Author: Rob

New Budget

~ Rob

Yes you guessed it. It’s new Budget Time. Yes I know the budget screenshot is missing because it had some errors in it. Let us pretend it all went well. I warned you I suck at budgets. My slide line incomes seem to have hidden that the budget was out on the columns. I suck at using Excel too :-). Luckily all the stats in my left box are accurate and correct.

I’ve had a great few months, all my debts are paid apart from my student loan which has £40,110.44 still owing, the last bit of my 2nd credit card and £3,500 to Mum and Dad. They have no idea what a mess I was in financially. I want to surprise then by paying them back the whole amount in cash.

Now that I’ve nearly paid off my credit card and the car loan is gone I feel I can tell my family what I’ve been up to in the last eighteen months or so. I still have my credit card but the balance will soon be £0 and I’ll use the card to track expenses and pay it off in full each month.

I have undergone an incredible change over the last year. This simple life and frugal living is the way forward. Life seems much easier, as my debt goes down I’m starting to feel “free”.

I’ve outgrown overspending and feel ready to settle down. My budgeting isn’t perfect or tracks every single penny. Nothing is concrete but I can work with it and keep on track.

I’m happy to have made a start. Try it yourself and see what feels right and see what comes next. My next targets are to finally start saving. So that’s the plan for the next 12 months.

The End Of My Credit Card

~ Rob

My relationship with one credit card is finally over. Yesterday I made the final payment and closed the account. It was a happy day and an important milestone. I’d had that card for 5 years and it was generally maxed out for 4 and an half of that.

Not receiving any credit card statements and making any payments will feel strange after so long. It’s a strangeness that I can live without. It’s too easy to get reliant on using debt that you almost do it without thinking.

Need or want to buy something – out comes the credit card. Want to treat yourself and short of cash – out comes the credit card. This is the habit and bond you need to break. Your credit card isn’t doing you any flavours if you can’t clear the balance every month. If you’re in this position you need to fix it.

Now is the time to detach from using your credit cards and rid yourself of the hold they have on you. Clearing the debt balance will opens up new possibilities, for a start you’ll have more money and be happier without the burden.

Being closer to debt freedom is a great feeling. Tonight I’m going out to celebrate and the first round is on me.

I’m done with credit cards but not done with debt just yet. After the victory celebration there is still work to do and with every pound that’s paid off I sense that life will only get better.

Throwing money into your debt lifts the financial burden and makes money management so much easier. Bigger payments means it will happen faster. From here I intend to aggressively pay off my loans and keep shrinking my debt levels.

I want less debt and more wealth.

Budgets Comparing Old to New

~ Rob
Old budget and new budget

I’ve been launching a couple of other websites and being working on them other the last month or two and I realised I haven’t published a budget on here for a while so here is the latest version compared to my first one. (sorry it’s a bit squashed)

As you can see lots of changes and saving having taken place and debts have been taken off the debt section. I’ve paid off the expensive credit card, car loan and my overdraft.

Entertainment is finally back on the list but I went over budget by -£66.00. Naughty, Naughty…but I think I’ve earned it.

I Have Money In My Old Savings Account

~ Rob

Today I checked a savings account from my old bank and was surprised to find it has nearly £278 pounds sitting in there untouched and unfunded for years. It was going to be my emergency fund but I opened a new savings account and forgot about it.

After some careful thought I’ve decided to empty my savings account. Why I’m getting rid of my emergency fund goes against what I’ve read about personal finance however I think putting this money into my debt will make me bigger savings than leaving it in the bank earning a pittance.

Leaving that money there earning next to no interest doesn’t make any sense, especially since I’m paying higher interest on my debts and the UK inflation rate is higher than my saving interest.

Some people many think it’s not a smart move, yet for people in credit card debt it makes logical sense to spend any savings on your debt. Therefore today I will withdraw all of my savings and pay it into my credit card that is costing me the most.

We are taught and recommended to open a savings account to earn interest yet in these economic conditions it’s hardly worth it. While saving money in the bank is nice my purchasing power is fading away. Every day that money is worth less and rots away a little. Compared to my debt having a savings account is actually losing me money.

The best course of action is to closed the account and put the money into my credit card debt. I’ve analysed the risk and hopefully I won’t get the sack, get made redundant or experience any unexpected emergency like anything breaking down or needing replacing.

The plan will then be to rebuild my emergency savings fund after I’ve wiped out the debt on both my credit cards. Let’s hope am not given my P45 on Monday :-/

No More Smoking with Nicotine Gum

~ Rob

Thanks to nicotine gum I’ve quit smoking. I finally wanted to be able to walk up hills and run without feeling out of breathe, knacked and coughing up a lung. Smoking has been dragging back my fitness and finances for years.

Using nicotine gum I’ve not had a smoking stick for a week. All cigarettes, lighters and the ashtray are in the bin. I admit I’ve missed the morning cigarette with me coffee and still get cravings but when they hit me I pop in a nicotine gum and think of England.

So far it’s working, however some of my friends still smoke and doubt how long I’ll last. Hopefully with a combination of nicotine gum and occupying my mind I’ll be able to reach a whole month without smoking.

I was thinking about trying vaping with an electronic cigarette however I went with the gum so I did have to go outside to vape with real smokers. Smelling it doesn’t help me and I’ve succeeded (so far) chewing the gum.

The statistics say that you’re more likely to quit smoking and succeed using some form of nicotine replacement therapy (NRT). I have tried to quit the habit before but not lasted very long. The nicotine gum has helped me cut down and relieve my cravings before I had my last cigarette and stopping completely.

It works by releasing nicotine in to your gums without all the other bad substances when inhaling tobacco. You still get your nicotine fix without the other dangerous chemicals. You chew it then place it between your teeth and cheek like a hamster would store food in its mouth. When the flavour fades chew is again and repeat until all the flavour has gone.

The nicotine goes into your bloodstream and makes the smoking cravings go away. Make sure you read the instructions, when I first tried it I chewed too fast and it give me hiccups. If you smoke more than 20 cigarettes a day then use the stronger 4mg strength, you can also buy it in 2mg and it comes in various flavours including original, fresh mint, fruit, liquorice and peppermint.

Chewing Nicotine gum is working for me and although I’m chewing around 20 pieces a day that’s got to be better than smoking fags. Using the gum is helping me with the withdrawal symptoms. If you are trying to stop stopping I recommend giving them a try to help make quitting easier.

After a month or so I plan to reduce to 2mg and then quit chewing the gum. I’m also trying to avoid the situations when and where I would smoke more, which is usually down at the pub so I’ve also being on a mission to avoid drinking beer.