#31 - Get out of debt
My debt
I was about £5,000 in debt, in denial and about to spend more money, only occasionally admitting it to myself.
My relationship with money
I don’t give a shit about money, if I want to do something I will go and do it, if I want a beer, I’ll buy a round, if I can go abroad on a holiday, I will do it. I think I’ve always done this because from an early age I’ve always worked. You work, you make money, to spend money, so my theory has always been I will make it back because I work hard.
Fixing the problem
It all came from a extremely random phone call, middle of the week, from my bank asking if I’d like an appointment with a financial adviser. I had been meaning to ‘sort my money out’ so I said yes. An uncomfortable conversation for me which I’d been in denial about for ages. She was great, we dived into where I thought my debt/money was at and where it actually was, this made me face reality and we put together a plan to solve it.
Some examples: Credit card: Thought £1,300 Actual £2,300. Overdraft: Thought £500 Actual £1,100. Car needing fixing: Thought £500 Actual: £1,100. I then wanted to buy flights to Australia also.
Getting on top of my money was simple when we brought it all together, using one bank, key accounts so I have visibility of where I am with my money so I stopped lying to myself. This meant taking a £7,500 loan and paying it back £323 a month for 24 months.
What I have learnt and would encourage anyone to do with their money
1. Stop buying DUMB SHIT! Do you really need it? Who are you trying to impress?
2. Stop lying to yourself. Just be honest about how much you have.
3. Say No if you don’t have the money.
4. Save. Build specific accounts to save into specific accounts with deadlines to then spend.
5. Income vs Outgoings. Make sure Income always wins.
Low points
– Being in South America knowing I had a month left with £0 to my name, I borrowed £1,000 from one best friend, £1,000 from another best friend and about £1,000+ from my parents.
– Mates Vegas stag doo – maxed out overdraft and credit card and borrowed £1,000 from a great friend at work who appreciates, when in Vegas baby.
– Not dealing with the fact I am in the minus sometimes.
High Points
– Paying back my parents and friends after having the best 18months away and travelling trip, I kept my head down and saved shit loads to pay it all back.
– Now. It has only taken a pandemic for me to really get a lot in the bank but it has taught me some valuable lessons, mainly, get proactive with your money.
– Speaking with my bank about an action plan.
– I’ve stopped buying shit I don’t need. Only the occasional treat.
– A call booked in next week to pay off my Loan (literally feel amazing).
The future
It took a pandemic for me to get ontop of my money, absolutely ridiculous and probably highlighted my relationship with money. So I am going to be much more honest, say no more, mainly to social things that cost money ha because I have a fear of missing out and save.
Stay out of debt.