I’m addicted to reading all the finance/frugal/saving/debt pay off etc blogs I can find. So motivating to keep on saving and learning about making money work for you.
When I read this blog about savings tonight
I made a snap decision.
That 57p a day? Let’s cut it. Gasp!
Well, it hardly makes a difference as spending money, and it means the project is 100% The Fiver Project if we cut the 57p. That 57p a day will work far harder as an additional £17 pcm saving or debt repayments.
Currently, with my huge debt repayments from my appalling overspending habit of the last few years from which I am finally cold turkeying, I am only able to put aside £20pcm in savings.
One tenner goes automatically from my salary into my credit union savings at source along with my credit union loan repayments at source (a wopping £360+). Another tenner goes from my monthly income by direct debit into saving.
If I add the new £17 to that tenner, that makes a total of £37pcm which could be saved per month. This doesn’t include my pension contributions from my salary which will go some way to ensuring something of an income after I reach retirement age. But ideally, I will retire from the rat race early and make my own living once I have saved and invested. But first: debt repayments. Those are a long slog in themselves before the real financial independence projects start.
So £37, isn’t quite the 20% of my salary Making Sense talks about in her blog. That would be a nice £433pcm. I will be able to easily afford that once my debts are repaid, since I am currently spending far more than that on debt repayments anyway. It will feel far more rewarding paying it towards freedom but for now I must focus on debt.
I clearly need to pay off debt before starting serious savings anyway. So for now I will tuck away that extra 57p a day with the tenner direct debt and divide it between my two 0% credit cards so they are nearer paid in full by the end of the 0% period.
So, the original amounts were £61 on Baraycard, £25 on MBNA. Since MBNA runs out sooner than Barclaycard I shall go top heavy on MBNA.
That’s 17+10+ 25+61= 113 to put towards debt instead of saving. Put 25pcm on Barclaycard for now, leaves 88 to throw at MBNA until it runs out (then lump sum at end with a new budget).
I will update the budget and spending count tomorrow, change direct debits on credit cards and stop saving for the time being (except obligatory tenner for credit union) until debt is smashed. Then use ALL the money I will be used to using for paying down debt, straight into savings.
I have been recovering from all things funeral this week, so have got a bit behind on updates.
Hurrah for bedtime resolutions.