End in sight - all being well!!!

Flossymuldoo

Hi folks, I’m new here and I’ve been reading all of your awesome money saving adventures so I think posting my own diary will help me get out of the mess we’re in and avoid ever being in this situation ever again!

We’re currently in around £64k of debt. It’s a mixture of CCs and loans caused by not having control over our spending and further complicated by mat leave, 2 redundancies, a house move, extortionate and unexpected tripling of childcare costs for a year, urgent house repairs and every single appliance in both ours and our BTL house needing replacing. Also if I’m honest, our love of holidays when we have not been able to afford them.

We are accidental landlords. The house has cost us a fortune since we’ve been letting it so we have made a little profit but not really worthwhile. And we got into a situation where we couldn’t afford to sell the house because of the cut of income while the house was on the market.

In August this year after the death of a close relative I got my LBM. I realised we needed to sell the old house. Then lo and behold a week later the tenants gave noticed. The planets appeared to be aligning!
We knew we couldn’t afford the drop in income while the house sold and so we went to our bank and laid all the cards on the table. They helped us with a consolidation loan to reduce our outgoings so that we could afford to sell the house. Yay!
A lick of paint and 1 week on the market and the house sold, and it’s all going through at the mo.

We will clear about £55k so the majority of the debt will be cleared but I think I need a diary to get control of our spending so that once the debt is clear we will never get into this situation again. I’m also worried that this house sale is almost a ‘get out of jail free’ card and I worry that when it’s all gone I’ll slip back into being complacent.

So this month has been all about tracking our spending and figuring out where our money goes so we can set realistic budgets.

Flossymuldoo

Until the house sale goes through I also need to live within my means so, I also looked over that last couple of months bank statements and what they showed me were:

We were spending WAY too much on eating out/takeaways/work lunches.
5 takeaways at £25 a time = £125. Work lunches. 16 days at £5 = £80
Total = £205+

I was spending a lot on parking and travel to work.
£30 petrol + 16 x £7.75 for parking
Total = £154

I was spending more than I thought on groceries.
Total £400

So, I’ve reduced the eating out budget to £50. No takeaways so fat and I’ve been taking packed lunches to work.
Saving: £150 pm

I’ve started getting the bus to work.
Saving: £110 pm

I have been shopping around different places to find cheapest groceries. I was doing a bit of that anyway but have stepped it up a gear. I’ve made a saving but I know there’s more I can do here.
Saving £50 pm

So I’m pleased with my start and feeling really motivated. Long may it continue!

ILAWG

I know what you mean about spending too much on take-aways and groceries. It's so easy to get home from work and think oh I can't be bothered to cook tonight even though you've shopped for it. I've also been taking lunches to work - means I get more time to go for a walk and clear my head instead of going off searching for a meal deal :rotfl:
Motivation....keep the end result in sight... you can do it

Flossymuldoo

Thanks for popping in ILAWG!

I’m trying to keep motivated. It’s 11 data til payday. I have enough in my bills to pay all the DDs with maybe about £80 extra and £112 in my account for food/petrol etc. Downside is there is £55 that will come out for OHs cigarettes (o am going to broach the subject about him stopping again today!), 1 groceries shop left to do and OH will need some petrol. If I can get to the end of the month without driving anything on CC i will be thrilled!!

ILAWG

Hope you're doing okay Flossy.
The countdown to payday, sometimes feels like it's never going to get here. How did it go with OH, did you ask him about giving up? It'll be a tricky one.
My payday has arrived and it's all been sectioned out. For the first time ever I have money in a Christmas pot.

Flossymuldoo

I’m doing ok Thanks. Except...I have an emergency trip to the dentist this morning as I have toothache :(
Bang goes my dream that I might finish the month with £100 left over. That was going to buy remaining Christmas pressies so I didn’t have any to buy in December. I do have dental insurance from work though so will be able to claim some of it back.

How are you doing? Still motivated?

Flossymuldoo

Oh and no, didn’t have the conversation with OH. But I will. 2 close relatives died within 6 weeks of smoking related illnesses this year. My 10yo keeps asking me when Daddy is going to stop, so I really need to tell him that

Flossymuldoo

£176 for the emergency dentist today. :eek: My tooth’s nor hurting anymore but I’m gutted because it had to go on CC and feeling thoroughly miserable about it