Debt Free By 2020

Lilith1980

I hope the leak got sorted? And the budget meeting with hubby went well

debtfreeby2020_3

Hi everyone! It is PAYDAY!!!!

It was so amazing to wake up and find out that I did not go into overdraft. I am really getting a hang of this budgeting thing. I have already started moving my money around to prep for the month ahead. Here is what I have done so far!

£100 into the emergency fund.
£369 into the bill fund. I am trying to keep that as close to £500 as I can.

As I was up at 4 am yesterday, I passed out last night and when I woke up, hubby was fast asleep beside me. Budget meeting will be happening tonight. I will post my budget once that has happened!

In terms of challenges this month, I have become a MSE NST. I plan to do the following:

15 NSDs
A payment a day to my debts - even if it is just £1, the balance is going in the right direction.
Grocery challenge for March - £140

MeenaM

yay!!! for pay day!!! yay!!

I ended up having an impromptu discussion with my hubby last night about money, apparently he is on board but happy for me to control things, so we shall see !

good luck with your challenge ! and well done on budgeting it really does work doesnt it you feel like you've got a raise its great isnt it

hope the discussion goes well tonight

lonelyrat

Payday is the best day

Just read through your thread and you sound very motivated which is great! I agree with you with lacking money management skills. It's not something my parents tried to instil in me and it's definitely not something I tried to teach myself. I do wish I had had more exposure to it growing up. I had an RBS student/ graduate overdraft as well (technically still do but I'm not in it anymore) I do think they're useful if used properly when interest free but I know for me having it definitely got me into the habit of debt. The fact that everyone I knew was also 2 grand deep into an overdraft normalised it for me.

I have a season ticket loan through my work as well and I don't class it as a debt as it comes off my salary before I get it. I just factor it into my calculations on how much I will get paid. For me it is easier. I ended up saving money on my ticket and it's one less thing to have to worry about paying out for (even though you technically still are).

Good luck with your debt free journey. I may check out David Ramsey with everyone singing his praises so highly! I'm more of a creepy lurker than a poster but I will follow along with your journey

Lilith1980

Hurrah for payday! Best day of the month ha ha! I too didn't go into my overdraft for the first time in a LONG time. It feels good doesn't it!

MeenaM

Hi How did the budget meeting go ? did u both stay awake this time :0

LearningtoAdult

debtfreeby2020 wrote: »

I wish you the very best of luck with it. Ahhh the folly of youth! I swear it is because of a lack of financial education at school. No-one taught me how to manage my money - not even my parents.

I know this feeling too. I've somehow got to my early 30's, have a child and still feel like I've ever been in control of my finances and how to sop squandering money left right and centre! This adulting thing is hard!

debtfreeby2020_3

Hi everyone!

Thanks for your lovely comments as ever.

First things first, the budget meeting. I explained to my husband that I am paying at least £160 more than him toward the household expenses, and he was surprised. When I explained that in the past I have had to go into overdraft to buy tampons, while he squandered money on his model-making hobby, he was disgusted with himself. It is not his fault! When we moved house, we kept the budget the same as it was in our old place. We have decided the way forward. I am not going to take the full amount from him straightaway. I am going to up his contribution amount by £30 a month. He is currently in overdraft and I would like him out of that. So this month he is paying me £630, next month £660 and so on...I am not going to take any bull from him - he WILL up his payments or I will cut off essential services, like buying his food from the grocery budget. Then he will see how much things REALLY cost.

Budget

As promised here is my monthly budget:

Income
My income: £1486.44
Hubby input: £630
Re-selling: £100 estimate

Savings
Emergency Fund: £100
ISA: £12

Four Walls
Rent: £925
Council Tax: £137
Water: £0
Gas/Elec: £67
Groceries: £200

Entertainments
Mobile phone: £67.09
Netflix: £5.99
Microsoft Office: £7.99
Takeaways: £20

Personal
Clothing: £30
Nicotine Replacement: £28
Fun money: £80
Miscellaneous: £100

Debt Payments
Barclaycard: £73 minimum
Tesco Bank: £149.14 minimum
Overdraft: £0

I have £214.23 left to budget.

I have no birthdays this month. I hope to make an extra payment to the Barclaycard and to come in at £160 for groceries.

To clarify a few bits on there. The £12 going into the ISA is an estimate. I use an app, where you can round up your debit card expenses to the nearest pound. I only round those up which are 50p or less. It usually works out at around £12 a month. I have a little saved in there: £162.17

My mobile phone bill is high, I know. This month I can switch to a SIM-only contract - woohoo! I can't wait to get out of it. I have worked out it would be cheaper for me to go SIM-only rather than PAYG, as to unlock things such as good data, you need to spend in the region of £30. The plan I am looking at is £20.

I have allowed myself £30 for clothes this month. My knickers and socks have needed replacing for years. I am going to buy higher quality this time to see if they last longer. Any suggestions?

If you have any questions on my figures, please let me know. Don't be shy. It is good for me to be accountable.

debtfreeby2020_3

So I got into my cupboards, freezer, and fridge to see what we have for meals, and made my plan for the week. I cobbled together a little shopping list and made my way into the snow to get to town. I got to the end of the street to see the bus drive past 10 minutes early! I was livid. I am now sulking in my home office, wondering if I should just leave it until tomorrow.

indigowarrior

Oh no! I hate when that happens. Hope you manage to get out. Well done on budget.