So, you’re out of debt. What next?

I’ve been debt free now for 5 glorious months!

Surprisingly, I feel like that was probably the easy part. It took me about 18 months from when I decided get my shit together until I actually made the last credit card payment.

I forgot to to mention it in the last post but I used Dave Ramsey’s “Debt Snowball” https://www.daveramsey.com/blog/get-out-of-debt-with-the-debt-snowball-plan. It’s a really great method! Reaching each milestone was such amazing motivation.

Staying out of debt hasn’t been hard because not only do I have more money to play with than before, I also still remember the stress that came with it and I could never let myself go there again.

Saving, on the overhand, is proving a lot more challenging than I’d anticipated!

I’ve always been good at saving for travelling and stuff I want but I have a much harder time saving for things that are less tangible like emergencies or ‘rainy day’ savings or big things like a car, house or retirement.
My current savings goals are:

  1. Trip to Vancouver in July
  2. Full emergency fund of three months expenses
  3. A car
  4. Start saving for a house

Goal 1 is going really well for two reasons.

  • I fucking love travelling!
  • It has pretty clear ‘deadline’. If I don’t have the money by July, the trip can’t happen. And it’s definitely happening!

Goal 2 and 3, not so much. I’ve dipped into those pots a few times for non-essentials and am having a much harder time staying motivated. They feel a bit too big and too far away and also less exciting that a holiday or new clothes…..

Goal 4 honestly seems completely out of reach right now. And virtually impossible to make any real commitment towards. I am doing some research at the moment and trying to figure out my best option so this will definitely be a future post.

I’m a spender! I am an absolute sucker for new stuff. And while I’ve become a lot more conscious of the products I buy and where they come from, I still love spending. Instead of random fast fashion, I’m now splurging on house plants and rugs! Hello mid 30s!
I know my weak spots

  • Clothes
  • Food
  • House stuff

So, how do we stay focussed?

1.Use a ‘Zero-Based budget to ensure you’re saving as much as you can

2. Make is easy for yourself.
To get me into better habits, I’ve decided to automate my savings. They will now come straight out of my account a day or two after I get paid and go into an account I can’t easily access. Out of sight, out of mind!

3. Look at your balance
I can’t remember which podcast it was on it was but something the host said really resonated with me. Get used to and excited to see a big number in your bank account. I look at my bank account every morning and it does feel really good to see big numbers! I lived paycheck to paycheck my entire life and now I always have money in my account before payday.

4. Create some “rules” around your spending.
A good rule of thumb before purchases is to ask yourself a few questions. I love these from Money Saving Expert:

Skint? Ask:

  • Do I need it?
  • Can I afford it?

Not skint? Ask:

  • Will I use it?
  • Is it worth it?

5. If you really want it, earn extra money
Another tactic I use to stay on track with savings when I see something I really want to buy is to find a way to make some extra money to pay for it. Some of the ways to do this are similar to how to make extra money to throw at debts.

  • Have a clear out and see if you have anything worth selling
  • Use OhMyDosh to earn some extra cash
  • Get cashback – I’ve just signed up to Quidco to earn cashback on some of my purchases
  • See if you qualify for a “bank bribe” to switch your current account

Whether or not you can be bothered with the extra effort to find the money for something will tell you whether or not you really want it! It also helps to change your mindset when you have to work harder to get that shiny thing you saw and when you get it it feels so much more satisfying.

Lastly, if you do impulse buy you can return it! Don’t take the tags off right away. See if it really does “spark joy” and if not, take it back.

Changing your spending behaviours takes time and you will slip up. Don’t be too hard on yourself. Our relationship with money is deeply personal. It’s cultural. It’s gendered. It’s traditon.

We like to think we are rational beings, but we are more irrational than we realise. Advertisers know this. Marketing relies in behavioural science. They sell you a lifestyle, not a product. They tap into your emotions and insecurities and they are very, very good at it.

Keep an eye on those numbers, watch the debt decrease and the savings increase and your stress start to melt away.

Read: The Minimalists, Dave Ramsey
Listen: Money Girl’s Quick and Dirty Tips, So Money with Farnoosh Torabi
Follow: @FiscalFemme @TheMinmalists

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