So what will you do next after becoming debt free?

castlelough

Just looking for some motivation!

Wondering what people's dreams are for after they become debt free? What will you do with all the disposable money that was tied up in debt repayments?

Will you save?
Or will you enjoy spending that bit extra for a bit?
Or will you save for something you've wanted for ages?
Will you become a MFW and keep going with the thriftiness and dedication?
Will you save to buy a property or move house?
Or something else entirely?

I keep thinking about how much extra money I will have when I have finished my debt repayments.
I hope to join the MFW board but also would love to just save up for a bit and have a landscaper come in and help me design the garden and build a sand arena for horseriding. I have a pension but would like to bump up my savings account (for college etc) for my daughter and any other children we might have and get some work done around the house. Just will have to stay disciplined to make the most od the disposable income and not fritter it away on extras...

pab233

Interesting question

Whilst I would like to think that I would be able to use the newly spare cash to go on more holidays and buy a better car, the reality is that I will be saving it until I have enough to buy my partner's ex-husband out of his share of her house. Then it will be used to help fund 3 kids through university.

One day I'll get the holidays and the car but it will be a while

lyndseyb2009

I've found myself actually being very sensible with money since becoming debt free in Sept last year. We did have a couple of months immediately after where we spent our extra income on things we really wanted - I needed a new laptop and my old one was kaboot, but I was sensible and waited until the Amazon flash sales and got a £600 laptop for just over £220. My OH wanted a new computer (not needed, just wanted) but we waited until after Christmas and used vouchers we had received from family and friends for Amazon to put towards his computer, so in the end I think we only spent £50.00 "cash" on the computer and it's a top of the range model. He bought all the parts himself and built it as he said that would be cheaper than buying a high spec ready made one.

Being able to save to move into a bigger apartment as also a big win for us. We live in London so to move we would have to have around £5000 available to make it feasible - we knew we woudl need this to cover the fees + deposits + first month rent plus the cleaning for the current flat and removal company to help us move. We live in a small pokey open plan studio now and are moving to a lovely 2 bed, 2 bathroom in the same complex (and for the same rent!!) We always worried that we would never be able to save up to move but after actually building up savings, we are officially moving in 6 weeks time

And actually having savings itself is amazing. We've discovered that when we don't have debts to pay back, we can actually live on my OH's salary which means almost all of mine can go into savings ( we keep a little back for the odd treat - meal out etc, which we can now afford). Which is excellent for our wedding fund. We've managed to save just over £4000 in the last 2 months which that alone makes me not want to spend. I don't want to see that number go down, I want to see it build month by month.

Our aim is to have enough saved by the end of next year to buy a house. I think we are definitely on the right track

WantToBeSE

When i am DF i plan to save up £5K as a safety net.

After that i want to visit Paris, Berlin and Dublin. Maybe just long weekends, not full on 7 day holidays.

tori.k

we are planning to FIRE and retire early so debt free then savings & mortgage free, my reckoning it will take us ten/twelve years so I will deserve to put my feet up

Domayne

It's been 2.5 years since my debt free date now and my plan was to be as dedicated to saving as I was paying off my debts.
I have saved 14k in these last 2.5 years but It could have been double that.
I have been on some amazing holidays though - Iceland, Egypt, Las Vegas, Rome, Madeira and some UK breaks to Weymouth and Edinburgh.
Now I don't know if I want to buy a house and be tied down with a mortgage for 20-30 years.
I have the travel bug badly now that's all I want to do! I've booked new York and Greece for next year already but I'll carry on saving anyway whilst I decide what the heck I'm doing with my life!

lazer-zxr

Ah .... the dream that keeps us going ...

I'd never even considered this before, but now that you mention it, I think it needs planning.

DFD September 2020

and fund the following with an extra £3600 per month and zero debt:


1 - Build up a £5k emergency / safety buffer (Sept & Oct 2020)
2 - Treat my wife to a weekend break (maybe in Liverpool - never been there and always fancied it), and shopping spree, for new clothes etc. (Nov 2020)
3 - Buy a better 2nd car. (Jan 2021) [cash]
4 - Take family to Euro Disney (Spring 2021) [cash]
5 - Bathroom / Kitchen refit (Summer 2021)
6 - Buy a BTL property (Summer 2022) - Aggghhh... new debt!
7 - Buy a better 1st car (Jan 2023) [cash]

MrsSave

4 years left on this loan, though hopefully I can overpay from next Summer when I'll be back in work after maternity leave. Once we're debt free I'd like to build up a few different pots,

1. Increase emergency fund to £10,000 (very long term plan),
2. Overpay on the mortgage a little each month,
3. Save for a new kitchen and bathroom. Would like to Tarmac the front of our house as well,
4. A holiday abroad (would love to take my children to Disney),
5. Other little saving pots for the future.

Obviously I don't expect to do all this within the first year or 2 of being debt free, these are long term goals.

WantToBeSE

WantToBeSE wrote: »

When i am DF i plan to save up £5K as a safety net.

After that i want to visit Paris, Berlin and Dublin. Maybe just long weekends, not full on 7 day holidays.

I forgot to mention that I'd also like to save £40K for a house. It seems totally unattainable to me at the moment, which is why i probably forgot it!

castlelough

Thanks for all the fab replies! Keep them coming debt free wannabes!
It is so motivating to see the possibilities that await when we finally become debt free!!!

SpekySquarehead

Being in debt and focusing on change that has completely changed my life for the better. Meaning, I'm now much more sensible and careful with my money and I firmly believe that'll stick with me for the rest of my life even if I won the lottery.

My plan after becoming debt free is to save the money to get a deposit down somewhere. After that, I'd like to then save to put a chunky deposit down on a new car. Those are 2 things I've always dreamed of in my life; buying a home and buying a brand new car to the spec I want.

Meanwhile I'll have an emergency fund, which will have no limit and I'll always put money aside for it.

And I don't envisage a time when I don't use YNAB. It has been paramount to the steps I've taken so far.