Attitude to money?

Bravepants

Terry_Towelling wrote: »

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).

This only works for the first 56 days, surely! Once you have used the first 56 days of free credit, you still have to pay the previous credit card bill! That is, each subsequent 56 days you pay the previous credit card statement and then start the next 56 days. All you've done is lump the individual shopping payments together and then offset the payments in time by 56 days!

RueyE

Fair point about the mortgage and a credit score!!

BananaRepublic

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.

Do you know that a credit card gives you free purchase protection. For example if the seller turns out to be a crook. They are worth using, and pay off the debt immediately. I had your attitude to them, but now I use one when for example spending £1,200 on a skate sharpening machine from Sweden.

Your attitude is good. I was more of a saver until I was mortgage free, and had enough to retire on. I would splash out each year on one or two item, but run a basic car and keep it till it had done well over 100,000 miles. Now I spend a bit more, so I pay for a personal trainer each week, and spend ~£80 a week on ice skating and ice hockey. That is my weakness. It means I save much less than before, but I invested money for decades, watching it grow, to gain security. Some people spend money like there is no tomorrow. I guess I have an inner insecurity that plans for the worst. It means that I am now financially secure, and can relax for the next 20-30 years, if the Gods allow me to keep my feet above the ground.

juststuff123

Hi supersaver2019,

I was in a fairly similar situation to you, lives alone, purchased house, budgeted to within an inch of my life, set myself savings goals that I thought would make me feel better or safer once I reached them. In reality, as soon as you hit your £12k savings target, it's unlikely to change your outlook much, you'll set yourself a higher target to make you feel 'safe' and so on. I did that with paying off my mortgage and i'm still doing it with my savings / investment, the target of which now stands at £100,000!

It's really difficult to find the balance, and for me it's an ongoing slow process of relinquishing a little bit of control, I've started by spending on significant redecoration and allowing myself the odd unnecessary purchase without the need to justify it to myself.

Allow yourself a little bit of slack, you don't want to make yourself ill over it, trust me!

bearshare

If you think it is stressful when living alone, imagine having a non-working wife and young children depending on your income!

New_and_Improved_Me

In life everything HAS to be a balance, too much of anything is BAD for you.

In my humble opinion, there is no-point in scrimping and saving every penny you earn for the future, when the reality is there is no guarantee you will wake up tomorrow.

On the flip side, spending every penny you earn. On the assumption that you will NOT wake up tomorrow, will leave you a poor man/woman when you don’t have the capacity to earn.

So you have to find a balance. Live a little now and save a little for later. Some people just don't get this concept.

I’ve been guilty of been of scrooge in the past, not spending on anything beyond the absolutely necessary, but now that I have a modest savings pot and some assets that will provide for me IF I am unable to work/ in my old age. I am much more relaxed about money and don’t mind spending on little treats whilst the money is coming in.

It’s good to plan for the future, but don’t give up living NOW your life for the SAKE of that future.

New_and_Improved_Me

bearshare wrote: »

If you think it is stressful when living alone, imagine having a non-working wife and young children depending on your income!

DITTO!!!

The stress if multiplied a 1000* when you have other depending on you.

mark5

I had savings and a house when i met my wife, she had a house with less equity and a few debts, during our time together she spent carefree while i saved, when we got divorced she walked with the bigger share.

I understand where your at but sometimes wish i had spent more on my self now.

Eco_Miser

Hi supersaver2019, you ask about people's attitude to money. Mine is: I've got enough to see me out, so I don't need to worry.
It wasn't always that way of course, but from just after starting employment, I've always had enough to pay next month's bills, so no need to worry.
It helps that mostly I see no need to buy things, so I naturally saved without even thinking about it.

Like you, I'm single, and after looking at my married friends and family
am financially thankful for that.

You're doing well.
It's a good idea to justify all spending - thoughtless spending is bad - but sometimes the only justification needed is "I want it, and I can afford it (, and it's not a lot of money)". Other times more justification is needed, possibly more than is available.

On credit cards, I didn't have or see the need for one until I bought my house. They can be very useful - fridge or washing machine broken down? No problem, just buy another on your credit card, and make sure you have enough in the current account to pay it off IN FULL when the DD happens (at least 14 days away, and maybe 56), moving money from savings if necessary. This is in addition to the advantages others have pointed out, such as Section 75 guarantee, cash-back on purchases, keeping money in your savings account earning interest for longer, not needing to worry whether your current account has enough just before payday to cover an unexpected purchase by debit card as well as the expected standing orders and direct debits.
Of course some people can go mad with a credit card and run up unpayable debts. You don't sound like such a person.
Keep saving, but stop worrying.

Terry_Towelling

Bravepants wrote: »

Terry_Towelling wrote:

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).

This only works for the first 56 days, surely! Once you have used the first 56 days of free credit, you still have to pay the previous credit card bill! That is, each subsequent 56 days you pay the previous credit card statement and then start the next 56 days. All you've done is lump the individual shopping payments together and then offset the payments in time by 56 days!

Perhaps an example might help to illustrate why the credit card route can be better (in my opinion).

You get paid £300 into your Nationwide FlexDirect current account (5% interest) on the 1st of the month and do a £300 monthly food shop the same day. You pay with your debit card/cash. You now have no money left and will earn no interest. You get paid another £300 at the start of the next month, do the same food shop in the same way, and again have no money left and earn no interest.

So, why not put your £300 shop on your shiny new credit card on 1st of the month and leave your £300 pay earning 5% interest until your card payment date, which will be towards the end of the following month (for simplicity's sake I have assumed the card billing date to be 1st of the month also).

Come the next month, you get paid another £300 and do the same again. Now you have £600 on the card and £600 earning interest in your bank account. Later on, towards the end of month 2 your first month's card bill of £300 is cleared off. Roll on a few more days to the start of the following month and you get paid another £300 and so it continues.

This way, you are earning 5% interest on a balance that is £600 for most of the time because you don't clear your first month's card spending until the best part of two months later. The only things you have to remember are not to spend the money in your current account because it's there specifically to cover your card bill. I know some people are incapable of exercising the necessary discipline but the principle still stands.