Digging my way out

Doing_it_my_way

Ooooo Iwantanewlife, so do I I've read this forum for years and years, it is amazing, sometimes though I think reading isn't enough and it is time to write a diary, definitely for me as it seems to encourage me to focus and think money saving at all times. Sometimes I can do it and sometimes I cant, somethings push me a bit far but the hints and tips on here are fab and make a huge difference, it's a very friendly place to be

Doing_it_my_way

Well I made chicken and mushroom pies, added some frozen onions and a stock cube and ended up with 6 pies all muffin size, so DH had two for tea with chips and DD called with her fiance so they had half a pie each 'just to have a taste' as they were having their meal at home later. The pies and DH's chips probably only cost about £1.25 in all so a bargain really. There are 3 left for tomorrow so DS and DH can have them for dinner or DH can have some for tea again . He is not fussy thankfully lol
A NSD today and I suspect the same for tomorrow

Doing_it_my_way

Yes Saving Homes that's definitely the case with us, I always forget our car insurance so when it's due it goes on the cards, thank you for that, I will factor it in!!

Doing_it_my_way

Thank you Alicia 1804, I am realising that I need to check my bank daily and balance it, and also do the same with my purse, I couldn't believe how much clarity I had from breaking down my Aldi receipt the other day, into needs and wants, I might do this each time now

enthusiasticsaver

Good luck and you sound very focused.

I am a definite fan of the emergency savings account and it is especially important for anyone with erratic income such as yourselves. Saves adding debt to a credit card or overdraft.

Watching every penny you spend is a sensible thing to do when you are clearing debts. I am not familiar with the 50/30/20 method but presumably it is broken down into wants, needs and savings? Where does debt repayments fall into this? What about pensions?

I am very jealous of you having horses but I guess they are expensive to keep. Would it be worth saving for things like vet bills, feed, other things they need?

Doing_it_my_way

Hello enthusiastic saver, an emergency fund/savings is something we have never had, so I am hoping it will make a big difference.
The 50/30/20 is something I read on the internet, its no more than 50% of your income on necessities, 30% on wants and 20% on savings or if in debt, debt first. As I understand it you can move things around so if you wanted sky or netflix but it put you over your 50% of necessities, then you can put it in your wants amount, a pension for me would go in my necessities but if it didn't fit in there then it would be put into my wants because I would want to save for it. It is meant to keep you within your means and helps you determine between needs and wants, savings and debt payments are a must.
Apparently it works well, but I don't know...the 30& on wants seems huge to me.
Yes it was fab having the horses when I was a bit younger and my DD competed but now they are pets, all 4 of them. They are all getting on a bit or are unable to be ridden due to long term lameness, but they are special and I can honestly say I would sell my house to keep them, they are our family. We have them at home so we don't pay livery but hay and straw is still a lot of money, and then there is the farrier and wormer etc. etc. etc. they are on the cheapest bedding and their food is sensible and we don't give every supplement on the market as the companies would want us to, but yes they are expensive although there is nothing on earth like having a horse look into your eyes I think you are right maybe a separate emergency/savings fund for them as they can wreck a rug in minutes, yes I like that idea I am going to do it, thanks

enthusiasticsaver

I am a big fan of saving (clue in my user name ). I think an emergency savings account and horse savings account will definitely help you rely less on credit which is a necessary precursor to getting out of debt.

I loved horses (still do) and used to ride when much younger as did my eldest DD. I can understand why they are so loved but the expenses that go with having any pets/animals are usually high. Having land will help keep them lower though.


The 50/30/20 thing is interesting so I will do some more research on that as a budgeting tool. 30% sounds like a lot but I would think things like gym memberships, sky subs, entertainment etc would all fall under that. Also for some people they may consider some things as needs whereas they really should be wants (like Netflix or an annual holiday for example) but if someone never goes out and spends on entertainment Netflix is a cheap alternative so could then be called a need?

savingholmes

I think you need to find the numbers that work for you. There are loads of different systems out there. Currently we are loosely following the DR baby steps. We are trying to a) stay on budget b) ideally repay debt at 40% of net pay. When we have repaid debt - we plan to build up a 3-6 month emergency fund and then get our pensions / investments upto 15% of gross income and then start seriously over-paying the house.

I heard of another system this week that was:
50% necessities
10% long term savings for spending eg car, new kitchen etc
10% investment (where you only spend the earnings when you retire, never the principal)
10% education (so you can earn max dosh etc)
10% giving
10% fun!!!

Even that guy - said if you can invest more do - but balance it with a play / fun account for spending. It was interesting as when I compared our net (after tax, ni and pensions deductions) spending - the ones where we were under those categories were education and investment. I liked the idea of a fun account - but if I add personal spends, meals out, hobbies and holidays into that we are already at over 10%.

Doing_it_my_way

Enthusiastic saver, yes I think it all boils down to recognising needs and wants and that will differ person to person, but I suppose you can only use the percentages allowed, so if you can't buy it on a need as that category is full so you transfer to a 'want' but that is also full, then you have to reconsider what you are doing as the last category is pretty much untouchable. Be interesting to see what your research comes up with because in all honestly I have only briefly scanned it so could be way off

Doing_it_my_way

Savingholmes that sounds like us I think, £1000 emergency fund, debt, overdraft, then savings of £10,000 (if poss) and then attack the mortgage in that order.
I think when I look back over the years, the opportunities I have had and done nothing with are shaming. Too much of 'oh lets just do it and worry about it in the future' attitude it seems, I should never be in this situation, DH has nothing to do with the money just earns and spends it lol, but hes not having a go at me either, but we both realise the time has come to look to the future, if we had saved years ago and budgeted we would ok now, but at least its happening now