Started so well but could do with some advice ..

mumofthetwins

Hi Guys
I have started so well since good Friday and have managed to pay a canny chunk off with ebaying and stuff but last night I was hit with a shock stick !


At dinner the boys reminded me they had their big school history trip coming up and it needs paying so I was originally just planning to pay as and when but i've now decided to list as a debt so my total has took a bit of a hit .. I have included the cost and food for eats and spends.


I then started thinking of all the things we have coming up for the rest of the year .. and the fact that my car has its MOT in a couple of months which I do need it for Job#2 so could do with an emergency fund ..
yep I have been listening to Dave Ramsey lol .. Brutal but Honest


so with the boys school trip and a couple of bits I am adding £2000 on my debt total .. but I would also like a £3000 emergency fund ...
Question is do you guys think I am better building the EF or just keep plugging at Debt and putting any emergancys on CC ??


Thanks a million Lisa x

fatrab

I have been bundling everything into what I'm calling an emergency fund but in reality it is a separate account that I'm contributing to each time I have "spare" cash, and will use it to pay big bills like car insurance, home insurance, road tax, essential repairs etc.


If you could operate a similar system would that work for you? I'm not a fan of the emergency CC idea but I know it works for some folk.

mumofthetwins

Thanks FR .. I was thinking of that method (just one big pot) .. it was just I wasn't sure if the back up CC was a better option .. I think I know deep down its not but im hooked on seeing the numbers come down lol
Lisa

fatrab

mumofthetwins wrote: »

..but im hooked on seeing the numbers come down lol
Lisa

Yeah I'm the same, it becomes an obsession! Building up my safety fund and getting rid of my main credit card felt great to me, I've still got one on a 0% deal but it'll be paid off by the end of the 0% term.

It's easy to end up in a panic when things pop up that you've forgotten about, just need to keep amending the budget to suit!

Best wishes

mumofthetwins

fatrab wrote: »

Yeah I'm the same, it becomes an obsession! Building up my safety fund and getting rid of my main credit card felt great to me, I've still got one on a 0% deal but it'll be paid off by the end of the 0% term.

It's easy to end up in a panic when things pop up that you've forgotten about, just need to keep amending the budget to suit!

Best wishes

Thanks FR .. you are so right I need to just amend as I go and try not to beat myself up


lisa x

elsien

Known expenses such as MOT, car service, insurance should be planned and budgetted for anyway. The emergency fund is more for the unexpected such as when something breaks down.
Maybe you need to re-look at your budget, put in everything you know is coming up for the rest of the year and make sure you put aside the right amount each month towards it. Then build up a separate emergency fund and work out how much to chuck into that and how much towards debt repayments depending on your priorities.
Have you done a full SOA - that can help jog the memory for everything you need to plan for and also helps things to feel a little more under control.

mumofthetwins

elsien wrote: »

Known expenses such as MOT, car service, insurance should be planned and budgetted for anyway. The emergency fund is more for the unexpected such as when something breaks down.
Maybe you need to re-look at your budget, put in everything you know is coming up for the rest of the year and make sure you put aside the right amount each month towards it. Then build up a separate emergency fund and work out how much to chuck into that and how much towards debt repayments depending on your priorities.
Have you done a full SOA - that can help jog the memory for everything you need to plan for and also helps things to feel a little more under control.

Thanks elsien
I do have the money for the mot and some repairs which may be needed but im more thinking incase I ned a new car ... I bought this one last year with savings and its the first MOT on it for me Its a canny car .. not new but reliable just I think im a worrier.
I have a pretty accurate monthly budget that I work off but the problem seems to be the extra things like festival trip, wedding we are going to etc .. (not annual stuff IYSWIM)


I think im just gonna bite the bullet and start the savings .. my card is on 0% and if I save and I don't need it I can always pay it off CC later ..


I think im just hooked on seeing the numbers drop lol

blitzboy

mumofthetwins wrote: »

I think im just hooked on seeing the numbers drop lol

Make yourself a little 'balance sheet' spreadsheet. List of debts in one section and then savings balance in another. Then on the bottom line you have your 'net assets', which is assets (savings) minus liabilities / debt (credit card etc).


That way you can still see the overall number going down as everything you save will improve the 'net asset' figure in the same way that making a payment against the debt would

mumofthetwins

blitzboy wrote: »

Make yourself a little 'balance sheet' spreadsheet. List of debts in one section and then savings balance in another. Then on the bottom line you have your 'net assets', which is assets (savings) minus liabilities / debt (credit card etc).


That way you can still see the overall number going down as everything you save will improve the 'net asset' figure in the same way that making a payment against the debt would

Thanks BB .. I'm really sad and have a couple of excel spreadsheets on my phone lol
But agreed that way I will see the numbers still going down

Lisa x