It's been a bit snowy the last few days. It was a gentle start on Tuesday morning and by the end of the day we had a good few inches. It hasn't lasted and is completely gone today. I didn't leave the house so it's been the perfect time to take a long hard look at my finances 👀
I have a simple pen and paper approach. I start by going through the last 12 months' worth of bank and credit card statements to analyse my spending. Even by doing this I quickly realised that I also need to look at my PayPal statements as some of my purchases weren't there. My eBay account is linked to PayPal as are some of my takeaway purchases 🥡🍕😳
Then I write it all in my book and sort out the categories. Main ones are food/supermarket, car, house, pets, school (as I discovered I've spent over £500 on toys and equipment for my class!!!), garden/allotment and one offs (like a wedding) 👰 Even just sorting out the categories was an eyeopener. I mean, over £500 on school stuff!!!
One of my biggest expenses is my car as I'm still paying it monthly. This year it's cost me £3,907. But once it's paid off in 2024 it should only cost me around £1,000 a year to run. I only filled up with petrol 4 times this year (it's a hybrid) and I've still not done 5,000 miles yet!
Another big expense is my council tax. It's a few pounds short of £3,000 and I have to pay it. And don't even get me started on energy costs...
As I've said before I have a stable well paid public sector job (that I now hate!) so I have a guaranteed income every month. I can meet these costs and save a decent amount as well. Problem is if I retire now (or in a year or 2) I can't meet these costs on my teacher's pension. And that's where I'm stuck. Unless I sell my house and downsize. And I'm not ready to do that yet!
But I challenged myself to save £10k this year and I did it!! I pretty much managed to save half my salary each month. Although I discovered that in April, November and December I didn't save anything! So I saved £10k in just 9 months. If I really really put my mind to it, I could save more next year (if I'm still teaching by December!!!)
I like that you're a paper and pen girl like me, I can 'see' things so much better written down rather than on the computer. I think it's terrible that teachers are basically propping up the education system from their own badly paid pockets.
ReplyDeleteI don't know how long you have left on your car loan but when my son got down to the last 18 months or so on his car plan he took out a zero percent credit card and paid it off with that. He's now debt free at last and sent me screenshots of all his zero balances at the start of December.
You did SO well this year to save 10k in just nine months, it just goes to show what is possible when we really set our minds to something doesn't it.
Thanks, I'm really proud I managed to do that! :-) Yep, every teacher I know spends their own money to make learning more fun esp in a poor school like ours. Plus all the unpaid overtime we do!
DeleteI do have the last bit of my uncle's inheritance money left, enough to pay off the car now but then I don't have an emergency fund any more. And that scares me a bit. The £10k I've saved is retirement money and I don't want to have to use it in an emergency. No idea what kind of emergency I would have but it's the thought of it that worries me. Silly I know but the ghost of 12 years ago is still with me when I literally had £5 in my purse and no bank account or credit card.
You are doing great with your finances imho. What's hard I'm guessing is the thought that you probably can't finish teaching yet - you never know what might be round the corner though - good luck with 2023 x
ReplyDeleteAlison in Wales x
Thanks! It wasn't as hard as I thought to save that money and I'm definitely going to up my game this year. You're absolutely right, I can't finish teaching yet. It's too well paid to give up in this uncertain cost of living crisis plus I'm financially supporting my son and daughter in law. I just need to work smarter and keep myself as healthy as I can! :-)
DeleteCongratulations on meeting your very important goal! We can't know where the money goes if we don't keep track.
ReplyDeleteI'm sorry your job is soul-sucking right now, but the upside is a stable income in a very uncertain financial time. And you don't always know how much you matter to so many children. ~ skye
Thanks! It's very illuminating to see where the money goes!! I'm hoping the soul sucking job is bearable until June and then I either get a new P1 class or move to another role within the school. Even the kids whose behaviour is appalling need the consistency I give them (whether they like it or not!) so what I do has an impact on all my wee kiddos. And I shouldn't forget it. Thanks for reminding me :-)
DeleteThese are certainly challenging times and I am seriously impressed that you managed to reach your target. You have shown time and time again that you can regroup and change tack after life throws up yet another barrier across your path. You will find a way around the retirement problem, but it might take a while to work out how.
ReplyDeleteYep, I'm becoming an expert on regrouping!! I'm thinking that I'll still be teaching for a wee while yet but I definitely need to make some changes. Having some distance while on holiday is helpful! :-)
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