My quest to have £100k Net Worth by 26

rictus123

heathcote123 wrote: »

No stop right there! you're going about this the wrong way.

You create the streams of income FIRST, which in turn leads to amassing wealth.

I'm beggining to think you might be rather a good troll....

I can assure you i am no troll, time will tell.

I just feel very limited to what i can do without a fair bit of capital at my disposal. Especially for something that will provide an income long term.

MyLastFiver

rictus123 wrote: »

I just feel very limited to what i can do without a fair bit of capital at my disposal.

Welcome to the world.

If your boasts about monthly income are in any way accurate, then you are doing better than most. And you do have a fair bit of capital; that trade equipment you bought which is enabling you to provide a service for which people pay you [apparently] very well.

You really are over-thinking this whole thing. Just rein in your spending (no more long-haul holidays), pay off your debts then put a monthly sum away in a cash ISA.

Once you HAVE some wealth, then you can decide how best to put it to work. But until you get into the savings habit, everything else is a pipe dream.

rictus123

Yes i completly agree. Keeping my head down and nights in, no spend days are helping me get debt free quicker. The holiday to America is only costing flights and spending money. Flights been paid so all i need for it now is spends. Exactly, i need to eliminate all debt - and for good. Then work at building up some savings, then i will be able to review my plans and how to go about creating more income from my money.

newfoundglory

You need to focus on eliminating debt, not acquiring wealth. What sort of interest rates are you paying on your debts? What are the repayment terms? Is there a penalty for repaying early; could you take out a cheaper loan to pay off your current one? Could you even get a 0% credit card for all your current spending, so you can put more of your income to repaying debts faster?

You need to seek out and use cheap, if not free, borrowing.

rictus123

Eliminating debt is the first step to acquiring wealth though. Once debt is gone and im breaking even then i start building up savings and in effect,net worth.

22.9% APR. Was told it would be this high due to such a short term loan. Who would lend to someone with £13k debt already? Last payment is due the end of next year if i only pay the minimum. There is a penatly charge % taken off the overpayments for paying early unless clear it in a lump sum, the % is then much lower. I will see if i can get cheaper borrowing but even if i cant i should be debt free at this rate in under 6 months so the savings will not be too significant.

I read on here someones diary that they saved up enough to pay off debts then offered less than total amount owed and were accepted. Dont know much about this though? Was planning on just getting together the amount i need to clear all debt and just pay it all off at once in the summer. Will be opening a S&S ISA in April with a view to fill it by year end, then save my deposit.

newfoundglory

13 grand at 22.9% is more than £8 per day in interest. Thats about £57 every week and about £240 every 30 days.

This is where your problem lies - you need to take some action.

rictus123

Just applied(and accepted) online for current bank to roll all 3 debts up into one. APR has come down, i have had a good read of the settling loan early terms and conditions so i understand and have more of an idea about settling early now. Will be sorted in next 2 working days. So by Tuesday night i should be a bit happier with the set up and not worrying about 3 different loan payments to make, now i just have the one and im saving money on interest. Aim is still to have enough saved by July to pay the whole lot off. Then onto the savings game and hopefully never into debt again bar my mortgages.

Feeling quite optimistic about life after this is paid off. My income will go along way once it is not being used to service debts. Will be paying myself as soon as im paid and 50% of my income will not even be seen as disposable. Now is my chance to get sorted and on the savings wagon. I am years behind some people but still years ahead of others and i think that shows through some bitter posts i get aimed at me. I will do this though, with or without the critics.

MyLastFiver

rictus123 wrote: »

Eliminating debt is the first step to acquiring wealth though. Once debt is gone and im breaking even then i start building up savings and in effect,net worth.

22.9% APR. Was told it would be this high due to such a short term loan. Who would lend to someone with £13k debt already? Last payment is due the end of next year if i only pay the minimum. There is a penatly charge % taken off the overpayments for paying early unless clear it in a lump sum, the % is then much lower. I will see if i can get cheaper borrowing but even if i cant i should be debt free at this rate in under 6 months so the savings will not be too significant.

I read on here someones diary that they saved up enough to pay off debts then offered less than total amount owed and were accepted. Dont know much about this though? Was planning on just getting together the amount i need to clear all debt and just pay it all off at once in the summer. Will be opening a S&S ISA in April with a view to fill it by year end, then save my deposit.

This is what I mean about your contradictory posts. Either you are not telling the truth, or you don't know whether you're coming or going.

You wrote in October on the 12K in 12 Months thread that you would be debt free by Jan/Feb. How was that ever going to happen? And now you say you're going to be debt-free by the summer. That's six months. So are you going to pay off £2k per month plus service the interest on those loans?

You said earlier in this thread that at least one of your loans has an early repayment penalty. But now you say you're going to pay the loans off early. Which is it?

And as for offering partial settlement, forget it. It's an extreme solution for those in severe financial distress.

Now you're talking about stocks and shares, which is a completely unsuitable way to save for a deposit for a house. But you have been told that before.

rictus123

Where did i say i am going to save for a deposit in stocks and shares, i think its you that could do with reading the posts again. Your post reeks of bitterness, i dont know if its because of my income or age. I am still young as far as posters on this forum goes, especially the ones who actually save anything. I have said before and i will say it again. If i pay part of a loan off/make overpayments then i have charges to pay. If i pay the whole lot at once the charges are a much lower %. I have now got the 3 loans rolled into one and onto a lower apr and had a good read through the terms and conditions.

SO i now realise where these charges are coming from and i am best to save up and pay them off in one. Now i have one loan i can save up enough to pay it off then pay the whole thing off and become debt free in one clean payment in the summer. Then onto saving. I have said previously and will say again for your sake, i will open a S&S ISA in the next financial year and look to fill it as soon as i can. Then i will save a deposit. I am still young so i do have time on my side. I made this thread to track my future progress yet right now all i am getting is bitter posts about my past.

newfoundglory

Rictus - take a deep breath, slow down, and get a grip on the situation.

Nothing wrong with having aspirations - MLF is right, it would take a long time to pay off a 22.9% loan. You needed to have taken swift action on this sooner really as you are completely wasting your money.

You remind me of someone I worked with several years ago - a woman the same age as me, who had thousands of ££ on a credit card at 20%. All she wanted to do was pay it off, but had spent years trying to do so - unsuccessfully. I got her to take out a 0% balance transfer credit card and shift the debt over. I told her many many many times not to spend on the new card. Unfortunately, after a few months she gave in and began to spend on it

There is nothing wrong with wanting to get your debts down and save some money.

BUT if you ever hope to get there you HAVE to be disciplined and ruthless with how efficient you are with your money. And from what we've seen you aren't.