Young business taking off...£30k to clear asap!!

YoungBusinessman

Debts currently stand at £28,402.14....with interest from this month still to come and payments from this month still to be made...but the good news is i have £3,500 coming off a debt tomorrow to bring it down to under £25k owed. With min payments straight after it will be down to £24,000 with interest to be added on month end.

Making progress. The £3,500 is coming off a £4,700 loan so with that payment plus minimum payment then add on interest there will be about £1,000 left to pay off and that will then save me £200 a month in min payments from that loan.

So total loan payments per month should be down to £629 by end month and down to under £24k owed.

I am going to do this in 12 months or less.

I have van + car, trying to sell car right now! Not looking promising though.

My job is seasonal but i think with my expenses being so low(£1219 - i class this as low?! ) compared to income (£3,000) i can afford some drop before i struggle. Also plan on having min payments down below £500 by the time winter comes around and total expenses below £1000 for each month as thats a ridiculous amount for someone still staying with parents.

I feel its time to move out and buy somewhere as i am 21....yet i seem to have time on my side when i visit these forums and see FTB's at 30 +!! I give myself 2 years max to sort out debts and buy a decent home.

POSITIVE_AND_FOCUSED

Just browsed through and wanted to say how fantastic it is that you have started your own business and have such a positive outlook for it . Congratulations and well done. Good for you. Whilst I can not really add to the SOA advice already given to you, I would suggest some reading material which I have found incredibly helpful and encouraging on my journey. On goal setting, and overall attitude tips, The Seven Strategies of Wealth and Happiness by Jim Rohn is a fantastic read. I refer to it often and I am just starting a book called The Richest Man In Babylon by George S Clason. Its deals with thrift, financial planning and personal wealth. Thats my pennys worth. All the very best and as a self employed person myself I would say just don't let the media get you down with recession talk etc. Just keep focused and have a plan and follow it the best you can.

cazmanian_minx

With the seasonality - have you got enough cash stashed to pay your tax bill when it's due?

Congrats on starting up for yourself at your age, I wish I'd had the guts to do it at 21 (took me another 8 years!).

YoungBusinessman

I will look into them books, thanks positive and focused! I have read the richest man in Babylon, it is a terrific read. Read it along with rich dad,poor dad. More or less the later sums up the one that looks poor is infact rich, the one that has everything and looks rich is infact poor and paid for it all with the banks money. Great read and really makes you think.


I have enough stashed for tax bill, i hold back a bit more than i should to more than cover the tax+insurance. Slowly building up a cash reserve there.

Im going to start doing what my OH does, who is also self employed. She can earn upto £1000 a week, minimum is around £300, yet every week she pays herself £230. Which on her minimum outgoings is more than enough yet its building up a great business cash reserve for her.

I cant really do this yet as need to pay down the debts first. First aim is to get minimum payments down below £500 a month. I calculate i have £9,000 of debt to pay off to do so.

Trying to get rid of car just now, its just wasting away sitting in the drive. Might just have to accept a low price and be gone with it.

Having shocking weather just now...not to worry though, getting through all my paperwork and getting it out the way so i dont have to do it on the nicer days.


Holding back paying the lump sum off debts until i get paid for a couple more jobs iv just put invoices out for. So will be next few days hopefully.

patman99

If your work is gardening, then getting contracts to maintain leasehold sites can be quite a money-earner. The hard work is selling your services to the Management companies. Sometimes it can pay to work closely with other trades such as a window cleaner in order to be able to offer a full package.

Where I live we have a gardening company who also clean the windows. In the spring/summer, they cut the grass and trim the bushes and in the winter they fix the fences and clean-out the drains.

YoungBusinessman

It is not gardening but a simular line, its manual but skilled work. More skilled than gardening id say so can charge higher fees. A couple of customers owing me money are not delaying but in no hurry to pay...and there is nothing worse than these type of folk if you ask me. I have my own bills to pay and they shouldnt get work done that they cannot afford.

Anyway wont let it hold me back, this is why i keep £5k as my £0 in my current account to allow for hold ups in payment etc and debts still get paid! Im looking at buying a motorbike despite my debts etc...maybe i should decide against it and have another LBM! There is no such thing as good debts i dont think. A mortgage would be as close to it if you think there is such thing. Yet i dont think my debt is bad.

Took on to increase income, that worked and now increased income is making the payments, once its all gone the payments amount will be there to be saved = £10k a year net payrise!! All different lengths but longest one has just shy of 5 years to run...