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SparFuchs' Debt Free Double-Life

SparFuchs
SparFuchs Posts: 17 Forumite
10 Posts Name Dropper Photogenic
edited 15 January at 7:18PM in Debt free diaries
Well I'm finally jumping on the DFW wagon. Very long term MSE member (by not a frequent poster), but my old account revealed a lot about my 'old life' so I wanted a completely clean slate.

My debt free journey is quite modest by DFW standards, with a grand total of £2037 on one credit card (14.88% interest), but the bloody thing has been hanging around for a long time, with me paying the minimum payment of around £50/month until recently.

Despite working for over 20 years I seem to accrued absolutely sod all in terms of savings. I did have a house and a joint mortgage with an ex partner, but walked away from that relationship and old life with nothing financially to show for it (I now live in my self-converted van).

The good thing is my outgoings are minimal compared to most people, but my income is also sporadic and until a few weeks ago I didn't have a budget. I just didn't know how to budget with a variable income so I just spent the money when it came in, then tightened my belt when months were a bit poor.

Feeling much better now having learned how to budget with a variable income, have started a spending diary, created a budget and feeling a lot more in control of my money finally after 20 years of it slipping through my fingers.

As for the debt, well most of that came about from my very old pony who was costing me a small fortune to feed (I'd had her since I was a child). Pony has since died last year aged 35 bless her. It all happened whilst I was dealing with the relationship breakup, moving into a van, and having a period of very little money coming in.

I currently have my DD set up at £80/month and I'm throwing 10% of all my income straight at the card. At the same time I'm saving for an emergency fund and 2 sinking funds for my van tax and insurance.

Anyway if you got this far, thank you for reading. My story is a bit of an unusual one but I thought it would be a good idea to start this diary to keep myself accountable and motivated.
DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52

Comments

  • Sorry to hear about your pony, she must have been so loved and cared for to reach that grand old age.  Sounds like a horrid year last year, hopefully things will be better this year.

  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    Thank you :) Yes she was so loved, I actually had 5 of them at one point with my sister, but they gradually died over the years and she was the last one. They were a huge part of my life for over 20 years. However I now have another chapter of my life, and feel so free of responsibilities and have more money for myself, so it's not all bad.
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • MissRikkiC
    MissRikkiC Posts: 1,378 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Happy new diary and happy new life by the sounds of it. How exciting :)
    Follow here for the daily life of an ADHD mum with 2 children and a new mortgage to pay

    https://forums.moneysavingexpert.com/discussion/6570879/life-in-our-forever-family-home-and-the-mortgage-that-came-with-it#latest
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    @MissRikkiC Thank you :)

    Ebay sale £22 sent straight over to CC ✔️
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    Just received a payment, so 10% sent straight over to CC (£34). The rest of it now goes into my 'Reserve Fund' which is a savings account linked to my usual current account. That accumulates and I then 'pay myself' my budget at the start of each month. So simple really but I had no idea how to do this until mid December!

    Also, I now have a signature, so that's exciting!
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    Another £35 sent over to the CC. I moved my direct debit to the 2nd of the month to make things easier for budgeting. However this means I've gone about 6 weeks without a statement (it's come through now) so I've had £44.78 interest added (normally it's around £25) so that's a bit of a kicker. I will keep having to adjust my signature to reflect this interest being added.

    Current CC total is now £1956.97
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    edited 3 February at 3:42PM
    The £80 DD came out yesterday. Today I also paid another £30.

    Just been reading 'The Richest Man in Babylon'. I'm very into my personal finance / investing books at the moment. 100% recommend it. One of the lessons you learn from this book is to always pay yourself at least 10% of everything you earn. I had been doing this but then changed course and sent that 10% to my CC. 

    Having read the book, I'm now going for the suggested approach: 20% of everything I earn to the debt and 10% to myself (going into my S&S ISA). I then have 70% to live on (budgeted).

    Let's see how this goes. Best thing is that once the CC is paid off I'll have that 20% to either invest or use to save for other things.
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • Sarahwithlove
    Sarahwithlove Posts: 3,116 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    That sounds like a good plan. Though not sure how well would work for me. Can you get any of the debt moved to a 0% card? 
    *Dad loan - £5300 - £5900
    *Virgin Credit Card - £3552.50 - £1500.00
    *Natwest - £1828.35 -£1166.00

    *Total debt - £8566.00/£10680.85*


    Savings
    *Savings - £3000/£3000
    *Emergency Fund - £500/£1000
    *Mortgage Overpayments - £21/£950


    New diary- https://forums.moneysavingexpert.com/discussion/6474943/the-three-cs-coffee-clothes-credit-cards/
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    Thanks for dropping by Sarah :) I'm lucky that I only have to look after myself, so it's quite easy to tighten my belt to get this done. The 10% thing many people can have a go at though. If it's gone the second you get paid you can usually just work around with less money (I fully appreciate that some people are having a really tough time and this wouldn't be possible, but anyone who had low / no debts should give it a try).

    Unfortunately I've tried the eligibility checker and it doesn't look likely, or the credit limit would only be a few hundred. So I'm determined to just shift it ASAP.
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
  • SparFuchs
    SparFuchs Posts: 17 Forumite
    10 Posts Name Dropper Photogenic
    edited 5 February at 11:53AM
    Just sent another £38 to the CC, 20% of what I got paid. I'm having a run of good work which is paying quickly at the moment. No idea how long this will go on for but that's the way it is. 

    As I mentioned before the whole concept of budgeting is new to me (well I knew it was a thing, I just didn't do it). I have a savings account where I pay all my income into after the 20% CC payment and 10% savings are deducted. I call this my 'reserve fund'. To get over this feast and famine cycle I've been doing for years, I'm trying to get 2 months ahead.

    Current budget dictates that I need to 'pay myself' £603 per month for all my outgoings. I currently have my savings goal on Nationwide set to this £603 which is great because I can see a totals bar of how much I need to reach before the end of the month. I currently have £319 there and plenty of February left to get the rest. Then on the 1st of the month I pay all my bills out and start again.

    There are some things which I haven't budgeted for such as upgrades for my van, I will just pay out for these when the reserve account starts looking healthier (a side window will be a nice addition but costs about £200).

    Anyway that's all for now, I've gone from clueless to a total budget nerd in a very short space of time! But I feel like I have so much control over my money now.
    DFW | Starting debt in Jan 2025: £2037 | Current debt: £1773 | Debt payments in 2025: £309 | Interest added in 2025: £45

    Cash Envelope Challenge #20 | £19 / £1378 | Week 4 / 52
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