Reducing Debt - being accountable and taking responsibility

DrSpendLittle

Hello peeps!

A busy but productive weekend here in the SL household. We've managed yet another freezer dinner this evening but I really must do a food shop tomorrow. We had a cheeky takeaway on Saturday night as we lost track of the time chatting (see below) and had planned a movie night.

Had a really good conversation with DF about the proposed house move on Saturday afternoon, which involved a very honest chat about our joint finances, my debt / repayment success thus far, our short, medium and long term financial goals and our financial preferences for monthly mortgage payments / running costs vis-a-vis other lifestyle costs. We've agreed on a minimum and maximum price range to help sharpen our search for a new home and have also agreed on a monthly mortgage payment / bills figure that we'd like to aim for, accounting for possible interest rate rises and lifestyle preferences. We also spoke about how we might use DF's inheritance in funding the move.

We really are singing from the same hymn sheet on everything and had no disagreements. I feel so much more part of a team than I ever have (we've had separate finances up to now). DF is really really impressed by my debt repayments and is surprised at how I've managed to turn things around, especially since he hasn't noticed any difference in our standard of living. He wants me to help him set up online savers and direct debts so he too can start putting aside more money every month and stop the frittering.

The long and short of this conversation is that we've agreed to save circa £8K - £10K by the end of the year for a house moving fund. This is for legal fees, estate agency fees and moving fees. We want to use DF's family money to maximise our deposit (which will be our existing equity minus stamp duty) and for other decoration / furniture costs we may have in our new property, so the inheritance becomes materialised in the new house rather than frittered away paying the movers or the surveyors. I agree and like the sentiment. His family member, who gave him the money, would also be pleased with it

So, my short term financial goals have changed slightly. My plan is now to squirrel away around £4K before the end of the year and make smaller monthly payments to CC2 until January. Thereafter, I will continue my intense debt slaying and according to YNAB, should have CC2 cleared by March / April. I will be transitioning to a proper budget from January onwards, where every line item is funded, rather than my current approach where I throw everything I have at the debt. CC2 is interest free until June 2019 so there is no immediate rush to clear it in place of saving for the transaction costs of moving. We are going to look into opening up a joint account, subject to avoiding credit checks, so we can pool everyday finances and maximise our monthly saving goals.

Signature updated. I'm looking forward to this new challenge and a more mature and team-based approach to my finances

DSL

DrSpendLittle

Oooaf, that last post is loooooong. Good luck to anyone bothering to read it!

I'm going to be offline for the rest of this week, starting later today, as I'm having a no internet week! I do this a few times over the summer as a way of digitally detoxing and as a way of seeking more focus for my day job when working at home, which I do a lot of over the summer.

It's payday tomorrow so I quickly wanted to mention what my August plans are. I've done my monthly budget but its a holiday month so isn't my typical budget. I'll be making a £150 payment to CC2 and keeping £100 aside just in case I need more spends whilst on holiday (I won't be taking or using a CC). If I don't need the £100, I will throw it onto CC2 at the end of August when I'm back.

July has turned out to be an expensive month with some household spends, friends birthdays, social events, work trips and a terrible approach to groceries. I'm glad to see the back of it. I have had to take some ££s from August's salary to cover some of July spends. Tut-tut, DSL, tut-tut.

August is the month when I begin not using CC3 for everyday purchases. I've found it too tempting to use it as a means of knocking spends into the next month, as described above, and I don't like it.

So, have an enjoyable pay day / debt payment week and I'll catch up with diaries early next week.

DSL

DrSpendLittle

A quick check in before I switch off the router!

Just back from town and have done a decent food shop, around £52. Got my F&V from Aldee and then popped to waitingrose for meat and other bits and bobs I'd rather pick up there. We should have enough food for the week, though DF will need to pick up some pork loin as they we're out.

I also picked up a few other bits and bobs for our holiday (a memory foam travel pillow, some packing cubes and some plastic serving trays for camping), which will come out of the holiday budget. Around £25 in total. DF is pleased with his packing cubes (I bought some last month and he eyed them up so its less hassle to buy him his own ).

Back to work for a bit (WFH), finishing the last of my emails and then its bye bye tinterweb until next Monday evening!

DSL

DrSpendLittle

Forgot to add, I've updated my signature with debt totals and payments from August's salary. A day early but wanted to get it set up whilst I was away. Was hoping to have paid CC2 down more this month but I'll see what I have left over from holidays at the end of the month.

September is the start of saving for the transaction costs of our house move. I plan to put £1330 into it on the 1st. I've still got a work / consultancy fee due to be paid sometime in September of around £600. My plan is to put that towards CC2 so I'm hoping CC2 will come down to around £3,365 by mid September. Will be good to be in the £3's.

DSL

DrSpendLittle

I'm back! Had a lovely internet break and have come back all rejuvenated and raring to procrastinate!

August's salary is in and all immediate obligations have been paid. As mentioned in my previous posts, I've made only a small payment to CC2 this month as I have my holiday (away from this weekend so will be offline again until September) and I've put aside most of my disposable income to this. I'm hoping to make a second payment to CC2 at the end of August when I'm back from holibobs and have greater clarity over what I've not spent. I've a 'spare' £150 squirrelled away so far for CC2 overpayments.

Spends so far this month have been controlled and as planned. I'm really enjoying not using CC3. Its made me much more alert and aware of every penny, unlike my previous approach of being a bit more fluid with what and spent and when.

Next month is the start of saving for a house move. That fund is for the transaction costs of selling and buying (excluding a deposit and stamp duty) so includes spends for some minimal remedial decoration we want to do before / during the marketing of our current property. We reckon it'll be less than £500, maybe not even that much. I'll document all spends and savings here to ensure I'm fully accountable.

Need to assign my £150 payment to CC2 to an item off my STIF list (see post #310 here). I'll do it when I have a bit of time later as it requires me play around with the list and figure out a way of clearly ticking things of (and parts of things as there probably won't be one individual item worth £150).

Looking forward to catching up on diaries! DF is out with friends tonight and my plans fell through so I have a nice evening of having the house to myself AND I get a cheeky NSD. Oh wait, I just remembered that I treated myself to an iced latte earlier today! NSD - £2.25 = low spend day.

DSL

DrSpendLittle

I've just realised... it was this exact time last year that I had my LBM. The first week of August. Funny how time flies and debt disappears

Happy 1 year LBM anniversary to me!!
:bdaycake: :beer::money::T

ChasingSunshine

Happy first anniversary! Hope you have a great holiday

DrSpendLittle

Okay, here is my STIF List August Paydown

'Stuff, Things, Interest and Fees' (post #310) from CC2 spends throughout 2015, 2016 & 2017:

2016-2017 Sport-related hobbies (equipment, nutrition, event fees): £2,015.83
2017 Summer Holiday: £80
2017 Music (equipment, gigs, records): £831.94
2017 Furniture: £581.30
2016 Xmas: £254.33
2016 Summer Holiday: £921.41
2016 Short break to a foreign city: £207.68 - £42.50 (August Paydown) = £165.18
[STRIKE]2015 Car service: £107.50[/STRIKE]

£150 pays off: 2015 car service & £42.50 of 2016 short break

Previous Balance: £4,999.99
New Balance: £4,849.99
3% cleared

DrSpendLittle

Just a quick check in. Had a WFH today and a busy one at that! Worked a bit late but was in the flow so didn't want to stop. DF cooked us a nice chorizo pasta dish with cream and fennel and other bits and bobs. He also WFH so it was nice to have some company.

Managed a NSD today.

Similar day lined up for tomorrow then holibobs until September!

DrSpendLittle

Had a quiet WFH on Friday - getting everything in order with work before going away on Monday. Only spends were some bits and bobs for dinner from Aldee. DF made a nice Chinesey dish with some rump steak we had in the freezer. Was lovely.

Today has been a NSD thus far. Just finishing up all the washing and organising we need to do before heading away. Also taking the opportunity to do some sorting out.

Not sure on plans for tomorrow. Probably just more of the same. Hoping for another NSD!

DSL