Tag: loans

Getting Back On Track With Your Finances

My Thoughts On Starting To Save Again

Collaborative Post

For me, looking after my money has become increasingly important over the last few years. As I reach middle age I want to be less reliant on my full time job and stable enough to go on more holidays. My dream is to work part time and have side hustles and investments to see me through.

Lots of people have been struggling with their finances since Covid, especially as the cost of living crisis has gripped the UK and the rest of the world. So financial planning has become more of a necessity than a choice:

This blog post explores some of the considerations to make when trying to get your money in order. I am in no way an expert on this but have learned the hard way about the importance of getting my money organised.

How To Get Your Money Consolidated

I suppose one of the biggest things I have learned in the last ten years is the importance of shopping around for finance and utilities. Sometimes consolidating debts with an all encompassing loan, for example, is a sensible way of getting your debts together and moving forward positively.

When I had several credit cards, my solution ended up being getting a loan which paid them off. Just paying interest on one loan which was spread affordably over six years made more sense than three cards all with variable interest rates and purchase fees.

One thing that can help you to get an idea of what sort of loan is practical for you is using a loan calculator. Utilising this to work out how to spread payments with the least amount of interest can be beneficial.

You have to do it on your terms.

Any loan is a serious obligation but if used carefully might be a long term solution to a current quagmire of financial burdens.

From the calculator.me website

Saving For The Future

Now as well as pinching those interest charges by consolidating, it is always a good idea to find ways to save money. I have mentioned some strategies for this before in my post – Saving Money In 2023. It is something I am passionate about as it promotes independence and takes away reliance on income sources.

If you save well, then money no longer needs to be hand to mouth.

You can work out how effective small savings can be by using this Savings calculator. People often dismiss putting away a little bit of cash each week but it can be a powerful way of saving for the future.

I have taken to saving money every time I shop, using the suggestions on my banking app. If I spend £3.89 on my card, the app will suggest that I round up to the next pound and give the difference to my savings. This is a brilliant way of gathering savings, bit by bit.

In A Nutshell

Money is something that has given me a lot of stress in the past. In fact, during my twenties I was awful at managing my finances and I didn’t generate any savings. These days I am more careful with every penny and use money calculators to help me work out the best way to save and consolidate. Looking after your finances is important as it leads to stability and reduces anxiety about how the next bill will get covered.

Have you ever thought about putting your debts all into one pot?

Are you saving on a daily basis?

Thank you for taking the time to consider my money saving suggestions. Drop me a comment with your thoughts on this subject. Please also consider following my little blog for similar future content.

Buying A Car In Tough Times

Collaborative post(AD) – All opinions and comments related to buying a car are my own.

I am looking for a new car because mine is getting old and starting to cost more to keep going. Right now I am awaiting my annual service and expect a hefty bill as I know my suspension is very clunky and my air-con needs cleaning and refilling. During an energy crisis, we are all having to make difficult decisions about where to put our hard earned cash. Buying a car may be a better option than constantly fixing an older model.

Where to start?

Now I never said it had to be a new car! There are two popular options when it comes to getting a new auto. Some take loan cars which they can swap in after three years. Many prefer to buy a second hand car, using finance, on reasonable terms. This article on Bloomberg highlights used cars as the favoured option for thousands of drivers. Who can blame them?

My last car was a Ford and had been used by a previous owner. It gave me six years of stability whereas my previous ‘new bought’ cars gave me no end of problems with problematic gear boxes and struggling batteries. There is a lot to be said for second hand cars which have been lovingly cared for.

For my US readers…

Trying to work out how much you can afford to spend on a car is tricky. There are a lot of factors to take into account and you need to make sure you are not stretching your finances too far. This is especially important right now, during an economic crisis where energy prices are surging.

Also, when thinking about getting a new car, you have to have unexpected expenses in the back of your head. Let’s face it, you can drive it off the forecourt and soon find yourself inadvertently driving over a nail or having to swerve to avoid a chicken crossing the road.

Unforeseen costs include:

– tyre repairs or new tyres

– broken exhausts

– minor repairs or touch ups to paint work

– oil leeks

– suspension problems

– battery issues

– electrical faults

Now I have come across a really good website which is used to calculate how much you can afford to spend on a new car. It provides a really easy-to-use calculator to estimate car payments where you can input the price of car you want or work backwards by selecting the monthly amount you are prepared to pay for your loan.

Photo from my iPad.

I played around with various US sites and can honestly say this is one of the most flexible sites with so many options. You can soon hone in on the aspects you need to tightly control, such as down payment size or monthly payments upper limit.

There is also a fun arcade where you can play games related to driving such as the Cars Lightening Speed game which I found fun and unexpected on a calculator website. I love refreshing touches like this.

For my UK readers:

Working out affordability in the UK, I have tried many websites and actually found a bank calculator most useful. After playing around with a few, I can truly recommend Halifax car payment calculator which is very user friendly and organised. Although it leans towards that particular bank, it is really clear, easy to play around with and straight forward.

Summary

My car is costing me a lot all of a sudden, due to some really badly maintained roads near me, which are ruining my suspension, amongst other things. We are all on the same boat when it comes to financial demands caused by international energy shortages and rising inflation.

I am no financial expert but can truly recommend using a good online calculator to work out your car affordability. This is the best way to begin your journey to finding a new car.