Hello Dear Reader,
We became debt free in 2011 and have stayed that way ever since. We’ve not used a credit card since 2009 and we’ve just learned to live beneath our means. As Mr Micawber would say “Annual income twenty pounds, annual expenditure £19 and 9 shillings, result happiness. Annual income twenty pounds, annual expenditure £20, result misery”.
So, how is our life a bit different from other people. We certainly spend and have what we need but it’s always done with some planning and budgeting. We know what we will spend on Birthdays, Christmas, holidays and anything else that we buy. We save up for everything we need.
Neither DB or I have expensive work do’s. His work doesn’t have one at all and mine, which I’m going to, is £4. I think we can work those two costs into the budget. Previously, we’ve both turned down the £25 a head Christmas, end of term celebrations as just beyond our budgets. It’s often difficult to say no, or do something different around our peers.
It’s somewhat easy for us now, we don’t really do a conventional consumerist Christmas and haven’t done so for years. It’s a lovely time off, a few homemade treats (isn’t everyone looking forward to a mince pie?) and time for each other and our nearest and dearest.
What though if you are new to this? What was it like when it was new to us? Well, there’s no easy way to say this but it was really hard. We said no to everything when we were in debt and paying off debts. Now, we say no to anything that we personally feel is a waste of our own money. People used to challenge us, saying we could afford something and we used to kindly explain that we were paying off debts, or saving up for something important and were being careful with what we did with our incomes.
It’s certainly easier now, these are hard times for everyone and we’re no longer the thrifty minority but part of the growing majority of people for whom every pound has to do the work of a fiver! Maybe us frugals led the way? Who knows?
Life now is very different. The fire is lit, we can afford plenty of firewood. The freezer and pantry is stocked. The bank accounts are managed to work for us and we regularly pay in savings for: our holiday in France next year, long term saving fund for a new roof and medium term savings for a new boiler. It’s all in the plan. What’s the same? We don’t eat out more than on the most rarest of occasions (we had fish and chips in Looe in the summer and again in the autumn when we visited Whitby) I still shop the sales, charity shops and look out for household items in the freeads and ebay. If we continue to be careful then we will continue to be solvent.
We used to be skint and now we’re comfortable.
Our past did not define us.
Life without debt or credit is now our normal.