Becoming debt free and saving for the future.
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DebtFreeMonkey
Posts: 213 Forumite
Recently realised how much of a tool I've been. I'm in £12,000 of debt for no other reason that being impulsive, wasteful and superficial.
Starting this week, I've created a budget (I'm sure it'll need to be adjusted over the coming months) and it makes all the difference knowing where my money is going. That's how I know that this debt is completely unnecessary.
I use an app to track my money and I have one specifically for my weekly food allowance. Deducting each purchase from it makes all the difference! Its amazing what seeing where your actual money is going on in real time and paying in cash can do.
I'm currently 26, working a close to minimum wage job and by the time I'm 30, I want to be on the opposite side of the fence. It's completely doable. I have no children and so on so just knuckling down, tracking every penny and remembering my future goals should get me there.
I'm creating this diary to hold myself accountable. Let's see where I can be this time next year with a bit of focus, cutting back and discipline.
Starting this week, I've created a budget (I'm sure it'll need to be adjusted over the coming months) and it makes all the difference knowing where my money is going. That's how I know that this debt is completely unnecessary.
I use an app to track my money and I have one specifically for my weekly food allowance. Deducting each purchase from it makes all the difference! Its amazing what seeing where your actual money is going on in real time and paying in cash can do.
I'm currently 26, working a close to minimum wage job and by the time I'm 30, I want to be on the opposite side of the fence. It's completely doable. I have no children and so on so just knuckling down, tracking every penny and remembering my future goals should get me there.
I'm creating this diary to hold myself accountable. Let's see where I can be this time next year with a bit of focus, cutting back and discipline.
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Comments
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Good luck x0
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Good luck on your journey.Achieve FIRE/Mortgage Neutrality by mid 2030
1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
2) Spend on handyman & external building works & new patio door £12.3K
3) CC £4.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value at 15/4
5) FI Age 60 annual income target £13.7/30K 45.7%0 -
Happy shiny new diary
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Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
Good Luck 0
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Good luck with you journey to becoming debt free PAYDBX 2022 #8 £135.62 / £75000
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Good Luck! We are in pretty similar situations, will definitely follow you back to watch your journey!My debt free journey, diary and all! New Life Pending :beer:0
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Thank you guys for such a lovely welcome.
Today (yes, on the night shift so counting today as Friday the 26th of July) is payday and I already had a budget plan in place after (accurately) estimating my income for the month.
I've allocated £30 a week for shopping but I also include going out for a coffee or a meal in that budget, too, hence why it's a little bit bigger. I allowed myself £25 for this current week (from Monday) and I spent £7.99 of that on a book and still have £4 to get me through til Monday which should be more than doable. I'm a vegan with a well stocked pantry!
In fact, I spent part of Monday sorting through all the cupboard goods I had and throwing away a ridiculous amount. I now have a spreadsheet detailing what I have, how much of it I have and its use by dates so I can keep an eye on everything
So yes, food shop is relatively cheap at the moment since I'm only buying fresh goods. My mum also got me some bits this week so that helped.
I'm putting aside £100 this month and I have £500 already towards an emergency fund whilst looking to pay of my CC first. Working through my debts using the snowball method of clearing the smallest amount the quickest and then throwing that 'extra' money towards the bigger debts.
Perhaps I'm being ambitious but I hope within two years, on a quite low wage, to have everything cleared and begin living a frugal but fruitful life.
Either way, by the time I'm 30, I hope and anticipate having no debts like I do now against my name.
P.S. It's amazing the change in mindset as soon as you start tracking every penny you spend. Suddenly things you wouldn't have thought twice about buying previously no longer seem so attractive.0 -
It seems that you are really focused and have a plan of action, sometimes it might get tough but the end goal will drive you on. I found setting small targets as helped me loads as focusing in on a small amount rather than the daunting overall figure.
You have got this! Cheering you on0 -
FootyFanDan wrote: »It seems that you are really focused and have a plan of action, sometimes it might get tough but the end goal will drive you on. I found setting small targets as helped me loads as focusing in on a small amount rather than the daunting overall figure.
You have got this! Cheering you on
Thanks! Likewise, I'm cheering you on :beer:0 -
Yesterday was Norwich Pride and of course I went. Spent £20 on good and drink which I budgeted for but can't help but regret today. Such a waste! I guess this is good. It means my mind and priorities have changed for the better.0
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