My Lightbulb Moment

Trixysticks

Hi everyone! So I'm feeling a bit nervous making my first diary but it's been a long time coming.

I've always thought of myself as a money saving queen...and felt (embarrassed to admit this now) smug when I had saved a deposit and got on the housing ladder at 27- something my friends would be a while in doing. However, after getting the keys I acted like I had unlimited money and dipped further into my savings, fueled by the jealousy of others (very stupid!!!) :mad:

Anyway, after being in the house a year I've suddenly realised that my savings have taken a battering so I have no emergency fund and I drive a car on finance which is (to quote Dave Ramsey) 'stupid'. I don't pay into a pension and I haven't saved a penny for months.

My aims after giving myself a huge kick up the !!!!:

1. Save an emergency fund. £6000 is the first target (3 months pay)
2. Overpay on the mortgage
3. Contribute to my pension pot
4. Log every penny I spend and BUDGET
5. Focus on me and my family and don't worry about what others are thinking

It's been a very expensive year- lots of social engagements due to a run of 30th birthdays and hen/stags and weddings. I realise now I didn't need to do it all- or at least should have worked out a budget.

Right, I'll be back with more figures :j already feel lighter for having this written down.

Thank you for reading x

bexster1975

Hello trixy

Welcome to MFW! :wave:

I would say, after saving like a demon for a deposit on your own place, I think you were allowed a bit of a splurge.

Keeping up with the joneses is an easy trap to fall into. If you have a workplace pension, I'd consider starting that first. Saving three months wages is a great idea ( could start with three months expenses - unless they are the same!)

Writing on your diary will help keep you on track

Good luck

Bexster

Trixysticks

Thanks Bexster! You are spot on- we totally splurged after saving for so long! Time to tighten our belts now.

My mortgage is at £138322.06 (can't wait to tackle this!) and emergency fund at £4175.00. (Need £6000 minimum)

Once I get my head round my Soa I'd love people's thoughts on how much I should be overpaying etc.

To get myself started I've been tracking all my spends (why did I never do this before?!) and written out my November budgets. Been very frugal with food shopping and eating out of the cupboards. Had a lovely takeaway tonight of 3 curries and HM onion bhajis curtesy of my freezer.

Already got £90 in my PayPal account curtesy of EBay and I've set up a Plum account to hide a few pennies away for a rainy day.

Feeling so positive. Will try check back daily to record my progress.

Time for a cuppa in bed I think. Night all!

Merchandiser2367

Good luck with your journey! It sounds like you have got a financial plan and are ready to get your saving head on

I love your thread title! It reminds me of my light bulb moment 10 years ago, having just got a ccj for credit card debt and living in a shared house in my overdraft (over my overdraft) every month.....i knew things had to change!

It was really tough reeling everything in but I found a simple excel spreadsheet with an incoming and outgoing total (every single thing you can think of) really changed my relationship with money!

My credit score is now perfect at 999 and hoping to be mortgage free on our house in5 years.

And, I am a million times happier being financially secure than spending all my money down the pub or on things I didn't need, but it took me till I was 27 to realise that!

You'll find the change amazing, just be detailed in your financial review and try to look at it is much as possible. It becomes addictive !!

Trixysticks

Thank you so much Merchandiser, that's exactly the point I got to. Suddenly realised I was down the pub every night putting on weight, losing cash and generally feeling bored!! Then internet shopping during the week :eek:Thank goodness I realised I had the power to STOP before any big debt.

I've definitely found a love for a simpler way of living- cooking good food, walking the dog, spending time with family.

So inspired to hear you're only 5 years away!! Must keep telling myself I can do it :T

Merchandiser2367

Trixysticks wrote: »

Thank you so much Merchandiser, that's exactly the point I got to. Suddenly realised I was down the pub every night putting on weight, losing cash and generally feeling bored!! Then internet shopping during the week :eek:Thank goodness I realised I had the power to STOP before any big debt.

I've definitely found a love for a simpler way of living- cooking good food, walking the dog, spending time with family.

So inspired to hear you're only 5 years away!! Must keep telling myself I can do it :T

Well, we haven't really started yet! Lol, almost at our £10k emergency fund goal but our first over payment will be at the end of this month and a similar mortgage to you - 21 year term, £146,500 but hoping to be mortgage neutral in around 5 years.

But to try and acheive this, our budget spreadsheet rules! And probably one of the most important things is Martin Lewis voice in my head when walking round town saying 'do you need it'? We ask ourselves this each and everytime and it's amazing how often it is a no.....

Tropically

The average person in the UK spends about £6,000 on new things when they buy a first property. Don't worry too much, but be happy to be on track again!

Escapar2020

Sounds like its an low cost light bulb! Mine came on quite late but glad it did! You'll see lots of things differently now your light is on ;-)

One thing worth thinking about is how much house do you need? I bought mine brand new with the idea that I'd move up the property ladder after 5 years, but im still here nearly 15 years later and avoided a bigger mortgage :-)

pawlala

welcome to MFW! I particularly like your "3. Contribute to my pension pot" even though that is a different avenue to MFW. I do no. 3 myself and its very important I think!

Trixysticks

Hi everyone

Thanks for all your comments, it's so useful to have other people's thoughts because I don't tend to have friends in the same situation as me. (Or they are very naughty spenders who encourage me to do that same! )

Had a brilliant weekend of no spending! So feeling chuffed. We've had some lovely meals made up of freezer produce and had friends over for drinks. Usually we tell people not to worry about bringing anything with them when they ask- but this time we did and everyone was more than happy to pitch in with the wine and snacks!

Less going out has encouraged me to sort out bits at home and I've been ebaying furiously.

Feeling nervous about November because I've got several weekends away and I'm scheduled to have some work done on the house. Really regretting a lot of the things I had planned when I was being more frivolous, I'm considering postponing the work (which would come to about £700) until I've saved that, or I nick it out of savings. I feel awful messing the guy around but I feel like this is a test for me...I may suggest he comes in December as we haven't fixed a date for certain

Car is being serviced tomorrow, I've been told it'll be £77 but they always manage to find things to do so have allocated £150. (Based on previous services.) Payday tomorrow so that'll be the first hit of my poor November pay packet. It's going to be a testing month for me!

Tonight will be spent doing my budget for the month again- I've had 3 attempts so far!! Does anyone else find this a tricky job?!

Thanks again for reading and commenting everyone :beer:

Trixysticks

pawlala wrote: »

welcome to MFW! I particularly like your "3. Contribute to my pension pot" even though that is a different avenue to MFW. I do no. 3 myself and its very important I think!

Thanks Pawlala, I feel slightly ridiculous thinking about it! :rotfl:To be honest, it's only £50 a month at the moment, but I thought if I can get into the habit it'll be easier to keep up.

Must just remember to increase as the mortgage goes down!