Money

5 Great Tools to Use on Your Debt Free Journey

June 21, 2019

When you are on your debt free journey it is important to have some support around you, both practical and emotional, in one form or another. Whether you find it in family and friends, books or through an online community, having support in place will ensure that you stay on track and achieve your financial goals. Here are 5 great tools to use on your debt free journey.

The Total Money Makeover Book

The Total Money Makeover is a book that I have spoken about on a number of occasions before and one that I will always recommend to anyone on a financial journey. It is the first of the great tools to use on your debt free journey. Dave Ramsey’s book takes you through a number of steps designed to help you get out of debt, secure your finances and plan for the future. Whether you are at the very beginning and in need of someone to hold your hand or you are well on your way to becoming financially free, this book can help you.

Dave also has a Youtube channel where he shares snippets of his radio show as well as many great advice videos. These are fantastic to listen to as they allow you to hear stories from others in the same position. The comfort of knowing that you’re not the only person in your situation is invaluable.

The Debt Free Community

When you find yourself faced with a mountain of debt and feel like there is no way out it can be incredibly lonely. Most people don’t talk openly about money and it can be very isolating. Thankfully there is an entire community online that speak openly about their money troubles and the steps they are taking to become debt free.

Predominantly found on Instagram, the Debt Free Community can be found by searching #debtfreecommunity. Many accounts even choose to share their financial figures openly. This is not only reassuring but motivational. Watching others make progress, whatever speed they are moving at, encourages you to be honest with yourself and motivates you to do something about your own debt.

A Physical Budget

It goes without saying that if you want to make a difference to your money habits and clear your debt you are going to need a budget. This is possibly the most important of all the great tools to use on your debt free journey. Whether it is something simple that helps you to keep track of your income and outgoings, or an in depth system such as the zero based budget that Dave Ramsey promotes, knowing exactly what you have and where it is going is the only way to take control of your finances.

There are so many different budgeting systems available. Personally I prefer to put pen to paper and write out my budget by hand each month. It forces me to think about each item that I’m writing down and allows me to be very conscious of the money that I’m bringing in and the money that I’m spending. There are a variety of paper money planners available, but I like to use this one.

The Cash Envelope System

Setting up your budget can really help you to handle your money well but sometimes we need to take things one step further. It is great to have the intention of managing your money as you should using your bank account and bank cards but if you struggle to stick to your plan, using cash envelopes may be a great additional tool for you.

The cash envelope system is something I’ve written about before. At the beginning of each week or month cash is withdrawn and placed in envelopes allocated for specific expenses in your budget. One might be for food shopping and another for filling your car with fuel for example. Having your budgeted amount in a physical capacity will help you to stick to spending that amount only and stay on track with your finances.

A Simple Saving Method

Whilst the main focus of your debt free journey will be paying down the money you owe, it is also really important to have a good savings method in place. Whether you are pulling together your emergency fund or preparing for upcoming costs, having money set aside will help you to avoid getting further into debt.

There are a number of approaches you might take but when money is tight I find that it helps to keep things simple. My favourites are skimming for digital saving and keeping a jar in the kitchen for loose change.

Different tools and forms of support work for different people. The important thing is to explore them and find something that suits you. Facing a debt mountain is hard, but when you have the right people around you and a good method of tackling your finances your debt journey becomes far more manageable.

Debt Payment Progress Report 15 – 22/02/19

February 22, 2019

Every two weeks I will be sharing my debt payment progress report with you. I’ll share my new debt total and some of the things I have done to make this happen. It will help me record my journey and it will also help me to stay motivated!

Debt Payment Progress Report – my new total!

As of February 22nd 2019 my new debt total is £11,753.58 (My starting debt total was £16,814.29)

That means that since I last updated you two weeks ago I have paid off £2406.49 My new total debt payment to date is now £5060.71, which I have calculated to equate to 30% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6236.92
Loan Two £5516.66
Credit Card One £0
Credit Card Two £0 (yaaaaaaaahooooooooo!!)

Debt Payment Progress Report – new debt total on 220219

The past two weeks have been very successful with regards to my debt free journey. That’s a massive understatement actually. Thanks to some financial help I have leapt forward. So much so that I can officially say goodbye to my second credit card. It’s paid off! I’m also 30% of the way through my total now. That feels incredible!

I won’t go into detail about the help received as it’s obviously quite private but what I can express is how grateful I am for the support. When you are moving so slowly on your debt free journey, as I have been over the last few months, it can be draining and disheartening to say the least. This boost has not only helped get rid of a good chunk of my debt, it has also rebooted my motivation.

Now I am left with two loans to pay off. Both with the same bank and both with penalties attached for paying them off early. I’m going to work out my numbers and see if the penalty is worth paying. Of course, following the debt snowball method I should throw everything I have at them and just pay the penalties in order to get rid of the loans. What would you do? I’d really love some advice on this one!

My next debt payment progress report will show a far smaller number, most likely my minimum payments on the loans minus the interest I have to pay. If you’ve been following my journey for a while now though, you’ll already know that I’m absolutely fine with that. As long as the number continues to go down, I’m happy.

You can find my previous reports here.

Debt Payment Progress Report 14 – 08/02/19

February 8, 2019

Debt payment progress report – my new total!

As of February 8th 2019 my new debt total is £14,160.07 (My starting debt total was £16,814.29)

That means that since I last updated you two weeks ago I have paid off £112.67 My new total debt payment to date is now £2654.22, which I have calculated to equate to 16% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6236.92
Loan Two £5679.79
Credit Card One £0
Credit Card Two £2243.36

We’re already into the second month of the year and time is slipping away. I cannot believe how quickly the weeks are passing now. In saying that, I am please to report that so far things are going well for 2019 and I’m in line with my goals. Freelancing work has remained busier than it was at the end of last year and it looks like it might stay this way for a while yet. Of course, I won’t be getting complaisant. My intention is to find one or two more clients, ideally, to help boost my hours.

One or two small ebay sale have also helped contribute to my payments over the last two weeks. I always say that the pennies add up and small things like selling unwanted items and surveys do help me out. My listings are running low now so I’m going to go through my wardrobe and have another clear out. With any luck I can find another 10 to 20 items that I can list and hopefully boost February’s payments a bit more!

After a couple months off from goal setting I also took the time earlier this week to set myself some goals for the month. You can read them in detail here. Mostly, I just want to get my head down and push on with work but I’ve also added a “treat” in there. Like most people paying off debt I’m in it for the long haul and as motivated as I am, it can be a bit of a downer to constantly be throwing every penny at loans. In February I’m going to make a point of treating myself to something small to keep me going. Maybe just a nice lunch, that would do the trick!

You can find my previous reports here.

My Money Goals for February 2019

February 5, 2019

After losing track of my goals in December and forgetting to set any altogether in January I am so happy to be back and bringing some focus and intention to the coming month. With tax payments and the expense of Christmas long gone it is time to focus on my second credit card and clear it as soon as possible. Here are my goals for February 2019.

You can read my goals for December 2018 here.

My goals for February 2019:

Increase income by £500 per month.

Over the winter months my work load always drops dramatically, so much so that you’re probably sick of hearing about it by now. Whilst it is an expected dip I’d rather fill my hours a little more if possible. Instead of relying on side hustles only for this I’m making the effort to increase the number of freelance clients that I work with on a regular basis.

It is always difficult to determine how much work a new client will bring and I am very familiar with the promise of lots of incoming projects only to be left disappointed. At the same time, I don’t want to take on too many new clients at the same time and then completely overwhelm myself. Ideally, all going well, I’ll be able to do enough to add around £500 to my monthly income. I’ll keep you posted on this!

Begin a sinking fund for the Spring.

There are birthdays and weddings galore this spring and I am going to be spending a lot of money. I will be able to keep my spending to a minimum in some areas, by gifting my help to a friend for her wedding instead of giving money, however for most of it I will just have to bite the bullet.

I’ve estimated that I will need around £600 to cover everything that is going on so I’m going to be putting about £50 aside each week. Now you can see why I want to increase my income so much! It will be a lot of work, but it will stop me panic spending in the moment and will avoid any credit card related disasters. Saving so much each week is worth it when the only other option is to go further into debt!

Make an additional £200 payment to my credit card.

As I mentioned before, my credit card is the next item in my debt snowball and I am determined to get rid of it as soon as possible. It’s been hanging over my head for so blooming long now I’d like it paid off and out of my life. Of course that’s how I feel about all of my debt, but you know what I mean.

As £200 isn’t a huge amount I’m going to do my best to side hustle this amount. Between taking surveys (if you’re new to surveys use prolific academic, they’re by far the best), decluttering more items for Ebay and a few other things it might just be possible if I get my head down.

Allow myself a treat.

If you’ve been following my journey for a while you will know that all of my goals always focus on paying off debt and saving money as quickly as possible. The ones above demonstrate that by themselves. Well my final goal is shaking that up a bit. I’d like to set aside some money for a treat for myself. Nothing big. Just something that brings me joy and helps keep me motivated when my spending is normally so tight.

My original intention was to get myself some flowers however I found an awesome deal and got some free. (I posted about it here on Instagram if you fancy a nosey). Instead I have considered taking myself to a really nice cafe or hotel for some lunch. Feet up, read a book and just enjoy a really tasty meal. That would be an awesome treat!

Have you set yourself some goals for the month? Let me know in the comments!

The UK Version of the Baby Steps

January 29, 2019

Dave Ramsey’s The Total Money Makeover is a book I have spoken about many times before. His debt payment process of using the Baby Steps is an absolute favourite amongst the debt free community and it has helped many people across the world to become financially free. It is however aimed at financial practices and products in America. The tips can therefore be a little hard to navigate if, like me, you are based in the UK. Here is my guide to the UK version of the Baby Steps.

Please remember to make sure that all minimum payments are being paid no matter what stage you are in your debt free journey.

Baby Step Zero – You Need a Budget

The very first and arguably most important baby step is to set up a budget. It will be impossible to take control of your money without first understanding where it is coming from and where it is going. Sit down on your own, with your partner or with your family and get to grips with every single penny that travels through your bank account and your pockets. Make a note of everything, long forgotten subscriptions and all!

Once you have an understanding of your current situation you can then begin to tell your money where to go. Beginning with the large payments such as rent or mortgage, bills and so on, all the way down to the £1 you pay on a Sunday morning for the paper, begin to track everything that you will be spending your money on and remove anything you no longer need/want/require.

In order to be strict you have to give every penny of your income a job. Don’t be tempted to put rough amounts into your budget or leave a “just-in-case” amount at the end. If there is something left over once all expenses are paid then that can begin to contribute to baby steps one and two and can be labelled accordingly. This method is called zero based budgeting. You can read a great article on it here.

Baby Step One – Emergency Fund

With a budget in place we now need to put a small financial buffer in place. It is time to save your emergency fund of £1000. I’ve written a full blog post about it here which explains the concept in detail. In summary, you want to save a pot of money as quickly as possible and store it in a safe but easy to access place such as a instant access savings account. Dave recommends saving £1000.

Your emergency fund is to be used only for emergencies and you have to be strict with this. It is not for shopping or booking a holiday because the funds haven’t quite arrived in your bank account yet. It is for things like a boiler breakdown or unexpected car repairs for a vehicle that you can’t live or function without.

If you do have to use your emergency fund don’t be disheartened. It has saved you from having to borrow even more money and should make you feel stronger financially. It’s not a set back! Once the emergency is handled top your fund back up as quickly as possible.

Baby Step Two – the Debt Snowball

Once your emergency fund is securely in place it’s time to put all of your focus on your debt. There are many different approaches to this, however the method that myself and the baby steps follow is the debt snowball. To begin with, compile a list of every single debt that you have. This can be a very challenging task if you have been hiding from your total but please do take the time to do it.

Now that you have your full list of debts, order them from smallest to largest. This is the order in which you will attack them. With all minimum payments already being covered it’s time to look at our budget and that “left over” amount that you uncovered at the end. Whether it is £1 or £1000, this is the money you are going to use to get rid of this debt once and for all. Let’s say for example that we have £100 left over in our budget.

To begin with you might have something that looks like this:

Debt 1 = £1500 minimum payment = £57 +£100 “left over”
Debt 2 = £2700 minimum payment = £88
Debt 3 = £3600 minimum payment = £121

Paying the minimum amounts only on Debt 1, it would take you over 26 months to clear the total and that is without interest. Increase this to £157 however and this debt will be cleared in 10 months. Much better!

Now we snowball this amount and add £157 (minimum payment of debt 1 + “left over”) and throw it at Debt 2. Of course debts 2 and 3 would have reduced by a small amount each with minimum payments, but this is just to show the method.

Debt 1 = cleared
Debt 2 = £2700 minimum payment = £88 + £157
Debt 3 = £3600 minimum payment = £121

Paying the minimum amount only on Debt 2, it would take 31 months to clear the total. With the added help of the £157 snowball it would take only 11 months!

You see where I’m going with this? Let’s snowball the payments from Debt 2 and throw them at Debt 3. Now, instead of paying £121 to Debt 3 each month you’ll pay a whopping £366 instead.

Debt 1 = cleared
Debt 2 = cleared
Debt 3 = £3600 minimum payment £121 + £245

With the minimum payments only it would have taken 30 months two clear your third debt. With the snowball method it will take you only 10 months.

This example is based on debts which have no interest to attached to them and each individual situation will be unique, however the principles to follow never change. Use the same approach and you will clear your debts far sooner than you once thought possible!

Baby Step Three – Your Full Emergency Fund

To begin with you set up a small emergency fund to give you a bit of a safety barrier against the unexpected costs that life likes to throw at us. Whilst it can be really helpful and reassuring to have, £1000 won’t last you too long if something like redundancy or long term illness was to occur. This is where the full emergency fund comes in.

Now that every penny of your debt is cleared (YAY), turn your focus to saving 3 – 6 months worth of expenses. To keep things simple you might choose to use the snowball amount that you have been throwing at your debt and put it straight into savings instead. The amount you save is an entirely personal choice based on your own circumstances. The main objective is to have enough stored away so that should something unfortunate occur, borrowing money doesn’t even cross your mind.

Baby Step Four – Invest

With your debt paid off and a healthy emergency fund in place it is time to think about the future. No matter your age it is incredibly important to put long term savings in place for your retirement and the sooner you can do this the better.

Whether you have a work place pension in place, investment in stocks, a lifetime ISA or a combination of different investments it is key to find something that will grow well and remain secure over a long period of time. I don’t personally have the knowledge and experience to be able to advise the best approach to long term savings and investments. Research into the options that will suit you personally is the best way to begin.

Baby Step Five – Saving for Family

In the American baby steps this stage focuses purely on saving for university funding. In the UK we are lucky not to have the same fees involved in further education, although it does still cost a lot of money. There are many stages of life that are costly however and if you have a family you may decide to save money in order to help them out with things like university, wedding and first home expenses in the future.

As with investing, this is a very personal step unique to each individual and so it is best to do your own research.

Baby Step Six – Paying off Your Mortgage

If you are a home owner then you will most likely still have one debt left; you mortgage. Whilst it is considered a “normal” debt as few people have the money to buy a house outright, this doesn’t mean that you shouldn’t aim to pay off your mortgage early.

In the UK it is possible to overpay your mortgage by 10% each year without penalty. I took a quick look at a mortgage calculator to see what impact that might have on my own mortgage for perspective. If I was to overpay as much as I could each year I would be able to pay my mortgage of 8 years sooner than anticipated. 8 years! The thought of being able to liver mortgage and debt free, with only a handful of bills to pay is incredible.

If you currently rent your home, this is stage where you would look to save a large deposit in preparation to buy and then progress with paying off your mortgage as soon as possible.

Baby Step Seven – Build Wealth and Give

You may wonder what there is left to do now that every penny of debt has been cleared and you have strong savings in place. Baby step seven is the stage where true financial freedom is achieved. You now have the ability to grow your wealth and give. After years of working hard to reduce the burden of debt and grow your security you can enjoy your money and share it.

Some would argue that you should “give back” throughout your financial journey, no matter which stage you are at. Whether it is donating to charity, giving back to your community or giving to your church for example. Once again this is a very personal decision.

If you haven’t yet read Dave’s book I highly recommend you do. Whilst knowing these fundamental steps is key to the process, the stories and advice shared throughout the book are also invaluable! You can find it here on Amazon. (I’d like to note that this is an affiliate link. There will be no extra charge added to your order, but Amazon send me a small commission as a thank you.)

Do you implement Dave’s steps currently? If not, do you think you will begin to in the future? I would love to hear your thought in the comments below!

Debt Payment Progress Report 13 – 25/01/19

January 25, 2019

Every two weeks I share my debt payment progress report with you. I post my new debt total and some of my money making efforts. It can be so easy to get caught up in the day to day payments, especially when my total is going down slowly. These reports help me to record my journey and stay motivated as I look back over the progress I’ve made so far!

My new total!

As of January 25th 2019 my new debt total is £14,272.74 (My starting debt total was £16,814.29)

That means that since I last updated you about a month ago I have paid off £163.13. My new total debt payment to date is now £2541.55, which I have calculated to equate to 15% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6399.46
Loan Two £5579.92
Credit Card One £0
Credit Card Two £2293.36

I feel like there isn’t too much to report on this week, but in a way that’s a good thing. After a very slow November and December work has picked up a bit and so most days have been spent freelancing. There hasn’t been much time left on the side for any surveys and the like, but freelancing pays more so I’m not complaining at all. I’m not quite breaking any income records but it is far more consistent than it was before Christmas so I’m really happy.

This year I’d really like to increase my income in order to allow me to pay more debt off each month (and of course enjoy more when the debt is gone!). On quieter days I’ve been spending a few hours contacting potential new clients via email and have had a handful of responses. I know from past emails that many of these will come to nothing, however two look very promising so I’m keeping my fingers crossed.

Going into February I have a few big expenses coming up which have the potential to dent my debt payments a bit, but all going well I will have some new clients sending work over which will help to counteract them. I don’t want to jinx anything just yet, but I’m feeling really positive about the coming weeks and months. Excited to update you again in two weeks and see where I am!

You can find my previous reports here.

How to Handle a Slow Work Month

January 22, 2019

As someone who is self-employed I have a very unpredictable and varied income and I can often have months where my abilities to pay off my debt are challenged. Sometimes my income drops a little and I have to slow down my over-payments a tiny bit, other times my income drops drastically and more extreme changes to my debt payments are needed. Here are a few tips on how to handle a slow work month based on my own experience.

Focus on minimum payments

Whilst I would normally throw every spare penny at my debt, my focus shifts completely during months when my income is lower. My priority is always to manage all of my minimum payments. Those absolutely have to be covered, both for my own sanity and of course to avoid any penalties or issues with lenders. Beyond that, anything I can afford to over pay is a bonus.

To help me keep track of these, as minimum amounts always change with things like credit cards, I like to keep a note of them on my phone. Having the numbers marked down in a place where I’m always looking means that they are top of mind. If, like me, you once tried to remain blissfully unaware of your debt you will know how helpful this can be. If you currently put your head in the sand and aren’t sure how to stay on top of things I highly recommend trying this!

Make some extra money

In order to combat the lack of invoices that I am able to send out I look for new ways to bring money in. I have spoken about Prolific Academic many times before and it continues to remain a firm favourite for earning an extra income. It’s a brilliant survey site and so easy to keep an eye on whilst I am getting on with other things during my day. It goes without saying that another big favourite of mine is Ebay.

When it comes to getting more creative with making some extra money, there is one place that I will always go. Emma Drew’s blog! Emma is known for her inventive money making techniques and even has a group on Facebook based around making money in your spare time. I’d definitely recommend you pay her a visit if you are in need of some new ideas! (I’m not affiliated with Emma, she’s just awesome).

Spend less

This final point may seem obvious, but spending less money during months of low income can be vital for me. There are a number of ways to help make this easier. For those who find it difficult to cut down spending, why not try using cash only when shopping? It will make you more aware of where your money is going and less likely to throw it away on things you don’t need.

Another great way to keep on top of spending is to track your “no spend days”. Marking your spending on a calendar or chart you will help to show you exactly how often money leaves your account or purse and you might be shocked to see just how often small amounts disappear without you realising. I tried this last year and was shocked at the results!

Plan ahead

Of course, hindsight is 20/20 and when we find ourselves in the difficult situation of a low income month, that is when we realise that we should have done more to prepare ahead of time. When things are going well and you are having a high income month set some money aside. I’ve talked about the importance of an emergency fund many times before, but this is a little bit different.

Keep you emergency fund for the unpredictable events that life throws at you and have a separate buffer prepared for the inevitable slumps that self-employment brings. Enough to cover a months worth of bills and outgoings would be ideal. I know that having that puts my mind at ease and lets me focus on increasing my work load again instead of going into panic mode.

Slow work months can feel rotten, demoralising even. One week you are working crazy hours to get everything done, the next you are sitting wondering how on earth you’re going to fill your time. With a bit of preparation however, a slow month can quickly switch from panic stations to enjoying some unexpected time off if you know how to handle it well.

Debt Payment Progress Report 12 – 11/01/19

January 11, 2019

All of a sudden we have arrived in a brand new year. It has been almost an entire month since I last did a debt payment progress report. After I got caught up in the festive season I decided to just ride the wave instead of fighting against it. I took a break from writing, but not from my debt journey. Let me catch you up on where I am now!

Debt payment progress report – my new total!

As of January 11th 2019 my new debt total is £14,435.87 (My starting debt total was £16,814.29)

That means that since I last updated you about a month ago I have paid off £184.16. My new total debt payment to date is now £2378.42, which I have calculated to equate to 14% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6399.46
Loan Two £5743.05
Credit Card One £0
Credit Card Two £2293.36

If you’ve been following my journey closely you will know that it has been just over a month since I last updated you on my debt free journey. As you can see, I have made some progress on my debt total, but not by leaps and bounds. Unfortunately December was a very expensive month and whilst I was able to make all minimum payments I couldn’t afford to throw anything extra at my debt. My totals have all gone down however thanks to interest the dent I have made in the past four weeks feels tiny!

You can probably tell from the way I’m talking in this post that I’m disheartened and a bit frustrated. I stopped posting for a while partially because I was really busy around Christmas and things, but more so because this debt free journey is bloody hard. I really do enjoy sharing my progress because it motivates me to carry on and I know it helps some of you too, but sometimes hiding away for a bit feels like the best option.

Now that we’re well and truly into the new year I feel like I’m out of my slump and ready to take on 2019. This year has so much potential and I’m really excited to see what I can achieve if I keep moving forward, even if it is slow sometimes!

You can find my previous reports here.

Your Debt Diary – Jodie – One Small Home

December 12, 2018

When I first began following the Debt Free Community on Instagram I was drawn in by the stories everyone would share about their debt free journeys. I find it fascinating to read about the progress others are making and also reassuring to know that I am not the only one in my position.

Your Debt Diary is a guest blog series by money bloggers and members of the debt free community for My Debt Diary. Each week someone new will share their debt story. This week Jodie from One Small Home shares her story of becoming debt free and the action she took to make it happen.

What stage are you at in your debt free journey right now?

I finally paid off my credit card debt last month!

What is your debt total?

It was just under £2,000.

What is your “why”?

I just decided one day it was time to get my finances in order. I’d been carrying around this credit card debt for too long, just paying the minimum payment every month. It got to the point that I couldn’t even remember what I’d bought on credit and if I thought about how much interest I’d accrued and paid – well it made me feel sick. It really was time to take my head out of the sand.

Are you following a specific plan or method?

This kind of happened around the time when I decided to have a good sort out and declutter at home. I live in a tiny flat with hardly any storage and I just had too many things that I wasn’t using. I thought I’d try to sell what I could to pay off my debt.

So, I sold a lot of things from makeup, to clothes and even some furniture and jewellery on eBay. I did try other selling sites such as Mercari and Shpock but I had far more success with eBay. I even did a couple of car boot sales with a friend – neither of us made a lot of money but we more than covered our costs, got rid of some stuff and had a laugh along the way. I did have some books, CDs and DVDs that I no longer wanted – so I sold what I could via sites such as Zeffirelli’s, Music Magpie etc.

I started following money bloggers on Instagram and learnt about side hustles such as survey sites, scanning receipts etc so I gave those a go. I’d already been using a cash back site – I just became even more vigilant about using it.

It was all quite piecemeal but every little bit seemed to help and it was so satisfying to see my debt decrease month by month.

What challenges have you faced along the way?

Quite a few things such as finding the time to declutter and list things on eBay, when sales seemed to stall. And actually the last £300 or so was paid off by cash back, I was amazed how quickly that had built up so I decided to use it to just clear the debt off once and for all.

I still have stuff to declutter so I’ve decided to try to boost my savings by continuing with the selling and the side hustles that pay ok and aren’t too onerous to do. I’ll be honest, that I do feel my finances should have been in better order by this stage in my life, but I do feel better that I’ve started to take control.

I’d like to thank Joide for sharing her story in today’s post. Please make sure to visit her Instagram at One Small Home.

You can read last week’s post here. If you would like to share your story with Your Debt Diary please leave a comment below with your email address or Instagram and I will get in touch. You can find me on Instagram here.

My Goals for December 2018

December 3, 2018

December is here, the final month of the year and my favourite thanks to Christmas, far too much chocolate and lots of time spent with friends and family. It scares me to realise how quickly time is passing and so I continue to set myself targets, both financial and personal, to help me maintain focus as the days flash by. Here are my goals for December 2018.

You can read my goals for November 2018 here.

My goals for December 2018:

Earn another £100 of side income.

Last month I set myself the goal to make an additional £200 of side income. I was on an absolute mission and after getting stuck into surveys on Prolific Academic and selling some personal items on Ebay I smashed that goal. December is set up to be a busy month with lots of plans for Christmas and so I’ve set myself a lower goal of £100 to suit the free time I will have.

For some, £100 will not be a lot of money. For me, it will mean covering the cost of two dinners. I am very lucky to have two close groups of friends who I make a point of seeing every year. This does mean however, that I have two expensive nights of dinner and drinks to pay for. This extra £100 will cover these and allow me to focus my lower income on my bills. If you’ve been a reader for a while you will know how important this is to me in order to have a debt free Christmas.

Keep spending to a minimum.

This goal might seem like a bit of a cheat as I don’t have to do anything as such, however December is always such an expensive month for me and as such I’m making it my goal to only spend on necessities. I don’t need any more decorations or clothes for nights out. Our kitchen cupboards are always well stocked without all of the extra Christmas themed treats. The gifts I have chosen for everyone are enough and I don’t need to keep adding to them just for the sake of it.

I don’t mean to be a Scrooge of course. Christmas is my favourite time of year and I will enjoy every ounce of it. My celebrations will just be more budget friendly than usual.

Make an additional £100 payment to my credit card.

If you read the results of my goals last month you will know that debt payments were very low. My work load has dropped quite a bit, which it always does over the winter months, and so I don’t have as much income left over to pay towards my debt total. Never the less I want to continue to make some progress on my credit card debt.

To keep things manageable I’m setting myself a goal of £100. It’s small but pushes my debt total down which is what matters. The smaller my total is the less interest I have to pay too!

Make my tax payment.

Over the last couple of months I have been working hard to save up my tax payment which is due in January. Lesson learnt, starting January I will put the money away with each invoice that comes in instead of leaving it to the last minute! Now that I have saved what I am due it’s time to make the payment.

Tax returns are stereotypically tedious so I am setting this as a goal to ensure that I don’t put it off. Ideally I’ll set aside some time this week to get it sorted out, but worst case I know I need it completed by the end of December. As much as I hate the process it will be a big weight off of my shoulders going into the new year.

Have you set yourself some goals for the month? Let me know in the comments!