Mission: freedom!

in Debt Free Diaries
125 replies 6.8K views
Hi all
I've been a long time lurker here but having decided that I really do need to make some big changes in my spending habits I need a diary to help me log them/stick to them!

Abit about me- I'm a full time working mum with two kids. My DH also works full time. We own (albeit with a big mortgage) a nice house (in truth we probably overstretched ourselves with the house and the mortgage payments are a bit of a stone around my neck however my DH sees the house as a bit of a status symbol that we've worked hard for and doesnt want to take a step backwards in terms of house).

On paper we have a fairly good income between us and should be doing fine money wise, however each month we finish on zero :(.

I hate my job at the mo (it's very stressful) and would love to change careers however I'm at the top of my pay band and it pays quite well. I've looked and with my qualifications doing anything else would mean a big drop in wages. So I feel trapped.

I'm looking to start to save and pay off debts each month to make it easier for me to quit my job if I still hate it in say 5 years time.

I shall get out my paperwork and little book of outgoings and incoming later today so I can start to log where I am going wrong...
January 2020- starting point! Update jan 2021
Loan 1: £10798 £5637
Loan 2 (DH)  £4586 £3280
Credit card 1: £2496 £1755
Credit card 2 (DH): approx £1000 £600
Mortgage: £234,235 £227,746
Total debt: £252,125  £239,018
Savings approx £2k. Approx £9k




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Replies

  • PonyloverPonylover Forumite
    85 Posts
    10 Posts First Anniversary Name Dropper
    Ok so we are a 4 person (2 adult, teenager and child) family. We have to run two cars due to living in the sticks and both working.
    Also between the kids and I we have two ponies. These ponies were both freebies and are kept the cheapest way possible- renting a small field off a local farmer, no thrills. But of course that still costs money (just worked it out- between them approx £210 a month with everything averaged out).
    DH and I share a bank account so all incoming, outgoings and debts are shared.

    I've done a SOE...on paper we should be left with over a grand a month (!) Yet we normally finish close to zero or on zero.

    I believe alot of our problem is frittering... a little treat here, a quick run to the shop to stock up there. I guess it all adds up.
    I do love a good rummage at a charity shop or car boot and convince myself it's a good buy so fine to purchase.

    At present debts stand as follows:
    Loan 1 (tescos at 3%) - 10,798 (415 per month)
    Loan 2 (car finance at 5.2%) - 4586 (120 per month)
    Credit card (HSBC 0% interest) - 2496 (65 per month)
    Credit card 2 (virgin 0% interest) - 800 (25 per month).

    So total unsecured debt is 17880

    Mortgage outstanding balance: 234,235 (932 per month) .

    Therefore total combined debt today is 252,125

    Savings approx 2k.

    Having gone through my bank statement I think number one plan of action has got to be to increase my no spend days. No more buying tat (no matter how cheap or appealing it is!) And asking myself if I really need anything before purchasing it.

    Right, New Year New start!
    January 2020- starting point! Update jan 2021
    Loan 1: £10798 £5637
    Loan 2 (DH)  £4586 £3280
    Credit card 1: £2496 £1755
    Credit card 2 (DH): approx £1000 £600
    Mortgage: £234,235 £227,746
    Total debt: £252,125  £239,018
    Savings approx £2k. Approx £9k




  • PonyloverPonylover Forumite
    85 Posts
    10 Posts First Anniversary Name Dropper
    You know, I think this diary has helped me a bit already.

    My job Carrys alot of responsibility and is high pressured. I was diagnosed with anxiety last year (entirely job related). I'm always panicking that I will be 'found out' as not good enough or make a mistake and get fired. Rationally I know that that's just my anxiety talking- I've been doing the job for nearly 11 years without incident.

    But at least seeing the numbers written down I know, in theory, that even if worst came to worst I could cut back enough to still be ok.
    Now just to get that down into practical terms :j
    January 2020- starting point! Update jan 2021
    Loan 1: £10798 £5637
    Loan 2 (DH)  £4586 £3280
    Credit card 1: £2496 £1755
    Credit card 2 (DH): approx £1000 £600
    Mortgage: £234,235 £227,746
    Total debt: £252,125  £239,018
    Savings approx £2k. Approx £9k




  • browneyed_girlbrowneyed_girl Forumite
    244 Posts
    Third Anniversary 100 Posts Name Dropper
    ✭✭
    Hi and good luck with your goals! My story is very similar to yours in terms of having a significant excess at the end of the month in theory, but it never working out like that! Best advice is to note down every single spend in order to find out where it’s going. I found DH had a habit of “using up” cash in his wallet, so I made him leave the house with either an empty wallet or only what he needed to cover planned spends. He’s much better trained these days! :D
    Beware of little expenses. A small leak will sink a great ship.
    Debt at highest = £62,842.59 (Dec 2018) - now £44,611.39 (Oct 2021)
    Emergency fund £268.63 / £1000
    NSD October Challenge 8/12
    NSD target Sept-Dec 2021 17/50
  • PonyloverPonylover Forumite
    85 Posts
    10 Posts First Anniversary Name Dropper
    Thank you brown eyed girl. I can probably account t for a part of that large sum every month... theres always something that needs fixing or a school trip that needs paying for or something... but certainly not the whole lot :eek::eek:. Good idea, I shall give noting down a try
    January 2020- starting point! Update jan 2021
    Loan 1: £10798 £5637
    Loan 2 (DH)  £4586 £3280
    Credit card 1: £2496 £1755
    Credit card 2 (DH): approx £1000 £600
    Mortgage: £234,235 £227,746
    Total debt: £252,125  £239,018
    Savings approx £2k. Approx £9k




  • Rgib89Rgib89 Forumite
    86 Posts
    10 Posts Name Dropper First Anniversary
    Hi just thought I'd drop by and say good luck with the debt free journey.

    Your situation is similar to mine, both me and husband working full time 2 children.

    I will be following along and wish you the best of luck xx
  • edited 27 January 2020 at 5:17PM
    MsmoneyspiderMsmoneyspider Forumite
    143 Posts
    Third Anniversary 100 Posts Photogenic
    edited 27 January 2020 at 5:17PM
    Ponylover wrote: »
    My job Carrys alot of responsibility and is high pressured. I was diagnosed with anxiety last year (entirely job related). I'm always panicking that I will be 'found out' as not good enough or make a mistake and get fired. Rationally I know that that's just my anxiety talking- I've been doing the job for nearly 11 years without incident.
    :j

    I totally relate to this comment. I think that this is my main motivation too, for watching the pennies, when in theory I don't really have to. I want to have the freedom to make work related choices that make my heart sing, rather than miss beats.

    All the best on your journey.
      
  • PurpleFairy26PurpleFairy26 Forumite
    3.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    ✭✭✭✭
    Rather than potentially having £1000 ‘left’ (or not) at the end of the month, you should work out all of your annual bills and put 1/12th in a separate account on payday. Yes the first year is hard as when you get to something that is due in month 3 you haven’t got the full amount but it’s worth it in the end. Track categories on a spreadsheet or in a book. They could include:

    Car tax
    House maintenance
    School trips
    Emergency fund
    Ponies

    Etc...
    That way, after you have moved all these out to a separate account calculate what you need for bills the ‘left’ is then truly yours to spend (or over pay the debt)

    Sorry if you do this already but I wish I’d done it sooner. I’m on about version 4976 of my budget and I started off with just a few pots and added more when I could/ needed them.

    Good luck on your journey.
  • seahorseyseahorsey Forumite
    203 Posts
    ✭✭
    Hi ponylover! I could have written most of your post myself, especially the part of feeling trapped at work. That too is one of my biggest motivations for getting rid of the debt ASAP. I also have two small ponies :D

    Will be cheering you on and popping in for for pony chat!
  • PonyloverPonylover Forumite
    85 Posts
    10 Posts First Anniversary Name Dropper
    Hmmm not a great first full day. Realised our two cats are out of wormer/monthly flea treatment. 3 months supply of both brought but £50 lighter. Ouch! But cant be having any little critters in the house.

    On the plus side DH and I resisted a two for tuesday. Also used our quidco balance to buy a new microwave from argos so in effect it was free- result. Our old faithful that has done us well for years but been on the brink for a long time can now be retired!

    What ponies do you have seahorsey? I'm questioning my sanity at the moment... desperate to feel the sun on my back and see some green grass in the field (instead of squelchy mud and puddles!)
    January 2020- starting point! Update jan 2021
    Loan 1: £10798 £5637
    Loan 2 (DH)  £4586 £3280
    Credit card 1: £2496 £1755
    Credit card 2 (DH): approx £1000 £600
    Mortgage: £234,235 £227,746
    Total debt: £252,125  £239,018
    Savings approx £2k. Approx £9k




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