no debt, no savings, no assets, just blah. HALP!

lessavyfav

Oh, a job I was quite excited about that I applied for this morning has got straight back to me about a phone interview tomorrow. They're a really innovative startup (well, they've been around a few years now, but still have that mentality). so that's exciting, things are looking up

Purplesky_2

I've now read this diary from start to finish. It seems like you are making some solid steps in understanding and dealing with finances.

I am curious why you still feel the need to go out and socialise with friends that way (dinner and drinks outside the home - you can et a bottle of good wine for as much as 2 glasses at a bar/restaurant!), rather than what you do in Australia, where you don't spend money. I'm wondering if you maybe aren't as secure with your friends here in London, or you maybe need to cast a slightly wider social net? Otherwise, I can't see why you spend so much time with friends in Australia, not spending any money doesn't translate to London so well, particularly with how many places there are free? Going to some classes, or joining an interest group (even something like the WI) might help with this.

Maybe you're even having trouble properly visualising yourself living/staying here, and you aren't taking the time to make genuine friends, because you figure you're on holiday or something. One of my friends was having trouble finding a house she liked in the North, and she comes from London. Eventually, she figured out that her problem was that none of the houses were in London and it was holding her up, and once she figured that out, she and her partner had made an offer within a fortnight.

Obviously, I'm just drawing conclusions based on what you've written about yourself sparsely in the past two years (And I know that I could be TOTALLY wrong). But, it's something that struck me and I thought I would share it.

Also, I would recommend 'sheconomics' as a book. It writes sort of the way you write, and I think it might be useful to you.

I'm really interested to follow your progress.

lessavyfav

Thanks for reading Purplesky and i am going to have a read of Sheconomics too! I do think of London as my home though, I love it here and my fiance is English, no plans to move elsewhere any time soon but many of my friends are moving away, I guess that could be a factor.

The reason for me not spending so much in Australia is down to the fact i go to visit my family and spend so much time with them at home catching up so I am not spending that much going out, also I don't pay any groceries, no monthly Oyster (use my parent's car or get lifts from them), I guess I am mooching for the time I am there! Erm, not so great for a 32 year old but my Spanish parents won't have it any other way!

But you're right in that I do tend to socialise so much more over here, just because I think London is conducive to that lifestyle. In Australia (especially where I am from), everyone has a car because they are more spread out, lots of places shut early, most of my friends have children and therefore can't really go out much..whereas my life here is the opposite! I only have a couple of friends with kids, I finish work later (and therefore in a rush to meet somewhere to eat or have a drink, must be central of course..i live out in zone 3!). But it's so true, there are many free things to do in London, so it's not the best excuse.

I just updated my Money Dashboard account recently, which I hadn't looked in for months, and realise I spend almost as much on 'things i want' than my household bills. This is mental! I am going to try to adopt a 60-20-20 approach: 60% goes on bills, rent, groceries, 20% savings, 20% spend on what I like. Now my bills, rent and groceries actually come to less than 50% of my usual income, which means I can filter more into savings and spendings, so the transition should be easier, more like 50-25-25.

I had an interview on Friday for a job I didn't really want, but of course - Sod's Law - they were the ones who seem very keen on me! They called me again this morning to discuss salary and start dates, so it seems like they could actually offer me something but I don't think I want to take it I have another interview tomorrow for a place that seems great, and the other company I keep banging on about said they will be in touch by the end of the week for more work. I don't want to bank all on them but they are definitely the sort of place I want to work for and the projects I am doing are really enjoyable. I guess I will just have to take my time till the end of the week and reassess from there.

lessavyfav

woah, looking at my first post and reading the SOA above is quite funny! Especially since I said '...one think I can't budge on is moving out of my area' - about 11 months later I did move somewhere quite different and have since moved again to another area!

Also funny how some things I felt I really needed (to get my hair done that frequently?!), I just don't do anymore..well, I still spend a fortune on my hair compared to most people on this bored, but certainly not as much.

I now spend much less on hair, nothing on a cleaner (so happy i no longer live with dirty housemates and cats), mobile, and groceries (now that it's shared with my bf). Oh, and I think I spend less than that on going out/entertainment too, depending on the month (unless there's a wedding or some bigger event like that on).

I spend more on contents insurance (this officially makes me boring), gas/water/internet/electricity (because I'm sharing with just one person), tv licence (didn't even watch tv before), Oyster :~( and emergency fund

Spend about the same on holidays and clothes I think. Clothes is a hard one as I don't really buy anything regularly, only as I need it but tends to be more quality. Sadly I no longer get my discount at my old work - a designer retailer!

Am in a conundrum, I've been offered a contract for 3 months to start ASAP at the job I didn't want. it would be good if I didn't want this other job so bad. I imagine that if I take on this job, what's the bet the other company will ask me to work more and I won't be available? And if I risk it, I'll probably be unemployed for much longer - argh! One of my friends told me that people often take up contract at her work and then leave midway because they got their 'dream job'. I always feared I would burn bridges that way but maybe I just need to do it. Who knows, I might enjoy the role in the end.

Hantsman

Just read through start to finish and as has been said before, you seem to be a good place with room for improvement. I had a similar moment to yours at a around 27 though my circumstances are very different (live abroad due to work so I get very cheap accommodation and don't need to worry about bills).

You have been given lots of great advice and obviously tried to implement what works for you, I know London can be a money drain from my infrequent visits, I love it but there is always so much to spend cash I can see how it would be hard to save.

Keep at it, use this site for ideas and tips, use the best bank accounts you can and make any savings you do get work as hard as possible for you. Other than that remember that the best way is to make saving a habit that doesn't cause you huge amounts of pain, but is something you achieve through being careful where and when you choose to spend your hard earned cash.

katsu

Contractors at or work leave early and if we liked their work we don't hate them and do work with some again. Depends how they left us /impact on projects and how good they were. Hope that is some reassurance!

egoode

Hi lessavyfav,

Congratulations on your engagement. I just finished reading your diary and think you have changed a lot since you first started it. I'm also from Australia originally and great to see another Aussie on here. I feel like we are becoming a rare breed as it seems not as many people are doing the working holiday thing any more. I used to always work with lots of Aussies and Kiwi's and now I'm often the only one in the office.

You are lucky you never got in to debt and it seems you are definitely getting in to the savings habit. I'm a contractor and one thing I would say is you really need to have a large emergency fund for when you don't have work if you continue doing the freelance work. I usually aim for 9-12 months of living expenses however as you also have your fianc! to lean on you might not need as much.

Sounds like you had a productive talk to your fianc! about future financial goals and I know you mentioned YNAB earlier but said you didn't get the software. Personally I would highly recommend getting it as it's not that expensive. That way you can then both track how you are going on your budgeting and saving. I think you will definitely find it easier to save now you have some big goals like a wedding and a deposit for a place.

I think really early in your diary you mentioned spending a lot on presents for your family. Not sure if this will help or just offend your family but I decided rather than buy presents every year for everyone I usually do a call on their birthday and if it's a big birthday like a 21st or 30th I would send a present but other years I don't send anything. Also I only buy Christmas presents for my family on years I go home for Christmas. It saves me a lot of money but also I don't expect them to send me presents so saves them money as well. Although my Dad will often send me a gift voucher or some cash as Dad thinks I should get something for my birthday.

Good luck and hope it all goes well.

lessavyfav

@Hantsman - thanks for the tips, i keep chipping away and I'm getting there slowly plus educating myself by reading these forums non stop. You've saved so much over the years, I need to get to that point!

@katsu that is reassuring, i also made the decision today to go with the contract job. I think the timing with the job i really want isn't quite right as they aren't in a rush to hire someone perm, they're still talking about it. At least they know of me and will hopefully keep me in the loop when they sign off that permanent role.

@egoode, yay for another Aussie. Are you in London? You're so right about having more backup savings in the account, I have nowhere near 9-12 months. I would be a lot more stressed if I wasn't with my fiance and still hadn't locked anything down yet. I haven't had to ask him to borrow any money as I still have some savings but he has assured me that I can take my time in finding something I want. What a gem.

As for YNAB, it sounds really good, I'm going to look into it, I have to be disciplined in to actually using it or else I k now I'll end up getting too far behind and just giving up.

The family tends to get less presents the longer I'm here! but they don't send me anything either so it's fine.

Now that I'm starting back at work on Monday, I'm going to try to enjoy the last days of weekday freedom for a bit (well, until I go away in two weeks time for a week south :P )

Hantsman

lessavyfav you have done the most important thing and decided you want to do something, and from the sounds of it you are doing fine, once you get into a habit of treating saving as a "cost" like bills and rent that goes from your pay and can't be spent you will be amazed at a) how quickly it builds up and b) how your attitude to it changes.

One thing I did that I recommend is either making a note or just thinking every time you want to spend money "why am I doing this?" you seem like a social spender which is good, go long as you are getting your money's worth i.e. enjoying the company and the food/drink. If you are doing it simply because you are bored then maybe you need to find a hobby that is cheap or free to occupy yourself.

I used to find myself browsing online shops because I nothing else to do and felt buying things would give me some excitement, which it did but that excitement would quickly fade and I got bored again. I took up about 3 sports which I do through the week (again, to avoid boredom) and have found I have zero desire to shop unless I really need something. It doesn't need to be sport or the gym but those appealed to me and I feel I am spending my time and money in a far more positive way, I imagine volunteering or other hobby would have a similar effect. I found my circle or friends rapidly expanded as well

Anyway, this is a long post and I will draw it to a close now but you have so many good things in your life, and like you say, you have no debts, so keep trying and it will come in time.

lessavyfav

Enjoying some lovely time away from London, staying coastal and loving the slow pace of life! I've managed to eat a lot of seafood, go on a couple of runs and go surfing. Not spending too much either! I am not ready to come back just yet!

Unfortunately, I am HATING the job I signed up to for 3 months. I'm not sure I can actually complete it! There are some lovely people that work there but the job itself is stressful yet boring (so not rewarding). I am working long hours too. So I'm going to see how I go for the next couple of weeks but if it's still as horrendous as weeks 1 and 2 were, I'm going to leave (and hope there's something else lined up for me right away or soon after).

A shame, in an ideal world I would like to hold out till the end of the contract in early September but the more I'm enjoying myself on holiday (and therefore feeling much better mentally and am more pleasant to be around), the more I realise a stressful job is just not worth it, especially when I'm not passionate about what I'm doing. I have also been stitched up by the company a bit - when I started I was told that while I was on holiday they would find cover for me but instead they just got me to cram a whole lot of work before I went away and when I get back a huge pile will be waiting for me (not to mention, they've emailed my personal email while I'm away). Annoying!

Financially things are okay, finally getting paid a few outstanding invoices. Not having to borrow anything from the boyfriend, but could do with a bit more flow coming through just so that I can see the ££ growing more quickly. I have managed to save £300 per month since January without touching it which is better than nothing, I suppose but I know I need to be saving much more than that for the wedding and house deposit. The non consistent work flow just makes it that much more difficult to predict.

Anyway, hopefully the next time I update this diary, the job situation improves and I'll be back on track to saving larger amounts of money!