What was your 'money-piphany'? What one moment changed your attitude to money?

Coventry1

Reading "Swimming with Piranha Makes You Hungry" when I was about 23. Such a simple message about choosing not to keep up with the Joneses, but it stuck.

Shineyhappy

I bought my ex out of our flat. It hit me like a ton of bricks that I was solely responsible for paying for a property and if I didn’t do that I would loose it and have to move home, which I really didn’t want to do.

I was maxed out on my credit cards and overdraft and had a huge mortgage and after all bills and debt repayments and fuel (excluding food and yearly bills) I had £5 left a month.

Then I started adding up how much I had spent on minimum payments and on one credit card with a £600 limit I had paid about £650 in interest over the years on minimum payments. I didn’t even remember what I had used the money for but I had paid for it twice.

It’s been a long time since I was in that position and my attitude is so different now. I’m now married and mortgage free. If you would have told the old me that I would be in this position 15 years later I would have laughed. I worked very hard to clear the debt on my own and had a lodger I didn’t particularly want, but it was so worth it. 

tastyfish

I was with my now ex-wife when we bought our house. As a mortgage adviser she knew how to handle most of our finances. Unfortunately, we divorced and I ended up buying her share. I faced a double-whammy of a doubled mortgage payment and a household income that had halved. I also owed several thousand on a credit card. My outgoings were more than my incomings.

But I had an A level in maths. I worked out how mortgages worked and how to compare each one on an even basis, in an era long before online tools. A spreadsheet helped me save over £6,000 just on my mortgage over 5 years. I then switched everything or cut down. I learnt to cook. I started driving more carefully. But most important of all I gave myself a year by when I wanted non-mortgage debts cleared. I smashed it within 8 months.

Those were dark, and quite often sad and lonely days. I was even made redundant. I’ve now been living with my fantastic partner for 12 years, we have two amazing young kids and I’m lucky (through hard work and risk) to be earning a 6-figure income a year*. Not bad for someone who went to one of the worst performing state schools in the country. Everyone is good at something.

* I still money save. Even when my kids leave milk in their cereal bowls I will use it up. I hate waste of any kind be it money, food or energy.

And I still have and use that spreadsheet which helps me work out overpayments and interest saved to the penny.

gloriouslyhappy

My moment was when my purse was stolen on payday shortly after I moved out of home into my own flat. I paid everything by cash - that was way back in the 1970s - so in one fell swoop I lost my rent, electricity and telephone payment. I didn't have a good family relationship so didn't even bother telling my parents let alone asking for help. I had to go and see my creditors and work out a payment plan, took me about a year to catch up. I'd take the bus to work but walk home 4 miles, and every penny was counted twice. I gave up the telephone, got free veggies from market stalls at closing time, gave up luxuries like cheese, and refused all invitations to go out, didn't buy any new things not even from charity shops, and made things to give as birthday etc gifts. 

I'm still frugal today although I don't have to be quite so strict with myself. That was a harsh lesson but left me with a horror of being in debt - today I'm debt free and mortgage free and happily retired managing on a small pension.

jak

Mine was after my divorce. I had to go bankrupt and had no access to credit at all. I gave up drinking alcohol- it was a massive problem for me. Then I suddenly realised I could SAVE up for things. My Grandma showed me her money book and I've had one ever since. I budget down to the last penny and tick every payment off. I actually enjoy when my direct debits go out because i can pay for them now! 

powerspowers

12 years ago- depressed, marriage gone kaput, in debt, unemployed and dreaming of travelling the world to escape it all. Somehow, I pulled myself together, got a job, got out of debt, climbed the ladder at work, started saving with the aim of saving enough to jack it all in and go round the world to make me happy. At some point I realised that I was already happy and didn’t need to jack it all in. In fact I didn’t want to, didn’t wNt to start again with nothing in 18 months time. So moved to a house that didn’t make me miserable each evening, learnt to drive, put down roots, had a few big solo trips to scratch the itch without giving up work. 

I am now in a completely different place- married for a 2nd time and bought a house. Still dreaming about travelling but enjoying the here and now, regular  holidays and planning for the future. 

cornwallpauley

When I realised my debts on credit cards, 2 loans and overdraft were nearly double my yearly take home pay. At 54, I would be in debt all my life if I did nothing about it. I scrimped and saved, stopped buying lunches out, moved as much debt to lower or 0% interest. Still along way to go, but now debt is reducing by about £800 per month, debt free in 3 years I hope! 

JES_F1

When Nationwide reduced the limit on my credit card to just over the outstanding balance.  It was a significant drop.  All my other cards were already maxed out.

This forced me to face up to what I really already knew - that I was spending a ridiculous amount of money on 'stuff'.  Even 15 years later, it scares me that I was spending about £50 a month on Costa coffees!

[Deleted User]

23 years ago, newly divorced, mortgaged, deciding to start a business, self employed.

I was in severe debt, living on credit cards, had an expensive, flashy car, (whose repayments were twice as much as my low mortgage) but had to wash my hair in washing up liquid and conditioned it in fabric conditioner because i couldn't afford basic necessities. 

I was living beyond my means, with a business that was good but my overheads were just silly and i couldn't afford to live.

Something had to give - that was my state of mind, then the car went and and older friend lent me money to buy a cheap one.

Once that millstone around my neck was gone i was able to, painfully and slowly, clear every one of my debts.

It was a looong journey - i mean 6 hard years -  but by living very frugally i emerged the other side with a very different outlook on life, my respect of my hard earned money is immense and i don't fritter, i actually enjoy being careful with money even though i am now in a very comfortable, financial, position.

I make purchases over £100 only after having done quite a lot of research and price comparisons, so anything higher than that even more so !
I really enjoy hunting out the best value for money !

I came onto this site many years ago and after a while registered on this forum, reading the experiences of others has educated me probably more than anything else and i learn more all the time, it is a valuable resource once you've had your 'lightbulb moment'.
Until you have you're not ready to act and get  angry and hostile when another person points out failings or gives constructive criticism on your situation ..... so many times i read a members post regarding debt and can clearly see they're almost at that point .... just need another few months and there it will be .... life crashing down around you.

It's scarey, it's ****** long, hard work but it teaches you the best lesson you'll ever learn.
If it hasn't, you've been bailed out and not had to do the hard work yourself.
Or, you're a 'serial debtor' and will never learn and live in constant debt, denial, and angst.

Browntoa

Mine was divorce and taking on the mortgage on my own while also paying maintenance. Virtually no spare money and struggled to survive financially.

I discovered yellow sticker food before it became popular buying items for 10p and sticking them in the freezer for another day. 

Discovering that for 90% of the time I could manage without running my heating , a portable calor gas heater could be moved to any room I needed to actually heat , old fashioned hot water bottle in bed when it was really cold.

Discovering Martin's site very soon after it was founded taught me to move my mortgage to an offset type mortgage so my salary paid off interest every month and using interest free balance transfers to move chunks of my mortgage and pay no interest on it for 36 months. I cleared my mortgage in 10 years 

And never used credit unless it was interest free.

To this day my mindset remains as it was then although luckily I am in a much better place