Personal Finance Gone Wrong

I’ve calculated all my outstanding debt and it stands at – £65,235. This amount is shocking for a 22 year old. I feel ashamed that it’s that high. How could my debt go off the rails so soon after leaving university? Where did it go wrong?

I think the answer is when you don’t have money you have to manage it as best you can but as soon as you get leave university, get your first job and start earning some decent money you get into bad spending habits.

After surviving on beans on toast your first payday feels like all the money in the world. Once you’re working you are flesh blood to the banks, it opens up access to more credit and finance products.

The last thing on your mind is paying it back. Part of the student experience is drinking, partying and letting your hair down. You want to go out partying, meeting girls and travelling on borrowed cash.

The problem is you can run but you can’t hide from your debts, therefore I have committed to becoming debt free. I’m fed up of robbing Peter to pay Paul. I’m tired of been skint, in loads of debt with my money in a mess.

When I discuss money with other people my age the main issue is debt and the inability to save and afford a house. We have to rent private or live back at home because we don’t have the funds and deposit required to take out a mortgage. Others options increase moving in with friends to cut rents or find a cheaper place to rent.

I don’t fancy moving back in with my parents or living with my friends 24/7. That must avoided at all costs. I’ve come to enjoy living alone and enjoy the freedom.

Homeownership for me is a distance dream and a far out nightmare. Even if I did have the money for a house deposit on the practical side it’s probably best to remain renting than buying my own home.

The home is only yours when it’s paid off and that’s at least another 25 years of debt I’d be chained to. I’m not ready to put down roots and get tied down to years of financial commitment. I have no choice but to stay put and keep renting.

Buying a house is one of the biggest purchases and commitments you’ll have to make. You have to be financially and emotionally prepared to purchase a house. It means growing up and been tied down.

When you’re a little kid money doesn’t seem to matter unless you want sweets, a new toy or a trip to the fair ground. When you head of to university you know the debt will build up but you don’t care because you can dream about becoming extremely successful in your career. No worries, you’ll land a cool job with mega pay become a lawyer, doctor, famous actor, scientist, airline pilot or run a multi-million dollar business.

You don’t worry about money or your personal finance at the time. Then reality kicks in and you enter the real world. Only then do you realise you’re not sure where the hell your time and money has gone and your personal finance are in a bad state with nothing really to show for it.

My parents warning me about this. There would tell me to be careful with money and “Save, Save, Save”. The thing is you tend not to listen, somehow thinking you know better and your finances will all workout fine.

When you are a kid you beg your parents for sweets or cry because they won’t buy you a new toy robot. Your loving caring parents explain that sweets rot your teeth and you can’t have them before your dinner. They explain that the toy you want is a waste of money because you hardly play with the last toy robot they bought you two months ago.

Your wise old parents have valid points and are trying to teach you healthy values and give you financial tips. At the time you don’t care or understand so you throw a tantrum.

I think the lessons they tried to teach me back then have finally penetrated my stupid skull.

From here I don’t want to suffer with money troubles and debt problems. Debt holds you back from living your life. What this means is you have to tackle the issue and learn a few personal finance lessons:

Top 7 Financial Tips:

  1. Teach yourself how to budget.

Create a simply budget and understand where your money is going.

  1. Don’t buy something you can’t afford.

If it doesn’t work within your current budget don’t buy it.

  1. Don’t buy something you don’t really need.

How much money do you waste on needless things and impulse buys. 

  1. Long term debt has a cost.

Stop treating your credit card and overdraft as income and a means of monthly financial survival.

  1. Save more than you spend.

Stash away your cash and save as much of your income as you can.

  1. Have a back-up emergency fund.

Put some saving put aside for emergencies to avoid running up debt.

  1. Invest for the future.

Invest and save enough for your old age and retirement.

Take these financial tips seriously and you shouldn’t have too many money worries in your life. Stop scraping by every month and start being proactive will give you the confidence and momentum you need to turn your financial future around.

The Leftovers

I think our generation are the leftovers. The ones left behind to pick up the pieces of our failed society. As twenty-some-things our freedoms are limited and our privacy is disrupted and invaded without us even knowing it.

We are expected to contribute to society by politicians and past generations who have destroyed and polluted it. I can’t help thinking that they won’t be much left of the worlds resources to enjoy after all the drilling, mining and fast paced consumerism has eaten away the Earth’s core.

We are the people who are going to have to come up with solutions and clean up the mess that the previous humans morons didn’t care about. It’s not our fault, millennials are the victims. Our only crime is when are birthdays fall.

Privilege is a source of cruelty. The battle of the haves and have not’s. I’ve lost faith in the system because the system seems to be everyone for themselves. That’s capitalist greed for you. Capitalism seems to define happiness as whether we have money or not.

We have political discussion to decide what is best but it never seems to get any better. One power is overthrow for another by a little “x” in a box, who has the most firepower or the highest bidder. Politicians aren’t even organised enough to work out their expenses let alone run a whole country’s budget. I think we should all be able to vote on how our taxes are spent instead of pretending we have a democracy.

The low election turnouts are because of the promises of a Land of Hope and Glory. The results show no promise. Obviously politicians can’t handle the responsibility. And based on that we know politics is two faced.

All the dreams in each manifesto is never quite as described. If they can fake sincerity and keep offshore funds than I can sell fake knock off goods down the market. I reckon there is one good politician in every hundred. It would be better to decide who wins elections with Pokémon cards.

When will the austerity be over? Personally I think we all need to make more cuts to finally clear the deficit – starting with Westminster throats. Governments can’t create social cohesion because the voters should make the policies. It’s easier to run the world on fear and bullshit. The future is scary business. With many things beyond our control.

Will there be an NHS left for the next generation? Will I have to pay for private health care and a sick bed so I can get treated for any nasty diseases I catch?

When you grow up can you find and land a good job?

Will I ever be able to afford my own home?

Will the trains actually be on time this week?

Can your favourite football team ever win the league?

Will I ever pay off my student debt?

When all the seas are poisoned what will replace my fish and chip diet?

Will we have a World War Three?

Not very uplifting thoughts. I don’t feel any safer or better off knowing we have a nuclear defence program to protect me from shrapnel. Soon we’ll all be the leftovers. Trying to plan for the apocalypse is the best risk management strategy.

I’ve realised what a terrible consumer I am. I’m doing myself a disservice. From here I’m going to lift myself out of poverty, debt and fading expectations. I’m hoping to one day to have the prospect of getting on the property ladder instead of being a financial refugee. I’m learning to balance the books. Give up silly spending habits and investing the leftovers into my future.

Everyone isn’t created equal where wealth and power is concerned. The rich elite are buying and bribing their way up the pyramid. Wages have hardly gone up, people can’t afford buy a decent house and the recession doesn’t seem to have taught us much about money.

Lately I feel more like a leftover. How are future generations and my kids (when I impregnate someone) going to deal with all these questions, ifs and buts?

A university education isn’t cheap, you can’t pay off your debts and retire by working for free. That’s why some students take up pole dancing and prostitution to pay for their education.

I’ve gained lots of blogging experience so it’s time to take this blog beyond a hobby and a series of me ranting on about my problems. Therefore I’ve started my part time based adventure to supplement my income. It’s been a great student chapter, but over time this site needs to evolved into something quite different.

By now you will have noticed the a fresh new look. You’ve probably already noticed the ads and site changes including a new layout and blog design.

Since launching this blog I’ve never monetised it or placed advertising on the site despite it costing me money to run and time to develop. I’ve worked out I’ve spent over £700 keeping the site running, not including the time spend on it. I’ve sacrificed many hot student meals keeping this thing alive, I hope you feel guilty. Stopping this blog would save me money.

Still no logo design yet as I can’t do the creative graphic bit. I’ve never used Photoshop. I know my weaknesses and any artwork I use on here is usually clipart and stock photos.

I need a logo designed for the new site (any graphic design student volunteers out there willing to give it ago?). Maybe in hindsight I should have taken creative media as a degree course.

There are many unanswered questions I have about the future and  how life is going to work out. I’m starting my own social movement and a republic to wealth. Taking everything in moderation except my mission to save, invest and get debt free.

We are faced with a social handicap. It’s full of bullshit promises from clueless leaders and media idiots. Society has gone to hell, I don’t what to join it.

The media and TV is just a distraction so we take our eyes off the ball. The mainstream crap on TV makes our heads go numb. Many of us don’t notice we are trapped in the matrix of a dying world. It is us who have to create something from the rubble and make something of the shambles.

We need to wake from the bad dream. Don’t be frightened to hope. The hopeless disappointment keeps us all going. If we aren’t careful we’ll all be the leftovers.

I guess you can feel my desperation and dismal mood. I’m having an early midlife crisis. Not bad for age 22. At least I can get it out of the way.

We can all bitch and moan about money and our difficult lives. On brighter note at least we have the Internet, flushing toilets and I’m not earning a dollar a day to make top name brands.

Society hasn’t learned anything. Wars still happen, bombs explode, dictators still rule and the violence on TV is depressing. I’ve vetoed society today or maybe my judgement is off. Either way misery, fear and desperation surround us all. I’ll probably feel better if I go buy a pack of cream cakes to speed up my diabetes.

20 Changes in your 20’s

When you reach your 20’s things change. It’s a time to figure out what you want to do and who you want to become. What can I teach you about finding your way when I’ve hardly lived myself?

Growing up is hard. Young and stupid is always easier. As a 20 something you develop an unknown phobia for the future. Here is my advice for 20 something’s who need to review their lives:

  1. Get ready to make lots of changes. You’ll set goals and make plans. Be ready to adjust them and ditch some. It’s is time to discover your potential.
  2. You get a job or have many jobs. They may not be what you expected. You have to hold it down. Everyone has a gift to give the world. It may be in the job you do or a different “calling”. Find that calling and follow your heart.
  3. Your student and college days are over. You can’t live like a slob anymore because Mummy and Daddy can’t clean up after you. A tidy house is a tidier mind.
  4. Friendship will come and go. Some relationships will last some will fizzle out and go down different paths as people move away or don’t return your phone calls. Work on the relationships that matter to you most.
  5. I’ve had my share of heartbreak even as a 20 something. You can’t force love and have to let past lovers move on with their lives. When you breakup remember it happened for a reason and that “the one” is still out there.
  6. Exercise so you get fitter not fatter.
  7. Watch your diet. Eat the healthier stuff with the occasional salt and sugar explosion.
  8. If you smoke or vape then quit.
  9. Read more. Read for fun, read for education.
  10. Sort out your money and finances.
  11. Maximise something’s, minimise and eliminate others.
  12. Experience the world. Go on real life adventure. Stop letting technology eat up your time.
  13. Be afraid, but do it anyway.
  14. You have a voice. Use your right to vote.
  15. Learn to chill out and slow down.
  16. You are in your twenties, you are going to make lots of mistakes. Don’t beat yourself up over them.
  17. Listen to older and wiser people than yourself.
  18. Always keep learning from your own experience and mistakes.
  19. Your 20’s are the best days of your life. Enjoy them. Party hard but plan harder. Getting this stuff right now will set you up for life and build your future.
  20. I best break the news to you now before you hit your 30’s and find out the hard way. Santa doesn’t exist.

Don’t be a bystander in your life. It’s not going to be easy. You need to do the difficult things that no one else does. It won’t all come together all at once. It takes practise and determination. You don’t have to do any of the list above, make your own but if you don’t do anything you still be in the same position next year.

The time for change is now. Your Happy New Year starts now. Enjoy the holidays and prepare your productivity plan for next year. Next year is operation 20 Changes for your 20’s.

Another Year Gone

Another year has almost finished and we are about to roll into another one. Where does our time go?

What have I achieved this year:

A Job – It turns out I’m employable and I got a full time job to start my career. I have a few issues with my supervisor but hey I’m working.

Hols – Enjoyed a wild vacation. Which cost a fortune but was worth it. I needed a big break away from work. The down side to holidays is coming back to face lots of emails and a pile of paperwork.

Too Much Beer – I’ve drank too much beer and had too many binges. So much so that my liver doesn’t like me anymore. Next year I must cut back.

Fitter not fatter – This year I feel fitter than last year. I’ve been going to the gym, bike riding and clay pigeon shooting. Shooting and hunting isn’t a sport in the UK it’s more of an American thing where they kill big game and kids in class rooms.

Family Time – I spent more time with family and friends. Which is awesome and very rewarding for your soul. Devoting your time to family is important. Never forget that.

New Motor – Bought a new motor, she a beauty featuring a stereo upgrade to pump out Classic FM and Hip Hop.

What I haven’t achieved this year:

I’m still single – Although it would be nice to find a new relationship being single has given me space and time to discover myself. Failed relationships hurt, even the short lived ones but looking back the ladies in my life were unsuitable and incompatible. Whether they ditched me or I ditched them is never nice but getting out of the wrong relationship is the right thing to do. Don’t rush love. The ladies will come along again. Being single is not such a bad thing. Who needs a girlfriend when there’s pizza and porn.

The numbers never lie – I need to get smarter with my money. It’s harder to be happy without money and owing massive debt stops you experiencing life. Having extra money for fun and the future will make you happier.

Lazy Procrastinator – I’ve tolerated my laziness. I haven’t been as creative or productive as I would have liked. In areas like this blog, starting new products, training and doing stuff around the flat things haven’t come together. I need motivating. My lazy ar$e needs to get into gear.

My Feeble Finances

Although I think my job is secure and I have a little savings to cope with any minor emergency I can’t help feeling that my finances are a little fragile and feeble. Debt is putting a strain on my finances and eating away at my money.

For me it seems the only way to help get your finances back on track is to stop using credit. The goal is to strengthen your wealth by paying off debt. For me that means paying off over £65,000 in debts.

This is a big financial goal and the only way paying this off is going to happen is to repair bad spending habits and come up with a debt repayment plan. The strategy going forward will be to learn budgeting skills, cut costs and sort out my financial disorganisation.

First I’ll pay off my credit cards, then my loans and finally deal with family debts. It’s going to take some major changes and commitment but until the debt is paid off it’s harder to build any wealth because you money disappears in interest payments.

Debt weakens your financial strength and eats away your money. A solid foundation for getting richer means paying off your debts as quickly as you can. To ensure financial success you must kill your debt and bad financial habits. Doing this will maximise your income. What are your financial goals? Are you sick of all the debt you’re in?