The Mental Debt Struggle...

beanielou

I don’t think you need a home made OD and a EF so good thinking to remove one. 

Keedie

Yeah, you're right, it isn't necessary @beanielou. I think that was just my anxieties running the show really.

I think getting the emergency fund to £1,000 would be enough for me to feel less anxious about things. I'll still eventually have a buffer I think, but that will be more for supplementing the sinking funds if needed, so that will be one of the last things that I get around to doing. I think once I have the main sinking funds established, I'll be in a good position as these things cost the most and so by having some money set aside will help with the sting of things when they occur.

In an ideal world, I see my finances in my mind's eye in a few phases, which all fall into place by doing everything within the new budget:

Phase 1 ~ by 31 December 2024
Budget - continue with earnings and child benefit budget, so that by December 2024 I have surplus income via PIP
Debt - continue paying £250 a month and do a money transfer on the remaining balance of Barclaycard Plan 1 (approximately £3,000) to avoid interest (this then becomes Plan 3)
Savings - build £500 emergency fund and establish 4 main sinking funds; Christmas/Eid, birthdays, car maintenance and home expenses

Phase 2 ~ by 30 June 2025
Budget - use surplus income to start making overpayments to debt and boosting savings and sinking funds
Debt - continue with £250 a month plus overpayments to clear Barclaycard Plan 2 (£2,070)
Savings - build £1,000 emergency fund and continue main sinking funds via surplus budget

Phase 3 ~ by 31 December 2025
Budget - use surplus income for debt overpayments and boosting savings, plus beginning freelancing again
Debt - continue with £250 a month and overpayments to clear Barclaycard Plan 3 (£3,100 inc money transfer fee)
Savings - continue emergency fund savings and fully funding sinking funds

Then once I am debt free, I can concentrate on getting one month ahead until I steadily get to 6 months of expenses, as I'll be able to use that £250 a month towards that month ahead fund.

Makingabobor2

You are very good at working it all out so far in advance. Hope it all goes according to plan. 

Keedie

Thanks @Makingabobor2. Have a long term goals gives me context and focus, and then I adapt as needed when life takes over.

I spoke to my son about his subscriptions and he reminded me that he also has MGM linked to my Amazon Prime. Not sure how I overlooked that one 🤦🏾‍♀️. It's £4.49 a month. So we've agreed to split them and he'll contribute £10 a month of his allowance towards the subscriptions. They come to £210 a year in total for the Playstation Plus, EA Access, Crunchyroll and MGM, and from his allowance he will cover £120 at £10 a month and I'll cover the remaining £90 a year. 

So I'll rework the budget categories, so that sinking funds goes from £100 up to £110 and the pot for his stuff drops from £200 to £190 👌🏾.

Baileys_Babe

Pleased that you had the conversation with you son about his subscriptions. You should be proud of him for taking on board what you were saying and for being honest about the MGM subscription.

Keedie

Yea he's a good kid, annoying at times as we're so similar, but a good kid nonetheless. I told him that I'll be able to put the money towards my Kindle Unlimited subscription and he was happy for me.

I paid another £20 into the emergency fund, so that's now £41.01. I'll feel better when it's back up to £100 by the end of the month. 

I'm having a lazy day today, as I've got work tomorrow, but I'm feeling so weak... 😬.

Cherryfudge

I hope you've managed your lazy day and it sets you up for a good day at work.

That emergency fund is growing fast!

Makingabobor2

Hope your lazy day did you some good and work is not too exhausting for you today. X

Keedie

Thanks @Cherryfudge and @Makingabobor2. I was so so tired yesterday that I was barely able to roll out of bed and make it to work on time. But I surprisingly had a very productive day, and had a dream commute on the way home and got home in a miraculous 25 minutes. It's like every green light was just waiting for me. Uncanny.

But then yesterday I binge watched the entire Owning Manhattan series on Netflix, about selling high end real estate, and boy oh boy was it addictive and just great TV! I love me a bit of drama (from the safety of my bed watching TV, not in my real life), and I actually was able to switch off from my own problems and just get absorbed in something that isn't a book. Anyways, that led to me being so knackered today as I went to bed around 2.30am 😬. So I'll be a little gentle with myself today, and work should hopefully not be too draining. 

And yes, the savings are going to bounce back. I've done a whole plan yesterday of how I can clear my debts by December 2025 instead of November 2026. I put together some actionable steps for my 3 phased plan, and they're stretch goals, but doable nonetheless. BUT, I'm going to have to be quite disciplined for the next 18 months in terms of my spending, and saving every penny possible so that I can make debt overpayments. I'm going to see if more as a game than anything, and make some more savings and debt trackers, as being able to colour things or tick things off makes all the difference to my motivation. 

beanielou

Game on then ☺️