How to have more money

Emergency cash – 5 tricks to have more cash in 1 month when you need it urgently

Posted on May 10, 2017

You want to buy the car and you need emergency cash…..

You want to go on holiday and you need cash…

You want to buy a bike and you need emergency cash…

You are loosing your job and you need emergency cash to survive a few months…

Emergency tax is the answer

What do you do? all you need is to have cash. It is not about money, it is just about cash. Remember cash is king!!! If you have it and don’t have to pay interest on having it, you will be fine.

These are five simple tricks to have more emergency cash within 1 month.

  1. Apply for a good credit card or two of them with the longest possible interest free for purchases. there are many of then available for 18 or 24 months or longer. Start using it for all shopping, this way cash will stay with you (£1000-£2000 per month of cash savings). Check out this post for more details
  2. Stop any non essential shopping, limit your expenses to food, bills, mortgage or rent (savings will depend on your life style but can easily keep £200-£1000 per month)
  3. Start cycling anywhere you can, this will save you some cash on petrol (£50)
  4. Review evere simple direct debit and close all non essential such as: gym memberships, TVs, games, amazon, anything which is non essential (it depends on your life style but easily can save £200-300 per month
  5. Identify additional source of income (work at restaurant, publishing, other way to utilise your skills (depends on your skill)

Remember, any debt or credit card must be carefully considered as you are living for money that does not belong to you. Make sure you always pay the minimum to avoid the interest. If you make a mistake you will pay charges. Your credit rating could also suffer. Make sure you have the plan to pay it off.

Financial traps: 10 most commonly accepted deadly rip offs

Posted on April 19, 2017

This is a simple list of very simple tools you can stop being ripped off. these are well known ripoffs most of the company are using and by a few actions you can save £100 or £1000.

  1. Insurance renewals

    1. Always deselect auto renewal when buying any type of insurance. 9 out of 10 it will not be cheaper
    2. If you don’t have this option ring the insurance company and ask them to do not auto renew
    3. You can always be loyal and chose your existing insurer but it is better doing it having checked if they are competitive
    4. they will always send you some kind of reminder so do not worry if you think you will forget
  2. Joining gym in January

    1. Everybody knows that after having tons of food and  drinks during Christmas you want to join the gym. Gyms knop it and you will sign up for a yearly contract at the high price. you might not even use the gym after the first month
    2. If you want to join the gym select summer time and make sure you don’t sing up for more than 3 or 6 months unless the gym offers you financial incentives
    3. If you really want to lose some weight after christmas, go for the jog or walk, eat less during January and February and keep your motivation to join the gym. Delayed satisfaction is much more motivating so when you join the gym you will be more disciplined to train.
  3. Being loyal to utility or broadband Provider

    1. always shop online for utilities and broadband every year
    2. Always check what are the best offers and haggle as much as you want
    3. You should not pay for a good broadband with phone line and TV over £40 per month
  4. Prepaid cards for energy

    1. They are sometimes 50% higher than any contract paid ion direct debit
    2. It is not that difficult to sign up for the contract
    3. Early cancellation fees for quitting contracts are very low around £30 per fuels. So signing up for a year will be much cheaper tha prepaid cards
  5. Not paying minimums bill on your credit cards

    1. Always pay your minimum credit card bill
    2. It is very expensive not to
    3. Your credit history might be affected
  6. Buying extended warranty for your appliances below £100 such as electric kettle, alarm o’clock, toaster etc.

    1. It just does not make send paying 30% of the value of the product for ‘extended insurance’ for the product which you will buy again in 2 or 3 years
    2. You have the chance to buy another type of product
    3. Nobody really knows how they work
    4. they are good for more expensive products you are likely to have for more than 3-5 years
  7. Buying car insurance from the local broker without checking online

    1. Unfortunately local brokers are less competitive
    2. It is not the rule so always check them and check online
  8. To go shopping while being hungry

    1. No comments here, if you are hungry and go grocery shopping you will buy food you don’t need
  9. Buying petrol or diesel on motorway services

    1. Food at motorway services is generally 10%-20% more expensive. This goes up at night.
    2. Buy a minimum if you have to and don’t have time and refill up to full tank when you get off the motorway.
  10. Using overdraft

    1. It is a good utility to have but don’t use it
    2. It is easy to get into the expensive small debt trap

Debt: 5 basic strategies to get out of debt

Posted on April 17, 2017

Being in debt is the reality of today’s financial system but you can be in a GOOD debt or in a BAD debt. What is the difference.

Good debt:

  • Builds your credit
  • Helps you to invest more
  • You control it
  • You have assets or resources to pay it off
  • Allows you to use financial systems benefits such as buying products you can not really afford.

Bad debt:

  • You don’t control it
  • It controls you
  • It makes you lose your credibility and makes you paying more for products and services
  • It does not allow you to access financial system benefits

So, how do you get out of the BAD debt in case you have been trapped

 

  1. Identify BAD debts. Write down all you debt (formal or informal), write how much each debt costs you per month, per year, check for which debt you have cover in asset and which is not covered. Make sure you understand what is the length of each of your liability.
    1. Once you have this list with all the details written for each of your loans, credit cards, mortgages or any other kind of debt identify the most expensive debts per month. Usually credit cards are the worst and most expensive as they keep increasing monthly or daily in some cases..
    2. Make sure that you don’t lose your assets in an uncontrolled way such as repossession. If you can not afford the property, it is better to sell it than to lose it ass you will get much more money for it.
    3. Find the financial product that will allow you to consolidate the debt for a very low cost: such as one low interest rate loan, long term credit card with 0% for purchases and transfer. If you can not afford it as your current job does not helps you, change the job as soon as possible.
  2. Have a plan. Once you understand your debt and found the product to consolidate your debt make sure that you can afford it and have the plan to pay it off. It is nothing worse to take another loan and star being behind again. If you compare your credit card intesrest of around 30% and loans interest of 4-7% you will be better off but you must pay it back. If you can not do it, take another credit card with 0% interest on Purchases and put all spending on it making sure you pay the minimum on the monthly basis. As long as you control it you can take another loan to move the outstanding balance from this credit card in the future. You will still be in a BAD debt but you will limit the damage. You plan must clearly show reduction of dept and its cost every single month. If it does not do it again.
  3. Temporarily increase control of your spending. You will have to put on hold some of your dreams such as: holidays, new car, new video game and stick to essentials for a year or two until you come out o the deadly debt trap
  4. Follow the plan. Once you have the plan, review it monthly and make sure you don’t deviate from it.
  5. Turn your BAD Debt into the GOOD debt.As long sas you pay off the loans and minimums on your credit cards you are starting to build your better credit score. This will allow you to have access to  better financial products such as lower interest rates loans, credit cards or higher credit lines. Do not apply for it too early. Every time you get rejection it adds this to your credit score lowering it again. allow one year for building the credit score and try one or two good products which you really need. Once you are approve start using more products. This will make your debt cheaper and quicker to pay off.

Once you do it enjoy the benefits of the financial system

This is just my humble opinion and it may work or not work for you. You have to be vare careful what you are doing about your debt and it is your responsibility to do the appropriate research and get all the advice you need. This post is just my opinion not the advice so please use it as the opinion. nd I am open to your comments.


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