Like Rome, the debt-free home can’t be built in a day

Today MoneyAware is delighted to welcome guest blogger Shona Prophett from Frugaldom and the Frugaldom Forums, to post her thoughts on building up a debt-free and frugal ethos.

You need to be determined to succeed with the frugal lifestyle (thanks to Alan Cleaver)

Like Rome, the debt-free home can’t be built in a day. It takes time and dedication to formulate and implement a plan of attack, plus a dogged determination to succeed. Unsustainable debt is the enemy.

Rearing a family while a partner works all day isn’t easy, especially when finances are stretched. Having a low interest rate mortgage while being encouraged to borrow more can sound tempting.

As long as you have an income that appears to covers the repayments, financial institutions conveniently overlook the cost of your lifestyle. One could almost say they lull you into a false sense of security.

Breathing space at last! Children at school, house becoming a home and friends to share your social life. Cigarettes, alcohol, takeaways, a choice of TV, telephone and Internet subscriptions, mobile phones, daily papers, the weekly TV magazine, the National Lottery, maybe even a holiday… all yours for the taking, but none of it budgeted for in the preliminary borrowing stages. Still, life seems good.

Wham!

Then your job is lost and there’s not a penny in savings.

Council tax increasing, utilities prices rising, telephone about to be disconnected, credit cards maxed out and the overdraft costing more in fees than the direct debits it can no longer sustain. What can anyone do?

Everyone wants a slice of the pie and you suddenly realise that there isn’t enough to go round. It’s the same whether you rent or buy; keeping the roof over your head becomes your primary concern.

Urgent austerity measures are needed!

Good Things Come to Those Who ACT!

Don’t wait; act now to safeguard your own future. Count every penny you spend, count all income and calculate your bottom line. Keep on top of absolute necessities like rent, mortgage, council tax and vital household bills plus arrange for minimum debt repayments to avoid the stress of possible court action.

Cut out all non-essentials, introduce a diet of batch-cooked meals and implement a zero-waste policy at home. Find ways of increasing income but never forget that a penny saved is a penny earned. Feel good about your own ability to take action because you can do this, you can separate needs from wants to tackle money problems.

You could shop online at places like Food Bargains, Approved Food or Big Brands for Less – but remember a bargain is only a bargain if it’s needed! Use every available money-saving, penny-pinching, frugal-living trick in the book to steer clear of debt. This household uses homemade laundry detergent just to save an extra £1 per week!

Get help

If you need help with debt problems go to Debt Remedy for free online counselling, or if you need to speak to someone in confidence, call CCCS on 0800 138 1111. Their debt help is FREE – don’t be seduced by quick-fix solutions that could end up costing you more.

Make it your ambition to nurture a new lifestyle, look beyond your debts and aim for financial freedom.