It is my favourite time of the month again when I get to make yet another debt repayment and post yet another debt repayment update. Let me just grab my calculator and put my geeky glasses on!
September has been a very busy month for me. Work has picked up and there were days when I had to stay behind in the office finishing off my projects. I also moved out of my flat where my rent was pretty high and temporarily moved in with my sister.
My original plan was to stay at my sister’s place for about two or three weeks while looking for a place to live. My sister shares an apartment with two other professionals in their late 20’s. She has a huge bedroom with an en suite bathroom in a newly decorated flat. The kitchen is quite small though but since her two flatmates don’t really cook, it’s not so much of an issue. The best part is the location. It is located in an up and coming area of London which is fairly safe (I say fairly because it’s London after all). Many young professionals live in the area, and when I walk out of my sister’s flat I find myself on a busy road full of restaurants, bars, shops, take away joints and many other fun places. Also, a tube station is just around the corner and it takes me literally one minute to get to my platform. Another bonus is that I can now sleep a bit longer every morning as I get to work faster from her place.
Why am I telling you about my sister’s place? Well, here it goes… I am here to stay! Yes, that’s right. I have a very comfy sofa bed all to myself to sleep on and so far I am loving it here! This is not a long term solution, but I will stay for at least a couple of months. There is enough space and I love her place! The best part? You have probably guessed it by now. My rent is going to be so low that it makes me laugh. To give you an idea, it will be nearly three times lower than what I used to pay for my old place (it is now down to 17% of my take home income from my day job as opposed to 42% I used to pay for my old place) and I won’t start paying it until the end of October. Currently, I have agreed to stay until the end of November (two months from now) but we will review our living situation in the next month and take it from there.
This little arrangement frees up quite a bit of cash in my budget, and every single penny of it will go towards debt repayment. Let’s look at the figures –
End of August Figure -£3,508End of September Figure -£2,395
End of August Figure -£8,987
End of September Figure -£8,860
End of August Figure -£12,495
End of September Figure -£11,255
The total amount I threw towards debt this month is £1,361 (£121 of which was taken in interest charges). This converts to USD 2202 and CAD 2264. Wow, I think I prefer the figure in Canadian dollars rather than in British pounds! 😛
September has been the best month for me so far in my debt repayment journey. I made an extra £180 in the month of September but spent half of this money on my flight back home in January next year for an early celebration of my 30th birthday with my family. I did save the rest and added a bit more to my savings from my pay check this month. My goal is to have £500 in my emergency fund. I don’t have a particular deadline but, fingers crossed, little by little I should reach this goal fairly soon.
I am off my spending crash diet. Having spent just over £125 on my needs in the month of September (groceries & personal care items) and not a penny more, I have allocated an additional £100 to spend as I please in the month of October (eating out & entertainment) on top of my “needs” budget. I do think it is important to have a bit of extra cash to spend as I please. This makes the debt repayment journey a little more fun! 😛
How was your September? How is your debt repayment/savings progress going?