Starting Over

moneymuddles

Hi,
I've been following this board for years but rarely posted, so be gentle with me!
We recently paid off our debts with some money we were left. Now, for the first time in our adult lives, my husband and I have only a mortgage as a debt.
We were over the moon after scrimping and juggling for so long.
What I feel uncertain of now is how to budget and save to make sure we don't end up in debt again.
Any advice?

Tixy

Hi

Congrats on becoming debt free

Do you have any savings? (any money left over from the inheritance).

If not then the first thing that is usually advised is to save an emergency fund of perhaps 3 months of your outgoings.

I'd do yourself a new budget/ statement of affairs. Not one that is as tight as you have been living allow a few luxuries and then see what money you should have left over a month.

Then you need to decide on what you want to do with that money, many decide to overpay their mortgage, some are saving for holidays or children's education or future or whatever.

Try to keep the discipline you had from when you were scrimping in terms of keeping to whatever new budget you set yourself. Thats not to say don't buy extra things, just do it conciously, having decided you can afford it and its how you want to spend some of your extra money.