:

enthusiasticsaver said:

I am glad that you are calmer about  money now and having a financial admin slot where you think about it then put it away in its box is working for you.  You are now used to living within a budget so you do not need to constantly be thinking about debt and you have the money pots so sounds like you are sorted now.  Your mental health is important so if reading diaries or some diaries is fuelling stress then step away.  

The money pots are working really well and help make budgeting more tangible - I really struggled with it when it was just numbers in a spreadsheet! 

Definitely a good idea to have money pots.  I keep the pots together rather than having lots of different accounts but it is lovely to have the money sat there waiting if a bill needs paying.  Our home insurance is due in December and used  to be a right pain to have to find that as well as pay for Christmas.  The bill came through the other day and DH was moaning about paying for both our cars to be serviced in November and new tyres etc then House Insurance and Christmas in December until I explained for the zillionenth time that this what the savings pot is for attached to our current account.  He just sees it as spare money no matter how many times I tell him it is not spare. 

GeorgianaCavendish

vixx_123 said:

I have setup the bare minimum pots so far for the last two months and can already feel the benefit! I have gift fund, emergency fund, and holiday fund (mom's 60th next year!), and even though my bank balance looks v low, I know all my bills are sorted (separate bills account), my debt is being paid down, and I actually have money for my future self!! 

I'm struggling a bit with seeing my bank balance so low as most of the money has been swept away into pots, but the feeling of having money available for things like gifts and insurance subscriptions etc without stressing is really great! 

GeorgianaCavendish

enthusiasticsaver said:

GeorgianaCavendish said:

enthusiasticsaver said:

I am glad that you are calmer about  money now and having a financial admin slot where you think about it then put it away in its box is working for you.  You are now used to living within a budget so you do not need to constantly be thinking about debt and you have the money pots so sounds like you are sorted now.  Your mental health is important so if reading diaries or some diaries is fuelling stress then step away.  

The money pots are working really well and help make budgeting more tangible - I really struggled with it when it was just numbers in a spreadsheet! 

Definitely a good idea to have money pots.  I keep the pots together rather than having lots of different accounts but it is lovely to have the money sat there waiting if a bill needs paying.  Our home insurance is due in December and used  to be a right pain to have to find that as well as pay for Christmas.  The bill came through the other day and DH was moaning about paying for both our cars to be serviced in November and new tyres etc then House Insurance and Christmas in December until I explained for the zillionenth time that this what the savings pot is for attached to our current account.  He just sees it as spare money no matter how many times I tell him it is not spare. 

I find it a bit strange to have the money available, and I'm in control of the pots   I really like it though, it is such a nice feeling to have the money for a birthday present already waiting - not trying to balance my 'spare' money for the month! 

Eventually I would like to get to the point of having built up a 1-3 month cushion in the pots, so that I've broken out of the payday-to-payday cycle. But that is a mid-term goal to work on after paying off MBNA, for now I'm satisfied with the progress I'm making by having the pots to begin with  

GeorgianaCavendish

Sent the form to increase my pension contributions from 5 to 6% to payroll today, it won’t take effect until the January pay run but it’s all done now. Also booked an appraisal slot with my boss, if I leave it to him to arrange it will be a 2 minute discussion on Christmas Eve and that’s not very productive for me. 

I had enough in my Subscriptions pot to pay for the annual YNAB subscription today. They seem to have charged me the US rate (worked out cheaper than UK rate by about £8) but the authorisation is still pending so will see if they realise and correct it. I’ve now started a pot for the 2021 subscription. I’ve jiggled around some of my other pots (saved on some expenses this month so paid a bit more to LISA). 

I’ve finished Christmas shopping, the only thing left to pay for is a grocery order to be delivered on 23rd. The basket is currently at an utterly ridiculous figure but am going to edit it down this week. There’s no way we will eat or drink so much in just a long weekend! 

I read a really good idea from @enthusiasticsaver on @Naomim ‘s diary to transfer early December pay to a savings account and transfer it back again on your normal pay day. Seriously considering this as I get paid 8 days early this December and the way my pay day falls in January would mean a 5.5 week gap otherwise! 

I’ve had another 0% balance transfer offer through from Virgin so have options for MBNA balance if I need it. At the moment I’m still planning to clear it by April (or as much of it as I can) but will have a proper planning session between Xmas and New Year and reassess. 

enthusiasticsaver

Great that you have increased your pension contributions  and yes would definitely recommend transferring December pay until normal pay date to avoid the very long January if you start spending it immediately.  Well done on getting a  23rd December slot.  Only ones free by the time  I got to book was a click and collect on 19th.  Luckily my DD2 is hosting Christmas and she has a 23rd slot too. No point in going mad this year as we cannot entertain as normal so I will just be ordering the normal groceries with a few luxury odds and ends for DH and DD1.   

Naomim

Well done on the pots.  You know I'm a definite cheerleader for them! I love knowing I've budgeted for something and the money is there. 

Great news on the pension too. Once my debt is clearing the pension is something I'd like to look into.

Moving the Xmas salary is such a good idea and really did help to keep me on track last year.

Luckily I have a 21st Dec shopping slot and just adding bits and pieces as I think of them.

Naomim 

MB148

Well.... I've just read all 142 pages (over a couple of weeks) and wow what a journey so far! You have such a different attitude to money from when you first began.
I feel like this is such a good example of how money can be completely life changing if so many different ways negative and positive, I felt so bad for you when the debt shot back up again when you had put so much work in, but now you are not far off from being debt free.
I enjoyed reading all the way, congratulations for your amazing progress so far!
Mike