How has your attitude changed?

summerday

Hello,

Just thought I would start a thread about how your attitude towards money and maybe life in general may have changed since you confronted your debt problem and have either got started on your journey of paying it off or even paying it off completely?

It would be lovely if lots of you could post as it may be good inspiration to new posters as well as interesting for others (like me!).

I'll go first. While I was running up my debts (as a student) I had no idea of the value of money, and every payday I would spend my entire wages on as many things as I could- I went out shopping not needing anything in particular but just wanted that feeling of going home with nice new carrier bags with brand new clothes in them. Often the clothes wouldn't even get worn much as they were so impulse bought. Now, on the other hand, I am very conscious of the value of money and it seems madness to slog my guts out at work for things that I don't really appreciate or have much lasting value. Madder still to pay interest for it. I also make sure I put a bit of my wages into a savings account each month when I get paid to cover emergencies. This thought never used to occur to me, I thought credit cards were for emergencies!

If I wanted to buy something in particular I wasted money buy just buying it from wherever was nearest, never price checking to get it from the cheapest place. I always price compare first now, it seems madness not to.

When I was running up debt I knew nothing about personal finance and didn't understand interest rates, compounding, the stock market/ other savings and investments or know how mortgages worked etc. When I decided to sort my finances out I borrowed lots of personal finance books from the library and have learned so much, it makes me determined to always feel in control of my money rather than it controlling me like it did before.

In some ways I may have become a little 'tight' in some areas, but my cutbacks mean I am spending more in areas that matter more to me. For instance I was always broke in December so didn't spend hardly anything on my family's xmas presents, whereas now I love buying gifts I know my family will really get pleasure from, and have given them really nice, memorable birthday surprises that I could never have managed before financially. I'm not suggesting everyone should want to do this as we all have different priorities etc, but the things I spend my money on now give me much more satisfaction.

Oh, one more thing, I used to spend so much on meals out and takeaways that they were just the norm and I didn't really enjoy them, but now they are occasional treats that I really appreciate and enjoy more.

Look forward to hearing your views!

Sarah.x

Old_iron_balls

My vice was nights out with my mates and holidays.
Id spend £30 on a Thursday night in the local. £60-£100 on both Friday & Saturday night then id finish off the weekend in the local on a Sunday night spending £20-£30.
Then there was my holidays clubbing in Ibiza - Twice a year

I did this from about 17 yrs old to about 22ish when I met the other half.

I only go out one night at the weekend now and spend nowhere as much as I would of back then.

Alot of my mates are still spending a fortune like I used to.
Ive tried to warn them etc but some people will just not be told :rolleyes:

Looking back, Ill never forget the good times I had but they have come at price. Hense me being here now !

Cuilean

Hi Sarah,
Good thread, I found myself nodding at a lot of it. When I lived at home, myself and my friends were on decent incomes, and we blew the lot every month. We used to hit the shops after work and shopped till we dropped. I used to find that I couldn't go to the shopping centre and spend less than £70. If I didn't have at least one carrier bag when I headed home, I actually felt depressed. I would load all my purchases into my gas guzzling, oversized car and speed home.

One day, I got transferred up to Scotland and found myself on my own. Suddenly I was liable for bills I'd never thought about before - council tax, rent, utilities. I used to pay them, then head out and buy myself a "treat" to cheer myself up. After six months, work was unbearable so I didn't ask for them to renew my contract, and wound up unemployed. Like an idiot, I kept spending as I had before.

Anyway, to cut a long and familiar story short, eventually the bank said "No more". I had a good cry, packed myself down to the Job Centre, got advice on keeping afloat, took on every temp job going, and started paying my debts back.

Anything I buy now is window shopped for, ideally left until sales, and I make sure it's good enough quality to last more than a couple of months. Food shopping is no longer a "supermarket sweep" affair, and it's teaching me to cook and bake in a way to make Delia Smith proud.

I'm totally appalled at myself when I look back. I clearly had no idea about looking after money, and I blew my chances to have a stable start on my own. It's going to take me a long time to sort my finances out, and there's nobody to blame for that but me. There's also nobody to sort it out but me. As Alanis so wisely said, "The only way out is through".

MSE is a great motivator - people have clear goals and aren't afraid to share experiences and advice. Thanks to everyone on board

southernscouser

Well for a start I haven't been in my overdraft for the last 2 months! :dance:

It has been years since I could last say that! Haven't spent on my credit cards either since September. I never ever will again aswell! :mad:

I really "want" (not need ) a new pair of trainers aswell. Before my light bulb moment I would have bought them weeks ago. Now I'm waiting until I know I have the money for them!

I'm just annoyed with myself I had to get into so much debt before I realised the value and dangers of money, however, I know it could have been more so I'm just getting on with it!

Sassy_Saver

Hi Sarah

I too ran up a lot of debt at university having no concept of how it would disadvantage me for years to come. I had a regular job and for the first couple of years even got a grant but I maxed out student loans, an overdraft and even did a flit from a store card - now paid back - they always catch up with you in the end :rolleyes:

At 29 I finally managed to get a credit card which was a proud day!! This of course is used only for purchases that will be paid in full each month. Lesson learned.

Only £2800 of student loans to go!! Which of course is residing on an interest free credit card

My niece is now planning to go to university next year, so I've bought her a book on managing student finance Let's hope she takes the advice!!

Sarah x

chickpea

I LOVE spending money now - because I only spend what I know I can afford, and what won't hurt me!

I used to have a head in sand approach - paid 20 quid a month maintainting an overdraft, and had a balance of between 2 and 4 grand on credit cards.

I missed a couple of card payments, but never missed a bill.

The 'lightbulb' moment came after I got married, my husband paid off my debt and then we talked and I realised - rubbish as I was with cash - he had zero interest in getting ahead, so I put my head down and learned well.

We now have 50 grand in savings (ok - 48 grand, but it won't be long) our mortgage is paid off (should be able to cash in on 130 grand - house cost 45 grand in 1996) and even though we've left the endowment running, I reckon 9 years from now, we can expect a 30-40 grand payout, that's cost about 120 per month for 20 years.

ING i LOVE - I get about 100 quid in interest per month - probably 110 quid this month. No other bank pays me per month like that - I think this is the best savings account going.

Money for nothing!

tomstickland

I ran up mild debts (£7K via 1K OD, 2.5K credit car and £2.5 cheap loan) and basically spent what I earnt every month. My vice was car parts and tuning etc and loads of pointless drives. Anyway, one night I was lying in bed and I added it all up and a sort of cold fear came over me; I was 30 yrs old, had worked for 8 years and I had nothing to show for it except a £7K debt. So I vowed to do something about it. That something seemed obvious - pay the money back. I was on a decent salary, so I reasoned that all I needed to do was to STOP spending money. Since I don't have extravagent tastes and dont' really enjoy shopping, I guessed that it would be pretty simple. It was I suppose.
Once I'd cleared most of the debt, a process that took me about 2 years, then I had enough momentum to start saving. I had got to the stage of really resenting spending money that didn't need spending.

The most important thing is that being in control actually makes you feel a lot happier. We live in a society that confuses buying things with happiness. Buying things is never the way to make you feel better in the long term.

I suppose, for me, the main turning point was the day that my car was stolen and then recovered and I realised that, actually, I didn't really care for it anymore. So I broke it up and sold all the parts, netting around £2.5K in the process, enough to buy another car and put £1.5K into the bank. Since then I've spent absolute minimal amounts on cars (which are just big washings machines that you sit in really), but still fed my mild addiction to driving enjoyment.

Willsnarf1983

Talie wrote:

Hi Sarah,
. Food shopping is no longer a "supermarket sweep" affair, and it's teaching me to cook and bake in a way to make Delia Smith proud.

Keep buying the books everyone, we need cash for new players!!!


Will

Smiley_Mum

As soon as I was old enough I applied for a credit card, and I also ran up debts in a catalogue, I was just 18. I had around £1,000 of debt which was a lot for me. However, the matter got resolved over a period of time. Since then, I'm now a lot more careful with my money, as I also have family to consider. I do have a lot of credit cards, probably more than I need but I did acquire them when in full time employment. I doubt I'd be able to have them now as my circumstances have changed. Having said that, they are all in good standing and I have no debt, apart from a 0% balance on a credit card which I could pay off tomorrow if I wished to do so. I just buy things when I need to buy rather than just buying for buyings sake. I'm not a shopaholic type and I know now why I spent excessively in my younger days. I do spoil my kids at times but they do get NO from me a lot and they don't hassle me. I don't buy them a lot of stuff, so when they do get something they REALLY, REALLY want they look after it and take care of it. I'm trying to teach them about money and the value of things etc.

skintchick

I used to just want things, and would stick them on a cc, or my overdraft, thinking I could pay it back later. I always paid everything off in full so neer thought I was in debt, but now I have wised up, paid of my ccs, and haven't been in my overdraft for two months now.

It's not easy, but when I want something I work out how many weeks' worth of food it is - my budget for food is £15 a week, so the belt I wanted recently at £40 was nearly three weeks' worth! Needless to say I didn't buy it.

Now, I want to save more then I want to spend, and am becoming a bit of a tightwad!!

youngandreckless

I have finally learnt how to prioritise. Before I would buy everything, now I work out what I can afford and only buy what I need or really, really, really want. I don't believe getting out of debt has to be all doom and gloom, I get such a buzz out of my occasional treat because then I know I've really deserved it x