Why is spending money so easy......

Snwps

Wow its been a while since I posted. The last month and a bit has been so busy my MSE'ing has gone out the window, so has the reins on the spending. So I'll just blurt it out and lay it all bare on the table right from the off. Debt figure has gone up a little to £21,940.61 (increase of £392.60 since 06/03/2021). This isnt as bad as I thought it was. Sometimes burying my head in the sand makes me feel more out of control than I am. 

Since my last post quite a few things have happened: 

We went to put our name down for an allotment, and got one!! We're now proud renters of a little bit of land to do some veg & flower growing. It only cost £30 for the year plus £16 for insurance for both of us. This is one of the reasons the debt figure has gone up a little. We had to spend to get some bits a pieces, such as cheap tools, wood and a poly tunnel, but now that we have them we can start pulling the reins on the spends. We have been really lucky in getting stuff for free too so this (I feel) helps counter-act the spends. We got a huge shed 9ft x 12ft in fantastic condition for free on f-book, as well as a load of patio slabs, wooden chairs, table and more. 

I haggled a new sim only deal with our phone provider for the 2 mobiles. Its only reduced a little bit from £9.02 each to £7.70 each - saving £2.64 per month. 

I have been looking around for cheaper car insurance for the 2 cars due 18th May. My renewal letters came today (both cars on multicar policy) and the renewal price has gone up. So as we have the money to pay the car insurances off in full  I have worked out that we can save £162.67 by switching and paying in full. £113.28 by switching and £49.39 for paying in full (no DD fee). I need to call my current insurer to stop the auto renewal and will accept the new quotes tomorrow. (Also worth noting that these new quotes are including DH speeding fine from 2020, which were not included in my current renewal quote as I've not notified them yet, dont have to until renewal I've checked the policy wording.) 

My employer has decided to move everyone to WFH going forward. This will mean I will have no commute costs and will save myself 1-1.5 hours per day not travelling to the office. 

DS1 has almost finished college for the year so needs to attend less, so this means less money for lunches. 

Take aways still an issue !

Snwps

Also sorted the issue with DH tax code. All sorted now and new tax codes are correct with the 2 employers. Tax will be repaid by next April. I did complain and query what had gone on, they said it was a system issue and heres a cheque for £50. I've not cashed it yet, need to do that. 

Snwps

Popping on to say Hello, its been a while!

So I've been keeping an eye on the finances the last few months, but admittedly I've not been as focused on the debt as I have been/should be. Due to this the debt figure is around the same as it was end of February 2021 (5 months ago)!!!. Today's figure is £22,557.45 - 40% cleared off the original balance just over 2 years ago. I seem to be stuck in a rut and cant get under the 20k mark. The belt has been slackened and it's so easy to fall into old habits. But I'm back to try and get into the right frame of mind.

A little good news though, the car loan has now finished with the last payment for July being paid on Monday. This free's up £145.17 to snowball. 

Possibly some bad news, DH may be lossing his job #2 - we're still waiting to find out. At the moment we're paying over the minimums to the cards which total £615.17 (inc this snowball) all on 0%, which would be another 3 years before clearing this balance. And thats not taking into account 0% deals ending and interest being added if I cant switch to another 0% deal! It also dont include any bonus I get at end of the year either.

Our new budget seems to be working well for us at the moment and we have about £1500 in Monzo pots for EF/Chrismas/Birthdays/Car in,tax,maint/clothes, hair cuts/home ins etc. Everything which is cheaper if paid annually is now paid annually and pots saved each month.

In July we had to MOT both cars and service and tax them too. That was a little costly and took a little out of the pots. But done now for another year fingers crossed.

I'd like to aim to get the debt figure to below £17k by end of 2021. 

Talking about slipping into old habits, with the car now been paid off I find myself dreaming of getting a new one. Also we were supposed to go on holiday in October but was cancelled and find myself searching for luxury holidays online. Its nice to dream! Need to remind myself 'its a want not a need'

I'm off to go catch up on other diaries to help the motivation and focus. 

Snwps

Not much change here lately, money wise. Still waiting to hear on DH's 2nd job. I've started changing my calculations to not include the income from that, so using a 'worst case scinario' version of the DFD. Based on us just paying the monthly DD's and the snowball (no 2nd income or bonuses) we're looking to be debt free September 2024 (3 years and 1 month). This is also based on us moving to new 0% deals once the current deals end. Im looking to pay off more to the debts to get this date down, but I dont want to stretch the budget too much or we'll be back in square 1 of paying too much to debts leaving not enough to live on  leaving us to use the cards, and around and around we go. The budget is working for us as the moment.

This is so dis-heartening I feel like were not getting anywhere and its a never ending road. I've gone back to the drawing board to see where we can save. The usual areas could be improved on, groceries, take aways, sky....

It doesnt help that DH doesnt have steady hours at job no 1. I base the budget on the lower end of the average of take home per week then plan to overpay any extra but it doesnt happen. This is another area I can look at to see where it's going. 

On the other hand, the allotment is going really well. Being our first year we have had some costs to pay out but the veg we've grown is the most expensive but delishious produce ever lol. My mental health has improved, the relationship with DH has grown and we're closer than ever. I'm getting fresh air and sunshine and exercise. I've also lost almost a stone in the last 4 weeks. Its something we're planning to continue and grow and going forward the costs should be minimal as we've got the tools and major things needed. 

I've completed my final year of college after 3 years. I just need to sit the exams now. Fell a little behind due to covid. Plan to pick this up end of 2021 and get my full qualification. Have been looking to get my university degree but it would be very costly and time consuming doing it alongside work and running the home. I cant see this happening.

DS1 is going back to college in few weeks and DS2 is in final year in school. This makes me feel so old!

Snwps

I've been a little useless this year in providing regular meter readings to our Gas/Electricity provider. We had a smart meter, installed with with Ovo a few years ago, however I switch providers regulary when deals end/to get cheaper. After switching my smart meter is now useless so manual readings have to be provided every month. Its in my calender and I get reminders but usually when Im out and then I forget. My last reading was in March! So last night I logged on, downloaded my recent bill and uploaded my readings. Good news is that I was in credit, and after updating my readings I'm still in credit by about £130. Im hoping this credit will increase a little before the weather changes to carry into the winter months. 

I honestly thought I'd owe a debt. Due to having 2 teens home on their games 24/7 and me now working from home permanently and not been as careful with usage as normal. But phew! 

Need to phone sky!

Payday on Friday, although it dont mean as much as a few years ago. I have my budget all set up and all I do is allocate to my pots on YNAB. The DD's are all set up to take payment so it's pretty hassle free. 

Been racking my brains on how to earn some extra money lately seen as both DH and myself no longer have jobs #2. I've applied to do a bank account switch so all going well that could lead to £250 boost. Also been playing around with my budget and spreadsheet (couldnt honestly do this 24/7 but the actual figures never change) trying to see where I can cut and save to allocate more to debt. I dont have anything to sell (maybe a kidney!)

Snwps

Had a NSD yesterday, only popped out to take DS1 to college to sort out enrollment. 

DH and I have a rare night off together tonight so having a date night at home. We will have a take away (budgeted) and movie night. He's working 8 nights straight with just tonight off, so we're letting our hair down. 

Finalised the bank account switch yesterday and everything should go through mid September. Fingers crossed we get the bonus. We meet all criteria so should be fine but dont want to count our chickens. All being well should get £250 by end of September.

My payday tomorrow. I spent some time last night filling in my pots on YNAB, premature I know. I do this all the time when I know we're getting money in. I'm an eager beaver. So YNAB is showing a big red angry minus total at the moment but all will be well tomorrow once the salary goes in. 

Off the back of this I'm going to send an over payment to the main CC of £295.17. I've also got some cash here (£80) which I need to pay into the bank (off a friend for some tickets purchased) which will also go to that card. 

I've already worked out the extra pay DH will get for working extra hours this week. Should free up £200 to go to CC when he gets paid next Wednesday.

Some good news, got my AAT Level 3 results this morning and passed. Phew! Ive completed my Level 4 course just need to sit the exams now once college starts back up. Looking forward to getting this finished.

I'm looking forward to the Bank Holiday weekend. I'm cooking roast dinner on Sunday. Mum is buying the meat so just the veg to get. I have potatos, onions and runner beans from the allotment so shouldnt be too bad. My sister normally makes us a dinner so only fair to reciprocate. I normally chicken out of cooking and order a take away sunday lunch which costs over £50 so saving a fair bit by making it myself. 

Got weigh in tonight, really hoping for my stone award. Only joined 4 weeks ago so pleased with loss so far. Just need to keep up the momentum.

Still not phoned Sky  

I'm going to speak to the kids about their pocket money. They only get £5 per week paid into their bank accounts. I hoped it would teach them money skills. It hasnt. The money goes in on a Wednesday and I can guarantee that within a few hours (unless they're in school) its been spent on game credit for PS/XBox. I cant do it anymore its such a waste so unless they start saving or getting something worthwhile then I'll be stopping the DD.

Anyone elses kids like this? Any tips on how to get them better with money? I worry they'll end up like me when they're older.


Now £22,285.92 @ 26/08/2021 - £15,207.33 - 40.56% paid

Snwps

Lost 2.5lbs last night. Thats 1 stone 2 lbs in 4 weeks. Just need to stay focused. 

Today is payday. YNAB was already sorted so I've paid £325.92 to CC. Total debt figure stands at £21,960. There are no further transactions in August so this will be our end of August figure. £15,533.24 paid off (41.43%). 

I need to go grocery shopping later (I hate it) and have £63.02 left in my budget. 

Bingeing a little lately on MSE Forums. Looking for ideas and inspiration from others. I love reading the diaries and seeing people succeed in their journey. I'll get there one day. I'm so close to the teens now just need to keep going until I clear that 20k mark. Should reach that end of October. 

Hope everyone has a lovely weekend. Im hoping to spend some time with the family up the allotment and making a roast on Sunday.

Snwps

Last weekend was lovely. Made a roast beef dinner, was yum. Lost another 2.5lbs this week, so 1 stone 4.5lbs in 5 weeks. Planning on loosing another 2.5lbs this week to get my stone and half. It is doable, I have nothing planned. Being on a diet is really helping my budget in that meal planning and shopping lists play a big part in staying on track. Dont get me wrong we're still having take away - 1 a week, but its healthy version.

One of my cards was coming to the end of its 0% rate end of this month so I've done a little credit card shuffle and moved to another 0% rate for 20 months. This takes it to May 2023. But the fee added about £108 onto the debt. 

I've sold a few things the last few days and made £50, so today this was paid to the card I'm concentrating on at the moment. I couldnt quite transfer the full balance to the 0% and left £238.80. So this card is now at £188.80. 

I have made a note to check my Nat West rewards account on 7th. It should have £40 available to cash out so this will be paid to the card once clears to my account.

Still waiting to hear on the account switch. One is on 6th Sept and the other on 10th Sept. 

Still need to phone Sky. Will do this tomorrow for sure. 

My next 0% deal to end is end of March 2022 and the balance is currently £3,130.24. I'm really hoping we get a bonus in work before then to help pay it off. But I'm not holding my breath. Theres another two 0% cards ending in 2022 (April and August) and including this £3,130.24 it makes a total of £12,945.24 to be paid by end of next August. I'm not 100% sure this will be possible and may have to do some more shuffling but this is what I'm concentrating on for now. 

I forgot to send the letter back to HMRC about DS1 staying on in college. I posted it yesterday hope it reaches them in time. 

Snwps

Right I've just had a massive shuffle of DD's for the debts. Over the years I've had DD's set up at a fixed amount to be taken each month. I've just looked through what the minimum payments are for each credit card and some were double the minimum payments. This is OK in that it eats away at the debt but it's not really snowballing the payments. For example I had a 0% deal ending May 2023 with £80 DD but the minimum was only £30. 

So I decided to change my DD payments to round up to the nearest ten pounds. This makes my DD's £340 per month, it was £605 inc the snowball for the car loan ended in July. This means that I'm able to throw £265 at the main credit card to help clear in time before the 0% ends. This works for the card ending in March 2022, but wont be enough time for the other 2 cards ending in 2022. (This is just the DD overpayments and dont include other overpayments depending on DH's pay)

Have I done the right thing?

The only downside I can see for this is that the difference will need to be taken from DH's weekly pay so I'll need to be very on the ball and diciplined to make manual payments for these overpayments each week. I have it on my spreadsheet and have been doing this (in a way) over the last few months as I've set up each the card payments to come out of 1 weekly pay. I've worked it out to the end of the year. 

Any thoughts? Fingers crossed this goes to plan.

TheAble

Definitely no sky, new cars or holidays when you're running in debt. There'll be plenty of time for these things once you're out of it. How much is the sky costing you? Hopefully it should be obvious that paying out on this sort of stuff when you're thousands in the hole is crazy.

Re the takeaways - yes they may be budgeted but that's still money you could be throwing at your debts. In the meantime - beans and rice, rice and beans, a la Dave Ramsey. (And you don't see the inside of a restaurant unless you're working there!)

Not quite sure on your numbers but generally it's good policy to throw as much as possible at the 0% expiring soonest. What sort of income are you bringing in?