£67,031.92 is a frightening number indeed....

Treadingonplaymobil

Morning team! OK, I promise to stop opening posts with that now.

Hope you all had lovely weekends. I worked all weekend which was extraordinarily underwhelming, especially as it was all client facing, so not even any progress forwards on the new business. Obviously it was very positive to have a chunk of money coming in and it's added to both my February salary pot and my savings for rebranding the business, but goodness me it feels so negative to be spending time on it now. And I'm so wiped out after clients that although I earned a good couple of hundred quid over the weekend, I was absolutely good for nothing after working - I fell asleep on the sofa for two hours after the final client left on Sunday. The hourly rate once you include the time I spend replying to emails etc, set up, and introvert's recovery time, as is absolutely dire. Ho hum, it's done now, and if quitting the franchise succeeds easily and quickly I could be looking at only two more client facing days (both this week). I'm still chasing for more information from the franchise company - I'm going to have to send a solicitors letter just to keep the conversation moving if they don't come up with something soon.

We had the builder round on Friday to discuss the extension. A couple of minor hassles - the start date has been put back to early June, which is immensely frustrating but gives us more time to do things like build a shed in a the garden and save a bit more money, so although I was initially disappointed I'm actually somewhat positive about it now. We're waiting on a final quote from the builder which will no doubt be horrendous, but he knows what our budget limit is, and whatever he quotes over that limit will have to be postponed until we have the money, so we just have to wait and see what he comes back with then start prioritising work. We have no more major outgoings until the build starts now, so the £350 we are saving towards the build each month can now just accumulate, which although it's a drop in the ocean will make a small difference.

A quick debt total update, for my own records. The increase since I last noted it here, on 1st November, are from Christmas, the summer holidays, and work costs, as well as some everyday spending because I was too ill to work as much as I planned in November and December. I should stress that these totals are for my records so I can start being proud when it reduces - I'm not anxious about the total having increased and am not looking for sticks to beat myself with or ways to make my life more scarce and mean at the moment in order to scrape it down by a few pounds. I'm comfortable that the debt is going to stay more or less static for the next six months (planned business outgoings will more or less equal minimum payments made each month) and then (aside from any borrowing we have to do for the build) will start to decrease at an ever increasing rate as my new business starts to make some turnover, and will be decreasing really rapidly by the end of 2020.

Debt totals
769.06 barclaycard
5,180.96 virgin
5,600.77 santander
7,544.80 partnership
19.835 parental loan
38,930.59 (£5,916.36 up since 1st November)

189,696.12 mortgage (down £655.11 since 1st November)

Obviously it's tedious that the number has increased, but I always knew it was an inevitable side effect of committing to my new business, as well as those couple of months of not earning, and Christmas. To be honest Christmas was a timely reminder that actually our previous budget didn't balance (I had raided the Christmas savings pot most months, so we had no pot when we got to Christmas), so we were left with the choice of a debt management plan (which would scupper our extension borrowing and was therefore absolutely not an option) or increasing my income, which became the logical option, providing us with both more income in the future and a happier me now.

YNAB is looking pretty healthy this month, the savings pots remain unmolested and we haven't overspent anywhere. There's a chance we'll overspend on food, but as I mentioned last week that's because I forgot to increase our food budget pots at the start of the month.

I've got a super busy week ahead with contract work and a list of goals to reach for my new business, as well as those couple of days of client facing work, so I'd better snap to it!

PositiveBalance

Dangnam it, ToPM! I'm awake and posting at this ludicrous hour and you are already an hour ahead of me!



I'm not going to lie, it all still sounds exhaustingly busy but you are all over it, so well done!

Mum_of_2_monkeys

Sounds really positive - have a productive week!

Spendy_Spenderson

Hi ToPM,


Just a couple of thoughts that came to mind when I read your latest update. You mentioned the debt increasing due to Christmas and work costs (those of course were planned as you transition to a new business) but also summer holiday - does this refer to the last summer holidays or is this linked to your summer holiday for 2019? I seem to remember you saying you've booked a holiday abroad for this year so presume these costs are what's included here. Have you adjusted YNAB to include a larger pot for holiday spending, so least when it comes round you will have the spending money ready to enjoy the hol? This will also align with your plan for the debt to stay static until the Build.


On that same topic, once you hear something concrete back from the Franchise company re the buy-out cost, will this be covered on one of the cards? I understand it might be the only way but still good to note it as it will have an impact on the debt not being able to stay completely static in the coming months.


Spendy

Treadingonplaymobil

Spendy Spenderson - thanks for your thoughts. The holiday costs are the 2019 holiday abroad (flights and accommodation). We are still saving in our holiday pot at £90pm (currently at £180ish I think) which will cover the balance we need to pay for a UK holiday in April and spending money for the summer holiday.

Sadly there is no equivalent pot for the inevitable franchise company payment. I am putting by a bit of any work income that I can afford to, but it's peanuts really and probably the bulk of the payment will need to go on a CC. The aim is for any additional spending on the CC to be covered by the minimum payments to the cards over the coming six months, although the maths may of course not work out perfectly.

Franchise company are still being a nightmare, hugely stressful and very upsetting that they are being so completely awful after the work I've done and the love I've had for what I do. I have emails promising one thing and a contract that states another, and trying to figure a way through it is enormously stressful. I honestly have no idea which way it's going to go at the moment. Legally I don't have a strong leg to stand on, but they have always made (in writing) strong promises about releasing me from the contract if I wanted, and now it's come to it they've been proven to be total liars. I also have documents from training with sample incomes that should be achievable in year two - I haven't made that sample income even if you add together seven years worth of income, despite doing everything I was told! I know I shouldn't be surprised that there are such money grabbing !!!!!!!s out there, but it really puts the lie to so much of what they've said over the years and I'm feeling a bit tender about it all.

Off to do some work for the people I do contract work for today, which will be lovely, they are always nice, although I'm sad to have yet another day of not working on my business - yesterday was such a washout with stress over the franchise company!

Sea_Shell

I know you can't "name and shame", but other people should be warned about these shysters, so they don't fall for their balony too!!! Are they still actively marketing for new Franchisees and promising them the Moon on a Stick?

crunch_time

TOPM

I quit my teaching job last year to retrain as something completely different through a training company who told me at the end of the training, businesses would be 'biting my hand off' for my in-demand skills and that I would be an expert. I was presented with examples of people who have been successful in setting themselves up as freelancers in this area of business.

When I passed the course I found nobody was biting my hand off at all and I certainly didn't feel like an expert and finding clients was becoming stressful and disheartening. Being paid as an employee by a company to do a similar job was pretty much minimum wage and full time and after child care, it just wasn't worth the hassle.

Because I struggled to get any clients I have gone back to my previous career. I'm not 100% happy with this but I'm trying to be.

Out of my cohort of fellow students, only 2 out of 6 have paid work from it and even then its just pocket money they say, 1 is trying everything she can but is getting nowhere, 2 more have just left it like me and one quit before the course finished.

I get that it works for some but it wasn't the right thing for me in the end. Although I had a lovely year out 'discovering myself' and spending time with my family we are now £18k in debt due to course fees and balancing the budget. We too moved to a bigger house before we were ready to financially for the ease of getting a mortgage before self-employment.

I kick myself for this. I feel like I have let my husband down as life is moving more slowly now we are dragged down by debt due to my mistake.

Anyway - just wanted to share this with you as although it's different it is also very similar to your story. And hopefully you wont feel alone (if you did at all) in your struggles.

Crunchy xx

Verbatim

Would you be able to get a long dated 0% cc for either up coming spends or to transfer existing balance/s?
Vx

Treadingonplaymobil

Sea Shell - believe me, I know! I wish I could think of a good way of doing it, but at the moment it would be SO obvious it was me if I named them anywhere. Suffice to say people, health, wellness and beauty franchises on the whole (from the googling I've done as well as my own personal experience) are NOT GOOD for the person buying the franchise - the main company holds all the cards.

Yesterday I actually emailed them and pointed out a promise they had made me about leaving penalty-free after a certain time period (which was reached a year ago), and enquired whether it was a lie. It was bolshy, but they made written promises and are trying to go back on them. I'm hoping this will shame them into doing it.

Crunch_time thank you so much for sharing your story, it's really brave and I appreciate it. I have been feeling very stupid and very alone for much of this - I made a bad decision and it's hard to accept, especially as it had such enormous financial implications for us. So so bad financially! DH has been absolutely amazing throughout all of this, is very clear that we went in as a team etc etc, but I can't help feeling hugely responsible. My mother is being appalling, if she's said 'I told you so' once she's said it a thousand times.

Verbatim - I need to wait until the application to increase our mortgage for the build has gone through before I apply for any more credit. But yes, I think we will do some shuffling in a month or two.

PositiveBalance

Treadingonplaymobil wrote: »

Yesterday I actually emailed them and pointed out a promise they had made me about leaving penalty-free after a certain time period (which was reached a year ago), and enquired whether it was a lie. It was bolshy, but they made written promises and are trying to go back on them. I'm hoping this will shame them into doing it.

If these promises are in writing, can they be enforced legally?