Forward Planning and Ideas.

samskillern

Hi all! Firstly I would like to say I’m new to this site and I apologize in advance for what will probably turn out to be a very long post.

I have decided to take control of my life, I’m 19 and going nowhere so something needs to be done and the biggest bane at the moment is my finances (or lack thereof) So I’m going to be using the advice from MSE to try and get a good standard of living (and savings) back.

At the moment I am currently un-employed and earn next to nothing, I have a few side earners and a couple of semi-regular weekend shifts but its impossible for me to judge how much money I am going to have from one week to the next, so part of this thread will be about me ‘thinking-out-loud’ to try and solve existing problems, and in turn prevent any other problems from arising in my soon to be ‘perfect-life’

The problems:
1. I’m 19
2. I’m currently in a fair bit of debt from when I ran my old computer repair company. (see below)
3. I have the world’s worst credit rating – EVER! And it’s causing me to be stuck in catch 22, I would love to be able to put all my debt on a 0% card and pay off the minimum for a while to shed some weight but cant even get considered.
4. I have several financial commitments from when I ran the company which I cannot avoid and am tied in. So these have to take priority.
5. My girlfriend of 4 years dumped me last week so my ‘household’ income just halved.
6. I NEED to get a flat and a car/driving license.

The Good News:

1. I am about to open up a new bank account, its nothing fancy just a bog standard current account – I’m going to keep this account immaculately clean and try and waggle a bit of an overdraft out of them. Hopefully by using this overdraft and paying it off it will boost my credit score.
2. I have several job interviews lined up, so hopefully I will be employed soon enough and have a regular income – the trick is to get my finances sorted so that I don’t blow all the money as soon as I start earning.
3. I have negotiated with the supplier of my temp work and can now confirm that 100 pounds a week will be heading my way regularly.
4. My own side-business is starting to take off and will be hitting the 150 pounds a week mark very soon.







My Debt:

My laptop – I owe my brother for it 480.00
Lloyds TSB (currently being chased for it) 390.00
Vardis (some stupid advertising company I used with old company) 295.00
PC World Business Account 295.17
My Mate 80.00
Comet Store Card (Its in my ex’s name but I wanna help her pay it off) 800.00
Orange (My phones been cut off till I pay this one) 220.00

Total 2560.17

Regular ‘fixed’ Expenses (Currently)

Orange Phone Bill 45.00
Mum + Dad Rent p/month 120.00
Smoking (rollups and I will quit but not till settled in flat) p/month 69.00

Total 234.00

My Ideas So Far:

I think one of the first things I will do when I get a job is rent a place, I need independence away from my parents and if im going to start looking to enjoy life more I don’t think it should be in a spare bedroom at my folks place. I wanna get a place on the cheap though so to do that im going to rent a 2 bedroom flat instead of a 1 bedroom flat, the difference in rental costs is about 12.00 so not that big, the rent on the place will cost me (avg. guess) 320 pounds a month, but ill rent out the other room to my mate for 120 pounds a month, over the term of the year that will mean I save a whooping 1440.00

I have been wanting to join a gym for ages and loose the beer belly but they are worryingly expensive and increasingly difficult for me to get to as I do not drive. So instead I had a cunning plan. (more like common sense) instead of joining a gym im going to get together with a few mates and do a run every couple of days after work, meet up and run for a bit then take it in turns to cook a ‘cheap’ meal for each of the other people. Great way to socialize for free! Total saving by not joining the gym p/year is around about 708 pounds.

I really need to drive, partially for work, and partially for social stuff – so I was trying to figure out how to do it cheaply. Really it boils down to two choices, car or ‘other’ I think to begin with I’m going to go with the ‘other’ option and thanks to a very nice legal loophole I can drive without a license/mot/tax or insurance. The answer …. a battery powered pedal assist moped. All I need to do is recharge it at night, and because its pedal driven as well its counted as a push-bike – savings per year by not having to buy a car/petrol etc is an estimated. 2920.00
So far I have saved 5068 pounds for the first year, or in other terms an additional 100 pounds a week disposable income.

Im sure more savings will follow, and I am now dedicated to being a tight !!!!!!. Which is great, as soon as I get the job, and start spending ill be able to start making these savings – I love planning in advance  Ill keep posting in here to let everyone know how im getting on.

annie-c

Well done for this post Sam - a good start.

Can I suggest you get it moved to the Debt Free Wannabee site though, where you'll get lots of sensible advice - it may get overlooked on this bit of the forum.

All the best

Annie

samskillern

Thanks for the comments annie-c, ill move the post over to there. Im going to use it as a kind of Diary i think to ensure that I am always on the steady.

System

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [email="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/email].

frosty

Hi samskillern,
have you talked to your parents about your money problems? if they would let you stay rent free you could use this money to pay off some of your debt,you need to sit down and work out what you have coming in each week or month(Iknow you dont earn a regular wage)and also write down every penny you spend,everything from a penny chew to a pint of lager,its amazing at the end of the week when you can see what you have spent(or wasted) your money on.

BobProperty

What happend to the servers just then?

Anyway, a few things strike me about your circumstances. You are going to start earning some reasonable money so you need to start organising paying your debts off by "snowballing". Have a look around this site for links (cos I can't remember it, sorry).
Quit smoking now. Buy a bicycle. You probably need to save a deposit for the flat and the rent will be paid in advance usually, so you need to budget for that.
Don't worry about your credit rating. It's not going to be very high anyway as you are very young, live at home and don't have a permanent full time job BUT if you sort your finances out now and get straight with everyone you will be OK when it matters in a few years time when you want a mortgage or similar big commitment.

Bargain_Rzl

BobProperty wrote:

You are going to start earning some reasonable money so you need to start organising paying your debts off by "snowballing". Have a look around this site for links (cos I can't remember it, sorry).

http://www.whatsthecost.com/snowball.aspx

skintchick

What stands out from your post is that you are counting not spending as making savings, which is not true!

You need to stick to reality and count what you are actually spending NOT what you have decided not to spend on - ooh, I've decided not to go to New York for a weekend, I've saved £600!! Well, no, I haven't, cos I never had £600 to go to NY anyway.

You need to get real. Live at home - you can't afford your own place right now, and most landlords will not allow you to sublet a room like you're planning.

Right now you pay a tiny amount to your parents - living away from home means you have to pay water rates, council tax, gas, electricity, contents insurance, food, TV licence, phone landline, internet, and this is EXPENSIVE!

Your priority should be to pay off your debts while living at home, and then think about getting your own place.

Also, your phone bill is huge! You need to cut that down.

Sorry if any of this sounds harsh but you are a bit head in the clouds right now.

Kevicho

Just out of interest what computer qualifcations do you have?

I did self employment when i was younger and, although earning well on it, i wish i had joined a company which would have trained me so i would have the MCSE's etc im paying for at the moment

Im going back to it in a few years, but IT is a pretty competetive field so id recommend getting in a decent company rather than going it alone at this point as you obviously will struggle paying for courses etc, plus you will build up experience

Other than that good luck!

dinkylou

I agree with skintchick.

You are looking at savings rather than costs.

If you rent a place with your friend (why not split 50/50?) then you will also have to pay all the other costs of living not just rent.

And also, you will have to buy and run a moped which is another cost. (Can you not use public transport?)

It looks like you are planning to spend a salary which you have n't got yet and still have debts to deal with at the same time.

I know its frustrating living with parents but its the only time in your life when you'll be able to live so cheaply. Use the time to get rid of your debts, you'll be glad you did when you leave.

System

I also agree with Skintchick and Dinkylou. Seriously, whilst your at home get rid of your debts. I so wish I had done this before I bought my own house. I didnt owe much but it was still a pain. As soon as you move out your bills will at LEAST quadruple. Put another way, I went from living at home and just paying £200 a month to paying just shy of £1000 a month before I even got to spend money on myself.

Think about it this way. At home you dont have to pay:

Water rates ~£30
Elec/Gas ~£30
TV Licence 112?
Council tax £100
Mortgage/Rent £400
Sky/NTL/Broadband £50
Food ~£160

Off the top of my head that little lot comes to £882 per month. Compare that with living at home for £200 a month, thats £682 a month towards your debt.

Just think of how much quicker you will be debt free and able to get a 5% deposit on a house.