Leaping from debt free to self employed

CreditCardJunkie · 5 September 2020 at 8:09AM

It's the 5th of the month and my "spends" money is burning a hole in my pocket. I've spent some on meals out and days out with DD and in my head I've thought of 589,761 ways of spending the rest of it. I've also fantasised about spending money on my credit card for small home improvements. I feel like an addict 🙈
Just realised I forgot to update my savings totals...
Vet bill £300/£550
Home improvement £200/£900
I'm struggling with the rainy day fund...I need to know specifically what I'm saving for. Any advice would be appreciated!

CreditCardJunkie · 25 September 2020 at 5:32PM

It's payday 🎉
Debt total down by £336 to £1554!
Vet procedure complete and paid in full! I'm skint but a great feeling to not be paying this off for months afterwards!
Home improvement £400/£900
It's going to be tight to get the remaining paid off by Christmas but here's hoping 💪💪

savingholmes · 27 September 2020 at 1:08AM

Your savings are going well. The EF is to help you not reach for a cc for annual or unexpected bills or in case one of you loses a job.

CreditCardJunkie · 23 October 2020 at 9:28AM

It's payday 🎉
Debt total down by £699 to £855.
Home improvement savings £700/£900
Also managed to scrimp enough money for a much needed Airbnb this weekend 💪 we're taking our own food and plan on doing lots of walks in the fresh air.
Hoping to clear the £855 next month...it's going to be tight but here's hoping 🤞🤞
I've a few small bits in for Christmas but I'm determined not to use credit cards this Christmas so next month's pay will determine gifts. Definitely going to set up a Christmas/gifts pot in Jan.

MidsHollie · 23 October 2020 at 9:37PM

Hey,
ive just found your diary. I saw that a few weeks ago you were struggling with your “rainy day fund”, because you’d like to know what you are saving for. I suggest that you scrap the rainy day fund! The general rule in personal finance circles is that you have an emergency fund of anything between 3 and 12 months of expenses saved up. This is for if you lose your job, or any other true emergencies.You should then have sinking funds, for annual or occasional expenses, eg gifts, home maintenance etc. And some money going towards your pension / retirement plans. Once you’ve got that covered, any left over money is yours. You can then save for actual, planned for things. Holidays, cars, shoes. Whatever you fancy. But always have a plan, otherwise lifestyle creep happens

savingholmes · 24 October 2020 at 12:21AM

Well done on the payments. Personally I think having at least £1K emergency fund is a good plan as it helps you not reach for the CC when things happen.

juicyjackieb · 24 October 2020 at 12:35AM

Just dropping by to offer my support - keep up the great work!

Sarahwithlove · 24 October 2020 at 11:09PM

I have to agree I have a 1k emergency fund and until I have cleared my debt that's where it will be staying. Once that's happened I intend to build it up to 3 months wages.

CreditCardJunkie · 25 October 2020 at 7:33AM

Thanks all! With the 3 months expenses, those in couples are you supposed to have 3 months expenses for both couples?!

CreditCardJunkie · 7 November 2020 at 12:49PM

Lured in by Very with their Black Friday deals already...added a load of stuff to my basket...got to checkout...and left (thankfully). I have a few bits in for Christmas but the rest of my shopping needs to wait until next payday. I have been very tempted to use credit, but I haven't. I think I might close the Very account... The only reason I've kept it is that it's quite handy if any appliances go - we do have a little savings but they're due to be wiped out in the next few weeks with the scheduled home improvement.