Starting to budget after years of wishful thinking

155 Posts


Hi so I came here for advice. Have about £29k debt over two loans and one currently interest free credit card.
I kniw if I don't clear thia debt ASAP then I will fall back into bad habits and it will spiral out if control.
I am currently considering selling everything I have of value which could clear at least half. This includes a couple of cars. Has anyone ever done something this drastic? I am looking for inspiration to give me a kick up the backside to get this done.
I kniw if I don't clear thia debt ASAP then I will fall back into bad habits and it will spiral out if control.
I am currently considering selling everything I have of value which could clear at least half. This includes a couple of cars. Has anyone ever done something this drastic? I am looking for inspiration to give me a kick up the backside to get this done.
Debt Free April 2022
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use this tool and format for mse
https://www.lemonfool.co.uk/financecalculators/soa.php
Have a read of some of the diaries too
good luck
If it were me, this is what I would do. A couple of cars is a luxury, choose one and sell the rest. Clear what you can. Sell anything that you won't make a ridiculous loss on and/or have to replace anyway.
Go through your expenses, be brutal, cut what you don't really need. If you earn a decent wage but are spending it all and it isn't going on debts, then my best guess is it is going on eating out (I suspect this because this was me), total this and set a budget for it. If possible, cut it out entirely. For me, it wasn't but we were once at 2 to 3 times a week and we brought it down to twice a month (I really hate to cook).
If you are really desperate to clear it, take on extra work. Be it overtime or a second job. It was a second job that really helped me (no overtime in my job), only done on a temporary basis. Although, I recognise that is near impossible at the moment, although Christmas is usually a good time for such things.
Finally, make a clear plan. Planning out what I was going to pay and when helped me. I have found myself back managing debt now through no fault of my own, and it is only my plan that is keeping me sane. 26k owed 3 months ago, 24k now but by March it will be less than 18k, by August I'm aiming for 12k or less. Should be debt-free again by May 2022. Could be sooner if I was willing to be brutal. I'm not at the moment.
So if you sold everything and paid 1/2 your debt down - how might you feel? Would you feel free of 1/2 the debt or utterly bereft of the possessions that so many hanker after whilst still owing a lot of money? Why did you buy these things in the first place? Do you need them or just want them - or worse... Bought them hoping to impress others?
It could be a bit of a lottery with your self worth either way you look at it. You might find it an incredibly liberating experience and start to really put your life into perspective with what's important - or you might find you start replacing many items and racking up the debt again, finding you've achieved very little.
It's an incredibly interesting approach. Are you punishing yourself for buying things that you couldn't afford or do you genuinely want to rid yourself of pressure to buy/own "stuff"?
I would try to look forward brutally honestly at yourself with both options - keep trudging away at the debt ... or free yourself of consumerism and sell it all and have a full rethink of your values. How will your future self feel with each choice. Maybe then you can decide for yourself the right path and not need our permission, advice or approval either way?
If you were in the middle of nowhere with nothing, what would you miss? How would you feel? You could be somewhere hot and miss your freezer or cold and miss your favourite jacket. You might decide you'd only miss the people in your life.
Absolutely fascinating approach. Definitely needs some careful thought before making a decision so it doesn't backfire on you.
MFW date 2nd Jan 2024
Literally counting the days! 🥳
MFW date 2nd Jan 2024
Literally counting the days! 🥳
My workshop and my tools i built are the only things i genuinely love owning as i get to fix things, help people and be creative. These things i will miss. Gadgets and the like i will not miss.
Start and then reassess as you go - not constantly - life is too short to keep worrying every waking moment about what to do. Make a decision and put it into action and allow your mind to move on to more important things in the here and now.
Try and enjoy the experience - you've learnt something so it's worthwhile.
MFW date 2nd Jan 2024
Literally counting the days! 🥳
If you dont love the guitar but someone else will then list it. xx
you wont get what you paid but someone else may get something they couldnt otherwise afford! Good luck and stick with it.
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