How do you maintain being debt free? What are you strategies?

IAMIAM

No Credit Cards?
Put some money away straight away when paid?
Not shop online, only in store?
Just curious as to what strategies people have used once becoming debt free?

Willing2Learn

I am supported by YNAB.  The times when I cannot be bothered to use YNAB, I will still maintain a zero-based monthly budget.  Doing things using this method means I can now successfully manage several credit cards...

I have also found it really helpful to keep setting goals.  So, I always have maybe 8-10 savings targets to aim for.  I set it up as a 'savings snowball' - basically a debt snowball but with savings instead.

Hope you find this useful...

weeg

I'm more of a lurker than a poster here, but ...
I'm not quite debt free yet. I have one last debt, which is a £50/month payment, as opposed to the £500 or so I used to have to pay out a month. I transfer that £450 to an instant access savings account on payday every month (my car ain't going to last forever, and I just had to replace my boiler. That's fine - that's what savings are for). And I remember how utterly crap it was when I couldn't afford to buy nice cheese, or have a pint with friends, and when I was scared to open the post. I'm never willingly going back there. I want a cushion against losing my job (which is a sadly real possibility given (gestures, all this). But the debt taught me to cut my cloth, and to hustle.
I guess what I'm saying is problem debt taught me how much I really need to live a comfortable life and that keeps me out of more debt. (for me, that looks like good bread, the odd bottle of wine that costs more than £5, an 11 year old fiat panda. It doesn't look like designer clothes and luxury cruises.)

Willing2Learn

I can't bear pandas...

enthusiasticsaver

Apart from the odd interest free credit deal when we were younger and an occasional car loan and our mortgage we have always stayed debt free even when on a much lower income than when working full time and that has helped now we are retired so my pearls of wisdom such as they are are as follows. 
Do a monthly budget after we have been paid and set aside money for emergency/rainy day savings and for committed savings like holidays, car, house, xmas etc at the beginning of the month. We do not overspend and if the budget is used up early in the month we either take it from another budget or do not spend it and wait until the next payday. Obviously emergency spends come out of our rainy day fund.  

Don't anticipate salary and any large expense like a holiday or new car/home improvements is budgeted for.  

All credit cards paid off in full every month. We do not tend to  do impulse purchases.  They are researched and budgeted for out of savings not credit cards. 


The way to stay out of debt is to remain disciplined with money. That alleviates stress and you learn to do without the latest I must have gadget or get sucked in by advertisers trying to convince you that this particular model of car or ipad or PC is essential.  It rarely is.  We are selective about what we buy. 
We do not change cars or move house constantly and we tend to try not to do jobs on the cheap as they just need doing again in a few years time.  Budget and save are the key words. 

EimearF

I have kept coming on here to keep myself in the mindset.
I allowed myself a bit more in my entertainment every month so I wouldnt use the credit card.
Its easier to not spend when its your money and not the banks! 

Time2Go_25

Put some money away for a rainy day and don't spend more than you earn.

Galloglass

pdel61 said:

Put some money away for a rainy day and don't spend more than you earn.

Or as Dickens puts it in Pickwick Papers
"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Mr M did not have YNAB and I'll second W2L on the idea it is best to use something that leads you to happiness and not misery.

sourcrates

Living the first 30 odd years of my life way beyond my means, mostly financed by credit, led me into many bad habits, but at the time banks were throwing money at you, sending pre-approved credit cards in the post, £5000 credit limit when you were on £2.50 an hour, ridiculas, very rarely was a debt repaid, they always got consolodated, which led to more trouble.

Then once i turned 42, the credit simply ran out, had no money for food, bills, anything, lost my house, had to declare insolvency, completed an IVA with £157.000 worth of debt.

Still didnt learn my lesson, after my IVA had ended, credit lines were again available, and i went mad, another 19k of debt, then my marraige ended, and i had to take a long hard look at myself, i again found myself unable to pay my debts, so for the second time in my life, i was insolvent, a DRO took care of it.

Since then i have lived within my means, not taken credit, and won`t ever do again, i live an off the grid existance money wise, if i can`t afford it, i save up for it, no more playing the credit game for me.

When i see posts from people with a dozen credit cards, and flashy cars, big house, and massive salaries, but who pay out more than their monthly salary in repayments, it scares me, but i`m also reassured as i know its not me.

zippygeorgeandben

This thread is full so much experience and wisdom, from those who made wrong choices who learnt from these choices and are now in a position to offer advice.
I do not know how to feel about my money situation now.  Short story £18k approx of debt, now £18k approx of savings. I am in danger of going the wrong way with it now (those of you who have read my thread know the journey since 2016) and unwilling to make purchases of over £100 even though I have the money.  This is why I haven't written my monthly update yet as I cannot put into words how I feel.  I have trained my mindset so much now that even though I have earned this money, saved it away and been pretty frugal, surely I should be spending some of these savings on items? As someone has said, that's what the money is there for.  I will give you an example, I have had my MacBook since 2015.  It automatically shuts down at 35% now because the battery desperately needs replacing (near its maximum battery cycle count) so it's a genuine reason to get one but spending £1000?  I rally against this.  I also do not like my mobile phone.  Contract runs out in November, and I want to go back to apple.  But, I'm reluctant to spend the £100 early upgrade fee, even though I have plenty of money to do it.
As for anything else, well, I just spend hours researching but then don't bother purchasing.

katsu

Pay credit cards in full each month so the balance doesn't build back up.
Save in regular monthly savers and an easy saver type account for leftover money each month. 
No more borrowing, so no car loans (save and pay cash only) or other things on finance.  
Shop in cheap shops like Savers or Home Bargains instead of Boots, Aldi or Lidl instead of Sainsburys etc (until the Coronavirus stay home situation!).  
Enjoy the security of savings and not want to be in debt and have that stress.  That motivates me to not spend too much too often.  
Stay out of the pub - drinking is expensive!
Don't upgrade until things are worn out or broken (mostly!).  
Use survey sites, competitions etc for fun and to create some treats funds.