Project 2025

MidsHollie

HaveIt wrote: »

I've wondered about the emergency fund. Would it better to have said fund or more paid off the debt?

Dave Ramsey recommends that the first step in paying off debt is to save up an emergency fund of $1000. He also suggests that you cut up all cards, and never consider getting debt again. Once you have this started EF saved, you then focus 100% on paying debt.

As I wanted to get my debt pay off started, I didn't save the whole £1000 first, so instead I'm paying £100 a month in to my EF. I've already used some of it to get a windscreen chip repaired, guilt and stress free as the money was waiting there, exactly for that purpose. I will probably stop my starter EF at about 5-600, as in my life at the moment, that is probably the highest cost of an emergency that I may face.

If I were you, I would focus on cutting expenses as much as possible. You have more than 2.5 times my salary income, but per month you aren't paying a significant amount more from your debt each month (I paid £1144 last month). It may sound harsh, but you and your ex may have to consider dropping your standard of living to facilitate paying this off quicker.

Good luck. I really do hope that you stay motivated, it will be a long journey!

FootyFanDan

Hi,

just wanted to pop by and wish you luck on your journey. I also really commend you for the way you are supporting your ex and child

You have a really good income to be able to work and knock this debt out of the park, sometimes cutting expenses can be tough especially if your new to budgeting(which I was)

Good luck

HaveIt

MidsHollie said:

HaveIt wrote: »

I've wondered about the emergency fund. Would it better to have said fund or more paid off the debt?

Dave Ramsey recommends that the first step in paying off debt is to save up an emergency fund of $1000. He also suggests that you cut up all cards, and never consider getting debt again. Once you have this started EF saved, you then focus 100% on paying debt.

As I wanted to get my debt pay off started, I didn't save the whole £1000 first, so instead I'm paying £100 a month in to my EF. I've already used some of it to get a windscreen chip repaired, guilt and stress free as the money was waiting there, exactly for that purpose. I will probably stop my starter EF at about 5-600, as in my life at the moment, that is probably the highest cost of an emergency that I may face.

If I were you, I would focus on cutting expenses as much as possible. You have more than 2.5 times my salary income, but per month you aren't paying a significant amount more from your debt each month (I paid £1144 last month). It may sound harsh, but you and your ex may have to consider dropping your standard of living to facilitate paying this off quicker.

Good luck. I really do hope that you stay motivated, it will be a long journey!

Yeah, I hear you. But it's tricky because I have to pay for two households with that single salary. I'm cutting my expenses right back, but it's harder to dictate changes to my ex. It's sort of none of my business! I am going to tell her about what I've discovered on the money saving front, to try and help her sort her own finances out.

The emergency fund needs some consideration. Seems silly to rack up interest by saving up £1k rather than paying a balance off, but I do understand the psychology.

HaveIt

This is from yesterday:

 

Right. Diary time.

Been a mostly good week so far. £22.40 back from Delay Repay, £130 back in expenses having trawled my way back through TFL receipts in this financial year, and £150 claimed back on company dental plan. Would never have done either of the last two pre-LBM, and probably not the first either.

£2.35 on a recurring Wikipedia donation that I’d forgotten about – now cancelled.

£1 on a can of compressed air to fix my 30-month-old phone’s charging port. Success!

Just over £9 spent on food so far this week. Took breakfast and lunch in on Monday/Tuesday but bought snacks, and spent £3 on lunch yesterday. Slipped a bit today and spent £4.70 on food, and have drinks tonight, but I’m not beating myself up.

This weekend should be a very low cost one too.

Going to sell one of my two bikes, my ipad, and piece of fitness equipment. Should net at least £1,300. Hopefully that’ll see my out of my overdraft by next payday.

HaveIt

FootyFanDan said:

Hi,

just wanted to pop by and wish you luck on your journey. I also really commend you for the way you are supporting your ex and child

You have a really good income to be able to work and knock this debt out of the park, sometimes cutting expenses can be tough especially if your new to budgeting(which I was)

Good luck

Thanks, Dan. Appreciate it. Good luck to you too.

pheebs

Didn't want to read and run - well done on the LBM and the integrity you have in your dealings with your ex. I'm going to keep reading so stick with it! 

HaveIt

Thanks, pheebs!

HaveIt

Spent too much yesterday. Met up with an old mate and spent about £20 on drinks, and then £4.55 on food on the way back.

Sarahwithlove

Whilst I have the upmost respect for you for supporting your ex and child I don’t agree that you can’t dictate to her about spending. I am beginning to think that maybe you need to agree on a set allowance for her and she uses it towards paying everything. That way if she wants to spend money and not cut back then it has to be from her own budget. If you were still together and tackling this debt then you would have to both look at making cut backs to achieve it. 

pheebs

Don’t beat yourself up too much about the drinks and food. The new budget is a hard thing to stick to to begin with and then it gets to be second nature. You have already had your lbm and a massive shift in your thinking about money and spending