Starting to budget after years of wishful thinking

LegoHead

thanks, would not have done it without a little nudge from everyone here. Kind of sad the car is going and a little nervous it might not go! The last stage is someone comes and checks it over before giving me the money. I am 100% for selling it, just hope they dont turn around and refuse it at last minute.

Petal88

Gosh just wanted to say I've read this diary start to finish today and I can't believe how much progress you've made Legohead! Amazing work - I can't wait to see your updated numbers once the car money comes through.

Now that you run the possibility of clearing your debt in May already - have you had a thought about what your next goals would be?

LegoHead

Petal88 said:

Gosh just wanted to say I've read this diary start to finish today and I can't believe how much progress you've made Legohead! Amazing work - I can't wait to see your updated numbers once the car money comes through.

Now that you run the possibility of clearing your debt in May already - have you had a thought about what your next goals would be?

Not sure of specifics yet. Probably just build some savings, relax a little more and keep on top of the budgets. May is looking possible, but I am wondering if I can do it quicker... I have some stuff I can sell around the house. Old gadgets I dont use anymore.

EssexHebridean

Wow - that lightbulb really is well and truly on isn't it - well done! Glad also that you're starting to get a kick out of seeing savings build up too - that's a really key moment I think as it turns your previous thinking on its head. 

As for the car - reverse depreciation, whoever knew that was a thing! well done for taking the plunge and selling it! 

LegoHead

EssexHebridean said:

Wow - that lightbulb really is well and truly on isn't it - well done! Glad also that you're starting to get a kick out of seeing savings build up too - that's a really key moment I think as it turns your previous thinking on its head. 

As for the car - reverse depreciation, whoever knew that was a thing! well done for taking the plunge and selling it! 

I think the price of all second hand cars has increased due to the scarcity of electronic components. This has had a knock on effect of making it harder to buy new cars which in turn is increasing the value of the second hand car market. All good for me as I bought my car with a loan in March 2019 a few weeks before I was out of work due to Covid... great timing to commit to a large purchase! 

Have had a look at stuff I can sell and if I can sell the 20 items I have found then I can be debt free in February. 

Petal88

Fantastic progress, whether that's May or Feb! Will selling your car also mean fewer related expenses for it in your budget? An added bonus!

LegoHead

Petal88 said:

Fantastic progress, whether that's May or Feb! Will selling your car also mean fewer related expenses for it in your budget? An added bonus!

Yes it will. My cheaper car I have essentially gets very little spent on it for maintenance as I dont require dealer servicing and do it all myself. Will save me well over £100 per month in insurance, tax, tyres, mot, servicing etc..

EssexHebridean

I assume that as soon as you are debt free you will be starting a "car replacement fund" to save into ready for the point when a newer vehicle is needed? Even if you weren't in a position where you could completely avoid a loan, it might well mean being able to take one for a lower amount, which you would then be able to pay off sooner. 

LegoHead

EssexHebridean said:

I assume that as soon as you are debt free you will be starting a "car replacement fund" to save into ready for the point when a newer vehicle is needed? Even if you weren't in a position where you could completely avoid a loan, it might well mean being able to take one for a lower amount, which you would then be able to pay off sooner. 

I have had a few nice cars and the costs involved in newer cars for me is too much. As I can fix the cars myself I would be happy just to have fixxer uppers and focus on something else rather than buying an expensive car again.

I have also committed to myself that I will never have any form of credit or loan again. I have accepted my lack of control when it comes to credit and it is a slippery slope for me. It is going to be cash and savings from now on. 

enthusiasticsaver

Good luck with selling stuff. February would be amazing.