Flying solo

in_need_of_direction

he may end up paying more tax on his rental income

badmemory

Whilst I do not know much about this...  It may make more sense to have a larger mortgage on the rental property & less on your residential one even though the rate will be higher.  If things get financially dire in the future it is far better to have paid off the roof over your heads than a rental property.  But that of course implies totally combined finances.  So just thoughts for the future.

twiggy86

Thanks both for your comments. If me and bf were further down the line (as we've only been together just over a year) I would definitely be considering those things. However, as it stands it feels right to me that it goes towards his assets. We spoke about it again last night and he said that the reason he wants to pay my debts is that he will benefit from me having more disposable income - i.e. holiday, house projects etc. So I do get his thinking behind the offer! But his "compromise" that he proposed last night was instead of paying my debts off, he uses the money to complete some of the work on the house - the back garden could use a bit of work and the utility area/ downstairs loo specifically. So he benefits from having his home nicer, although it is legally my house. 

On that note, when I got home last night, bf was painting the fence in the back garden so that's starting to look better! He's done about half of it as was very hot (and he does also have this time off to look after himself so I'm not putting pressure on him to do anything so happy for him to take his time). He did get told that his dad likely is down to having days left, so I used the excuse of the nice weather to go to the pub for a couple of beers. He keeps insisting he's fine, but a few tears were shed over a pint which may have been my ulterior motive. I bought us one drink each and then he got the second round. I feel really bad for him not only because he's about to lose his dad, but he also has a golf weekend in Spain this weekend and he's said for ages that it will be now that his dad passes and looks like he'll either be right or spend the whole time waiting for the call regardless. We are also meant to be going out on Friday to see a comedian that I got him tickets for his birthday back in August, so hoping he still manages to enjoy it (if we go of course). 

Anyway back to money things... today is pay day so all shuffling has been completed as per the spreadsheet (accessed via my new google drive!). My student loan was a little less than usual, so there was a whole £8 extra in my pay! I am going to switch my student loan to direct debit as I am now in the final year of paying and apparently that ensures that I don't overpay at the end! 

I am going out for a bite to eat with a few of the people I previously used to go to circuits with - been ages (some years) since I've seen them, so that will be nice. I'm also possibly meeting bf at the hospital to visit his mum on my lunch break (I didn't think he would accept the offer of company) - hospital is only 10 mins away from my work but will have to pay for parking. So there will be some spending involved today. 

Bit and bobs for today...

• Make lunch to take to work 
• Shuffle money as per spreadsheet 
• Email new employer re equipment (didn't do it yesterday) 
• Email myself tickets to ensure I can access them on my phone
• Getting a lift to meet friends tonight 

twiggy86

Little update for the first third of the year.. 

Starting debt for 2025 - £8,805
Current debt - £7,490
Difference - £1,315

That means that I have paid 8% of my total debt (from June 2023 - although only £2 away from next 1%!) and 26% of my target for the year - which was to pay £5,000. The other number I track is the percentage of the total from the start of the year that I have paid - which is currently 14% (although only £5 away from the next 1% on this one too!) 

So I am slightly behind target but obviously have had to re-build my emergency fund and I have a plan to catch up! Also, when I start my new job in June I will be getting roughly £250 more per month, which will help progress further. In an ideal world I will avoid "lifestyle creep" and use all the extra for debt payments - then when I get the bonus next February, use that to clear everything. Oooo that last bit just came to me! I've never had a bonus before (other than maybe a small Christmas bonus) so that could be one way to utilise it and put this chapter behind me. Food for thought! 

Baileys_Babe

That all sounds very positive.

I've just done a couple of quick calculations, and if you continue paying £1315 a quarter and then add the extra £250 from your new job when that kicks in, you should be able to clear all the debt by the end of April 2026 without using your bonus. You may wish to send more to clear the debt quicker, or not send all the extra money from your new job and pay the debt more slowly. It will all depend on when your 0% periods end and where your priorities lie.

Good luck with whatever path you choose. There are many people here on MSE cheering you on.

twiggy86

Thanks for doing the maths @Baileys_Babe (hadn't even occurred to me to do that!) One interest free period ends in August (should be cleared in time) and the other, larger balance in November (won't be cleared). But you have definitely given me more to think about - including that I could have this gone in a year! 

Baileys_Babe

Glad it helped. Debt free in a year, will be a great achievement and then the money is all yours to do with as you please 😃

twiggy86

Tough start to the day as bf got a call at 5:20 to say that it will be today that his dad likely passes - was asking him if he wanted to go and say goodbye but not possible given the distance. He says it will be a relief when he finally passes as it's been a difficult year for his dad but no doubt will be hard for them all. I left bf continuing with the day he had planned but am waiting for a phone call. 

I had a nice evening with some old friends last night - we had dinner and a couple of drinks but waiting to see what I owe (as one of the guys paid the bill so need to transfer to him). 

I finally found the "error" in my spreadsheet that's been bugging me for months... realised I get a little bit of interest each month and somehow I hadn't spotted the transactions! Goes to show that i don't pay quite as much attention as I thought I did! Anyway, this month it was £1.36! I have transferred into the account where the bits and bobs get sent before I send to the CC (once it hits a nice round number of course!) as that account is now back up the "minimum" £100 I like to keep in there - and then anything above this gets sent to debts. I have also made the final payment on the table today! I never included that in my debt totals (as was "new" debt) but it feels good to get it finished and an extra £84 in the budget per month. 

Also had a message from new employer and the only things I need to buy are a desk and chair - could possibly even ask them to supply but don't want to push my luck before I've even started! I really can't wait to finish with my current job (another 6 weeks to go!) - bosses have always looked after me but feeling very ostracized at the moment. For example, one boss changing her calendar to "private" and I haven't seen her in about a month despite working in the same building! With everything going on in my personal life, usually she would have at least checked in on me but I guess this is to be expected, just surprised given how close we've been over the past 9 years. 

Today's bits and bobs (subject to change depending on how bf is doing)...

• Make lunch to take to work 
• Update spreadsheet 
• Work on knitted project at lunch 
• Bf building new tortoise enclosure which I will finish setting up when I get home - he also mentioned possibly finishing painting the fence today 
• Dinner from stores
• Collect parcel and get petrol on the way to netball 
• Park for free at netball 

birdsfoottrefoil

I’m sorry about your bfs dad. Likely to be a rough few weeks. 

That’s a bit rubbish about your colleague, some people can be quite awkward about these things. Maybe don’t know what to say if I’m
being kind! 

On the having to buy a desk and chair, one positive is that you can claim the tax back against it if it’s something you need for employment and your employer doesn’t cover it. Definetly keep the receipt! I’ve always done after the tax year end, it as there’s a really simple form online; noticed this year they ask for receipts! 

Really enjoy keeping up with your diary and thanks for commenting on reviewing your budget and it gave me a prod to review mine! 

rachmac3

Hi @twiggy86, I just came across your diary and saw you'd paid 8%, and I've just posted that I'd paid off 8%, then I saw wall/fence painting and tortoise enclosure and wondered what other similarities there are between us. I'll bookmark your diary and catch up with it properly after work. 
I am sorry to hear about your bad news though.