Edited title to reflect change from £5.57 to £5 a day as per this post.
I am in something of a pickle financially.
My new budget tells me that, after all my debt repayments and essential bills such as gas, electricity, water, council tax, mortgage, I have £150 per month, or £5.00 a day to live on!
With inspiration from such gurus as Sugarmamma.tv, moneysavingexpert.com and lunajaffe.com I am resolved to deal with my financial problems, to focus on the long game and to endure a tightened belt for a greater, debt-free future without those horrible money anxieties that prevent a joyful life and make working hard at a full-time job feel so unrewarding and thankless. Maybe it will hurt now, but I will thank myself later.
I have been overspending for far too long, accumulating thousands of pounds worth of debt. To tell the embarrassing truth – about £33,000. And that’s not including my mortgage or my personal contract plan on my tiny city car; debts which I consider ‘sensible’ debts rather than the £33K of indiscriminate, irresponsible and unfettered spending over the last four years, and the ridiculous interest charges into the ‘bargain’.
I have decided to take back control of my money!
£5.00!!! That’s for food, petrol, clothes, make-up, toiletries, skincare, household items, socialising, gifts, and even those annual costs like road tax, Amazon Prime etc must come from this £5.00 per day!
How on earth?
It’s a big challenge, so how will I manage? I will remind myself every day that I only have £5.00 to spend. My main outgoings are covered by my overarching monthly budget. But if I want anything else, like food, loo roll, petrol, jewellery, a Christmas gift for a loved one, then it must come from my £5.00 daily allowance! All of these will have to be purchased within The Fiver Project rules.
I am allowed to rollover any unspent money every day, indefinitely. Any accrued surplus after 365 days will go into my savings account for emergencies, pay down debt, or indeed, for joyful (named) pursuits which I can feel I’ve truly worked and saved for. By named pursuits I mean things that I have stated an intention to save for. Something I have longed for and know I will love and appreciate.
I am not allowed to ‘lend’ today tomorrow’s money. No buying on tic!
The only exception is in extremis – say the boiler needs some work. In that case, I can borrow from the rest of the month but I have to pay it all back by not spending my daily allowance until I have done so.
I will be sharing my daily spendings and rationale here in a daily blog, as well as my strategies for saving precious pennies. This will help me learn my patterns, see what triggers there are and enable me to work through these issues and share my conclusions with you, for you to consider against your own set of circumstances.
After 365 days we will see if I have accrued anything at all to put into savings or pay down a lump sum on debts, and whether I managed to stick to the rules.
Every day, I will thank my blessings that I have what I have, and show gratitude. And remind myself that, by clearing my debts, by saving money and maybe even eventually creating wealth, I can do more to help those in need. And maybe this blog can help others too.
365 days, £5.00 a day! Can I really do this? Read on and find out!
This about section is an abridged version of my first blog post.