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Plan of Action

The first thing I did admittedly was daunting. My god this scared the shite out of me. Because although I knew who I owed money to the amount was always a ball figure in my head.

Side note: I began to get seriously obsessed with my debt ‘and stumbled upon the one and only Dave Ramsey and his baby steps. I’m writing this in August 2019 and I can honestly say this man has changed my life. Sometimes it’s good that google listens to you when you speak lol.

So out of my head and onto a bit of paper for me. Boy did I list these bad boys. As I sat back and looked at my work. I proceeded to apply The baby steps method to my list .

To be continued ….

Gather all of your debts!
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I’m normal!

Hi All, I write the way I talk so let’s be Frank :).

Look I’m not going to pretend that I know everything about budgeting, because I don’t. If you’re here to read about how I have a perfect life and a perfect family. You’re in the wrong place. This is me showing you what has worked for me. At the time of writing this I am on my 4th month of my debt free journey. I have saved €1000 in an emergency fund and I have paid off over €3000 in debt. So I’m obsessed with budgeting.

I sat in work early Jan 2019, Thinking what the hell did I just post up on Instagram. How stupid am I to tell everyone I’m Going on a debt free journey. It’s not the first time I’ve tried to be debt free. I’ve done it before I wrote blogs about it I have literally been without loans for a month or so then here comes temptation and it all starts again. Something felt different this year. I’d had enough. This is not the life I want to live.

One of my Chinese customers came to the counter and of course I had to ask her “what year is it?” looking confused she replied “ehm 2019″. No no I’m mean with the Chinese new year coming up ( do I really have to finish my sentences as well lol ). She said it’s the year of the pig. Very lucky year! With money .” I’m ashamed to say that it ended with her googling to see if that was my year and tadaaa it bloody was.

Ladlies I needed to hear that just like a new mother needs to hear. “Put your feet up, here’s a cup of tea give me the baby, you deserve a break” .

You see I’m not broke, I’m just normal really. Actually I’m good. I’m a manager and I…

  • Pay my mortgage every single month.
  • I also pay half the amount of money I pay my Mortgage towards childcare.
  • Then I pay my credit union which is 1/3 of my childcare payments.
  • Of course my property management which is 1/2 of my credit union payment.
  • Then car insurance which is half of my property management.
  • Then my lovely DFS repayment which is €20 less than my car insurance…..Oh jesus I’m exhausted after that are you?

That’s just my Bills. It’s not my food, electricity, babies clothing. But look I’m just FUCKING NORMAL alright?

I’m also tired and drained and sometimes I miss payments because I’m a single mother and there’s too much I have to think about. But the banks and Credit union understand they won’t charge you as much as the €15 my insurance charges for missed payments.

Those lovely ADs they post up to entice you to get that holiday loan have lovely smiling pictures. They do care!!!

The year of the pig is here…it’s my year. And I’m exhausted from being NORMAL…. I would really like to be a weirdo now where do I begin?

To be continued……

Budgeting

It took me about 6 months to realise that having a budget was so necessary in order to complete the baby steps.

Before I wrote my budget I made sure I knew where my money was going. I got my calendar and I marked the days where all of direct debts, bills, loan repayments were going out. I then proceeded to cancel alot of my subscriptions and only kept what was absolutely necessary.

I thought having a spending tracker was brilliant. It gave me an insight into how I spent my money. I literally wrote down every time I spent money for a week. You can do this for as long as it takes to figure out your spending habits.

10 Things you need for a budget!

  1. You need to know when and where everything is coming and going. At a glance make sure you have a calendar marked on the days of when your being paid, your direct debts are going out and when your bills are to be paid.

2. Realistically there is no point stretching yourself so thin that your budget suffocates you. YOU WILL HATE BUDGETING AND YOUR BUDGET WILL FAIL YOU! Your budget should become part of your lifestyle, you want it to be second nature to you not a weekly/ monthly pain in your behind.

3. Pay yourself first! My first outgoings are my Mortgage , Food, Transport, Childcare and bills . Some of these are fixed some are variable it doesn’t matter what else you do, these need to be covered nothing else can happen with my budget.

4. Keep it simple! The way I budget is pretty simple I start with my income subtracting my four walls, then my different categories after that from the most important to the least important.

5. Flex! There is no one out there that can say they’ve gotten their budget right the first time around. Be prepared to play around with figures it took me a good 2 months to get my budget to a place where I was happy with it. Things will come up and no two weeks are the same.

6. Please please please put you in the budget. The all important fun envelope is life changing. It doesn’t have to be that much but just know that it is there. Oh and believe me when I say you will become miss picky when it comes to spending your own personal fun money.

7. Listen to your budget. If your walls are as low as they can be and your income simply doesn’t cover them then you need to adapt. Maybe change jobs, start a side hustle, push for a pay increase or even move home the list goes on. Now is the time to make boss moves.

8. Customise your budget to suit yourself. Don’t be trying to compare with what anyone else is doing your budget should be tailored to your needs and circumstances.

9. It doesn’t matter whether your digital or paper honour your budget and the plans your made for your money. It’s all about the follow through.

10. Don’t get too addicted lol. You’ve given your money a plan now it’s time to follow through and move on.

Thanks for this reading this. If you need more answers don’t hesitate to comment.

The Baby Steps

So lets talk about The Baby Steps….

Step 1 : I know it says save €1000 this is for your Emergency Fund . I think this is personal. For me I saved this amount for the reasons that this is a single income family and when something goes wrong it can really go wrong. I really think you should adapt this to your own situation and keep an amount of money for emergencies that your comfortable with. I will go into this further in a separate post.

Step 2: Pay off debt it does exactly what it says on the tin there are 2 different methods that I would suggest for you to pay off your debt but it really does depends on the type of debts you have. First we have the Snowball method which lists your lowest debt figure to the highest. Then you have the Avalanche method which starts with the debts with the highest interest rate to the lowest. I chose the Snow Ball method as I thought it would be perfect for me as my loans were low interest and I’m a sucker for instant gratification so clapping myself after every repayment at the start really kept up the momentum. By the time I was onto the big repayments, I knew the ropes.

Step 3: This is where I currently am now. So I’m aiming to save 4 months emergency fund. I already have €1000 that only exist for emergencies. I’m going to add €5000 to that this year. This is also my emergency fund but it’s extended now for bigger emergencies. If something happened to me for example I loss my job atleast I know i’ll be okay for 4 months. I will always add a tiny amount to this to keep up the habit of saving even after I’ve reached this target.

Step 4 : This is where you start looking ahead. Do you have a pension? I am looking into this as I’m interested in compound interest. As of now I won’t go into it too much but will probably update this post when the time comes.

Step 5: I’m looking forward to doing this so. It would give me such joy to know I have a little money to give my babies to pursue whatever they are passionate about. If it’s college then so be it, if it’s a house deposit then so be it or maybe they want to see the world. I’m down for whatever they choose to do within reason ha ha.

Step 6: Pay off your mortgage. This one kind of scares me. However when your in The Debt Free Community you see so many ordinary people like myself do extraordinary things. My mortgage situation is complicated. So that’s another I’ll see when it comes to it.

Step 7: This will be my favourite thing to do and I’m telling you I’ll be so sneaky with the things I’m already planning he he. I heard it can be addictive and to be honestly I can see why.