Learning to budget and taking control of my life.

Sarahwithlove

Hello just caught up it's good to see you back and with one less debt. I would try focus on your emergency fund for now rather than the dmp and get that up to about £500 maybe? I think in rented that would be enough. I use ynab rather than yolt can't really advise other than to make sure you have categories for all your yearly one off purchases as they soon add up. Does it allow you to set goals for each category and put a date against it? That's what I do on YNAB and then it tells me how much I need to assign that category each month to reach my goal. Very handy. Have a look and see if theres any u tube videos for it. 

Disney_Princess85

I'll have a look into YNAB, I've heard lots about it but not got round to looking into it. That's definitely my next plan and getting myself set up with pots to be able to pay insurance off in one go each year rather than paying them off monthly.

Disney_Princess85

In preparation for Christmas next year, I've already started putting money aside. I've joined the Save £1 a day challenge for Christmas next year  put the money in one of the spaces in my starling account. That way I can't see it and will be less tempted to spend it!
I've been putting money away each month for presents but I have massively underestimated how much I spend each year. So I'm hoping having this extra challenge alongside the normal amount I budget will really help come this time next year.

I got paid early from work yesterday so I've put the money aside into a separate account and will pay myself the money on the 28th which is my normal pay day. I kind of want to start ,moving it around into, my different pots, but I know there will be more temptation to spend it. So it'll stay where it is until payday. I also got a cheque for £50 from HSBC for a credit card I had years ago, apparently they've had a review of how they dealt with accounts and they treated me badly.  I need to take the money to the bank and then I can transfer it into my emergency fund. 

I've started to think about what I want to achieve money wise next year, so I'll post once I've worked it out. I've also got my DMP review in February as well, I've had a pay rise so my amount will go up a bit which will mean that I can get it paid off a bit quicker.

Disney_Princess85

Added a bit of spare change into my Christmas fund for next year, so now up to £42.36/£365.

It's definitely little bit addictive i want to keep adding to it but realise i can't leave myself too short. 

I need to brave town today as there are a couple of bits I still need to buy, luckily I'm still tier 2 for now. My town does free parking in the town centre on a Sunday, so won't have to pay for my parking while I'm there. I've spent the last couple of days wrapping all of the presents, I did it in a couple of stages so it didn't feel so much of a rush, like it has done in previous years. I'm normally terrible for leaving it to the last minute but made the most of DD being at her dad's this weekend.

Disney_Princess85

So, over the last couple of days I've realised how rubbish I am with money. In one sense I am so much better than I used to be but it still burns a hole in my pocket.

I have different pots for different things and generally am good and transferring money into those pots but as my income has increased I've not really rejigged the budget so end up with an bit of an excess. Some I transfer into saving and then bits in just fritter away. I definitely need to sit down before Monday (when I transfer myself next months pay) and re do my budget so that every bit of my income has a purpose. Otherwise I will just waste it.

I do also have a simply be account that is still open and Vanquis credit card that I got for emergencies yet I seem to use them more often than I should. I definitely need to get out of the habit of using the credit card as I really can't be trusted with it. I still see it as free money and although I have the means to pay it off now, compared to when I had issues hence ending up in a DMP. Its still too much of a temptation.

That will be this evenings job I think, once DD  has gone to bed. Then I can go into the new year which a better plan and it will also put me in good stead for my DMP review in February.

Baileys_Babe

It is good that you have realised you haven't been keeping such a tight hold of the reins and are reviewing your budget to keep the control you need.

Where do you keep your credit card? Could you put it somewhere less accessible?

Disney_Princess85

Baileys_Babe said:

It is good that you have realised you haven't been keeping such a tight hold of the reins and are reviewing your budget to keep the control you need.

Where do you keep your credit card? Could you put it somewhere less accessible?

It's currently in my purse, I realise I need it to be at home so I can't rely on it when I am in a shop. It's not attached to any of my online accounts so I would physically have to go and getbit to be able to spend online.

juedrops64

Hi all , I am new to the group. I need some advise please. I have recently left my husband , and am staying with my mum at present. I have £12000 debts . What is the best way to deal with this / Appreciate any help. Only have assest of £2000 car , paid for.

enthusiasticsaver

Well done OP on getting rid of the FD overdraft.  I don't think you are supposed  to take out new debt when you are on a DMP so you really should not be using catalogues or credit and Vanquis is one of the most expensive credit cards out there so maybe take it out of your purse or you will end up back in a mess again which would be a shame as you seem to be making good progress.  

@juedrops64 I suggest you start a new thread rather than post on someone elses and then you will get more replies. Just go to the first page of the DFW forum. 

Disney_Princess85

So I spent last night re-doing my budget spreadsheet for next month. I've realised I've got more money than I thought coming in each month which is nice but has made me realise how much I was wasting!

I've also taken the credit card out of my purse and I've paid off about £150 off of the card so far. I've only got a £500 limit on it and once the pending payments have gone on there will be about £70 left to pay off the card which I will get sorted by the end of January. My Simply be account has £39.49 left on it which I'll also clear by the end of January. I've got the money in my emergency fund to clear it all now but will probably just wait a little bit further until the month to make sure I'm OK money wise. 

I'm also due my bonus from the help to save account mid January so will likely use the cash from that the clear the last bit of  current debt.
I've got £1200 that I've paid into it over the last 2 years so I'll get the full £600 bonus which will be nice. The rest will go to filling my emergency fund and then I'll probably put the rest in my LISA. I know I could put it towards the DMP but I'm already over paying that and its 0% interest and as long as I have it cleared by the time the defaults come off I'll be happy. It'll also put me in a better position financially if I've got some savings, incase anything crops up.