Archives for posts with tag: Money

Don’t get yourself buried under a mountain of debt; learn how to prevent an avalanche and accomplish your financial goals.

The average personal debt in the UK is £9,731.

This means that as a whole, the country owes an estimated £55 billion, not including mortgages. A recent report from the Commons public accounts committee says that one in ten people in the UK are struggling to manage their debts.

When the average interest rate on credit card debt runs up into the mid to high teens at any given point, having this much debt is an incredible financial burden. It is often a struggle to pay the interest every month let alone pay down the principal. How you can make smart decisions about debt so that it does not get out of your control?

Know the Difference Between Good and Bad Debt

There are a few times in life when it is ok to get into debt, such as when you are buying investments which will grow in value. For example, taking out a mortgage to buy a house can be a good decision because you will be able to live in the house and it will increase in value over the long term.

Going into debt to buy a car is a bad idea because cars lose nearly half of their value as soon as they take their first spin around the block. If you try to sell your car a few years later, you will never get as much money as you paid for it if you bought it new.

Don’t Get Into Debt on Expendables

It is foolish to rely on credit card debt to pay for things like meals, holidays and other things which you will consume right away, unless you plan to pay your bill in the next month or so. You will owe interest on these items and you won’t even have an asset to show for it. Only spend cash on these things, and only if you have money left over from your paycheque. If you can’t afford them, don’t buy them.

Prioritize Your Debts

If you have already gotten yourself into debt, get out as quickly as you can! One of the best strategies is to start paying off your highest interest loans first, because those are the ones which are costing you the most. Once you get rid of your credit card loans with high interest you will be able to focus on your lower interest loans next.

With the exception of good debt for investments such as taking out a mortgage to buy a reasonable priced house that you can comfortably afford, going into debt for most expenditure is a bad idea. Save your money and buy things when you can afford them instead to avoid letting your debt get out of control.

However… a nice weekend out can always be a good plan and no need to splash the cash. The London Coffee Festival 2012 is taking place last weekend of April (27th to 29th – Old Truman Brewery – London). Various activities during these 3 days. Tickets are available in advance or on the door.

Coffee and music do mix well!

…This year, the Hyde Park zone of the festival will play host to some of the best acoustics talent the London music scene has to offer…

For instance Richard James a singer/song writer from Devon UK currently based in south west London, will be playing and entertaining the caffeine lovers.

…Richard has been showcasing his music at venues such as The Embassy Mayfair, Freedom Bar Soho, The Regal Room Hammersmith, The Half-Moon Putney, London and Oceana Night-Club Birmingham…

A good plan afterall…and it is in the E1 district – Shoreditch becoming the place where everything underground is happening.

Overspending when going out can lead to silly debts. A good few hours between friends, tasting several coffees and experimenting either with a syphon or a percolator can be more fun than getting drunk and buying bad take-aways.

How can you change your banking habits so that they are easier on the environment?

If you are worried about the impact that your banking practices are having on the environment, there are many ways to improve the way that you manage your money.

Many banks are offering options which are kinder to the environment so that you can make your banking greener. These financial institutions are building more efficient branches, making their operational procedures more energy efficient, and screening their lending in environmentally sensitive industries. Some banks are even supporting eco-friendly groups and raising money for local environmental charities.

These eco-banks are also offering green ways for you to manage your money, such as:

Online Banking

Switching to online banking can be one of the best moves that you make to reduce the environmental impact of your banking. Think of how many bank statements, receipts, and other paper waste which is created by banking the old-fashioned way.

By using online banking and setting your options to view your bank statements online or by email, you can reduce your carbon footprint and save a few trees.

Green Mortgages

Some banks will offer the option of a Green Mortgage, which will allow home buyers to add an additional 15% of the price of the house onto the loan for eco-friendly upgrades such as solar panels, energy efficient windows, and more. It might seem like a more expensive option, but once these energy-saving add-ons start working they will save you enough money in your utility bills over time to make the higher cost worth it.

Green Credit Cards

This type of credit card works by allowing cardholders to earn reward points, and then redeem them in the form on contributions to their favourite ecological charity. This means that every time you spend money, you could also be giving back to a charity which protects the environment. If all credit card users started to use these types of green credit cards, imagine how much could be raised for eco-charities over the year!

These are just a few of the eco-friendly options that banks are offering to their customers. They might not seem like they would make a huge difference individually, but if every banking customer switched over there would be significant impact.

If you are interested in making your banking experience greener, talk to your bank about what they have to offer.

If you find that your particular banking institution doesn’t hold the environment as a priority or offer any green banking initiatives, perhaps it’s time to switch bank account to one who cares for our beautiful planet.

Same things goes with coffee: recycling the beans used to make espresso and other hot drinks to gardeners for their allotments. Natural fertilizers as compost can only be a good thing for the earth and our planet.

It has been said that:

Saving a small amount of money regularly from when you start work will leave you better off than saving a bigger amount in later life.

Saving is not wasting – it earns interest for the old days. This is how savings accounts work!

The lump sum grows from interest being added every year or every month.

The example shows that for Dave who left it rather late, despite of saving the same amount (£48,000) but during a shorter period, the interest rate is then proportional.

But it is worth remembering that pensions usually depend on the success of investments which, unlike savings, do not guarantee a set level of interest.