CrazyBee wants to be Mortgage Free!

Chieveley

Morning Bee, how are you getting to work? New lodger working out ok?

CrazyBee787

Chieveley said:

Morning Bee, how are you getting to work? New lodger working out ok?

Hi Chievely, MD has lent me her car and new lodger is great thanks, he is barely here and doesn't use any of the facililities which I hope will change.

Have a wonderful eveningXX

Chieveley

Bee, your mum is a gem. Long may she  continue.

CrazyBee787

Chieveley said:

Bee, your mum is a gem. Long may she  continue.

Yes, absolutely, she is an angel, she even offered to fill the tank which I declined! God bless her XX

CrazyBee787

I have officially purchased a car it cost me £7350 out of that I did have £5701 from my insurance claim and I have transferred £420 out of the £1000 on credit card over to 0%. My new signature is as follows: - 

New Missions to take me into the New Year 2026!:-

1) Clear CC2 first £624.46
2) Pay SFD back £1440.47
3) Pay SFD back £1000.00
4) Pay MD Back £649.00
5) Pay back 0% Interest now standing at £2223.78
Total debt: - £5937.71

I have put the debt in the order that I will pay them off:-



As you can see I am aiming my target at the biggest concern first, clearing the 26.5% interest debt first, which will I hope be wiped after this month and not accrue any interest. Maybe I should be posting a diary on the debt free wannabe thread board, but I will stay here as my entire approach is to hammer down the mortagage in the long run. I have decided that after this debt is cleared I would like to book a holiday so I will need to save for that next, then I think £10K on the EF, then Mortgage - but I am quite a way from that just at this moment lots of things have to happen to make sure I stick to this like glue.

For example: -

I need to stick to £400/£500 (5X grocery week month) cash for spending on groceries and fuel and pocket money each month.

Also I am ever so hopeful nothing else crops up, expenditure wise as I would like the debt to be rid!

The following is the outlook for the month ahead: -



The above wages are if I get a tax break, really I am not sure what I will get?! Actually I could look at HMRC...Nothing on there yet, I'll check again later in the week. Even if I don't get the tax break I will still be able to clear CC2. However it would take longer to clear all the debt and I won't be in a position to clear it as I have predicted which is that I will be facing the CC1 0% by January 2026, it will take the rest of this year to clear down the rest which is quite good going if I can do it. Which I have done before but I have never faced such a big challenege before. As long as it is always going down, but I really want to do it in the time frame I have set.

RedLipstick

Hi Crazy! Glad to see you're settling in the new job and things are going well! Well done on all the great feedback you're getting at work! Sorry about the car, hope you're doing alright!

I've noticed a few times, you like to budget with the money you don't have and then, when things go side ways, you use the CC to bounce back. Maybe worth to start budgeting with the money you have in hand at the time? E.g. what do you need to pay for now until pay day with the money you have (and exclude the CC!). Then, when the salary comes, you can again sit down, run through the numbers and make a more realistic budget. If you're into pen and paper, kakeibo is pretty good way to monitor your money. There are 4 main categories (needs, wants, culture and extra), mine has 8 as I keep my annual bills, OPs, reno spending and savings separate and on the plan as well, makes more sense for me when I run my yearly totals, reno especially tends to skew my spending.

Just a suggestion though! It's fantastic news that you're on your path to pay off that CC2. Cut it after and close the account, this nasty interest is not doing any good. Also check if your cash transfer from the CC to pay for the car was 0%, some banks add a fee, shouldn't be much if you're only transferred £420 but good to plan for that just in case. 

Also, don't be too hard on yourself. If you don't get to pay off the CC2 from the upcoming salary, it will be £312.23 from two salaries (plus interest!), and you get some breathing space. I'm sure you will have some extra expenses coming as we're getting closer to Christmas, there will be your lovely family to treat, there will be gifts to buy, there will be random stuff to buy with once a year savings we cannot miss, etc. I'm sure you'll find something random to spend your money on too! Do focus on paying off the debt but also remember to live life in the meantime. 

If you don't get a tax rebate straight away, you can contact HMRC via chat and they will sort it out for your next salary. It's done much faster via chat vs phone.

Well done again on the past few weeks, sounds like everything is going in the right direction! xx

CrazyBee787

Thank you @RedLipstick you are always very helpful and kind in your posts. 

I know I am terrible with money sometimes I think I just need to feel I have enough to buy the odd thing on amazon and on snacks, however I could easily get carried away if I allow myself. I have set aside £400 for each month which is enough for 2Xgrocery shops @ £70 1XFuel @ £80 and £45 per week spending money, however I am not sure I am going about it right. 

If I were to track my spending a lot of the time I am reaching for easy snacks, sweet and high fat high sugar etc. Take out. Even when I was without a job I still somehow managed to keep some of those habits, I think I need to go back to £50 per week grocery shop and include some high protein snacks that I can prepare when I am at home and only when I go to the office I allow some naughtier behaviour.

Everytime I shop I am constantly changing what I have it is like I am never happy, Like I want to keep to a budget but also spend more at the same time.

I know if I had the food in that..........................I'll have to finish this later I am going to work soon, I'll pick it up this evening. Have a good day allXX

I have been thinking, In the last week I have spent the best part of £150 on food, admittedly I have been out of control somewhat, but I cannot afford that pace of eating, not if I want to get the debt down sooner. I have just put an order in for groceries, I think it has enough stuff included that comes to £65 (just under) if I can stay in more and avoid shop buys I think I will be okay, office days though will be harder to get through because I won't be able to do toast, fish finger sandwich etc. However they have a microwave and I have ordered popcorn for a little treat and cheap! (£1.75 for 3 bags) that will do for two office days bam! and what a treat. Maybe I will do toasted egg on toast for those two days also yes that would be good, it will push the shop up but worth it if I save £20! Yes I need to do smart shopping, I am not concetrating on dieting purely getting my meals into better shape, not perfect, but no too much cruddy stuff. Not ultra healthy either just food.

The £420 has a 3% fee, but it is worth it to get my expensive debt in shape. I will look into kakeibo thank you.

I never factor living my life, because I feel I just want to get to the end zone which is pay off mortgage but this never sits well when I live my life, I do like to get new clothes now and again, and something from amazon, I do spend time with MD but she has been buying everything lately it would be good to share this. But tbh I would rather stay at home, however I know she likes to go out and being disabled it is my duty as her daughter to take her out and I mostly enjoy it however I never get any closer to paying off my mortgage only fractionally. Saving a big EF will take a long time, I really just want to be in control of the money and not let it control me. Sorry having a urghh day today!

Maybe I need to set my sights on a different end date for the debt to be gone like you suggested, if I give myself a year and use purely the lodger money to pay this off and keep all my work earnings for myself, and If I have money left over then that is a win. But I can still plan to be more smart with food, so I am prepped well.

Thank you again, I am off to look at the figures to see what would be a smarter plan of action for my budget and look at kakeibo. Have a lovely eveningXX

CrazyBee787

I have had a think and I have decided to not get a car for the time being, pay off debts and save instead. MD is lending me her car, I don't know if she is happy for me to keep borrowing it, if not I will go to work by bus and walk. I just can't face having a huge debt. Also I don't like how easy it was to lose my car, they are expensive and costly and quite frankly I don't want the bother of it right now. I don't use it for pleasure I do use it to help and see MD and SFD, other then that I get my groceries by delivery. MD even said she is happy for me to have it a bit longer, it is a bit big as it is for a disabled person to be transported, but I manage.

Now a part of me is a tiny bit worried about the money coming back to me, as the lady performed a refund however it still hasn't come back to me, so very worried actually  Not so worried they have a cancellation policy which means I can cancel within a certian time frame by writing which I have done. So 'Very Loved' is not coming my way...sadlyXX

RedLipstick

I think the idea of not getting the car is good. For comparison, I also don't have a car and as long as I can get to work fairly easily on a public transport without too much of a walk in case of a bad weather, car is an expense I just don't bother with. It's not like a subscription I can pause when I don't use it, or want to save some extra money. With you working from home for part of the week, you may not even miss it much. Little podcast or book/kindle will keep you going and entertained on your way. Lots of people on their phone too, playing games, checking news etc. Plus a bit warmer jacket as temp differs to what you'll be used to commuting in a car.

Keep reminding yourself of your priorities and keep the eye on the prize. You have shared many times that you want to secure a new job, get rid of debt, and get an emergency fund. It came to a point where you had to pause your mortgage payments. Grey area, but not too dark yet. You're now in full time work, you also have a regular, I assume tax free income in the form of the rent money - be smart about it, and "make hay while the sun shines". Get rid of the debt and start saving. Stop spending money on stuff you just don't need or you don't benefit from. Times are uncertain for everyone, you've seen yourself the job market is pretty tough, use this time now to work on protecting yourself. Also something worth thinking about is how do you see yourself in retirement. 

See regarding your food shopping. I know this may sound like a crazy suggestion but maybe it would be worth looking into food delivery service like Gousto, especially if you're only feeding yourself. I used to get 3 meals for 2 people, meaning 6 dinners a week. I've learned quickly portions were on the smaller side for my own preference, but I'd go and get extra baby pots, veggies, or bags of microwave veggies. I'd manage to get all my dinners sorted for £50-60/week plus breakfast bits (milk and iron/vit supplemented flakes though, not much). The cost was probably quite extravagant few years ago but with your weekly cost of £150 on food (that's over £20/day on just food) I think you could make some decent savings and have a nice variety. I've collected quite a big book of their recipes and then I just cancelled my subscription and started shopping for my own stuff for whatever I've fancied during the week. Still use it to this day. There is also an app I've recently learned about, Cherrypick. You pick your meals, they automate the list of ingredients and shopping/delivery goes via Sainsbo (apparently you can change to other supermarket as well). You can pick what you already have in the fridge/cupboard and it's not getting ordered. Only downloaded it few days ago but it looks decent if you're after variety. Some colleagues at work are very vocal about this app. Also, my favourite TamingTwins website, if you're into slow cooker/one pot meals. Paid less than £10 this weekend for all the ingredients to make a batch of 5 lovely dinners. I'm in the middle of a reno so don't mind eating all the same for few days as long as I don't have to stand in the kitchen for too long. 

Also, I assume you don't want to spend all your salary every month on bills, food, and debt? With nothing to show for it, nor savings to take you through hard waters (keyboard etc doesn't count). 

We're in the best place if you need some motivation, this forum is gold. There are some good books too. There are a few I go back to every year to get me in the right headspace and remind me to stay on track. Tons of post-its. I'm messy too. I save a bit, have all the big MFW dreams and then I go to plan another next best thing I can spend it on instead, so don't think you're on your own on that spending front. It takes some mental gymnastics for me not to spend money too. You need to get a grip on the debt though and get rid of it first. It's the money you have spent already on more or less important things, don't add to it. But I know you can do it, you just have to put your mind to it xx

Have a great evening, Wednesday tomorrow, we're half way through another week! xx

CrazyBee787

Thanks for offering support on this If I stick to my guns I will have a cash pot to pay back SFD & MD and still have money left over and lower monthly bills, I did enjoy tootling around in a car, MD said I could borrow hers for the time being anyhow, and if she didn't I could get a bus to a few places, it will be different to get used to but possible. What I hate about the car right now is that there are no longer any affordable options out there for a new car, they are either rubbish and expensive or better and even more expensive, I don't want to forever be saving for a car!

My friend Sam told me about those meal prep services, tbh I am not a fan of cooking everynight even preparing I like it very simple! So I am not so sure. But I will look into it still thanks, also you have said some names I have not heard of, so I will investigate, Thank you.

Today I have redeemed a £5.00 voucher for M&S from Microsoft, I do love their rewards! which I will use to get milk and ?

I am interested to know which books you can recommend, I love to get a bit of inspiration and motivation 😉

Have a lovelly day todayXX