Have discussed how much debt I have and how I’m attempting to balance the books. However, we’ve not talked about my priorities and targets. A lot of which move daily but it’ll be good to put them down in a prioritised list to start with and update later when they become in reach.
- Create a budget - Complete
- Stick to the budget – In Progress, month 1 failed.
- Repay Credit Card debt - target Q3 of 2016
- Repay Student Loan – target 2017
- Repay House Loan – due to end 2018
Then the fun begins…
6. Increase emergency cash fund from £500 to 6 months’ pay. Easy access Cash ISA or similar I expect.
7. Holiday. Mrs Money Interest and I have not been abroad for 5 years. Little Money Interests never have. Plan is to save up and reward paying off all that debt by going on holiday.
8. Start and investment fund for Mrs Money Interest and I.
9. Start a savings/investment plan for when Little Money Interests grow up – for wedding/uni/car. Money which is earmarked for this purpose but which remains in our control.
10. Start a savings/investment plan to give to Litte Money Interests on hitting 18/21. Money which is not within our control at that age.
11. Overpay on the mortgage.
Big life decision awaits…in a couple of years
12. Move to a nicer house (ours is decent size, not very nice road but lovely village) vs retire early
One thing I am going to have to make sure does not happen is that when the debts begin to be repaid that money does not just get swallowed up into increased spending. This money needs to be put to work.
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A motivational tactic.
I’ve decided to remind me as much as possible how much debt I’m in I will keep the below updated and in the header of each post – keep it at the forefront of my mind.
Debt current stands @ £25,300 (Student Loan £8,000, Credit Card Loan £7,300k, House Loan £10,000)
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