Financial Future

I feel like I talk a lot about the things I want to do rather than making them actually happen. I’m working on this by having my 30 by 30 list to focus on but one of those items is a lot harder than just getting out and doing it:

3. Get out of (and stay out of!) debt

Although all of the debt that I have is at 0% and so isn’t actually costing me anything I’m not comfortable with the fact that if they asked me to pay it all back tomorrow I simply wouldn’t be able to. I’ve always been very savvy with money and making the most of 0% deals to actually me money rather than the banks but as of the end of July my debt total stood at £5,081.99 and I fully anticipate this being even higher this month as I just purchased a 3 month travel card for the grand total of £424! In order to get out of this situation I NEED to make a plan, a financial plan, not only for this but as a way to fund all the other fun stuff that I want to do. Luckily September also brings me new tenants for my flat so I will only have one set of bills coming out of my salary from then on.

I have 20 months before I turn 30 and I’m guessing approximately £5.5k of debt which averages out to be £275/month. £175 of this is easily achieved by the money I’ll be gaining in rent from the flat. The rest I’ll need to make up by either making some extra money on the side or reducing my spending to below my income.

Starting off slowly my first goal is to be able to save 10% of my salary each month so around £160. If I can do this by the time 2015 rolls around I’ll be saving £335 per month and the extra £60 per month can be used for the fun things like those mini breaks I’m so desperate to take. £60 per month might not sound like a lot but over the course of a year adds up to £720 which is enough to fund at least two weekend breaks somewhere in Europe!

That said I also need to pay my dad back the money he loaned me when I bought the flat. While there is no timescale on this, simply pay him as and when I can what I can, I would like to do by the time I hit 35 (80 months away) which would be pretty much 10 years after he loaned the money to me in the first place. This would involve being able to save an additional £300 per month in order to make that deadline happen – something I won’t be able to do straight away but something to strive towards for sure. I think starting small and building up is definitely the way to go rather than saying I will start saving 40% of my salary every month starting immediately.

Do you have any tips for making/saving money? I sure would love to hear them!

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