I read somewhere that monthly mortgage payments should ideally be less than 1/3 of monthly income.
Here are some categories for managing personal finances (I like putting things into categories) :
My wife and I made an offer on a house this week. The question we faced: how much to offer?
The Alliance & Leicester did it.
Yesterday evening, I was talking with friends about money. Dan was kind enough to give me a tip that he used to avoid credit card debt when he was a student: when he didn’t want to use his credit card, he used to freeze it.
You know those plastic containers that Chinese Takeaways come in? He used to put his card in one of those, fill it with water, and put it in the freezer!
Whenevre he was tempted to use the card, he had to go to all the trouble of thawing it out. Unless he really felt that the spend was legitimate, the bother was just not worth it.
Back in April I started reading Martin Lewis’ book about personal finances: “The Money Diet“. The is aimed at helping ordinary people manage their finances more effectively: it is essentially about the ways in which ordinary people can save money. A lot of the advice in this book is geared towards saving money without sacrificing lifestyle, although there is plenty of advice for those who need to make more radical changes.
£85 (approx) switching to a cheaper breakdown service, AutoAid (Feb 2008).
£120 (£10 / month) approx interest on current account following switch (Aug 2007).
£3412.98 as a result of a job-change (July 2007).
£93 cancelled direct debits for unused services (April 2007).
£30 cheque for keeping M:Metrics market research software on my Smartphone (Feb 2008).
£38 on a smart-casual jacket, M&S January sale (January 2008).
£27.49 on jacket, EWM January sale (January 2008).
£10 total discount on 4 turtle-neck shirts, BOGOHP in EWM January sale (January 2008).
£22 on trowsers, M&S January sale (January 2008).
£0.50 on “grommit” shortbread, by buying a broken biscuit rather than a perfect one (January 2008).
£15 postal order for installing M:Metrics market research software on my Smartphone (October 2007).
£2.75 on fuel at Tesco by using a voucher (October 2007).
£30 bank changes avoided by promptly repaying money into old current account when I accidentally overdrew (September 2007).
£50 cash for changing current accounts (September 2007).
£10 compensation from Alliance and Leicester when they failed to transfer my direct debits to my new current account (July 2007).
£4.25 refund on a meal (June 2007).
£12.40 (20%) off a Littlewoods Direct order: Using a voucher (June 2007). [Edit: the voucher was not honoured by Littlewoods]
£367.86 Endowment mis-selling compensation from Prudential (May 2007).
£162 MEAF reclaim against Abbey (May 2007).
Visual Studio 2008 Standard Edition worth about £200 (April 2008): Free gift at Microsoft product launch event.
Free Thorntons Easter Egg: Promotional Offer (March 2008).
Free small bag jelly beans (Yum, yum!): Promotional offer (Feb 2008)
One free banana (Yum!) : Fairtrade promotional stand (Feb 2008)
Signed up for Quidco (December 2007).
12 free pots of playdough: special offer at ToysRUs (December 2007)
A free Pentel marker : For filling in a freepost enquiry form for a service I’ll never use (July 2007)
A free Financial Review : Offered by our bank, Alliance & Leicester, when we opened a current account. There was a sales pitch, but it was low-key and easily dodged. The adverser was genuinely helpful (June 2007)
Free Braodband : Switching from BT to TalkTalk gives us free broadband for the same monthly spend (May 2007)
Free Sausage and Bean Bake (Yum, Yum!) : Voucher in local paper (May 2007)
Free Wireless ADSL Modem: Asked my Father if I could have the one he was not using. (May 2007).
Borrowed The Money Diet from the library (April 2007).
Started tracking spending in Microsoft Money (March 2007).