Page 8 | What is the best financial decision you have made?

canigooutyet · 28/03/2021 16:45

Finishing with the ex and not having a relationship since lol.
My spending dramatically dropped. And even there was a drop of income I somehow became able to save.

The last time I gave up smoking my motivation was to do the flooring in something decent.

Silkies · 28/03/2021 16:46

We've never got anything on finance / had credit cards etc and mortgage was paid off as quickly as possible - my granny always used to say owe nothing to no-one including the bank and save as much as possible. It was very good advice. I don't even drive so not in the slightest bit bothered about cars. I don't like 4 by 4s, used to be loads of them by us in London and they'ld block the roads, block access to peoples houses who lived close by and block more than half the pavements to school so people with pushchairs, more than 1 kid, elderly really struggled. Most of them only had two kids and had driven sometimes just from the top of the road

stuckinarutatwork · 28/03/2021 16:47

@Trinacham My reason for not doing the interest free deals for something I couldn't afford is fear of change in circumstances and not being able to make the payments as scheduled, this falling foul of the hefty interest penalties (which are usually based on the whole sum borrowed and not just the outstanding balance).
I absolutely have done it once we've saved up first (as why wouldn't I have it in my account earning interest rather than theirs?) but I mean that I wouldn't have done it without having the money saved up first.

stuckinarutatwork · 28/03/2021 16:51

@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!

Not at all. I don't have an old banger. I currently drive a 7 year old car which I bought (with cash) when it was 4 years old. Its still aesthetically smart, runs brilliantly and will probably do me for another 2-3 years at least, by which time I'll have saved enough to replace it with a newer car. If I was embarrassed I guess I'd get a personalised reg plate so no one would know it's true age so long as the model of car was still in production recently.

MrsMoastyToasty · 28/03/2021 17:11

Not buying Enron shares.

Lou898 · 28/03/2021 17:15

Buying the best house we could afford. Paying into pensions. Keeping debt to a minimum, saving for items rather than paying interest on loans. Making savings a regular outgoing. Overpaying mortgage. Put child benefit into an account for each child ( they now have decent lump sums for uni or house deposit)
We are average earners , have had periods of unemployment (savings helped us through this) so not unique.

At 50 I’m now mortgage free, debt free and have a decent pension when the time comes to retire.

Kazzyhoward · 28/03/2021 17:17

@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!

No, I couldn't give a toss what other people think, so my self-esteem isn't affected one iota by what I drive, nor by what I wear nor where I go on holiday, nor size of house, or any other factor at all.

I've had brand new cars and old bangers - makes no difference to me as long as it gets me from A to B relatively reliably and carries whatever I need it to at the time in terms of people/load, etc. The brand new cars have ended up as old bangers as I tend to keep them till they drop rather than part exchange every few years. My first "brand new" car managed around 195,000 miles before it gave up the ghost. Currently I have a 13 year old car and OH has one 6 years old. Sometimes we buy new, sometimes we buy an ex-demo, sometimes a car 5 years old or so, depends on what we want at the time in terms of practicality.

Never had a car on lease or PCP. We've financed a few by bank loans, but mostly we just save and pay outright in cash.

BackforGood · 28/03/2021 17:34

For those that never have the car on finance etc, does it ever affect your self esteem?

What a funny thing to say.
My self esteem isn't based on what I own.
Thinking about it, even if it were based on what I own, then it would be higher for the sound financial decision I've made over the years. Your car costs so much less if you save up (back in the day earning interest as you save) and then buy it outright, compared with if you take out a loan or car finance, when you end up paying ££££ more for the same car. Same for holidays, furniture, and whatever else people take loans our for / buy 'on finance'.

KeyboardWorriers · 28/03/2021 17:37

@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!

No. Never. I love my tiny fuel efficient car for starters. I can squeeze it into any space.

Plus my granny was very wealthy, a vast property and many millions in shares and she always drove very small and boring cars so I know that car size is often no indicator of wealth (she wasn't a miser in any way, she loved travel and helping out with university fees etc, she was just not interested in "showing off" her wealth)

goldbrick · 28/03/2021 17:53

I didn’t, I made choices out of necessity that ultimately worked out well. We had our first child while at university and our second shortly after and their health conditions meant I had to drop out. We both worked awful badly paid jobs, I had to have time off most weeks for DC so quit before I was fired and the unpaid time off was putting us in debt to pay childcare. A few months later DP was becoming depressed in his role so we decided he would change jobs for something he could work his backside off in and make a career out of so we moved to a cheaper area while I stayed home. Less than 4 years later he has had 4 promotions and his salary has nearly tripled. We’ve struggled and saved the extra as his wage increased and now have a good amount towards a house deposit in the future. Now DC’s health has stabilised and they are in school I am able to work again while DP works from home and I don’t have to worry about school runs and sick days. We have a full wage spare to save and it’s given me the opportunity to work on my career rather than taking any job as we needed the money. I have obviously been very lucky with my partner and know many women would of ended up in a dreadful position by doing the same, but when his parents tried to pay him to drop out of uni and return home leaving me pregnant and he immediately got a part time job in a shop to support himself, I knew I had found one of the good ones.

Giggorata · 28/03/2021 18:01

For houses, buying cheaper doer uppers, sometimes at auction.
Paying extra into mortgage to pay it off early.
Additional voluntary contributions into final salary pension
Rarely buy new cars, due to depreciation.

TheDogsMother · 28/03/2021 18:30

I bought my car on a great finance and balloon payment deal as they were about to phase out that model. When the deal was up I paid it off and kept the car. That was 15 years ago and I still have it. One of the things I love about the rural area I live is that absolutely everyone has old but practical vehicles. The area I lived in previously a lot of people judged other people on the types of car they drove.

SandysMam · 28/03/2021 18:30

@BackforGood I don’t think it’s a funny thing to say really, the whole Instagram industry etc is built on people’s self esteem and people thinking they need certain purchases to keep up with the Jones’s etc. That’s what I meant!

BackforGood · 28/03/2021 18:46

Maybe SandysMam but I think "the whole Instagram Industry" is a very small % of adults in the population as a whole.
So, to my ears, it is an odd thing to say.

PenisBeakerIsMyFavouriteMuppet · 28/03/2021 18:53

For those that never have the car on finance etc, does it ever affect your self esteem?

I find this a strange question too.

I’ve never had car finance. I drive a very recent BMW that I bought new, for cash.

These two facts are linked.

Less money towards servicing debt = more cash to buy nice things outright.

SandysMam · 28/03/2021 20:33

God I wish I had never said anything now!
Maybe I’m a bit younger so these things are a bit more applicable. The whole love island type/kardashian type pressure. Is there anyone out there who gets what I mean? very lighthearted by the way! Not wanting to start a pile on, on an otherwise very interesting thread!

TeacupDrama · 28/03/2021 20:38

Bought first house before property crash in 1993 made no money on it but next house I paid off mortgage before I was 40 with a family needed bigger house so new mortgage but apart from that everything I have had have paid for in cash not loans or credit cards ( I did pay by card but pay off balance in full every month) enrolled in Nhs pension plan
Don't fritter money while trying to save, don't buy what you don't need if you can't afford it, and don't buy want you don't need even if you can afford it unless you planned to buy it and it will genuinely add value to your life.
Every time your salary goes up commit to saving a good proportion of it

LookAChicken · 28/03/2021 20:41

It is possible to build self esteem on feelings of competence and making sensible decisions. (And when you are
finally quids you can get yourself st nice!)

I also love to feel I'm building my immunity to advertising. Like flexing muscles in the gym might give a boost to someone else!

LookAChicken · 28/03/2021 20:42

It takes all kinds to make a world!

OooPourUsACupLove · 28/03/2021 20:57

After I graduated in London, working out the minimum salary I needed to have an ok lifestyle and not bothering applying for any jobs that didn't offer it. Meant I put all my effort into applying jobs that were well-paying from day 1 rather than "foot in the door" jobs in the hope I'd be able to progress with experience.

Flappityflippers1 · 28/03/2021 20:59

Taking a debt management plan with step change to give us some sort of life back and a light at the end of the tunnel to actually being debt free. Then we will be able to start saving for a house and will hopefully buy when we’re 40 😳

OooPourUsACupLove · 28/03/2021 21:09

[quote SandysMam]@BackforGood I don’t think it’s a funny thing to say really, the whole Instagram industry etc is built on people’s self esteem and people thinking they need certain purchases to keep up with the Jones’s etc. That’s what I meant![/quote]
I understand. Advertising alone is a multi-billion pound industry. Add in all the other areas of marketing (influencers, product placement, editorials) and that's an awful lot of money being spent persuading people to buy stuff. Marketing money even funds entire industries like TV, arts and sports via sponsorship.

I think we can safely assume it does work because if it didn't work companies wouldn't be paying for it.

I think there are two types of people in the (developed) world - the one who realise their purchasing decisions are being influenced by cultural pressures and the ones who don't realise their purchasing decisions are being influenced by cultural pressures.

People who think their purchasing decisions are not influenced by cultural pressures are a subset of the second group

canigooutyet · 29/03/2021 09:29

For those that never have the car on finance etc, does it ever affect your self esteem?

When I was in my 20's yes it really did because I had this daft idea that I had to try and live up to other peoples expectations. Something happened that made me fully realise that they are just things and to stop giving a shit about what others think or do.

IG is just a mass advertising site imo. Even just as a regular person the amount of crap people are trying to sell is ridiculous. And what you have to remember is that you are only seeing the happy moments. You're not seeing the tears, tantrums, sweat and blood behind the camera.

Alwayscheerful · 29/03/2021 09:48

@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!

Initially I was shocked at your post but I realise your question is just a very honest and relevant to the Instagram world we live in.

Being mortgage free gives me self esteem.
Saving the maximum Isa allowance each year adds to my self esteem.
Stopping procrastinating and setting up a SIPP pension is empowering.
Money and savings give you freedom and choices.
Once you know you can buy a new Range Rover/ Jaguar / Audi if you wish they suddenly become less appealing!
Living in an area where you must keep up with the Jones's doesn't help you make good choices.
Delayed gratification can be wonderful.

Zenithbear · 29/03/2021 10:36

For those that never have the car on finance etc, does it ever affect your self esteem?
No not interested in cars, never have been as long as it is safe and reliable.
My motorbikes though that's a different story