The day I paid off my debt

Today I made the final payment on my credit card. It felt scary to do it. I had all kinds of anxiety thinking things like “I’m going on holiday at the end of the month, do I have enough?” Well, the answer is yes, I do have enough. It’s a feeling I’m not used to having, but I have enough because I’ve sorted out my financial life.

 

There have been so many times in the past 6-7years where I’ve been struggling to get through the month, or worse just spending recklessly It’s deeply ingrained anxiety that I’ve lived with for years and now, finally, I have managed to break out.

 

Maybe the magnitude of what I have achieved has not sunk in yet, but I was expecting to feel different. People say it is like a weight being lifted. I agree it does feel that way. However, today the weight on my back was very light compared to the one in January of this year. I have been breaking chunks off every month since then and the weight of debt has been lightening. Today was the last piece and one I’ve been looking forward obliterating for a long long time.

 

Now I have done it and, yes it feels great. I must be 100% honest and state I am not debt free. I still have my car loan and at this point, I’m happy paying that out until it ends in Feb 2020 (I love the car too much) and the car is now worth more than the loan. But all the other debt is gone.

 

The road into debt

 

To mark the occasion, I would like to reflect on how I got myself into the mess I found myself in. As with any story or struggle, it is not one that happened suddenly, but gradually over time.

 

I took out loans for sensible things like education to pay for my law conversion course. I then borrowed a lot to take 10 months out of work to study for the Bar. All worthy endeavours, but expensive. Add to that a general issue with not saving enough because there was always pressure to spend to go to weddings, holidays, drinks and meals out with friends resulting in me struggling to save any money.  I’m glad to say that those days are in the past.

 

Additionally, I had to take out loans to fund a project in the building I live in which is a leasehold property. Of course, the project overran and increased in cost. That has been a struggle and a drain on my resources, however, it looks like I won’t have to pay anything for a while now thanks to a court ruling. That has cancelled £7000 of money that was demanded by my landlord but I refused to pay. I’m only kicking myself that I paid anything at all as I could have not paid at all and been about £10000 better off.

 

In 2016, I lost my father and grandmother within 2 months. That also led to a spiral of spending pointlessly – I bought, or rather entered a PCP agreement to get a BMW to cheer myself up. It did cheer me up and gave me great freedom as I had not previously owned a car for 6 years. Sometimes you have to live a little… but yes I could get a cheaper car.

 

After completing my studies last year, and I started earning again in September 2018, I began to think about the debt. I couldn’t see a way out. I got a tax refund and paid off the rest of my government student loan (£2400) before I started the new job so it wouldn’t come out of my salary.

 

I then came across an article on FIRE in the NY Times which really inspired me. I heard about all these people, some younger than me, who had retired. I couldn’t believe it. How would I ever get there?

 

I started in earnest and made some rookie mistakes. I wrongly started investing in the stock market around November 2018. This was a mistake I realised when reading Mr Moneymustache’s post about debt emergency. The debt should have been my priority. https://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/. I cannot agree more with his philosophy here and urge you to do the same.

 

His philosophy changed my mindset completely. This was a blazing emergency and I needed to change my life no matter what. Over the course of a month, I started to add up all the cards, loans and overdrafts I had. It was frightening. I was about £39,000 in debt (£15,000 car loans, £16,500 unsecured, £1500 overdraft). This was unsustainable. I was paying around £800/month on loan payments alone.

 

I used the tools at my disposal and paid off one of the loans with my savings, then paid off a loan with a 0% credit card offer to save around £500 of interest a year. I also made a stretch plan to pay that card off by June. I cut my expenses back by hundreds a month. https://playingwithfire.uk/2019/02/

 

Every time I got paid, I put the money into the credit card (£1500-1800 a month) so I couldn’t spend it and held on tight for the rest of the month. There were some dark days as I had only a few pounds left in my account at the month’s end. I stopped going out, eating out and skipped holidays. I cooked meals at home (turns out I love cooking). It was not the best fun I have to admit. I viewed it as a sacrifice to get me out of the hole I had dug myself over the years. When things got tough I looked toward the day I would be free and that kept me going. The first few months were the hardest as they were during winter. Lots of PS4 games were played and thank God for Red Dead Redemption 2. As things got easier I allowed myself the odd meal out and the odd pub visit.

You probably want to know about the numbers. Well, I get £4005 a month after tax in salary, another £500 in rent from renting my spare room out (tax-free), and £500 to cover expenses from my girlfriend (she lives with me in London).  My monthly expenses are about £2700 all in (and could be less, to be honest). I tried to put every spare pound into paying my debt. I never could find the full £2300 as I always overspent but I got close each month and maybe with the Emma app I will!

Here I am, still in June having achieved it. I have paid off £16,600 in 5 months and had a further £6400 of debt cancelled as it was unlawful. Gone. Done.

Screenshot 2019-06-30 at 14.05.22

debt graph jul19

I thought it would take literally years to do this. But treating paying my debt off as a blazing emergency worked. All my efforts for these 5 months have gone into saving money and paying it down as soon as I got my paycheck.

 

It’s been an incredible journey and one I’m glad to have shared and held myself accountable to by writing this blog. It had kept me focused on the goal.

 

I couldn’t end this post without thanking my girlfriend who has taught me so much about frugality and self-discipline these past few months. She has supported me through this period of change and now we can have a healthier and happier life together.

 

What now?

 

The next stage could be to sell my car. Then I genuinely would have no debt (other than my mortgage). But I do like that car… no, I love it.. but selling it is the sensible thing to do. Let us see.

 

Next month I shall start building a buffer of savings of around 3 month’s worth of expenses. On my current budget that is around £7000-8000. I will target about 4 months to get there.

 

 

 

Emma, my new best money friend.

Budgets are fantastic tools to allocate your monthly income against certain items and keep on track with your spending. I have used budgets for many years and they have indeed helped me manage my money better.

I have an Excel spreadsheet that has my income at the top from which I deduct all my expenses, leaving me with a remainder figure. At the moment that remainder is in theory quite large thanks to all the cutbacks I have made in my quest for financial freedom. But the quandary I find myself in is that the remaining money I actually have left always seems to fall short of this hallowed total.

When I budget, I have all the usual categories such as utilities, car, entertainment etc but I have two overarching types of outgoings which I call ‘fixed’ and ‘unfixed’.  In the fixed category I have expenses such as electricity direct debits, council tax, and mobile phone account. The unfixed category is the one that I have eating out, groceries and lunches. The idea is that these expenses will vary on a monthly basis and are unfixed.

The thinking behind these two categories was to differentiate between fixed regular monthly payments that I must make every month and unfixed discretionary spending that I have always struggled to keep track of and control.

Over the years I have tried to keep track of these ‘unfixed’ categories and have always failed. I either get bored or don’t want to take the time to track my expenses. I have had various short periods of time where I have tracked it but that has always fallen away and I find myself back at not tracking these and simply assigning some broad sweeping category called ‘eating out’ or similar. Even if I did the exercise of adding up my expenses, by the time I get round to it, it would be too late and I’d have already spent the money and blown the budget.

I have long since been on a hunt for a tool that can assist me with assigning expenses to my budget and actually keeping track of what I’m doing as I go.

Enter the app called Emma. I downloaded Emma for my iPhone about three weeks ago and have been using it on a daily basis.

The idea is that you give it access to all your accounts and credit cards and it keeps track of everything and automatically assigns items to a budget you input into Emma. I must say so far so good. After some initial troubles getting my Barclay Card account on there, it has been very easy to use. I can open it and see my balances live and also all my outgoings. It does little reports every week to highlight spending and alert you to areas you may have splurged.

I put the budget data from my Excel sheet into it without much trouble whatsoever. On the pro version, there are more budget categories, but to be honest, I feel I can live without them for now. I can see me buying the pro version at some point

I have not had such up to date spending data ever. I can see that I have £51 left of my ‘eating out’ budget with 8 days to go until the end of the month. With that kind of insight into my spending, it really does help me make real decisions on my spending.

Emma also removes the hassle of logging into multiple accounts to check balances and has that data in one place. I think this is one of the best features and certainly makes that leap of faith that one must take to give over all your banking passwords worth it.

Another useful feature in Emma is it works out how much money you have left before you are paid again. I think this is the clever bit as it features prominently on the first page as a huge reminder of what not to spend.

In the era where most transactions are via contactless payment, this is a great tool and one I would highly recommend to anyone wanting to take control of their budget and expenses.

There is also an investments section that is clearly a very useful tool in the same way that the bank accounts are. Sadly, none of my investment accounts is supported and I have not really delved into this section in great detail. However, for the simplicity of having all your pension and investment account in one place, I think Emma is great.

I am at a point after 5-6 months of trying FIRE that my finances are in good shape. I do believe that if I had met Emma before, I would have become far more aware of my finances and taken action much sooner. By action, I mean living with my means, actually knowing how much money I have to spend and feeling in control.

I would thoroughly recommend giving Emma a try.

Summertime is coming (allegedly)

Here we are in mid-June already. The 12C and pouring rain would lead anyone to believe it was mid-March, but that’s the UK for you.  It’s been a busy few weeks for me as I have travelled to Luxembourg several times for work and also had numerous new ideas and ventures come my way.

Firstly, the debt situation has continued to improve. I now only have £1440 of credit card debt left to pay. I was immensely proud of myself for getting this far and feel like this period of hard-core debt reduction is nearing its conclusion. That is getting me excited about starting to invest and save money.

I have been sitting back and reflecting on the journey since January this year. I had roughly £17,000 of loans, credits card and overdrafts. Now, of that, only £1440 left. I can’t believe it. I will write a dedicated article to mark the day I become debt free which I hope is fast approaching.

Secondly, I have started a side hustle. After the bitter disappointment of having 20+ rejections for pupillages, I realised there was nothing stopping me from setting up a legal advice consultancy. So, along with a former classmate, that’s exactly what I did. I have set up a legal consultancy specialising in construction law. I’m hugely excited about that and look forward to our first clients. Fingers crossed!

Lastly, in parallel, I have been quietly sending out my CV to various companies which have yielded me several interviews. It is always hard to know how much to ask for, but I think asking for at least 20% more than what I am currently on was a good guide. There are other factors to consider such as job security and type of work I will do. However, I do think it is my time to maximise my return and cash in. The more I earn, the quicker I will reach financial independence.

The situation at my current work has barely improved and I think I don’t need the stress of not knowing whether the company will be around much longer in my life. Working somewhere you are almost surprised when you receive your paycheck is no way to live.

So it’s been a very productive few weeks for me. I truly believe that focusing on the fire goals has allowed me to focus on other areas of my life for the better.

May update

May has been a long month by all measures. Many things have come to a head and I’ve felt both directionless and demotivated at times, and extremely excited about the future at others.

Firstly, the issues with the company have made me reassess what I am doing career-wise. I think I’ve mentally checked out of the company, and although I have half-heartedly applied for new jobs, it’s only a matter of time before I do so properly. I just feel there is no point in working hard for a company that is on the brink and is being run so irresponsibly. The atmosphere in the company has become rather unstable and certain individuals are attempting a power grab (the chairman’s son-in-law). As he is a deeply unpleasant man and is unlikely to be going anywhere, it only leaves me with one choice long term. In the meantime, I will keep working and collecting the dough.

Secondly, a visit by some antipodean friends of my girlfriend gave me some great ideas. They had given up their jobs and were planning on travelling round Europe in a camper van. It will be 3-4 months of adventure and fun. Although they were not officially doing ‘FIRE’ they were certainly far more financially free than me. It goes to show that at age 28 and 26, with careful saving, they were able to undertake this great adventure. They don’t do very high paid jobs but decided this was a goal and lived a lifestyle that would allow them to reach the goal. They lived in a shared house in Melbourne and didn’t eat out much. Now they have enough money to give up work, buy a camper van and live carefree for a bit. Well done them.

The great idea was the result of a side hustle that my friend had where he ran a website and provided services to contractors making £16,000 in the process. I realised that I could do exactly the same thing with my skills albeit, providing a different service. So I plan to set up a company of sorts and do it part-time. Should it take off, I would do it full time. Watch this space…

Debt progress

I have been paying off my debts steadily. I have to confess that I didn’t mention a £700 credit card bill that I let sit since February in any of my previous posts (mainly because I was ignoring its existence). So that was disappointing, but it was there and is now paid. I also paid £300 to my other loan which got me below the £3000 mark. This was a huge achievement and the end really is in sight.

I feel like I am 2-3 months away from clearing my debt. This is slightly longer than I had anticipated but I have felt the need to splurge a bit this month. A trip to Bath for the weekend, eating out a fair bit, and a trip to Scotland to visit my mother have eaten into my balance. However, they were all needed and enjoyable. I didn’t use a credit card to pay for any of them and I still have money in my account at the end of the month AND I paid £1000 of debt off. Not bad.

I do feel I will have to reign it in a bit this month however and really get to the end of the debt, but overall I feel that my finances are under far greater control than they ever were before.

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Dream campervan

 

 

 

Some anxiety

anxiety.jpg

The past three weeks have been rather difficult for me. Despite my genuine excitement at being able to ‘see the light at the end of the tunnel’ for my debts, some external forces have upset this happy FIRE ship.

On Tuesday shortly before Easter, when I arrived at my company’s office, there was a bouncer on the door and a notice saying we could not go in. Rather perturbed, myself, the Chairman and other employees didn’t really know what was going on.

I work for a small consultancy business with big ambitions, and one that has taken some big risks. Apparently, historic projects had lost some money and the company had not paid the rent in a misguided attempt to juggle cash flow. Big mistake; the landlord had kicked us out.

After several days of working from home, we were allowed back in at greatly unfavourable terms and I believe the company had to pay rent in advance.

Clearly, this caused a great deal of anxiety and stress for myself and everyone else. The kind of thoughts running through everyone’s head were did the company have enough money to pay bills? Would we be paid? Was the company going bust? They assured us it would be fine. I wasn’t convinced.

I am delighted to say that I got paid on the 30 April and I am feeling a bit better about it all. I may still look elsewhere for a job, but as I have just won my first new client, I am reluctant to pack in all that hard work. I left the security of big corporates to experience risk and reward and while I never expected to hit these lows, it is not always going to be plain sailing.

This remains an ongoing saga.

The fall out

What does this mean for my journey to financial independence? The answer to that question is threefold.

Firstly, It has somewhat knocked my confidence in what I am doing. The aggressive approach to paying off my debts effectively is pushing me to my limit. By the end of the month, I had £5 left in my account. I am refusing to spend on a credit card or take an overdraft. I made it to the end without breaking or missing any bills, but it didn’t feel great. I desperately needed the paycheck to stay afloat.

Secondly, I knew that using all my savings to pay off my debts was risky as it left no room for manoeuvre. I only have £200 in my savings which is not very much at all. I was feeling good as I was making such fine progress in paying off my debts, but it is a stark reminder to leave enough for emergencies. I had thought about this and reasoned that if something bad happened, I could use my credit card. However, my mentality has changed so much since starting FIRE that the thought of adding to my credit card and undoing the good work so far almost made me feel ill.  Perhaps leaving a months salary in the bank may have been smarter and letting the process take a couple months longer might have been a better move.

Thirdly, and most importantly, the whole episode has made me more determined to succeed at FIRE. The timing of this event was particularly bad as I have taken a big risk to clear debt leaving me with no reserves, but if this happened in 12 months time, I would have a large cushion of savings and investments on which to fall back. That thought alone is motivation for me to keep going. It is the quintessential reason that I am doing this so that I don’t need to rely on my job and other people who may be inept at running a business, for my livelihood.

To conclude, it seems that in taking a risk to clear my debts, I’ve accidentally put myself in the exact position that FIRE aims to get me out of. I always viewed this phase as the most painful part of gaining FI and it has been more painful than expected for reasons both within and outside of my control. I will persevere, but perhaps with more caution until I have a significant buffer behind me.

Feeling the pain

Last week I paid off £1200 of my credit card. It felt good to be making progress, but also scary.

I’ve taken the approach that I must clear these debts as fast as possible with a target of 3-4 months being a stretch target. I’m anxious that I may be biting off more than I can chew. I now only have £1172 in my account to last me the month. I know I have at least £650 of payments coming out before the next paycheck.

However, I am owed £500 in rent and have £400 of expenses to clear. In theory, this is a cash flow problem. But because I have cleared my entire savings to clear the debt last month, I have no buffer. It also occurred to me that when I switched bank account I opted not to have an overdraft. That means that I paid off about £400 of overdraft.

I also had the expense of getting my car serviced which set me back £550. It needed to be done to keep the plunging value of my vehicle from going into free fall.

So yes, I have made this difficult for myself. I’m hoping that self-discipline will get me through. I also wish I’d done my sums better. I also believe that this is a short term pain for a long term gain.

Once I have cleared these debts, I will be saving £1200 per month. By Christmas I should have £10,000 at least in savings. I look forward to the day I can relax about my finance.

Keeping my eyes on the prize of being debt free and being able to invest is keeping me going.

January/February 2019 – financial situation

I want to track my progress publically for two reasons; one, tracking will allow me to see the progress I have made, and two, it will motivate me and hold me to account knowing I have told people what I am planning to do.  I know it’s February, but I wanted to start at the beginning of the year.

Assets:

Flat: £450,000

Pension 1: £94,000

Pension 2: £4,382

Investment: £1,800

ETF: £961.00

Savings: £8000

Debts:

Mortage: £259,000

Professional studies loan: £7000

Bank loan: £8000

Car loan: £12000

As you may see, I am swimming in debt. It’s not big and it’s not clever.

So what did I do about this precarious situation?

I contacted my bank for settlement figures for both the loans. I used my savings to pay off the professional studies loan. I then used the remaining £1000 in my savings, money from my current account, and £6000 on an interest-free deal on my credit card, to pay the bank loan off.

As of 16 Feb 2019 my situation is:

Assets:

Flat: £450,000

Pension 1: £94,000

Pension 2: £4,382

Investment: £1,800

ETF: £961.00

Savings: £70

Debts:

Mortage: £259,000

Credit card: £6000

Car loan: £12000

 

 

 

 

Why am I doing FIRE?

I am in my mid-thirties. I didn’t really think much about the future when I was in my twenties and I think my interest in FIRE is part of a realisation that life is rather short and there is a limited time to do what you want. Of course, I thought of the future, but it was perhaps a fantasy future which was what we were taught to aspire to, rather than the reality.

I have led a fairly interesting life and have experienced things that the majority of people my age may not have (marriage, divorce, living overseas, loss of a parent). I have also had some extremely positive things happen to me such as returning to university to follow my dream of becoming a barrister (that is an ongoing dream!).

By stopping work for a year, I stepped off the treadmill that so many people my age are on. That feeling of constant pressure to get to the next stage of life. The route set out for us which is seen as a success (school, university, job, marriage, house, car, kids… then what? slow death?).

I was blown off course by becoming divorced at age 30. I won’t dwell on that, but at the time, it felt like a massive step backwards in what had until that point, been a life that felt like I was boosting forwards. I was depressed for some time, but as they say, it made me stronger and a better more compassionate person.

I think realising that taking a step backwards wasn’t the worst thing that could happen was a real eye-opener for me. I realised that I could recover from it, and come back stronger. I also believe it gave me the confidence to take action and pursue an alternative career at a later stage in life.

More recently, finding out about FIRE, which is essentially a movement that encourages people to minimise expenses and live frugally, was appealing as I had given up a well-paid job to return to University.  I had no money and had become used to living the frugal life. When I got a job, I thought, what if I keep living this way? I have kept things under check and found that I am not missing out at all. Most of my friends these days have bought houses and are mortgaged to the hilt with kids in tow.

In the past, I would be eating out 5 times a week, going to the pub and spending £50 a time 2-3 times a week. Did I have an alcohol problem? I may have, but if I did, I don’t now.

I have a mortgage, but no kids, and feel my salary is more than ample to live off. I don’t eat out that much anymore. I don’t eat takeaways. I learned to cook and eat reasonably healthily. I go to the pub and drink moderately. All these subtle changes have reduced spending compared to what I shall call ‘pre-university’.

So I am not doing a full FIRE thing yet, but I am attempting to follow its philosophy. The basics of minimising spending and saving as much as possible are no-brainers.

I’m at the beginning of the journey, but find it has given me a more disciplined outlook. I am looking forward to paying off my debts, followed by building up savings and investments. That is the way forwards!

 

 

Playing with FIRE

Introduction

 

Hi, and welcome to my blog, Playing with FIRE.

I have been reading a lot about the FIRE movement since I came across it in September 2018, and I have started to dabble in the philosophy a bit. There are a great many resources out there, and many are extremely useful. The main thing about these resources is they are very US focused. As I live in London in the UK, I decided that it may be helpful to document my experiences with using FIRE in a UK context. There do not seem to be many blogs that are UK focused out there that I can find.  So here goes nothing…

Philosophy. 

 

The most famous FIRE advocate is Mr Money Moustache. His blog is a treasure trove of good advice. I have started to follow some of it, but I must admit I’ve been rather a scattergun in my approach.

My situation

 

I will start with my position in October 2018. I was one month into a new job and wondering what to do with my new found earnings. I came across an article in the New York times on the FIRE movement, and it sounded good to me.

Firstly, I would like to give you some further context.

In 2018, I had decided to undertake a period of study so was out of work for 10 months.

In studying, I had to make some significant adjustments to my lifestyle. Going from earning £75,000 to £0 was a shock to the system. I cut back on social life and going to the pub.  I also rejigged my finances so that my mortgage payments were as low as possible. I also planned to sell my car. However, my plan to use the re-mortgage to pay for the fees and pay off a loan I had from my last degree and some house bills, failed.  I was lucky to get a scholarship to part fund the fees for the course.

My plan failed, partly due to my lackadaisical approach to managing my finances, and also my not wanting to give up the feeling that having a fat bank account gave me when I had no income. I didn’t sell the car, because I had it on a PCP deal which was more than I could sell the car for. I couldn’t believe how stupid I had been, but faced with paying £2500 to sell the car, or just keep paying the £299 for 10 months, I thought at least I will get the use of the vehicle in that time. Plus, I love that car, and yes that is a weak point of mine!

I got through the year by renting out my apartment on Air-BnB and to a friend mid-week. This was a very efficient method of obtaining income compared to working in a bar. The return to time was high.

By the end of the course, I was in desperate need for employment. I tried to get an entry-level legal job, but in the end, I decided to go back to project management where I could capitalise on my 12 years experience. Financially this was the best option.

So, knowing I had really failed to stick to my financial plan, with two large outstanding loans (£9k and £10k), a car payment of £299 per month, and a student loan from my first degree, things had to change.

First FIRE move.

After reading up a few blogs about FIRE, I came across the philosophy of investing in low fee ETF funds. This seemed like a straightforward idea. I was so excited by the idea of retiring early that I opened an Interactive Investor account and bought £1000 of ETF fund in a stocks and shares ISA account. Great! I’m on the way to financial independence. What could go wrong?

Realisation.

 

This plan was great, except I had forgotten one key element of FIRE.

My new job was paying £70,000 which I consider is a very good income. However, it was being gobbled up by the debt payments. I had about £8000 in my savings account at this point which made me feel very secure.

I went on a holiday to Australia with my lovely girlfriend who is from Melbourne. This distracted me and used up some money that I had earmarked for my ETF. Christmas came and went.

I then went to a yoga retreat (not my idea, but was very useful). During the retreat, we were challenged to consider our goals for the year. It became clear that the debts hanging over me were causing some anxiety. I decided to take action.

I also read a post on a FIRE blog or forum where someone was heavily criticised for investing in an ETF before paying off their debts. Oops. Looks like I had fallen into that trap from day one.

What did I do? 

 

The first thing I did was to pay off the £2500 remaining in my government student loan. This meant that my salary was not deducting student loan payment of 9% above £25000. In my case, that would have been about £340/month.

I did a review of my budget and realised that I needed to pay off my debts as quickly as possible. How was I do this? I had £15,000 in debt at around 7%. It seemed impossible. Some weeks passed and then I started to seriously look into this.

With some clever maths on a spreadsheet, I first realised that I could pay off one loan which was now around £7000, with the savings in my account. I was reluctant to do this as it would remove the nice comfy buffer I had. It scared me a little.

Secondly, I would use an old credit card which was offering 0% rate on money transfers to pay off the other debt which had gone down to £8000 along with the remains of my savings. This meant I have £6,000 on 0% interest until August 2020. It was a fee for £129 to do this. Only about 1.5%. This is much better than the 7.2% interest I was paying on the loan.

I did this last week. As soon as I did it, I immediately felt better. Almost like a weight was lifted. I also made a plan to pay this debt off within 3-4months.

That brings me to where I am now.

 

Bank account

 

I reviewed my accounts, and decided that the £20/month I was paying for a bank account was too much. It should be said it includes benefits, but I could get the insurance benefits elsewhere for a lot less. I, therefore, switched my account to Barclay’s account which had no fee. I went for their Premier account as my income was enough and also because I wanted to feel fancy.

Mobile phone

 

My phone contract with Vodafone cost me £52 a month. It was for an iPhone 7 which I got when it was new in 2017. The contract was coming to an end and the phone works fine so there was little point in getting a new iPhone. They have a new offer of £20/month which includes Spotify. That saved me total £42 a month if you include the £10/month Spotify costs me.

Contact lenses

 

I was paying £17.50/ month for contact lenses. I have cancelled that as I stopped wearing them. I will order dailies and wear my glasses.

Total

 

Total savings for the weekend:

Mobile saving: £42/month

Bank account: £20/month

Lenses: £17.50/month.

Total: £79.50/month for about 2-3 hours of work. Not bad.

Add that to the £395/month loan payments that I stopped, then this means I have roughly £500 a month to pay into the credit card to pay down the debt. At that rate, it would take 12 months to pay off. However, I am going to put money from my lodger of £500 to make it £1000/month. I will then find more money to pay it quicker. I want to pay £1500/month to get rid of it within 4 months.

Conclusion

 

The message here for those starting, like myself, is not to get too excited by the end goal of having £££ and getting a return. First things first, pay down your debts and reduce costs. Its boring but I have realised it is an important first step. This can be done gradually by looking at each expense you have in your account and finding a way to reduce it.

You will see that I have a poor financial history and have lacked the motivation to do things properly. However, I am determined to change and follow the FIRE philosophy. I also want to blog about it to make me stick to my plans and help people in the process.