DIARY CLOSED - DEBT FREE IN SEPTEMBER 2022. I was in debt for 33 years.

db2016

subbed, and good luck!
im a tech guy, but i find it useful to not think of what the things such as my camera / PC / printer etc cost me to buy, but how much they can bring in.
eg in the next month or so i am budgeted to spend the price of a small (relatively) new car on a PC, but i know from my past with old one that the camera takes photos which are in demand from people, and thus the PC is used to get them edited for these people to use. so it will pay for itself in around a year, in cash and more in how quicker it will do the editing!
so it's good to look at things as the value they can make you, especially with creative things such as photography or crafts such as you do. so dont look at your stash as omg that cost me £1000 eg, look at it and think, oh thats xmas presents i can make and thus save on retail prices, or even there is my stash and it will make 5x its costs etc.
then its just basic prices charged vs cost to make - eg, i may spend £20-30 getting close to my subjects i photograph, but i could take photos that bring in £10-£???'s each. so the rest is profit of course.

craftyali

db2016 said:

subbed, and good luck!
im a tech guy, but i find it useful to not think of what the things such as my camera / PC / printer etc cost me to buy, but how much they can bring in.
eg in the next month or so i am budgeted to spend the price of a small (relatively) new car on a PC, but i know from my past with old one that the camera takes photos which are in demand from people, and thus the PC is used to get them edited for these people to use. so it will pay for itself in around a year, in cash and more in how quicker it will do the editing!
so it's good to look at things as the value they can make you, especially with creative things such as photography or crafts such as you do. so dont look at your stash as omg that cost me £1000 eg, look at it and think, oh thats xmas presents i can make and thus save on retail prices, or even there is my stash and it will make 5x its costs etc.
then its just basic prices charged vs cost to make - eg, i may spend £20-30 getting close to my subjects i photograph, but i could take photos that bring in £10-£???'s each. so the rest is profit of course.

Thanks.  Yes, good point.  I am working on ideas for passive income, and my tech is just part of that.  Would love to see your photos.  Have you got a website?

craftyali

I did a bit of shopping online this morning, but also sold some craft stash on Facebook.  I then listed a few more items for sale.  I will sort out books today, and see if it is worthwhile attempting to sell any of them.  Otherwise, I will be donating to charity.

Just about to design the spreadsheet for recording spending.  I expect I will change it regularly, but at least it is a start.

craftyali

Well, I didn’t keep up with my diary.  However, I have been clearing debt.  As it has been mostly on interest-free, I did get a bit lazy with the payments, so my DFD slipped to this year.  I owe less than £3500 in total now (and no overdraft) and will be reaching my ‘Magic Day’ by July.  

I have 3 credit cards to pay off (all interest free), 2 OpenPay (from buying on a tv craft channel, and they end next month)) and PayPal Credit (interest free until the end of March, so targeting that).   

Spending - currently doing #nospendjanuary and I have almost totally reversed my shopping habits.  I tend to look at things online and then leave it.  If I definitely want/need and can afford, then I do buy, but often I realise that I would rather pay some extra off a debt.  

Selling stuff - I continued to clear out my craft room.  Still got a few things that could be sold or donated, but not able to get to the charity shop, so there are bags of things waiting to go.  Nothing high value left.  Also sold books and other unused items (some guinea pig beds yesterday - £50 in my bank account).  £58 from a complaint to a previous bank (problems getting account closed) and that all helps get to DFD.

Crafting - my new addiction is Diamond Painting.  Been lucky and won a table for it, plus some kits, so not spending much on it.  My other crafting is mostly using up what I have in my craft room, plus digital stash.  I did treat myself to a cheap Paint By Numbers kit last month.  

I am learning how to create digital planners (my first notebook - a Farmhouse Christmas design - is in my Etsy shop).  The courses for that were all at least half price in recent sales, and went onto PayPal Credit interest-free.  It is both a hobby and future source of passive income for me.  Also stopped me buying digital planners for my own use this year!  

I am saving monthly for buying birthday and Christmas gifts.  I really enjoy having a budget to stick to.

We sold my car (and the big family car), and replaced those with one electric car - a Jaguar I-Pace.  That, and not going anywhere, means our travelling costs have drastically reduced.  We are installing solar panels, which will keep the car charged and reduce our electricity bills.  No trips to Spain since November 2019.

I follow a few people in the Debt-Free Instagram/blogging community.  Matched Betting was mentioned by one as a way she cleared their debt quickly.  I was curious and after investigating, started last week. £110 profit already!  Wish I had found this 3 years ago.  Imagine the stress and interest I could have saved.  Not sure whether I will use this unexpected income to clear debt quicker or start an Emergency Fund (aiming for £5000).  

I promise to update this regularly.  Let me know how you are getting on in your DFD journey.  Do you do Matched Betting, or thinking about it?  Any other crafters?  Anyone use digital planners?

Ali x 

FootyFanDan

Fantastic update! Glad you have managed to work away at the debt. I used to be the same with the shopping/buying stuff, I would see something and have cash for it and buy it without even thinking and then after a few months it would stop being used. Now I take time to consider purchases and in generally I must really really want it for me to buy it and then its a process of using my personal spends to save up for it. I have always up until the last 18 months been about wanting the latest things or many things and when I started my journey I came across a few things about minimalism and it opened my eyes totally. I think i was always a bit ignorant towards this way of living I think I assumed the people who chose this lifestyle had nothing in terms of possessions but I think i began to realise they have less stuff but the stuff they have means more to them. This was something that struck with me and while I still like my tech and stuff I am very considered, I began watching more and more of this minimalism and it changed the way i thought about stuff and then I went on a mad declutter haha! 

Doing this made meant I could focus on my debt and pretty much clear 5k of debt without cutting out too much from my budget or missing out. Ooooo Digital planner now that seems an idea I could get on board with haha, Anyways I waffled way more than intended. I just wanna say good luck for the rest of your journey to your magic day!

craftyali

An early February update.
I mostly kept to #nospendjanuary.  Bought a scrapbooking kit and a diamond painting tray (both early birthday presents to myself!).
I sold some craft stash and used that to pay extra towards Paypal Credit.

Matched Betting went well - just over £300 profit for January.
I am intending to really concentrate on that for the next few months - and start doing some risk-free Casino too.  (Send me a message if you would like my referral link to Profit Accumulator, where I am learning all about it).

I signed up to another online survey app - and looks like I will make around £40 per month from that.  Income goes straight to my savings.  (Again, contact me for a referral link.)

Debt continues to go down as planned (I have a budget for the rest of the year) and my DFD will be July - that doesn't seem so far away now.

Doing #frugalfebruary now - meal planning for the month ahead, really thinking about what I buy and being in full Lockdown does help (only go out occasionally to collect a takeaway or perhaps go to the post office).
More craft stash to sell - and, again, that will go straight to my Paypal Credit account (which will be cleared next month!).

I haven't been too well recently (Fibromyalgia and Psoriasis flaring), so haven't felt like doing much of my digital planner designing.  It isn't going anywhere, so can catch up and get more items in my Etsy shop soon.

Stay safe everyone.

craftyali

I am so rubbish at keeping this updated.  For a good reason this time.  Matched Betting took over, partícularly last week with the Cheltenham Festival.  I have earned over £1200 since 2nd January - and just withdrawn some of my profit to make extra payments towards my PayPal Credit debt (this will be cleared next month).  

I have adjusted my budget for the coming months because of this extra income, and DFD will be in July.  

I then plan to start saving an Emergency Fund of £5k.
I have started putting £30 per month into a S&S ISA (using Quidco so got £85 cashback 😀).  Will increase that amount once my Emergency Fund is complete.
I have been strict with my spending - just one craft kit and a Body Shop order this month (products for hopefully easing my Psoriasis), and I bought a handheld UVB lamp to treat my Psoriasis (which I had wanted for years - Matched Betting enabled this purchase’.  

Been tempted to buy a few things, but resisting until after DFD.  It is getting so close now!
If anyone wants links/advice for starting with Matched Betting/Casino Offers, and also cashback sites (received over £200 from them last month), I have written a blog post.  Will see if I can put a link in my signature, otherwise please send a message.

craftyali

Well, life continues.  After earning more than £1700 from Matched Betting in the first 3 months, I am taking a partial break from it for now.  I am still doing an occasional bet and also the free daily spins/games with some casino sites.  Earned about £100 this month, so definitely worth it just for that.  

I continue to get income from TopCashback.  Please make sure you use it for every possible purchase (I have a referral code, which will give you £5).  

My health hasn’t been great, and I had a big Fibromyalgia flare from my first COVID vaccine.  I have been taking it easy, as I know once the purchase of our first investment property completes I am going to be busy with the builder etc.  Hopefully that will be in May.

I spent some of my profit on 2 bigger purchases - both I have had on my Wish List for a few years.

I am still on target for my DFD.  Not long now!

Budgeting with the home has gone up a level, with solar panels/battery storage and charger for our electric car being installed.  With some changes to our daily routine, we are now mostly using free electricity from the sun! 

There have been a few purchases that I have been tempted by, but I put them on a list for at least 30 days.  Most things I can actually live without.  Try this - it will really help get your debt down.  When you have a larger amount of long term debt like me, paying it off strictly each month is not enough.  You also need to drastically cut back your spending - and change the habits which have contributed to the debt.  

From next month I am giving myself £100 spending money each month.  Craft workshops are starting again, and the cost of those will be covered, so I can fully enjoy meeting up with people again.

Another thing that has helped is unsubscribing from as many emails as possible.  Anything with details of sales/new products etc, I just delete without even looking at it.  Very freeing.  

 

craftyali

I am closing this diary in September 2022, as I am now debt free.  It took longer than originally planned, but I transferred debt to interest-free and a small loan with low interest.  I wasn’t putting pressure on myself to get it paid off quickly.  Now I concentrate on getting my Emergency Fund to £6000 (currently on £1000).  

For everyone still paying off debt, I encourage you to try Matched Betting, simplify your life to reduce spending, use TopCashback, declutter your home and sell what you can, and have a budget to use every pound of income.

Keep going.  It is worth it.

Blackcats

Thank you for the update and well done on reaching your magic day.