Reducing Debt - being accountable and taking responsibility

DrSpendLittle

DF has gone back to bed poorly - I think he must have a bug - so it's turned out to be a quiet day so far. We'll get back to housing moving chat perhaps tomorrow.

Having had a super busy week at work, I just want to laze about today, so I've no plans to head out on my own I do need some conditioner (!!!) so I will take a drive out to B&M for a bargain hunt. Will pick up some shampoo whilst I'm there and probably some toothpaste too as we're running low. DF never buys toothpaste. It's so strange. Just like he never washes the towels or bedding. Mind you, he tends to do all the gardening / painting / DIY jobs so I guess it balances out in the grand scheme of things I quite like how relationships just 'flow' like this. It's quite natural and complimentary.

Anyway, back to finances! I'm super focused on getting to March 29th now. I just want to pay off the debt. I'm a bit impatient, a bit giddy and a bit nervous. I've always been impatient and I think I've managed that fairly well through this debt free journey. But now the end really is in sight and I just want it gone. I keep looking at YNAB and my bank balances. I'm not sure what I'm expecting to find. I think it's the comfort and reassurance that It's Nearly Over.

I seem to have forgotten the life I had 19 months ago, when my debt was nearly £14K and I was spending every penny every month with no plan, no strategy and no savings. It makes me feel queasy just thinking of it. I just don't recognise my former self. How can I have been that person for so long?

Then fast forward to 12 months ago when I was making progress and getting bored. And beginning to credit card surf. I was complacent. I was trying to have the debt free life before I'd earned it. Thinking I was in control of my money and I could do it all - pay off debt, build up savings, spend money on things I felt I deserved because I was finally getting to grips with my finances. I see others doing it. I think it's a natural part of the process.

Then just 6 months ago, I was going through a 'building up savings' phase. Again, I was living as if I'd paid the debt off. I was getting impatient and bored of the final few £Ks being in my life. I was ignoring the present and looking down the road to the rich, lush plains of solvency, thinking I was there.

And now back to today. I finally have the same gazelle intensity that I had at the very beginning of my journey. I've come full circle. Except, now I'm not scared to spend. I'm not yet proud to spend. That will come when I'm debt free. But I'm content. Really content.

It's all rather poetic.

enthusiasticsaver

A lot of people tend to put their houses up for sale in the spring so hopefully more will come available next month. The same month you are debt free Unsecured debt anyway.

It would not be the end of the world if you don't see your ideal property for a few months as it gives you a chance to save lots towards costs of moving etc which is always expensive.

DrSpendLittle

I spent an hour or so today looking at my YNAB reports as I was intrigued to see what my yearly spending patterns had been.

I ran a report for Feb 2018 - Feb 2019 and here are the total spends per category:

£3,115 Holidays - OMG!! :eek: 3 in total (1 x 3 week; 1 x 5 day; 1 x 3 day)
£1,312 Gifts - I think this also includes xmas travel and food spends. Well, I hope it does...
£2,745 Household - This includes a boiler, building work and £350 on the other car
£573 Car Maintenance - MOT, service, new brakes & insurance for my commuting car
£500 Work Expenses - This was returned to me, but it's interesting to see that amount
£760 Fuel & Car Parking - My commuting costs, averages about £63 per month
£3,009 Personal Spending - Clothes, bags, books, shoes, personal furniture etc. This is way more than I expected
£1,200 Dentist, Health, Toiletries, Cosmetics - Had a fair bit of dent work done this year
£100 Mobile Phone - Pleased with this. My iPhone is working well and my SIM only is cheap

This year, we're not doing a big summer holiday and I will not be spending so much on personal spends either! I basically changed my entire wardrobe last year and spent quite a lot building a capsule. However, I'm glad I did it as I was in such a style rut and was so unhappy with it. Now I'm super happy with every item I have. I no longer buy fast fashion or cheap clothes. I'm now intentional with my purchases and only buy what I need or what is on my wish list, which itself has been thought through carefully based on my existing wardrobe. Things also have to be perfect. They have to bring me joy.

It's been interesting doing this. All the above spends have been done whilst paying down the debt. I've lived within my means. Yes, I'd be debt free sooner if I hadn't spend so much on holidays or personal spends. But for my circumstances and personality, I know that would have been harder and I may not have stayed on track. I may even have stopped altogether. That's what I'm telling myself anyway

40 days to go.

DrSpendLittle

enthusiasticsaver wrote: »

A lot of people tend to put their houses up for sale in the spring so hopefully more will come available next month. The same month you are debt free Unsecured debt anyway.

It would not be the end of the world if you don't see your ideal property for a few months as it gives you a chance to save lots towards costs of moving etc which is always expensive.

Great minds My thoughts exactly.

I'm hoping that we won't actually move until July / August, which will give me time to save £4K and therefore allow us to cashflow moving fees and expenses. DF is under strict orders to save £4K by July too. That way, we protect his family money and only use some for stamp duty. The rest gets put away for us to enjoy our retirement

SnuggleBuggles

I seem to have forgotten the life I had 19 months ago, when my debt was nearly £14K and I was spending every penny every month with no plan, no strategy and no savings. It makes me feel queasy just thinking of it. I just don't recognise my former self. How can I have been that person for so long?

This resonates. I used to be the same and I hate the thought of how much money I've mindlessly frittered away in the past (with absolutely nothing to show for it).

On a positive note, my debt days are now behind me. I use my credit card regularly and ensure it is paid off IN FULL (all hail Martin Lewis :money:) every month. This provides a huge sense of peace (long gone are days I used to hoard unopened credit card statements as I was too scared to face the reality of my debt).

I love reading your diary. Your Debt-free date will be here so very soon and I, for one, will be celebrating with you! Congratulations on your massive achievements so far :beer:

BabyStepper

Your report makes interesting reading. No need to berate yourself over not paying your debt down faster, everyone does the best they can do and your best has been very impressive indeed, and inspiring for those of us coming along behind you. Debt free is a great way to start your life as home owners. You'll be able to save up for all the new things you'll need and as Dave R says, your new home will be a blessing.

I think there are a few of us waiting with you for your debt free moment to arrive. I've already got the bubbly in.

enthusiasticsaver

I like running those reports too and amazing how all the odds and ends add up to one massive payment. Is that £3009 just your personal spending or for DF as well? Mind you mine must be similar as both DH and I get £250 a month which is £3k over the year. Nothing wrong with being more selective about what you buy. Makes sense financially and less waste. My grown up daughters are like chalk and cheese when it comes to clothes. One will only buy ethically so researches companies before she buys anything and deliberates and buys very little usually because ethically sourced clothes are more expensive. She has also embraced the capsule wardrobe. The other buys clothes frequently for her and her 2 children but finances dictate she has to use cheaper shops which don't usually have the best ethos when it comes to wages etc. She also says she gets bored wearing the same clothes but she will dress her daughters in second hand clothes and passes down what she can to charity, freecycle etc.

What it shows though is that should you need to be more frugal with moving, larger mortgage etc etc then there is the holidays, personal money and gifts which could be reduced to make the costs of owning a larger house more bearable. Almost there.

DrSpendLittle

Enthusiastic - I have a feeling that the holiday spends are artificially inflated and do cover some joint expenses (ferry, gite etc). When it comes to holidays, I tend to do all the booking and organising and DF gives me his half as and when the balances are due. I think I may have put his contributions into savings on a couple of occasions., The £3K will also include holiday clothes, packing cubes, maps, books, bike things and all the other peripherals that you take in holiday. Oh, and also 3 weeks of food spends whilst we were there.

And yes, I agree that there is significant scope to be more frugal when we take on a bigger mortgage. DF is also on board with this too. His competitive streak is getting the better of him and he wants to be involved in my savings game, I mean goal :rotfl:

DrSpendLittle

SnuggleBuggles wrote: »

I seem to have forgotten the life I had 19 months ago, when my debt was nearly £14K and I was spending every penny every month with no plan, no strategy and no savings. It makes me feel queasy just thinking of it. I just don't recognise my former self. How can I have been that person for so long?

This resonates. I used to be the same and I hate the thought of how much money I've mindlessly frittered away in the past (with absolutely nothing to show for it).

On a positive note, my debt days are now behind me. I use my credit card regularly and ensure it is paid off IN FULL (all hail Martin Lewis :money:) every month. This provides a huge sense of peace (long gone are days I used to hoard unopened credit card statements as I was too scared to face the reality of my debt).

I love reading your diary. Your Debt-free date will be here so very soon and I, for one, will be celebrating with you! Congratulations on your massive achievements so far :beer:

:hello: Hi Snugglebuggles, welcome to the party! Thanks for your kind words Glad to hear your debts are behind you and you're enjoying your debt free life. Can't wait to join you!

I also remember avoiding opening credit card statements. And that feeling in the pit of my stomach when I did finally build up the courage to do so. I'd spend two days doing the credit card shuffle, thinking I was back in control, but nothing else would change. The debt was still be there but it was now 'cheaper'. Yay. Winning. I'd then revert back to not opening statements and continue to spend, spend, spend, thinking I had somehow fixed the problem. Funny how we can deceive ourselves for so long...

DrSpendLittle

BabyStepper wrote: »

I think there are a few of us waiting with you for your debt free moment to arrive. I've already got the bubbly in.

:beer:
_party_
:dance:

If anyone from MSE just so happens to stumble upon this post, PLEASE PRETTY PLEASE create a champagne celebration emoji in time for the 29th March

:money: