Finally going to solve this debt once and for all

abaka

I know I’ve been very dismissive of any advice I’ve been given here and I’m not trying to be a “I know better” because clearly I don’t. But I think I’ll take this advice on.

I’m going to set up a few pots for everyday expenses. Need to gauge what would be a fair amount into each pots

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/82132331#Comment_82132331

As well as my medical expense pot, I also have Emergency Fund, Groceries, Car Maintenance & MOT etc, House & Garden, Christmas & Birthdays, Petrol, Clothes, Holidays, Annual Bills. I know some people break it down even more and have things like Appliance replacement, Tech replacement etc or separate ones for house & garden.

abaka

Thank you so much!
I think I’ll go for Emergency Fund, Medical, Christmas & Birthdays, Car Maintenance and maybe a days out folder

Other stuff comes out of our joint account and there’s always been more money in that.

My plan for next few months is to only pay the minimum amount on the debts and divert the rest of the funds into my pots. Could also do with a Travel & Transport pot. Most days I take the car but occasionally I do take the bus depending on weather so would be nice to have a pot for that.

Now just to figure out what to put in them.

Whilst this will slow down my overall goal. I believe the skills and mentality change it will develop in me will be extremely beneficial of how I manage money.

I might change my mind on this tomorrow of course…joys of being bipolar and possibly ADHD!

I did though reactivate my old YouGov account for surveys. Done one today and I’m 13.1% of the way towards £50!

In the spirit of setting up budgets. I’ve started up my first pot! Medical expenses! At the advice of my wife, I’m going to start doing a 5er a day challenge. So £5 is in the medical expenses pot!!!

MasterG83

https://forums.moneysavingexpert.com/discussion/comment/82132331#Comment_82132331

Its easy, you divide the annual cost monthly, so if a service and MOT is £320 a year then its £27 a month into that pot. etc etc. No guessing needed.

londoner2019

Agreed. Look back on what you spent on birthdays / Christmas last year (as well as medical/dental, etc etc). Unless you genuinely think you can cut back on those totals, that's your number. Otherwise you'll just end up short anyway. No point in lying - be honest with yourself.

It's honestly such a game changer!

abaka

True once i get into the habit, I'll be able to guage better on the amounts needed but the car needs some work done at the moment due to a faulty check engine light (likely a faulty sensor) and potentially 3 new tyres needing replaced. So I'm going to put a bigger pot of money away for the car (We're lucky we've not had to do much with this car but we've had it for 7 years now and in the last year or two we're noticing we've had to do a few things with it which are costly).

I spent a fair bit of time setting up Savings Pots into my S/Sheet and opened and renamed savings accounts with my banks to "pot them"

Won't be able to start properly filling the pots until next month when i get paid again as most of my big expenses have already been made this month.

Have done my 5er a day and transferred £5 to medical expenses.

Makingabobor2

I agree with others there.You must calculate what you need. You can't just put any old amount. We put extra in our car maintenance so there is always money for the unexpected. We currently put £40 a week for car, £85 a week for medical ( we both wear glasses so need to cover that as well). Also forgot to mention we started a "new car"pot, as there will come a time when we need a new ( 2nd hand) car. Currently paying £100 a month to that, but want to increase it, as dont think its enough

Oh, and the birthday/ Christmas pot definitely cut right back on that. The best present you can give your family, is getting out of debt. We have 4 grandsons, but max I spend on them us £30 each. No body else gets Christmas presents, way too commercialised. Son & daughter get £30 birthdays only & that's it. Buy from CS's if possible, or home made presents. Max spend on Christmas food, is normally around £50-£75 ( join local butchers Xmas club & pay in weekly) including all meat, treats, etc. DH buys his own beer from his personal spends pot. If there's nothing in the pot, it doesn't get bought.

Tunnocks

Hello abaka, I see we have a few things in common! I think mood disorders are a massive factor in building up debt, it’s just so hard to control your impulses in the moment. The root of my debts is a mad summer I had in 2012 which I’m STILL clawing my way out of. It’s also difficult when you’re not feeling in control of your life and emotions to budget effectively. I’m jealous of your DFD for your student loan though, I still have 6 years to go. Enjoy a suspenseful weekend waiting to find out the deductions from your NJC backpay (I know I will).

abaka

https://forums.moneysavingexpert.com/discussion/comment/82133186#Comment_82133186

Haha I’ve already worked out my calculations and verified it with online payroll calculators!

But yeah, my latest revised debt spiral is deffo the result of a wild and uncontrolled 8 months last year.

abaka

https://forums.moneysavingexpert.com/discussion/comment/82132991#Comment_82132991

I’m trying to do. Tbh we don’t pay a lot into the car. Usually I’m thinking about what we paid last year and it’s no where near what we’ll be paying over the next few weeks. As I know this coming repair is going to be costly.

As for birthdays and Christmas. I will agree to disagree on that. Yes, I could skimp right back and pay of my debt but I wouldn’t enjoy that quality of life. For me, as long as the debt is going down. Then it’s a win for me.

As indicated by my above post. My debts are not a result of living a lifestyle I can’t afford. It’s the result of recklessness and impulses.

For example. I went to the gym once a few years back and decided to throw out every single item of clothing I had(right down to my shoes and socks) and bought an entire new wardrobe that would fit me after another few gym sessions. Guess what happened, I didn’t go back and then I had to go and buy clothes that actually fitted

I have so many stories of similar rash impulses throughout my life. I’m now dealing with the mental health and no I’m actually taking the debt seriously!