Time to Knuckle Down

in Debt free diaries
27 replies 1.4K views
I had an account on here before the Great Forum Change, but resolutely ignored all reminders to make sure I had access to my email so that I could reset my password.
So, this is a fresh start. I was getting nervous about anonymity anyway.
A little about me. I live in London with my boyfriend and we have just exchanged on our first property, a teeny tiny one bedroom flat. Completion is tomorrow! It's inspired me to get back on here, because the completion statement was a higher amount than expected...leaving me with £70 in my account.
I'm working my final two weeks notice at my job so next month, I will be paid around £1,000. I start my new job at the beginning of April and won't be paid a full month's salary until the end of May (I'll get about £900 at the end of April).
The next two months will be a challenge of furnishing our new home to our liking (not buying temporary tat and then putting it in the landfill) whilst making sure we don't run up massive credit card balances.
I owe just over £30,000 at 0% and I now have a mortgage of £106,000 at just over 2%. 
My challenge is to pay off the £30,000 in the next 5 years and alongside that, save £30,000 for our future forever home. Our joint annual earnings are £70,000 with a good chance of rising to £85,000-£90,000 in the next 2 to 3 years.
Hopefully, this diary will help keep me on the straight and narrow. Wish me luck! 
«13

Replies

  • lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    Right. Some savings goals.

    Short Term
    £150 by 15 March 2020 - holiday fund

    Medium Term
    £7,000 by the end of July 2020 - emergency fund.
    £5,000 by March 2021 - car fund.

    Long Term
    £20,000 by March 2022 - remortgage/property expenses fund.
    £10,000 by March 2023 - marriage fund.

    Looks like we might have a bit of a cashflow issue this month. Very fortunately my family have clubbed together to gift me £2,000 to completely furnish our new place. We already have almost all the furnishings we need, so the £2,000 will be used for other expenses - most likely put in our emergency fund instead. 

    I also have a £500 complaint to make, so hopefully that will come through in the next month or so. 
  • savingholmessavingholmes Forumite
    23.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Good luck on your journey. Hope your moves goes smoothly. You are very fortunate to receive a gift towards furnishing too. How did you get to £30K in debt? Have you taken steps to make sure the over-spending stops?
    Target 1) Prioritise health & social connection 2) Write regularly 42,993/70,000 words Book 2 and 10,787/70,000 Priestess book 3a) Get to £10K EF/Savings Now £4,508 3b) £1.6K Savings for DD Car (Achieved) 4) MFW starting at £201999 Nov 21 with 264 250 payments to go. Now £192,959 5) Mortgage neutral progress via pension £1,887 invested since Nov 21 6) Declutter 7) Invest in fun and frolics - and not just future self! 8) CC Debt free April 22 (now stay that way!!)
  • SarahwithloveSarahwithlove Forumite
    2K Posts
    1,000 Posts Fourth Anniversary Name Dropper
    Forumite
    Have you looked at doing a statement of affairs for you both ready for your new place. It will help you if you know what you are going to be working with in terms of bills for your new place. 
    *RBS credit card - £1930.50* - £0.00
    *Tesco Credit card - £3604.30* - £0.00
    *Finance - £581.91 - £0.00
    *Dad loan - £5300 - £3800
    *M+S Credit Card - £0
    *MBNA Credit Card - £1211.88 - £0
    *Virgin Credit Card - £3075 - £0
    *Total debt - £3800*
    *Sinking/Emergency Fund - £2250/£5000*
    *Mortgage Overpayment - £46.90/£1000*
    Premium Bonds - £100/£1000
    Facing Reality - My Debt Free Diary
  • Applewood1Applewood1 Forumite
    48 Posts
    Fourth Anniversary 10 Posts Name Dropper
    Forumite
    Keep an eye on Gumtree and FB marketplace for furniture. You can get some amazing bargains! Good luck with the savings, you can do it! 
  • edited 5 March 2020 at 8:35AM
    lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    edited 5 March 2020 at 8:35AM
    Good luck on your journey. Hope your moves goes smoothly. You are very fortunate to receive a gift towards furnishing too. How did you get to £30K in debt? Have you taken steps to make sure the over-spending stops?
    The £30k is technically a gift for my deposit, legal fees and stamp duty (~£29k) - but I've said I want to pay it back and am determined I will. It's my parents' life savings, but they aren't in a position to buy, and my property has a lot of potential at a reasonable price, so they felt it was a good idea for me to buy it. The idea is that I will eventually sell it, hopefully for a profit, and use the extra money to help fund their retirement. So the money has gone to a good cause! :) 

  • edited 5 March 2020 at 8:43AM
    lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    edited 5 March 2020 at 8:43AM

    I also have a £500 complaint to make, so hopefully that will come through in the next month or so. 
    Heard back from them already. They accept they were wrong and will either give me the £500 in cash, or in vouchers. Hopefully cash! If not, the vouchers will be saved for birthdays and christmases for the next few years. 

    Yesterday was very expensive - paid £29k to my conveyancer! Today, another £1.5k will go to them.

    I have almost all my furniture already so there is no need for me to buy any more. My plan is to keep that £2k as an emergency fund. I did have another £2k that I'd saved, intending it to be EF. However, the transaction ended up way more expensive than expected, as is always the way, so I'm wiped out! 

  • db2016db2016 Forumite
    341 Posts
    Fifth Anniversary 100 Posts Name Dropper
    Forumite
    take the cash, its more liquid than vouchers, and as flybe today have found out, those that used vouchers to book, well they have lost out!
  • lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    db2016 said:
    take the cash, its more liquid than vouchers, and as flybe today have found out, those that used vouchers to book, well they have lost out!
    I tried, but was told "vouchers or nothing"! I know I could probably get the £500 in cash eventually, but it will take months of complaints and protracted discussion, so I've decided to just take the vouchers. I've asked for supermarket vouchers so I can just use them for my normal food shop :smile:


  • lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    I'm finally a homeowner! Now I have a mortgage that I can pay off!

    First goal is to have a positive net worth. Approx. £5k to pay off to reach it. 

    Accounts looking incredibly squeaky now, everything cost more than expected (as is always the way!). On the bright side, I have no more accommodation payments to make until April! Actually, need to find out how to access my mortgage account and work out when the first payment can be, so I can properly budget.

    Once it's sorted, I'll pop up an SOA. 
  • edited 9 March 2020 at 10:21AM
    lostmyusernamelostmyusername Forumite
    54 Posts
    10 Posts Name Dropper
    Forumite
    edited 9 March 2020 at 10:21AM
    Morning. Busy busy weekend. Moving and unpacking, moving and unpacking. We also acquired a car, which I'm not so sure about. Boyfriend wants it so it's easier to visit family, I think it's too expensive to run. We've agreed to keep it around for a few months at least, and then reassess, but safe to say I'm not happy to have it.

    Got a parking ticket this morning (after having the car for less than 24 hours!) because we accidentally parked in the wrong residents' permit zone. Who on earth would ever think that the council would issue a parking permit for the zone you LIVE rather than a zone a few streets away? So we parked outside our front door, not realising it was the wrong zone, and got a fat fine this morning. I'm angry. Planning to challenge it.

    In a similar vein, got a customs fee for a parcel. Seller marked up the value by 4 x so the customs fee is massive. Have to challenge that, too. 


This discussion has been closed.
Latest MSE News and Guides

Check your Clubcard vouchers

Use our trick to extend them

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals