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Original poster

What is the best financial decision you have made?

224 replies

Flyingfish111 · 26/03/2021 18:24

What is the best financial decision you have made and why?

If appropriate, has it helped you save for anything in particular?

Trying to rain in my spends and save as much as possible for a house deposit.. both myself and dp have a LISA and have done now for a few years!

I'm not so sure I have a best financial decision but one that stands out is staying at home during my time at university (of course there are downsides to this outside the financial remit) which means I will have paid off my student debt by the age of 35/36+ although I admit I wasn't as savvy as I wished I was in my 20s going on regular holidays and going out drinking etc!

Both myself and DP have also kept our savings in premium bonds and have worked out that we have won more than we would have gained interest, not a significant amount or a life changing amount but a small win all the same!

On the downside, DP is in a bit of a career rut at the moment, stuck in a particular 'specific' field in the civil service (his role is business support for a specific team with some project assistance work) and struggling to move upwards!!! Any other job in his field elsewhere is paid about 5k less. I know that this is something that is holding us back financially, something for my dp (with my support) to think about this year!

OP posts:
beingsunny · 27/03/2021 22:03

Taking my savings out of my savings account where it was earning cents a month and putting it into crypto. That was October last year and it's now tripled in value.

bluespottedjay · 28/03/2021 02:37

Buying crypto
Marrying DH
Buying my council flat

catsjammies · 28/03/2021 04:33

DH and I really stretched ourselves when we bought, because we ended up buying a bigger property than we needed as newlyweds. Now we have two children and we don't need to rush moving as we have enough space, and our mortgage payments have gone down by 1/3rd so we can overpay significantly every month as salaries have increased with promotions etc. We've been lucky, but making those overpayments have made a massive impact on how soon we will be mortgage free.

catsjammies · 28/03/2021 05:05

The worst decision I have made was not making a career move when I was pre-kids, and I haven't been able to return to my line of work after kids. They're now 4 and 2 and starting a new career feels impossible. Dh makes double pension contributions to account for this, but I do wish I'd left myself with more options.

SpeakingFranglais · 28/03/2021 08:12

Paying off credit card in full every month, over paying mortgage, and taking out the full amount in a work share save.

Walkingwounded · 28/03/2021 08:30

Keeping working when in an abusive marriage.

Nearly finished me off, but enabled me to build savings and buy a small house, so I could get out with the kids. Without that, leaving would have been nightmarish ( he was financially abusive too).

Now 50 and on my own with a massive mortgage, but thank God every day for the freedom.

Tightwad2020 · 28/03/2021 10:56

Paying into a pension (NHS, then Civil Service) from the age of 23.

Saving to buy a house in 1999 - the rise in value of that first property has provided the solid basis for the security, comfort and fun we have now.

Holding on to the flat I inherited when my first husband died. I was left with a mortgage on where we were living, and I was tempted to sell up the flat and use the money to clear mortgage. But renting out the flat and reinvesting in improvements to it has provided me with a high value, high earning asset that has allowed me to stop full-time work at 50, will supplement my pension, and help my son get a good start.

Other good stuff - learning to budget well (took a lot longer than necessary, I'm afraid), not running up credit card debt (too early an acquaintance with credit cards seems to have caused problems for quite a few of my peers), getting into the habit of 'paying myself first' i.e. stashing money for savings targets, meeting essential obligations, before any of it is 'mine'.

Having one child.

I have made plenty of bad decisions too - but you didn't ask about those!

Tightwad2020 · 28/03/2021 10:58

And yes, @Walkingwounded - keeping on working in the teeth of opposition and undermining from an abusive partner.

blueshoes · 28/03/2021 13:20

Flowers to Tightwad and Walkingwounded by staying in employment despite adversity. Not everyone can do it. I admire your courage and stamina. You did it for your kids. I hope they understand your sacrifices.

TheBigGreenDinosaur · 28/03/2021 13:36

Making a career change before I had kids - new career is much more flexible and has allowed me to continue working full time so we are more financially secure than we would have been.

Persuading my DH to start paying off his debts when we first got together - lesson learned for him and wasn’t an issue then when we were eventually ready to buy a house.

Paying into the sharesave scheme at work, the big gains were before my time but it’s still a great way to save up money without feeling like I am.

TheDogsMother · 28/03/2021 13:51

Being willing to buy my first very small home in a crappy area to get on the ladder.
Getting a mortgage at .28% above base (lucky).
Starting a pension early and paying in substantially when I was in a well paid job. I was so grateful for this last year because my business really suffered so I opted to draw the tax free lump sum from my pension and pay off my mortgage. Not recommended financial advice in normal times but to have removed the worry of trying to pay a substantial mortgage payment each moth has been a godsend.

stuckinarutatwork · 28/03/2021 13:55

With the single exception of my mortgage, never buying anything that I couldn't afford to pay for outright.
So no interest-free sofas, no cars on finance purchase plans, no buy now pay later holidays etc. I have saved up for every single thing I've wanted to buy but didn't have the ready cash.

Bythemillpond · 28/03/2021 14:02

Interested to know if for all your sacrifices would you make the same decisions again if life threw you a couple of grenades and you ended up with nothing and had to start again in your mid 50s

BackforGood · 28/03/2021 14:09

With the single exception of my mortgage, never buying anything that I couldn't afford to pay for outright.
So no interest-free sofas, no cars on finance purchase plans, no buy now pay later holidays etc. I have saved up for every single thing I've wanted to buy but didn't have the ready cash.

This x 100%
Falls into the 'goes without saying' for me, but seemingly not for lots of people.

Trinacham · 28/03/2021 14:47

@BackforGood

With the single exception of my mortgage, never buying anything that I couldn't afford to pay for outright. So no interest-free sofas, no cars on finance purchase plans, no buy now pay later holidays etc. I have saved up for every single thing I've wanted to buy but didn't have the ready cash.

This x 100%
Falls into the 'goes without saying' for me, but seemingly not for lots of people.

Same here as well - other than an interest-free sofa (we could've bought it outright but when it's 0% interest, why!?)

In everyday conversations it seems like most people assume a car is bought on finance though. People have got so used to borrowing. I know for some it's probably necessary.

SandysMam · 28/03/2021 16:28

For those that never have the car on finance etc, does it ever affect your self esteem? I drive old cars etc and do exactly the same in terms of nothing on finance, over pay mortgage etc, pay into pension, but sometimes feel rubbish compared to those in big 4x4’s on finance etc. I could afford it if I wanted to but chose not to, but sometimes think “who’s the mug” as I chug away in my crappy fiesta!! Sometimes I think life is short and maybe I should just stop being so sensible!

MadMadMadamMim · 28/03/2021 16:30

@SandysMam

For those that never have the car on finance etc, does it ever affect your self esteem? I drive old cars etc and do exactly the same in terms of nothing on finance, over pay mortgage etc, pay into pension, but sometimes feel rubbish compared to those in big 4x4’s on finance etc. I could afford it if I wanted to but chose not to, but sometimes think “who’s the mug” as I chug away in my crappy fiesta!! Sometimes I think life is short and maybe I should just stop being so sensible!
Absolutely not.

I drive a 15 year old Volvo that I paid £500 cash for (and have had for 3 years now).

I commute an hour (rurally) each way. That's all I need it to do.

My self esteem is in no way affected by the car I drive.

BonnyandPoppy · 28/03/2021 16:33

Marrying my dh and not stopping working whatever life has thrown at us.

SandysMam · 28/03/2021 16:33

I think it’s how they reel you in, advertising working it’s magic by convincing you you need x y and z to feel like a worthy person!

WombatChocolate · 28/03/2021 16:37

My self esteem has been boosted by knowing I own the car I drive and that over the years I have saved thousands by buying outright rather than on finance deals. My self esteeem is boosted by thinking of all the things that money has or will enable me to do/have which I value far more than a big new car every 2-3 years. My self esteeem is boosted by financial security and knowing I can face the future without financial worries.

But clearly people differ. Some people find their self esteem in a big new car or keeping up with the Jones’ on credit. People differ. I

MadMadMadamMim · 28/03/2021 16:38

@SandysMam

I'm mid 50s and don't pay any attention to that kind of crap. I don't need stuff to make me feel a worthy person and my self esteem is in no way affected by how much shit I've bought or not bought.

RosesAndHellebores · 28/03/2021 16:39

No. I have kept my cars for usually about 9 years. They have been mpvs, in recent times purchased at about 12 to 18 months old and changed after about 90,000 miles with little value left except for part of the part of the pex negotiations. Since DC:
Rover 416 (nightmare)
Citroën Picasso
Ford S Max
Recently a CRV which I admit was a bit extravagant but still doing uni trips and it is lovely but I'll make it last until 2030 when I have to go electric.

Oh and we have always had a car fund for the replacement and I started that from my first car in 1978 which my dad gave me with the words ("put a bit aside every month to maintain and replace it because I'm not buying you another one")

I see no point in wasting money on finance/contracts for motor cars. If I have to I borrow DH's Masterati.

Kazzyhoward · 28/03/2021 16:40

We saved like mad to be able to put down a 25% deposit on our first home. Then we overpaid the mortgage so paid it off fully after 13 years instead of the 25 year term. Now we are "free" from mortgage and have plenty of disposable income and can afford to work part time. Well worth the sacrifices (such as doing as much as possible DIY ourselves in the early days to save tradesmen wages), and borrowing furniture etc at first.

SandysMam · 28/03/2021 16:42

Thank you! I will stay strong and committed to my cause (financial security!).

TigerBeetle · 28/03/2021 16:44

Gaining a qualification in a well paid profession.
Getting a very good mortgage rate.