YNAB...ing my way to freedom!

SuperFrank88

Hi,

So I have decided to start a diary so that I can stay accountable and log down my journey to becoming Debt free by 33! I am in a bit of a pickle at the moment financially to the tune of £26K worth of debt and I have got nobody to blame but myself! Constantly buying things whenever I wanted, Spending money that I didn't have on others not because I was showing off, but because it made me feel good. If only they had known it was putting me deeper & deeper into this hole! But hey ho, today is the day I take action. No more blame, no more self pity, just a great big size 10 boot up the !!!.

I started the process a couple of weeks ago and was ready to set up a DMP with one of the amazing debt charities (Wish I'd pulled my head out of the sand years ago by seeking help & advice!). I have got a pretty impulsive personality (No sh*t you say:rotfl:) and I went in all guns blazing, getting my SOA written up (BIG shock:eek:), contacting all of my creditors, cancelling direct debits and finally cutting up all my cards. All within a space of a day!
Then I came onto this amazing site and started to read the threads by people in a similar situation to myself and there seemed to be a common topic popping up....Emergency Fund!
Mine is was ZERO plus I had now cut up all of my credit cards so not only did I not have a Emergency Fund, I now have no access to any available credit, nor could I phone up and ask for a new card because I had already phoned up to tell them I was entering a DMP so they have frozen my accounts for 30 days.

So I have decided now that I am going to use the first quarter of 2020 to save as much of my income as I can. I know in this time that my accounts will probably default which I am hoping for, then I will be looking to start my DMP properly in May/June ready to attack that TD Balance and hopefully get it done and dusted by the time I turn 33 in 2023 :j

I hope to use this thread to get me through the inevitable tough times that lie ahead but I know that there is some fantastic people on here willing to support & guide me whenever I need it.

Thanks for reading and I wish you & your families a very Happy New Year :beer:

SuperFrank88

First day back at work for me today after a well needed break. Today is going to be a NSD as I’ve brought all my food to work with me. I’m normally pretty hot at doing that anyway but towards the end of last year I started to be lazy and go out to get lunch which was obviously much more expensive. I’ve put on a few unwanted pounds too at Christmas so by making my own food I’ll hopefully be able to drop those kind of pounds while saving the other type!

Checked my bank account this morning and it’s nice that I’m not in my overdraft for a change! Had a statement telling me I’d payed £150 in overdraft charges last year!!!

All my accounts are frozen at the moment so not expecting any nasty letters until at least the end of the month!

I’ve also cancelled my lottery direct debit. It was costing me between £16-20pm, but I always stuck with it because of the old saying “you’ve got to be in it to win it”, so instead I’ve opened up a NS&I account that I will put £25 into every month and still get that fix of maybe having a slight chance of winning something, but this time I’ll still have the money that I’m putting into it instead of giving it to the lotto!

SuperFrank88

Hi all,

Well that was a nice short week another no spend day for me today. Took a sandwich to work with me instead of buying one on my way to work like I would normally do on a Friday.

So now the working week is done, this is where the real challenge starts for me financially...the weekend!

I have my DD every Saturday which normally involves going out to do things that inevitably costs money. She’s 4 years old and doesn’t stop! Does anyone have any ideas of free things I could do with her? If the weather is fine we normally go to the park but because this time of year is wet & miserable we tend to end up in a indoor play area, then she gets hungry and before I know it there’s not much change from £20. Add this up over the month and that’s nearly £80!! This needs to stop.

Downloaded the Swagbucks app after seeing the £15 free voucher in Martin’s email yesterday. Trying my best to be more mindful and earn any extra income possible. Do any of you have any other ways of earning some more income without a second job?

Thank you in advance and have a great weekend

Achar90

Roll on sunmer!:j My hubby and I are having a no spend January, we have a four year old and a two year old so weekends in winter are usually spent at soft play or swimming - in other words spending money!

Do you have any free museums near you? We are going to go on a walk this morning 4yr old not impressed and has already asked to go to soft play:rotfl:

SuperFrank88

Morning

Yes we have great museums but she’s been there a few times now on school trips so it doesn’t really excite her anymore. I’ve had a quick look and there is a free craft morning in our local library :money plus she can make as much mess as she wants because it won’t be at my house :rotfl:

We’ve also planned a picnic later with a walk around the lake so today is hopefully going to be a NSD

Got 2 bags to take to Cash 4 Clothes too so I could end up making money today rather than spending! Can’t remember the last time that happened on a Saturday :T

Have a great day

Poppy1984

Hi SuperFrank
I just wanted to drop in because I too am hoping to be debt free by 2023 (hoping sooner tbh) but sadly I'll be older than you at that point I'll be 38 possibly 39 still originally I thought I was going to be 40 so that's something i guess.

I did just notice you said about the lottery, this was something I struggled to give up too, I was in the work syndicate and kept thinking but what if it won big and I'm not in it! Eventually I had to be tough with myself and drop out. I've not been in it for nearly 2 years now and they've not won anything more than a few quid and I've saved over £200 in that time. That £200 is far better spent paying off my debt than buying into a dream that's probably unlikely to happen.

If you can afford to put that money aside then that's great you still get that buzz of you might win something whilst not losing the money but I'd seriously consider if you could let go of that idea of winning something and just pour that money into the emergency fund or debt repayments instead.

Have you done a full SOA I find those so useful and there are so many knowledgeable people posting on these forums that can help you fine tune yours and really make your money work hard for you.

Additional money making ideas.... I use shoppix app to scan receipts and cash out a little extra money and prolific academy to complete surveys (I've earned around £200 on prolific academy and £80 on shoppix over a year and half ish) I've just downloaded zipzero too another receipt scanning app but new to that one so now sure about it yet.

Good luck with your journey sounds like you've made a fantastic start!

SuperFrank88

Poppy1984 wrote: »

Hi SuperFrank
I just wanted to drop in because I too am hoping to be debt free by 2023 (hoping sooner tbh) but sadly I'll be older than you at that point I'll be 38 possibly 39 still originally I thought I was going to be 40 so that's something i guess.

I did just notice you said about the lottery, this was something I struggled to give up too, I was in the work syndicate and kept thinking but what if it won big and I'm not in it! Eventually I had to be tough with myself and drop out. I've not been in it for nearly 2 years now and they've not won anything more than a few quid and I've saved over £200 in that time. That £200 is far better spent paying off my debt than buying into a dream that's probably unlikely to happen.

If you can afford to put that money aside then that's great you still get that buzz of you might win something whilst not losing the money but I'd seriously consider if you could let go of that idea of winning something and just pour that money into the emergency fund or debt repayments instead.

Have you done a full SOA I find those so useful and there are so many knowledgeable people posting on these forums that can help you fine tune yours and really make your money work hard for you.

Additional money making ideas.... I use shoppix app to scan receipts and cash out a little extra money and prolific academy to complete surveys (I've earned around £200 on prolific academy and £80 on shoppix over a year and half ish) I've just downloaded zipzero too another receipt scanning app but new to that one so now sure about it yet.

Good luck with your journey sounds like you've made a fantastic start!

Hi Poppy,

Thank you for post, could I be nosy? I noticed in your signature that you have knocked a year off your debt free date, how have you managed to do that? Is it from doing a long forecast budget and knowing roughly where you will be at that time?

Yes I agree with you regarding the lotto and trying to get rid of that mindset of chasing the big win, I hadn't actually though of that. Well done for quitting the syndicate I don’t know if I’d have been able to leave one if I was in one because I’m also guilt of giving into peer pressure. Seeing as I was only giving up my personal lucky dips I haven’t found it to be difficult.

Yes I’ve done a SOA with Stepchange which is why I was going to proceed with the DMP, but now I’ve decided to build up an emergency fund before starting the DMP which will probably mean my accounts will default by then but at least I will know that I will have a nice pot behind me. I would love to hear your opinion on my method of thinking, do you think I am doing the right thing?

Poppy1984

Hiya, you're not being nosey. Ask away, the way I have knocked a year off my debt free date was because I originally took out a huge consolidation loan in Feb 2018 (not recommended) at a high interest rate because that's all I could get at the time.

I worked really hard paying and closing down other debts that I still had as well as the loan and paid my loan down with my usual monthly payments. Whilst sticking to a really strict budget. I can honestly say the most important thing in debt busting is the budget! I completely changed the way I looked at money.

I then tried to take a Tesco loan July 2019 out at a higher monthly payment than what I was paying but a lower interest rate, which I was going to use to pay off and close my halifax loan, but they rejected me.

So I rang halifax up and asked them if they could offer me a better rate over less time, my interest rate was 8.09% at the time and the contractual payment was £414.60 and I still had 60 months remaining. The new loan they offered me is 3.9% over 48 months but with a higher monthly payment of £456 a month for 48 months which enabled me to instantly shave a year off. I'm planning on over paying as much as I can to hopefully shave more time off.

Hope that makes sense!

I think you're on the right track for sure, the reason i ask about an SOA is it's a good idea to post one on these boards and ask for the advise of the regular posters, they are very good at spotting ways you could save even more money. I understand you have completed one for step change but you realistically aren't going to be following that budget right now whilst you build up your EF. So it would be a good idea to complete another SOA that accurately represents every penny and where it will be going. The lovely people on this forum will be able to have a look at it and help you save money that will enable you to build your EF up as quick as possible.

Have you heard of Dave Ramsey? He's the one who completely turned the way I thought about money and budgeting completely around. He has a podcast and YouTube videos. He's American and can be a bit loud and preachy but what he says makes so much sense and makes you realise that your own habbits are what's holding you back from being debt free. I honestly can't stress a workable accurate budget enough.

Good luck!

SuperFrank88

Poppy1984 wrote: »

Hiya, you're not being nosey. Ask away, the way I have knocked a year off my debt free date was because I originally took out a huge consolidation loan in Feb 2018 (not recommended) at a high interest rate because that's all I could get at the time.

I worked really hard paying and closing down other debts that I still had as well as the loan and paid my loan down with my usual monthly payments. Whilst sticking to a really strict budget. I can honestly say the most important thing in debt busting is the budget! I completely changed the way I looked at money.

I then tried to take a Tesco loan July 2019 out at a higher monthly payment than what I was paying but a lower interest rate, which I was going to use to pay off and close my halifax loan, but they rejected me.

So I rang halifax up and asked them if they could offer me a better rate over less time, my interest rate was 8.09% at the time and the contractual payment was £414.60 and I still had 60 months remaining. The new loan they offered me is 3.9% over 48 months but with a higher monthly payment of £456 a month for 48 months which enabled me to instantly shave a year off. I'm planning on over paying as much as I can to hopefully shave more time off.

Hope that makes sense!

I think you're on the right track for sure, the reason i ask about an SOA is it's a good idea to post one on these boards and ask for the advise of the regular posters, they are very good at spotting ways you could save even more money. I understand you have completed one for step change but you realistically aren't going to be following that budget right now whilst you build up your EF. So it would be a good idea to complete another SOA that accurately represents every penny and where it will be going. The lovely people on this forum will be able to have a look at it and help you save money that will enable you to build your EF up as quick as possible.

Have you heard of Dave Ramsey? He's the one who completely turned the way I thought about money and budgeting completely around. He has a podcast and YouTube videos. He's American and can be a bit loud and preachy but what he says makes so much sense and makes you realise that your own habbits are what's holding you back from being debt free. I honestly can't stress a workable accurate budget enough.

Good luck!

Thank you so much for the detailed post, really appreciate all the guidance.

Yes you’re right about the SOA, I am not sticking to it now. First payday since I’ve had my LBM is on 20th. Got a couple of DD’s going out next week but I will end up in the black and not in my overdraft for the first time in a good couple of years. I will fill out the SOA and post it on here so I can hopefully get some tips & tricks on how to save as much into my EF.

Yes I have recently listened to Dave Ramsey’s “The total money makeover” and it has really helped me change my mindset. Now it’s about putting it into practice which will obviously take time.

The hardest part of this whole little hiccup for me is that I am going it alone. I have not told my partner or anyone else. I know I should be honest but I got myself in this mess and I want to get myself out of it. If it was going to be hovering over me for the next decade then maybe I would speak up, but I plan to get this horrible mess out of my life as soon as I can.

Thanks again :j

SuperFrank88

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2054
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2054

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 267.7
Rent.................................... 275
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 18.54
TV Licence.............................. 0
Satellite/Cable TV...................... 38
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 13.56
Car Insurance........................... 36.17
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 12
Entertainment........................... 120
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1210.97


Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 5000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 4175.5...(267.7)....0
Total secured & HP debts...... 4175.5....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total debt.....................21861.5...0.........0
Total unsecured debts..........21861.5...0.........-


Monthly Budget Summary
Total monthly income.................... 2,054
Expenses (including HP & secured debts). 1,210.97
Available for debt repayments........... 843.03
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 843.03

Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -4,175.5
Total Unsecured debt.................... -21,861.5
Net Assets.............................. -21,037

Created using the SOA calculator at https://www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.


So, my half of the bills are all included in the £275. I pay for the Sky but this is ending in Feb and I plan to cancel it completely because we only tend to watch free view channels anyway and have a fire stick for catch up. Groceries are my half, we already only shop at Lidl and I take my own lunches to work.
We are not planning a holiday this year which is why it is blank.

If you’ve read from the start then you know that my goal for the next 4 months is to build up as big a EF as possible. I will then enter into a DMP in May/June and start paying off the £21k of unsecured debt which will hopefully have defaulted by then.

So that’s my plan, based on what I’ve provided.....PLEASE HELP ME with any suggestions:)

Thank you

mark55man

Hey there! Good luck with your challenge. I am another in the 3-4 year time frame, although for me that is Mortgage Free as well, but the budget and discipline needed feel the same.

I wanted to say that I wish I had gone as hard at it as you are, so although it will be very bumpy you will be sorted much quicker because you are not shilly shallying. The most important things I would say I have learned from my too many years of on off debt-busting are to reduce the amount you spend on your kids while they are young - you will need it more when older. secondly it is the small things you do a lot that make the most difference to your budget so be really strict with yourself and thirdly when you know the full shape of it open up to your partner as you will have two pressures that you could do without - one the secret, and two why you never want to do the things you used to.