Help please! SOA Included

Iwantanewlife

Andyjflet said:

I'm a big Dave Ramsey advocate, did you use this method in the end. I'm interested to know if you cut up your cards and closed your accounts etc ?
I have a way to go, paying child maintenance is my biggest expense but I've started my first snowball paid off and the amount is going to the CC above which is on zero percent. 

Hi AndyJflet

Yes followed Dave Ramsey 100%. I downloaded hundreds of his podcasts and listened every day, as well as being obsessed with this forum and starting my own diary on here!

I closed 3 accounts and have left one credit card, which is at £0 with a £3.k limit. The reason I have kept it is because my mortgage broker advised because I have some adverse credit history keeping a credit account rolling for a long period of time will be good for credit utilisation and also to show I can be responsible. However, what I would say, I now do not spend like I used to. Its not any sort of temptation any more. I do my budget every month before I get paid and plan for nights out, clothes etc in advance, so there just hasn't been any need to use it. I also cut up all the cards, and removed from all my accounts, so if I ever do want to use it I need to order and wait for a new card. I suppose that's a bit of a safety net in case I was tempted. I switched jobs back in January and so I did have a gap in pay and that was the only time its been used since LBM. For me having an emergency fund (that isnt credit) and budgeting, and budgeting properly is the key. I'm one of those people that once I set my mind to it, I will do it 100%. I hate the feeling of feeling anxious about money, and especially since now moving into my new job (clearing about £4k a month) I felt id let myself down as I should of been living a better life, and I should of had more to show for my hard work. 

Although my debt was never huge in some peoples terms ( I think at the highest point was about £6k) it was all on ridiculously high APR (payday loan types) which meant the ridiculously high monthly payments which were eating up all of my disposable income, never made a dent in what I owed. Not only that, living in London with one income and a child to support was tough however much I could earn. Team that with stupid spending habits and a love for holidays and going out, was a recipe for disaster!!

I wish you the best of luck with your journey. Keep your motivation by imagining financial freedom and how good it will feel. It will all be worth it in the end. 

Iwantanewlife

sammyjammy said:

Have now read all 72 pages of your diary, what a ride, you are one single minded person aren't you!  I wish I could be.  Hope things are better for your son, has he been at school during lockdown?

hahaha you could say that.... or stubborn lol. I hope my rambling didnt bore you too much!!!

Yes so im a key worker, so ive worked the whole way through whilst trying to home school, which FYI has been an epic fail!! My son returned to the key worker group at school a couple of weeks back so I could get some more hours in but only for a couple of days a week. Unfortunately the school couldn't accommodate all the key worker children in the space they had so it had to be shared out. I cant moan though, lockdown has been amazing to finally clear this last credit card. I feel so lucky to still have a job and to have stayed healthy. I really feel for what people are going through at the moment, especially if finances were already difficult. I remember the sleepless nights well, the feeling of helplessness so to magnify that with a pandemic would just be appallingly bad. 

enthusiasticsaver

Wonderful news.  I have followed your diary although not read it recently so will get over there to check out your debt free message.  You have done so well to get through changing your job and get rid of your debt.  Is it a new house soon? 

Iwantanewlife

enthusiasticsaver said:

Wonderful news.  I have followed your diary although not read it recently so will get over there to check out your debt free message.  You have done so well to get through changing your job and get rid of your debt.  Is it a new house soon? 

You were amazing throughout! Thank you so much for your advice and support! X

Jeems

Many congrats on your journey! If you have the time, it'd be super interesting to see a present day SOA, just so people can see and compare the old and new you, and how you manage your money differently.

Iwantanewlife

Jeems said:

Many congrats on your journey! If you have the time, it'd be super interesting to see a present day SOA, just so people can see and compare the old and new you, and how you manage your money differently.

Thank you! And absolutely I did actually think to do this myself. Will get one done tomorrow and re post! 

Iwantanewlife

Jeems said:

Many congrats on your journey! If you have the time, it'd be super interesting to see a present day SOA, just so people can see and compare the old and new you, and how you manage your money differently.

Hi Jeems, below is my new SOA. As you can see ive got a car on HP, however this is paid for by my company and i am actually able to over pay the loan with the money left over from my allowance. I also claim back most of my fuel costs which are really high due to the amount of travel i do. My insurance is high because I have had a company car for so many years I dont have any no claims bonus's. Im hoping when this is renewed it will come down! 

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 1

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 3255.2

Partners monthly income after tax....... 0

Benefits................................ 84.2

Other income............................ 520[b] (Car Allowance)

Total monthly income.................... 3859.4[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 445

Rent.................................... 1000

Management charge (leasehold property).. 0

Council tax............................. 117 (Spread over 12 months)

Electricity............................. 40 (Gas and Electric are pre paid so I dont ever have any nasty surprises!)

Gas..................................... 40

Oil..................................... 0

Water rates............................. 14 (metered)

Telephone (land line)................... 0

Mobile phone............................ 45 (In contract until September, this will then go to sim only)

TV Licence.............................. 13.5 (I actually pay this quarterly, so a rough idea of what the monthly cost is )

Satellite/Cable TV...................... 25 (Sky and netflix)

Internet Services....................... 24 (one of my first switches on my journey)

Groceries etc. ......................... 250 (when i had debts I had a budget for £200, recently uped to the £250)

Clothing................................ 50 ( I save this each month for when things are needed)

Petrol/diesel........................... 150 (hard to work out as I claim most of it back so probably lower than this)

Road tax................................ 2.08 (£25 per year)

Car Insurance........................... 144 (ridiculously high, but the cheapest of my choices!)

Car maintenance (including MOT)......... 100 (goes towards MOT and servicing, plus any breakdowns etc)

Car parking............................. 20 (again claim most of this back, so this is what i put aside for personal)

Other travel............................ 10 (personal use for taxis etc, just left in a pot)

Childcare/nursery....................... 100 (this is savings at the moment as child care is closed, moving forward I wont be using child care like I once did as I will be working from home more)

Other child related expenses............ 58.88 (Sons football and Ipad line rental)

Medical (prescriptions, dentist etc).... 7 (Put aside for the when antibiotics/ calpol is needed)

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 11.24 (got great cashback on this!)

Life assurance ......................... 7.94 (again used topcashback!)

Other insurance......................... 0

Presents (birthday, christmas etc)...... 75 (this is presents, parties for my son and Christmas)

Haircuts................................ 25 (this covers my son having his hair cut each month, then remaining adds up to my hair cut which is irregular)

Entertainment........................... 140 (when i started my journey, I kept this between £30-£50 some months didnt use anything!)

Holiday................................. 50 ( new addition for the budget after debt. will go towards a trip next year)

Emergency fund.......................... 100 (emergency fund 1 that I am building, this is used instead of credit)

Savings Account......................... 750[b] (this is actual savings towards my new house)

Total monthly expenses.................. 3814.64[/b]

[b]

Assets[/b]

Cash.................................... 6423

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 1

Other assets............................ 0[b]

Total Assets............................ 6424[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 21256....(445)......0[b]

Total secured & HP debts...... 21256.....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR[b]

Total unsecured debts..........0.........0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,859.4

Expenses (including HP & secured debts). 3,814.64

Available for debt repayments........... 44.76

Monthly Unsecured debt repayments....... 0[b]

Amount left after debt repayments....... 44.76[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 6,424

Total HP & Secured debt................. -21,256

Total Unsecured debt.................... -0[b]

Net Assets.............................. -14,832[/b] (remember this is actually a business debt)

Any questions or suggestions, give me a shout! always love messing around with budgets!!

ohdearhowdidthathappen

I remember your original post and followed your diary (although think I lost it during the change to new format!).  So glad to find you're debt free and have such a positive future for yourself and your son... I remember how single minded you were and how focused you were on doing the best for your child.  Good luck for the future 

Iwantanewlife

ohshithowdidthathappen said:

I remember your original post and followed your diary (although think I lost it during the change to new format!).  So glad to find you're debt free and have such a positive future for yourself and your son... I remember how single minded you were and how focused you were on doing the best for your child.  Good luck for the future 

Thank you so much for your kind words!! doesnt look like you will be far behind me!!

darrannah

well done, I subscribed to your diary, I'm so glad you've made it to being debt free, but most of all to being a happier person I too hope to be like you one day