Debt Free Forever

MrsFezziwig

Technically we're not in debt - we do use credit cards but pay them off in full each month - but we want to stay that way, having been in debt in the past. I couldn't access my old user name (and wasn't very good at keeping my diary going anyway), so I thought that this was a good excuse for a fresh start. Our finances will change in September when my OH starts a new permanent job. Previously he's been self-employed/worked for agencies but the agencies messed him around and didn't furlough him in lockdown so we've had enough. They'll lose out as he earned them enough in commission (I'm not bitter...). His new job pays less but gives us a regular, stable income and gives him more time for voluntary work and other activities. We'll also save money as, not only will this job save him a lot of travelling, we can share a lift to work, thus saving a lot on fuel and wear and tear on his car. It's also less stressful! 

A couple of years ago we moved house (debt-free but doubled the mortgage), but it's been well worth it. In that time we've not saved as much as I'd like and since lockdown we've eaten into our savings as OH hasn't been paid anything. By the time he gets his first pay in the new job it would have been 6 months without his salary. I'm proud of the fact that we've been able to manage (and feel blessed), but we need to reign it in now and knuckle down. There are things in the house we would like to do and we'd like to book a special holiday next year as it will be our 20th wedding anniversary (this year's holiday was cancelled).  So, it's 12 weeks until we're back to two salaries. 12 weeks to set up a budget, to stick to it and to make plans for the future. I would like to pay the mortgage off early, but this diary is about keeping out of debt in these straightened times so DFW seems more appropriate than MFW - plus, I've found much inspiration on this board.

MrsFezziwig

This is my SoA from 1st October onwards. In the meantime there are some savings I want to make eg cancel unwanted DDs. 

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 2

Monthly Income Details

Monthly income after tax................ 2554.8

Partners monthly income after tax....... 1090 Estimated net salary

Benefits................................ 0

Other income............................ 0

Total monthly income.................... 3644.8

Monthly Expense Details

Mortgage................................ 1049

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 183

Electricity............................. 136.52 Electricity and gas

Gas..................................... 0

Oil..................................... 0

Water rates............................. 23

Telephone (land line)................... 66.86 Includes broadband

Mobile phone............................ 52.16 To be reduced soon

TV Licence.............................. 13.2

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 400 Includes cat food and stuff, toiletries, household, meals out (£300?)

Clothing................................ 50 Probably not this much - certainly not used monthly

Petrol/diesel........................... 80 Estimated 

Road tax................................ 15

Car Insurance........................... 30 Need to check this as we pay annually

Car maintenance (including MOT)......... 50 Too much but need to start saving for when we need to replace a car

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 40 Monthly medication for 2 cats plus building a pot for vets bills

Buildings insurance..................... 34.73 Includes contents

Contents insurance...................... 0

Life assurance ......................... 31.28

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50 Probably too high - remainder will pay for food at Christmas!

Haircuts................................ 10

Entertainment........................... 100 Eating out comes out of grocery. Includes National Trust membership and books 

Holiday................................. 300 Could manage on less but aiming for this!

Emergency fund.......................... 100

Savings................................. 400

Giving.................................. 330

Travel/phone ins & RAC.................. 11.95 Paid with bank account.  

Gas service............................. 42.83 Probably cancel/reduce this

Union subs.............................. 21.46

Total monthly expenses.................. 3640.99

Assets[/b]

Cash.................................... 470.44

House value (Gross)..................... 340000

Shares and bonds........................ 0

Car(s).................................. 1000 Total guess!

Other assets............................ 2000

Total Assets............................ 343470.44

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 179972...(1049).....2.44

Total secured & HP debts...... 179972....-.........-  

Unsecured Debts

Description....................Debt......Monthly...APR

Total unsecured debts..........0.........0.........

Monthly Budget Summary

Total monthly income.................... 3,644.8

Expenses (including HP & secured debts). 3,640.99

Available for debt repayments........... 3.81

Monthly UNsecured debt repayments....... 0

Amount left after debt repayments....... 3.81

Personal Balance Sheet Summary

Total assets (things you own)........... 343,470.44

Total HP & Secured debt................. -179,972

Total Unsecured debt.................... -0

Net Assets.............................. 163,498.44

Created using the SOA calculator at www.LemonFool.co.uk.

MrsFezziwig

Week 1/12
Plan for this week:

1. Set up some more individual savings accounts. 
2. Menu plan and eat out of storecupboard (but will need to top up with some fresh stuff).
3. Reduce DDs -  gas service, mobiles, IT support... 
4. No-cost work in the garden - paint fences, weeding, plant cuttings, tend vegetables.
5. No-cost work in the house - de-clutter garage, housework.  

MrsFezziwig

Yesterday:
NSD which was good. I took advantage of the dry weather and completed some jobs in the garden:

• Painted the front fence with wood protector left by previous owners.
• Chopped down bush and replaced with large pot of geraniums (free pot from friend and geraniums from another friend).
• Moved over-fence pots from back garden to front. 
• Weeded front flower bed and gravel path.

This is the first year I've planted vegetables and I'm amazed how exciting it is! The runner beans now have red flowers, there are three peppers growing on one plant, the potato plants are looking good (hopefully there are some potatoes below the surface), and there are at least 13 tomatoes growing on two plants (the third plant was started late so nothing yet). For some reason one of the tomatoes ripened really quickly. I "made a meal out of it" - sliced it, sprinkled with salt and pepper and served on a pretty plate - wonderful! Hopefully, this is the start of my vegetable journey. 

Frugal gardening:
I managed to acquire quite a few things from friends once I put the word out. As it was the beginning of lockdown, I couldn't go shopping and they couldn't go to the charity shop/tip!

• cuttings
• tubs for potatoes
• bamboo sticks 
• tubs and pots

Other bargains: seed potatoes from the 50p bin in Poundland, bean plants and tomato plants from supermarket (gift from mum), bag of bark chippings reduced to £1 becuase of rip in bag. The only money I've spent was on some compost (though I had tree bags from last year), and a pepper plant. The pepper plant definitely isn't frugal as it cost £3 and I could buy three peppers for 99p! I am enjoying watching it grow, though!

MrsFezziwig

Today definitely wasn't an NSD as we booked a short holiday. Our original overseas holiday was cancelled and we thought that we wouldn't go away at all this year - not sure how relaxing a socially distanced holiday would be. However, we found a good deal for 5 days in the Lake District and, if nothing else, a change of scenery will be good. We'll take lots of books and go for lots of walks. We're waiting for our refund from the original holiday so it's not really a spend as it costs a lot less. It's nice to have something to look forward to again.

We started to declutter the garage but didn't get very far! Every little helps, I suppose...

All food from stores. 

All in all, a good day.