The Mental Debt Struggle...

Keedie

THE SUNDAY SUMMARY

(Week 44 ~ 3 November 2024)

Debt Regrets

Goal 1 - 100% repayment to Bank of Mum 3 (school fees) - due 1 April 2024
Progress Checker = £3,800/£3,800 (100% repaid)
🎉 Achievement Date = 24 March 2024 🎉

Goal 2 - Pay £5,000 off my overall debt balance in 2024 - due by 31 December 2024

Progress Checker = £4,398.80/£5,000 (87.98% repaid)
The fixed direct debit of £150 for Barclaycard was paid this week, so that has brought my overall debt repayment to nearly 90% of my goal which is reassuring. If I pay a further £601.20 by 31 December 2024, I will have reached the £5,000 pad towards debt. I have £300 in fixed direct debits, but if there is any money available after my emergency fund is sorted, I might be able to reach this target.

Goal 3 - Clear Barclaycard Plan 1 (£6,508.43) - due by 31 January 2025
Progress checker = £3,797.23/£6,508.43 (58.34% repaid)
The fixed direct debit of £150 came out this week and so I am nearing 60% of this payment plan being cleared. The amount remaining is £2,711.20 now. I'm pleased to realise that I got some of my maths wrong. I'll have £450 in fixed payments between November 2024 and January 2025, so that leaves £2,261.20 to clear, of which £1,135 is owed by my siblings. So I need to find £1,126.20 or do a money transfer for that value. I think that if I disregard everything else goal wise, once the emergency fund is sorted, I will come very close to clearing Plan 1, and might not require a money transfer. I've received another £20 from my sister, and I set aside £15 as well, so I now have £55.37/2,261.20 (2.45% saved) to send to Barclaycard. The pot that the money is sitting in earned £0.37 interest for October 2024 so that was helpful. I'm hoping that by accumulating it, some of the balance will grow a little with interest. And then I'll do the same approach for Plan 2, which is £2,070 and due by 1 November 2025.

Saving Grace

Goal 1 - Save £500 for my son's 18th birthday - due by 30 September 2024
Progress Checker = £500/£500 (100% saved)
🎉 Achievement Date = 15 September 2024 🎉

Goal 2 - Save £500 emergency fund - due by 31 December 2024
Progress Checker = £57.08/£500 (11.42% saved)
The balance for the emergency fund took another hit, and is now £57.08 and the Macbook hasn't even been repaired! Arrgh. Life is just a bit too much at times. But I'm building it back up now. And it won't be touched. I'll be sinking everything I have into this goal, and I should be able to get to around 80% by the end of November. I can then finish it in December and then concentrate on the balance of Barclaycard Plan 1.

Balancing the Budget

This section of my weekly check-in will focus on how I am preparing for the upcoming month, so that I can stay on track and be more successful in meeting my targets.

Income Tracker - £2,650 for December 2024's Budget
Progress Checker = £1,565/£2,650 (59.06% accumulated)
I thought that I had to increase my budget to £2,750 a month, but I reprioritised things, and I need £2,650 a month. Which is better. This week, I had £965.90 in universal credit and set aside £965 for December 2024's budget and I earned £600 freelance. So that leaves me at a very healthy 59.06% saved towards December's budget, with a total of £1,565 set aside. 

Freely Debt Savings - £750 Goal for December 2024
Progress Checker = £0/£750 (0% saved)
I'm hoping that as I did the freelance work, it will help boost my surplus enough that the emergency fund takes care of itself by the end of November 2024. I have a few more hours to do, so if my invoice is paid immediately, like this last one was, then I can put that towards December 2024 as well. Which means the Freely Debt Savings or in this case, surplus for December 2024 works out as I need it to. With the emergency fund sorted and a chunk of what I need to kickstart the Barclaycard Plan 1 repayment. But if I don't have the fluke of an invoice being paid on receipt, then I should still be able to meet my target for December 2024, of £750, as the £600 freelance work will make all the difference.

Makingabobor2

That's a great amount for the freelance work. Would love to do something like that. 

Keedie

Thanks @Makingabobor2. It felt really good to have earned that, as it was so tiring to do so. It's not sustainable to work two jobs, for me anyway as I feel so constantly depleted. But that two months worth of freelancing, but it will make all the difference.

If I can do 20 hours over the course of November, then that will help me get into a stronger position going into the new year. I'm hoping that 2025 will be less financially stressful. Life likes to throw me curveballs though, so I'm trying to brace myself for things if life does go a bit sour. And if things tick along all nicely, then I can hopefully relax and be in a more stable position for once. 

I need to go and do a proper food shop this week, now that my son's muscles are back in commission 😂. I've been saving a lot of money by having enough food and snacks on hand at home. So I need to maintain that. 

The course provider I have been looking at, has a Black Friday sale on at the moment, with 10% off courses. It's a shame I've not even saved up enough for the deposit at this stage, so that's not a reality for me. Hopefully they'll have a January sales promotion going as well. I'd only be putting myself in debt if I was to pursue that now when I'm not ready financially. It's a shame though.

Cherryfudge

Just sticking my head round the door to see how you're doing, @Keedie. I hope things are okay?

Baileys_Babe

Popping in to check you are okay. I hope you have the time, energy and motivation to visit soon.

Keedie

Thank you for checking on me @cherryfudge and @Baileys_Babe, it really does mean a lot to me. Life has been rather s**t recently, and I've not felt well mentally or physically so I just switched into autopilot mode to get through the days. My right hand is also swollen across my knuckles, and so I'm having trouble typing. By the time I've worked and typed all day, I just crawl in bed and feel sorry for myself 😂.

Had some traumatic life events happen recently that made me realise that I need to be kind to myself and leave my job ASAP. It's taking too much mental energy to just keep going and I was kinda startled and ashamed to realise that next month, I would have been there for 6 years... that was a sobering revelation. I'm at a bit of a loss at the moment. So I need to have a proper think about my next move, as I am physically struggling to work and I've been mentally declining. It's kinda exhausting trying to always be strong and to keep plodding on. I feel so depleted and I have realised that I need a career break and to figure out my next move. 

I was really worried about being able to keep universal credits or if I would be sanctioned for resigning on health grounds. And I realised that because I am in the limited capability for work category, I don't even have any work commitments! I had to log into my account and go one a one hand typing Google mission, and realised that it might be okay after all. I've been burning myself out, and I feel like nothing much ever changes, so I need a proper break. I don't know long the break will be, but I'm giving myself a minimum of 6 months. It's an incredibly scary prospect, but it feels very necessary. I'd like life to be a little kinder to me for once. But I think I need to be more proactive in making that happen, by being kinder to myself.

So with that in mind, I've decided to pause on the accountancy/bookkeeping courses and any debt overpayments. I'm going to concentrate on trying to save 3 months worth of expenses. So that by the time I leave work, and I am solely on benefits, I'll be able to halve what I need to pay in expenses every month, so it will last for 6 months.

When my hand isn't stiff and swollen, I'll be able to go on Canva and make some nice savings challenges and stuff that will keep me motivated with saving to get one month ahead. I've reduced my monthly budget to £2,400 so that I will still be able to have sinking funds, pay my debts and have spending money etc. My bills, debt repayments, savings, food, travel and my son's expenses and my spending money comes to £2,125 a month with the remaining £275 for discretionary expenses and sinking funds.

Of the £2,125, the amount for fixed expenses and essentials is £1,935 a month, and that is the amount that I need to save for 3 months, which is £5,205 total and would be my stretch target. That will be £1,200 for bills, £100 debts, £50 Help to Save, £50 emergency fund, £300 food, £50 petrol, £185 son's travelcard and college expenses. If that becomes unfeasible or too draining to accumulate, then I will just concentrate on saving £1,400 per month, to cover the bills, debts and savings. 

I've still got to work it out. But having something to focus on as part of my escape plan, has made me feel a bit better about things. I won't be debt free by the time I leave like I had hoped. And I won't have gained my qualifications to help with my career change. But I feel like I need to get out sooner rather than later, so that I can actually start to have a life, instead of always doing the sensible thing and worrying about bills, debts, my son and everyone else but myself. It's hella scary, but I feel like it's definitely time...

Makingabobor2

sounds like a sensible decision.  I know I had some problems and left a job when really we needed the money, but I just felt at the time that it was far too much stress and wasn't helping my mental health.  As it was, we managed to survive the almost 2 years until I got my pension and it was so worth it, as I feel loads better now. 

Baileys_Babe

Lovely to hear from you @Keedie sorry to hear you are struggling at present. Do you know what is causing your hand swelling and stiffness? What can be done to alleviate this? 

Saving up 3 months of expenses is a good move, once you have that in place you can reassess if you still want to leave your current job immediately or if your plans have changed or developed, what ever you decide the money will be there to support those plans.

beanielou

You can only do what is best for you. Take care of yourself. x

KajiKita

You know your limits and what you can cope with. Far better to have and execute a structured escape plan than having to crash out on the grounds of ill health - when it gets to that stage it always takes much longer to recover from. 

Maybe a chat with CAB about the potential benefits situation might help with the planning? 

KK