My Intentional Journey to Debt Freedom

Less_Talk_and_More_Action

I also can’t believe how many words I use sometimes.  If this is less talk (as per my user name) I will be doing thousands of actions 🤣🤣🤣.

L x 

Sun_Addict

Looks like you’re really starting to put plans together. I’m always evolving and learning budget wise it’s an ongoing thing finding what works best. The beauty downshift sounds great. 

MFWannabe

Less_Talk_and_More_Action said:

Thanks @MortgageFreeWanabe and @enthusiasticsaver.  

We would be able to finish off the credit card before the end of the interest free period even if we double up on the loan.   Mr L is ahead of me in the retirement stakes and he gets his state pension later this year which adds a good bit of income that we can use to accelerate our progress.  

At the moment we have about £1200 in a savings account that I am calling our EF.  I’m not using that for anything else unless I have to.   We are going to pay  £300/month off the 0% card.  That will be £4500 in 15 months.  That leaves just under £3500 to pay off in the remaining 10 months - the balance is just under £8000 to start.  I would hope that we could shift that sooner but even if we did £350 a month it would be clear.  

I think the loan is just something I would like to clear as quickly as possible.  We have pots for all the things I can think of and that will reduce excessive spending at times like Christmas. In addition we have car insurance, house ins, car maintenance , household etc so we have hopefully thought of most things.  

With the loan, I don’t have to commit to a fixed extra amount - I can overpay and gradually reduce the term but I would have the flexibility to not do that some months if there were other needs.  

Have I missed something obvious do you think?  I’m embarrassed to admit that I do have a really good income but have been just completely self indulgent in how I have spent it  and this process is to change those terrible habits or I’ll never be able to retire. Mr L is much lower maintenance than me.  I feel I am quite well- informed about finances but have never applied that to myself (in the same way I am informed about healthy eating……).  One of my nieces has a young child and she and her husband have a low income  but both work.  She is amazing with money and that makes me a bit ashamed to be honest. 

It’s really important to me to change and get this right - to make the most of the years that I am working and to have a happy retirement with the wonderful Mr L.  

I am so appreciative of you both sharing your thoughts and wisdom and I will be re-thinking all of this at the weekend when we sit down for our budget summit to review the month, consider all the advice and plan February.  Can’t believe this is only month one! 

L x 

Sounds like you have a very well thought out plan 👍
I too earn very good money but also have debt, even though it’s 0% I still want it gone 
Unfortunately I think I’ve been guilty of spending to new salary instead of living as if i had old salary 🤦‍♀️

Cara_

You’ve look as though you have a good plan and with the addition of the state pension you should start to see the numbers come down fairly quickly.

That’s a good saving on the toner.

I use Li*l face cream and I tried it because it has glycerin in which is supposed to be good for your skin. I've found them to be OK.

enthusiasticsaver

As SA says budgets evolve over time.  I am a fan of simplicity and we are early retired so have various different income streams all coming in at different times of the month and having pots means I do not have to worry too much about cashflow. Presumably you have set up pots for your dog and your car as vet bills and car expenses can often throw budgets out?  We have had to fork out £300 on tyres for DHs  car this month and my car insurance is due next month so I am very glad we have a car savings pot for our cars. 

So as I understand it now your plan is:

1. Clear your DHs card in the next few months and presumably the last few hundred of your card not on 0%
2. Overpay the mortgage which if nothing changes will be gone in 5 years?
3. Clear the card with the £8k BT over 25 months
4. Overpay the loan but if left untouched that would be repaid in 2 years anyway? 
5. Live within budget and save in pots for unusual expenditure and keep within personal spends allowance? 

Presumably you intend to build up savings after the loan and cards have gone in 2026 to help keep you going over the period between retirement and your state pension paying out or will you be directing all money to the mortgage to get it repaid before 2029? 

Have you worked out your number?  That is the minimum amount you would need in income to cover your outgoings each month. Check out the early retired or FIRE pension diaries on the pensions forum. That will help you decide whether you can afford to go in 5 or have to wait the 7 years which presumably will still be well before your state pension pays out. 

Blackcats

Our monthly personal spends allowance has really changed our spending habits.  If I want to buy designer skincare I can use my personal spends but somehow it doesn't seem so attractive when it takes a big chunk out of "my" spending money 🤷‍♀️  I surprise myself by not actually spending all my £100 most months - I'm the person who was always buying "bits and bobs" and never accounting for the cumulative cost of them.  Each month I was genuinely surprised at my increasing credit card balance, kidding myself that I didn't spend much until I saw the long list of entries on the credit card statement.  

twiggy86

It will take time to work out what suits you best - and what suits you best now, may not in a few months time! It's fine to re-prioritize and adapt! Whichever way you do it, anything that is paid off that debts.. well its paid off the debt!  

Less_Talk_and_More_Action

Thank you @enthusiasticsaver. I’m going to use your list in our first monthly budget review on Saturday.  We will review each part and also our spending, pots etc.  I have kept all receipts for groceries.  We move our grocery budget to a separate bank account and use that which we find really helpful. 

I have looked on the over 50s savings thread and the How much to live on thread.  Very interesting and we have looked at bits.  We are definitely going to downsize the house - timing to be decided.  At least 18 months away I think.  This process is also to embed good and sustainable habits.  In terms of when to retire - some of that might depend on job options. Reasonable chance I could move to a couple of days a week eventually so that might be an option as a step down towards retirement.  More planning to do in this area as we move through the debt repayment part. 

We do have pots for the dog and car - we have a good car although out of warranty but we’ve had it since new. I am the main driver and do a lot of miles but mainly motorways so get very good wear on tyres and other parts.  We have replaced tyres last rear and brake discs so hopefully low spend this year (barring nails in tyres etc).  However we are putting money in a pot towards servicing with a bit on top.  Insurance is a different pot. 

I’m going to take a leaf out of @foxgloves book and take notes from the meeting so we can review if we need to at a later date.   

I totally agree with you @Blackcats.  Although I’m not deciding on the skincare yet as I have plenty, but I can already see that I’m not going to want to part with £50 for 50ml of face cream when it’s “my” money.  

It’s so strange (and probably part of their business plan) that I am able to totally disassociate myself from spending on a credit card and just not see it as real money.  Another big sigh….. (lots of them this month 🤣).  

It’s definitely an evolving process @Sun_Addict and @twiggy86. Even in a month I’ve evolved!!  I’m not too rigid in my thinking generally so although I had some ideas when I started this, I’m not fixed on them and I welcome all thoughts.  

Thanks @MFWannabe.  I try not to think about the wasted money - can only move forward.  

Nice to see you Cara - I’ll have a look at LDL. There is also a range I have used before on Amaz*n which I really liked called Eclat. Organic and very well priced.  

L x 

EssexHebridean

I've gone for a bit of a combination of things on the skincare front - and I too am a Cl1inque fan, although I've never got on with DD moisturiser, oddly enough. 

I use the Moisture Surge - used to use it when they first did it and loved it - stopped using it when money got tight a few years ago and my skin definitely didn't enjoy any of the alternatives I tried as much, so  now I can afford it again, I'm back with it. Pretty much ONLY buy it on offer though. 
I also love TTDO Cleansing Balm - and am now stretching its use with the Ald1 Hot Cloth Cleanser which I'm finding very good - so I alternate each day. (Having said that I find TTDO also lasts really well - a little goes a very long way!) Also use a garnier micellar water for days when I only need a light cleanse (not worn makeup) OR for a double cleanse after using one of the alternatives - I do use that with reuseable pads but yes, they can be a bit "scrubby", of course I could say that helps to extend the life of the All About Clean exfoliating gel cleanser... I do sometimes use the gentle liquid facial soap too - got it free when I bought some other bits ages ago. Actually I think that was how I acquired AAC as well!  I think this really is the trick with buying the higher end stuff - make it stretch by finding good dupes to alternate with and to really make the offers work for you - I will shortly be buying a new tub of TTDO and a new mascara - but when buying the two I will qualify for a couple of their special offers I think. (And I have also noticed that it's possible to get a bonus version of the mascara with a travel one included for the same price as the usual one - I'll take that as a win!) I also have a £30 voucher to use that I got for Christmas - so that will help! Loitering on the brand website can earn you discount offers as well! 

Well done on resisting the urge to just try and clear everything and sticking with the plan to build savings for annual expenses etc - that seems like a big step forwards right there? That's the thing with this DFW lark - it's about avoiding the "boo and bust" mentality, learning to budget (and that's where the pots come in) and just taking the steps, one at a time. 

Less_Talk_and_More_Action

Thanks @EssexHebridean. I’m actually really interested in what people use on their skin.  I get on fine with DD moisturiser and have a fair bit to use up. I liked moisture surge but it’s not a must buy for me.  I found a great hot cloth cleanser in Superd*ug a couple of years ago so I might re- visit that when my Liz E stuff runs out (although have a fair bit of that as well ).  

Agree that continuing with the pots is a mental shift - I am def an all or nothing person although I spend more time in nothing mode than in all mode🤣🤣. 

Short post tonight as we are off round to friends.  Having a takeaway rather than go out which will be much cheaper.  And shock horror- coming out of personal spends 😁 xx 

L x