Thursday, 28 July 2011

Lessons Learned

Let's go back in time shall we? Living a self sufficient and frugal life, has been a dream of mine for as long as I can remember. In Summer last year I realized that I would never be able to live this life, if I don't sort out my financial problems and become debt free. You see when I moved to the UK, I fell in the trap of having a credit card. As a kid and teenager, as well as a young adult I was always pretty good with my money and saving a lot, this was what allowed me buy my rifles and later on spend a year in the USA. When I got here, I got a credit card when I opened my bank account, I didn't ask for it but it was handy, especially that first month when money was short. I paid it off fully every month and soon my credit limit was increased. This went on until 2005 or 2006 and then things went out of control... Early on last year I pulled the plug and cancelled my credit card. I had a debt of £3000 on it, not to mention £1000 council tax costs to pay and £500 store credit.

The past 12 month have been challenging for me. I decided to put a good quarter of my wages towards paying all of this of on a monthly. That meant I was cutting down on any additional and unnecessary expenses, such as meals out etc. It was though without a doubt, challenging at times but on the 1st of July 2011 I paid of my last outstanding debt and I am now debt free :)

This means on Friday for the first time in 12 month there will be a good chunk of money left in my bank account that I can spend on my choosing.

I plan to treat my self, I will go out to the movies on Saturday and watch Harry Potter and go to the market to buy a handmade basket. I have seen them on the market a couple weeks ago and thing this basket will be great to storage the wool I use to knit. I decided to move the majority of the money into my savings account, after all, I have learned I can live on little money and it will be good to put the money towards saving for a piece of land.

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