Financial Order

Money is not something I am naturally good with. I am a spender for sure. This time last year I had...

• £1250 overdraft
• £1000 maxed out Christmas Credit Card
• £2000 balance transferred Credit Card

I also had absolutely zero savings and was about to find out that I'd been overpaid by £1400 from my previous job. It was around this time I started reading personal finance blogs and found the book 'In The Red' by Alexis Hall. Taking inspiration from these I am happy to say that this year I have...

• £0 overdarft
• £0 Christmas Credit Card
• £0 Balance Transfer Credit Card
• £3000 Emergency Savings Fund

The things I found most helpful seem so simple and obvious now but when you're caught up in spending habits common sense finds it hard to prevail!

On pay day I would immediately transfer debt payback money and savings money and then transfer a monthly 'allowance' into another card activated bank account that I had no overdraft facility on. I then did all my spending through this account leaving my regular account with money to cover all my direct debits and payback my overdraft. I took packed lunches to work. I meal planned and tried not to spend more than £30 a week on food, taking advantage of loyalty card offers and vouchers. I didn't buy any new cosmetics until they ran out, turns out my stock pile was so massive that I only ending up having to buy shampoo, toothpaste and foundation! I tried really hard to stop buying clothes but couldn't do it, what I did buy however I considered thoroughly before buying. I wrote down everything I spent on the notes facility on my phone and wherever possible only spent cash so I could keep track of what I had left.

Hardly revelationary I know but I think it might be helpful to know that I did it. I cleared over £4000 of debt and managed to build up an emergency savings fund and more importantly I still had a life.

So for the San Francisco fund I am hoping to save £20,000 and have about two and a half years to achieve this. I think this year however will be tougher than last as the debt is gone. As And Then She Saved found, it appears easier to be on a 'Saving Fast' than a 'Saving Diet'. Discipline is required (something else that I'm not so hot on!) so I am really hoping that this blog will help me that too, here goes....