Want to clear debts and accumulate wealth

lifeonhold

I am looking for some ideas. I am 41 years old, single with one 9year old daughter who lives with me. I have £20k worth of debt. I have no mortgage or assets, except for a car worth about £1K, and no pension.

My only income is from my job where I work in the public sector and get £30k. I just about scrape by every month on my wage but it usually tight. I get no financial help from my daughter's mother and don’t have wealthy relatives or siblings.

The problem is this.......I am sick & tired of being poor. All my life I have worked and earned an honest living and look where it has got me......nowhere! The problems I have in my life are usually ‘lack of money’ related and I am sick of it all.

I want to make money, pay off my debts and not have to worry about money anymore. I want to get myself into a financially stable position and make it last. I don’t want to be a millionaire just no debts and stable. I want to provide for my daughter so she can go to university and give her the best start in life. I want savings and I definitely don’t want to be poor when I am old.

At the moment, I have no idea how I can achieve these things. I am not a business type and have no knowledge of how to make money or where to go to find out. I am prepared to do anything, within my capabilities, to learn and know how to make money.

Does anyone with more knowledge of these kinds of things have any ideas for me? Where do I start?


[FONT=&quot]Thanks.[/FONT]

gemsy82

post an SOA (statement of affairs) and everyone can help you to reduce your outgoings & give you ideas of how to increase your income etc.

there are various threads on here which show you how to cook/ live more cheaply & make extra money.

hope this helps!

lifeonhold

[FONT=&quot]I have been on the other boards and looked into debt management and know all the ins & outs of getting the best deals. Even if I went bankrupt I would still be paying out for 5 or 6 years to the courts. I just want to find out how to make money? How to take risks and accumulate wealth…[/FONT]

Nargleblast

Hello lifeonhold and thanks for posting. So, your daughter is 9 and you are aiming for a university education for her - 9 years time. In the next nine years then your aims should be, in the order in which they should be achieved,

1. Clear your debts
2. Save up an emergency fund of 3 month's worth of wages.
3. Start a regular savings scheme for high days and holidays.
4. Start a university fund account.
5. Start a savings account to provide for your old age as you cannot rely on the state pension scheme alone.

This sounds a lot to take on but it is doable, and ten years from now you could be starting number 5 - you will only be 51, still 14 years off retirement, and will be able to save quite a bit for when you give up work.

First, though, number 1 - clear your debts. Do the statement of affairs thing (see sticky at top of threads list - first time posters, SOA) so we can all see your baseline situation. We can then help you trim your expenditure and maybe suggest ways of attacking the debt. Good luck.

Oneday77

lifeonhold wrote: »

[FONT=&quot]I have been on the other boards and looked into debt management and know all the ins & outs of getting the best deals. Even if I went bankrupt I would still be paying out for 5 or 6 years to the courts. I just want to find out how to make money? How to take risks and accumulate wealth…[/FONT]

What you need to do first is stabilise the current situation. Is it a good idea to jepordise money when you have a daughter to care for.
People her ewill offer lots of advice on how to spread your money out more economically first. Then you could look at making more in an other way.

Making more money doesn't necessarily make you richer. Look through the board at couples with combined incomes of £100k per year but with lots of debt. Unless the underlying issues of where the money goes then more = more misery.

Post an SoA using www.makesenseofcards.co.uk/soacalc.html then people can help you. this board is for getting debt free not making money. It will make sense I promise.

Ames

If any of us knew how to do that we wouldn't be here, we'd be millionaires!

The only way is through hard slog - increasing your income, or by sacrifice - reducing your outgoings, or a combination of the two.

It's important though to know how the debts were built up so that you don't just fall straight back into bad habits, like the others said, stick up your SOA, fresh eyes might see something you can't.

lifeonhold

[FONT=&quot]Nargleblast & Oneday77

Thank you for the very practical advice but I have been through those stages you suggest. Bankruptcy & IVA are options but I still have to pay out for years not to mention the consequences of going down such roads. What I am talking about is doing something for a couple of years or so to just clear my debts. I am prepared to do anything and don't care if I work every hour god sends to achieve it. Just looking for some direction or advice about how to start, where to go, who to talk to. There must be someone I can go to? Am I living in a dream world here? Am I doomed to be in debt or on debt management plans for the rest of my days? Is there not something I can do if I am prepared to put the work in and make the sacrifices?[/FONT]

Beast

Yes you're living in a dreamworld - if there was an instant get rich quick method, everyone would be at it.

Contracting in Iraq/Afghanistan is probably the nearest you'll find.

lifeonhold

I am not talking about an instant get rich method. I am prepared to put the work in and do what is required even if it takes years, but know nothing about money making.....where do I start?

I have no responsibilities (except for my daughter whos care is shared with her mother), no mortgage, I am single and can go in any direction I want.........but don't know where to start!

Nargleblast

You could try getting a job abroad earning money free of UK taxes, but it would mean an upheaval for your daughter, whether she went with you or not.

There was a TV program on some time ago about how to pay off your mortgage in 2 years - it meant the families in question had to take on second or even third jobs and do some serious costcutting, but it was possible, although very very hard, physically, mentally and emotionally. If that kind of thing appeals, then there will be a book or books about it that you could read and get some ideas. Other than that, you are left with pure chance (National Lottery and other gambling options) or breaking the law (bank robbery, prostitution, drug dealing etc). Get rich quick schemes only make rich those who thought of them in the first place, others jumping on the bandwaggon tend to get their fingers burned.

You say you have looked into bankruptcy and IVAs, I suggest you post on the bankruptcy board if you haven't done so already. Yes they are drastic solutions, but people do choose them and manage to live to tell the tale. Talk to some people who have done these things and weigh up the pros and cons - one of them might not be such a bad idea after all, and once you are debtfree you can then manage your monthly income more efficiently and be able to look into investing for the future.

dark^knight

I agree with a lot of the replies already. You have taken the first and hardest step which is to face up to your situation and vow to do something about it.

It is going to be very hard to clear the debts, but it will be worth the effort.