New Start - Together

CuppaAndBreath

Hi everyone


Long time listener, first time caller...



My partner and I have had a lightbulb moment over the last month, and have been excitedly working on our finances, and ultimately our future.



We're completely obsessed with saving money now :rotfl: I have a feeling I'll be among good company here...


As an overview, we a couple in our 20s (OK, I was 30 last year :eek::rotfl:) renting in Hertfordshire. Between us, we earn just over £40k, and owe just under £9000 in overdrafts and credit cards.



Last month, we put together a very detailed budget for March, which leaves a surplus after expenses of £500. We've stuck to it tightly, and surprisingly don't feel deprived in the slightest - all that cash was just going on meaningless coffees, magazines, books... just wasted.



We have also been hunting for any possible extra cash we can get hold of, to get a good head start. Amazingly, we've clawed together just over £1000 from various old savings accounts, selling a couple of things, and current account switches. We can't believe it! :beer:


We have paid off £471 of debt so far, which covered a small £100 overdraft and an Argos card coming to the end of its 0%. Once the switch money comes through, we'll plough it towards the next credit card.



The best thing about this process is we're now looking at things like buying our first house. We've opened Lifetime ISAs to begin working on that. I've also added us both to the Amex charge card to help simplify our joint spending, but it also (however sad it sounds!!) feels like it brings us together more as a couple.


The official, original goal is to get the debt down to £6000 by the end of the year, but if I'm honest, we're going to smash that I'm sure. I can't wait to see by how much :beer::T


It's great to be here, I'd love to share our journey with you all :cool:


Cuppa

pidge04

Wow! Good for you two!

Saving and not spending does become addictive. Seeing the debt figures come down is also addictive.

You are SO going to do this!! :j

CuppaAndBreath

pidge04 wrote: »

Wow! Good for you two!

Saving and not spending does become addictive. Seeing the debt figures come down is also addictive.

You are SO going to do this!! :j

Thank you so much pidge! :j I'm so happy someone replied! :rotfl:

UncannyScot

Hello and welcome

As pidge04 said "you are SO going to do this".

If you need any advice or info on anything just post up and someone will be along to help... we really are nice that way

CuppaAndBreath

UncannyScot wrote: »

Hello and welcome

As pidge04 said "you are SO going to do this".

If you need any advice or info on anything just post up and someone will be along to help... we really are nice that way

Thank you very much too UncannyScot! So nice of you :beer: (What makes you so uncanny, then? :rotfl:)

Today has been good on the money front - we spent £7 on a midweek top-up shop, and cleared an Argos card plan coming to the end of its 0% period.

That brings our totals to:
- Starting debt £9160
- Paid off so far (2 weeks ish) £767
- Remaining £8393

We spoke about how much to start putting in the LISAs while our focus is still on paying this debt down. We're thinking £100 a month split over the 2, but will start with £25 next month and see how it affects the budgeting etc. seeing as we can't withdraw if it becomes necessary.

Tomorrow's spend should just be the train to work, so all good!

Last month's AMEX bill was £1042, the most it's been for quite a while. This does however include the yearly fee and a night away for our anniversary, so not too sickening :T This month's is on track for £450-500 so a lot less. We use it for food and general spending (within budget categories, of course!).

Anyway, enough of my rambling! Next on the hitlist of debts is a Natwest overdraft of £1200. I'm switching my salary from them very soon so half expect it to be taken away at some point in the future, if I'm still overdrawn that is. Should clear in 2 ish months, give or take, with the £300 from RBS coming in May! :j

Thanks for reading :beer::j

Kitten868

Hello there,

Are you snowballing or just picking off the debts as required?

A credit card that you pay for. Are you sure? And is a LISA better than a Help To Buy?

And I'm sure you will smash your target x

UncannyScot

Well, Scots are supposed to be very "canny" with their money and I wasn't so therefore, UncannyScot... but I'm thinking ye guessed that anyway

CuppaAndBreath

Kitten868 wrote: »

Hello there,

Are you snowballing or just picking off the debts as required?

A credit card that you pay for. Are you sure? And is a LISA better than a Help To Buy?

And I'm sure you will smash your target x

Thank you for the encouragement Kitten! :j
I know, a card with a fee isn't so moneysaving on the face of it! But we get more from it than the £140 a year. The points alone get us a night or two away a year, plus £50 ish to withdraw around Christmas time. Plus the extra purchase protections and travel benefits, it makes sense for us :T

The LISA seemed a better option for us - the higher annual allowance, lump sum deposit options, plus I can see us using them after we've used the balances for the flat, as an extra retirement bonus (will switch to S&S rather than cash at that point).

Thanks again for saying hello... it means a lot! :beer::j