D - 16 Months

[Deleted User]

Have you considered switching bank accounts? Nationwide have a thing on at the moment where they give you 0% on your overdraft for the first 12 months, as well as 5% interest on your balance (for the first year as well). And, if you know someone who already banks with them, you and they can both get £100 referral bonus each. Worth a look

EmotionalSpender

This has been really inspiring to read - so thank you! And amazing work!

Money_mess

Thank you so much Moguline and EmotionalSpender.
You are right that the saving will see the repayments slow however like you say the savings are reassuring to have and they are important for a complete change in financial security.
As long a the debt continues to decrease and we are enjoying life a little while doing all this, being responsible and not wasting money, but allowing for some treats to make life bearable, well that is great.

I thought I would update today as I am feeling incredibly pleased. It is the day before pay day and despite it being a no overtime month and August pay, it has been the best month we've had since we started this journey. For the first time ever I have got to the end of the month, the day before payday, and managed to siphon some money into savings accounts. £9.22 to the emergency fund and £60 to the yearly savings. I've chosen to do this instead of paying it to debt as I have the MOT due in October and that will come out of the YS account (currently at £130) and also I need to build up to £1000 EF as a priority. Both these account make me feel secure and help me to feel a lot less stress.
This month we've managed so well despite unexpected school costs (I forgot to budget school dinners and already been asked for school trip money!) School uniform, two kids birthdays but 6 birthdays in total, a new baby of a close friend was born, we've had two parties (a kids one and a family get together) and a few other things.
It's all been possible due to a good budget that I feel like I've FINALLY cracked.

Debts £15,629.21

I've budgeted to pay off £327 next month. It will be end of october before we are under 15k however by then we will have paid out mot and service, have enough money for Xmas, have a few hundred in the emergency fund. So I'm ok with that.

[Deleted User]

Sounds like you're making really good progress! It's amazing what a difference sensible budgeting makes!

enthusiasticsaver

Sounds like you are making really good progress.

Money_mess

Good Morning.
Still here.
Wanted to update my progress now I have all my new year spreadsheets sorted.

I am.down to 6 debts outstanding.
Total outstanding is £14726.43. We broke the 15k barrier!!

In 2019 we paid off £5083.95
Less than 2018 Of £7184.13
But
That's because we moved house(cost of living increased here) and started budgeting properly.
So.im fine with it .
Its been 2 years on this journey and we have paid off £12,268.08.
I am so pleased with this figure as on the way I have learnt so much about budgeting properly.
So last year we managed to cash flow all expenses, birthdays, Xmas, the Mot (which was £500 in the end but luckily we had the cash)

Now I still have a long way to go. I know I could be more frugal and so I'm back to reading here and old style as much as possible. Yes we've cashflowed and paid off debt however things have still be quite tight at times and I know wouldn't have been the case with a bit more thought.

Things I've done to make 2020 better/easier
* switched to a Starling account with lots of pots set up.
* worked out my 12 month expenses, rounded them up and divided to get a monthly amount.
* done a 6 month forecast spreadsheet to see what's possible

Now hopefully with overtime and a (fingers crossed) pay rise in April we will smash it this year. Thinking positive.

This year I commit to
* checking my stocks before I shop
* doing 90% of my food shopping in Aldi
* walking more to save petrol
* cooking more economically
* sticking to the budget!
* stopping and thinking before purchases , there is so little we need.
* allotment- use it well this year. We need to be growing a lot of food 2020. We did well last year but were new to it. Next yr we can do better. We have lots and lots of soft fruit and strawberries. So just need to come up With a plan for veg. We have so many pots and seeds. Need to pay the yearly fees and will need compost this year as well as certain seeds and things like onion sets (all cheap in our allotment shop)

When it comes to needed purchases I will try 2nd hand first where possible and if it isn't I will be finding a way of buying said item cheapest/cheaper (shop around/discount codes)

Most of my new year targets involve me becoming more organised with shopping (particularly food).

So atm I have enough food for until Tuesday if I nip into Aldi on Sat morning for about £10 worth of top up ( I spent £45 last Sunday so I am VERY happy with this) there are 6 of us so it's not always so low but we have quite a bit in stock.
So that will take me to the 7th when I will have 7 days until our official January budget begins.
If my calculations are correct I will have £10 cash and £80 in my Starling account for 7 days. I will need to put about £15 petrol and £9 in the school dinner account.
So I will need to do another weeks food shopping on around £66.
Which is fine if I'm careful.
Determined to stick it out.

Then going forward after payday I know we can manage the year ahead.
I'm aiming to pay off the overdraft next ( by end April time) followed by my capital one account ( lowest debt of less than 1k - passed onto DC).
With any luck in 2020 we will
* clear 50% of our debt - £ 7364.
* save 4k in our LISA
* cash flow all expenses

The long term plan is to be debt free by December 2021. Which is a far cry from my original goal however is so much more realistic. We also want to have £10k saved towards a house deposit but December 2021. Leaving December 2022 to save another 20k. With no debt fingers crossed we can do it. Meaning in 3 years time we could look to buy a house.
I have to keep thinking of the long term goal, the house, whenever I get fed up this year.

[Deleted User]

Happy new year! Wow you sound very determined and it looks like you have a great plan in place! I'm sure you'll smash it!

Money_mess

Total debt is now £14,095.
We have paid of almost 50% of our debt. I'm working it out to be just under 48%
Next month is going to see us hit 13k (i cant believe this and I'm so excited!

I'm starting truly believe we can be debt free in 2020.

Using the Starling account has been a complete game changer! I have potss for EVERYTHING!

10 days until payday and everything is running smoothly. It's taken years to get here!

Also January spent £369.99 on food shop.
Compared to December's ridiculous £800.
Shocking.
Write everything down. Using up. Going to Aldi and eating lots of veggie meals.

Unbelievable.