Why do you spend?

its_maths_not_magic

It sounds like you've had your 'light bulb moment', that moment when it all clicks and you get it. I used to be like many others here, I spent what I spent and never really thought about it. For me, money wasn't real. It was numbers on a screen. I occasionally had that twinge of 'should I be spending now?' but I tended to ignore it. What changed was when I woke up and realized that money is VERY real. If I wanted to be able to afford food, shelter, clothes and security I needed to make sure I was spending within my means and saving (none of my debt has any interest and I don't have a credit card so I keep an emergency fund whilst also paying off debts).

Ever since then I have really kept a close eye on my money. I make sure I fulfill my agreements, save and generally try to get things as cheap as possible. One of the things that really helped was stop watching TV with ads. Strange I know, but advertising sort of creates this imaginary world with lovely shiny things and everyone is happy. No-one has to pay bills or go without. And it subtly tells us that this is the way things really are, and that worrying about paying these things off is something only the less fortunate have to worry about, because the rest of us are far too busy being fabulous.

Since I've stopped watching TV I've found that I don't really want stuff. I spend my time doing art or learning my guitar, going for walks and spending time with MrMNM. And I don't miss a thing. I feel far, far better knowing my dog has insurance, I have something to fall back on in an emergency and my debts are being tackled. Far from bored, I quite love my life now.

abby1234519

misskl wrote: »

Yes, but my loan is fixed at 5% and the First Direct Account I want to put my £300p/m in is 6% interest, so wouldnt it be better to save money in that, and then in 2-3 years I will have a house deposit and paid off the loan as well?

Is it an ISA?

To edit: If this is not an ISA and you are a basic tax rate payer then actually your interest rate is 4.8% if you are a higher tax payer then your interest rate is 3.6%

So if it isn't an ISA you are actually losing money by saving it rather than pay off debt

misskl

Yes, it is in an ISA.

misskl

Hi all

Just had a bit of a brainwave and would like to share with you all to get some advice, if I may.
My car, as you know, was expensive (6k) and I also borrowed another 3k as part of the loan to close down two overdrafts which were stinging me at 19.9% APR. In total my loan is now £8589, which scares the **** out of me- I don’t know why I did it!

I really, really, want to start saving for a house, and emergency fund (I’m 29, and have nothing).

By June I will have just over £1000 in savings (this is in my ISA, for an emergency fund).
I have just looked online and I could sell my car for circa £5450 in June (its due its first MOT in July)

I could sell my car, pay off some of the loan (over payments are not charged) and buy a very cheap getabout car with the £1k I will have saved up myself.

This will leave me with £2235, which means I will only have 9.8 months of my repayments (£226 a month) before I am DEBT FREE!! It means I will have to start again with the emergency fund, but I just want to be out of debt.

What do you think?

Thanks

xJOJOx_2

On a whole I'm really good with my money. However, one months hard work could be blown with one day off feeling low/depresses. I've now cut up my cards, no booking a holiday as I feel down and I need one, paying each week this year and will be my first holiday I have done this for. I now also when I feel down, avoid the town and ask people to pay money in for me. I spend my time reading posts on here and era searching cheap days out etc. when I'm down I seam to have no long term sense off money, so I pay off a little bit off my debt when I have the money to stop me spending it on something else. I'm determined to pay all my debt this year and have put small measures in place to stop me getting sidetracked.