some financial tips needed

**sbakoola** · 17 June 2012, 07:28

you say you have no house but yet you have a lodger, are you just subletting ?

anyhow that £20k something debt is going to take years to pay off if your salary is £50k and you are permie where you've hit the 40% tax bracket, go contracting and learn from a good accountant how to be more tax efficient.

**Doggy Styles** · 17 June 2012, 07:33

Before the mob arrive, it looks to me like you're already taking the appropriate steps to righteousness. What sort of advice do you want?

Edit: Get rid of that CC debt pronto. It's the worst kind of debt this side of Wonga.

**OwlHoot** · 17 June 2012, 07:47

If it's any consolation, there must be millions of people your age in the same situation or worse. (I'm assuming you're fairly young.)

Maybe your best bet is to find a partner, if you don't already have one, to share the expenses, as long as they're not spendthrifts and gold diggers!

**Paddy** · 17 June 2012, 08:01

If you are a woman; get married and divorced.

If you are a man, never get married.

**Waldorf** · 17 June 2012, 08:13

Originally posted by Doggy Styles View Post

Before the mob arrive, it looks to me like you're already taking the appropriate steps to righteousness. What sort of advice do you want?

Edit: Get rid of that CC debt pronto. It's the worst kind of debt this side of Wonga.

WDSS

If you limit your spending you should be able to clear the debt quite quickly. Have you looked if you can transfer some of this debt to 0% credit card offers?

After this, start to build some capital, you will need quite a sum to get on the property ladder.

**russell** · 17 June 2012, 08:24

Originally posted by calacik View Post

Hi

here is the stuation, im on a decent permie salary ( 50K ) , but have no house, no good car, no saving, 23K utstanding debt on CC and loan,

Im single and would like to buy my own house ( stop paying rent ) upgrade my car, clear debt, get married 2-3 years down the line, build some savings

recently i have
1. brought in a lodger to help with the bills and rent
2. stopped drinking and nightlife etc
3. started expanding my skills so i can go contracting 6 month down the line ( increase my income)

im younger and less experienced than most of you, I appreciate your advice and thanks for sharing your life experience.

Go into student mode, reduce all spending to minimal level and put everything towards your CC debt, might take you a year or two, then keep doing the same and save 20-30k for a deposit. Buy a flat in a area were prices are distressed, then go contracting and pump every tax avoiding buck into the mortgage, paying it off in 5 years, do the same again with another flat, meanwhile learn how to day trade and make a few million, then start a business and sell it to Facebook for 1 billion, now start a hedge fund and turn the billion into 20-30 billion.

HTH

**EternalOptimist** · 17 June 2012, 09:43

I had a similar question when I was about your age.

I built a spreadsheet and put a few scenarios on it, and worked out where I would be when I was 45.

scenario 1. get a morgage, stay permie.

scenario 2. get a mortgage go contracting.

scenario 3. stay in rented, go contracting.

scenario 4. stay in rented, stay permie.

it goes without saying that whatever you do, you must keep costs down and maximise your income. Pay off all debts asap, and never forget the biggest debt is a mortgage.

I went for number three, and me and the family lived in the worst rented sh!t hole imaginable and I saved , and saved. Bought the first house I could afford then washed and rinsed till I ended up in a decent place. It helped that I dont have expensive tastes in food or cars.

Once you get it written down, you can see the enormity of the task, the answer will suggest itself.

**Bunk** · 17 June 2012, 09:58

Originally posted by calacik View Post

Im single and would like to buy my own house ( stop paying rent ) upgrade my car, clear debt, get married 2-3 years down the line, build some savings

I'd prioritise those things first. I would aim to do it in this order - clear debt, build some savings, buy my own house ( stop paying rent ), upgrade my car

You say you're single so leave marriage until the situation arises, but I'd definitely try to accomplish the first two on the list before shelling out on an engagement ring and a wedding.

**mudskipper** · 17 June 2012, 13:54

Originally posted by Bunk View Post

I'd prioritise those things first. I would aim to do it in this order - clear debt, build some savings, buy my own house ( stop paying rent ), upgrade my car

You say you're single so leave marriage until the situation arises, but I'd definitely try to accomplish the first two on the list before shelling out on an engagement ring and a wedding.

Unless your spouse is stinking rich and 93.

some financial tips needed