Independent Financial Advisors - a good idea?

Watson

rprinter wrote:

Now what about your other outgoings...?

These are the principal ones (all annual figures, all based on the current and previous year):

Electricity (Powergen) - £433
Gas (Powergen) - £417
Water - £350
Phone (BT) & internet (PlusNet) - £447
Council tax - £386
Television licence (BBC) & subs (Sky) - £558
Car insurance (Elephant) - £313
Car tax - £110
Home & contents insurance (Saga) - £255
Life assurance (Norwich Union) - £245

Watson

Willsnarf1983

Watson wrote:

These are the principal ones (all annual figures, all based on the current and previous year):

Electricity (Powergen) - £433
Gas (Powergen) - £417
Water - £350
Phone (BT) & internet (PlusNet) - £447
Council tax - £386
Television licence (BBC) & subs (Sky) - £558
Car insurance (Elephant) - £313
Car tax - £110
Home & contents insurance (Saga) - £255
Life assurance (Norwich Union) - £245

Watson

ok but u need to be more specific...how much on food, going out, eating at work etc etc etc


if u don't know then keep a spending diary for one month and it will show u where ur expenditure goes


Will

Watson

Willsnarf1983 wrote:

how much on food, going out, eating at work etc etc etc

Thanks for the reply. I take your point, but my expenditure on food and the other stuff you mention isn't constant: when I have money I spend more, when I don't, I spend as little as possible. I really don't think that a one-month diary would record anything useful.

Watson

Willsnarf1983

don't take this the wrong way but ur sounding negative...just try it, it may not help but more than likely will and probably will be an eye opener to where some wastage is......and i know ur income is inconsistant but u cud try and live of a budget that allows for this as u know ur average yearly income....

Will

Watson

Will,

It certainly wasn't my intention to sound negative; apologies if I gave you that impression. I'm taking your and everyone's advice seriously and positively.

My point was simply this: since at the moment I'm in a no-income period, I'm therefore spending the absolute minimum on food and so on; so at present keeping a record of what I'm spending wouldn't really be of any practical value.

I understand the idea that keeping an expenditure diary can throw up surprises in the form of money that somehow got spent unconsciously, as it were, but please believe me when I say that just at the moment all my spending is extremely conscious and highly premeditated.

Watson

rprinter

Hi again

Erratic/sporadic earnings certainly don't help with budgeting! It looks like your unsecured debt is about 1.5 times annual earnings. It's no surprise you were thinking about a big fat mortgage; but you would still need the regular earnings to pay that back. Plus having moved this debt over to longer term secured debt, you'll be free to fill those now-empty credit cards up again which is the classic spiral of debt.

So, keeping it unsecured still, moving from the very high interest cards to low rate life-of-balance cards will help a lot.

Have you thought about a regular part-time job that your self employment can work around at all?

Having any amount of regular income you can rely on will help!

Turning_into_scrooge

The financial advisor I had we nick named Bumbling Idiot. He caused me loads of problems. House insurance with him was costing me £50 a year, when i found this site i switched companies and saved 50% he panicked when he was informed that the DD had been cancelled and i couldn't get rid of him off the phone, i ended up having to block his number through choose to refuse with BT. I would say don't use one, his consultation fee was free. He was actually recommended to me by my accountant who tried to rip me off for £400 but thats another story. :rolleyes:

Watson

rprinter wrote:

Erratic/sporadic earnings certainly don't help with budgeting!

Yes, you won't find me arguing with that.

Plus having moved this debt over to longer term secured debt, you'll be free to fill those now-empty credit cards up again which is the classic spiral of debt.

That's been exactly my experience.

So, keeping it unsecured still, moving from the very high interest cards to low rate life-of-balance cards will help a lot.

It seems to me that this is first-rate advice, and I'm already putting it into operation. I've applied for both the British Airways Amex card and the Lloyds TSB card, though as I said above I've no idea what sort of credit limits I'll be offered (or if my applications will be accepted at all, come to that).

Have you thought about a regular part-time job that your self employment can work around at all?

I've done this several times in the past, when the downward part of my income cycle has been even worse than it is at present. I've not looked into it this time because I have a big contract coming up which will occupy me full-time for the next few months (and the income from which will help offset the debts, of course). After that, who knows? A new part-time job might well be a very good idea.

Incidentally, I got a cheque in the post today from the Inland Revenue for overpayment of income tax on account. Quite made my day.

Many thanks to you and everyone for all the help and advice.

Watson