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  • FIRST POST
    • Savingtomove
    • By Savingtomove 12th Jan 20, 10:37 AM
    • 30Posts
    • 71Thanks
    Savingtomove
    2020 - Clearing the debt the start of our journey to FIRE
    • #1
    • 12th Jan 20, 10:37 AM
    2020 - Clearing the debt the start of our journey to FIRE 12th Jan 20 at 10:37 AM
    Hi Everyone,

    The last 5 years have been very hectic and the result has been a ton of debt.

    Our networth isn't bad as we set up some rental properties in our early 20s which are doing well. But our personal day to day finances have taken a battering due to having two babies in the last four years. My youngest has just turned 8 months and I am back to work this week but have decided to go self employed and started my own business. In the long run I will earn more but it will be a slow build!!

    I am also wanting to shift about 4 stone!! and get my house in better order......

    Our debt currently stands at;

    Family loan £18,800
    Car loan £800
    Personal loan £22000 ish
    Credit card £4902.39
    Total £46,502.39 - Holy Cr@!!

    We make regular payments on car loan (£169), personal loan (£365) and credit card (£100)
    We also save £500 per month in regular savers and will pay this off one of the debts at the end of year.

    I'm planning to get our food spends down, sell some stuff and then throw any extra I make from the new company over what we need to live at the debt.

    I feel it could be a long road!!!!!!!

    The long term goal is to move house and work towards retiring early - Debt is the first step..
    Last edited by Savingtomove; 12-01-2020 at 10:40 AM.
Page 1
    • Savingtomove
    • By Savingtomove 12th Jan 20, 10:43 AM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    • #2
    • 12th Jan 20, 10:43 AM
    • #2
    • 12th Jan 20, 10:43 AM
    So plan today is;
    Money
    Plan food for the week and keep food shop within £40
    List 5 items on f@cebook for sale.

    House
    Ironing!!!
    2 x loads of washing.
    Batch cook some mini quiches and apple and banana muffins for the kids
    use up left over veg for soup for my lunches this week.

    Weight
    Swim - Done (makes me feel good to put it on the list and tick it off!!)
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Jazee
    • By Jazee 12th Jan 20, 10:48 AM
    • 5,798 Posts
    • 64,751 Thanks
    Jazee
    • #3
    • 12th Jan 20, 10:48 AM
    • #3
    • 12th Jan 20, 10:48 AM
    Good luck Savingtomove. We had over £50k of debt and paid back every penny, so it can be done. Not retired yet as I like work but I have gone part time.

    Maybe if you post you SOA here, other folk can give advice on where to cut back. I'm sure someone will be along with the link soon.
    Spend less now, work less later.
    Savings thread #104 Jan £0/total £0/£3600
    • Savingtomove
    • By Savingtomove 14th Jan 20, 8:09 AM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    • #4
    • 14th Jan 20, 8:09 AM
    • #4
    • 14th Jan 20, 8:09 AM
    Good luck Savingtomove. We had over £50k of debt and paid back every penny, so it can be done. Not retired yet as I like work but I have gone part time.

    Maybe if you post you SOA here, other folk can give advice on where to cut back. I'm sure someone will be along with the link soon.
    Originally posted by Jazee
    Thanks Jazee a SOA sounds like a good place to start. I don'r really know how much we are spending on food etc so I think I will set up a spreadsheet and track our spending for a month to get an idea. I have tried YNAB several times but have really struggled with it.
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Savingtomove
    • By Savingtomove 14th Jan 20, 8:28 AM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    • #5
    • 14th Jan 20, 8:28 AM
    • #5
    • 14th Jan 20, 8:28 AM
    So got a few bits from a list done but def room for improvement. I think I'm going to do weekly and daily lists so that I don't set too much to do on the days I have work on or the kids are needing a bit more attention!

    Here is where I got to;

    Money
    Plan food for the week and keep food shop within £40 - Done £38.74 woop woop!
    List 5 items on f@cebook for sale.

    House

    Ironing!!! - only about 1/3 of it done before littlist one decided to start crawling over for attention!!!
    2 x loads of washing. - Done
    Batch cook some mini quiches and apple and banana muffins for the kids
    use up left over veg for soup for my lunches this week. - Done

    Weight

    Swim - Done (makes me feel good to put it on the list and tick it off!!)

    In good news I have had a bit more work through for next week. We have money saved to cover Jan and Feb living expenses so anything I make is extra for the pot. I originally thought we would pay any spare money off the credit card but I think I will split it against a emergency fund and paying the car loan off early (due to finish in May)

    Little one had her first taster session in nursery yesterday and she seemed to love it so fingers crossed it is a smooth start!!

    House is still a mess so thinking of trying the TOMM to see if it helps. I've read a little bit about it so planning to get started today. Hoping the weather holds so we can do a little trip to the local park with the kids. If not it will be a arts and craft day at home.

    So plan for today/ this week;

    Daily
    TOMM - Make beds
    Clean floors
    One item in the bathroom
    Clean floors
    30 min room clean
    List 5 items on facebook
    upload receipts to receipt hog.
    survey x 1

    Weekly
    Finish packing away xmas decs.
    sort through DD2 clothes and see what she needs. A old work colleague says she has loads to get rid of so have a nosey at those.
    Start my spending tracker
    Get business cards sorted and look for networking events to drum up some more work.
    Do a list of all the food in the freezer and cupboards.
    Get Ironing up to date.
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • DrSpendLittle
    • By DrSpendLittle 14th Jan 20, 12:36 PM
    • 697 Posts
    • 2,393 Thanks
    DrSpendLittle
    • #6
    • 14th Jan 20, 12:36 PM
    • #6
    • 14th Jan 20, 12:36 PM
    Happy new diary! Good luck with your debt free journey
    • noobinvestor
    • By noobinvestor 14th Jan 20, 12:42 PM
    • 31 Posts
    • 23 Thanks
    noobinvestor
    • #7
    • 14th Jan 20, 12:42 PM
    • #7
    • 14th Jan 20, 12:42 PM
    What sort of business are you looking to get into?


    Good luck!
    • Savingtomove
    • By Savingtomove 15th Jan 20, 7:48 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    • #8
    • 15th Jan 20, 7:48 PM
    • #8
    • 15th Jan 20, 7:48 PM
    Happy new diary! Good luck with your debt free journey
    Originally posted by DrSpendLittle
    Thank you I'm excited to get started!!
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Savingtomove
    • By Savingtomove 15th Jan 20, 7:50 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    • #9
    • 15th Jan 20, 7:50 PM
    • #9
    • 15th Jan 20, 7:50 PM
    What sort of business are you looking to get into?


    Good luck!
    Originally posted by noobinvestor
    I work in healthcare and am doing the same job I did pre mat leave but just working for myself rather than a company. I have plenty of contacts so I'm hoping the work should flow. So far so good which is great!
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Savingtomove
    • By Savingtomove 15th Jan 20, 7:58 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    So far so good! Here is how I have got on with my lists -
    Daily
    TOMM - Make beds - done
    Clean floors - done
    One item in the bathroom - done
    Clean floors - done
    30 min room clean - done
    List 5 items on facebook - Done and two have sold already. £20 in the over payment pot woop woop.
    upload receipts to receipt hog.- Done I'm now about 2/3 of the way to payout.
    survey x 1 - Done getting towards £5 payout.

    Weekly
    Finish packing away xmas decs. - Done - all packed away and house looking so much better,
    sort through DD2 clothes and see what she needs. A old work colleague says she has loads to get rid of so have a nosey at those.
    Start my spending tracker
    Get business cards sorted and look for networking events to drum up some more work.
    Do a list of all the food in the freezer and cupboards.
    Get Ironing up to date.

    So good start so far. Last two days have been NSDs. £20 for facebook stuff and TT of £3.22 so £23.22 towards car loan. Now much but from might acorns and all that jazz.....

    A bit more work through today - long may it last. Should have an idea where we are at towards the end of the month. I've got the kids home tomorrow so trying to think of something free, indoors and active to do tomorrow.......might be another day dancing to Disney tunes!!
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • savingholmes
    • By savingholmes 16th Jan 20, 9:43 PM
    • 10,210 Posts
    • 21,295 Thanks
    savingholmes
    FIRE is a great goal to keep you going. Don't forget normal pension contributions as you go - they really add up over time. Do you have a date in mind when you expect to get each of your debts cleared. It can help to list them either in terms of when they are due to be paid, highest apr or by amount. Could your car be paid off quickly for example to make you feel like you are making more progress? Is there anything you can sell to chuck at the debt? Do you have a £1000 emergency fund? It can really make a difference to how well you sleep at night...
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • Savingtomove
    • By Savingtomove 19th Jan 20, 2:52 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    FIRE is a great goal to keep you going. Don't forget normal pension contributions as you go - they really add up over time. Do you have a date in mind when you expect to get each of your debts cleared. It can help to list them either in terms of when they are due to be paid, highest apr or by amount. Could your car be paid off quickly for example to make you feel like you are making more progress? Is there anything you can sell to chuck at the debt? Do you have a £1000 emergency fund? It can really make a difference to how well you sleep at night...
    Originally posted by savingholmes
    Hi Savingholmes!

    I might sound stupid but if my business goes as planned we are hoping to pay off everything but the personal loan by the end of the year. The first goal in the car loan which is due to end in May anyway. We don't really have an emergency fund. We have about 2500 in premium bonds at the moment but that is to cover my wage and nursery for Feb so anything I make from work this month and next mouth would then become the emergency fund if that makes sense!!

    Are major issue is that we don't budget for the irregular expenses such as birthdays/car replacement/ replacing large household goods. Which is what has caused the issues!

    I really didn't get on with YNAB so thinking of trying to do my own spreadsheet to see what money goes where!
    Last edited by Savingtomove; 19-01-2020 at 3:18 PM.
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Savingtomove
    • By Savingtomove 19th Jan 20, 5:02 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    So this week has not gone well. I have found that I get really stressed over nothing since having my second child. I thought I was in a much better place but this week I have felt completely overwhelmed. When I look at the week I can see that it has just been my perception rather than the reality!!

    So all of this has led to bad spending £100 at the supermarket in three shops over the weekend ahhhhhhh
    We then took the kids out Saturday to a place we have membership. Took snacks but the weather was freezing so ended up in the cafe and another £12 gone!

    We now have a grand total of £105 to spend this week. About £80 is needed for petrol due to work commitments for both of us!! plus my car is playing up and is in the garage tomorrow - who knows how much that will cost and we have no budget put aside for it!!!

    So here is the plan....

    Week One
    Get spending diary set up
    get list of what food we have in!
    sort DD2 clothes and list expensive ones she has grown out of on ebay
    exercise x 4
    Get work booked in for next week
    Post every day with a to do list and spending....
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • savingholmes
    • By savingholmes 19th Jan 20, 9:35 PM
    • 10,210 Posts
    • 21,295 Thanks
    savingholmes
    Those sound like positive steps. You can only start from where you are - and a spending diary is a good first step. I didn't like ynab either - and went back to my excel spreadsheets that work well for me
    During 2020: Target 1) £25,121 to be repaid in 2020 (0%) Now down to £24,703 Target 2) repay £1450 off (OP £102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • Savingtomove
    • By Savingtomove 21st Jan 20, 2:41 PM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    So yesterday went better than expected. The mechanic had a look at the car and said that they couldn't find anything wrong with it. They also changed my break light for free - I must take some chocolates in next time I take it for a service! I had to spend £3.90 on a couple of coffees for a networking meeting but other than that no spends yesterday and child benefit came in so bank balance is looking much better. TT £4.41 so repayment pot is at a massive £27.63......this really is going to take a long time!!

    Today I went to a gym class with the kids and managed to drag DD1 away from the snacks so managed another NSD.

    Work is starting to trickle in. I have to fight the temptation to take on too much to quickly and completely overwhelm myself.

    I have listed a few things on facebook for sale but get a bit fed up with the constant haggling for money off and millions of messages asking if it is still for sale. Does anyone else get this? I don't know if I would be better with ebay but was trying to avoid the fees!

    We have a Joe Wicks dinner tonight - quick chicken satay......

    Anyway here is the to do list for tomorrow:
    Few bits of work to do
    30 min clean in DD2 bedroom
    tackle ironing mountain
    two loads of washing (to add to ironing mountain)

    Weekly
    Get spending diary set up
    get list of what food we have in!
    sort DD2 clothes and list expensive ones she has grown out of on ebay
    exercise x 4 - two down!
    Get work booked in for next week - Should finish tomorrow
    Post every day with a to do list and spending.... ooops missed one already!
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • sunflowerlady
    • By sunflowerlady 21st Jan 20, 3:56 PM
    • 53 Posts
    • 89 Thanks
    sunflowerlady
    Good luck with your journey! We are in a similar situation! Iím going to subscribe to your diary.

    Iím intrigued at what FIRE, TOMM, YNAB are?

    Lol
    Jan 2020: Loan £3,576.17, Credit Cards £42,401.86, Store Card £1,833.61, Overdrafts £2,300.00. Total Debt: £50,111.64 / 1% = £501.12

    Jan 2020 Update: Loan £3,301.08, Credit Cards £41,333.86, Overdrafts £2,300.00. Total Debt: £46,934.94 / 1% = £469.35
    • Savingtomove
    • By Savingtomove 22nd Jan 20, 6:47 AM
    • 30 Posts
    • 71 Thanks
    Savingtomove
    Good luck with your journey! We are in a similar situation! Iím going to subscribe to your diary.

    Iím intrigued at what FIRE, TOMM, YNAB are?

    Lol
    Originally posted by sunflowerlady
    Hi Sunflower lady!

    FIRE is financial independence retire early - A bit pie in the sky at the moment but you can dream!
    TOMM is the ~The organised mum method
    YNAB is You need a budget - A lot of people swear by it!!

    STM x
    Family loan £18,800 Car loan £800 personal loan £22000ish Credit card £4902.39
    Total £46,502.39
    • Nonnadiluca
    • By Nonnadiluca 22nd Jan 20, 10:47 AM
    • 261 Posts
    • 2,510 Thanks
    Nonnadiluca
    Re ironing, which seems to loom large in your life: you will be amazed at how little you actually need to do with a bit of judicious folding and flattening with your hands. No-one will notice, believe me!
    Your time is too precious to spend getting creases out of bits of material!!!
    • sunflowerlady
    • By sunflowerlady 22nd Jan 20, 12:00 PM
    • 53 Posts
    • 89 Thanks
    sunflowerlady
    Hi Sunflower lady!

    FIRE is financial independence retire early - A bit pie in the sky at the moment but you can dream!
    TOMM is the ~The organised mum method
    YNAB is You need a budget - A lot of people swear by it!!

    STM x
    Originally posted by Savingtomove
    Thank you!!! Where do I find more about this Organised Mum Method? And is there a Dad one? Lol
    Jan 2020: Loan £3,576.17, Credit Cards £42,401.86, Store Card £1,833.61, Overdrafts £2,300.00. Total Debt: £50,111.64 / 1% = £501.12

    Jan 2020 Update: Loan £3,301.08, Credit Cards £41,333.86, Overdrafts £2,300.00. Total Debt: £46,934.94 / 1% = £469.35
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