Small Steps Out Of Massive Debt!

GeorgianaCavendish

2021 Goals & Debt Totals

I'm starting 2021 in such a different financial position to previous years. I've actually got some savings (this feels like immense progress!), an emergency fund, money set aside for annual expenses, a working budget and the debt is down to 4 figures. When I started this diary I would never have expected to be in such a sensible place! 

My main goals are repaying the debt and saving for a deposit. I've now fully funded my LISA for this tax year, so for Q1 2021 I will focus on repaying the MBNA debt. I will need to make substantial payments for the next three months but I think it is doable. From April onwards the main focus will be deposit saving, although I will increase the Virgin direct debit to make sure that the balance is cleared within the 0% promotional period.  

My other financial goals are to make gradual increases to the emergency fund, save for annual expenses like insurance and Christmas, and to build up holiday savings (at the moment, we've got a big family holiday planned in August 2022, but we'd like to have some money in this pot so that if travel opens up in 2021 we can get away for a short break) 

Debt : £7,500.00

MBNA - £4,750.00
0% until April 2021 

Virgin - £2800.00
0% until March 2022 
(set payment of £50 per month)

Savings :
Holiday: 9% 
Total Deposit Savings: 12.5% 

enthusiasticsaver

Great update and look forward to that MBNA being cleared. 

Naomim

I remember when you started your diary and what a huge change in attitude you have made and some excellent accomplishments. You should be so proud of yourself GC.  Some fab goals for 2021 and I have no doubt you'll achieve them.

Naomim x

another_casualty

Wow! You've come a long way . 😸
Everything is going in the right direction imho . 🤞things carry on for you in that way. 

You've got me thinking about writing a will now. It's one of those things I find daunting .
The wording etc.  I suppose I will do it ..eventually .😼
Anyway , happy new year ! 

GeorgianaCavendish

enthusiasticsaver said:

Great update and look forward to that MBNA being cleared. 

Thank you! Me too - can't wait for MBNA to be gone and the account closed! 

Naomim said:

I remember when you started your diary and what a huge change in attitude you have made and some excellent accomplishments. You should be so proud of yourself GC.  Some fab goals for 2021 and I have no doubt you'll achieve them.

Naomim x

Thank you so much Naomi! I'm really pleased with the progress made this year and fingers crossed for becoming debt free in 2021!

another_casualty said:

Wow! You've come a long way . 😸
Everything is going in the right direction imho . 🤞things carry on for you in that way. 

You've got me thinking about writing a will now. It's one of those things I find daunting .
The wording etc.  I suppose I will do it ..eventually .😼
Anyway , happy new year ! 

Happy New Year to you too AC, and thank you for the encouraging words I found writing the will to be very emotional, but using the service via the charity was a good fit for me because it was simple to understand and took me through each step. I think there is a section on MSE about using this method  

GeorgianaCavendish

Just finishing up a few things for work, before an early log-off and getting to enjoy my New Years Eve - I will be pleased to see the back of 2020 and feeling optimistic about 2021  

I've been making a to-do list for the long weekend, a mini-spring clean before the new year starts properly in January: 
1. beauty product audit : check exactly what I have & how much is in each bottle (to avoid stockpiling again) and check if there is anything that needs to be thrown away 
2. sort out wardrobe : check if anything needs to be repaired, dry cleaned etc (repairs might not be done this weekend, but having a to-do list will be helpful!) I'm starting with the stuff I'm currently using but a bigger goal is to work through all the storage bags of clothes and do the same, plus setting aside things to sell / donate etc 
3. study plan : I've got professional exams in 2021 and need to start revising 
4. re-organise office space : to make it a bit more user friendly / less distracting
5. set up yoga space :  - I signed up for the Yoga with Adriene 30 day challenge as motivation, I might not do it every day but getting a few yoga sessions in each week really helps with my stress and anxiety levels (especially with exams coming up) 

I try to avoid making New Years Resolutions because I used to treat them like a like of Fantasy Life Wish List and fill them with lots of grandiose plans that I ditched after a couple of weeks. However, there are a few things I'd like to tweak so : 
1. proper boundaries between 'home' and 'work' - things have become a bit blurred towards the end of this year which seems to be one of the pitfalls of working from home, so I'm going to try : 
a) fake commuting - going for a walk round the block before and after work each day, to mark the transition from 'home' to 'work' and back 
b) being really strict about work laptop staying in office - no checking emails or finishing up admin tasks on the sofa in the evening
c) getting away from desk for lunch breaks etc, even if only for 20 minutes 
d) properly putting away work stuff when I need to use the space for something else (e.g. studying) 
2. increase self-care - there are a few things simple things that will be easy wins in terms of how good they make me feel, and I can always add to this
a) cut down screen time
b) yoga 
c) go to bed earlier! (this has been really bad during the last couple of months) 
d) read a book (or do some drawing or cooking) instead of browsing online 

I also have the financial goals that I discussed in an earlier post, but as well as these I'm adding another goal which is basically not to use my finances as a way of procrastinating with other stuff. It's important to keep on top of my finances but sometimes I find myself opening my spreadsheets or checking MSE when I'm trying to avoid having to do something else. 

Happy New Year everyone - here's to a better 2021!

Fortune_Smiles

Happy New Year @GeorgianaCavendish.  Love your ideas for separating work and home.

Fortune x

brizzlegirl

Agree with FS, great ideas. May have to ‘magpie’ a few of those for myself. Have a wonderful 2021 

enthusiasticsaver

Happy New Year GC.  Some good goals above.  

GeorgianaCavendish

Fortune_Smiles said:

Happy New Year @GeorgianaCavendish.  Love your ideas for separating work and home.

Fortune x

Happy New Year Fortune! Hope 2021 is a good one for you 😊 

brizzlegirl said:

Agree with FS, great ideas. May have to ‘magpie’ a few of those for myself. Have a wonderful 2021 

Thank you BG! Let me know how you get on - it’s my first day of fake commuting today. Hope you have an amazing 2021! 

enthusiasticsaver said:

Happy New Year GC.  Some good goals above.  

Thank you EnthusiasticSaver! Happy New Year to you too 🥳