Hi,
My name's Jaako, from Sweden but living in London, UK. I'm very new to the idea of living through a frugal approach. Being a 38 year old alcoholic (yes, I share absolutely everything about myself) I've literally messed up the most tasks and people not to speak about my finances so far in life so obviously don't have any savings but instead pointless debts. Since being introduced to AA some 2.5 years ago and having been sober since I've gotten a new life and a whole bunch of awesome changes with the bonus of a great new life and future. Still dealing with the aftermath of the carnage left behind me I've now gotten the answers to my financial problems here at MMM's blog. Just like with my alcoholic condition it was just a matter of acquiring a new perspective on money and my relationship with it, and the key to that change happened here.
Recently started the attack on my credit cards. Have about £5K to clear and then I'm debt free at least. Waiting for an old loan repayment to finish next month (was set up 3 years ago jointly with my ex to clear a £9K credit card debt) in December, so just one more month to go and then I have an extra £150/month going to the last CC.
I'm originally from Sweden but have been living and working in London the past 14 years. Recently divorced with one brilliant 7 year old son (brilliant ex as well I must add). Me and my ex had to live with together for about 3 years after our separation as I was unable to afford another accommodation with my salary at the time. It wasn't so much that I couldn't afford it really, I just spent the money I got non-frugally and couldn't stomach/dare move in to a house share. As I changed out of IT to become a personal trainer some 11 years ago (thinking my work was the problem at the time and hoping it would help me curb my drinking) and then lost most of my established business in the credit crunch 2009 with a two year old son and expensive childcare I decided to get back in to IT for some more stable salary. Needless to stay I had to start at the bottom bracket salary wise but now some 4 years later managed to move in to a slightly better paid job. Also having shed most of the fears I had been carrying all my life I also found myself just ok with the idea of moving in to a house share and give my ex and myself some well needed space.
So, now with this awesome tool of frugal living I'm more enthusiastic about life and the future than ever. I can actually see myself having the power to stash away a pension and maybe even retire early, without having to rely on whatever government is in force can provide me. My older brother who has a massive mustache, introduced me to the idea of "tiny living" some time ago. Maybe that was actually what started this all for me and led me to MMM's blog, but either way that is my long term plan. I've always dreamed of building my own cottage in the woods and living off the grid, but the tiny house might be just the right transition for me. Not to speak of that it will cut the cost of living immensely and make whatever pension I've saved work better. Anyway, that's the retirement plan.
The plan I'm trying to carry out for the near future (3-5 years) is to:
- Get rid of existing debts
- Save up enough money to put a down payment for a flat in Sweden (close to my parents and brother, niece and nephews)
- Move to Sweden, stay at my parents until I get a job.
- With the new job and savings get a mortgage for a flat for me and my son
- My son will move to Sweden with me and we'll start yet a new chapter there (ex still doesn't know what she wants to do, she's looking in to possibility of moving to Holland or Canada or somewhere?)
What I've done so far to cut down spending levels and acquire extra cash :
- Renting a room in a house share instead of own flat (£350 all inclusive instead of £700+ incl for a studio or 1 bed flat)
- Started commuting on the bike (20 miles/day) instead of motorbiking - wasn't very frugal with this buy* but cutting down £120/month in petrol + £36/month in insurance + any maintenance £500/year.
- Instead of a gym membership on top of my climbing center membership I started working out in the park for free. Currently 3+ times a week, saving at least £50/month on that.
- Cooking all my food myself now - slow cooker, eggs and frozen fish rules! Dropped food expenses from £250+ to £120
per month or so.
- Bought a little thermos to bring my own coffee and snacks to climbing center instead of buying their coffee. Suggesting walks in parks where i bring coffee and snacks instead of meeting friends in Cafe's. Been a success on all fronts. Saw my friends wife's creations posted on Facebook, out of the chestnuts he ended picking up for her during our walk last time.
- Bought a sewing machine (1901 hand driven Singer, pure beauty) for £30 buying cheap shirts and taking them in myself as well as started making my own Bike rain cape the way I like it as well as learning a new skill which I can hopefully be able to pass on to my son.
- Put my Suzuki Sv1000s 2003 on sale yesterday. Money (£1300+) will go to pay off CC.
- Selling other stuff like motorbike clothes and tools (£300+)
I might have been hasty dropping my Sunday work as Personal Trainer that I kept up after I quit it full time. That was about £200-£300/month extra for just a few hours work every Sunday afternoon, but new IT salary at new job more than makes up for that and not having to stress so much about getting things done during the weekends and feeling bad that I don't give my son enough of myself more and having to drag him to the gym to wait while I train my clients, is more worth it than I can explain. Plus side is that I have an extra skill I can make really good money from on top of regular employed work, whenever I find that i have the extra free time (like when my son gets older and more independent).
Have also started doing Salsa lessons (got a good deal on Groupon though, 11 lessons for £19 instead of £8 per class, saving £69), which might add some new expenses. But having been single for 3+ years it's about time I get out and actually meet some women and I've always wanted to be able to dance properly. Will most likely cancel/freeze my £50/month Climbing center membership for as long as I'm taking lessons. When I get to a club standard I'll just have to pay whatever entrance fees they charge at the Salsa clubs, so can carry on climbing again then. As I don't drink alcohol anymore anyway I only spend about 50p-£1 per lime and soda drink anyway, so when friends want to have a drink they can do the rounds and I pay for my own :)
There you go. You should at least know who I am now pretty well. I'm now off for a workout in the park doing my standard workout of 5x5-8 Handstand pushups, super setted with 5x3+ Muscleups, followed by 2x10 Hanging leg raises super setted with 2x20 hanging upside down shrugs supersetted with 2x15 dips. And after that I'll go and pick up my son and his best friend take them to the local swimming pool and after that me and my son will take the 4 mile ride home to mine on our bikes. What a brilliant day and it's not even raining!
Oh, and a great thanks to Mr. MMM for all the great posts. I realise it's a bit of a cult thing this place but I figure I'm now of sound enough mind to see it's a good thing for me and I allow it to be what it is and take what I'm comfortable with and leave the rest alone until it makes more sense to me or I can rightfully discard it :)
* Not a very frugal bike purchase. I got stood up when going to buy a second hand bike off ads on our local "Gumtree", second time standing out in the freezing cold with my son for 45 min before giving it up. Got pissed off and decided to build my own "fixie", i.e purchased things on an emotional basis. Bought an old 70's Reynolds 356 frame, had it sand blasted and powder coated and then bought all bike parts separately and built the wheels etc myself. It was an awesome and fun experience but only afterwards did I realise that instead of having acquired a £100-£150 bike I had blown £500-600 on this one and on the credit card of course! Still an awesome bike that takes me well quick to work and anywhere else in London. Roughly 20 miles on the bike on the week days.