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2020 - Clearing the debt the start of our journey to FIRE

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Comments

  • Savingtomove
    Savingtomove Posts: 89 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    edited 19 January 2020 at 4:18PM
    FIRE is a great goal to keep you going. Don't forget normal pension contributions as you go - they really add up over time. Do you have a date in mind when you expect to get each of your debts cleared. It can help to list them either in terms of when they are due to be paid, highest apr or by amount. Could your car be paid off quickly for example to make you feel like you are making more progress? Is there anything you can sell to chuck at the debt? Do you have a £1000 emergency fund? It can really make a difference to how well you sleep at night...

    Hi Savingholmes!

    I might sound stupid but if my business goes as planned we are hoping to pay off everything but the personal loan by the end of the year. The first goal in the car loan which is due to end in May anyway. We don't really have an emergency fund. We have about 2500 in premium bonds at the moment but that is to cover my wage and nursery for Feb so anything I make from work this month and next mouth would then become the emergency fund if that makes sense!!

    Are major issue is that we don't budget for the irregular expenses such as birthdays/car replacement/ replacing large household goods. Which is what has caused the issues!

    I really didn't get on with YNAB so thinking of trying to do my own spreadsheet to see what money goes where!
  • So this week has not gone well. I have found that I get really stressed over nothing since having my second child. I thought I was in a much better place but this week I have felt completely overwhelmed. When I look at the week I can see that it has just been my perception rather than the reality!!

    So all of this has led to bad spending £100 at the supermarket in three shops over the weekend ahhhhhhh
    We then took the kids out Saturday to a place we have membership. Took snacks but the weather was freezing so ended up in the cafe and another £12 gone!

    We now have a grand total of £105 to spend this week. About £80 is needed for petrol due to work commitments for both of us!! plus my car is playing up and is in the garage tomorrow - who knows how much that will cost and we have no budget put aside for it!!!

    So here is the plan....

    Week One
    Get spending diary set up
    get list of what food we have in!
    sort DD2 clothes and list expensive ones she has grown out of on ebay
    exercise x 4
    Get work booked in for next week
    Post every day with a to do list and spending....
  • savingholmes
    savingholmes Posts: 29,087 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Those sound like positive steps. You can only start from where you are - and a spending diary is a good first step. I didn't like ynab either - and went back to my excel spreadsheets that work well for me
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £171.8K Equity 36.37%
    2) £2.6K Net savings after CCs 10/10/25
    3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
    (If took bigger lump sum = 60.35K or 47.6%)
    4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
    5) SIPP £5K updated 10/10/25
  • So yesterday went better than expected. The mechanic had a look at the car and said that they couldn't find anything wrong with it. They also changed my break light for free - I must take some chocolates in next time I take it for a service! I had to spend £3.90 on a couple of coffees for a networking meeting but other than that no spends yesterday and child benefit came in so bank balance is looking much better. TT £4.41 so repayment pot is at a massive £27.63......this really is going to take a long time!!

    Today I went to a gym class with the kids and managed to drag DD1 away from the snacks so managed another NSD.

    Work is starting to trickle in. I have to fight the temptation to take on too much to quickly and completely overwhelm myself.

    I have listed a few things on facebook for sale but get a bit fed up with the constant haggling for money off and millions of messages asking if it is still for sale. Does anyone else get this? I don't know if I would be better with ebay but was trying to avoid the fees!

    We have a Joe Wicks dinner tonight - quick chicken satay......

    Anyway here is the to do list for tomorrow:
    Few bits of work to do
    30 min clean in DD2 bedroom
    tackle ironing mountain
    two loads of washing (to add to ironing mountain)

    Weekly
    Get spending diary set up
    get list of what food we have in!
    sort DD2 clothes and list expensive ones she has grown out of on ebay
    exercise x 4 - two down!
    Get work booked in for next week - Should finish tomorrow
    Post every day with a to do list and spending.... ooops missed one already!
  • Good luck with your journey! We are in a similar situation! I’m going to subscribe to your diary.

    I’m intrigued at what FIRE, TOMM, YNAB are?

    Lol
  • Good luck with your journey! We are in a similar situation! I’m going to subscribe to your diary.

    I’m intrigued at what FIRE, TOMM, YNAB are?

    Lol

    Hi Sunflower lady!

    FIRE is financial independence retire early - A bit pie in the sky at the moment but you can dream!
    TOMM is the ~The organised mum method
    YNAB is You need a budget - A lot of people swear by it!!

    STM x
  • Re ironing, which seems to loom large in your life: you will be amazed at how little you actually need to do with a bit of judicious folding and flattening with your hands. No-one will notice, believe me!
    Your time is too precious to spend getting creases out of bits of material!!!
  • Hi Sunflower lady!

    FIRE is financial independence retire early - A bit pie in the sky at the moment but you can dream!
    TOMM is the ~The organised mum method
    YNAB is You need a budget - A lot of people swear by it!!

    STM x

    Thank you!!! Where do I find more about this Organised Mum Method? And is there a Dad one? Lol
  • savingholmes
    savingholmes Posts: 29,087 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I don't iron either. Body heat and a decent drier (with reverse tumble) or hanging clothes to dry on hangers over doors work well
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £171.8K Equity 36.37%
    2) £2.6K Net savings after CCs 10/10/25
    3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
    (If took bigger lump sum = 60.35K or 47.6%)
    4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
    5) SIPP £5K updated 10/10/25
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,133 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I don't iron either. Body heat and a decent drier (with reverse tumble) or hanging clothes to dry on hangers over doors work well

    I don't iron either. We hang shirts/tops/dresses on a rail on hangers straight out of the machine and they dry without needing to be ironed. Bedding is just folded and surely no one irons underwear. Only the odd pair of trousers and even those often don't need it if they are left to dry on a hanger.
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