Taking the plunge and confessing!

Annie_Fanny

amosworks wrote:

Hun, budgets are stupid. They don't really work and only serve to make people worry about money before they spend it, as well as afterwards.

Read the David Bach's "Automatic Millionaire" book which shows you how to pay off debts without stupid budgets.

Amos - it's easy to say that when you are debt free. Are you feeling ok?

tawnyowls

Em, yes. I've read that book, and it's all about saving money in order to invest it wisely. Can't remember him saying that 'budgets were stupid'. As I recall, he encourages people not to live off credit, not to spend money on things like cigarettes, and to watch their spending. Kinda sounds like budgeting to me.

tyllwyd

About convincing yourself to pay off some debt - how about getting hold of a month's statements and see how much you have paid out in interest. That's money you've got nothing to show for and you will never get back again.

amosworks

Annie_Fanny wrote:

Amos - it's easy to say that when you are debt free. Are you feeling ok?

It was easy for me to say it when I was in 14k of debt too, never used a budget whatsoever to get debt free. Bach doesn't say that budgets are stupid in so few words, but he does explain that for most people they don't work so, so why bother trying to change yourself?

There are alternatives to budgeting and snowballing that work better for lots of people, just not many folks know about them. In everything I do, I try to look at the best way of doing something for me, not the way everybody suggests. Because of that, I accomplish more and do so more efficiently.

I hope I have the wisdom to know the difference between not being a sheep and not ignoring good advice though, but budgets, meh, budget schmudget.

Broken_hearted

Everyone has a budget whether they think they have ot not. You have x number of bills to be paid froom x amount of money available.

Red_Fraggle_3

My lightbulb moment came a few years ago when I finally realised how bad a mess me and the ex were in - he had taken out a lot of stuff I didnt know about. It wasnt just the debt but other things that made me leave with the little one. Went back to mum and dads and confessed, sat down with dad and worked out how bad things were - then ex did some more stupid things and made it 100 times worse. :-)

I did my statement of affairs still have a monthly one on a spreadsheet so I know what I can expect after bills etc. I paid the loans etc off each month - with no help - I thought at £16k and a mortagage on a house that was unliveable I was in a bed way - but having read other peoples stories and spoke to friends who are still waiting for the lightbulb moment I think I wasn't too bad - In the end ex bought me out of the house and I got the loans paid off and a little in the bank and newer car. We don't have a mortgage at them moment we still live with family.

But I watch the pennies more than ever now - don't want me or the little one (not so little now) to get back into that position. Work it on a monthly basis
I set up spreadsheet for the loans showing number of months and payments left - seems a sad thing to do but after a while you forget to up date it and when remember you can fill off loads of months and the money has gone down.

Just read this again - it was harder a lot harder than it sounds on paper but small steps are the best - Good luck