Good Friday Update: £39,800 cleared - what I learned

hev3049

longtimelurker2020 Congratulations on clearing your debts so far! You have inspired me so, my bank (Nationwide) has an option called 'impulse saver' which shows spare change from recent transactions - prompting you to save it, just like tilly tidy - Brilliant idea - you have inspired me to put more into my saving to pay off my debts - than you so much! 

fatbelly

The first post I have read in  the New Year. Well done.

The only comment i would make is that you say you saved 'only £55 a month' by not upgrading your phone. There's no 'only' needed there. All amounts contribute, no matter how small.

I find I am talking to a lot of people at CAB about whether they need a TV licence. Saving £13 per month makes a huge difference to a lot of them.

longtimelurker2020

fatbelly said:

The first post I have read in  the New Year. Well done.

The only comment i would make is that you say you saved 'only £55 a month' by not upgrading your phone. There's no 'only' needed there. All amounts contribute, no matter how small.

I find I am talking to a lot of people at CAB about whether they need a TV licence. Saving £13 per month makes a huge difference to a lot of them.

You're absolutely right @fatbelly, that's why I put it in inverted commas - 'only £55' and why that para leads to the next para where I said I stopped disdaining small amounts.

Prior to my lightbulb moment I only paid attention to savings in the hundreds of pounds, so the old me would've viewed the £55 as 'only' i.e. "how could £55 possibly help me clear my debt? I need thousands of pounds to clear it!"    

Some people are in debt because of unfortunate life events, while I think others are in debt because of the wrong mindset.

My mindset definitely needed fixing and I think it's clear from the Tilly Tidy outcome that I now fully understand that every penny counts. The only reason I'd never set up a stocks and shares ISA even though I wanted one was because I felt I needed a starting sum of £5,000 to make it worthwhile. That ridiculous mindset that if it's not a large sum it's not worth the effort has impacted on my financial security. 

TimSynths

A great read! Can I recommend Ken Okoroafor @ the humble penny for ongoing ideas/advice-

The Humble Penny | Create Financial Joy

longtimelurker2020

TimSynths said:

A great read! Can I recommend Ken Okoroafor @ the humble penny for ongoing ideas/advice-

The Humble Penny | Create Financial Joy

Thanks for the link @TimSynths, I'll check it out. 
@hev3049 there's also an app (or maybe there's more than one) that enables you to invest your spare change. I think it all goes into a mutual fund or something. Can't remember what it's called saw the ads on the train. 

Keedie

Thank you so much @longtimelurker2020 for this post! You really don’t know how much it’s helped and it’s good to see what has and hadn’t worked for you. I’ll go stir crazy trying to be so rigid as I lack that mindset, so I’ll have to build in some rewards, and I’m building a small emergency fund as I clear debts. As I know that some of my debt has occurred from having nothing set aside for a rainy day. 

I work part time so not a lot income, but a lot of motivation to clear the last £11,300. And the idea of robbing my future self is true, and that will keep me focussed. 🤗

longtimelurker2020

Best of luck with the last £11.3k @Keedie. I can't claim credit for the 'robbing one's future self' concept - it's all stuff I gleaned from months and months of reading MSE posts. 

You mentioned the cause of your debt - having nothing set aside for a rainy day - and I think you've hit on another important part of the debt busting process for some people, certainly for me: becoming self aware enough to identify the causes of the debt, (whether situational or psychological) and hopefully alert enough to recognise the red flags if/when they pop up again. And to your point about building in rewards for yourself, also being self aware enough to know what works for you and is likely to be sustainable. 

Keedie

Yes @longtimelurker2020, it is a hard slog but definitely worth it in the end. I can’t wait to feel free when the debt is gone. I’ve been in debt since uni and it spiralled out of control having a YOLO lifestyle, completely furnishing my new flat within a month and just general spending sprees. You live and learn. 

As for the words, even if they’re not your own, it just sums up how great MSE is, as the trade and acquisition of knowledge and advice is invaluable. Good luck with your last hurdle, and relish the freedom of being debt free 🤗. 

[Deleted User]

You are an inspiration to others who are also struggling.

Fighting debt is such a hard job and the reason many fall off the wagon and relapse.

Huge congratulations, be very proud of yourself 👍🙂

welshspendthrift

As someone who had the 'lightbulb' moment last July, it has taken me a few months to face up to it as like you I haven't really got any material belongings to show for it, lots of nights out, eating out and overspending n food , birthdays etc etc. I still am shocked and embarrassed by the total amount of debt I amassed up to last year. I find it hard to admit to myself let alone anyone else. Had I not stopped it would have reached 50,000 - shocking and no one to blame but myself. Your post is inspirational , thank you. I have set up save the change on both accounts of mine and using to save to add to my pot savings for next Christmas..  on a positive note have paid £6500 off my debts since last July
I will be re reading your post , good luck with clearing the rest this year.