Firstly, Happy New Year!
Now on to the main reason I am here- Day 1 is about reviewing the homework, or completing it if needed which I have already done, well done me!
Day 2 is to focus on your long term goals, therefore you can ask yourself, ‘Do I want to buy the new Sims game, or do I want to achieve my goal’. As we know I am flaky about long term goals and am still working on this, but having no debt and knocking the mortgage right down are definate goals! I mean, I haven’t spent the money on my op yet so that is nice, but as soon as it is paid I think it will ignite me to be more specific on spending/saving.
Day 3 focuses on managing impulse spending by waiting 72hours between wanting something and actually buying it, giving us time to evaluate if we really want something. So far this month, I have paid £18.80 in customs for dresses I bought last year, spent £30 on presents for my best friend and her new baby, and £70 on new fencing as my dogs are at war with the new dogs across the way which is just so annoying and anxiety provoking. Oh and we have had to pay £106 for gas bottles as we have ran out. Already an expensive month, oops! Hubby paid for food shop and it was £60 which is about £15 less than normal. My plan is to wait 72hours before all purchases- I do have my eye on a cheap treadmill at the moment so will see how it goes! I have wanted a treadmill for many months now as I love walking, but sometimes I just want to stay in with the dogs (they are arthritic so minimal walking these days), I will step out in my lounge but it isn’t the same! So a treadmill won’t be an impulse buy at least, and I am waiting for a good deal. Mrs Frugalwoods points out that when waiting the 72hours, consider if you really need it, calculate what else you could do with the money, can you alter something you already own, can you get it cheaper- ah facebook market place!- and finally could you borrow it from a friend. So many good points, it is pay day tomorrow so I will be using this as a good start point to practice this. I have also tried to be careful up until now but as I just proved I have still been spending :0
Day 4 looks at food shopping, Mrs Frugalwoods asks, do you eat everything you buy? I won’t lie, I am not always the best at this side of things, but we did a meal plan and food shop so this week we have been doing well so far. We do food shop weekly, and use Aldi unless we need something we cannot get from there- Vimto is a need when on offer! I have also decided to not drink alcohol as my surgery means I cannot anyway. We are not very good at bulk cooking, but try to plan easy quick meals when I am working as I get home late, and I don’t mind a tiny bit more complex on my days off and more complex again when we are both off if we want! Though cooking isn’t really our thing. We won’t be buying take out, I won’t be allowed/able after surgery and in these weeks working towards surgery I have to follow a strict plan. Freezing food isn’t something we do often, but I have been advised that before the op I should freeze food as I wont have the energy or inclination initially. Also, we normally eat all our food on our plates so left over food is rare! I do need to have a very good look at the Liver Reduction Diet that I start on Saturday for two weeks to make sure that I meal plan correctly.
Day 5 looks at our discretionary spends, Mrs Frugalwoods says that we should times monthly discretionary costs by 12 to work out yearly costs, and see how much you might earn if you invested it instead. I am not very with it when it comes to investing, I don’t really understand the process and have looked several times but not taken the first step. I probably should! I think this time round I will focus more on this area, and try to make some effort! This is a good article that I am reading to help with this from Mrs Fruglawoods.
So today, day 6, is about organising your finances. Tracking monthly spending, knowing your monthly net income (mine does vary due to length of the month some are 4 weeks some are 5 weeks), you need to know what you owe and you need to know what you own. As suggested by money saving expert and Mrs Frugalwoods, always try to pay your highest debts down first, focus on the interest rather than monthly cost. So, as it stands I have a £5k loan with a set cost, therefore nothing to be saved from paying it off quickly as such, I will have about £4k on a 0% credit card for 18months, it probably makes sense to try and pay this off first as after 18months (though I plan to tart the card to not pay any fees) the APR is 18%. The loan is set to take 5 years to pay off and I have already had it since August 2020. I have about £2.5k saved but as I have said before, I don’t know how long I will be off work so want the cash to cover any unforeseen time off so I can pay my bills. Whatever is left when I get back to work I will pay off. I also will be able to save a chunk of my wage tomorrow as it was a 5 week month, and I get some extra moolah for bank holidays. The next step is to create an Emergency Fund- we have £1k left in our emergency fund now as we paid off some debts last year. Mrs Frugalwoods talks about saving for retirement- my work pension is a basic one and the outlook is poor, when I tried to increase payments, both my work and the pension people were totally unhelpful so I pay the usual amount in. Not really sure what else I can do here? And finally she talks about investing, it is on my to-do list I promise!
I am expecting a call from the dietician to discuss my pre op diet later today, she just called to see if I am free, exciting but nerve wracking. Need to re read the plan so I can make sure I have all my questions ready. I will also have a good look at my personal savings after pay day and money dance on my next day off, look at how much I still owe on the loan and work out when I need to pay for the surgery! I still need to book and pay for the dentist too, bah!