Prosperous soul embraces creativity & mortgage neutrality

boxofpaws

Chortling at puppies enjoying the crunchiness of glasses

savingholmes

Thanks @Cheery_Daff - it is lovely to be making visible progress. It was due to take me until this time next year to repay the CC otherwise so yes fantastic. I'm really looking forward to my time away too.

Blackcats said:

Hello SH!  You are so right that you need to remember to be kind to yourself and savour your successes before you move onto your next priority.  

I also struggle spending from my emergency or savings pots even when it's entirely appropriate.  Strange that I never worried about spending the bank's money via my overdraft or credit cards 🤣.
I got some beautiful tulips from olio too and they lasted a few days.
I've got over feeling awkward about the free food and I now feel good about avoiding food waste....

I listened a bit to a book on mindfulness today. It did make me feel calmer. It is important to celebrate success and as you say not immediately move on. DR reckons you spend a third more if you use a CC - even if you pay it off in month. That's a sobering thought... Glad you got tulips too. It was partly you posting about similar on your diary that made me give it another try. I love free food and yes avoiding waste at the same time is good. I want to avoid too much fuel cost though - so unless I get a few things from one person it's not really worth the fuel... 

beanielou said:

That is a really really dire price for the glasses.
My last ones last year I was encouraged to reuse old frames & their was no charge for that.
This was a small independent. 
I am speechless.

Hi Beanie - that's good to know. I will shop around as that price is horrific. I'm struggling to see what I could possibly sell that would bring in the extra needed. I need to create a savings pot in the budget if it it's going to be that kind of cost every couple of years!

Humdinger1 said:

@savingholmes yes; I think culturally, there's pressure to do it all and do it now.  When we stop scratching that itch by unnecessary spending, we move to paying off debt and setting up perfectly organised lives.  You are doing the right thing by appreciating yourself and the moment.  Well done on all your achievements love Humdinger xx 

Thanks for the encouragement @Humdinger1

savingholmes

Thanks @boxofpaws

The below may sound slightly whingey which isn't my intention. I'm just trying to cement in my brain that life isn't quite how I expected due to world events - and that this is having a major budget impact and I need to allow for that. It's almost like my brain hasn't caught up with the new price of things yet.

Well I've had another look at my budget to see why - even now I'm about to be debt free other than the mortgage - things still feel so tight. 

• I think it's because my original 'post-divorce' budget was based on only my fuel use not DD's. Hopefully - I will stop the 100 miles round trips from around the end of May. Hopefully, not long after that she will pass her test and be responsible for her own bills. That should reduce my fuel bill by upto £70 per month or allow me to go on more day trips out.
• I didn't anticipate wild increases to fuel costs or energy bills and thought they'd be offset by reduced household size. Pre October we were paying £123 for dual fuel. 
• In Oct-Jan period - we averaged £130 a month just for gas (no control over it as weren't getting bills so no visibility). Ex left midway through that period - I didn't try and charge him the deficit. Still not had PE bill. My gas bill following visibility dropped to about £105 and then £75 a month since I went to the elec blanket. Currently paying £76 a month for that - but they want £40-50 more.
• Elec more like £50-60 pcm since bill visibility. New direct debit for elec £80.
• We were in deficit for water by £150 at the divorce date - so I had to maintain direct debit at high level rather than dropping down from £64 to £35-40 that I had anticipated. DD often accidentally leaves taps running.
• No allowance for inflation. 
• I assumed I'd live alone - I still haven't upped DD's contribution and am slightly hamstrung in doing so by the 'gift' but having reviewed my monthly and annual costs I will need her  to contribute more. Will discuss with my counsellor how to address that. DD is expecting something - and says she'd just rather know what it is...
• I am more impacted by the rising cost of living than I'm typically conscious of. I think the inflation 7-8% quoted is far too low.
• I originally planned to reduce my counselling but that hasn't happened yet. Also my price per session went up 12.5%. This will need to become a higher focus area if my budget continues to be squeezed. I want to replace it with other social rather than just drop it with no-one to fill the gap. That will take time.
• My hairdresser has gone up 6.15%. I am trying to leave slightly longer gaps between some appointments so I get some months hair bill free.
• I am over-paying my mortgage by £20 and my pension by £50. That wasn't in my original budget although I want to maintain that as long as I can.
  

Without gifts from family and various sales, refunds, bank account switching bonuses etc I would be in a bind and wouldn't be going on holiday this year. I have been very fortunate in the amount of extra money that has come in above my salary - and need to keep that focus on bringing new £ in. My original plan was to throw any extra £ at the mortgage / pension but it's just been absorbed so far. If I get the regrade that will pretty much be absorbed by buying extra time off - this year at least - although if they backdate it I could have a lump sum which would be fab. If I get PIP that could make a huge difference. My first priority will be getting all my 'annual pots' filled up.

I will need to weigh up at the end of my mortgage period (end 2026) whether or not to keep this house or downsize etc. Before then the ERCs are horrific (10, 8, 6, 4, 2%) so I'm tied in. All I can do is try and drive down all my other bills as the less than 2% rise I got for last year doesn't even scratch the surface. Still glad I used the back pay to fund a cottage holiday though

Well done to everyone fighting to stay afloat financially in these difficult times. I really do value your encouragement and ideas on how to get better prices / free stuff.

happihorse

savingholmes said:

Thanks @boxofpaws

The below may sound slightly whingey which isn't my intention. I'm just trying to cement in my brain that life isn't quite how I expected due to world events - and that this is having a major budget impact and I need to allow for that. It's almost like my brain hasn't caught up with the new price of things yet.

Well I've had another look at my budget to see why - even now I'm about to be debt free other than the mortgage - things still feel so tight. 

• I think it's because my original 'post-divorce' budget was based on only my fuel use not DD's. Hopefully - I will stop the 100 miles round trips from around the end of May. Hopefully, not long after that she will pass her test and be responsible for her own bills. That should reduce my fuel bill by upto £70 per month or allow me to go on more day trips out.
• I didn't anticipate wild increases to fuel costs or energy bills and thought they'd be offset by reduced household size. Pre October we were paying £123 for dual fuel. 
• In Oct-Jan period - we averaged £130 a month just for gas (no control over it as weren't getting bills so no visibility). Ex left midway through that period - I didn't try and charge him the deficit. Still not had PE bill. My gas bill following visibility dropped to about £105 and then £75 a month since I went to the elec blanket. Currently paying £76 a month for that - but they want £40-50 more.
• Elec more like £50-60 pcm since bill visibility. New direct debit for elec £80.
• We were in deficit for water by £150 at the divorce date - so I had to maintain direct debit at high level rather than dropping down from £64 to £35-40 that I had anticipated. DD often accidentally leaves taps running.
• No allowance for inflation. 
• I assumed I'd live alone - I still haven't upped DD's contribution and am slightly hamstrung in doing so by the 'gift' but having reviewed my monthly and annual costs I will need her  to contribute more. Will discuss with my counsellor how to address that. DD is expecting something - and says she'd just rather know what it is...
• I am more impacted by the rising cost of living than I'm typically conscious of. I think the inflation 7-8% quoted is far too low.
• I originally planned to reduce my counselling but that hasn't happened yet. Also my price per session went up 12.5%. This will need to become a higher focus area if my budget continues to be squeezed. I want to replace it with other social rather than just drop it with no-one to fill the gap. That will take time.
• My hairdresser has gone up 6.15%. I am trying to leave slightly longer gaps between some appointments so I get some months hair bill free.
• I am over-paying my mortgage by £20 and my pension by £50. That wasn't in my original budget although I want to maintain that as long as I can.
  

Without gifts from family and various sales, refunds, bank account switching bonuses etc I would be in a bind and wouldn't be going on holiday this year. I have been very fortunate in the amount of extra money that has come in above my salary - and need to keep that focus on bringing new £ in. My original plan was to throw any extra £ at the mortgage / pension but it's just been absorbed so far. If I get the regrade that will pretty much be absorbed by buying extra time off - this year at least - although if they backdate it I could have a lump sum which would be fab. If I get PIP that could make a huge difference. My first priority will be getting all my 'annual pots' filled up.

I will need to weigh up at the end of my mortgage period (end 2026) whether or not to keep this house or downsize etc. Before then the ERCs are horrific (10, 8, 6, 4, 2%) so I'm tied in. All I can do is try and drive down all my other bills as the less than 2% rise I got for last year doesn't even scratch the surface. Still glad I used the back pay to fund a cottage holiday though

Well done to everyone fighting to stay afloat financially in these difficult times. I really do value your encouragement and ideas on how to get better prices / free stuff.

Hi savingholmes.

Just been catching up on your diary and found this post particularly interesting.  In fact, I think I actually read it slightly differently that you were intending.  Certainly not whingy and more of a 'look at what you have overcome and dealt with and still keeping your head well above water' kind of way.

Don't forget to look back at what you have achieved too - you have come a long way in the last 6 months or so.  Do try to think of how all you have learn and done extrapolates into the future!

beanielou

I agree with @happihorse

I think it’s a good practical reflection of where people are, particularly people with one income & other added challenges whatever they may be.  

So thank you for that. 

SandyShores

Agree with happihorse savingholmes.  You've had a really productive year, and I like that you are prioritising yourself.  No point being debt-free and not being able to enjoy it.  You've also got choices, and that's what being debt-free gives you.  Well done!

jwil

You're doing great

skint_spice

Definitely agree with keeping up the counselling, it might not have been part of your original plan but if it’s helping then it’s worth it.

Tahlullah.H

I don't see your list as whingy.  To me, it looks as if you have given each individual situation a great deal of thought, considering the pros and cons, which in itself is extremely positive.

savingholmes

Thanks @happihorse for the reframe - very helpful thanks. Thanks too @jwil @Tahlullah.H @skint_spice @beanielou @SandyShores

I am now officially debt free!!! Just paid off Am**** and MnS!!!

So down from £70K CC and car loan debt at worst in 2016 to £0 other than the mortgage.

I decided not to wait until tomorrow - as I've had my payslip and it's enough to refill my EF with what I've paid off early. It feels like a miracle. I've had help from PPI and packaged bank account reclaims and cashback sites and more recently from wider family - but most of it has been a slog. We even sent a car back at a breakpoint in the lease. At our worst we were spending over £1K a month more than what we were getting in - so to turn that around to while still on a joint income - to at times paying off £3K a month (helped by lockdown) has been immense. Throw a divorce in towards the tail end with all the associated bills and it could have completely derailed me - but instead it made me more determined than ever to get debt free. 

As Beanie's quote says, "Out of debt, out of danger." 

Thank you to everyone who is cheering me on. My standard used to be to maintain an EF of £1K. Then I moved it post divorce to £2K with the help of a gift. Now I want to set my new minimum to £3K. That's due to take until around February 2023 if I don't get my regrade / PIP / any extra money from DD and assumes I manage my £ incredibly well. My progress should accelerate however if I get new £. It's likely to be a choppy line at times dipping back below £2K - particularly if I do buy the glasses - as although I list in my spreadsheet roughly when my annual bills are - I currently have a single savings pot. My long term goal is to get to FIRE but as part of that I want to build a 3-6 months emergency fund which could take years. I'm therefore still thinking through the implications of that on over-paying my mortgage or pension. 

Catch up with you all again soon!