Living a Completely Debt Free Life

[Terminator X]

Whilst I'm sure someone will correct me I've never understood all this "let's rent" business? It has to be better to get a house as early as you can to benifit from its sale price in 40/50yrs time vs renting for that time with nothing at the end?

TX.

[hapless]

anonymous said:

[redacted]

anonymous said:

[redacted]

It doesn't seem so at the time though, does it? And I suspect the same is true for anything you used to do but now don't - it's hard to quantify the value you got by spending money on experiencing things.

Indeed - but now I am mortgage free, I can spend my mortgage payments on holidays. Last year was a three week driving tour of the US.

I will be mortgage-free by the time I am the age you were, but doubtless I will still be spending hand over fist simply on keeping my children alive with food and clothed with clothes. Although if there isn't a little bit left over for me at the end of each month I will be a bit cross.

Back on topic though, I have found that my vow to stay free from debt (besides the mortgage) went right out the window when family came along - so my suggestion to the OP would be to enjoy some of your youth while you've got it, and just try to stay away from debt while you can.

There's a whole spectrum of difference between saving every penny and spending fortunes more than you actually have.

[hapless]

V8Triumph said:

hapless said:

anonymous said:

[redacted]

It doesn't seem so at the time though, does it? And I suspect the same is true for anything you used to do but now don't - it's hard to quantify the value you got by spending money on experiencing things.

To me 'experiencing things' is not anything to do with going out drinking. I have no particular desire to do that.

OK, but the point about experiencing things is that it is hard to quantify their monetary value - whatever the thing is that you choose to do - when afterwards all you have is a vague memory and a sore hip.

[V8Triumph]

Terminator X said:

Whilst I'm sure someone will correct me I've never understood all this "let's rent" business? It has to be better to get a house as early as you can to benifit from its sale price in 40/50yrs time vs renting for that time with nothing at the end?

TX.

When I started renting there was not an option to get a mortgage (no deposit, very recently self employed) I did not want to live with parents. I don't understand the 'let's rent' forever thing at all but for most people it is their only option for a while.

[boobles]

Do you pay rent at the moment? If so, you are not debt free.

[V8Triumph]

boobles said:

Do you pay rent at the moment? If so, you are not debt free.

Interesting point. Debt to me = paying interest on something for the pleasure of ownership. Rent = hiring something for the pleasure of usage?

[BoRED S2upid]

Sounds like a sensible way to do it if you ask me. Far too many people rely on debt to get by.

[nick s]

I have a friend who is 25 and has saved since he was 18 and now has a 60k house deposit. I on the other hand, haven't saved, but at 26 have had the best 6 years of my life with silly cars, multiple holiday's, travelling, eating in nice restaurants all the time, staying in nice hotels, going to loads of gigs, spontaneous nights out/weekends away with the lads in London, Cardiff, Manchester etc etc, and literally just having an absolute blast and spending everything i've earned on fun things. And you know what... I wouldn't change it for the world! Your 20's are all about building memories and having fun whilst you can IMO.

This other guy who has saved the 60k, will tell you he hasnt missed out on anything as it's all relative. And i'm sure you think you haven't missed out either. When people they they dont think they've missed'out, they nearly always have!! So my advice is go and have fun aswell!

[Rugbyman]

hapless said:

so my suggestion to the OP would be to enjoy some of your youth while you've got it, and just try to stay away from debt while you can.

There's a whole spectrum of difference between saving every penny and spending fortunes more than you actually have.

I look at credit/debt a little like alcohol - I use it when I need/want to , for enjoyment or improvement and I always pay it back on time ...... its when it takes over and prevents you from doing the above that causes untold problems.

Control it / use it and credit/debt is your friend ....... just like alcohol

[hapless]

boobles said:

Do you pay rent at the moment? If so, you are not debt free.

Only if it's overdue, surely?

[marcosgt]

anonymous said:

[redacted]

Really? I can't see any appeal in a tight fisted hobo for anyone with any character.

Surely the SHALLOW 'chicks' would be the ones who would see the money the person has in the house and not the person, n'est pas?

M

[hapless]

anonymous said:

[redacted]

What about the ones that don't do those things and still can't afford to buy a house? Because they don't have the c£25K lump sum deposit they'll need.

And with respect, at 40 you were not as fit as you were at 20. Unless you'd been frozen like Walt Disney.

[V8Triumph]

Thank you for all the responses so far.

I think I may have given the wrong impression by saying I live 'frugally'. What I meant is I shop in places like Aldi rather than Tesco, Sainsburys etc. Eat out about once a fortnight. Holidays are going to car events in my classic cars. I don't have a modern car that loses money and costs a lot to insure, instead I have between four and five classics (newest 36 years old) and I like swapping my cars a lot. I don't wear 'designer' clothes or shoes.

Perhaps many of you think that is 'living like a hobo' I don't know but personally I don't have a problem with my current lifestyle.

As mentioned before I'm actually TERRIBLE with money, well not 'money' as such but 'credit', if I've got credit I simply cannot help myself but to spend it - every last penny. I don't want it.

[V8Triumph]

hapless said:

anonymous said:

[redacted]

What about the ones that don't do those things and still can't afford to buy a house? Because they don't have the c£25K lump sum deposit they'll need.

And with respect, at 40 you were not as fit as you were at 20. Unless you'd been frozen like Walt Disney.

Hapless - I see your point too There is stuff that I 'miss out on' - just like everyone else. Even people who spend every penny of their income miss out on stuff.

As for people having C.£25K deposit - personally I don't see how anyone with 2 average incomes coming in cannot afford to save up £25K unless they have serious debt problems already?

[66comanche]

So OP is saying she can save £100k over 6 years, to the people advocating building your own house over time, just how does this work? First she will have to buy the plot of land, which is likely to cost surely at least tens of thousands of pounds for something with planning permission, maybe a couple of years savings. Then she will have £16-17k a year to put towards the building of the house, probably enough to employ a labourer but not many materials for him to work with! The idea of a static caravan on site is a good one as the extra rent saved can be ploughed into the house, but I think this is something to be done years down the line, building a house piecemeal as funds come in sounds a nightmare.

Maybe a way onto the ladder sooner would be one of the shared ownership properties? Even if you start with one which is only 25% ownership, with the amount you profess to be able to save you can pay that off pretty quickly, then move to 50%, paying reduced rent from the off and reducing it further over time. Being self-employed though and sounds like you are fairly new to it? Just a word of caution to being overly optimistic too soon.

If you can amass a good pile of cash then buy at auction, get something which needs some work doing and you'll get plenty for your money.

ETA - as an aside, if I consolidated everything, I would be completely debt free but I choose not to do so for various reasons which are too convoluted to go into.

Edited by 66comanche on Thursday 12th July 13:56

[hornet]

nick s said:

I have a friend who is 25 and has saved since he was 18 and now has a 60k house deposit. I on the other hand, haven't saved, but at 26 have had the best 6 years of my life with silly cars, multiple holiday's, travelling, eating in nice restaurants all the time, staying in nice hotels, going to loads of gigs, spontaneous nights out/weekends away with the lads in London, Cardiff, Manchester etc etc, and literally just having an absolute blast and spending everything i've earned on fun things. And you know what... I wouldn't change it for the world! Your 20's are all about building memories and having fun whilst you can IMO.

This other guy who has saved the 60k, will tell you he hasnt missed out on anything as it's all relative. And i'm sure you think you haven't missed out either. When people they they dont think they've missed'out, they nearly always have!! So my advice is go and have fun aswell!

I never got on with my 20s. My interests didn't gel with those of my friends, who spent most of the time pretending they were still 18. Conversely, my 30s have been great fun in all sorts of weird and wonderful ways. I think once you get to a certain age, there's less pressure on you to have the sort of "fun" your age group is expected to have. You're grown up enough to know what you like and not really care if it isn't what other people think you should like. That's my experience anyway. My age finally got in sync with my outlook

[Rugbyman]

V8Triumph said:

Thank you for all the responses so far.


As mentioned before I'm actually TERRIBLE with money, well not 'money' as such but 'credit', if I've got credit I simply cannot help myself but to spend it - every last penny. I don't want it.

That being the case you are doing the right thing ...... do a self build and get that bloke off Grand Designs in

and dont dismiss the male hookers !!!!

[V8Triumph]

66comanche said:

So OP is saying she can save £100k over 6 years, to the people advocating building your own house over time, just how does this work? First she will have to buy the plot of land, which is likely to cost surely at least tens of thousands of pounds for something with planning permission, maybe a couple of years savings. Then she will have £16-17k a year to put towards the building of the house, probably enough to employ a labourer but not many materials for him to work with! The idea of a static caravan on site is a good one as the extra rent saved can be ploughed into the house, but I think this is something to be done years down the line, building a house piecemeal as funds come in sounds a nightmare.

Maybe a way onto the ladder sooner would be one of the shared ownership properties? Even if you start with one which is only 25% ownership, with the amount you profess to be able to save you can pay that off pretty quickly, then move to 50%, paying reduced rent from the off and reducing it further over time. Being self-employed though and sounds like you are fairly new to it? Just a word of caution to being overly optimistic too soon.

If you can amass a good pile of cash then buy at auction, get something which needs some work doing and you'll get plenty for your money.

This is exactly the sort of advice I was after, thank you.

My income is a fairly steady one and I've been self employed for two years now.

I have thought of shared ownership properties but few seem to have much drive space. I'm also concerned about the residual value of buying a new / newish property. More likely to fall than an old one bought that needs a load of work - I'm not afraid to get my hands dirty. Perhaps I'm wrong - I know next to nothing about the property market and whilst I know that I could buy (for instance) ten cars per year and make £1000 on each one, I don't have the knowledge about property to make money on it. However, I don't wish to lose money on it either.

[V8Triumph]

Rugbyman said:

V8Triumph said:

Thank you for all the responses so far.


As mentioned before I'm actually TERRIBLE with money, well not 'money' as such but 'credit', if I've got credit I simply cannot help myself but to spend it - every last penny. I don't want it.

That being the case you are doing the right thing ...... do a self build and get that bloke off Grand Designs in

and dont dismiss the male hookers !!!!

ROFL - I'll get him to build me a two storey 6 car garage too, while I'm at it ...

[CaptainSlow]

davepoth said:

Get a credit card, buy something small (like a packet of crisps) on it each month, and pay it off in full each month. You'll pay nothing in interest, but it'll get you some good credit history fairly rapidly.

This, plus a pay monthly phone if you don't have one already.

Maybe even take out a small unsecured loan and pay it back over the term...it'll cost you in interest but will make your credit history a lot stronger.