Debt, Endo and Reno

birdsfoottrefoil

So the forum tells me today is my one year anniversary. So it’s probably time for a bit of a look back and forward.

Negatives:

- I have increased my debt by about 5K - not great to admit it. However this has primarily been costs on the house and a few dental/car etc disasters along the way which has limited my ability to pay off more. Definitely need to prioritise saving an emergency fund once the house is let.
- House is still not finished
- Down to no savings this month.

So that all sounds like there’s no progress or doom and gloom. But I think without the diary I wouldn’t be as close with the house and my debt would have been much worse.

Positives:

- House is nearly there!!!
- Roughly 4.5K of the debt is on necessary house spends ie new bathroom, boiler problems and flooring. I think I’ve had good value on this and the extra debt hasn’t just been coffees and clothes. Admittedly this should be better as I’ve been paying off as well. So really this that’s an extra 3K….. that I’ve spent and paid off. Not good.
- Having a diary and recording my spends in a spreadsheet has made me realise how TERRIBLE I was with money. Was routinely spending 1k plus over my salary each month with nothing to show for it. This is now much better, still some over spends like last month and December but generally I’ve learnt to budget. I know that sounds ridiculous for someone who’s lived away from home for 14 years, but I clearly had no clue.

Looking Forward:

- I’ve got a deadline of mid July on the house so it HAS to be done, I’ve painted once set of flooring upstairs last weekend and this week. So need to get the other done this weekend/next week. I’ve got a fairly low key Birthday party to attend on Saturday and a hospital appt, so I’ll eat mark some evenings next week as well. The BF was working away this week, so I should have more time next week as he can make supper and walk the dogs some nights. 

- Keep on with the spreadsheet.
- Make sure I’m not just spending what I pay off
- Build some savings, also have 2 pots one for emergencies and one for presents/a holiday.
- Once it’s let stick to current budget and over pay!!!
- longer term I’d like to retrain as a nurse…. Need to be letting the house out to be able to go back to study. Definite motivation!!!

So not the greatest but I think things would be much worse without this. Also aware that if I’d been better and more honest with myself about money pre-Covid I’d not be in this situation now and would be in the position where I could have nice holidays and overpay my mortgage. 

twiggy86

I wonder if it's worth you working out exactly how much you've spent on the house and if this will help with your motivation? For example, your debt may have increased by £5k but you've spent £10k on the house meaning you've managed to cash flow £5k worth of work whilst also maintaining life? If that makes sense! I did it as I felt I hadn't made as much progress as I'd have liked when I was solely looking at the debt figure, but when you look at the bigger totals it doesn't feel so bad. 

However, even though your debt has increased it sounds like you are actually in a much better position - as in you know where your money goes and have a plan! So well done!