Let the countdown begin!

January 7th, 2013 - Posted by in Blog, Debt Free in One year

With just a day or two to go until the start of 2013 my thoughts are turning to just how this journey will fathom through an entire 365 days. I am very positive though and have been immersed in a book that tells me my mentality so far is good. I am however going to break down exactly how I intend to do this. By that I mean I will be very honest with you, describe my life and show you what can be done if you decide to totally an entirely turn your mind to a definite major purpose in life!

This is EXACTLY how I will look for the next 12 months!!!

My debt so far stands at £12,808. I intend to pay this off in 12 pay-days and whatever is left in my bank account each month will be what I live on. I have come across folks who calculate what they want to live on and should they have any money left they pour this into their debts. This isn’t how I work and certainly isn’t as hard-core as I like it.

Now I know for a fact I am punching above my weight here so I will ultimately be turning my hand in order to earn more money to live each month. Here is my break down.

  • My debt of £12808 / 12 months to go = £1067.33 per month.
  • £8555 = Land Loan
  • £2189 = Bike Loan
  • £2064 = Student Loan

I like to be precise by the way. Know exactly where my pennies are going and what for. This is what HAS to go back into my debt so I am clear by 31/12/2013.

  • £1067.33 – £420.66 (which is what I pay in monthly minimums automatically) = £647. This is the EXTRA that I need to pay each month in order to be clear by the end of the year. ; – (

My entire debt encompasses my student loan of £2064 as well . This comes out of my salary each month and my income of £1798 has already had this deducted.

My debt wasn’t as bad as it could have been!

So I shall not be calculating it along with the bulk of the debt.. It will finish in October as far as I am aware (I keep an eye on this though in case of sneaky extra over-payments are taken!!!). My basics break down like this…

  • £433 Rent and Bills
  • £200 Petrol
  • £50 Mobile.
  • £15 Cineworld Card ( To prevent cabin fever)
  •  = £698 Total Outgoing Per Month.
  • SO… altogether we have the £896 (Land+Bike) + £698 = £1593

So my take home salary each month as a basic is £1798. This leaves me with the following.

  • £1798 – £1593 = £205 to live on per month!  Amusing don’t you think?

However I am not doing this in 12 equal monthly instalments. That would be way to easy wouldn’t it. My bike loan stands around £2189 and is a hefty 12% interest so this is going to be slammed dunked first. January and February will have equal amounts of (£2189 / 2) £1094.50  paid towards it ( which includes the minimum payment) in order to clear this debt by the beginning of March. So my calculations go like this…

  • £698 (necessary bills) +
  • £961.26 (Bike Over-Payment) +
  • £133.24 (Minimum Repayment for my Bike Loan) +
  • £297.42 (Minimum Repayment for Land Loan)
  • =£2089.92. This leaves me in deficit by £292 with nothing to buy food and a distinct chance I will fail.

However dear reader I have been what can only be described as HAMMERING the overtime at work. And this is where I will give you an insight into how my mind is working right now.

Positivity oozes through every pore in my body. The determination I yield through positive mental thoughts knows no bounds and I will succeed.

I have been reading a book called “Make More Money; Secrets from the World’s Greatest Finance Classics” which has refined my already ruthless way of thinking. Unfortunately it’s not one of those books which are to show you how to make loads of money overnight – its more about the psychological state you need to succeed. Teaching you how every aspect of your thoughts can affect whether you do or do not succeed.


Minor sacrifices need to be made in order to accomplish the greater good. Debt FREEDOM! So my social life has taken a considerable knock. I have decided to work on Saturday nights. Every Saturday night to be precise and Sunday’s as well if I can manage it. Sundays are worth more and if I work at least every Saturday and 3 Sunday’s in a month I might up my income to around £2300 a month. This I could live comfortably with assuming I am granted all the over-time I need! So my payments are this…..

  • January and February = £1391.92 (Payments Per Month)
  • March – December =  £796.02 (Payments Per Month)

Effectively meaning as long as I keep up with my overtime slots I will have at least £211 ( oh goody! ) available to me in January and February and £805.98 available from March onwards! I also have to be aware that my 30th Birthday in April has to be special and so therefore need to plan for that now. **Groan**

A typical Irish scene..ha!

My parents bought the land with me in Ireland beside their house. It is a half-acre of land that my Dad is turning into an orchard with a fresh spring pond in the middle with all sorts of flowers to attract butterflies and a massive greenhouse to grow his own vegetables. You may think that this is unfair seeing as I live in London and cannot benefit from it but ultimately we have curtailed others from building too close, invading what is now an oasis which will one day be mine I suppose.

They contribute £140 a month towards my payments which will push my “remaining funds” a little higher each month.

I think however reaching £2300 every single month will be hard – but I am riding on realism and a sprinkling of optimism.

To top off this great mass of calculation’s I live a very frugal **insert boring** life.

  • I do not smoke or drink
  • I am a vegetarian
  • My nights out are carefully arranged to encompass as many friends as possible and to ensure minimal petrol is used!
  • I will only ever bring packed lunches to work
  • I  batch cook and meal plan each week.
  • I only buy supermarket own brand foods
  • ….and my cat is my entertainment.
  • I will eBay anything that isn’t nailed down
  • I will sell my skills
  • I will earn points from on-line surveys to turn into vouchers and
  • I will bolster my income in any way possible (within reason).

More on my next post about this!!! I am not as boring as I sound though!

Now bring it ON!

  • Sean McColgan

    Love the detailed plan of attack NSK!

    Just discovered these frugal vegetarian recipes that may come in handy :)

    Looking forward to the next update!

Featured on

Featured on
Visit press page »
Blog Authors
Blog Categories