So, we cashed the endowment and paid off all of our debts. Somewhat scarily (oh who am I kidding, TERRIFYINGLY) we were paying the equivalent of my whole month’s salary in various debt repayments (car loan, kitchen, credit cards) plus the endowment payment. Which of course means that now, alongside a nice five figure sum in the bank, we have basically an extra full time wage spare every month.
Which of course, I am going to spend on shiny new things and good times.
Nah, not really. We are going to be INCREDIBLY GOOD AT SAVING from now on. We found a nice high (well, high for these days) savings account that we can put a monthly amount into, and have switched to a current account that pays 3% (whoo-hoo!) and cashback on bills. We really do feel in control for the first time in a while, and our money is now going to earn us more money, rather than us having expensive debts.
I have set up a nice new spreadsheet to show how our money grows. I can’t tell you how pleasing it was to input amounts that didn’t have a little minus sign next to them. As lovely as it was to watch our debts shrink every month, and we did find that a thrill, it is going to be overwhelmingly exciting to watch our savings increase. Oh yes. We know how to party in this house.
I know it sounds like we are flibbertigibbet fools with our cash, but we’re really not that bad. Honest. Well, ok, I am a bit spendy. But that’s all going to change. The debt we accumulated was all manageable and we were never in trouble with it, it was just annoying. Also, we were paying a not small amount into the endowment, which we have used as savings since we bought this house five years ago. It was originally linked to Rob’s first (interest only) mortgage, but we have always had ours as repayment, and overpaid as well. So really, I think we are financial GENIUSES.
I also think that, in much the same way as debt tends to accumulate more debt, savings will accumulate more savings. It’s the Law of Attraction, innit. Which I have always used to great effect in life. The happier and more positive I am, the better things go for me. Like attracts like. So I believe, absolutely whole-heartedly, it will work for gathering our untold riches.
If we carry on spending at the same rate as we always have, we will be able to save the equivalent of a new family car in a year. If we cut back on spending (which is of course the idea) we will be able to almost double that. It’s very exciting, but also slightly terrifying. It’s quite a lot of pressure. But hey, I THRIVE on pressure and have always worked best when I’m in the middle of something a bit scary. I like to test my own boundaries and abilities.
So, I’m blogging about this as a way of setting it in stone. This is my challenge to myself. I’ve thrown down the gauntlet. I know that if I read this post back this time next year and I’ve failed to save the way I’m planning to it will be soul destroying. So, of course, I will do everything in my power to avoid that feeling. This is how I roll, people.
Wish me luck. And keep me away from the sales….