If this were me I would have an emergency fund of the amount you think you may need in the next six month and pay ALL the rest off your debt. It makes no financial sense to sit on all that cash and be paying interest every month. The more you pay off, the lower your interest will be next month. I snowballed my way out of debt nearly 20 years ago and I have never looked back.
I think your so lucky. I'm under the DWP. I am also trying to set up a business, I've become an Avon rep, I'm doing mostly online but also to close family and friends. This was DWPs idea because I have a health problem and because my Dr says I can do light work. No one wants to employ me really. I've been doing Avon for 2 months so I have very few Customers at the moment. I have also just this past week started the budget thing. It's my birthday very soon and people have asked me what I want. I've been telling them things like budget binder, money box. And all things I see you and other channels use within this journey. Xx
I didn't do sinking funds while on my debt free journey I cash flowed everything 1000 isn't enough for emergency I recommend 3 month found this out when hubby broke his foot but also paying off debts brings relief to budget.
@@TheBudgetMumUK yes done my 3 months emergency, I'm completely debt free 76k 100 with interest payments hubby back to work now started my house deposit and only sinking fund is Christmas but I still cash flow everything so alot better than it was. Good luck on your journey.
Wow ! I can’t believe how much you had sat in your envelopes Samantha. Absolutely amazing! If it was me I would pay majority off debt and some for emergency. Your car sounds like it’s fairly new, so hopefully should be ok for the next few months, while you start saving again. If not you have always got the emergency fund to use 😃xx
I don’t do any challenges - I just have sinking funds for the things I want. I’m not motivated by them and I find having too many little things to focus on can stretch things too thinly - which then makes me feel like I’m failing at something. In terms of the money, I’d do £500 to each child’s account, £1k emergency fund, £1k for car insurance/tax/MOT and then the rest off the debt.
Hi Sam, Wow.I personally would keep my 1000 emergency, the car insurance etc money maybe 250 each in holly and Alex but then pile the rest into debt.You will feel so much better because it’s obviously on your mind hun.xx
I would go in a room and throw it in the air lol massive well done it just gives me inspiration being new to this. I would book a small holiday and bask in the reward of hard work. Xxx
I would pay off the whole debt anyway so then all the money I stuff I know is mine but also I won't have to budget in debt anymore for future stuffings. Financial freedom starts at paying off all the debt, in my eyes anyway. Good luck with your decision xx
After having a play with the huge wedge of cash, I think I’d save however much will cover my basic monthly bills in emergency and £1000 for car, £100 each for the kids and then use the rest to wipe off debt. You’d be saving money in the long run by wiping off the debt and avoiding interest!
I agree with all the other comments. Buy the concert tickets, keep some for emergency fund, car and children. Then rest to debt. That will give you a head start in savings and less to put towards debt in the future. Well done on saving so much 🙂
Make a budget without debt and see how long it would take you to replenish your savings. I would definitely keep the emergency fund and a small amount in car/home fund. It seems everything else can be cash flowed each month and you can save.
Hi Sam you are so inspiring what you’ve achieved paying off your debt. I don’t think you need any of us giving you ideas how to best utilise that hard worked for cash you have accrued. I personally wouldn’t have that amount lying at home even though our home is alarmed. I’m opening another bank account just to put my lovely budget binder money you made for me into when amounts get too big. 😊
I'm sure you'll make the right decision...debt, emergency, kids and car...but I would definitely pay at least 60/75% towards debt. You've managed to save over 4k in just over a year...this time next year you'd be able to save double as you'd be debt free... Gillian
What is your most expensive debt in terms of repayments. It would make sense to pay that off if possible?? Definitely keep a good emergency fund though. Well done on saving so well xx
Having an emergency fund is crucial at the moment and you might even want to think about having a cost of living increase sinking fund to give you a buffer as inflation rises. Perhaps just have £200 each for the children and a bit for your car fund. Then throw the rest at your debt especially any interest incurring debt. The sooner you become debt free the stronger position you will put you and your family in. You have saved a huge amount on a low income in a year so you have done incredibly well. You'll soon be able to build up your sinking funds again xx
I would keep £1000 in emergency fund. I would keep a little bit in the kids just now. your car insurance and repairs £600 and the rest on debt.. and imagine the relief and how your winter and Christmas would be! Oh and mums show is a must since she is Awsome help for you and kids xx
I would put two thousand toward debt and the balance to the car, kids, and misc. stuff. That way you would have some flexibility in case life happens (as usual).
That is a really big chunk of cash! I think I'd keep money aside for an emergency fund, for Holly & Alex, and for my car, and then everything left for debt. Maybe make yourself a holiday envelope instead 🤣😂😅
I would defo keep 2000 back for sinking funds ect and then pay the rest on debt. Will make your debt to about £1500 ish which seems so much more manageable and you will feel so much better about it all
For me I’d be looking at what you have coming until Christmas and work out your new budget first and what expenses you have coming up. I’d keep your emergency fund, whatever big expenses you have before Christmas and then the rest off debt. The debt bothers you so I’d also class it as a mental health expense. I’ve not long since started my journey and can see the mindset change already. Thank you for another great and honest video! PS. Could you borrow from the children’s account and pay it back instead of paying the debt? Going into 2023 debt free would be a huge relief I think.
Can anyone recommend small savings challenges please? Want to start some ,mainly that I won't notice odd bits of change here and there. Don't tend to use cash is the only issue. I save for Xmas each month and into my daughters savings account but that's it
If I were you I’d have at least 1500 in the Emergency fund as you are self employed, 1000 in car as car repairs and maintenance can add up, 500 for each child, that can be added to over time. I’m sure you’ll figure out what to do. 💕🇨🇦
If this were me I would have an emergency fund of the amount you think you may need in the next six month and pay ALL the rest off your debt. It makes no financial sense to sit on all that cash and be paying interest every month. The more you pay off, the lower your interest will be next month. I snowballed my way out of debt nearly 20 years ago and I have never looked back.
That's brilliant. Thank you x
999999999999⁹99999999999⁹9999999999999⁹9999
99999999999⁹9999999999⁹999⁹9oo999⁹9999
999⁹999o9999⁹9999999999⁹9999⁹999999999⁹99⁹
⁹999999999999999⁹999999999999999⁹⁹99999
I think your so lucky. I'm under the DWP. I am also trying to set up a business, I've become an Avon rep, I'm doing mostly online but also to close family and friends. This was DWPs idea because I have a health problem and because my Dr says I can do light work. No one wants to employ me really. I've been doing Avon for 2 months so I have very few Customers at the moment. I have also just this past week started the budget thing. It's my birthday very soon and people have asked me what I want. I've been telling them things like budget binder, money box. And all things I see you and other channels use within this journey. Xx
Fill the sinking funds that will make you feel comfortable and safe. Then the remainder on debt.
Thank you x
I didn't do sinking funds while on my debt free journey I cash flowed everything 1000 isn't enough for emergency I recommend 3 month found this out when hubby broke his foot but also paying off debts brings relief to budget.
Oh wow! This is going to be a goal going forward. Hope all is well now x
@@TheBudgetMumUK yes done my 3 months emergency, I'm completely debt free 76k 100 with interest payments hubby back to work now started my house deposit and only sinking fund is Christmas but I still cash flow everything so alot better than it was. Good luck on your journey.
Wow ! I can’t believe how much you had sat in your envelopes Samantha. Absolutely amazing!
If it was me I would pay majority off debt and some for emergency. Your car sounds like it’s fairly new, so hopefully should be ok for the next few months, while you start saving again. If not you have always got the emergency fund to use 😃xx
Thank you - it was great!
Emergency funds are something I think are so important to have right now with all the price increases - great video x
Thank you x
I don’t do any challenges - I just have sinking funds for the things I want. I’m not motivated by them and I find having too many little things to focus on can stretch things too thinly - which then makes me feel like I’m failing at something.
In terms of the money, I’d do £500 to each child’s account, £1k emergency fund, £1k for car insurance/tax/MOT and then the rest off the debt.
Oh my goodness you have done so well! ❤ I would definitely use some towards paying off you debt and some for emergency fund xxx
Thanks so much x
Wowzer!!
Get it gone then split what's left between the important things then start again
Xxxx
Mayyybbbbeeeee.... xx
Well done. It's crazy how it adds up.
Well done. That's such a lot of money youve saved. I would pay off the majority of my credit card debt before the interest starts accruing.
Thanks Kirsty x
Hi Sam, Wow.I personally would keep my 1000 emergency, the car insurance etc money maybe 250 each in holly and Alex but then pile the rest into debt.You will feel so much better because it’s obviously on your mind hun.xx
Thanks Wendy x
I would go in a room and throw it in the air lol massive well done it just gives me inspiration being new to this. I would book a small holiday and bask in the reward of hard work. Xxx
heheh well.....
I would pay off the whole debt anyway so then all the money I stuff I know is mine but also I won't have to budget in debt anymore for future stuffings. Financial freedom starts at paying off all the debt, in my eyes anyway. Good luck with your decision xx
Thank you. Decision made - hope it's the right ones!
Hey xx great video xx I would put £1000 in emergency £1000 in car then £100 each for kids then rest on debt xx
Thank you Lovely x
After having a play with the huge wedge of cash, I think I’d save however much will cover my basic monthly bills in emergency and £1000 for car, £100 each for the kids and then use the rest to wipe off debt.
You’d be saving money in the long run by wiping off the debt and avoiding interest!
hehe thank you x
So happy for you. You work hard and save hard. And be sensible etc so you deserve everything that comes your way. Xxx
Thank you so much, lovely x
Reducing debt feels so good! Peace comes from being prepared with an emergency fund.
Definitely x
I agree with all the other comments. Buy the concert tickets, keep some for emergency fund, car and children. Then rest to debt. That will give you a head start in savings and less to put towards debt in the future. Well done on saving so much 🙂
Thanks Annie x
I would do half to debt and half towards expenses
Thank you x
Make a budget without debt and see how long it would take you to replenish your savings. I would definitely keep the emergency fund and a small amount in car/home fund. It seems everything else can be cash flowed each month and you can save.
That's a good idea! Thank you x
Wipe the debt and start again 🎉
Thanks Jane x
Hi Sam you are so inspiring what you’ve achieved paying off your debt. I don’t think you need any of us giving you ideas how to best utilise that hard worked for cash you have accrued. I personally wouldn’t have that amount lying at home even though our home is alarmed. I’m opening another bank account just to put my lovely budget binder money you made for me into when amounts get too big. 😊
Ahhh Avril, thank you so much. What a lovely comment. And don’t worry, it’s all tucked away very very safe 😉 x
I’d use £2469 for debt and keep the other 2K.
But what a feat 🙌🏼 well done lovely xx
Thanks lovely x
I'm sure you'll make the right decision...debt, emergency, kids and car...but I would definitely pay at least 60/75% towards debt. You've managed to save over 4k in just over a year...this time next year you'd be able to save double as you'd be debt free... Gillian
Thank you. I hope I've made the right decisions... video out tonight x
You are sooo awesome girl!
Awww thank you x
Well done u 🎉❤ well deserved u put the effort in congrats x
Thank you so much!!
What is your most expensive debt in terms of repayments. It would make sense to pay that off if possible?? Definitely keep a good emergency fund though.
Well done on saving so well xx
They're consolidated now so that's not too bad- luckily! x
Having an emergency fund is crucial at the moment and you might even want to think about having a cost of living increase sinking fund to give you a buffer as inflation rises. Perhaps just have £200 each for the children and a bit for your car fund. Then throw the rest at your debt especially any interest incurring debt. The sooner you become debt free the stronger position you will put you and your family in. You have saved a huge amount on a low income in a year so you have done incredibly well. You'll soon be able to build up your sinking funds again xx
Brill advice - thank you x
Personally I’d give £500 each to the children and £500 to emergency and then use the rest towards debt and start again x
Thank you lovely x
I would keep £1000 in emergency fund. I would keep a little bit in the kids just now. your car insurance and repairs £600 and the rest on debt.. and imagine the relief and how your winter and Christmas would be! Oh and mums show is a must since she is Awsome help for you and kids xx
Awww thanks Serena. Yep it's all booked now and hope I've made the right choices!
Car, Holly, Alex £500 each and £1,000 for Emergency rest towards debt 💸
Thanks katie c
I would put two thousand toward debt and the balance to the car, kids, and misc. stuff. That way you would have some flexibility in case life happens (as usual).
No cruiseships.
mean!
That is a really big chunk of cash! I think I'd keep money aside for an emergency fund, for Holly & Alex, and for my car, and then everything left for debt. Maybe make yourself a holiday envelope instead 🤣😂😅
Funny you should say that!! hehe x
Use some for debt
Thanks Alena x
I would defo keep 2000 back for sinking funds ect and then pay the rest on debt. Will make your debt to about £1500 ish which seems so much more manageable and you will feel so much better about it all
Thank you x
By 2024 I will be debt free can’t wait then when I have children spend it on them
That's great Fawzia!
For me I’d be looking at what you have coming until Christmas and work out your new budget first and what expenses you have coming up.
I’d keep your emergency fund, whatever big expenses you have before Christmas and then the rest off debt. The debt bothers you so I’d also class it as a mental health expense.
I’ve not long since started my journey and can see the mindset change already.
Thank you for another great and honest video!
PS. Could you borrow from the children’s account and pay it back instead of paying the debt? Going into 2023 debt free would be a huge relief I think.
Thank you - great advice x
Can anyone recommend small savings challenges please? Want to start some ,mainly that I won't notice odd bits of change here and there. Don't tend to use cash is the only issue.
I save for Xmas each month and into my daughters savings account but that's it
Find a bank account that does ‘round ups’.
I love the penny challenge. So easy to do with bits of change and you can do it with literally pennies and you save so much! x
Wow! Maybe keep £500 each in the kids car and emergency envelopes and the rest to debt maybe 🤔
Thank you x
If I were you I’d have at least 1500 in the Emergency fund as you are self employed, 1000 in car as car repairs and maintenance can add up, 500 for each child, that can be added to over time. I’m sure you’ll figure out what to do. 💕🇨🇦
That's some great advice - thank you x
Just think if you didn't have to put your money towards debt how much extra you would have each month
This is true x
✌️✌️✌️
🥰🥰🥰
I really don’t think it is wise to keep all this cash in the house.
Pay off debt and put the rest in the bank.
Thanks so - a lot of it is covered with the place holders luckily x