Debt and Budget (Reset) plan

shell16

enthusiasticsaver said:

Enjoy your new budget book.  Have you thought about rounding down when you do your PADs? 

Thanks Enthusiasticsaver.  Yes I do account round downs every day as a minimum, its certainly benefitted my CC2 balance!

CRANKY40

I've done my monthly budget by hand in a double cash book for years. It works fine. I don't do the pad thing though because my budget is worked out to the penny with available funds so everything just gets ticked off as it is paid. I always build a "just for things" barrier in which means that at the end of all the bills, food shopping, petrol etc I have about £150 just sitting there. This is for the odd things that crop up during the month like a coffee while we're out or a takeaway if I'm poorly, that kind of thing. Anything left at the end of the month is split between savings and debt repayment. 

shell16

CRANKY40 said:

I've done my monthly budget by hand in a double cash book for years. It works fine. I don't do the pad thing though because my budget is worked out to the penny with available funds so everything just gets ticked off as it is paid. I always build a "just for things" barrier in which means that at the end of all the bills, food shopping, petrol etc I have about £150 just sitting there. This is for the odd things that crop up during the month like a coffee while we're out or a takeaway if I'm poorly, that kind of thing. Anything left at the end of the month is split between savings and debt repayment. 

Mmmm I didn't think about my PAD using a zero budget! I do like doing a PAD a day so I will have to work something out 🤣

IndiJonesi

Just read your diary from the start and you are doing really well.  I do a daily transfer too, but I put mine into my offset mortgage account.  It is my favourite activity in life!  Cheering you on, Indi 

shell16

IndiJonesi said:

Just read your diary from the start and you are doing really well.  I do a daily transfer too, but I put mine into my offset mortgage account.  It is my favourite activity in life!  Cheering you on, Indi 

Thanks @IndiJonesi
I want to start tackling CC3 debt asap, so need CC2 gone asap!

EssexHebridean

Well just look at the progress you’re making! Absolutely brilliant! I’m another who prefers to write things down as far as financial stuff is concerned - I don’t “keep accounts” as such but all financial planning, searching out new deals on broadband, or utilities (goodness, just remember when we used to look for switch deals for utilities eh?! 😆) all get written down so I can compare.  I’ve got a four section spiral bound book that I use for all sorts of planning - from keeping track of birthdays, to my year planner, through to the financial stuff and to do lists as well. It just works! 

I agree with posting updates on stuff you want to keep track of as well. Your signature will show how far you’ve come, but it will be the update posts that tell the story of how you got there. 

shell16

EssexHebridean said:

Well just look at the progress you’re making! Absolutely brilliant! I’m another who prefers to write things down as far as financial stuff is concerned - I don’t “keep accounts” as such but all financial planning, searching out new deals on broadband, or utilities (goodness, just remember when we used to look for switch deals for utilities eh?! 😆) all get written down so I can compare.  I’ve got a four section spiral bound book that I use for all sorts of planning - from keeping track of birthdays, to my year planner, through to the financial stuff and to do lists as well. It just works! 

I agree with posting updates on stuff you want to keep track of as well. Your signature will show how far you’ve come, but it will be the update posts that tell the story of how you got there. 

Thankyou @EssexHebridean , I am very pleased with my debt reduction so far.  Cant beat pen and paper to assist with budgeting!  A love a good sectioned writing book, sounds great all in one place!

I thought a summary on a Friday would help me keep focussed on debt payments made from previous week and will help me visually with my journey so far.

shell16

Thank Goodness its Friday!

My new budget book arrived last week and I was very busy completing everything in there!  I literally couldn't wait!  I've set up my budget for December Pay due next week.  Thank goodness I decided to write in pencil though, the amount of changes I've done could have ruined my book had I done this in Pen! 


Summary of my week: 

* In terms of finances it has been a bit of a spendy week.  Christmas present buying has been from my current account now that my savings from August towards Christmas have depleted  .  I've still got around 5 or 6 still to purchase which will be another £200 ish.
* Spent train fare/car parking on 1 day into work, however Boris has now confirmed we should be working from home (woohoo!!!) 
* I'm continuing to make a PAD too which keeps chipping away at that CC2 balance, I should definitely be under £1K by the end of December!
* I'm still adding to the 1p challenge too, and have £8.93 so far (Checking off the bigger days at the moment).  If I stick to it, I should have just under £670 to put towards Christmas 2022.
* Reading lots of new comers diaries and trying to at least make a comment cheering them on if I cant offer advice

Snapshot of my balance as of today:

Total at LBM August 2021 - £13801.67
CC1 - £495/£0 - Paid off 04/10/2021
CC2 Limit £3700 - £2146.94/£1034.88 (52% reduction)
CC3 Limit £15000- £5654.40/£5892.21 (4.2% increase)
Loan - £6001.33/£4541.39 (24.3% reduction)

Total = £11468.48 (paid £2333.19 off debt)
16.9% Reduction since August 2021
PAD started 06/10/21 - £441.28 Extra paid off debt

According to my Figures I have paid off £123.25 extra on CC2 in the last 7 days and payment reduction by a further 6%! 

That's about all for now.

EssexHebridean

Great summary, and also great planning for Christmas 2022. Are you adding up everything you spend this year and working with that as your minimum amount to save? I know it’s a pain having to find money for the stuff that falls outside your half year savings, but just think what a better position you’re in having got those savings to offset so much of it! 

We save for joint Christmas spending in one savings pot, then I have a second personal one that I stick £20 a month into that covers presents for MrEH, friends etc. With inflation happening we probably need to decide whether than one should increase by an extra £5 a month - in fact I’m going to put that on my list of things for our next “household financial summit” (yeah, it’s really us, slumped on the sofa with a beer and a notebook, but doesn’t summit make it sound grand?! 😂) 

Meant to say by the way - you being so excited about your budget book inspired me to put my planning journal alongside me again so it’s there to use when I think of something that needs to go in it! Thank you for that! ☺️

shell16

@EssexHebridean

Thanks for the post, Ive set up a 1p challenge and if i stick to that I should have around £670 plus im saving £75 a month to christmas which should be £900.  Im hoping this will be able to cover off everything for Christmas 2022.  Regarding inflation thats a good idea, may put a note in my budget book to start the Christmas present buying/viewing in Sept/October to check gift costs!

I love the sound of your Household financial summit, it does sound very grand and official!