Busting this debt before 40

Chocolatefund

The first Sunday of the new year.  Going to try and keep on top of weekly updates here as I feel like I slacked a little last month.

Forgot to post my savings amounts in my last post, so I’m starting in 2025 with the following.

Sinking Fund £1513
Emergency Fund £2296

I’m going to continue with putting away £150 a month into the emergency fund and will keep this going for this year.  The sinking fund I won’t be adding to till my big yearly expense comes up in April, which is my car service and MOT.

Spending wise this week, I’ve spent £30 on petrol and £22 on a small food shop top up.  A nice low spend week.  I’ll probably need to do a big shop at some point next week, but I’m determined to eat out my kitchen cupboards before buying more food.  Got so much pasta stuff that needs eating but I’m so lazy when it comes to cooking.

I managed to pick up an extra shift yesterday as someone was looking for cover.  I had no plans this weekend so I thought why not.  Extra monies! 

I have a tiny SIPP with Vanguard, which will get hit with the new £4 account fee.  Boo.  So I’ve started the transfer process to Invest Engine.  I’ve not touched that SIPP for ages, so there’s only about £800 in it.  Not fussed that it’ll prolly take weeks to go through.  Will think about what I want to with it in the meantime.

Loving the snow at the moment.  Don’t want it to end.  Enjoying some quality me time on the sofa with the fire going and reading a bo-

Zzzzzz…

Cherryfudge

Being so near the 50% milestone is so exciting! Well done, you must be motivated by that.

I always get well behind in December and holidays where there are so many items bought. Have you gone back through the bank statement and accounted for each item? I know it's a huge job (and doesn't account for cash spends) but it's also finite so if you could do it this time around (i.e. December 2024's spending), you would have an idea what's being spent on Christmas. My suggestion then would be to put money aside each month, a twelfth of the total, and when it comes to December this year, just spend from that pot for gifts/food/entertainment. You could even save it into a regular saver account so you get a decent rate of interest.

Chocolatefund

Goodness. It’s been nearly a month since I last posted.  So much for trying to keep on top weekly updates.  Not making that promise to myself again.

Work has been crazy.  Lots of travelling.  I’ve been away for a lot of this month, and that’s probably how the time has just slipped away.  However, I think cause I have been so preoccupied with work I’ve had no energy or time to actually think about spending money.  All my friends and family are broke this post Christmas month so nobody actually wants to do anything, which is fine by me!

And thus the reason I’ve come in way under budget this month. And by this month I mean January;
Food - £195
Petrol - £71
Eating out - £52
Misc - £24

Total January spends = £342

Quite under my monthly spend budget of £450, which I am super happy about.  Was debating pushing a super low spend January, but knew it wouldn’t be realistic as I knew I would be getting lots of travelling food and coffee.  I am on track to overpay my loan by another good amount.

Speaking of which, the interest rebate saga continues.  It didn’t come through till the 24th of Jan, for the 1st Jans overpayment, eeesh.  I guess I’ll see it as looking forward to updating my signature late in the month.

However, I have to keep myself accountable.  I had a big money saving weak moment.  I ordered a new smartphone.  Damn S@msung and their tempting emails giving me good trade, key worker discount and vouchers…this is for the new S25+. Currently have an £21+ so tried to justify to myself that it would be worth it.  

But while waiting for the phone to be delivered, I changed my mind.  It was totally an impulse purchase and I love my current phone and it’s still going strong.  I wasn’t able to cancel the pre order in time and it was delivered to me yesterday.  I’ve requested a refund and the phone is still sealed in its box.  Once I get the returns label, it’s going back, saving me £548.  My phone will keep good for one more year and once I am debt free I’ll probably upgrade next year providing the battery holds out.  It can be a new debt free phone celebration.

Ive also decided to sell one of my camera lenses.  This was going to cover the cost of the phone, but now I’ll be able to put that money to much more needed use.  I’ve arranged for a collection of this next Thursday.

So a very good low spend January, almost ruined by wanting the latest shiny.

Tomorrow, all my bills will come out then I’ll do the great monthly money shuffle. 

Cherryfudge

That's a great January! You could even set aside the money saved to form your 'treat' budget and see how long you can make it last, if that works for you.

And well done for sending the phone back. I love a new phone but they do cost rather too much. Of course as soon as the next model comes along, the one you just sent back will drop in price but still have the same features, so just by waiting you get a saving. And the longer you can wait, the more amazing the next model will be. I upgraded a few months ago, not to the newest model but to the best version of not-the-latest, and it's such fun, and has so much more space than my old one, which was good in its time. I'm getting practiced at this deferred gratification!

I hope the monthly money shuffle is inspiring!

Chocolatefund

Thanks @Cherryfudge  And indeed the great monthly money shuffle has happened! 

Sent an overpayment of £1100 to the loan. Bringing it down to £9,816!

Officially over the 50% mark! Yay!!!  Feels good to get into four digits!

I’ve been playing around with some figures over the weekend.  As long as I can overpay by £1100 and continue to receive interest rebates, my last overpayment should be August.  With the final direct debit going out on 1st September.  So fingers crossed baring any unforeseen disasters, that will be my debt free date.

I’ve worked out that If I wanted to bring it a month forward, then I’d have to overpay by £1350+ ish every month which is too tight.  Once all my car stuff comes out in April/May then I’ll have to contribute towards the sinking fund again.  However, there is a pay rise coming hopefully spring or summer so I’ll see what the numbers are like then.

Decided that it’s not worth one month earlier and instead I’ve started up a ‘Home Fund’.  There’s still bits and pieces I want to do to the house, so any surplus monies can go between this and my S&S ISA.

Also worked out that so far the interest rebates have saved me £1536.  Reckon there’s still more to be saved yet.

Chocolatefund

The first week of Feb has just flown by.  Had a very productive money week.

I have a S&S ISA with HL that I’ve been toying with moving for a while now with about 2k in it.  I finally decided to cash it out and move it into my SIPP over on Inve$t Engine. (where my V@nguard sipp is currently in the process of being moved to). I have an account with T212 that I’ve decided to use that for my main ISA accounts from now on.  

As I’ve earned some into the 40% tax threshold with my extra shifts, moving it into my sipp will let me claim higher rate tax relief, hopefully a few hundred, which will be awesome.  I’ll do a self assessment this summer when the final earnings are out for this tax year.  Never had to do a self assess before…eeek, part of the financial learning curve I guess.

In other money saving mental strengthening, the phone that I ordered, and the case from Am@zon to go with it have officially been posted back.  Took me a couple of attempts with S@msungs online chat to get a shipping label…I’ve heard thier customer service left something to be desired, but lord that was hard work.

Hopefully I’ll get the refunds before the 28th of this month as that’s when my AmEx billing cycle is due.  The camera lens that I’m selling was also collected earlier this week.

Ive signed up to survey sites YouGov and Pr0lific for some extra pennies.  I had no waitlist for Pr0lific, reading on these diaries that some had to wait a while.  Hmmm, wonder what I selected to get in? 

Sold another V1nted Item for £4.  Need to get around to uploading more stuff.

Spending wise I’ve spend £43 on food since the start of Feb.  A good low spend week with six NSD.  I’m going to aim for a ‘Frugal February’ since it’s a nice shorter month.  I’m away for a few days next week with family who like to feed me, so I’m hoping that I won’t have to do another food shop till after next week.  I will have to top up the petrol tank I reckon.

Phew…thats a lot to talk about for whoever reads my rambling.

Sarahwithlove

Well done for sending the phone back. I ordered the s23 when it first came out I lasted about 3 months was just too heavy and gave my hand ache lol. Back to my s21fe and I love it. Battery doesn't last quite as long but I just make sure I have my power bank if I'm going out for the day 

Chocolatefund

Sarahwithlove said:

Well done for sending the phone back. I ordered the s23 when it first came out I lasted about 3 months was just too heavy and gave my hand ache lol. Back to my s21fe and I love it. Battery doesn't last quite as long but I just make sure I have my power bank if I'm going out for the day 

Funny you mention that as I originally ordered the S21 Ultra way back when.  It was so big and heavy that I changed it for the S21 Plus instead.  It’s been great.

Chocolatefund

More than halfway through February.  Had a decent spending week.  Just £47 spent filling up the petrol tank.

I’ve received the refunds for the phone and case. Yay. There is a £6 return fee, but it’s a tiny price to pay.

Other than that, not much else to report money wise.  Currently staying a few days at family, which helps with the food budget.  

Chocolatefund

I’m so done with February already.  What’s with the rain and stormy weather…again?  I don’t even care about summer at this point, just give spring and some milder weather!

Been to stay with family for a bit to help them out as my dad was in hospital for a bit for planned surgery.  He generously gave me £100 as a thank you and to cover petrol costs as I’ve done a heck of a lot of driving in the last couple of weeks. 

When I got back home this week, I had to do a biiiiiig food shop as I literally had nothing in. Came to a whopping £91….eek.  However, I didn’t do a food shop at all last week and I’ve got enough to keep me going next week as well.  Might have to top up milk and bread before pay day.

Went to a hardware store this weekend to buy a squeegee mop and some picture hooks totalling £14.  Did a spring clean of my house yesterday to discover I don’t seem to have a mop anymore… Hmm.  Actually went in and only bought what I intended to buy which is a win.  Easy to spend way too much in those places.

My spending account is looking very good at the moment.  £255 left till payday for me which is next Friday.  I’m away on Monday so might get a coffee/food out, but other than that I hope to not spend anything next week.  This means hopefully I can divert my money not spent towards the loan.

Had confirmation of my camera lens sale, which is going to land £730 in my account next week.  Need to have a think how I want to divvy up this extra. I’m starting to get house reno itch again…still got doors in my house not attached to their hinges.  But at the same time I want this loan GONE.

Speaking of loan, the interest rebate came through of £187.  This now brings it down to £9,628.  . Excited for next overpayment as it’s potentially going to be BIG.  Spending far too much of my free time on debt payoff number crunching.

Bring on payday!!