Damsel in Debt Take 2

bekah89

shell16 said:

Hi there and wonderful you are starting to hold yourself accountable.

With regards an emergency fund, you definitely need to make this a priority.  Alot opt for £1000 but personally I like to have a mini EF of £500 which will deal with most emergencies which crop up as I well know

Your haircuts and entertainment budgets per month do seem a little steep especially that you have this debt.  Could you maybe have a haircut etc every other month?  Also your entertainment budget, what is this for? Again is it something you could look to reduce if for example you use this as eating out could you cut down to every other week or once a month?  Do you regularly use an overdraft? Your debt needs to be focussed (I would say) on EF first, then tackling Barclaycard as that APR is shocking. 

The key to getting out of debt is an honest working budget.  Give every penny of your pay a role and budget to zero.  I used the last 3 months of spending to analyse where my 'extra' cash was going and it turned out to be on rubbish things like coffees or when at work buying lunch.  I didnt totally cut these out but focussed on reducing what I did spend.  Give yourself some personal spending cash but when its gone its gone!

Try cash budgeting for anything you would like to focus on if you overspend like your Grocery as you have mentioned.  I personally use cash for Grocery and Fuel for the car as those were areas where I overspent.  Its too easy with a card, if you go over budget you feel it doesnt matter. I budget monthly but have a weekly mini budget for my cash items.  Its amazing how using cash keeps you focussed, I have personally funded my 2nd EF with left over cash from my mini weekly budget and sent £95 so far in the last month.

Just a few things to think about, keep updating this will make you accountable and you will be able to see your progress! Good Luck!

Shell x  

Thank you! Yes I will definitely make a EF fund now, I think 20 or 30 a month. I know you never know what will crop up! 

The entertainment budget i overestimated I more thought about what I’d been spending the last couple months as been a few social events recently. And didn’t want to leave myself with not enough and then having to dip into the card. But atleast in January will be a very quiet month. I used to buy a lot of coffees out too and sometimes buy lunch on work days but I’ve almost completely cut these out now. Eating out doesn’t happen much just more recently. Haircuts was also including a beauty appointment too which I have every 6 weeks. Haircuts are every 2 months so the 40 was what it costs in a year divided by 12. I will spread haircuts over 3 months I think so this will reduce. 

I have a £250 overdraft but it’s interest free so have been ending up in that, which I know is not ideal but as it’s not costing anything thought would be ok. Barclaycard I want to get rid of they keep putting their APR up eveytime the Bank of England rate goes up.. so alot! 

Yeah I’ve kept a closer eye on what I’ve spent this month it’s already alot! But mostly been on Christmas presents and my work do. But I’ve worked out what I’ve got the rest of the month and it’s enough to cover remaining presents and a bit extra 

I used to use cash for spending money it is a good idea and keeps you more disciplined! But I guess stopped when everyone stopped taking cash. It would be a good idea for groceries for sure. I know I will be able to get that amount down, I need to start tracking everything on a spreadsheet again I think! That’s great £95 is an amazing amount! 

Thank you! And thank you for all your advice! I felt like I need to log it all on here again to keep myself on track! 

bekah89

Done a mini food shop today, only bought essentials. Steered clear of alcohol and treats! I’ve spent £90.45 so far on groceries this month, not too bad considering I’ve bought a bottle of baileys and wine, and some chocolates towards Christmas. And I’ve got plenty of food to keep me going a while. 

I consider this an NSD as don’t include grocery shopping as it’s an essential. I’m on 10 now for the month! Tomorrow won’t be one. 

Also got a refund of £38.08 so that’s gone onto my Barclaycard. 

With all my PADs I’ve worked out I’ve paid £92.12 extra off so far this month on top of minimum payments! Just got one more minimum payment to come out on Monday 

LookingForPeace

Sounds like a good day Bekah! Nice one   

It did cross my mind to suggest a race as we're both at 10k 

bekah89

Thank you @LookingForPeace! Haha yes good idea more to motivate us! 😅

bekah89

Happy Saturday! Spendy day today got some more Xmas presents but I’m still within budget
done a PAD of £1.92 to round off barclaycard.
I’ve been working towards my debt as each percentage so my 1% at the time was 109, so at the moment I’m nearly at my first 1%! £93.09, makes it seem like a more manageable amount, and that doesn’t include minimum payments. Also I’ve just gone under 10,600.. just by 99p 😆 feels like a tiny milestone haha
Had so much snow where I am, I’m not looking forward to the rain turning it to basically slush tomorrow! ❄️

savingholmes

Sounds like you have set quite a lean budget - well done for making it balance and having some left over.

I found the Make £10 a day challenge a lifesaver when I first joined MSE as it gave me some guilt free spends and helped me pay debt down faster - and helped me fund things like gifts for people. Think bank switching. Being paid to take out CCs (only if don't spend on them). £co or equivalents. Surveys and receipt scanning. Also look at selling stuff. I've found FB the easiest route so far - but others like the bay and vinted. 

bekah89

Thank you @savingholmes! Yes I’ve joined the make £2023 in 2023 challenge. I’ve sold quite a lot of things on Depop and vinted, still got lots on there listed and more to put up! Although the mountain of clothes is annoying me 😆 I will take to the charity shops if they don’t shift within a few weeks. I switched banks to first direct and got £150 in the summer, I might do another if a good one comes up. I’ve seen people make so much from surveys and receipt scanning! I used to use Swagbucks but got fed up with it. I’ve not had any offers to get paid to take out CCs unfortunately my credit score isn’t that good 😆 I’ve also got some overtime coming in my next pay packet and still getting the £66 off my energy bill from the government so they will go straight off the cards so will make a nice dent 

savingholmes

Sounds like you are on the right track

bekah89

NSD today, just bought some groceries and wine and Prosecco for Xmas, did the 25% off 6 bottles at Tesco. £51 down to £29.25 I’m very happy with that! After Clubcard prices, the 25% off and £3 off voucher! Makes me not feel so bad about buying loads of alcohol 😆 ive paid off £1.50 PAD to Barclaycard, found it in my paypal from Shopmium cashback. Also downloaded curious cats the survey app, already got £1 in there, the surveys are so quick and easy! Just watching the football now, Argentina to win! 

LookingForPeace

Bekah you have me howling at getting away with a NSD that was £30 of bubbly  I'm right behind you though! 

Congrats on the finding the few extra bits on the surveys etc. They sound useful!