motivation to sort finances?

danih

How do you motivate yourself to start, and then carry on sorting your finances? I've started working out a budget, and a routine for shopping and planning my purchases. But I've done this before, and given up before - fail every time. I'm am impulsive shopper, never bn a natural planner. And I have 33 years of bad habits to break.

How do you go it?

BitterAndTwisted

Fear of the S hitting the fan! Part of it is understanding the concept of deferred pleasure. A little bit of jam today plus a little bit set aside for tomorrow.

Buzzybee90

I'm motivated by future goals.

Do you own a house? Want to get married & children? If applicable.

NinjaSavingKat

I agree with BuzzyBee.. you have to have a goal. That is your motivation. Mine was a house but since becoming debt free I am now planning 5 years of travel instead. Something I would never have been able to fathom a couple of years ago.

Make goals. That's the key.

By the way - how much debt?

scorpio_biker

I look at how much I'm spending on my debts, then think what I could do with that money if it was mine. That makes me focused.

marisco_2

My motivation came from seeing people around me struggle financially and the restrictions that this inevitably put on their lives. I also had no desire to end up paying over the odds for things by using credit and incurring ridiculous interest charges.

So years ago I set up three bank accounts. One where my income is paid into. Another solely for all my bills which are set up on direct debit. I keep a regular eye on this and make sure I am getting the best deals for insurance, utilities, phones, broadband etc. I am one of those who votes with their feet and have changed suppliers when a better offer came along. I'm not OCD about it but it does feel empowering to have a level of control over my expenses. Then I have a spends account to cover food, petrol and all other monthly expenses. The only one I have a card for is the spends account so as money in the other accounts cant be touched. Sitting down and drawing up a very realistic monthly budget helped me to set aside the right amount and I am comfortable at sticking to that.

Before thinking of setting up a savings plan I put money into an emergency fund. Now if some problem crops up with the car or around the house I can fall back on that, without the cost of putting things right impacting on my monthly budget. I am basically a very lazy person and couldn't be doing with the stress and worry of robbing Peter to pay Paul till pay day each month. It takes little time or effort to stay on top of things now and it feels great to be financially secure.

tayforth

Financial freedom.

Being able to have choices in life.

Any life goals you want - buying a house, travelling, starting a business etc.

koan_2

If you use EBay, you can get just as hooked on selling things, as on buying and it will at least make you a little bit of money.

Mirno

Do you understand why you spend money?
Are you even conscious of it?

The biggest mistake people make when trying to change anything about their lives is setting big goals. The new years resolution to run a marathon is almost impossible, while a new years resolution to be able to jog without stopping for 30 minutes is something you can do.

Before you start saving, keep a diary of what you spend money on. Every penny you spend on anything - keep a note of it in a little book that you carry with you. In two weeks time, go through the book and scare the living hell out of yourself on how much you waste. Relate the spending to things you want.
That £5 on coffee and magazines every day - that's a holiday you've wasted on celebrity gossip and a caffeine fix.

Once you're armed with knowing why you spend money and what it's costing you, when you pick up something remember what you're giving up in exchange.

danih

I am pretty much debt free - use overdraft and credit card occasionally, but tend not to use either most months.

I did have approx 6000 /7000 of debt, and I have this all paid off.

Instant gratification seems to be the problem - popping into shops on way home from work, buying diet coke, sweet stuff and "bargains" I don't need. I go to the shops for a wander round on my days off. Pop to shops on my way into work sometime too, for lunch. I tend to spend just 10 or 20 a time, doesn't seem like much. But it could b 2, 3, 4, 5 times in a day.

We are hoping to buy a house, and will have our 5% by the end of this month.

but I am slowly realising that we have bn v slow getting there, I waste hundred s of pounds every month, and don't know what I've spent it on. I am really quiet disgusted with myself.

We have no children yet, but are trying.

Part of the background ground is that until 18 months ago, I was on minimum wage and only just has enough income. I have been to university twice, and student life, as well as full time unpaid placements didn't help with having a stable income. 9 months ago we got married, and all out money went into that. On the day we got married we had all out costs paid up - no debts. I think over the last 9 months I have had a nice income - bout 17 000 per annum - and have enjoyed spending it. I never ever budgeted - always paid bills, then enjoyed spending the rest.

ecgirl07

Give yourself £20 (or £10) a week for purse/wallet money - have this as cash and once its gone on coke, sweets, lunch its done. Do not switch/use your card for any of these purchases. If the cash is not in your pocket you can't spend it.