Staying away from debt!!

Thanks to all on this board, MSE and SC I finally made it - completed DMP and no more debt!! Relief and gratitude massive. Almost at same time I moved to higher paid post at work - fab!
However I feel that I'm in danger of old thinking coming back, now that there actually IS some spare cash I am making fairly friviolous purchases thinking 'I deserve that' etc. Family events - 'I'll help - no problem'' - Nothing too great but all adding up, still paying bills etc and no debts, but not really budgeting. I still don't really have a fund for household spends etc or an odd bunch of flowers etc. I need to get a grip.
It sounds silly but now I know how to pay debts BUT I don't know how to SPEND safely. Either I deny myself everything or feel guilt but do it anyway! Anyone else felt once they took their eye off the ball it ran amok?
Finally Debt Free (£8k to zero) yay! :j :j

Saving for Xmas 2020 £1 a day challenge #54 £18/366
£2 Savers Club 2020 #49 (£6)
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Comments

  • Hi and well done on becoming debt-free!!!

    I use software to help keep me on the right path. But I suppose one of the most useful things was the setting up of a savings snowball. It works exactly the same as a debt snowball. You have your various savings targets and focus on the one with the highest priority first before switching to the next target. :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Thanks Willing2learn! I like that, as I had loved the Snowball 'target based' debt approach, I'll look into this again cheers ! : )
    Finally Debt Free (£8k to zero) yay! :j :j

    Saving for Xmas 2020 £1 a day challenge #54 £18/366
    £2 Savers Club 2020 #49 (£6)
  • Hiya

    Well done on paying off your debt! Amazing!

    As Willing2Learn says above get into the saving habit. You may want to look at switching to a new bank account that has an incentive to join and hopefully offers something like a 5% linked regular saver. I know FirstDirect are offering a £50 incentive and a regular saver for instance. I put in the maximum amount per month (£300) and has been very motivating to know I will have £3600 at the end of the year plus interest. This will be my emergency account. I know that if I take any of the money out early then I will lose the interest so that stops me dipping into it!

    Also if you feel it will help you may want to fill out a statement of affairs to help you budget and if you want advice from the others here on ways to make savings you can post here:

    http://www.stoozing.com/calculator/soa.php - format for MSE!

    Good luck!
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • ryanm8655
    ryanm8655 Posts: 1,152
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    If you feel you’re in danger of overspending you could avoid credit cards and get rid of any overdraft facility? It’s what I’d do in that position, unfortunately I am far from that position and need to get debt free first...

    Then I’d set aside some money into savings and worst case you spend what you earn...

    I’ve also got a starling account which categorises spend etc.

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • macman
    macman Posts: 52,992
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    Set up an SO that sends £X straight into a savings account the day after your salary goes in to your current account. That way you can't spend the money unwisely.
    No free lunch, and no free laptop ;)
  • I have a spreadsheet going and budget for everything, including what I'm saving.

    It must be a relief to be out of debt and understandable why you are having a fun time, probably heavily restricted whilst you were paying debts off.
    Mortgage started 2020, aiming to clear it in 2026.
  • It is a slippery slope once you start down the frivolous, thoughtless spending route so I would get in the habit of putting money aside as savings at the beginning of the month. Don't use credit cards until you feel you can be trusted not to overspend. Don't make too many changes all at once so maybe start setting aside the money you were paying off your debt into savings instead

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    Link to soa: https://www.lemonfool.co.uk/financecalculators/soa.php

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  • theoretica
    theoretica Posts: 12,246
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    Sounds like you need to budget for all your money so you don't have any 'spare'. Look at the money that had been going to debts and decide where it will go now.



    I suggest you think about dividing the money three ways.
    1) Long term savings - for when the boiler dies or you need to move. Do you have a car? When might it need replacing?
    2) Frittering - I find it really useful to have a little money earmarked for spending without guilt on cakes, socialising, flowers... Having a budget stops it getting out of hand.
    3) Bigger discretionary spending - new computers, or furniture. Holidays. Helping your family might come in here.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Have a look at 50 /30 /20 approach to budgeting.
  • Think carefully about why you feel the need to buy the frivolous things. Spending is the easiest thing in the world to do - and the high street/online retailers are phenomenally good at making us think that we need to spend, spend, spend.



    Change your mindset, so that you see through their games. Think to yourself 'They're not going to fool me, I'm on to them, I know their tricky ways, the scamps', or 'How dare they talk me into spending my hard-earned cash when I already have plans for it.'



    You've worked hard for your money - don't just give it away.



    And keep your wallet in your pocket.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
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