Finding the way through a £100k hole

missymoo81

I completely agree. I was spending money left right and centre on things I just wanted on a whim and now I’m accounting for everything! A reset is good every so often!

Isitdoable

Hi to everyone, and my goodness it has been a long time since I have posted here, but I'm trying to continue being accountable so I'm back

The last six weeks have been an absolute whirlwind of work basically.  Starting up again post-pandemic has quite frankly been insane, hence my lack of posting.  I have been doing a huge amount of work on my mindset surrounding money, and on getting into good habits with my spending and recording.  I've read the book 'Profit First' which for anyone self employed - is total genius and has changed the way I look at my business.  I would highly recommend it.   Anyway....the very short version of the last six weeks is that we have made over £60k profit since we started up again (after paying ourselves).  Have literally gone from feeling destitute, to feeling slightly less so!  This will obviously make a huge dent in the debts, but I am cautiously keeping money in the account ready for the next Covid related disaster!  I've paid off part of the HMRC bits (some are in dispute and nothing is happening fast regarding this any time soon), and I have got into some great habits in terms of actually paying ourselves a pre-agreed amount, and having set days to pay suppliers rather than just being reactive.  The difference it has made to my mental health to deal with things in such a systematic way has been immense.  Going through the mindset stuff with my coach I realised (I think I knew this but it took someone else to tell me), that I was almost actively sabotaging my finances.  For many reasons that I will not go in to right now, but quite deep seated.  Things like, not paying bills on time so I ended up being charged, not properly sourcing suppliers to get the best deal, etc etc etc.  Anyhow it has been an eye opener, and quite life changing in fact.

As part of my mindset work, I have set myself a five year plan which revolves around debt repayment and buying a house.  Stage one of that plan is to reduce credit cards by an absolute minimum of £1300 per month for the first six months (whenever I am able I will pay extra off, but that is my minimum).  I have just done the monthly 'pay off' of all cards and we have stuck to target and here are my current totals:
Amex - 5322
Aqua - 3145

B'Card - 3798
Nationwide - 3513
OH B'Card - 349
OH Virgin - 3978
OH Lloyds - 614
TOTAL - 20729

That means that since I started this in February we have paid off just over £6700 from these debts.  We are really close to going under £20000 now, so I would like it if I can have a sort out and maybe sell some stuff and put the money onto getting the cards under 20k.

I also in the last month have set up our emergency fund savings account, plus savings accounts for the children and standing orders are set up for those on the first of every month, as I really really need to get into the habit of saving.  I'm not putting a lot in there right now as obviously I want to focus on clearing the debts, but I do think it is a habit I really need to start, and I want an emergency fund, as I never ever want to feel like I did when that pandemic hit again.

Chrystal

What a fantastically positive  post, it's really lifted my spirits.   
Lovely to hear that things are going well and that you have managed to find a format that works for you.  It's amazing what a change of attitude can achieve isn't it, and as you say, things that we already know really, but the 'light bulb' switches on when someone else points it out to us. (I can totally relate to self sabotage!)
Cheering you on from the side lines. XX

Isitdoable

Chrystal said:

What a fantastically positive  post, it's really lifted my spirits.   
Lovely to hear that things are going well and that you have managed to find a format that works for you.  It's amazing what a change of attitude can achieve isn't it, and as you say, things that we already know really, but the 'light bulb' switches on when someone else points it out to us. (I can totally relate to self sabotage!)
Cheering you on from the side lines. XX

Thank you so much x

ohdearhowdidthathappen

Amazing, what a turn around!!  I like the sound of that book, not relevant for me as not SE, but sounds very smart and logical.