Baby steps all the way to Financial Freedom

Sarahwithlove

That emergency fund is growing quickly. Any news on the wages front? 

Gettingmyshiztogether

Hello everyone, thank you for your encouragement! 💗

Sarahwithlove said:

That emergency fund is growing quickly. Any news on the wages front? 

Hi Sarah, thank you for asking. I did receive a small payment week before last, just a third of what I was expecting. He said he would pay me the rest last week... I am still waiting... although I do have a bit more faith that he will pay me. Just in his own sweet time. I did chase this on Friday and he said "No problem" but it's just not his priority right now clearly 🙄 I'll chase it again on Tuesday... I hope he does so soon though as I am sure that my car tax direct debit is due at the end of this month, which I had forgotten about when I did my budget this month 🤦‍♀️ and I don't want to use my emergency money... but if I have to, I will.

I sold an item on FB which was £5 so that went straight into the emergency fund. So that's standing at £605.

Yesterday, I was asked to do some overtime for my other part time job, (my only part time job now) which was double pay today. So I ve earnt an extra £60 this morning. Then I sold something for £30. So that's all good! If I get paid 🤞 then coupled with the £30 I should have more than enough for the car tax and for an extra payment into my emergency fund by month end. The extra £60 will be in my pay in a few weeks time. No doubt that will go to the emergency fund.

The "Not so good news" though was that I discovered what I think is a slow puncture on my back tyre today. I have had to inflate it two days in a row 🙈 So have spent £195 on two new back tyres. However, I did shop around and got a great deal, they will be fitted Tuesday. 

I know this is what my emergency money is for, but I am actually a bit annoyed abut it. Tyres aren't an emergency really, they are a bit like Christmas, you can expect to replace them!

I think this is a really good thing to be annoyed at though, because it just shows how my awareness is growing. So, I didn't use my emergency money 🙈 I know Dave Ramsey would be shaking his head at me, but I used the Paypal 0% interest free for 4 months and have set up a £50 a month repayment.

Then I need to set up a "car sinking fund" for after that. I have one for Christmas aand one for School Uniform so far but clearly over looked the car 🤦‍♀️ awareness is the first step though as they say.

Gosh this is turning into a super long post! If you have got this far... well done! 

Lastly, I ve been watching a lot of the Budget mom recently and one thing she said really stuck with me. That was about prioritising the debts for you, which one makes you feel the worst when you look at it. That for me is actually my largest credit card. So I am seriously considering changing my plan, and instead filling my £1000 emergency fund, pay off my small Paypal credit and then doing the largest credit card. 

Anyway, that is it for my ramblings for today! 

13thlegion

I'm part way through my own very Ramsey inspired journey and it is very encouraging to read yours.

Completely agree on the sinking fund for the car. I've had to realise just how many different pots I need to think about for stuff like that!

I do have a question about using PayPal 0% rather than the emergency fund. What is the functional difference between them? I get that emotionally it hurts to dip into, out washing machine died just before Christmas. However now you're tied to paying £50 per month to PayPal to maintain the EF, when that could be going into the EF to make it recover faster. Using the EF is essentially a 0% borrow but from yourself instead of anyone else. And due to the emotional drag of using it you would probably be motivated to pay it back quickly to yourself.

Gettingmyshiztogether

13thlegion said:

I'm part way through my own very Ramsey inspired journey and it is very encouraging to read yours.

Completely agree on the sinking fund for the car. I've had to realise just how many different pots I need to think about for stuff like that!

I do have a question about using PayPal 0% rather than the emergency fund. What is the functional difference between them? I get that emotionally it hurts to dip into, out washing machine died just before Christmas. However now you're tied to paying £50 per month to PayPal to maintain the EF, when that could be going into the EF to make it recover faster. Using the EF is essentially a 0% borrow but from yourself instead of anyone else. And due to the emotional drag of using it you would probably be motivated to pay it back quickly to yourself.

Thanks for dropping by 13thlegion! And I wish you weren't right but I think that you are 😭 I ve worked so hard to grow my emergency fund I am gutted to have to spend it BUT you are right. I am going to pay off the PayPal today with my emergency fund money 😭 thank you for your perspective. It really made me think and revisit why I am doing this. 

Right off to pay it off now before I talk myself out of it! 

Gettingmyshiztogether

Done! 🤣

£409/£1000 emergency savings! 

CL21

Absolutely love the Budget Mom - her book is what switched on a light for me. Dave Ramsey is great but his ‘rice and beans’ approach isn’t realistic for everyone. Her book made me realise that you have to budget to suit your lifestyle. Some months that is rice and beans. Some months it’s not 🤷🏼‍♀️

Gettingmyshiztogether

CL21 said:

Absolutely love the Budget Mom - her book is what switched on a light for me. Dave Ramsey is great but his ‘rice and beans’ approach isn’t realistic for everyone. Her book made me realise that you have to budget to suit your lifestyle. Some months that is rice and beans. Some months it’s not 🤷🏼‍♀️

Yes I agree, I find listening to her YouTube videos each day keeps me on track. I think I am going to print off some of her free resources sheets and have a go at tracking my annual spends this year too.

Mini update on my pay situation... chased up again yesterday. I got a reply of he's not forgotten... 🙄 so I asked when I should expect payment and my message got ignored. So will ring today. 

Walked the pooch and found £5 on the floor. Very windy here and so it's blown from somewhere, no where obvious it's come from so it's currently sat in my pocket. 

Just sat waiting for my tyre man to come and replace my back tyres. 

Gettingmyshiztogether

Good news! 

I only needed one new tyre!the other one is fine he said and if he replaced it, it would only be for 2 extra mm of tread so instead he is going to refund me!

However, because I originally paid on PayPal credit I *think* the refund will just come off of what I owe them, even though after having another perspective I sent the money from my emergency fund over to paypal to cover it. 

Anyway its a win over all; not cash to go back into my emergency savings, but payment off of my paypal debt.

I listened to a money meditation before bed last night... think ill be listening again tonight!!! 🤣🤣

CL21

I printed off one of her debt payoff trackers. Can’t wait to get colouring it in! 

LookingForPeace

I love your thought processes here @Gettingmyshiztogether ! I would backup what @13thlegion said too, better to get used to borrowing from ourselves and take credit off the table.. I think we need to feel the difference in the two choices to understand?