Strap in - we're going on a trip!

DancingTurtle

Hello lovely moneysavers, 

I have tried to start diaries many times and have struggled to stick with them, but .... I really want to try again, because life is getting on top of me and I feel like I'm wading uphill through some very sticky honey at the minute.

I've posted under a different username in the past about my marriage struggles, but I've moved on from all that now, so I've decided fresh username, fresh start.

Let me introduce myself ... I am an average mum to two wonderful children (6 and 11) and have a really lovely partner. My partner and I don't live together but may do in the future. For now, all my bills and debts are my own, and to be honest it's likely to stay that way even if our living situation changes. I've been stung before financially and don't want to share finances again.

Debt: I have a home improvement loan of around £4,900 that I pay down at £127 per month. I used this to improve our living space in 2022. It made a big difference for a relatively small cost so I felt it was worth it. I also have one credit card with a balance of £4,752, although £700 of that is my partner's from a holiday we went on. The credit card is 0% but I am still keen to pay both balances down as soon as possible. I've lived with debt for probably 10 years - it suffocates me. I'm 38 and wish I was saving for nice experiences, holidays and the future, but the reality is I'm not. Debt is just so easy to build up, and such a long, slow slog to pay back down.

Transport: I have a car (not on finance), maybe worth about £3k. It's old but it does the job, although sometimes the annual repair bills have me wondering if it's worth it. Fingers crossed I can get a few more years out of it yet

Home: My house is mortgaged. It was valued at around £300k earlier this year. I still owe £129k on my mortgage, so currently around £171k equity.

Pension: I pay in via salary sacrifice each month. I have about £23k stashed away, which is nowhere near where I need to be, but I can't afford to up this right now.

Savings: Minimal, although I am in year 2 of the Government's 4 year Help to Save Scheme. I save £50 per month and the government tops up the savings by £25 per month. Currently in there I have £750 of my own money, plus £375 of bonuses. The first bonus payment is due to be £600 and should be paid out in June 2024. My plan is to apply that directly to my loan balance. There should be a second bonus of another £600 in June 2026, plus my original savings of £2,400 so £3k due back to me in June 2026. I'd like to have my debt paid off by then so that money can be the start of a little nest egg.

My worries: My mortgage is going to increase from £450 to £750 per month as of April. This is terrifying me as the reality is I don't have £300 left at the end of each month, so I'm not sure how I'm going to make this work. Working more hours would be difficult. I'm already full time and there's no overtime available with my role, plus I have the children so couldn't commit to extra hours. Getting a second job would be very difficult for the same reasons. Am half wondering whether to halt my pension, or go interest-only on my mortgage for a while.

My income comes from work (£2,226), child benefit (£160), child maintenance (£140), universal credit (£150) and support from my parents (£250), so my net income is usually around £2930 per month. It doesn't sound too bad on paper but I find the last week of the month is usually a painful struggle. My outgoings usually go on childcare, food and general life.

Often there are additional costs that I find it hard to budget for (one son's birthday in August, one in October, a mortgage adviser fee of £250 this month, a repair on my car at £300 the previous month, a wedding invite which ended up costing in fuel, hotel, dress, gift etc, a broken dishwasher) and these are the things that really upset my month and leave me floundering in the last 10 days. 

Upcoming November spends:

Evening drinks with friends. Budget - £30

A Christmas market or two. Budget - £30

Must also start my xmas shopping! Budget - who knows

Here's to the start of a new journey that hopefully sees me pay down my debt and turn myself into a saver rather than a spender!

DancingTurtle x

DancingTurtle

I am currently £200 overdrawn, but I'm not too worried about this as it has been a busy month socially. Luckily ...

- Payday is just round the corner (Tuesday),

- I just sold a dress on Vinted for £12, and have another to list for £50. 

- I also have some ebay sales of £25 to package up and post tonight 

- I have more items to list on ebay

- I have applied for the HSBC bank account that pays out £205 without switching, so should hopefully get that in the next month or so

- My mum gave me a premium bonds certificate from 1988 that she set up in my name and has never checked since. Am hoping I'm sat on a goldmine! Awaiting my registration details to log in and check.

- I've just signed up to Amazon photos as I pay for Amazon prime so hoping for the £15 free credit in my amazon account to put towards Christmas

- I am also due to return an item to Amazon that I bought in error, so waiting for £10 back form them

- I should also get the Universal Credit Cost of Living payment of £300 in early Nov which will help to dig me out of a ditch. I will hopefully keep a little back for Christmas, and send most towards debt.

Spendless

Hello welcome. Don't worry about being 38 and sorting it, we're around 20 years older and sorting ours whilst we are (and have been for the past 5 years) supporting kids through Uni, with an eye on the clock till our retirement.  You're 2 decades ahead of us.

How long has the CC got left at 0% and what's the plan for when it ends?

Sounds like you need an emergency fund starting for the life's curveballs, like  broken electrical items and car repairs .

I'd also create yourself a socialising budget - then you know in advance how much you've got when an invite heads your way.

13thlegion

I know you'll be able to knock everything out of the park with the help here. Will be following.

For my own journey I found going through a whole year retrospectively and working out what all the unplanned/unexpected costs are likely to be was a huge help. I've then been able to put some away each month towards them (Xmas, birthday, mot, daughter's phone insurance excess). Now when they happen they don't affect the month by month budget. (Still stings to see that pot get emptied!). I've used a bank account with separate savings accounts attached like pots (chase in my case but I know others do it too) to make it easier to track.

Have you done an accurate SOA? If you don't want to share that's ok, just for your own knowledge.

Doris17

Good luck on your journey!

DancingTurtle

Spendless said:

Hello welcome. Don't worry about being 38 and sorting it, we're around 20 years older and sorting ours whilst we are (and have been for the past 5 years) supporting kids through Uni, with an eye on the clock till our retirement.  You're 2 decades ahead of us.

How long has the CC got left at 0% and what's the plan for when it ends?

Sounds like you need an emergency fund starting for the life's curveballs, like  broken electrical items and car repairs .

I'd also create yourself a socialising budget - then you know in advance how much you've got when an invite heads your way.

Thanks for the kind words Spendless. I appreciate it.

The credit card still has 23 months at 0%. I am hoping for the balance to either be paid off by then, or for me to move to another 0% interest card by then. I have had debt for a long time but luckily have always moved it around so have never actually paid any interest on it.

You're right about the emergency fund. I might try and build that up alongside paying off the debt, as something will definitely break or get damaged in the next few years. And the socialising budget ... yes! I do find I'm one of those people who is all or nothing but building myself in a buffer will be helpful

DancingTurtle

13thlegion said:

I know you'll be able to knock everything out of the park with the help here. Will be following.

For my own journey I found going through a whole year retrospectively and working out what all the unplanned/unexpected costs are likely to be was a huge help. I've then been able to put some away each month towards them (Xmas, birthday, mot, daughter's phone insurance excess). Now when they happen they don't affect the month by month budget. (Still stings to see that pot get emptied!). I've used a bank account with separate savings accounts attached like pots (chase in my case but I know others do it too) to make it easier to track.

Have you done an accurate SOA? If you don't want to share that's ok, just for your own knowledge.

Perfect plan - I definitely need to do the same. I think I've held back from this before as I just never feel I have any month 'spare' to be able to move into savings pots, but the reality is that if I don't, these unexpected costs crop up anyway and de-rail me!

I've done a SOA privately so I know now my main areas of issues are groceries, beauty products and treating the kids.

DancingTurtle

Today was not a good day spending wise.

I went to a halloween event with my partner and son. We shared a pizza, doughnuts and some soft drinks and that was £25, plus another £12 for the rides for my son. Tickets to the event were already £53 for the 3 of us, and it really wasn't that great or worth it. £90 on a few boring hours. Very disappointed with that really. It could have been £90 towards my debt, so I feel a little flat about that. I have realised I do get quite caught up in seasonal and holiday events, feeling the need to book onto events, see santa, do all the festivities etc. I need to get over that.

I also struggle with my partner, not being the father of my children. When we go to events, I end up paying for him too, usually entrance and then also for food etc. I need to stop doing that as it just pushes my costs up constantly.

DancingTurtle

The last few days have been ok money-wise.....

I went into the attic and spotted some old Pandora charms and listed them on Vinted. They sold within 3 minutes for £15 which is great, but did make me think I had maybe undervalued them. Never mind. Waiting for the buyer to confirm she has received them and will send the £15 from my Vinted balance straight to my credit card.

I've not heard much more about the HSBC Bank Account bonus. I did get a text saying they were looking into the forms of ID I submitted but that was on Tuesday. Nothing since.

The premium bonds that need investigating are still in progress. Weirdly I keep seeing videos and short clips saying I'm about to come into money. Coincidence?! I hope not.

 

No word from Amazon about signing up to the photos app yet and the £15 credit so I need to chase that up.

My Universal Credit Cost of Living payment of £300 came in. I put some towards my Gas&Elec balance at the minute.

I also applied for the Warm Home Discount today and was accepted so that means £150 will be topped up into my Octopus account between now and end of March 2024. 

It should be a fairly cheap weekend. I  am heading out for drinks with a friend tonight, but she is also feeling the pinch so we're going somewhere on the less pricey side and we are getting lifts rather than taxis. Tomorrow, I'll probably head to a bonfire if it stays dry so that'll be free as we'll walk there.

Spendless

DancingTurtle said:

Today was not a good day spending wise.

I went to a halloween event with my partner and son. We shared a pizza, doughnuts and some soft drinks and that was £25, plus another £12 for the rides for my son. Tickets to the event were already £53 for the 3 of us, and it really wasn't that great or worth it. £90 on a few boring hours. Very disappointed with that really. It could have been £90 towards my debt, so I feel a little flat about that. I have realised I do get quite caught up in seasonal and holiday events, feeling the need to book onto events, see santa, do all the festivities etc. I need to get over that.

I also struggle with my partner, not being the father of my children. When we go to events, I end up paying for him too, usually entrance and then also for food etc. I need to stop doing that as it just pushes my costs up constantly.

That's a shame it wasn't good value. I understand though esp with an 11yo you're making memories before the teen years start. . I recall my eldest at 11, we had fun that summer hols, the following year he was almost 12.5, had spent a year at Secondary school and wasn't  interested in the excursions I suggested doing! 

What about when you're wanting to do something cos it's half term or Christmas etc, you think of 3 different things, one free or low cost, one med priced, one splurge. Put the details on a spreadsheet (or pen and paper if that works for you) work out finances available  and see what is both affordable and likely to be best value. You might find you could do 2 low cost and 2 med cost for the price of 1 splurge. Or you might find the splurge is going to be such an experience, you'd rather just do that and then see if you can find some free events. 

I haven't sold on Vinted but daughter has. I think it can be a bit hit and miss tbh. I've known her have loads listed and barely sold a thing, I've also known her sell stuff  shortly after uploading! She calls it 'higher end car boot prices' (and where we are car boot prices are practically giving stuff away - fab for huge clear-outs in one hit but not for making a shedload of money) 

DancingTurtle

I like that idea Spendless. I think I have real fear of missing out. Social media is dreadful for bringing on the guilt of all the things you haven't done with your kids that season. I am looking at Christmas Wonderland places at the minute to see whats still available and won't break the bank

Vinted is great - would highly recommend! So easy to us