Debt Demolisher

Cherryfudge

Pensions generally seem to be the sort of thing people advise one to get... perhaps view the pension as a long-term emergency fund, if that helps? A real kick in the guts for your planned budget, though.

Love the Valentine's cards, hope you can get out of the door past any late comers. I use mine for insulation .

motivated

Moneywhizz wrote: »

Hi, I don't think I have commented on your diary but I have read along from time to time and you seem very committed to your debt free journey. I am not sure how long it is going to take you to pay off your debt but judging by the amount of your debt in your first post I would imagine it is going to be quite a long journey. If that is the case I think it is important for you to be building in a reasonable amount of money in your budget for you to have a life while you pay off the debt. Living on a very tight budget may be possible for a year or two but sustaining it long term is not easy. Is it possible that your budget is just too tight? And is there any way you can make some extra money or cut back on your payments a little so that you have a bit of free money just to treat yourself from time to time. I also vote for keeping the pension payments. You will be glad of it one day and there is no point in missing out on the tax benefits of paying into a pension. I will keep following your journey. Good luck.

Hi moneywhizz and thank you for your words of advice and encouragement

I agree that I'm in this for the long haul hence the saying 'emptying my lake with a teaspoon'

As for the pension I really have no idea how it all works to be honest. I have approx 15 years left and stupid I know I haven't a pension in place (until now). I've been so wrapped up with debt,budgets,DMPs, you name it I opted out years ago thinking the extra money is needed elsewhere.

I plan to sit tonight with my faithful pen and paper (again) and write everything down to the penny. I will try and see how things look and where I can continue to save up a half decent F&F fund in the hope I can knock a couple of years off my DFD. We live in hope.

Our payments are cut back at the moment due to car issues and were currently paying back a loan from bank of MIL. This is going ok and once that is done we will be back to how we were and plodding again.

Thanks again it means a lot to know people are supportive and encouraging.
M

motivated

Cherryfudge wrote: »

Pensions generally seem to be the sort of thing people advise one to get... perhaps view the pension as a long-term emergency fund, if that helps? A real kick in the guts for your planned budget, though.

Love the Valentine's cards, hope you can get out of the door past any late comers. I use mine for insulation .

Hi cherry. I never thought of using my valentines cards as insulation. That would save on gas and I could pay off my debt with the extra funds :rotfl: Good idea.

As I said earlier I have no idea how pensions work. I will speak to someone today at work and ask how much if any that my employer is contributing too.
M

motivated

Just to add. I just found a fiver at the bottom of my stairs :eek: pennies from Heaven. Maybe it's a sign

DH will be on the phone very soon claiming it I'm sure :rotfl:

System

Motivated never commented on your thread before but I do read along. On the pension issue , my employer runs a 50/50 scheme whereby you only pay half pension payments as well as full. I paid half for a couple of years when I was struggling . Maybe worth asking if that is possible for you. My debt is quite small now and I could clear it a lot quicker but I like little treats , so cut yourself some slack occasionally and have a small treat.

motivated

Cumbria_lass wrote: »

Motivated never commented on your thread before but I do read along. On the pension issue , my employer runs a 50/50 scheme whereby you only pay half pension payments as well as full. I paid half for a couple of years when I was struggling . Maybe worth asking if that is possible for you. My debt is quite small now and I could clear it a lot quicker but I like little treats , so cut yourself some slack occasionally and have a small treat.

Thanks CL

I plan to meet with the pension lady this morning and I will ask lots of questions like how much my employer is contributing too. Lots of people at work have different opinions of it but I am steering towards leaving it as it is and budget around it. I have calculated this pay against January's pay and I have paid £29.20 less tax this month so in theory I have paid less pension. Well that's what someone said Embarrassed to say Im still none the wiser Im rubbish at figures as you can tell by the mess im in financially. :rotfl:

I will update any further info I get this morning.

On another financial note lol I seem to be ok at the moment with making the figures work out. We have no Council Tax to pay for the next 2 months so we are a little better off and will be having a little treat this weekend as it is DHs birthday. I plan to take him out to eat tomorrow, just the two of us and somewhere not too expensive. I agree that we need a treat now and again.

Will be finding a discount meal deal thingy I hope.
M

ChasingSunshine

I'm sure they will explain it at work anyway but pretty sure the reason that your tax is lower is you don't pay tax on what you put into the pension. So if you put in £150 at 20% tax thats £30 you get in your pay slip so it only cost you 120 from your actual pay. If your employer matches it then you have £300 in a pension for £120 of take home pay.

Well at least that is how it was explained to me when I first looked at pensions but apologise if I'm explaining it badly

motivated

Thank you CS

I have spoken to the lady in charge and she explained that whatever I contribute, the company match that with a little more too. She said it is a good pension to have. Looking forward to this evening when I will have more of an idea how things are this month. My good old trusty pen and paper.

Just finished work (well the students have gone home) not quite home time for me just yet. But its half term :j

motivated

Me again

Have finished with all the number crunching. Have paid all my little bits and pieces that I pay and my DDs and SOs. The few DDs I have go on different dates I have moved the amount needed to another account and will transfer it back as and when needed. I have added some money to our savings account and I will forget about this and let it build. We have some treat money for a meal out tomorrow and some money for any top ups in the week like milk and bread.

Overall it's worked out ok. Phew!

Thankyou all for putting up with my ramblings
M

Cherryfudge

Well done for making the numbers work out! It's amazing you can have a bit for savings and a bit for a treat fund, but that shows you are planning long term and pacing yourself rather than going all out and risking something going wrong.

Have a good weekend, especially your meal out.