Attitude to money?

Boleyn19

It is right to be careful about money but not be stressed about it. You are doing the right things to help you. When I was on my own I budgeted carefully and never went overdrawn on bank or credit card.

Alice_Holt

As others have said you are doing the right things.

My only comment is can you invest in yourself to make future job retention / progression more certain. Further qualifications / career experience, or even just gain greater confidence in your existing abilities ??

1Foz

You've done really well. I feel I am at the extreme end of MSE'ers, as example, I refuse to pay centre town parking charges so always park 1/2 mile from town at the nearest street location where there's a spot, did that only just last Saturday in B'mouth. I don't think you're being silly, but as others have said, you shouldn't beat yourself up over 'treats' or things that are needed that you feel should be justified if they have a certain price point. I've had similar battles on that score cos I don't like spending money without thinking about it.

Personally I find I make better savings and economic choices by cutting the cloth on daily provisions (parking I count as one), rather than doing so on things that will improve your living or whatever. Parking 1/2 mile closer to town for £4 for two hours doesn't do it for me, but I've got work colleagues paying £6 to park all day at the cheapest spots and over a week, that adds up. And that's before they 'bought' lunch. I reckon I've got £50 a week on them with just those two things Next month I will buy a Tesco christmas saver card for £200 just for the £12 bonus in November. Why wouldn't you, after all?

Terry_Towelling

supersaver2019 wrote: »

I've never wanted or needed a credit card - if I can't afford it, I don't spend it. I've got £100 overdraft and that's it.

I can't decide whether you are being serious or not, but, if you are, your approach to credit cards is way off (in my opinion). Of course, I understand what you say and why you say it, but that is because you have the wrong idea about credit cards.

You need to stop seeing them as a way of buying things you can't afford and view them as a convenient way of buying the things you normally do each month and deferring payment for them for up to 56 days (interest-free).

With your payments then deferred until your card payment due date, you can ring-fence the cash needed to clear them by sticking it in an interest paying savings account.

Obviously you have to pay in full each month, but because you are only using the card for all of those things that you'd normally buy with cash or debit card, that should be no problem.

There are other strategies you can use (e.g. stoozing) if you can get yourself a 0%-on-purchases credit card.

1Foz

Agree with Terry. Its about taking that credit product and being/using it opportunistically Even if you just use it on the groceries, look at it as excess cash you get to avoid paying off that allows you to pick up interest having put real cash to one side, rewards picked up on that card there's loads offering cashback or rewards using it at certain or designated retailers etc. You want the credit card that will give you the most back for your needs/usage. As long as you pay it off, you end up not paying a penny to these credit card providers while picking up all the perks that come with them.

If you get yourself a credit card this month, then use it on the groceries for all of October, thats probably £200 quite easily moved over to the card leaving your current account freed up with that cash. Then you can buy yourself a Tesco Christmas Saver card for £200 that will reward back with £12 bonus in November (that's a 6% boost, not bad)....add on top of any gained rewards from the credit card...so long as its paid off the next month, you gained yourself a minimum of £12. This is just one example of course. That £212 tesco saver card. then pays your November groceries and leaves you the credit card freed up for the month of November for those Christmas gifts that might need purchasing.

This is just a stupid example, but you get the idea. £12 in your pocket, none in the credit card company's...and more freedom for you too when it comes to those periods of the year when expenses are tighter. Its only round the corner!

Fingerbobs

And, of course, there are credit cards that pay you cashback just for using them, effectively giving you a discount on all your shopping. I personally pay for absolutely everything with a cashback credit card, apart from the rare occasion where credit cards aren't accepted.


Been a credit card user for over 20 years and never paid a single penny in interest.

RueyE

Hi
You seem to be doing just fine.
I have a couple of points to make...

Regarding having a Credit Card, this can be useful for improving your Credit Score, by always paying off the full amount every month. So my OH didn't have a credit card until last year, obtained one from her bank (when they offered one), and arranged for them to set up a DD to always pay the full amount off every month. She only spends a maximum of £50 per month on her card. Her credit score has improved, so can be useful.

Second point is that I have always been a saver (as this was impressed upon me from my parents - who had very little money). So my OH and I always saved what we could (luckily she has the same mindset) . Whilst this can be a struggle in the early years, this has meant we are now in the fortunate position of being able to retire early.
However a consequence of this is now trying to adjust our mindsets, to not having to constantly look for bargains, make do without, and to relax more about money as I know we already have enough to support us for many years to come. Truth is that we are finding it difficult to adjust as it becomes so ingrained in your thought processes. So I would say treat yourself every now and then (but not to the point of getting stressed about it).

barnstar2077

I too was very stressed when I first bought my house, about 17 years ago. I overpaid early on and took the view that if I lost my job I might not be able to get another one that pays the same. Recently, now in my early forties, I extended the term until I am 67 which makes my repayment just over £50 a month! I pay the difference into my pension and ISA.

So I am effectively mortgage free, and as I have always kept my outgoings low my savings could pay my total bills / mortgage cost of £400 a month for quite some time (I don't drive.)

I agree with one of the comments about about keeping your day to day expenses low. I will walk into town instead of getting the bus (saves money and I enjoy walking) and I take my own lunch with me to work etc. This has always given money that I can save / invest, but with the option of using that money one or two months a year to take care of unexpected bills or to buy one off expensive items.

Don't stress about it too much though. You will find over the years the amount you are paying a month on the mortgage doesn't seem as expensive due to inflation and with pay rises becomes a bit more affordable every year. The first few years are the worst, but you are doing well from what you have said!

JennyJukes

Money is a worry for me.

I spent all my life savings at 22 going on a cruise, buying a car and moving in with my ex, who had expensive taste and made me contribute a lot of my own money for his expenses.

At 24 I left him and became homeless. He took all the money from our joint account and I didn't receive any of the furniture.

At 25 I got my own council property and had to pay out to do it up like you would if you bought a house.

At 26 I moved out due to anti social behaviour.

More money down the drain.

However, I did get to use some of my savings when I left him on a new wardrobe, a new computer and a couple of small (but expensive!) holidays so I'm glad I had these.

I now private rent and I'm in a job in a company I don't think will last long. I don't have anyone to bail me out if I become jobless. And I NEVER EVER want to become homeless and start all over again and be put into another anti social behaviour bad for my mental health.

So I save and save and save and save. Yet I don't want to spend any of the money.

It's so hard on your own. I have no family or friends around to bail me out. My boyfriend is a student so can't help either.

It's stressful. But motivates me to get a better job. Aim high. Understand the monetary value of things.

Knowing that my life never turns out how I plan, I need to prepare well. I'm currently saving for an emergency fund and a deposit for a house. I'm 26 right now and my plan is to save for the next 4 years towards a house and try to get a better job in the meantime (job interview on Friday!). I don't know if I'll be married then, will I have kids, will I even have a job? Will I be single? If I'm single and have the deposit, I'll buy the house then. I'd rather do it with another person but I'm also trying to be financially independent because I have no idea what will happen. We used to have a good life as children until my dad left and my mum now had to work 3 jobs just to keep a roof over our heads! So there's a lot of anxiety surrounding the future and money for me.

This is why I budget an "entertainment" budget so I feel there are some things for my own pleasure each month. Once I reach my emergency fund goal, I intend to create an account for my "fun" and split my money on deposit savings, excess/emergency savings, and guilt-free savings.

barnstar2077

As far as the credit card goes, you already have a mortgage so I don't know why you would need to improve your credit score. Credit cards are not for everyone, my sister got herself in a right pickle with them, so I wouldn't get one just for the sake of it. Even I have been surprised a few times by how much was on there compared to what I thought was : )