Debt free (ish).....for now!

jojitsui

Not really sure if this is the right place to post so please move if it is not.
I have recently sold my house and paid off all my debts, minus a bank loan that is nearly finished and has fees to repay early.
I am really worried because my previous attempts of staying debt free have failed miserably. I am rubbish with money and my budgeting skills are very poor.
We are wanting to buy another soon so I really need to not only stay debt free but also try and save as much as possible in the next few months.
Any advice would be great. I know posting on her and joining in the challenges keep me motivated but I can't even seem to do that at times!
Thanks

Toonsy

Summon some dedication. I know it's easier said than done.

Give yourself a savings target towards the new house and try and stick to it.

tori.k

You have options increase your earnings or lower your expectations.
You need to find your proper budget, the figure that allows you to cover all your needs ( realistically) then the remaining money is split between wants and future (savings) then find the self discipline to stick to it.
At the moment your finances are controlling you, not you it.

tempus_fugit

If you are that worried you will start getting into debt again then make sure you have cut up all and any credit cards that you have, set a strict budget and have anything left over sent straight to another account by standing order just after you are paid, and don't touch that account. These aren't the be-all and end-all measures of course but they would be a start.

Ilona

Just an idea. You know when teachers need to motivate kids at school, they put up a chart on the wall, and award stars to those who have done well. Why not make a chart to record your savings towards a new house. Get a big piece of paper, really big, find a picture of a nice house, something that you might like to live in, and stick it on the top of the chart.

Every week or month, whenever you get paid, set aside an amount to save towards that house. Work out how much you need to pay the rent, pay for utilities and food, a car to get to work or bus fares. When that is covered, then put a chunk of what's left in a separate account towards your house. Do not steal from that account because you are stealing from your future.

No more frivolous spending, coffees out, snacks, magazines, etc. From the start your focus should be on that house, the one you are saving up for, the one you are going to eventually own.

The term 'rubbish at money', comes up over and over again, it doesn't have to be like that. Give yourself a kick up the backside and make a plan to to win this game. The future is down to you, no one else. You choose, you can either be a slave to money and spend on rubbish, or you can take control and make money work for you. Fill in the chart with every penny saved, watch the numbers rise. Monitor, read it often, week by week, month by month. The bigger the number, the sooner you get your house.

I wish you well, keep us posted.
Ilona

DesignNotDefault

Hi jojitsui,

I echo the advice of the above posters plus the following: you need to find the root cause of your spending and why your budgeting is poor, otherwise you'll be going round in circles and may put yourself in a worse position.

From personal experience, I found that a lot of my spending habits were triggered emotionally. It might be good to have a look at your own habits and what triggers you, alongside more practical strategies such as routine completion of simple budgeting spreadsheets, and cutting non-essentials (this is where a SOA is useful). Lots of free tools can be found on here as well as the wider internet. Tracking your spending and having routine is key, as well as having the support of family/partner/friends.

Being a member of this site has helped me enormously as well.

I found doing the above was liberating and I feel more focused.

Hope that helps :-)

DND

jojitsui

Thanks everyone.
I love the chart idea as I am a visual person and seeing something daily will help keep me on track.
My money is usually spent on nights out and impulse buys in shops I know I need to stop this this weekend I have already made plans that will not involve me spending a lot of money.

kram

Hi jojitsui,

Why don't you keep a spending diary, that will will help you keep a focus on things.

Good luck

K

jojitsui

kram wrote: »

Hi jojitsui,

Why don't you keep a spending diary, that will will help you keep a focus on things.

Good luck

K

I used to do this and it worked really well. Thanks very much

Angela84

Hey, just wanted to say hello!
I share your worry that when I become debt free I could easily jump back into debt again if the mood took me.

My plan is: knowing myself, I like a project for a few weeks and then fixzlenout, I've done it with healthy eating plans, visiting the gym, even becoming debt free, I like a fad and then I get bored easily. So I'm trying to combat that by staying accountable on here, making it part of my daily routine to update my diary and some subscribed challenges.

Other ways I'm helping myself:
Don't take any cards out with me, that way I cant impulse buy.
If you're a treat kind of person, don't be too strict and say you're not eating out for the next year etc, just stick to one night a week so you can plan ahead and have something to look forward too.
Same with clothes etc, allow a payday treat perhaps with a set limit so you don't feel deprived.

And nice colouring in charts if that's motivating for you, colour in a nice square with each bit saved!

jojitsui

Hi Angela84. I'm exactly the same. If I am constantly working towards a goal I give it my everything...until I get bored and give up!
I've printed out a chart and bought myself some stickers from the pound shop and am going to reward myself for every £100 saved/not spent on impulse buys/nights out. Instead of keeping it in my current or savings account I am transferring it straight into premium bonds so I wont spend it!