Friday, 25 July 2014

My mission for the 2014-2015 financial year

One of my wishes is to be able to own my own house.
Before I can do that I need to fix up my credit rating. My ex got out a whole heap of things when we broke up in my name and ran up HUGE bills on them, to this day I am still finding out about some, I got a nice phone call from a phone company I have never been with a few days ago for an unpaid bill of $2000 in 2006. Unfortunately there is not much I can do about it as he had all my details, drivers licence number, my equivalent of a social security number, everything. So to them "I" signed up.

Anyway with all of these debts I cannot apply for anything and I hate it, if it were my own fault I could accept it but since it wasn't it makes me really angry.
I have to find out how much I owe everyone and make payment plans to pay them all off.
Hopefully this can be done this financial year but of course that depends on that amount owed.
It will mean being on a very strict budget with no room for luxuries but the end result will be worth it.

So each fortnight I will pay my rent, pay my bills, buy groceries, fuel, childcare and pay off my debts that is all, no spending on things that aren't needed.
I will cut back in every area possible. I will not upgrade my phone or sign up for anything new until these debts are paid.

Now I don't know much about the system, after I pay these defaults I don't know what happens, does my credit rating go to zero or is it still bad but shows I have paid? Can I get loans once they are paid?

I'm not sure. My rent has always been paid, my gas bill is $700 in credit and my electricity bill is up to date, I have a phone on a plan - surely these things go in my favour?

Once this is all up to date hopefully by then end of this financial year (June 30th 2015) I will start saving like crazy for a deposit.

Assuming nothing changes moneywise here
Rent - $520 per fortnight (every 2 weeks)
Groceries - $320 per fortnight
Electricity - $110 per fortnight
Gas - $60 per fortnight
Mobile - $60 per fortnight
Ipad - $50 per fortnight
Home phone (incl internet) - $70 per fortnight
Childcare - $200 per fortnight
Fuel - $100 per fortnight
School fees - $200 per fortnight
Water - $10 per fortnight
Emergency/extras - $100 per fortnight
Medications - $140 per fortnight

So thats a grand total of: $1940 per fortnight. Groceries is on the larger side of what we spend but I'd like to know I have enough put aside.
We get approx $2248.54 per fortnight so $308.54 remains.

This isn't a great deal as we are supporting 4 children too.
But hopefully if this all goes to plan by June 30th 2015 I will have paid off $7404.96 I may not even have to pay that much until I get a hold of my credit rating I really have no idea.

That is also how much I'll be saving once debts are paid off, it is a little amount compared to most I know, we will be living tough.

We are country people so we want land to have our sheep, cows, chickens etc we also need at least 4 bedrooms but at least with our own house we can save (again!) and extend. So looking at the realestate.com website we need approx $700,000 for a property we want (this includes estimated legal costs) so I'd want a 10-15% deposit given my credit history isn't great.
15% of $700,000 is $105,000 how is it even possible to save this amount before I am 70?

Given how much I can currently save (worked on the above assuming the car doesn't need repairing or anything else) it will take me 14.5 years to save this. I want to own my home by the time I am 34, I am now 27, I have 6.5 years to save that amount - how on earth will I do that?
The only option is to severely downgrade what we want in a house which with 5 children really isn't an option they need space to sleep.

Anyone got any good saving tips?


 

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