The lessons I've learnt from last year...what are yours?

its_maths_not_magic

As another year closes in on us, Im looking back and reflecting on all that I have learnt. And I was hoping others could share what they have learnt because its always good to get another perspective.

It hasn't been very long since my light bulb moment, infact I can still remember very clearly the precise moment I realised money is real, and very important (especially if you like living indoors and eating and stuff). Since that deep and profound change I have learnt quite a few things on this journey:

1. I know it sounds bleeding obvious, but live within your means. Mr MNM and I moved somewhere that we could afford. The difference is astounding. Actually being able to pay off debts, save a bit and have some sort of security feels amazing.

2. Budgeting is a skill like any other. When I first started out budgeting I made mistakes. And I assume I probably will continue to make them. What's important is that I learnt from those mistakes and never made the same one twice. The more I budget, the better I become at it.

3. Budgeting takes time, patience and continual dilegence (sp?). But once you have a good system in place, it gets easier.

4. Becoming more disciplined increases the richness of your life, it doesn't take pleasure away. By becoming disciplined with money, its spilled over into other areas like learning the guitar or taking a daily walk. I now have calluses on my finger tips from practising the guitar every day, and Im proud of myself for my stick-at-it-ness.

5. A good buget is one that is prepared for predictable things and emergencies. To this end I have worked out my major yearly bills, and am able to plan the month ahead, knowing when my phone bill comes up. If I do have an emergency, Im not up the creek without a paddle. I also have made a list of all sorts of emergencies and what to do should one come to pass. This is going to be a work in progress, but once finished, if something big and bad does happen, I at least have a roadmap of what to do.

6. Having stuff is no where near as satisfying as living a full life. I don't have an ipad, a games consol, a TV, a wardrobe full of clothes or many other things we think we need to enjoy life. I do however get to play music, create art, go for walks in the forrest, spend time with my little family, donate to charity and I genuinely love my life. If a magic fairy offered me a million £s, I'd keep things exactly as they are.

These are the lessons Im bringing in to the new year with me. I'd love to know what you've learnt this year! :beer:

Sedge123

What a nice post.

I've learnt to question if I actually need something rather than just want it.

Having No spend days is actually good fun - and I like the feeling of being on control over whether I spend money or not.

I can stay within our food budget - Even at Christmas, I just need to think a little bit more about what we buy.

abbylou

They all sound like very valuable lessons, well done!

The best thing I have learnt this year is that you can set up your own DMP and manage it yourself. Dh and I were in a plan with a company we had to pay a fee to up until October this year. We felt like we were getting nowhere. We finally bit the bullet and cancelled the plan before setting it up ourselves. We now have a DFD and have set up a spread sheet so we can see the debt decreasing every month.
Although we are only paying a tiny bit more out each month it feels like we are really on top of everything. Just wish we had done it sooner.

Growurown

I definitely need to tighten up on the budgeting. It's got far too slack recently although I find it difficult as OH doesn't really worry about it too much. I think I will go back to cash. If we have an amount of cash for food each week we are much more likely to stick to the budget. Our petrol usage is pretty much the same every week and in budget but the food I can easily overspend on.

SpecialBrew_2

I've learned that on every occasion I've used credit to buy myself a good time in the past, in addition I've unwittingly committed to buying some overpaid banker an even better one in the future.

Cranny44

SpecialBrew wrote: »

I've learned that on every occasion I've used credit to buy myself a good time in the past, in addition I've unwittingly committed to buying some overpaid banker an even better one in the future.

I like your saying its so true :mad:

claret_mike

Great OP to be honest - I definitely agree with 4 in that often it is lack of structure that sends people off the rails. Whether it be money, dieting, getting fit or learning guitar..

I like no 5 - Often when something happens unexpectedly, having a cool, clear head is not easy so whilst you cannot expect to know all possible issues that may arise, it's a really good idea to have some plans formulated for all the ones that you can think of happening. If the unexpected does happen, maybe a solution to one of the things you thought may happen could still help you out.

I am creating a vision board of the things I could have when I get to the financial position I want to be in.. Reminding myself of why I am getting more serious with my money is actually becoming quite fun. Everytime I see something I want - I just ask, how much longer will it take me to get what I really want.. That seems to curb the need to want to waste my money like I have in the past..

good_advice

Good post it's maths.
It is a long journey and may take several years.
It takes a years cycle to reduce some bills as on annual tariff.

Time, patience and dedication
Buckets of will power.
Power to say NO!
Lead a more simpler life.

Enjoying_life_more

its_maths_not_magic wrote: »

6. Having stuff is no where near as satisfying as living a full life. I don't have an ipad, a games consol, a TV, a wardrobe full of clothes or many other things we think we need to enjoy life. I do however get to play music, create art, go for walks in the forrest, spend time with my little family, donate to charity and I genuinely love my life. If a magic fairy offered me a million £s, I'd keep things exactly as they are.

All of this is fantastic advice - thank you for posting - and my favourite one is number 6 - this is so true :T

Chrisblue1962

Thank You its_maths_not_magic for a frank, honest but inspirational post. I've learnt this year to be stricter with my money but a lot of work still needs to be done.

I feel I still need to closely examine, monitor, refine and implement changes to not only my budget but my whole attitude to money, debt, personal possessions and how to value things and what to value in life.

Over the next few days, I will sit down with a cuppa and take time out to honestly look at where I am now on my "debt journey" and where I want to be...

Only I can make the journey but I know I'm not alone

Calling14

Setting targets work.

Small annual bills/ emergency funds savings account needed or otherwise end up on a cc.

Stop using credit cards or they are never going to go away. Reluctant to cut up cards as still playing balance transfer game.

Stay away from shops and don't open great offers sent to you online - temptation removed.

Do the challenges on here, make friends and have fun.