Emergency fund £8,500/£8,500
Mortgage overpayment £260
Debtfree!
£21,228.07 paid off in 22 months
This time last year I was in £9k of debt...
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BaHu67
Posts: 12 Forumite
I am thankfully now completely out of debt and have been since April. However I have lost my mojo and have not been as intense with my saving as I was becoming debt free.
I’ve found myself slipping back into old habits, such as eating out, treating my nephews to expensive days out and excessive spending.
Thankfully this is with my disposable income rather than credit, but wanted some advice? Has anyone else that has got out of debt done this?
I could have potentially saved £3k in this period, but have only managed £1700.
How can I reignite the spark I’ve had within the last year but for a different goal?
I’ve found myself slipping back into old habits, such as eating out, treating my nephews to expensive days out and excessive spending.
Thankfully this is with my disposable income rather than credit, but wanted some advice? Has anyone else that has got out of debt done this?
I could have potentially saved £3k in this period, but have only managed £1700.
How can I reignite the spark I’ve had within the last year but for a different goal?
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Comments
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Are you saving for something specific? A special holiday or a house deposit? It might be easier to save if you had a specific goal in mind.0
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Well a year ago you had a target, a goal.
Now you need another one.
Your earlier posts talked about getting a mortgage.
What about trying to save £x by the time all the defaults drop off your credit report?0 -
The goal is still absolutely a mortgage. I’m not sure what’s happened for me to take my foot off the ball with it.
I guess the small goals of clearing my debt one my one kept me motivated and excited but now I need to refocus my energy.0 -
You sound well balanced to me! Getting out of debt is the most important step so easier to be dedicated to. How much do you need to save to get a mortgage? How long might that take?The goal is still absolutely a mortgage. I’m not sure what’s happened for me to take my foot off the ball with it.
I guess the small goals of clearing my debt one my one kept me motivated and excited but now I need to refocus my energy.0 -
My defaults will be gone in 4 years. With a savings target of £800 per month (minimum) this would be equivalent to a 20% deposit on a small house in my area. This is subject to current house prices which I understand are subject to change.0
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Of course you lost your mojo, you were living under a budget before due to your DMP and now you are free of restrictions and living life.
Set yourself a deadline as to how long you will carry on then set a target about how much you will save for.
In the interim learn to practice saving by doing a bit each payday. Have a look at 1p a day challenge, 52 week challenge and use that as your dummy run, once you start seeing money in the bank your mojo should return. I would recommend a completely different bank to your normal one as it takes a little effort to log in to use it
Mortgage started 2020, aiming to clear it in 2026.0 -
Hi.
Firstly well done for getting out of debt.
Try saving a fixed amount each month, think of it as a "debt" to be paid if it helps. Also allow yourself some "fritter" money.
You have worked hard to clear your debts, as others have said you need a target. Whether it be an amount or a date, set it and stick to it, you know you can do it.Find out who you are and do that on purpose (thanks to Owain Wyn Jones quoting Dolly Parton)0 -
Congratulations on becoming debt free! :beer:
I agree that plans help us focus and that you now need a new plan. If you were working Dave Ramsey's baby steps you would just have finished step 2 and are now on step 3, saving 3-6 months of expenses as an emergency fund. Did you keep an emergency fund during your debt repayment days? Time to boost it. Then baby step 3b is saving for a house deposit.
You sound a little surprised you achieved debt freedom. Maybe needs some time to sink in. Also no harm in a few treats now that you can afford it.
You've done great. Just need to think where to go from here.
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Well done on getting debt free.
I know what you mean about not being so focussed, but don’t be so hard on yourself!
Getting debt free was a huge achievement so you deserve to let your hair down a bit after that.
But now you need to knuckle back down with some discipline, but this time for saving instead of clearing debt.
Have a look on the challenges pages and sign up to a few
And Happy Saving 0 -
When I cleared all my debts, I started using a 'savings snowball', so that I have continuous multiple saving goals. This really helped to 'reignite the spark,' as I always have something to aim for (both large savings target and smaller ones too).I am thankfully now completely out of debt and have been since April. However I have lost my mojo and have not been as intense with my saving as I was becoming debt free.
I’ve found myself slipping back into old habits, such as eating out, treating my nephews to expensive days out and excessive spending.
Thankfully this is with my disposable income rather than credit, but wanted some advice? Has anyone else that has got out of debt done this?
I could have potentially saved £3k in this period, but have only managed £1700.
How can I reignite the spark I’ve had within the last year but for a different goal?
Hope this helps.
Edit: And congratulations on becoming debt-free!!!I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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