Finally Debt Free After 34 Years, But Still Need to Live Frugally

HairyHandofDartmoor

Thanks parsniphead. The reason I'm dwelling on the lost opportunities is because I need the change in my thinking and behaviour to be permanent and fundamental.

I've had light bulb moments before and then gone back to my bad old ways. I need to learn my lesson because at 53 I have limited time left to earn money, provide security for myself and DH, and most importantly provide a secure future for our children. They are all grown up but they still need our help.

If I can change our financial situation for the better it would provide a safety net for all of us. I really feel that now is the time and I don't want to lose momentum.

The input from other people on my diary is really helping so thanks for popping by .

Purplebonnie

How lovely that you will be debt free soon. I know where you are coming from with bad financial choices in the past, but it's time to look forward to enjoying the next stage of life after all you have achieved

System

Have read your diary with interest Hairy, we are a similar age. How are you going to fund your retirement after you have paid off last of debts? Mr H has taken a pension so you must get a monthly income from that .

Only asking as I want to retire at 60 and wonder how other people manage .

HairyHandofDartmoor

Thanks purplebonnie :wave:.

Hi cumbrialass :wave:. Unfortunately DH's pension was used as a lump sum to pay off our debts via full and final settlement offers. It wasn't a large pension and we had to pay 40% tax on the taxable component and pay back some tax credits :mad:.

This only left enough to pay 50% of our debts. Luckily all of my three creditors said yes to a f & f offer so I am debt free and three of DH's creditors said yes :T. DH is negotiating with the final creditor who holds the last two debts, but we are hopeful of a good result.

Sorry that was a bit rambling, but to summarise neither of us has a pension now. We are both self employed and don't have private pensions. The pension DH drew out was from a previous job dating from before self employment.

Our only income is what we earn. So we're not planning on retiring until we can afford to. At 67 we will get state pension, which is in fourteen years time for me and twelve years time for DH. We will have paid off our mortgage in ten years time so that will reduce our outgoings.

Our goal is to live very frugally and earn as much as we can with the aim of saving an emergency fund and to save up for our retirement.

It's not a great position to be in but due to our own bad planning and money management .

Luckily as self employed people we can work for as long as we like and no one can force us to retire before we're ready. DH loves his work so I suspect he'd be reluctant to retire anyway .

HairyHandofDartmoor

Purplebonnie I know that you are saving up to retire too so we are on similar journeys .

I am quite excited because once we can knock that final debt on the head we will be debt free for the first time in 34 years .

Having this burden (almost) removed makes me feel so light and free that I feel as if I can move mountains some days :j.

Without the debt every penny we make can work for us and I'm very keen to raise our income.

With that in mind I intend to join some more survey sites today and also do some decluttering to see if there's anything that could be sold on eBay.

missymoo81

Hey lovely, have seen you on the other diaries I follow and yo always seem to post positive and thoughtful messages so I thought I would come over and cheer you on from the sidelines. X

Cherryfudge

Just found your diary and subscribed .

I like your idea of recording your 'extra' spends: I'm often surprised at how much I spend on some things that I never realised were of any significance.

HairyHandofDartmoor

Hi missymoo and cherry thanks for popping by, your support is much appreciated :wave:.

I agree cherry that it's the little extra spends that can really add up, in fact that's what put us in debt in the first place.

We've never tended to buy big budget items, so we haven't had lots of expensive holidays (we haven't had a holiday for seven years), we don't have a house full of expensive furniture or gadgets, or designer clothes, and we only have an old car that was given to us for free by a relative.

Our debt is all created by lots of little overspends over a long period of time, not helped by low income and high debt interest.

But I'm determined that everything is going to change for the better from now onwards :money::D

beanielou

I so like your positivity.

HairyHandofDartmoor

So I've joined Prolific Academic and answered a ton of screening questions, so hopefully some surveys will come my way soon .

I have some hardback books I don't want. I know they don't sell on eBay, so tried five of them on webuybooks.co.uk. One of the books they said no to and the other four were valued at 10p each. Not sure it's worth it but I'll try putting some other books in and see what they're worth.

I've also had some ideas on how to spend less:

1. My weekly food bill is supposed to come to £80 per week for four and a half adults, but it often goes over that amount. So my new goal is to be stricter on that front and even cut it down to £74.

2. I tend to do a top up food shop on Saturdays so I need to restrict this to £6 (usually it's £10), that way my total weekly shop will actually be £80 like it should be.

3. I have a bad diet coke habit and reckon on I spend £6 a week on this. This has to stop because I can't afford it, plus they're bad for me. As I'm an all or nothing type of person I know I can't cut down on them, so I'm going to quit the habit completely. The £6 a week that is freed up I'll transfer into my savings account.

4. On my Saturday outings I tend to spend a minimum of £10 and sometimes more. I want to restrict my spending (on bus fares, coffee and charity shop books) to £8 a week. The £2 a week freed up I will transfer into my savings account.

These might seem seem like small savings but they will add up over the weeks, months and years. Just by spending £2 a week less on my Saturday treat and saving £6 a week by giving up the cokes, will generate £8 a week, £32 a month and £416 a year. That seems worth while .