For this post I thought honesty would be the best policy. Now that the kids have gone back to school I have had a mid year recap on what we set out to do in our resolutions. Financially we are still pretty much in the same situation, but has now come to a head and needs to be addressed - not because it is getting worse but just because I am fed up of the money situation dragging on.
So anyway after going to the bookshop to try and find a book to help us in our situation, there isnt one definitive book that I could find that deals only on tips to get out of debt, sure they all contain a chapter on getting out of debt, but then the remaining 3/4 of the book is not relevant to me, why would I need chapters on savings and investments???? give me that when I am OUT of debt, plus all of them held some information but not all, and then I thought, surely the first step in saving money.... is to not spend money on a book telling me how to save money !!
After an indepth look at our finances we are just under £17,000 in debt, (this doesnt include the mortgage) included in this is a £12,000 loan which we took out over 20 years in order to keep the payments down to a minimum but looking at the small print it totals (when you add the interest)that we would owe £35,000 !!!!!!!!!. since looking at our finances I have figured a way that all debt can be paid off within 7 years - without it being too much upheaval or cutbacks.
I also chose to share this information with you at the START of my journey so that we can all live it together if you choose to join me on being debt free rather than sounding all preachy at the end of it, yes it will be tough, yes there will be times im sure I would rather throw the towel in and buy something pretty and blow the budget, but all I can hold onto is that light at the end of 7 years (if not sooner)
We have already had a kick start to our budgeting by default - the second car (which has always been needed for Mark to get to work at 5.30am) failed its MOT and needed to much work to put through so that was scrapped, profit (£80) but on top of this we do not need to pay £120 p/yr Tax, £40 p/yr MOT, £300 p/yr Insurance, £65 p/mth Petrol. so in all it will save us £1240 p/yr
So in order for Mark to get to work now we are in the process of trying to find a small 50cc scooter/moped for him to ride(its too far for a bicyle)which on average will cost us £500 to buy, £15 p/year tax, MOT £15 p/yr, £100 p/yr insurance and £8 p/mth petrol Saving us (without including actual purchase price of scooter) £1014 p/yr.
I have picked up some other tips frugal living, budgeting, saving tips whatever you want to call them, so over the next days, weeks, months, years I will share them with you along the way.