WE’RE DEBT FREE!!

WE’RE DEBT FREE!!

13 months
£21,162 debt cleared
£377 p/w average paid to debt

For every time we’ve said no to going out.
For every time we couldn’t buy new things.
For every time we’ve sat and budgeted instead of just spending.
For every time we had to ask our friends to do something free… this was why ❤️

As most of you know we’ve been determined to be debt free (aside from our mortgage) before the end of this year.

Well we’ve made it with a full month left to spare. It’s been a hard slog for us to be honest and has completely changed how we think and how we act. A lot of this year has been about learning that it’s ok to say no to things. We can say no to each other; say no to other people and say no to instant gratification because we have a long term plan. However that ‘no’ doesn’t mean that we can’t live now as well- we’ve just changed the things that bring us joy.

A year ago if you’d asked us what we wanted when we were debt free I have no doubt we’d have listed a big bunch of expensive things. Now, while it’s true we still want some of them, the top things we’re looking forward to buying are a bit ridiculous. I cannot wait to be able to buy a new liner for my slow cooker and some branded rubber gloves. For husband he wants basmati (instead of long grain) rice and to be able to buy some crisp snacks on a weekly basis when we shop. That might seem a bit sad but sacrificing little things like that for the last year has all added up to being debt free now!

We will finally be in control of the money that we earn. It still feels a bit unreal that when I get paid at the end of the month we don’t have to give that to anyone. It’s just ours, to save, give and spend as we see fit! Normally I get paid, it goes into our joint account and then straight back out to pay the loan or credit card. We own absolutely everything in our lives now apart from our house. No credit cards, no overdrafts, no car finance, no finance at all actually. It’s all ours. Our motivation now is to try and save almost as much as we have been paying to debt. If we can get anywhere close then we’ll have our emergency fund sorted in the next 6 months which would be amazing.

It has absolutely, 100% been worth knuckling down for a year. It has changed our spending habits for life and made us allergic to debt! We mucked it up loads of times as well so if we can do it then definitely anyone can ❤️

 

 

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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?

The hardest thing to change

I wanted to put into words what has been hardest for me on our debt free journey. The simple answer is changing me-but most importantly giving.

I don’t actually class myself as a spender. Now obviously in some way I am or I wouldn’t have debt. However I’m not one to go to the shops to buy things for myself. A day in a shopping centre is not my ideal day at all, in fact I’d avoid it if I can. I live in clothes until I literally can’t wear them out the house because it would be indecent, crowds of people make me feel irate and I despise trying on clothes!

Where I do like spending my money though is on other people and on giving to other people. I was very lucky in my upbringing and have emotionally and financially generous parents. I saw them give to people constantly and offer things for people and I subconsciously learned to be the same. I’ve heard all my life that ‘its only money’, and while it was instilled in me that you need that and to work to get it, it also taught me to not need to hold onto it. I need enough to live but if there’s any ‘extra’ then I should use that for others. All my immediate family are the same. If you go out for dinner with us then you better be quick with your card or someone else will have paid it! We also don’t keep track of our debts to each other. You know the scenarios, you’re out and someone doesn’t have cash out so you pay for whatever the thing is as they cry ‘ I’ll give you the money back’ which you then decline so it turns into a never ending game of ‘I’ll get the next thing then’ to make up for it.. It was the thing I found weirdest about husbands (now my) family. They actually keep track of what they owe each other and pay it back! This isn’t to peg them as miserly in any fashion as I’ve married in to another exceptionally loving and extremely giving family, its just a different ethos. It’s maybe as well why husband found it easier to get on board with the debt plan than I did.

My problem comes with what counts as extra money. Prior to our debt journey extra to me just meant that I had the ability to provide that money. It didn’t matter to me if that was my overdraft or credit card because I was paying it off. The fact that I was getting in debt to do it barely registered. So without a doubt its the hardest habit I’ve had to break. 

When I want to do things with my friends or family I’ve had to accept that we may have to half the bill for what we’re doing. Alternatively I’ve even had to accept that they may pay for me…a horror I feel deep inside. I hate other people having/ offering to pay for me, it makes me feel like I shouldn’t have taken up their time or asked and accepted their offer to do something. I feel constrained in my giving because when someone’s sad or mad or happy or has their own money worries I can’t step in and fix that. I loved being able to surprise people or make their day with a wee tea and a cake or a tiny gift. I can’t do that at the moment because its not in the budget and its what’s left us in debt for such a long time because I wouldn’t change. We technically started this plan three years ago but because I wouldn’t commit, and both of us couldn’t say no, then that’s what’s kept us in debt. It is only since January that we’ve committed and surprise surprise its only this year we’ve made a difference. 

The big words that I keep repeating to myself are both Dave classics. The first is biblical and says to get your own house in order. Unsurprisingly I got into trouble here as well. My house to me includes my family and I want to give to them. So the first thing I had to do was understand that my house is my marriage and I need to show respect there first before I try to sort out anyone else. The second is to live like no one else so that later we can live (and give) like no one else. Whenever I waiver, and it is at least weekly, I think of how I’m going to be able to give and provide in the future. If I can just get through these last few months then I’ll be able to see the difference. I’ll also be able to resume some of my previous giving habits but this time tempered with what we can afford. I’ll hopefully have learned balance like I think I have. 

So that’s it, the one debt problem that I struggle with every day. Its good to write it down and talk about it so that it doesn’t become an area of continued weakness. I look forward to being financially secure in the future so I can give. 

K xx

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.

 

 

Debt journey …

Its been a long while once I wrote about our debt journey. We have still been working on it but have been having various amounts of success and setbacks.

As I’d previously said in November we very stupidly booked to go to Florida again which we did in June. This cost us a lot of money and we did put money on a credit card while out there so that was the biggest setback…we have made good inroads since coming back though and we’re really determined to still get this done by the start of next year. 

Our debt as it stands is a loan for £6695 and the credit card with £1135 so combined debt total of £7830 excluding our mortgage. 

We sat down and did a paper budget this month. As we’ve been decorating then the computer is dismantled so no spreadsheets! It was actually good to sit and write everything down although it is slightly depressing to realise that currently i work purely to pay our debt. However that won’t change till we get rid of it! Since we came back from holiday mid June we have so far managed to pay £1210 back off the debt. If we could continue this then we would make our final debt payment in February 2018. That’s against a final payment projection of September 2020 if we had continued with just our standard payments. So really it is good but its not good enough! My absolute ideal is to make our final payment in December of this year but unless one of us has an unexpected pay increase or bonus then I don’t think that’s realistic.

I get paid this week so we still have one final overpayment to make. It should be for £243 if I get paid what I expect too. Then based on our predicted monies for next month we should pay another £1100 to debt which would put us to just over £6700 left to pay. The figures are definitely going in the right direction.

I am also in the mood to sell everything (or a lot of things anyway) to try and make December a more feasible target for clearing debt. I’m currently just trying to figure out the best way to do it. I’m using marketplace and shpock app because they’re free to list but not having much success yet. So the next option is car boot sales I think, looking around for the best value ones to go to. I have also tried ebay but again nothing seems to be selling yet. 

That’s where we are just now, we both need to try and use our other skills to get it cleared faster and stay focused!