Life after Debt?

Money_maker

When we became df, started lots of savings accounts. Don't use credit, even prefer to spend with cash. Have one credit card for emergencies, have never used it. Oddly enough, I struggle to spend money even if I have it. Money doesn't hold much value to me now that it's freely available.

theoretica

Debtfreeforever wrote: »

I'm planning to save for things that I know are coming up, such as insurance, service, tax etc...and living on last month income eventually.

Also save for the things you don't know are coming up, or don't know when they are coming up. So when the fridge dies it is a nuisance not an emergency, or the roof needs repairs, or a new hard disk for the computer. I think of this as my 'if its not one thing it will be another' budget.

so_very_confused

Only debt free this month but already noticed a difference. I value my money even though I now have a healthy bank balance. I am wary about spending anything. I have bitten the bullet and bought some much needed household items and am planning on redoing the patio. I also as a small reward bought myself some rather nice perfume but not before I had shopped around online to find the very best deal! I believe I will go forward with the lessons I learnt on my DMP, budget, budget and budget!
I can share with you the joy of putting the car in for an MOT and service and for the first time in many years not sitting at home in a state of nervous anxiety waiting for the phone call with the bill. What bliss!

System

Great thread.

System

enthusiasticsaver wrote: »

Well done on getting almost debt free. Saving for things in the future is a great way to go.

Beyond interest free credit and a mortgage and credit cards we pay off in full each month I have managed to stay debt free since very young mainly due to my Dads urging to beware of credit cards and loans and live within my income. I reckon he has saved me thousands over the years and I passed the same message on to my daughters. I have been a debt/mortgage arrears counsellor in the past though and seen many
people get into massive difficulties with debt.

My suggestions for the future would be.

Get a cashback credit card and repay it in full each month. No interest but you get cash rewards. We use one for supermarket spends and petrol and it is easy to see how much we are spending each month on these. Don't get sucked into getting 0% interest free credit cards unless you are sure you can clear them within the promotion period.


Save for annual bills, holidays, christmas, home improvements, new cars, maintenance on cars and houses. You can either save all in one pot or divide them up. I have an emergency savings account, a holidays saving account, a general savings account and a house and car savings account.


Use Regular savers for saving to get into the right discipline and to get the best rates.


Don't ignore the future. Save into a pension and overpay mortgages. If you have children think about university fees, weddings' house deposits etc.


The most important though is to track where you spend your money and stick to a budget. If you are not in debt it can be flexible but if you are living within your income and have savings and no debt you are in the best position financially you can be in.

Lovely words, I do exactly this in terms of saving accounts (different ones for different purposes) and LOOOOOVE regular savers. You are right completely.

another_casualty

Congratulations to those who are finally debt free, and those almost there :beer::T
To be debt free or even close is a massive achievement ,considering how tough the last 10-12 years has been . Did we have the worst recession since the 1920's and survive ?? Like others, I've been mentally battered and bruised and want nothing more to do with it.

When I do contents insurance , I pay annually which makes it cheaper
I told my insurance company I'd like to stay for another year , but not with the bigger increase . They waived the admin fee , so I stayed another year . I will do the same each year . No need to keep my head in the sand and let the cover keep,increasing and paying more like I used to .
In terms of celebrating being debt and mortgage free, I moved into a new flat , got a really good builder who helped transform the flat meaning in theory that I shouldn't need any work done for a few years. Buying the best furniture I could afford was also therapeutic and means I can feel,tidy and domesticated :rotfl:

What I would like to see though , is for these guarantor loans to be taken off of the tv . Also the credit card companies that keep telling us if we are eligible for one .

determined_new_ms

when we became DF we used the following month's debt payment to pay for a holiday to Morocco. I had wanted to go for years so we had 10 days there. We purchased a new mattress as we desperately needed one. We then saved lots of our income, although we definitely loosened the reins. Once I saved the equivalent of what my overdraft was I closed it. That felt scary!

I then saved a emergency fund. I also have "saving pots" (in reality it's all in one account) for xmas, birthdays, car, holiday and long term savings.

I was out of work a few years ago for a year and lived on my savings, which was fortunate as I had been through a lot and needed some time off.



I found I became quite obsessive about being frugal and it caused some friction between me and oh so I've been trying to be freer with money and not focus on it so much. I still live pretty frugally but it's not such a focus anymore

middleclassbutpoor

determined_new_ms wrote: »

when we became DF we used the following month's debt payment to pay for a holiday to Morocco. I had wanted to go for years so we had 10 days there. We purchased a new mattress as we desperately needed one. We then saved lots of our income, although we definitely loosened the reins. Once I saved the equivalent of what my overdraft was I closed it. That felt scary!

I then saved a emergency fund. I also have "saving pots" (in reality it's all in one account) for xmas, birthdays, car, holiday and long term savings.

I was out of work a few years ago for a year and lived on my savings, which was fortunate as I had been through a lot and needed some time off.



I found I became quite obsessive about being frugal and it caused some friction between me and oh so I've been trying to be freer with money and not focus on it so much. I still live pretty frugally but it's not such a focus anymore

Brilliant to hear this.

Debtfreeforever

Thanks so much everyone for all your advice.

Really helpful, useful and encouraging.

I hope you don't mind me saying, I know a lot of people still have a whole to go, but I feel giddy of the thought of being debt free, finally free.

mumofthetwins

well done OP .. that's flippin fantastic hun


not sure if you've checked him out already but google dave ramsey .. I cant wait to be on BS7


Lisa x