Debt free before August 2023

savingholmes

Well done great progress. I am trying to sprint to the finish too

Poppy1984

Thank you @Sarahwithlove yes I can access the money in the help to save if I really needed to but I'm really hoping it won't come to that. 

Thanks good to know someone else would be doing the same in my position, yep all pots will be continued to be topped up. 

Poppy

Poppy1984

Thank you @savingholmes looking at your signature you look like you are definitely sprinting towards that finish like, amazing! Well done let's hope we both get there soon and start to enjoy a debt free life. That sounds so weird!!!! 

Poppy

savingholmes

I am trying to throw almost all all spare cash at debt and just get it gone. Then choices open up. Plan to save for at least a year before making major life changes as think c19 won't go away overnight

enthusiasticsaver

You both are doing brilliantly and that DFD is in sight for you.  Such a relief I expect to then have so much more disposable income for things you want to do than paying for stuff in the past. I think you have a good reason to use your EF if you are paying interest.  As you say you have options should you have an emergency. 

Poppy1984

Thank you @enthusiasticsaver I am literally over the moon, I just need to keep up the momentum. Any advice for life after debt? I've spent so long focusing on paying off my debt I've not really considered what I'm going to do once I'm debt free.

Poppy

enthusiasticsaver

Poppy1984 said:

Thank you @enthusiasticsaver I am literally over the moon, I just need to keep up the momentum. Any advice for life after debt? I've spent so long focusing on paying off my debt I've not really considered what I'm going to do once I'm debt free.

Poppy

It pays really to really think about some goals for saving once you have a higher disposable income with no debt repayments. The philosophy we always used after budgeting for essential spends was to split the variable spends in three. As you already have a house that is something you could consider. One third went to short term spending or saving so increased lifestyle maybe, more money for entertainment, household things, a holiday and so on, one third for medium term so saving for a new car or kitchen or whatever and one third long term, either overpaying the mortgage, increasing pension payments or open a stocks and shares isa. Obviously before any of them I would make sure you had a good emergency fund. 3 to 6 months outgoings is usually a good idea. 

Obviously your goals may may be different but it gives you some ideas. 

Sarahwithlove

They all sound like good goal ideas too me. 

Poppy1984

Thank you @enthusiasticsaver thats really helpful and has helped me to focus. I think my first saving goal will be for 3 months worth of expenses, then once I have that I'm probably going to start looking at buying a house with a garden so longer term
saving goals will be for that and then hopefully once the restrictions start to lift a holiday will be a shorter term
saving goal. 

Poppy

enthusiasticsaver

Poppy1984 said:

Thank you @enthusiasticsaver thats really helpful and has helped me to focus. I think my first saving goal will be for 3 months worth of expenses, then once I have that I'm probably going to start looking at buying a house with a garden so longer term
saving goals will be for that and then hopefully once the restrictions start to lift a holiday will be a shorter term
saving goal. 

Poppy

Yes I always find it helps if I know what I am saving for.  Saving just to accumulate without a goal in mind does nothing for me.  It does not have to be an equal split in two or three so if a house with a garden is your main priority you could put 100% into it for a few years then focus on another goal.  The choices are endless and what worked for me may not work for everyone.  I just like splitting our spare money out and allocating it towards something.  Obviously once the debt is gone you will have more spare cash to allocate in fact it does not make sense to save for these things I think unless the debt is at 0%.