The first debt free emergency

IMG_8063.JPGSince Friday we feel like we’re being tested to see how strong our resolve is to avoid debt…

On Friday we were given the news that husbands truck is on its last legs. We have two months before it’s MOT expires and it won’t pass again without a significant cash injection from us. The money we’d have to outlay would be more than we paid for it four years ago. This has been a bit of a blow as we were hoping both our cars would make it through this year. It’s also a bit of a pain as we’re both attached to the truck! It’s a rickety rust bucket that feels like it’s held together with one central nail but it’s ours and it’s done us well.

The other consideration is an agreement we made last year. We agreed that if husband didn’t buy a motorbike using a loan last year when we were still in debt, that he could buy one this year before we fully funded our emergency fund. This has been the principal we’ve been working on. The goal date was the start of May, this would be when he could buy a bike and he had a budget of everything minus £1000 in the joint account at that point. As we were looking at having to outlay a few grand for a new car then husband spent Friday night with the prospect of losing his beloved truck and also not being able to buy a bike for this summer. A double hit!

The ‘easy’ option would of course have been to get finance of some sort. Either a loan or to use a credit card to be able to get a new (to us) car. That is the absolute last thing that we wanted to do though. After having gone through last year we have become allergic to debt. I have a physical feeling in my stomach at the thought of using debt to buy anything ever again. We just don’t want to do it. That doesn’t mean that the temptation isn’t there. It would be a quick and easy way to solve the issue and we’ve got ourselves out of more debt before right?

We had thought that the next car we bought would be the newest car we’d owned. A car that would do us for a few years and was more expensive to buy but would last us for longer. The idea was that now that we’re debt free we could start on a cycle of trading up on the things we own because we can actually afford them. After this weekend we just had to discuss and change our mindset slightly. Instead of this being a long term car what we’re looking for is a car that will just see us through this next year or maybe two. That started us looking at little beaters again, something cheap but reliable enough.
Yesterday morning we found one as well. It seemed a great deal- £800 for a car with a full years MOT, good size so we can still transport things in it and low mileage for its age. We saw the car online at 930am, saw the car at 1015am and had it bought by 1030am! The most impromptu breakfast trip we’ve taken! So we went home pleased with our new car, we have also looked and we might get some money back to scrap husbands truck so it looked like we’d be pretty even for our funds.

I then left to take my car to work, got 10 minutes away from the house and my back wishbone snapped 😩. My car is now unable to be driven. We managed to go from having two working vehicles to two useless cars within the space of 36 hours- must be a record of some sort!

It is luckily fixable (I didn’t know that when I went round the corner and it snapped) but husband came to the rescue and he can fix it. The poor man has had the worst weekend, he hadn’t even had a chance to eat his breakfast yesterday before we’d bought a car and then he had to come and find me in my busted one!!

Overall it has felt like a test to see if we were financially mature enough to not just go back into debt at the first signs of trouble. I’m glad we’ve been able to avoid it. I feel super thankful and grateful as well for the baby steps. We went out yesterday and spent £800 and still had over £1000 in our emergency fund. It wasn’t an emergency anymore. The first time we’ve had that. It did turn an emergency into an inconvenience. It’s made us more determined to get our full emergency fund built. We have to think that there’s nothing that could impact us so badly once we have 10k sitting in our emergency fund. ❤️ come on completion of baby step three!!

 

 

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Debt update anniversary!

January debt update!

Well what a difference a year makes- this year we have absolutely no debt excluding our mortgage. 100% consumer debt free!

I wrote our first blog post one year ago on the 5th January. We had 12.5k in debt and a holiday to Florida still to pay for along with some other things. We set the goal to clear it in a year and we did, through Gods grace clear, a total of £21,162.

This year it’s a whole different outlook although still an intimidating challenge!

We relaxed a bit over the last month since we became debt free. We wanted to reward ourselves and enjoy the festive period but we are totally back on it now!

Currently we have £600 saved in our emergency fund and will add another £1000 to it by the end of this month. Our debt free goals for this year now are:

– Save 10k in an emergency fund
– Reduce our mortgage term from 30yrs to 15yrs
– Take an additional 5k off our mortgage capital
– Cash flow a kitchen and a motorbike

It is a lot but we just need to have the same drive that we did when we were trying to get out of debt. That seemed unachievable at times and we couldn’t see how we would make enough money to do it but it happened.

What we need to decide now is how to allocate our money. I received a text from our mortgage company yesterday saying our yearly statement is in the post for us. Im genuinely excited (sad I know) to get this in as all last year we were making overpayments. It means that we should see our capital have dropped another 1k. It doesn’t sound much but that’s roughly what we actually reduce our capital by each year through monthly payments. Essentially we’ve doubled what we pay! It will get better once we have the next baby steps sorted.

What debt goals is anyone else working on?

The stigma of money

One of the most valuable things I’ve learned on this debt journey is it becomes easier once you take away the stigma of money.

In general people are incredibly open about every other area of their lives, but when it comes to money that all changes. You’re not supposed to know how much your friends earn, you can’t know what debt they have, what they spend on things in their lives or what they have saved. It’s considered vulgar to talk about and rude to ask but, for us, it’s made it so much easier when we can talk about it!

We have great friends in our lives and the ones that we are closest too are the ones that we talk about money with. Just as it’s made our marriage even better by talking about money, it’s also made our friendships better as well. At the start it was a softly softly approach, the mention of a budget or a passing comment on paying off debt but then we realised how great it was to just lay out the numbers! We started telling people in detail what our numbers were. I started talking about how I was working on bringing areas of my budget down or started explaining why I was saying no to going out. All our friends know what we earn and it’s not to show off, it just gives a perspective on the debt payoff that we’re aiming for. The more I’ve talked about it the easier it’s got too talk about it.

Once we did start talking about it a fantastic thing happened- other people started talking to us about their finances as well. We realised that (although our numbers may be high) we’re not actually the only idiots in the world who didn’t know where their wages disappeared to!

It worked for us in three ways when we opened up about our money.
1- it’s easy to tell people that we can’t do something or suggest an alternative, free, plan of events
2- it took a bit of the guilt away for getting into this situation. We realised that everyone has debt in a varying degree and it didn’t make us terrible humans
3- it made us a bit more accountable for it. If you’re talking about it and being asked about it from people outside of your relationship then you want to keep on track that little bit more.

Peer pressure is a very real thing, it’s just changed now so that what we want to be doing well in is paying off debt, being self sufficient and planning for retirement 😂!

Have you found anything that’s made it easier to get debt free?

Thankful thoughts

It’s officially Autumn now and there’s a definite pity party happening in the household at the moment… I’m fed up of it and everyone around us must be as well. We have an amazing life so to try and head it off I wanted to write down just some of the things I’m grateful for.

There are many things I could start this list with but I’ll start with the sappiest one and say my husband. I often sit and marvel that I’ve been blessed with such a beautiful man inside and out. I appreciate more and more the wonder of finding someone who wants the same things for our future and will bust his butt to get them for us. I asked him the other night what inspired him to do what he did (it was a question I’d struggled to answer that day when asked in work) and he said providing for me. He is motivated because we want our future goals to come to fruition ❤️. How often would you find a man who’s willing to run the same budget numbers with you every night just because it keeps you focused?!

The next thing I’m supremely grateful for is my friends. At 30 I have best friends, actual movie style best friends, who aren’t just my family. It’s something I haven’t had since I was 15 and it’s odd and great! It’s been a whole learning experience for me. Two of my closest female friends do me the very great honour of allowing me to call myself Aunty to their babies. They let me bug the life out of them by hanging out at their house and drinking tea and playing with my beautiful niece and nephew for hours on end. I’ve now been asked to be Godmother to a gorgeous new Godson who will arrive in January. I don’t know if I can describe how humbled and amazed it makes me feel to have both these ‘titles’ for these tiny humans. I love them unconditionally and it is a phenomenal thing for me. It also means I have people who are at the same point in life as me and who I can talk to or even bitch too when I am having a bit of a crap day. To have people understand or just listen is great. They are there to just text or go and see and sometimes I just have to remind myself that that isn’t an inconvenience for them, they actually don’t find me that boring! They’re also the ones who have been there every day when I’ve been honest and said I can’t afford to do something. Instead of just avoiding hanging out with me they’ve happily spent time doing free stuff with me. They’ve also put up with the fact I haven’t even been able to get them a birthday present this year or indeed buy anything for them (the absolute hardest thing for me!).

I was also asked this year to be bridesmaid to one of my other friends. A complete surprise and a wonderful one. This is the first time I’ve been bridesmaid for someone who wasn’t family. It makes my heart happy that someone would want me to be up there, right next to them, on such an momentous occasion. All of these things just make me sit and think wow. These beautiful beings could have chosen anyone for these things but they chose me (or got stuck with me in the case of the babies 😂). I honestly just feel so lucky to have such caring people surrounding me.

I also have more friends than I know what to do with to be truly honest. I’m not a great socialiser at all, I like who I like and would do anything for them but that tends to be a very small number. Thanks to my job I find myself surrounded by amazing and interesting and funny people. They all seem to be willing to have me as a friend and actually want to talk to me and meet up with me. It’s been really difficult the fact that I’ve had no frivolous money to go out for tea and cake with these new friends but we’ve made it work.

I’m also really grateful for husband and I’s jobs. There are so many people we’ve read about, going through the debt journey, and they’re biggest problem is their income. I have a job which I love and that has been able to double my hours since the start of the year. This is through the generosity of my managers and it has obviously made an immense difference in our ability to clear down the debt. I also love what I do, I spent years in jobs I didn’t enjoy but now I get to love going into work every day. I’m working from 4pm till 2am today and I honestly can’t wait for it! I know that not a lot of people can say that about their jobs.

My family are the other area where I’m filled with love and blessings. I have a fantastic family. They drive me up the wall a lot of the time but that’s what family are for. I have been blessed from the second I was born with my family and I doubled down on it when I got married and had another amazing family take me in and call me their own.

Lastly I’m grateful for all the opportunities we’ve been given. No matter what we need God always seems to give us a way of getting it. No matter how badly we’ve screwed up or when we’ve got sick and tired of budgeting etc etc, we always seem to be able to get back on track. I’m so grateful for all the times that this has happened. We are blessed with a life of abundance and that’s what we need to focus on just now instead of the few small things that we’re griping about. This autumn is definitely a season of big change.

 

 

 

Meal planning and budget

Its the end of the month for us and so the budget has been done ready to go into August. This means that there’s one big thing left for me to do- our meal planning!

I am trying to be a lot stricter with this in terms of budget and also look for more ways to save. Roughly a year ago I did a big over haul of our eating and food spending habits. At that point I cut down our monthly food budget from around £210 per month to on average £130 (that’s for 2 adults, 3 meals a day). After that initial cut I feel I’ve plateaued, the saving was great but I still feel like there has to be so many other ways I can cut the budget even more. So that’s what I’m trying to plan for and do!

My mantra for this year is definitely ‘can I make it myself’. Therefore every meal we make, if we’ve had to buy any ready made ingredients, I want to know if I can do it instead.

The first thing to go was shop bought pasta sauces- this one for me was purely a laziness factor. It initially felt a lot easier to just open a jar than to make one up. I have now stopped being lazy though and started making my own (FYI it takes roughly 1 minute more to make my own basic tomato sauce). This has saved me from spending up to £2 on jarred sauce and instead only costs me 60p for my home sauce ingredients. The eventual dream is that I’ll get good at growing tomatoes and be able to make my own passata base as well.  The next thing that has saved us some money is that I am now mainly vegetarian – much to husbands disgust! It means that our meat order goes twice as far because its just husband eating the meat and I use pulses or meat substitutes instead which are a lot cheaper.

The other area where we’ve saved a lot of money is by me getting a good pizza base recipe. We committed in June that we would stop getting takeout. It was our Saturday night treat to order in pizza. A treat for me that I didn’t have to Cook and a treat for husband cause he loves pizza. However, because he dislikes sharing pizza, it was costing us around £60/£70 per month just on 4 meals. That 50% of our entire months food budget. An absolutely ridiculous waste of money when we’re trying to clear debt. So instead I’ve been making the bases and we’re having delicious cheesy pizza for pennies instead.

Aside from this we also chose a cheaper supermarket to shop in which has helped as well. Although due to the nature of that shop it doesn’t always have everything we need so we do still go to another store once a month for bits and pieces!

How I actually meal plan is simple. I take an inventory of the freezer and pantry first of all. I have a good rough idea so its really just firming up that I have what I think I have. Then I print out a blank monthly calendar and write in all my shifts that I know. That then just leaves me to match food to days. We have a basic ‘bank’ of meals that we eat with the occasional experiment meal thrown in so I try to cycle through them as I go. I usually start with the nights I won’t be in for dinner as these have to be meals husband can make himself which limits the possibilities. Then I choose what days I want lazy meals so ones I can quickly prep or shove in the oven. That just leaves my days off when I have time to make more elaborate meals so they go in as well. That gives me my full months dinners and I make my shopping list on a weekly basis for the fill in ingredients from the planner. The calendar gets stuck up on the fridge and that’s it all done =)

TOP TIPS

– don’t be swayed by brands: own brand is normally just as good. There’s only one or two things we still prefer branded.

– plan round how tired you think you’ll be: I used to be terrible for not taking into account what I was working. I would plan in a meal that took time to prepare and then be to tired and hangry to cook. When that happened we would end up buying takeaway…

– always label the extra portions that go into the freezer. I have too many mystery boxes in the freezer that I was convinced at the time I’d remember what they were.

– weigh your ingredients. I weigh out our pasta and rice portions and cheese etc. Its good for a not being fat point of view but also saves on waste.

– make use of your freezer. I buy frozen instead of fresh for what I don’t grow generally. For mushrooms and peppers I buy, chop and freeze on the day.  For our big meat order I spend a couple of hours on delivery day portioning and wrapping it and then put it in the freezer.

– plan in advance to use any leftovers from dinner and change them into something for lunch the next day.