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    • Allotrope
    • By Allotrope 2nd Jan 17, 11:53 PM
    • 155Posts
    • 404Thanks
    Baby Steps to Financial Freedom - Allotrope's Diary
    • #1
    • 2nd Jan 17, 11:53 PM
    Baby Steps to Financial Freedom - Allotrope's Diary 2nd Jan 17 at 11:53 PM
    Hello! I've been buzzing around these boards a bit and whilst I'm not currently in debt (excluding my mortgage), I have been in debt all my adult life and this is the first time EVER that I feel confident about managing my money.
    To help me stay debt free, and even build savings, I need to keep a diary and clear record of my day to day activities. Like dieting, I have a feeling that recording is the key to accountability.

    Anyway, I'm not sure if my diary belongs here but this is the most active of the diary places and the one I feel most at home in, so hopefully I can stay? Or someone can recommend a better place for my diary?

    I've been trying to work out how to budget via these forums and the internet, and have come across two methods that resonate with me.

    The first is YNAB. I LOVE this approach and the associated software. I have tried to budget so many times before only to break the budget (and again, like a diet) and throw it out of the window. I'm still on my free trial period of YNAB but I'll be keeping it up, I promise! I hate the idea of paying for budgeting software but this is definitely worth it so I'll stump up the cash.

    The second thing I have recently discovered is Dave Ramsey. He's very American in style but his approach is very sensible and gives me a longer term plan (whereas YNAB is really for managing the now). He promotes 7 baby steps (hence the name of my diary). You do the first three steps in order, one at a time, then the next three steps simultaneously along side each other, then the last one only when the others are complete.

    They are:
    1. Build a 1000 emergency fund
    2. Get out of debt (by snowballing the debt)
    3. Put 3-6 months of expenses in savings (as an insurance policy, it isn't there to earn mone so interest is a bonus but not the purpose of this fund)
    4. Invest 15% of income into retirement funds
    5. Invest in personal development (this is either your development or your children's e.g. CPD, masters, children's university fund etc.)
    6. Pay off your home early
    7. Build wealth and give (this leads on to his investment guidance etc. and paying it forward)

    I plan to work my way through these steps and see where it takes me!
Page 1
    • Allotrope
    • By Allotrope 3rd Jan 17, 12:08 AM
    • 155 Posts
    • 404 Thanks
    • #2
    • 3rd Jan 17, 12:08 AM
    • #2
    • 3rd Jan 17, 12:08 AM
    I had a good money saving month in December (my first foray into paying attention to my money rather than taking the head-in-sand approach to financial management).
    Here's some of the things I got done, although mostly the rewards are yet to be realised.
    - Changed broadband provider - I have moved from BT to EE saving 10 a month and upgrading to fibre optic in the process.
    - Changed bank account for a gain of 100 and a higher interest rate
    - Started swagbucks - have earned 30 in three weeks so I'm pleased with that
    - Downloaded and set up YNAB - so totally on budget now!

    I've still got a long way to go before I feel on top of my finances, but I'm definitely making progress!
    • karenccs67
    • By karenccs67 10th Jul 17, 6:53 PM
    • 1,022 Posts
    • 5,493 Thanks
    • #3
    • 10th Jul 17, 6:53 PM
    • #3
    • 10th Jul 17, 6:53 PM
    Allotrope how are you getting on with your babysteps?

    I love watching Dave Ramsey, we are on BS4.
    ***Dont save what is left after spending, spend what is left after saving***
    • UncannyScot
    • By UncannyScot 10th Jul 17, 8:05 PM
    • 1,368 Posts
    • 7,583 Thanks
    • #4
    • 10th Jul 17, 8:05 PM
    • #4
    • 10th Jul 17, 8:05 PM
    Hi Allotrope
    Hello and welcome
    You are in the right place
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
    • parsniphead
    • By parsniphead 10th Jul 17, 8:46 PM
    • 2,405 Posts
    • 15,295 Thanks
    • #5
    • 10th Jul 17, 8:46 PM
    • #5
    • 10th Jul 17, 8:46 PM
    Hello Allotrope

    Another Dave Ramsey fan. I've been watching him all day while working. Just about to start on Baby step 2.

    Good luck with your plans.
    Don't let yourself be controlled by three things: people, money or past experiences.
    Reds life!!! X
    2018 My year of creation, living life and learning.
    I stopped waiting for the light at the end of the tunnel and lit that b*tch up myself.
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