Clearing my debts 1% at a time

Rud0lf

Slowly but surely everything is ticking along but with the school holidays approaching I've decided to delay my debt free date by an extra couple of months and have some fun with the boys as well as finishing a few household jobs. I've booked a few sets of tickets for football matches as well as a caravan break. Annoying to delay the date but the whole point of being debt free is to have more disposable income as well as saving for the future. It's been a long slog and I've paid off over £30000 so need a little breather.

At the moment it feels like I'm working really hard without feeling the benefit of it but this will change within the next academic year and any pay rises etc will be enjoyed instead of swallowed up by bills and debt repayments.

As it stands I'll still be debt free by February 2025 but will be finishing off some work on the house and having family fun.

I'll update figures later today but have replaced the wardrobes in youngest room and will finish this off. Still need to sort skirting boards and tiles for the kitchen and then the hall project needs doing this year. 

My face is feeling much better, still some nerve damage issues and need time for scarring to fade. 

Cc2 will still be cleared this month and I'm chipping away at very as that is the next smallest to finish. Then I'll keep chipping away sending money to mum.

Have made a start on the new school uniforms but need to sort pe kits shoes and trainers.

Lonelygambler

Hey - I'm glad to see you have cleared your student loan. It feels good! 

Rud0lf

Mini money shuffle completed this morning, back from holiday on Friday so will sort out the rest then. 

150 to very,
700 to mum, 
244.24 to cc2  which means when the direct debit comes out on the 2nd that will be paid off leaving me to concentrate on paying back bank of mum and dad and very.

Spending less than I thought on holiday which means I'll have some euros to pay towards my next trip.

Rud0lf

5.76 to cc2 this morning which means cc2 is now clear. All interest in my chase account has been sent to mum they I added £6 and a couple of pence to make a round amount bringing bank of mum to 3660 and total debt to 3960 breaking the £4000 barrier. 

Begining to feel a complete mindset switch, have over €250 left from spending money so will use that towards paying off Octobers trip instead of wasting it at duty free.

Sarahwithlove

You've done amazing well done, the end is in sight and then you can start to get some savings behind you. 

Rud0lf

Thanks @Sarahwithlove now that I'm nearing the end I've started to plan my saving out. When I spoke to the financial advisor last year through my pension scheme I focused mainly on when I can retire but also on what amount of savings I should aim to have in what types of account. 

Today I plotted out how my savings will look once my debts are all paid.

It's a four part plan, part 1 top up the kids savings accounts, these have had minimal contributions for the last 5 years and need boosting ahead of a need for driving lessons/ college funds etc. this should be were I want it by the end of Dec 25. 

Part 2 short term is 3 months x essential outgoings. I'm aiming for £5000 I was told that should be in fairly easy access. This should be done by end of June 26. 

Part 3 medium term savings, I'm aiming for an additional £10000. This should be in a fixed term ISA/ bonds. Something accessible but not too easily, this should be fully funded by end of August 2027

Part 4 long term anything above the first 2 parts. This should be invested, maybe a stocks and shares ISA or something. I'm hoping to have a reasonable amount by the end of 2028.

I think this is going to be a really important focus for me to not bounce back into debt by taking my eye of the ball too soon. Hopefully once I've got there I'll be living well within by own means without ever wanting credit again. 

Another thing I've just started to look at is AVC's for my pension as I really want to retire at 58 and enjoy a simple life and they should help me to achieve this.

It might seem odd topping up the kids savings first but that should protect me from dipping in to other savings pots when they need something. I don't know if their high school do any expensive school trips etc and don't want anything to derail me. Having a plan to aim for is important with ADHD as without it I'm just too impulsive.

Sarahwithlove

That sounds like a very good plan of action. 

Aimingforthegoodlife

Love the plans! Massive congrats on CC2!

Rud0lf

Not much to report but the month is plodding along nicely. May be a spendy week this week as I'm away on my own with the kids. The forecast isn't great but I'm hoping for some dry sells to get to the beach etc as it ends up spendy if the weather is bad then whole time. We're in a caravan so at least we'll be dry either way. Have told the boys to pack books and drawing stuff to try to occupy them in wet spells. 

Have budgeted £150 to get us through the 4 days including return petrol hopefully we can stay close to that. Anything over this will reduce what I pay to mum and be replaced when I get my pay rise which will likely be the end of November. 

I got a voucher for my birthday which I've used for some pretty organiser inserts and some money which I will keep for spending money when we visit London.

Some Christmas presents have been bought using money from the Christmas pot and car maintenance has been needed which emptied the car pot. I am not yet at the stage of paying for my insurance in full in November but hopefully will be able to from next year.

11 days until payday

Sarahwithlove

Hope you have a lovely time