From debt to Dr. Debt-free!

moneyphd

I've been meaning to write down the measures I plan to take to nibble away at the credit card debt. I live quite a frugal life - don't drink or smoke, I'm not into fashion, don't have a crazy social life. I love being at home with OH and my lovely dog, and when I do meet friends it's usually for a curry or for a coffee, so less than £20.

However, there are a couple of areas where I could really stop frittering cash, so these are my new years resolutions:
1. Slimming World. I only go to get weighed and chat to my friend who I go with for half an hour. I can't stand the talky bits after the weigh in, so I nip off when it's about to start. A few months ago I bought a pair of snazzy scales that work with an app, so I will continue to use this to track weight loss. I can still follow the diet as I've got all the books etc. Saving: £4.95 per week.

2. Following on from weight-loss aspirations, my rule is to never buy anything to eat/drink when I am alone. My workplace is jammed full of cafes, refectories, and a couple of Starbucks. I'm forever grabbing a coffee or lunch items because I haven't sorted out my lunch, or I'm craving caffeine. This is ridiculous when I have a kitchen with a kettle, fridge and microwave opposite my office - - less than 5 metres away!!! Having said that, I love working in a coffee shop but I plan to always make my own drink. I did this today - took myself and my laptop to Starbucks but made a cup of tea in one of the hundred insulated cups I own! What a revelation! A nice cup of tea - cost: negligible. Saving: £3.50 for a latte.
I love a coffee shop but I'm only going to pay when I'm meeting a friend or my partner, then it is a treat.

3. Stop buying odd bits from supermarkets. My partner deals with the grocery budget and does the shopping, and when I'm organised and tell him what I want, he always makes sure the ingredients are in (we eat different things as he's an athlete and basically just eats boring protein-based meals). But, I'm rubbish at meal planning, so I'm forever popping into supermarkets on the way home to buy a couple of things. Those £3-5 purchases really add up! So I pledge to meal plan and stick to it.

I think these three things will easily save £100 a month. If I can face it I might analyse the last few weeks and see how much of a difference these will make.

I am also going to sell some stuff on ebay, I've got some clothes to declutter.

At the end of the month, whatever is left over my emergency fund amount of £4030, I aim to pay off the smallest credit card - I'd like to get rid of at least one by the end of the year.

Wish me luck (and thanks for reading!!)

blue_eyed_girl123

My area of interest is deprivation and the socio-economic factors that can change a person's path in life, also what interventions are needed to prevent this, in working with under 18's .

I can choose an EdD or a PhD but have been offered a fees scholarship by my current Uni (dependent on successful grades achieved), for which I'm hugely grateful and currently working through my MA Dissertation, PhD proposal, planning a wedding and working full time (this is very much my own fault, but makes 2019 quite exciting ).

Glad to see your home insurance is cheaper

moneyphd

blue_eyed - best of luck with the dissertation, sounds like you have a lot of exciting things on your plate! I'm the same, like to have a lot of things going on at the same time, gotta keep moving forward! PhD project sounds very worthwhile. I grew up in relative poverty, in a single parent family, the first person in family to go to university. Now, I'm a university lecturer, doing a PhD, homeowner, car owner, so doing 'normal' things for most people, but pretty unheard of in the areas in which I lived as a child. I attribute my success to my local library and a succession of very supportive, encouraging teachers, who really believed in me and told me I could achieve anything. I think the thing that made the most difference is their high expectations of me - they made it clear that I was destined for university so I too had that belief. Anyway, lecture over - good luck with the research!!

I've had a couple of small successes since I last posted, and one blip.

Successes:
1. have had quite a few coffees out, but only when I was with other people. So they've been planned, enjoyed and budgeted for.
2. haven't bought any top up shops. Being able to work from home a lot as the teaching semester hasn't yet started has really helped, as my partner has been the one to pass the supermarket on the way home and so he has picked up any items needed and paid for them out of our budget. We have 100 left to spend on food until payday and have a full fridge - we'll be fine.
3. Quite a big one - my manager has negotiated a pay rise for me as I have taken on some additional responsibility - what a star she is. The pay-rise of 3k will result in a take-home increase of around 130 per month - I will check the precise figure on pay day. All of this money will be allocated to paying down the debt - probably the B'card as I've had that the longest and I hate it. Can't even say what the money on it was spent on, I've had it for so long on 0%.

So, as of the end of Jan, I will be paying off a minimum of £446 a month, so the balances should start coming down quite nicely...
4. Was really worried about the MOT/service but had it in today and it came to £221 - I budgeted for £400 and so I'm really happy!! The balance can be kept back to clear the rest of the bills this month, Jan/early Feb are nasty months for me but I think I've saved for them really well.
5. double checked my SA tax bill and it will be 597 rather than the 660 I misremembered it as being.
6. My student starts back next Thurs and so I can start racking up the £60 ph for her tuition. Expecting £360 for hours done last semester to be paid at the end of this month.

So, it is all in hand, moving in the right direction, I think! There will be some new bills coming up (OH birthday, holiday to pay for, dog's jabs) but I think this difficult bit is nearly behind me, which is a relief!

moneyphd

Oh, I forgot the blip - gave in and re-started Slimming World - £10 to rejoin.
Also treated myself to some gorgeous Timberland boots in the sale - £160 to £70. couldn't resist but they will last years, I hope.

beanielou

money phd.
You have done so well.
Be proud.
I salute you

moneyphd

Update on financial position until payday:

So far, I’ve settled the following bills:
Prof insurance 85
MOT 221
Car insurance 385

Current balance 710
Expected extra income: 360
Total 1070




To pay:
Car tax (due 1st) 190
SA Tax (due 31st Jan) 597
Professional fees #2 85
Total 872

Left over cash until payday 198
I will need some petrol but haven’t any other plans for the rest of the month, apart from the odd coffee shop stop, so hoping to end the month with £150 in the bank account.
I could make an overpayment on a credit card but a colleague and I have started a little business that has the potential to grow, but might need some initial outlay. So, I’m going to put this aside as ready money for when it is needed.
I will be paying 450 a month towards paying down the debt from Jan payday so I don’t feel too bad!

beanielou

All good then

mark55man

many streams of income are good, butit is easy to overlook basic savings when you have many complicated interacting money flows. My advice, is not to not do it, but if you do it make sure you know what each of your schemes are costing and what they are returning - and be ruthless about stoppingdoing soething if it is costing money, or time that could be better spent focussing..

I know as well howcomplicated it can be to pay down debt with your OH when you have different responsibilities -I think your SOA is twisted by the fact you haven't factored in your OH earnings and spendings. As long as you are both happy we don't need to know - but it can be difficult to unpick

finally packed lunches are a real saving- never forget that