Mind change to debt thanks to MSE forums!

A question about : Mind change to debt thanks to MSE forums!

Hi Guys

I'm new so thought I'd just say hi and a big thanks to you all for making me realise that debt isn't as big and scary as I thought!

Little about me (if you're interested). Single mum to DS, mortgage and self-employed. Currently in a lifestyle business situation so I can work around my daughter with the view to expand as and when she doesn't need me so much. Bonus - holidays & quality memory building times with DS. Downside - no work no money

After getting into some serious strife a few years ago I have been trying to pay off my debts and although I was managing to pay slightly above the minimum requirements I couldn't see that I was getting much paid off.

Since reading some of the posts on here though I realised that I have been looking at it all wrong, haven't been budgeting and have generally been a bit head in the sand ish about it all.

So, for the last 3 months of 2013 I did a business style spreadsheet to record where every penny I earn has gone. The amount I have wasted on luxuries or other is ridiculous! I have then worked out how much I spent on average each month and my target is to bring it in each month below that target - this does not include Christmas which now has a monthly savings target instead (and is lower than last year).

I also noticed that on your posts you all do something I never thought of - write down how much you have paid off as well as how much you have left to pay. I've been so busy worrying about the money left to pay I hadn't thought about how much I have paid. So I've worked that out as well and realised that I have actually paid Ј1,566.36 off my debts over the last year - which is awesome!! I still have a way to go but with my new budgets/targets as well as a more positive attitude I know it won't be long - or as hard!

So a big thank you to everyone who has shared their stories on here for being the inspirations I needed.

Best answers:

• Hi sassychick,
  Welcome, and well done on posting and going in the right direction! I've not been posting here too long either, but it really is a massive help to know you're not alone. There's so much support to be had here.
  It definitely does help to keep a record of how much you've paid off - seeing the progress helps to keep you motivated and i'd say that's a necessity!
  Bravo on keeping a spending spreadsheet - it really does help massively. At least you know yourself where you need to cut back! I'd be interested to know what your average spend is and what your target is! I'm also being strict with a budget for myself.
  I'll be subscribing so I can keep up with your journal!
• Hi!
  Thanks for replying to me. I was so nervous about posting but now that I've a response it's encouraging me to continue!
  Recording my outgoings was a real eye-opener. I'm a total sucker for spontaneous spending, especially on my daughter, and so am reigning it in big time. The biggest shock was that my average monthly spend on food & household groceries was Ј126.88 whilst luxuries & other was a staggering Ј210.66!! This was including things such as a newspaper, Take a Break, take aways, Lego flippin' Friends! Also birthdays & the odd evening out etc. I am also paying out roughly Ј50 on petrol. To reduce the petrol costs I have bribed my daughter to walk to school. We live just under a mile away so if we walk I put the equivalent of a business mileage claim into our savings pot, which is 45p. We don't walk all the time but since school started we've saved Ј4.50 already!
  My budgets therefore for January are:
  Food Ј90/49.64
  Groceries Ј20/17.63
  Clothes/luxuries/other Ј150/124.52
  Petrol Ј40/30
  Save for Christmas (p/m) Ј25
  Debts
  CC1 Ј10273.70/Paid off Ј778.33
  CC2 Ј2263/ Paid off Ј116
  CC3 Ј1000/ Paid off Ј226.84
  CAT1 Ј600/ Paid off Ј181.10
  Cat2 Ј1000/ Paid off Ј264.09
  I'm also aiming for at least 2 no spend days per week.
  I think I've done that right!! How about you? How is your budgeting going? I'd really like to keep up with your journal too so will see if I can find you.
  Have a good day tomorrow!
• Thanks! I do have a journal around here somewhere - https://forums.moneysavingexpert.com/...0505&highlight
  You're already doing so well keeping your grocery shop so low. Where do you usually do your shopping? I've started using Aldi regularly (before I was flitting between Asda/Morrisons/Tesco/Aldi/Lidl/Co-op/Jack Fulton.. the odd shops in the week, Ј20 trips when I just needed milk, etc. etc) - now I'm aiming to spend under Ј30 a week at Aldi for everything I need. So far so good!
  Love the idea of putting away the petrol cost when you walk to school. It'll soon add up!
  Hopefully you can keep reducing that "luxury" spend bit by bit each month. I'm not one of these people who think you should cut EVERYTHING out though. Life's for living and you need the odd treat here and there. The trick is just to find the cheapest way to get what you want
  Hope you have a good day!
• Morning!
  I have Co-op, Aldi & Sainsbury's all nearby and they all have their own qualities. Co-op is walkable, Aldi is cheap but Sainsbury's stock more of what I want. Sometimes I have found myself going to all three just for one shop & am sure I'm spending the money I've saved on petrol & the extra time!
  I must admit I do prefer Sainsbury's though & I usually buy own brands. I am also saving the nectar points in the hope that they will add up to provide my Christmas food shop - saving in a slightly unorthodoxed way! I have tried to do buy local as I like to support indie retailers as well as feel it's cheaper but the nearest place to me is still a few miles away - ridiculous as I live in the suburbs of a city.
  With regards to luxuries, we have the same mindset. I'm very much the sort of person that thinks a little of what you want is ok. However, I don't drink, I don't smoke and I don't do any clubs. I now get all my books from either the library or charity shops & I have a knack of buying clothes that last/stay stylish so don't spend much there. My one luxury I refuse to give up is my weekend papers. I have one delivered on a Sat & Sun and I buy Take a Break. This all adds up to Ј3.26 a week which I don't think is too bad really.
  This frugal/money saving lark is quite addictive!
• No, sub-Ј15 a month isn't bad at all for something you really enjoy. Certainly can't deprive yourself! I don't spend too much on clothes either. Get the odd thing (mainly for work) when I'm really desperate but usually I make do with what I get for Xmas/birthday, with maybe the odd Ј30 basket dash in Primark a couple times a year!
  It really is addictive, isn't it? I'm just hoping it stays that way and I don't lose motivation at any point.
• Hi there
  How's things? So, yesterday was a good day for me as it was another NSD! I also looked around for a good place to save money for Christmas and have gone with a Virgin ISA which not only will help me to save the money but I also get a free lounge pass which entitles me & my daughter to free hot drinks when we go in there on a trip into the city! So cool as we usually spend about a tenner. Majorly happy is not the word lol.
  We also walked to school so that was another 45p saved so we're doing well. I also got my water bill and found I'd reduced my usage to Ј1 a day which is awesome but I'm aiming to reduce it more, watch this space!
  Bad news is my daughter fell over and completely ruined her school boots so the sole is now hanging off. These boots are only a few months old grrrr. I went to get them resoled & found it was actually only a quid cheaper than buying her a new pair, so she got a new pair! Slightly annoying for me, happy days for my daughter!
  How are things going with you?
• Oh, and I put a Blackberry Playbook on Gumtree & FB for sale but as yet no takers but fingers crossed someone will snap it up soon so that'll be more money!
• Good evening!
  Sounds like a good day - minus your daughter's shoe-destroying incident though! At least she's okay and its only her boots that got hurt!
  Hopefully someone will buy the Blackberry Playbook soon! I've never had any luck selling on FB but I know a lot of people do. I sold an iMac on Gumtree a while ago though- took a while to shift but eventually got a really good price for it. Will you consider eBay if it doesn't sell?
  Good going with the ISA! Do you get a decent interest rate with that? Never heard of the lounge pass before but that sounds like a neat little perk!
  Keep up the good work!
• Hey sassychick, just wanted to say hi and thank you. I've been reading your diary and you encouraged me to take the plunge and start my own diary. :-)
• Hi
  I usually sell on eBay tbh buy my friend kept nagging at me to go on Gumtree as she sells everything on there. It's been 3 days now so may get her to re-write my ad!
  Today we walked to school again although this was a huge mission! It's a 15 min walk & we were running late so said we'd drive. Got outside & car iced over so we virtually ran to school and got there in 8 mins just as the bell went - phew! An extra 45p into the pot & I put in another one for the speed we went at.
  Back to the shop tonight to swap the boots as obviously I got the wrong size, How do I know what size boot she is, I'm only her mother!!
• Hi Trixxibell
  So happy that you found me and that I've inspired someone! I'm sure you'll do well and will love to chat so we can keep each other going - FinanciallyUnsavvy has been motivating me so check her diary too!
  Have a great day!
• Hi FinanciallyUnsavvy
  Just had a quick look and the Virgin Easy Access Cash eISA has "Rate 1.61% TAX-FREE1/AER2". No idea if that's good or not but it's better than the money sitting in my account and possibly getting spent!
• Just popping in to say hi - hope you're doing good & have had a good weekend! x
• Morning all!
  Monday is here already and through the drudge of trying to wake up I realised that this weekend I had spent precisely no money!!
  So I went to Sainsbury's to take my daughter's shoes back after school on Friday and they didn't have any boots in her size at all so we got a credit note from them (I'd forgotten to bring the card they were paid from). I also found out that it is ok for my daughter to wear the shoes she is currently wearing so we'll stick with that until we're next in the city and we can get some shoes that are more suitable & usually cheaper - oh, and we can have our free coffee!!
  On a self-control level. While we were in the store my daughter saw 2 things she wanted and could only afford one with the money she'd saved on her pocket money. Normally I would offer to help her out and for her to pay me back but this time I was really good and made her choose. She eventually opted for the item she could afford and not the one that was a few pounds over her budget. A good lesson for us both I think.
  I was also able to put Ј25 into my Christmas savings account which means this month I am up to Ј40 alone! YAY ME!! My aim is Ј25 a month minimum so soon as I've got my target I can put anything else onto debts, sure I've said this before but there you go!
  That's all for the weekend. I do have to go shopping today for a few bits that I forgot last week but I have a list and I WILL stick to it!
  Have a good day
• Ooh, just remembered!
  I wanted to put a shelf up in my daughter's room but wasn't sure where to put it & tbh didn't want to go spending money just for a whim.
  Then my darling angel remembered that I had corner shelves in the cupboard that I had taken down about 4 years ago when I redecorated her room. This meant that not only did I already have a shelf but I already had holes in the wall! I'd covered them up with a poster as I'd forgotten to fill them in when I'd decorated.
  So there's now a "new" shelf up that cost nothing and made no mess and it all looks lovely!
• So, today was another NSD and I managed to put another Ј5 away for Christmas. Have reached my monthly target already and am on the way to Feb's so very happy.
  Tonight for tea we had pitta bread pizzas which has got to be one of my most favourite quick and easy teas ever. Between the 2 of us we had 5 pitta breads, a few handfuls of sweetcorn, about an 8th of tomato puree, half a bowl of cheese and a slice of ham. Worked out tonight's tea cost 36p per pizza. Can't complain with that!
  Also, paid another Ј125 off the credit card so that balance has gone down nicely. Got a small shopping list for tomorrow but that's ok.
  Oh, also done 2 more surveys on nectarcanvass so now have 260 points from there,so that's a bit more towards Christmas food - perhaps a sprout lol!
  Can't wait to see what tomorrow brings!
• Hi it's nice to meet you Sassychick, I love your user name. That is the attitude!
  I have always worked around DS too, and I have weaknesses with spontaneous spending and a fondness for spreadsheets.
  Keep up the great work and focus!!
  P.S. Do you have to fly to use the Virgin Lounge?
• Morning RainbowBridgeReturns
  I love your user name too, all sparkly and colourful!
  I'm obsessed with my spreadsheet, think it's part of my mild ocd that's lingered from when I worked a "real" job!
  No, you don't have to fly to use the Virgin Lounge. Think there's only 3 in the UK and I happen to be lucky enough to live near one.
  Have a great day!
• Hi FinanciallyUnsavvy
  I just spotted your message from Sunday, strange how I missed it yesterday. Hope all is well with you & you hear about that job today!