Time To Get Serious With My Debts

Time To Get Serious With My Debts

Time to get serious with my debts. Since starting to write this blog 8 months ago, I've made some massive changes in my life, and my way of thinking Number 1 positive is that I've decided to tackle my crappy financial situation and become more financially stable Number 2 positive is that for the first time in my life, I've started using a spending plan, monitoring my income and expenses and cutting back on the spending which doesn't improve my life (like beer, lunch from the office canteen, meals out etc) Number 3 positive is that I've made a list of my credit card debts, and started to make more than just the monthly minimum repayments each month. My debts have reduced by £3,000 … [Read more...]

Living On A Knife Edge

Living on a knife edge

Are you living on a knife edge ? Am I living on a knife edge ? A recent Yougov survey in the UK which sampled 7,500 families revealed that 44% of families only have enough savings to pay for one months rent or mortgage if they were to lose their jobs. 29% of families would not be able to pay their immediate months rent or mortgage if they were to lose their jobs. Thats Scary ! Examining my own position, I would just about be able to manage as my wife earns a decent income, but if we were both to lose our jobs then we would be in serious doo doo At the beginning of my process of paying off my debts and climbing out of a financial hole I saved up £1,000 to act as an … [Read more...]

Payday Mugging

Payday Mugging

Payday Mugging No one wants to be the victim of a mugging. We’re all shocked when something like this happens in our neighbourhood. There is outrage on the news, and column inches written in the press. My last post about how taking out a short term payday loan can have a long term negative impact on your credit rating made me realise that payday loans are nothing but a legalised financial payday mugging. So rather than being a payday mug – I think it’s right that this post should be about the alternatives to taking out a payday loan. Reading about students using payday loans to buy concert tickets, without realising the damage they are doing to their long term financial prospects, … [Read more...]

Payday Pain

pay day loan

Fancy some payday pain?   It seems as though taking out a payday loan can have long term repercussions on your personal finances. As well as having to pay eye wateringly high short term interest rates ( the highest I've seen is over 1750%pa) it seems as though there is now a long term sting in the tail for those desperate enough to fall for the marketing charms of the payday loan companies. Recently released mortgage application data in the UK shows that highly paid professionals such as lawyers, company bosses and other young professionals are having mortgage applications turned down because they have in the past taken out payday loans. Wow! It appears as though … [Read more...]

How Big Should Your Emergency Fund Be

how big should your emergency fund be

How big should your emergency fund be? An emergency fund is an amount of money that you put away for when a rainy day comes. Rainy days can come in an infinite variety – from the gearbox packing up on your car, to your roof leaking, or being made redundant – the list is endless. Its money that you can call on quickly to fix these events in life which you know will come but don’t know when they’re coming. Events which are just that bit bigger than your usual monthly budget can cope with. I think that having an emergency fund is an essential part of developing a financial plan and the first thing I’ve done since deciding to turn my financial life around is save £1,000 (or $1,600) which … [Read more...]

A Budget – At Last

A Budget - At Last In my last post I said ....... This evening I'm going to make a personal income and expenditure chart with an overall objective of increasing my income - and reducing my expenditure and paying off my debts (cards, tax etc). And I'm not going to start this process at the end of the month or the first day of the new month - I'm going to do it TODAY. Well, I did it - of sorts. But it took me longer than I first thought. By scrutinising the credits and debits on my bank statements for the last 3 months I've finally come up with my definitive list of regular expenses, for both domestic and business accounts. My expenses weren't as frightening as I at first thought they … [Read more...]