Me Made May and a debt update

Me-Made-May is keeping me busy, as I realise that my me-made wardrobe is probably not as strong as it could be, particularly for cold weather!

My lovely daughter bought me a Mothers Day gift which was so very thoughtful - a $50 voucher to Spotlight, a big box fabric and craft store. 

So we went along to see what was about, and as it turned out, the store was in the process of moving locations, which meant that there were some super specials on the apparel fabrics in store.

I picked out three crepes suitable for work tops, and a scuba knit suitable for a dress / skirt. When we got to the counter, I was delighted to find that the fabric (which was already over 50% off) was further reduced by another 50%. So the fabric which was over $20 retail per meter originally, I was getting for $5 per meter or less. But wait! I'm a member of the VIP Club (free to join, additional discounts) and it bought the total down even further.

In all, my four cuts of fabric - enough to make two tops each from the crepe and a skirt, a top and a dress from the scuba knit - came in at just $19.  I could not be happier! 

I've made the dress and skirt from the scuba knit - both turned out really well and have been worn to work already. All of the top fabric is laid out ready to be cut, I just need to find some time to get that done. I'm really happy with my choices, in that I thought carefully about what I had in my wardrobe and what would add value to what I already owned, and what would effectively mix and match. Once the tops are made up, they'll add some real versatility to my wardrobe, at very little cost. Yay!

Now, on to the debt update! New debt numbers as of today, with regularly scheduled payments of $150 towards the TV debt and $350 towards the family loan:

Starting Net Worth (28 April 2017)

-$35,513

Current Net Worth 

-$33,113

Total Debt Paid to date:

$2,400

That brings the TV debt down to $1,885 and the Family Loan down to $31,228.

I'm not sure exactly whether it is best to put the extra against the Family Loan or the TV debt. I guess if I was being completely risk averse, I'd put it towards the TV debt, because its the only one that has the possibility of future interest. Plus, if I can kill it earlier, I can snowball those funds into the Family Loan... but somehow putting the extra to the Family Loan makes me feel happier. Hmm. Something to consider.

I do still hope to make a larger payment this fortnight, and will transfer that across later in the week if I'm able to manage it... and when I decide which one its going to!

Sponsoring to save some $$

I normally purchase an $85 membership to my daughters sporting club.

This entitles us to "free" entry to all home games, which works out to be cheaper than paying entry at each home game she plays. I buy a membership in order to save some money, given that we do attend every home and away game through the season. Unfortunately there is no way of saving on the entry to out of town games, but I do budget for this item.

This year, she bought home a sponsors pack. She hasn't previously received the pack because sponsorship is something only the older players seek - she's playing some games with the senior team this year so they gave her a pack. Every senior player is encouraged to get at least one players sponsor, and if they get 5 sponsors they receive their own membership ($85) free of charge.

Now, my daughter doesn't have to pay membership yet, because she's under 18. Only 18+ players have to pay membership. So she gets in free to every home game regardless, because she's a junior player. Still, I had a read of the sponsorship pack to find out what was on offer.

Turns out that sponsoring a player gets you membership PLUS extra bonuses, including one sponsors game where you have all-you-can eat and drink (alcoholic and non-alcoholic) in a special marquee. You also get your name up on the sponsors wall, which is kind of nice I guess, particularly if you have a business to advertise.

So how much is sponsorship? 

$75.

I am so annoyed that I didn't know about this sooner. I could have saved an additional $10 a year and had a nice day out as well, for something I buy anyway!

If you have a child who plays sports, it might be worth investigating if they have player sponsor deals like this one - you may save yourself some additional money.

Shoe negotiations - teenagers

I took my daughter shopping for new sports shoes yesterday.

It was our second attempt at it, the first trip having ended in an argument. 

My daughter is very strong willed and while I say that she gets that from her Dad, I know she gets it from me! 

Anyway, I did some exploration online before we went and had money set aside for this purpose. 

Sports shoes designed for the particular sport she plays and  suitable for what she needed from a support / hard wearing point of view  averaged about $150 for a basic shoe from a good brand. 

When she was young, I bought cheap shoes and found that they generally fell apart by mid way through the season. She plays outdoor winter sports and is involved in training and extension activities associated with athletics and running. To make sure the shoes last, I now I invest in good quality shoes without buying top of the line. This time, she was pushing for shoes at the $300 plus price point, well above what I was prepared to pay and for no reason other than because she wanted a particular colour that was only available in the most expensive shoe. That's what caused the argument the first trip and why we didn't buy anything. 

Before this trip I negotiated with her. She has a job and had birthday money to use. I said that I would buy shoes up to $150. If she wanted a more expensive pair, she could pay the difference. 

She eventually settled on a pair at $237 and paid me the difference. 

It was a good outcome I think - she got what she wanted and I spent what I had budgeted. She also chose a very slightly cheaper shoe than her original choice  and we bought the shoes on sale saving a little more. 

I felt good knowing that we'd been able to negotiate an outcome we were both happy with and which demonstrated to her that I wasn't prepared to spend excessive amounts purely for fashion. 

She ended up spending only part of her birthday money (she got $200, spent $87). She's saving the rest. 

Thrifty cooking

I've been eating a low carb diet for a while now, and I love it. I have great health results, so much more energy, sleeping better, it's amazing.

But I need to balance that against my budget. 

Rice, pasta and beans, potatoes and carrots  are the staple of most frugal meals. I don't eat any of those things. 

I think this winter the slow cooker is going to be my friend. Cheap meat, veg I can eat, and rice for my daughter. I have mine with zucchini noodles to bulk it out. Easy and delicious. 

There are ways to manage frugal living even on special diets. 

(Oh, and in case you're wondering, I started this way of eating because of a food allergy that made me violently ill. I had also put on a lot of weight. This way, I can avoid my allergen and lose weight. 14.5kg down so far - or 32lbs. Not bad!). 

Update on my second job

I thought I should give an update on my second job.

Unfortunately, the managers decided to wind back the work and there is nothing for me to do. I haven't had a shift since October 2016 and there is no work in the foreseeable future. Not just for me, for all the employees.

In some ways, since I've spent a lot of time dealing with the separation from my husband, this has been a good thing. I've also noticed that I've been able to be more productive in my day job because I'm not as tired from the weekend work.

In positive income news, I received a raise in August which was worth more than my part time job was annually. That has certainly helped things significantly. I'm very aware of how lucky I am to have such a great job, and to have a generous pay increase thanks to moving up through the bands within our Enterprise Bargaining Agreement. As long as I can demonstrate that I'm performing my role and learning and growing each year, I *should* get a progression. So there is a possibility of a similar raise again this coming August, but I'm not going to count my chickens before they hatch there. Things are tight in my work industry, but as far as I'm aware from my Manager, progression payments have been circled off from any cutbacks.

Not having the second job has meant that I've also been able to be more present for my family through some pretty difficult times in the last few months. We've had illnesses and we lost one of my grandparents early this year so being able to drop everything and be there was important.

As my daughter gets older, I find myself not wanting to make sure that I can be present for her, and as she gets older her schedule with her own Dad (who she normally visits every other weekend) becomes more unpredictable. Working a weekend job and unpredictable teenager schedules doesn't really work. Perhaps losing the job was a blessing in disguise.

Financially, I haven't found its made any difference, thanks to the raise. Actually, having that extra income this year would have pushed me into a higher tax bracket, increased the amount I'd have to pay in levies through my tax, and removed the very small amount of social security assistance that I receive. I'd be working harder, for very, very little, if any, gain.

I'll keep my ears open and if a lucrative opportunity comes up I'll grab it, but otherwise I'm going to leave the second job for the time being.

Personal finance blogs

I'm re reading the wonderful archives of www.bloggingawaydebt.com

Tricia was such a wonderful inspiration to me. Now I'm up to 2010 and Bek's. I'm heartened to think that these wise women clawed their way out of debt.

I can too.

Another week until I get paid. The challenge for this week is to spend as little as possible.

I'm sitting on my couch and it is cold. But instead of hitting the button on the heater, I've put a beanie on. An extra jumper. Bed socks. I'm still cold but it's passable.

I'd rather be cold than have to pay more for gas this month. I want to put that money towards my debt.

Everything has changed

So big changes around here.

My husband and I separated.

That was... hard and expensive.

He had signed my daughter up for a phone plan, and with the separation that bill now comes to me. I'm annoyed about that, but there's not much I can do about it.

We'd also purchased a large TV together, and because its staying in my home, that bill is also now mine.

I basically got nowhere for a few months. So frustrating.

Then my parents agreed to go guarantor on a house loan for me, so I could get my own place.

And then they changed their minds. Which is fine.

Dad instead suggested that they could pay out my existing loans, and I could repay them at 0% interest and so get ahead a bit quicker and into my own place without help.

That was very, very kind of him, and I took him up on that offer.

So, as it stands today:

I owe my Dad $32,178.

I owe $100 on my credit card (which has been put away and will not be used unless I can immediately transfer cash to pay off whatever purchase I'm making - therefore making it a cash purchase).

I owe $2335 to the TV debt. (also at 0% interest)

My Dad has asked that I pay him back in lump sums. So I'm saving the payments to him in a separate bank account and tracking my payments using NetWorthIQ.com

My net worth, when I started it last week was -$35,513

My current net worth is -$34,113

Its annoying that I'm higher again than when I started, but I've gone back to basics again and I've also done some tweaking to my budget to free up some extra cash.

I have been really distracted with the ending of my marriage and some family crises but I am absolutely determined to get out from under this debt as soon as humanly possible.

I think I'll try and say something every day about debt and debt reduction... to keep me accountable and motivated.

Big changes

I've been a bit absent, but with good reasons.

I've moved house - which was a very long, painful and expensive exercise.

But the house that I'm not in is lovely and there has been discussions with the owners about us potentially buying it when the time comes. So that is a positive.

The new house has solar panels, so I'm expecting that with a little careful management that I'll have no net increase in my expenses here, with the electricity windfall making up for the slight increase in rent.

I am behind the point that I last left you though, having had to redraw on some of the funds I was ahead in my loan in order to make the move happen. I've also put a bit back onto my credit card.

In response, last night I sat down and redid my budget. We're down to brass tacks here for the foreseeable future until I can right the damage that I've done to my progress.

First step is to put the credit card back to zero.

I've allocated $450 per fortnight to that.

Second is to knock my loan back down. So as soon as I've moved that credit card to zero (I cringe to say that it will be 4 fortnights until the magic $0 appears)... the loan repayments will be going from the current $300 to $750.

My medical debt is fully cleared now, so that is a massive help.

I've also gone through how I manage all my annual payments and allocated them all to my "bills" account, which is separate to my daily account. By transferring out all of the payments and future allocations the day that my pay goes in, I will only be left with a very small amount in my account which is to cover groceries, date night and $50 discretionary spending each fortnight. That discretionary spending is to cover any small incidentals - school excursions that come in last minute and so on.

All payments for this fortnight have now gone out, so I'm starting May with this renewed approach to getting my house back in order.

I suspect that anyone who is like me, not terribly great with money, has these setbacks when they start off on a debt journey. It certainly seems to be the case for most of the debt reduction blogs that I've read - even though most of them are American. I know that it is far from ideal to be having big expenditures like a move when I'm trying to pay down my debt, and worse that I've actually gone backwards as a result of it. BUT, I'm determined to pick myself up and get back to that lovely feeling of $0 on the credit card and thousands in front on my loan. It felt so good the first time and I know that I can do it quickly if I am careful with my money.

So, onwards and upwards as I keep chasing zero.

New Budget, what to do with "leftover money", debt update

Last night I sat down and plugged all of my actual expenditure into a spreadsheet. What an eyeopener.

I had a budget - which I thought I was following quite well. In some areas, absolutely I was, but in others... not so much.

So this month I'm going to change it up a bit. Along with carefully tracking my expenses as they happen on my newly minted spreadsheet, I'm also going to try the envelope system. So any money for groceries, spending money ($25 / fortnight) and takeaways / eating out ($25/ fortnight) will be in envelopes in my purse. That way, when the cash is gone, its gone.

I am working to a $0 balance monthly budget, but at the end of January I had around $65 left in my account. So I've transferred that to savings, and I think what I'll do if I happen to underspend this month (which I'm projected to do at just under $500 if I follow my budget) I'll put that into savings too. That will give me the emergency fund I've been considering without having to actually take anything away from my loan repayments - it money that I've just been losing due to poor budgeting in these past months. I also send $50 a fortnight to savings anyway, just as a drip feed, so that will keep the account ticking over.

Today my pay came through from my second job, $310. I have now transferred that into my loan, bringing the total for the loan to under $31K! Woohoo!!

Even better, with that little kick along I'm right on course to bring the loan back under $30K this month!!

I'm thrilled that I've been able to throw so much at this already - even before my first interest payment hits the account (which I think must be due around the 15th). I expect interest will be around $300 but it will be interesting to see exactly what the impact is.

(Note that I'm not paying more towards the medical as its at 0% interest, and is due to be paid off in 6 more payments anyway)

New balances for today

$30,835 - personal loan
$0 - credit card (woohoo!)
$960 - medical

$31,795 - total

Chasing Zero - You've got to start somewhere

I'm Malady and I have a confession.

I have debt.

In the grand scheme of debts, its probably not that big, but to me it feels like a mountain and I need to overcome it.

I earn good money, but I've never been good with it. I spend it when I have it, and my budgeting skills to date have been pretty well zero.

Two months ago, I decided that enough was enough.

I wrote a budget, and got really motivated.

At that stage, my debt stood at:

$28,000 (round figures) - Personal Loan with variable 14% interest rate.

$5,000 (exact) - Maxxed out credit card with 13.99% interest rate.

$1,600 (exact) - Medical fees to be paid off no interest.

I have since paid my credit card to $0, and dropped the limit on it to $1,000 which is the minimum that it can be lowered to. I also negotiated with my bank to drop the interest rate to 3.99% which made a huge difference to the amount of interest that it was accruing.

Unfortunately, I went a bit crazy with the repayments in order to hit that $0 as soon as possible, and left myself nothing in savings.

Adding insult to injury, a payroll issue meant that a payment for a leased vehicle wasn't being taken out of my pay on a fortnightly basis. This meant that the Christmas bonus that I was counting on to help pay for my daughters Christmas present, which was $700 (after tax), went straight back into repay the debt that had accumulated, which was entirely out of my control.

With Christmas gifts needed, no bonus and no savings left, I've had to put my credit card back into use, and the balance is now back up to over $900.

I decided that I needed to keep track of my progress in paying back the debt, and hopefully in doing so keep myself accountable.

I've been reading some terrific personal finance and debt reduction blogs and have found them inspiring. One of the things that I keep reading is that the writers found that having the blog kept them on track and motivated. I want that - even if no one else reads this, I will, and that should help.

So, full disclosure.

Today, my debts stand at:

Personal Loan    $ 26, 664.69
Credit Card        $ 969.45
Medical Fees     $ 1, 280

TOTAL            $ 28, 914.14

My aim is to use the snowball method to pay off the debt - my payments initially will be as follows:

Personal Loan $ 300 / fortnight
Credit Card     $ 300 / fortnight
Medical Fees  $ 160 / fortnight

TOTAL           $ 760 / fortnight

I also have a second job, and any money raised through that will be put to the first debt (credit card) to be paid off ASAP, and then to the personal loan. The medical fees have no interest attached and have only 8 payments to go before its cleared, so I'm not going to put extra payments towards that to clear it.

My aim, once the debt is cleared, is to put the money currently going to debt repayment into a high yielding savings account, with bonus interest, to save for a house deposit.

So here I go... stage one of my journey towards my goal of home ownership: chasing zero!