Finally taking back control after a decade of debt

londoner2019

Developing a pretty awful insomnia condition... have been awake since 5 after getting to sleep around 1. I've been using this time to take another look through my expenses.

What I'd LOVE to do is have banked the annual "here's what I need for the year" ahead of time. Things like building and contents insurance, haircuts, dental, Christmas, birthdays, even clothes and holidays. Obviously easier said than done...

One thing I have noticed too over the last 4 years I've been meticulously tracking stuff, is that I'm good at saving/putting money aside for stuff at the start of the year (Jan-Apr), then it sort of dips for a few months, before having some good months again Oct-Nov. Should I be more strict on myself, or flex the budget so it's more realistic for those months? Spending on things like trips in the summer impacts, so if I can budget ahead for it that should negate some of the issues.

With the surprise backpay due this week covering my spendy September, I'm back in a decent position now for the savings for the rest of the year. I know there's a small amount of house stuff due but that's already covered in a pot. I should be putting aside more than enough for my big trip at the end of November, and I'm on track for 1k for Christmas, which again I hope is more than enough, so come January it's a fresh slate and I'm not playing catch up.

On the day-to-day front, my entertainment/grocery spends are relatively in control. I'm aware I need to be more sensible and say no to stuff. I've had two fairly quiet weeks now and its a struggle mentally. I had a lazy Sunday and I was too busy to leave the house on Monday so I feel a bit cooped up.

londoner2019

A pricy weekend away (a stag) has been and gone... needing to shuffle a few things around pots, but I've picked up some extra consulting work to more than cushion that particular blow.

Have begun taking melatonin for my sleep - early days but I think it's having an impact.

Very up and down at the minute, but the ups involve grabbing life by the scruff of the neck and making things happen for myself. The downs involve a lot of wallowing and immobility.

londoner2019

It's November. Somehow.

Got paid for some extra side hustle work and that's been distributed accordingly. But went a little bit "sod it" on a few gigs over the next few weeks. I don't regret it - it's experiences I'm looking for and I'm happy to do it. I saw an incredibly moving and atmospheric act this week which left me in a fantastic mood. I can't stop listening to them.

The extra money has helped me level out the books.

I've looked back at my streak of putting money away and I'm frankly amazed. I used to set aside a lot and then dip back into those savings when I ran out of money. But now, I've been consistent in putting aside a chuck each month, and realistic with my monthly budget. 

I even enjoy having those quiet weekends/nights in too, which help save some funds.

I've got my Christmas pot full now, and my holiday pot will be full come the end of this month - half way through my trip. I've also realised that my spending money for that trip is in the holiday pot, meaning the extra money for the last week or so of November should go unused. I will see how I get on this month with spends - there's a temptation to be a bit more lax now I know that I've got more to play with...

But the best part is coming back 9/10 days into December, I in theory shouldn't have touched my December day to day spend at all. And with a bigger Christmas pot saved up to cover those bigger festive spends (As well as gifts), I'm really hopeful that come 1 January I'll be in the black already and can start 2025 well.

londoner2019

Feel like I'm juggling two jobs with the side hustle stuff, but it's not that difficult and it's decent money, so need to persevere. My problem is getting too distracted. I've put my phone in a different room to my office for now but I still struggle to focus.

Debating what to do with any extra / bonus cash coming in. Yes, I can top up the pots in advance of when I was intending of doing them, but my other options are: 
- treat myself on a few things
- start up a S&S ISA

I struggle to split something like this across the board - when a lump sum ends up being really small separate lumps, I don't see it as worth it in making a dent into anything. Ridiculous, I know, but because I like seeing round numbers in my pots, anything under 500 doesn't seem significant. Even though I know deep down that it is.

I'm hoping that by leaving a few pots accruing a bit of interest, and not siphoning off that interest elsewhere, I'll be able to shake those ideas.

Anyway - the week is dragging but the weekend should be busy and fun - and I leave for my trip in 2 weeks. Both tomorrow/the weekend and the trip are so soon but work is making them feel like an age away.

londoner2019

Crawling to next Wednesday. Three more working days before the best part of three weeks off. And then what, 2 working weeks before another 10 days off for the Christmas break. I am so DONE with 2024. It's been exhausting.

I'm doing that classic thing where I will be unfathomably busy work-wise right up until the moment I need to leave for the airport, making my life more stressful than it needs to be.

Plus - the neighbours downstairs are doing some sort of DIY project. It's SO LOUD and I cannot concentrate in my home office. They do this a lot - they don't tell us when they'll be banging, drilling or generally being a disturbance. It's so rude.

londoner2019

I've made it to my flight day. I've got three hours of frantic work to complete (so obviously need to stop off on this forum) and then that's it for nearly three weeks.

My contract has been renewed for 2025, I'm in line for a small bonus in January, and I've just sent off an invoice for the extra work I've been doing.

AND I've got my holiday money in a nice pot, all ready to go. I find it weird how prepared I am financially for this trip. Genuinely curious to see how well I have budgeted - whether I'll come in under or over. But that will feed into how I budget for future trips. (All about the data).

Lonelygambler

Hey - What type of gigs do you enjoy going to? 

Enjoy the three weeks off 

londoner2019

Lonelygambler said:

Hey - What type of gigs do you enjoy going to? 

Enjoy the three weeks off 

Thanks for stopping by. I love the smaller, more intimate gigs (although I did do an O2 gig and a stadium one earlier  this year). Personal favourites from 2024 - Public Service Broadcasting, who use old clips from things like spaceflight and weave them into music; Felice Brothers, who are a folky sort of band; and Fizz, who are really not my usual bag, but the show was so wild and full of energy. I love being open to new gigs and bands I'm not familiar with - it's the same with my listening habits. Spotify is great, but the algorithm really closes you off to genuinely new stuff. I prefer to check out forums, record stores, and I bug my friends all the time about what they're listening to. 

Back from my trip, the jet lag is too real. But the good news is that the trip was phenomenal, freeing, and more relevant for this forum, BUDGETED FOR. I didn't really think too much about what I was spending. I wasn't going crazy, but equally, I wasn't thinking about prices, considering I was eating out for 2 1/2 weeks. I've come back to a bank balance with a tiny bit left in, but a December spend budget that would normally be for 31 days, but covers 21 instead. AND, not to mention my Christmas pot fund, which is predominantly for gifts, but I added budget in there for a normal December overspend that happens. But with that extra 10 days, I shouldn't need it, meaning I should have a surplus from all of that going into January.

I will wait until 1 January to see where I am at before I make a decision on what to do with that surplus. Next year I'll need to top up the holiday fund again, the house fund will need adding to, but now I can begin to set aside funds for things like boiler service, birthdays, dentist, and other things. I feel my budget is going to get a real overhaul in 2025 and the amount I budget for my monthly outgoings will change as a result. Watch this space.

londoner2019

New year, new update.

I've received the extra income, spent what I spent on Christmas, and am now back into a regular routine of work and being at home. 

I was able to figure out the figure I needed to set aside for my self assessment tax this year, based on all the income I've made to date. That's gone in my savings account, and from what's left, I've managed to: 

- balance my January spend budget (after Christmas and a mini break, I wanted to get on an even keel for the rest of the month)
- put 100 into my "fun pot" (for things like gig tickets or other impromptu things)
- get my Extra in the bank up to 3k (plus the interest that pot is earning - I've decided to leave that there)
- top up my pot for the house spends to 500
- I have 1000 floating at the moment - I am contemplating opening a S&S ISA.

I will also have 1k (and counting) extra sat in my tax pot, which is purely interest earned. Don't know what to do with that.

My 3k extra in the bank is in addition to a 1k emergency fund (which to be honest, I never touch). So really, there's 4k there for a rainy day, which would probably cover 2 months should I be out of work.

Over the next three months I'll get my house pot up to 1500, my holiday pot up to 2000, and then take stock of what my goals are for the year. I want to get a holiday fund in there as early as possible, then put my 1k aside for Christmas early, and then I can start saving for a giant 2026 pot - I.e. all annual spends, holiday, house, boiler cover, birthdays, Christmas. I've calculated roughly how much I need for that, and I'd love to get to the point where I start 2026 with that already saved. I can then start putting money elsewhere.

I'll be honest, I do stop and take stock of the fact I am talking about pots of money in the thousands. When I first moved to London, and throughout the 2010s when I was living paycheck to paycheck (and on payday loans) - and even 4 years ago when I had a lightbulb moment and was able to tackle the problem - I could never imagine just having a grand just sat there, with me having a think about what to do with it. I'm so grateful for this forum for giving me the motivation and willpower to deal with my debt.

londoner2019

Hello, February.

Weird month. Lots of pretty awful news with friends and family health-wise. Struggling to clear my head and deal with it all to be honest. I feel pretty apathetic and I'm finding it hard to make decisions. That's feeding through to my finances too. I managed to stay 190 in the black at the end of the month, despite a new year's trip and a few big weekends of stuff. But I have no idea what to do with that money. Normally I'd be shuffling it into a pot somewhere to top things up, but at the moment it is just sat there.

I guess I should keep it for any emergency travel (UK train prices, am I right). But maybe I could just treat myself to some new house plants to brighten up the house a bit.

2024 went by so quickly and I am finding 2025 is doing the same. Weeks pass in a flash, and I find I have nothing to show for it.

I need to focus and try not to start spurgling money - it's a distraction for me, and at times I just don't care about the consequences (until future me has to deal with it). I don't want to get back in a bad financial position ever again.