Now debt free BUT don't know what to do with my money!

finallydebtfree!!

you sound like me op!

I spent 6 months debating on whether to pay off my debt with my savings, last october I did just that, and now less than 6 months later I have that money in savings again and no more debt!

but now I spend all my time thinking "do I really need it?" and the answer I usually give myself is no! (hence the reason Ive managed to save £1300 since christmas on a measly wage in retail!)

but less than a year ago I proably wouldnt have bothered and put it on my credit card and took out another loan/finance agreement in order to get it! Thats how Ive got my car, laptop, expensive presents for people who would have been pleased for something at half the cost and my trip to australia (although I dont regret the loan for that )

mintymoneysaver

i know exactly what you mean. I have been debt free for a few months now, although haven't managed to start saving yet as children's school trips and a necessary new car have got in the way, but I do really begrudge spending money. I spent £9 0n a new top in the M and S sale yesterday, and thought I was being really excessive!

mountainofdebt

Another thought has struck me ...


if everyone, who wants to be debt free or who is debt free, asks the question do I really need this and is it worth the money then that is not a bad thing surely?

It's when we stop asking ourselves that question before spending that we are heading towards the cliff again.

Catseyez

ZTD: No, I don't think it's too early to start thinking about saving for retirement. In fact, I worry that I am leaving it too late. In fact being able to save for retirement was another motivation for getting out of debt.

finallydebtfree!! wrote: »

you sound like me op!

I spent 6 months debating on whether to pay off my debt with my savings, last october I did just that, and now less than 6 months later I have that money in savings again and no more debt!

but now I spend all my time thinking "do I really need it?" and the answer I usually give myself is no! (hence the reason Ive managed to save £1300 since christmas on a measly wage in retail!)

but less than a year ago I proably wouldnt have bothered and put it on my credit card and took out another loan/finance agreement in order to get it! Thats how Ive got my car, laptop, expensive presents for people who would have been pleased for something at half the cost and my trip to australia (although I dont regret the loan for that )

I too funded part of my trip to Australia on credit and I don't have any regrets! I only regret ever wasting my money on utter crap that I didn't need.

Well done on saving all that money since Christmas!

Catseyez

mountainofdebt wrote: »

Another thought has struck me ...


if everyone, who wants to be debt free or who is debt free, asks the question do I really need this and is it worth the money then that is not a bad thing surely?

It's when we stop asking ourselves that question before spending that we are heading towards the cliff again.

You're absolutely right! It's just once you become debt-free (well, in my case anyway) the psychological aspect of spending money changes. Although I know I can afford something (something I really want that I have the funds for), I am reluctant to do so because I have come so far and have accrued x number of £s in savings, that it seems like a shame to withdraw it.

But yes, to continue to stay debt-free it's important to carry on asking whether something is 'worth it'.

finallydebtfree!!

where as before my hobby was shopping now its watching my savings grow! have become a bit obsessive I think, although I have blown my bonus on a trip to China and will be using some of my savings for a girly weekend in Milan soon

Catseyez

finallydebtfree!! wrote: »

where as before my hobby was shopping now its watching my savings grow! have become a bit obsessive I think, although I have blown my bonus on a trip to China and will be using some of my savings for a girly weekend in Milan soon

Oh fab! Are you going to set yourself a budget for Milan?

I went to New York not long ago and gave myself a budget. By the end of my trip, I still had loads left but then got a little carried away in Duty Free and spent most of it! But buying at Duty Free prices in New York worked out so much cheaper than if I'd bought it over here. I could also argue that I 'needed' the items!

finallydebtfree!!

well we have the flights (£42 with ryan air) looking for a good deal for accommodation. thinking of taking around £200 with me for food, drinks and shopping! will have my cashback credit card with me though (will only be in Milan from saturday am until monday am)

finallydebtfree!!

just to add I wont go crazy with the credit card and there is money in savings if I need it!

Catseyez

Do you have a Nationwide card (credit or debit)? They don't charge for spending abroad and for me, it works out cheaper than using my cashback credit card (GE Money).