My accountability thread - diary of an in-denial credit card spender

HampshireH

Also you need content insurance if it's not built into your buildings insurance. If you lost everything it would be extortionate to replace

Sarahwithlove

I agree going through your statements would be a good help to see where you have been spending. 

I know you say the property in the city needs alot of work but maybe its worth getting a valuation to see what you'd get for it and then look at other potential options for a property. Maybe something smaller if you aren't willing to part with the idea of 2 properties. 

MFWannabe

Personally if I were you I’d sell the second property; pay off the debts and be debt free 
I’d also cut up the credit cards! 

Put the proceeds from the sale in a high interest account and you’d be in a very good position 
looking at your soa you probably spend around £600 per month keeping the house? Just to stay in when you go into the office? 

How often are you in the office? 

MissMaud

MFWannabe said:

Personally if I were you I’d sell the second property; pay off the debts and be debt free 
I’d also cut up the credit cards! 

Put the proceeds from the sale in a high interest account and you’d be in a very good position 
looking at your soa you probably spend around £600 per month keeping the house? Just to stay in when you go into the office? 

How often are you in the office? 

I'm meant to be in the office two days per week, but it's not at all enforced and no-one on my team does it, so I've only been in once in the last three months!  I just keep worrying if they change the policy to make us come in more often, that I would regret selling the house. And to be honest if feels like the only actual wise financial decision I've made in my life, to buy a house in a good area that will increase in value (hopefully).  That is the real crux of the matter.  

I have cut up the credit cards!  But I still use them to spend online.  I honestly think I need to burn them.  Not joking.  It will take some serious intervention.

MissMaud

So for an update, I have spent another £20 on diesel and £27 on groceries from my current account, and £21 on a takeaway on my Capital One credit card that was my go-to for casual spending.  I thought I had about £400 on it; turns out it was ~£1650 (!!) so I've moved that onto a 0% Halifax card.  I've joined the alcohol-free thread starting from tomorrow so that should help curb my spending I hope.

weenancyinAmerica

A spend should go on your SOA  - whether it is paid for in cash or with a credit card doesn't make a difference, it is still an expense. Be honest with yourself on what you are spending in each category - days out, drinks at the pub, restaurant meals should go under takeways or eating out or entertainment but should be listed somewhere on the SOA because you are spending it. You may also want to list the costs for the cats separately - insurance, litter, cat food, toys, flea meds, etc.  Personal expenses covers things like soap and TP, plasters and white spirits under medical - whatever you are spending. The SOA is for spends - all of them. That is the only way you will be able to tell where your problems are.

Scott_Weiland79

Random question here but are you doing anything extra too boost income etc?

Re going into the office I would only go in when you absolutely have too, if I go into the office its extra cost ie travel costs etc.

Re contents insurance personally I wouldnt bother unless you can click a good cashback deal like 50-60quid. Personally we don't pay contents insurance we have an emergency fund for that. Putting 20-30 quid in a savings account is a better option trust me, whats the point in having contents insurance you could pay hundreds for it over the years and never need it. Plus think of it this way if you put 25quid per month into a savings account and say you get an expected bill you have that money there then you can gradually replenish the account and your gunna earn interest. Win Win rather than lining an insurance companies pockets

Moneywhizz

If it is too hard to track all your casual spending, you could do your budget on your actual bills and set a realistic limit on other more flexible categories like eating out,  alcohol, entertainment. For example you could decide £100 a month for eating out, £200 for food, £100 for entertainment. You can then do your budget and see if you can actually afford that amount and adjust it if you need to. The key is to  separate that kind of spending money into another account so that you cannot overspend. When the money is gone, you have to wait till the next month before spending on these categories again. 

MFWannabe

Scott_Weiland79 said:

Random question here but are you doing anything extra too boost income etc?

Re going into the office I would only go in when you absolutely have too, if I go into the office its extra cost ie travel costs etc.

Re contents insurance personally I wouldnt bother unless you can click a good cashback deal like 50-60quid. Personally we don't pay contents insurance we have an emergency fund for that. Putting 20-30 quid in a savings account is a better option trust me, whats the point in having contents insurance you could pay hundreds for it over the years and never need it. Plus think of it this way if you put 25quid per month into a savings account and say you get an expected bill you have that money there then you can gradually replenish the account and your gunna earn interest. Win Win rather than lining an insurance companies pockets

Totally disagree with the statement reference contents insurance, contents insurance is not very expensive, approx £5 per month and covers everything in your home from tvs to carpets etc, that can amount to tens of thousands of pounds to replace should you have a fire or flood for example 

MFWannabe

MissMaud said:

MFWannabe said:

Personally if I were you I’d sell the second property; pay off the debts and be debt free 
I’d also cut up the credit cards! 

Put the proceeds from the sale in a high interest account and you’d be in a very good position 
looking at your soa you probably spend around £600 per month keeping the house? Just to stay in when you go into the office? 

How often are you in the office? 

I'm meant to be in the office two days per week, but it's not at all enforced and no-one on my team does it, so I've only been in once in the last three months!  I just keep worrying if they change the policy to make us come in more often, that I would regret selling the house. And to be honest if feels like the only actual wise financial decision I've made in my life, to buy a house in a good area that will increase in value (hopefully).  That is the real crux of the matter.  

I have cut up the credit cards!  But I still use them to spend online.  I honestly think I need to burn them.  Not joking.  It will take some serious intervention.

You need to remove your credit cards from online otherwise you’ll just keep spending on them! 

One visit to the office in three months? So you’ve stayed in the second home once in three months? That really doesn’t make financial sense. If I’m correct that keeping the house costs £600 per month then that one stay cost you £1800 😱
You could stay in a very nice hotel for a lot less money 
When did you buy the property? Surely it’s risen in value since then? 

You really need to rein in your spending even if you do sell the house otherwise you could fritter away money very quickly 🙄
Write yourself a realistic budget allowing for some spends money. 

Stop spending on the credit cards! Remove them from online sites 
Open another bank account with no overdraft etc and transfer your spends money in to it every month (leaving direct debit money in main account) 
Your house insurance is incredibly expensive even if it is for 2 properties, when is this up for renewal?