Category: Personal Finance Basics


November 2011 marked a one year anniversary of my first steps into the investing world. In my final two years at university I copiously researched investing (risk tolerance, where to invest effectively for tax purposes etc) and finally decided to take the plunge three months into my first job out of university. November 2011 has also marked some important steps in progressing my finances. As I’ve mentioned in previous articles – personal finance management does not stop. You must continue to stay on top of your situation and ensure your money is making money for you whilst you sleep. Complacency and personal finance should never be said in the same sentence.

What are the three steps I’ve taken this month?

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This weekend passed I was looking through my expenses of the last few months. Since I moved out of my sister’s place and back into Central London I knew that my expenses would have increased. I was careful at the beginning of the year to sort out my budget which takes on the 70/20/10 structure. I’ve never been great at splitting my money into more than essentials, non-essentials and savings so this budget always worked best for me. View full article »

The Money Diaries @ I Will Teach You To Be Rich: Based on New York Magazine’s Sex Diaries. A collection of stories from real people about their spending habits over seven days, anonymized and posted here.

When renting is smarter than buying @ Get Rich Slowly: This a topic that many people feel strongly about. Myths such as ‘you’re throwing money away’ tend to transpire when the discussion gets underway. Sometimes it can make more sense to rent.

Extreme Early Retirement in Practice @ Get Rich Slowly: I’m always keen for young people and graduates especially to take their pension and retirement seriously. If you’re not contributing to your pension yet when do you expect to start? This article will help to put things into perspective.

Why We Save @ The Simple Dollar: The simplicity of everything we do. Trent’s 5 year old is saving for a Nintendo DS. If a 5 year old can save surely anyone can?

I have a diverse group of friends. What I love about having a diverse group is that I get to discuss a variety of topics and we have some great debates. One topic that comes up frequently in conversation is Money. This is a topic that I naturally enjoy discussing because it’s a hot topic but let’s not forget that it is still a table topic taboo in British culture. We’re all feeling the squeeze with inflation rising to 5%, pay freezes and the dream of buying a house becoming ever more distant. View full article »

The riots across the UK have dominated the headlines for most of the past week as politicians and the general public alike stuggle to comprehend the true cause of the violence. I was disappointed as I watched footage of my beloved London being destroyed by people as young as 11. As the rioting took a hold of the headlines I watched more and more footage of reporters asking those that were looting why they were committing such acts. One girl proudly says “We’re getting our taxes back innit”. This girl could not have been any older than 18 so it’s questionable how much ‘tax’ she had a ‘right to claim back’. On other footage hooded youths were being asked why this was happening and they explained that due to budget cuts they had lost access to youth and sports clubs which we all know are essential to keep young people from gang culture. It’s sad that young people have had many of their entertainment facilities removed. There was also discussion that young people couldn’t find work and that other Londoners (those in employment)  are ‘rich’ whereas they’re poor. View full article »

This week concludes the series ‘Levels of Personal Finance’. Over the past month I have gone through what I deem to be the levels that you can go through or aim for whilst you make the transition from ignorance to complete control over your finances. View full article »

Week 4 brings you level 4 of Personal Finance: The Advanced Level. The person who has moved into the Advanced Level has moved to the upper half of the Personal Finance scale and is close to reaching a state where minimal effort is needed. If you have reached this level this will be demonstrated by a healthy emergency fund (3-6 months living expenses dependent on circumstances), you have a long term savings plan and you’ve started to familiarise yourself with financial jargon. Most of this will come from preliminary research into investing in stocks and shares. View full article »

This is part II of the Levels of Finance which discusses the steps that I took to get to where I am today. Last week I wrote about the realisation and the start of researching into better money habits. The Learner builds on what they’ve learnt as a Fresher from their initial research. View full article »

Over the past few weeks I’ve been reflecting on my journey through personal finance. It started when I googled “save money” back in 2003 when I was 15. Since then a lot of things have changed. My mindset is geared towards maximising the income I receive from my savings and I’m keen as always to find a good deal.  View full article »

I have a document which has a list of all of my assets. These are broken down into cash and stocks & shares in addition to my pension. In this document I also track my student loan repayments. I also keep a bullet-pointed list of anything coming up in the next month/few months.

What I find incredibly useful in this document is that I have a snapshot of how my finances look. I can open up this document and instantly know what I need to expect in the next month and also what monthly goals I’ve achieved. View full article »

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