January 2018 - Debt free freelancer

[Deleted User]

Here goes....

I am feeling super excited but a little bit stressed out at embarking on this debt free journey.

I have been hovering round the threads for a year, gradually paying stuff off but never really “giving it my all” and rarely having a NSD (Just realised what that means!). Anyhoo, i feel ready but have a few things making me nervous.

1)my job contract finishes in August
2) my DH is a freelancer (New venture after redundancy) and his income is sporadic at the moment.
3) my DH is so focused on his job and so I feel that I am doing this alone - The bonus is, that it is not him who is the spend thrift! He just has little interest in my latest fads LOL

This makes planning past August tricky and demotivating - it is what has been putting me off as it doesn’t seem worth it.... but seeing how well people have done on here is making me want to try. I know I can save on groceries and cutting out the mindless (cheer me up) purchases.

Our debts are:
25,000 Personal Loan - 7.1%
13000 Personal Loan - 3.5%

Baby Steps:
Purchased bread maker with Xmas vouchers
Cancelled Ocado delivery - Aldi here I come
Audited the cupboards and the fridge and created recipies using all the leftovers and store cupboard items.
Opened a 5% savings account to save for Tax
Audited my expenditure

Bills and Debts = £1668
AVERAGE EARNINGS = £2445
Leaves = £777 for food entertainment and servicing debts

Really trying for a groceries bill of MAX £75 per week including dog and household items = £300
MAX £200 for other stuff which comes up

We have £700 in savings but I am not sure whether to use it to pay towards Tesco or keep it in savings until DH has invoiced a little more to add to the pot. Anything he earns is extra as my wages cover our bills and food...it is just that I never know when it is coming or how much...

Decisions decisions

My aim to to be accountable by posting my spending (itemised) and groceries each week to help me to focus and my debt levels each month for motivation.

Have no CCs and have a fully paid for Ford Fiesta LIVIN THE DREAM :rotfl:

fatrab

Assuming you have no other savings, build up an emergency fund first - £1000

Focus on paying the highest interest debt first.

Don't expect results overnight. It will take a little bit of time.

Chip away at it and best of luck!

[Deleted User]

Good advice £1000 seems sensible.

I get your point about paying the highest interest debt first but I think I need to medium term motivation of getting down to one debt only and then snowball the bigger one. I think without a medium term goal and visible result of seeing one debt fully paid off, i will lose my vision and motivation. I will keep my options open and decide when i build up a surplus

redofromstart

Happy new diary, and good luck with your aims.

fatrab

I think you need to ask yourself if you're happy paying more in interest than you need to? Throwing more money away each month than if you paid the higher interest loan first? Unfortunately I'm in a similar position. I am due to remortgage this year so I need to clear off as many of the smaller things as possible which includes a loan at 3.1% before I tackle my car loan at 6.9% next year.

Your medium term motivation should be halving the total debt in the most efficient way possible. It will really snowball if you pay the highest interest off first.

3.5% of 13000 is a lot less than 7% of 25000!

I wish you well whichever route you choose

[Deleted User]

Dear Diary...Here goes Week 1

A way to go on my NSDs but groceries bill is promising. Planning to shop in Aldi each week and make bread from scratch - lots of soups and slow cooker recipies

Week 1 Food £48/£75

2/1/18 - Aldi = £10.49
4/1/18 - Sainsbury’s = £15.06
7/1/18 - Sainsbury’s = £22.32

Food bill = £47.90

Other Spends £76.10 / £0- But had £100 bday money

Dog Food = £1.20
Dog Toys = £3.70 (0ne off)
Smaller Plates = £4.00
BDay cards = £4.00
Stamps = £8.00
PJs = £26 (Bday voucher)
Parking = £2.40 (Bday money)
Bday Lunch = £26.00 ([Bday money)

Fuel and Heating spend £45/50
£15.00 Coal
£40.00 Petrol

Food:

Slow cooker - Sausage casserole
Slow cooker chicken Casserole
Chickpea and spinach Curry and rice (No more packet Rice)
Broccoli and Stilton soup (Use up Xmas cheese)
Tuna and Pasta Bake (Use up Xmas cheese)

Lunch - cheese and pickle sandwich, banana / Apple (Lunches maybe leftovers in the future)

[Deleted User]

How do I make a signature so I can include my weekly goals and mantra :money:

fatrab

DirtyPaws wrote: »

How do I make a signature so I can include my weekly goals and mantra :money:

At the top of the page click profile then settings then edit signature.

If you're on mobile go the bottom of the page and go into desktop version first

[Deleted User]

Testing Testing