My SOA and Situation Realisation

ryanm8655

Congrats! Inspiring for me as someone at the beginning of my debt free journey.

kimplus8

Most of you that had helped me in the past had said I need to post a SOA to get any real help so I have gone and sorted that.great first step-well done!
Just a quick note, to work out some of my numbers I have gone back through my spending over the last year again, well done, this is good that you have included as much as you can as its far more realistic and easier to helpwritten every transaction out on Excel and categorised everything. I have then taken an average of each category to use for the SOA. In the past couple of months I have been trying but this month especially to DRASTICALLY cut the costs. well done, taking baby steps in the beginning can be the catalyst to get serious
I had been pushing it off not because I didn't want to but because so much has changed recently it makes it hard for me to put everything in with certainty.
With regards to my flat, I did recently spend a lot of money I didn't have to refurbish the whole place but I saw an opportunity to really increase the value and things spiralled. It was difficult for me to be happy with the state it was in and since then I have really noticed a difference in my outlook. It has put a huge strain on me financially but I do feel it was worth it all things considered. whats done is done, move on, you spent it and you can't get it back now so chalk it up to experience and be happy that you may have added value to your property
So starting with the flat, I spent £10,000 getting it to what it is now and I had a friend from work make me a cash offer of £125,000 so I guess I did well. I bought the flat 4 years ago for £89,500 and in my last post commented on how I was thinking of selling it to clear all my debts and rent for a while. I have been put off this idea and thanks to others comments think slowing down and taking a step back would be the best POA.
Up until 3 months ago I had a ridiculous Mercedes C Class that not only was causing me huge financial issues but I also never used it. I got it when I thought I was going to be using it for work 2 years ago but since started taking the Metro into town and THANKFULLY got rid of it 3 months ago. Cost me £1,500 in the difference in value to loan but was the best thing I ever did. So now I have no car but get around just fine. this can be a positive thing, more opportunity for exercise and way less cost to youI do spend about £150 a month on Ubers and car rentals though which are inevitable every time I need to go somewhere. There is also the £55 monthly Metro ticket which I buy. so you need to weigh up if the cost of Ubers etc outweighs the cost of a cheap and low maintenance vehicle
Another cost I have not included is restaurants. I was dating a girl who was a lot more financially stable than I am which came with the cost of dates and meals out. I am also a sucker for forgetting lunch and eating out in town as well as going out with friends. From doing my budget this has been my biggest eye opener and NEEDS TO STOP COMPLETELY!THIS!!!!! way to go lightbulb! This was a huge money saver for me, I would take the kids out for dinner and grab a coffee on way to work, slashing these conveniences by prepping food etc save a small fortune
With my income it can vary soo much it makes it difficult to know what my monthly income on a given month will be. I am self employed and work in Sales so a good month could be £5,000 and a bad month can be £0.So try to find an average and get good at accounting for this penniless months when you are on a good month, keep that money aside in a separate account that you can 'pay yourself' from when you have a harsh month financially and is should help to keep the balance right over the year.


I hoe some of this is encouraging xx

kimplus8

shteca wrote: »

Huge milestone for me today!!
I just paid off my £7,500 NatWest overdraft and called them to cancel it!
I have been working on this immense mountain of debt for the past six months first focusing on clearing some smaller debts but this has been one of the hardest to clear or budget for. It was an every day reminder of how hard the journey is. Every day looking at my phone and seeing my balance say a - and not knowing the best way to clear it.
Now logging in to see £129 in my account is the most amazing thing. I almost feel like a normal person again. I feel like I can start my journey properly and budget correctly.
I am no where near being debt free. I still have a mountain of debt that scares the socks off me and motivates me every day but this was a huge moment for me.
Thank you everyone for the support so far.
Only £22,000 in consumer debt to go. Sure does beat £54,000 I had a year ago!!

This is amazing!!! massive massive congrats. :T:T:T:T

enthusiasticsaver

How brilliant to clear that Sainsburys loan. I remember your first post and the mess you were in so you have done amazingly well to turn that situation around. I think you have a bright financial future ahead especially if you continue to budget but hopefully save rather than taking on debt in the future. Well done.

beanielou

You are doing so well :T

shteca

I am welling up!
One of the most significant days of my life!
I am 100% debt free apart from my home.
My mortgage stands at £64,000 but I have no consumer debt.
My journey begin 18 months ago when I said never again. I went on a scorched earth plan and sold everything I had including my car, my TV, no holiday, no eating out nothing. I have traveled on public transport and shopped in Aldi and spent nothing on myself other than bare necessities
I have just made the final two full payments on a MBNA credit card and a Post Office Credit Card totalling £9,500.
That brings my total paid off in 18 months to £54,273!!!
I am so ecstatic right now!!!

beanielou

shteca wrote: »

I am welling up!
One of the most significant days of my life!
I am 100% debt free apart from my home.
My mortgage stands at £64,000 but I have no consumer debt.
My journey begin 18 months ago when I said never again. I went on a scorched earth plan and sold everything I had including my car, my TV, no holiday, no eating out nothing. I have traveled on public transport and shopped in Aldi and spent nothing on myself other than bare necessities
I have just made the final two full payments on a MBNA credit card and a Post Office Credit Card totalling £9,500.
That brings my total paid off in 18 months to £54,273!!!
I am so ecstatic right now!!!

Blimey, that is awesome:j:j:j:T:T

Yellow_mango

:beer::j:T

Amazing! Well done!!

JayRitchie

Great job!

shteca

ryanm8655 wrote: »

Congrats! Inspiring for me as someone at the beginning of my debt free journey.

Good for you for taking on the challenge.
You can wonder into debt but it takes a HUGE amount of will power and strength to get out so well done for committing to it and beginning to make a change. If you have a debt free diary please do post the link and I would love to check it out