Are you debt-free? Has it made much difference to you?

elperello · 29-02-2020 12:29am

JustAThought wrote: »

Having no debts and being able to manage comfortably is one of the greatest gifts - people take so much for granted the mental head space you can have from not having a niggling calculator running day and night at the back of their head - it gives you peace, options and freedom. I doubt any car upgrade or extra set of suits or extensions could make you that happy and calm.

That's it.

Debt free just makes life so simple.

uch · 29-02-2020 2:53am

I owe 181,500 I have in the bank 187,000 so what ever I do i really couldn't give a shít, if I stay clean me and the missus are grand, if I manage to fúck things up again, it's in her bank so all parts covered as far as I'm concerned

Low Energy Eng · 29-02-2020 3:22am

uch wrote: »

I owe 181,500 I have in the bank 187,000 so what ever I do i really couldn't give a shít, if I stay clean me and the missus are grand, if I manage to fúck things up again, it's in her bank so all parts covered as far as I'm concerned

Considering the interest you're paying would you not pay of the loan?

I've got mortgage debt. It's quite manageable so I'm happy to have it.

Local guy · 29-02-2020 3:50am

Well,I work 3 months for my bills.
1) I put enough mortgage for 1 year ahead
2) I spend money for my car insurance and taxes

This take 3 moths of my wages
The rest I just do not use
The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

When I loosing job I have my mortgage paid for 1 year ahead
My car insurance and taxes paid 1 year ahead
This make live easy.

Boozybooze · 29-02-2020 4:05am

I think people fall into the trap of what other people think of them. A lot of people get a huge mortgage on a fancy house paying it off for 30 years when a house half the price would of doing them, buy a new car every three years even though the other car is fine.

Making it look like there rich when they are far from it and only can retire at retirement age.

Also hate people who take their jobs way too seriously and like every single thing is the end of the world in work. Jaysus your just a number.

I'd rather retire at 50 than have to work till 67.

con747 · 29-02-2020 4:06am

Local guy wrote: »

Well,I work 3 months for my bills.
1) I put enough mortgage for 1 year ahead
2) I spend money for my car insurance and taxes

This take 3 moths of my wages
The rest I just do not use
The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

When I loosing job I have my mortgage paid for 1 year ahead
My car insurance and taxes paid 1 year ahead
This make live easy.

Is that the tax on your Renault Clio that jumped up in price this year?

Zebra3 · 29-02-2020 11:07am

Nothing wrong with debt so long as it's manageable.

Maewyn Succat · 29-02-2020 12:23pm

Being debt free and having savings has allowed me to quit a career I hated and return to college at 40 fulltime to pursue something I've always wanted to do. It's done wonders for my mental health alone.

I'm open to taking on debt in the future to upgrade the house as my kids(1 and 3) get older but for now I'm happy with not having the worry of having to make any monthly repayments on anything.

We live on my wife's wages and live a simple enough life but it's a good life.

tamara25 · 29-02-2020 1:07pm

That would be the dream to be mortgage free, we topped up our mortgage twice in the good times & I regret it now. At the end of the day all that money has to be paid back.. I love watching programmes about people who sold up & decided to live off grid. It’s so interesting, I know not everyone can do it. Ben Fogle has loads of programmes on it. I could save more also if I put my mind to it..

29-02-2020 1:19pm

Boozybooze wrote: »

I think people fall into the trap of what other people think of them. A lot of people get a huge mortgage on a fancy house paying it off for 30 years when a house half the price would of doing them, buy a new car every three years even though the other car is fine.
.

I disagree on the house, making do isn’t good enough for something as important as your house (if you are able to push to better). I’m building and will only be doing it once so it’s being done right even though it is going to cost.

ArchXStanton · 29-02-2020 1:25pm

Debt free, I spent a few years living in Toronto, when you get to see a society were nearly everyone is in debt and just a pay cheque away from sleeping on a park bench you learn to live very frugally and within your means, it's capitalism/banking system on steroids compared to here, it's chews people up and spits them out

NSAman · 29-02-2020 1:25pm

Personal debt is zero.

I have two mortgages on properties that are small and very manageable. I have two business mortgages which are also small.

All loans have been paid off and anything I purchase now, is purchase in full with no loans (as parents brought me up to do).

Savings are very nice and assets are producing nicely.

I honestly think it is a “time of life thing” as all of this has taken years to create and hard won.

Does this financial stability (will never call it financial security) change me? Nope, I still work hard and save as much as possible.

What difference does it make? The ability to do things you want to do! The lack of worrying about where the next euro/dollar is coming from (a feeling I knew for many years). The ability to make choices for myself and others. The ability to help others. Making sure family are taken care of.

Wildly Boaring · 29-02-2020 1:44pm

Took on small debt this year to move house.

Have very manageable PCP on main car.

Means only one of us have to work.
Massive weight off, we have young kids.
Wife is at home and can do playgroup, toddler mornings etc. If a kid is sick or during school holidays we're grand.
She'll go back part time or job share when they're all in school.

banie01 · 29-02-2020 1:51pm

Yep, mortgage free and it has made a huge difference tbh.
I've had to retire from work at 38, and am currently in receipt of Invalidity Pension at 40

Having my own home owned outright and some degree of financial security and stability makes a huge difference.

Substantial drop in my income, yes.
But no real difference in our standard of living, I do joke with my son that he's living a CEO kids lifestyle, on a pensioner's kids wages :pac:

There is a lot more planning around expenditure and trying to manage outlay than I engaged in, in past times.
If I was carrying significant debt in these circumstances it would be honestly crushing.

Luckily, despite the health issues!
Life could be far, far worse for my little family.

Even illness and being pensioned off has afforded me the opportunity to return to Uni, so it's small victories.

29-02-2020 2:22pm

L1011 wrote: »

Did a drastic cost cutting job so I could clear the credit card a few years ago after realising how much it was costing me. What's ironic (and deliberate by the bank) is that now its cleared every month I've been given a 'fancier' card with significantly lower interest! Had term loans, also gone.

Cut my mortgage term in December and if my partner gets an expected promotion in April it'll be cut again. Outstanding amount is already less than 1x household income thankfully

Would go back in to debt again for that specific purpose, if looking to move to a bigger/closer to the city property but I want the existing one gone ASAP.

Two keys? TWO keys? Luxury!

I got one with a manky white keyring and advice to change the locks!

Ha! One key? Well lah de dah- I didn’t get any key coz mine didn’t have a front door !

:P

29-02-2020 2:24pm

Local guy wrote: »

The bank calling me every 12 months because they does not understand why money coming to my account and not leaving
I simply explaining them telling I am Carpenter if you know what I mean,.

.

I hear you paint houses?

:pac:

BailMeOut · 29-02-2020 2:30pm

The three financial rules everyone should follow

- Pay off your debts
- Save for a rainy day
- Secure your retirement

redarmyblues · 29-02-2020 2:34pm

Buy the cheapest house that will suit your needs, don't add on extensions or do unnecessary Major upgrades, when you are ready to move up the ladder don't, stay where you are and buy another house and rent it keep doing that until you have 3/4, retire.

twignme · 29-02-2020 2:45pm

I'm single, no loans (never had one) or credit card debt and mortgage paid off some time ago through renovating and selling my homes since 2000 and lived in this one for 10 years without a mortgage. I have a good bit of savings which allows me the occasional luxury, to travel with the occasional upgrade and have lived overseas on a whim knowing I could get right back into the housing market when I returned. I can look at my monthy pay statement and know that I don't have a chunk of it coming out to pay for the house or car. I pay all my insurance and annual bills in advance which gives me peace of mind, because those are the things that I would consider 'debt' as I can't live without utilities, petrol etc. I couldn't sleep at night if I owed a lot of money.

Crock Rock · 29-02-2020 2:54pm

I retired 20 years ago at age 55 with a pension fund worth well into the millions and a 6 figure annuity.

I got a substantial lump sum on retirement and paid off the house after 20 years....

Oh wait ..

29-02-2020 3:04pm

Currently debt free and the only change to that might be a mortgage in the next year or two. I didn’t find having debt in the past a particular weight on my shoulders as I could afford to service it and I sort of forgot about it - I made a few mistakes in my early twenties, had the bad credit rating for a few years as a result and so far haven’t done the same again. What I do find really liberating though is having a good nest egg set aside so that no matter what happens (illness, job loss, a need to quit my life and move to Mexico...) I won’t have to worry about finances. I also only work part-time now as I’m at the salary stage in my career that I can afford to.

I wouldn’t say I’m skipping through the daisies about it 24/7 but I know I’m fortunate to not have to worry about money very much.

Maewyn Succat · 29-02-2020 5:58pm

redarmyblues wrote: »

Buy the cheapest house that will suit your needs, don't add on extensions or do unnecessary Major upgrades, when you are ready to move up the ladder don't, stay where you are and buy another house and rent it keep doing that until you have 3/4, retire.

On paper that sounds like a great plan. In reality you would need to have rocks in your head to actually set out to become a landlord in Ireland. This would have been a good strategy in the past but not nowadays.

29-02-2020 7:38pm

Maewyn Succat wrote: »

On paper that sounds like a great plan. In reality you would need to have rocks in your head to actually set out to become a landlord in Ireland. This would have been a good strategy in the past but not nowadays.

between that and over-extending yourself on loans- highly geared is a risky business and not for the amateur

lmimmfn · 29-02-2020 8:57pm

It's not just being debt free though, you need a semi decent rainy day fund to really be free( assuming pension is already decent) .
One could argue its setting another milestone after the huge milestone of being debt free( from mortgage etc. ) and that it goes on and on but I digress, after that it's just not caring so much about money.

Galwayguy35 · 29-02-2020 9:48pm

Only loan is the mortgage and that is the only loan I will ever have, I will have to buy a car this year but should have enough saved to cover the cost of it.

23 years left on the mortgage but it's a tracker so the interest is small on it.

Inspector Coptoor · 29-02-2020 10:03pm

Only loan is the mortgage.
It’s a decent chunk but in a good area and the house value is €200k more than mortgage.

Paying mortgage, saving and investing.
Childcare is a drain at 4 figures a month but won’t always be Paying it.

Carry · 29-02-2020 10:13pm

Are you debt-free? Has it made much difference to you?

Yes, it did.

I'm finally debt free, three years now. Mortgage paid off, permanent overdraft paid off, credit union loan (for a new roof for the house) paid off, some more years ago the bloody student loan paid off.

I never took out another loan, used the credit card only for emergencies, only bought stuff with money I actually had. Living within my means, so to say.

It's effin marvellous to not to worry anymore about debts, being able to spend money on stuff I really need (improving/repairing the house) and things that enhance my wellbeing, and being able to save money for rainy days.

But since I've been living on a tight budget almost all my life I'm so used to it that I'm not able to throw my money around. I'm still in awe when I realise that I can actually afford a holiday or not to work for some weeks (being self-employed).

And yes, I'm pretty smug about it, knowing the struggle was worth it eventually.

Gael23 · 29-02-2020 11:38pm

Apart from mortgage yes

ILoveYourVibes · 29-02-2020 11:41pm

Yes ....and HELL YES.

IM WEEELY FWEE

elperello · 01-03-2020 12:41pm

Carry wrote: »

Yes, it did.

I'm finally debt free, three years now. Mortgage paid off, permanent overdraft paid off, credit union loan (for a new roof for the house) paid off, some more years ago the bloody student loan paid off.

I never took out another loan, used the credit card only for emergencies, only bought stuff with money I actually had. Living within my means, so to say.

It's effin marvellous to not to worry anymore about debts, being able to spend money on stuff I really need (improving/repairing the house) and things that enhance my wellbeing, and being able to save money for rainy days.

But since I've been living on a tight budget almost all my life I'm so used to it that I'm not able to throw my money around. I'm still in awe when I realise that I can actually afford a holiday or not to work for some weeks (being self-employed).

And yes, I'm pretty smug about it, knowing the struggle was worth it eventually.

There are several articles and studies available online that concentrate on the issue of spending savings in retirement.

Main factors seem to be the difficulty transitioning from a saving habit of a lifetime and a fear of running out of money.

Different spending patterns have been identified at various stages of retirement.

This one from Canada is interesting -https://www.theglobeandmail.com/investing/personal-finance/retirement/article-why-arent-retirees-spending-their-savings/

Are you debt-free? Has it made much difference to you?

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