Becoming debt free and saving for the future.

Doing_it_my_way

Hello I've had a quick read and one thing I just wanted to say apart from 'good luck!' was about the Norwich Pride, when I tried before to stop spending and pay off my cards etc. I think I went at it a bit much and very soon I was isolating myself from my previous life right down to things that I took pleasure from like cadburys turkish delight, I bought cheap chocolate instead which I did not enjoy anywhere near as much and made me miserable, I just think it's important to give yourself some treats and I suppose the key is to wind it into the budget, if it doesnt fit then obviously you cant do it, but somethings you do need to have and not feel guilty x

FootyFanDan

Loving reading the success you are having . I would agree that whilst it is important to focus on cutting out where possible, there needs to be allowances for treats. It is easy to go all out too quick and the resent having to cut stuff out, I found out that its best to find a balance you are comfortable with that allows a mix of both worlds. That said i admire how you are sticking to trying to minimise the things in life. x

DebtFreeMonkey

Thanks, guys. You're right about balance but it's the downside to being an all or nothing person.

When I get some more time, I'll update properly since I found the paperwork for my biggest loan and realise how ridiculous I was to take it out! 19.13% interest!! :eek: Debts are a bit more than I wrote.

Yesterday was a NSD and today should be, too.

Still using only food I already have and I should have a fair amount from my grocery budget left over, plus I've been topping up my little jar with change and whatnot. Every little helps, right.

But yes, balance. And that extra money can go towards a 'treat' or spending time out with someone, soon without the guilt. After all, I budgeted for it so I assumed it would be money 'spent'. Having said that, I don't want to waste it just because. If there's no opportunity to spend time with people or do/get something small I really want, I won't.

After this month, I'll also be adjusting my spending plan. If I only used half the grocery budget this week and continue to do so, then maybe I estimated a bit higher than expected

Sara21

Hi Alicia,

Do you mind telling me what app you're using to track your food spend? My partner is convinced we don't spend as much as we actually do so would love to be able to show him evidence! I know we could count receipts but I always lose some of the top-up shop ones

Good luck with your journey to debt-free!

Thanks

DebtFreeAliB

Alicia1804 wrote: »

Recently realised how much of a tool I've been. I'm in £12,000 of debt for no other reason that being impulsive, wasteful and superficial.

Starting this week, I've created a budget (I'm sure it'll need to be adjusted over the coming months) and it makes all the difference knowing where my money is going. That's how I know that this debt is completely unnecessary.

I use an app to track my money and I have one specifically for my weekly food allowance. Deducting each purchase from it makes all the difference! Its amazing what seeing where your actual money is going on in real time and paying in cash can do.

I'm currently 26, working a close to minimum wage job and by the time I'm 30, I want to be on the opposite side of the fence. It's completely doable. I have no children and so on so just knuckling down, tracking every penny and remembering my future goals should get me there.

I'm creating this diary to hold myself accountable. Let's see where I can be this time next year with a bit of focus, cutting back and discipline.

Hi Alicia - You are doing this at absolutely the right time in your life. You have seen the light while you are still young enough for it to make a massive difference to your future. It has taken me too long to come to my senses. My future will forever be affected by the mistakes of my past I think. Good luck with the debt payoff and save all you can when you are debt free. It will make such a massive difference when you are older. xx (Sorry - I know that sounds really patronising but it comes from a good place. I am trapped in a job that affects my mental health because I need to earn a particular amount of money to deal with my awful debt. I want to say the same thing to anyone in their 20s. I wish I could go back and do it all again - properly this time.)

DebtFreeMonkey

Let's start again...

I took out a loan with slightly less interest for a lesser amount. It works out saving me around about £1000 long term WITHOUT the over payments I'll be making, and unlike the loan I just settled, it won't charge me for making over payments/early settlement.

So that it, saved myself some pennies but it cost me quite a bit to do so. N*twest charged over £300 for me to settle the loan early. Madness!!

So yes. New loan is for £9,400 plus a credit card which should be finished by the end of Sept and two payday loans. Was looking at my finances and including a savings, £30 a week shopping and whatever I save from that as 'treat' money, a little birthday/Christmas pot, I should be debt free quite a few months before I turn 29 if I don't change jobs/my wage doesn't increase. Because things never run smoothly, though, I will allow myself until I turn 29.

Happy days.

55/55 things gone so far. On track!
£21.79/£30 left with no plans to spend in the next few days and including an tad expensive but eco friendly and flouride free toothpaste. That's my treat. Haha.
Today will be day 4/12 NSD this month.

Phew. Been feeling very anxious and in a very dark place these few days but I think writing out this plan, knowing what I'm doing will help. Now to make some smaller mini goals.

First: Clear credit card (and work on building a 3 month emergency fund).
Second: Get below £10,000 (continue working on emergency fund if needed).
Third: Get below £7,500 & work on a general savings.
Fourth: Get down to below £5,000 and continue to save.
Fifth: Get below £2,500.
Sixth: Debt free and turning 29!! Looking forward to this day. 30 will be a good age for me at this rate

So that's me, for now. Trying to force myself to get back to feeling positive.

Here's a little bit about me and it's not very happy reading so just a pre-warning here.

My parents have never been the best with money and that's filtered down to me. Luckily I'm working on that now but it's hard...

It's hard because buying things has very much been an emotional thing for me...

I was abused (not by my parents) for years and years as a child. Absolutely hated myself and punished my body by making it as 'ugly' and overweight as I could (forgive me, that was my ignorant child brain talking) and in the most recent few years, I've been underweight (though this was less intentional) and I've been headed back that way. To feel better, I'd buy crap I didn't need and I've kept that up for years.

Earlier this year, someone I love and who was like a second father to me passed away. I tried to revive him but it didn't work. I tell you, you know instantly when life leaves a person. I could just...feel it and from that moment, the guilt, too.

Luckily, I got back into art which has helped immensely but for the first few months, I went out and splurged on art supplies I didn't need and so on so just added to my debts.

Fast forward to now, at the end of July, I just suddenly woke up and realised my stupidity.

Here I am trying to fix that.

mark55man

Paying £300 to save £1000 sounds like a smart move, however annoying it was to have to pay £300.

although mentally it doesn't work like "what's done is done move on", with money it is much more like that. You are now in a better position with a better plan so that's all good

you just need to understand your triggers, and find ways to counter them. ie leave cards at home or say I'll come back and get it tomorrow (you won't a lot of the time, and when you do it won;t be an impulse emotional but but a real thing you need and want)

FootyFanDan

I can see why it is a little frustrating to have to pay £300, however in the long run it seems like a pretty smart move and its evident it has given you a pathway to map out a clear plan of action which can only be a positive.

I think most buying is linked in some form of emotion, i guess its a different emotion for the individual, the key is to figure out how to prevent those triggers (where possible) and focus on the positive. Sometimes in life we have to spend money haha.

Sorry to read about your loss, the pain of losing someone close is devastating and i can only imagine that magnifies if for some reason you feel guilt attached to that (sounds like you did what you could so try not beat urself up...easier said i know).

To get through what you have and come out on the other side positive reflects on how strong a person you are, take this forward in the debt battle and you got this

TravelGirl84

Hi Alicia

Thank you for sharing your story. It takes a lot to be so open and I think you should be really proud of where you are right now. I think you're going to boss this debt!!

TG
x

DebtFreeMonkey

Thanks for all the support, guys. It's great having this community to fall back on since everyone seems to get it.

Another NSD today! 5/12 so far, this month.

L£21.79/£30 still left for anything I need to buy
66 things gone so far but now it's getting tricky to get rid of things. Might fail this challenge but I'll try to keep going for as long as possible and I shall at least get rid of 1 thing a day.

Otherwise, not a bad day besides the fact I'm still losing weight. Had a lazy day since it's Sunday and I didn't have work today. I also ate PLENTY but I know I can constantly eat this much so need to figure out a plan of fuelling myself enough for how active I am. And yet I don't even feel that active... Hmm...

Hope everyone has a great week ahead.