Money Chat: My Current Financial Goals
Around this time last year, I shared a few of the financial goals I was putting into action. Since some time has passed, I thought I’d give you a little update on my finances. Spoiler alert: it didn’t quite go to plan. Money isn’t as tight as it was then, which is great, but I’m not where I’d like to be. Don’t worry though, I’m working things out. My husband and I have been going over things and well, hope is not lost! I’ve decided to break down the areas of my finances that I’m working on at the moment…
CLEARING CREDIT CARD DEBT…
I’ve never had an outrageous amount of credit card debt (my limit is £1500), but most of the time, that’s been maxed out. I pay the minimum, and then inevitably I use it… This has been one good thing about being in lockdown. Because I was not working, and not spending so much excess money, I’ve been able to pay off a huge chunk of my credit card. It’s been pretty nice to have that freedom to be honest! At the time of writing, I have about £200 to pay off, which I plan on paying off as soon as an overdue invoice comes in… Once it’s gone, I’ll be able to move on to other goals!
SAVING UP FOR A FEW PURCHASES
There’s a few things I want to save up for that I’ve been putting off because I’ve not had the money. I want to buy myself a new camera and lenses, as well as a bed frame from West Elm that I swear I have dreams about. There’s a few other small things I have my eye on as well, like a new food processor and a hand mixer. Once my credit cards are paid off, saving up for these feels like an easy task. Once I’ve made these purchases, it’s time to move on to the next goal!
MANAGING FREELANCE INCOME
I have been doing a lot more freelance work in the last month or so, which is amazing, really. It also means that I can have an additional income stream. I think the impulse to just spend it is definitely there, so I’m trying to work out a way to have my cake and eat it too. Maybe I say that 85% of the fee for each freelance job goes into my savings account, and 15% I’m allowed to spend. I haven’t worked it out yet but since this is all new, its something I need to think about!
THE EMERGENCY FUND
You ever panic about something going wrong and your first thought is, ‘How the hell am I going to pay for that?!’ As someone who has regularly lived paycheck to paycheck, it’s a very real concern. So in an effort to try and allay those fears, I want to make sure I’m saving. It doesn’t have to be a lot (though saving 85% of any freelance income would help) but any little bit would just be there as a cushion, ya know? What if we need to have work done on the flat? What if one of us has an accident? It would be nice to just make sure that safety net is there, and I don’t have to worry about it.
It still feels a little vulgar to talk about money; there’s this weird taboo around it, isn’t there? Our finances are a topic my husband and I have been discussing a lot recently, as moving forward we both want to be more financially responsible. It feels nice to sit down and come up with a game plan, but I also recognize that not everyone is going to be in the same position.
A few years ago, I barely made enough to cover my bills, and it was a real struggle. I’ve had a few pay raises since then, so I’m a bit more comfortable now. So there’s no time like the present to get my finances in order, is there?
I really enjoyed reading this and l like that you are so open about talking about money as not many people are comfortable talking about this subject. It sounds as though you are on the right track and I do hope you manage to get the bed, it does look good?
Thanks! Yeah it is a topic that most people don’t seem to want to talk about! I feel like I am on the right track at the moment, which is great!
I’ve been trying to maximise my budgeting but then cafes and restaurants opened and I went a lil crazy on eating out.
I’ve got a credit card but always pay it all off each month as I don’t want to be paying any interest. It’s what I use as my spending money to get air miles and so far I’ve been responsible with it m, even with a £3k limit ?
And for a buffer I 100% agree. I like to keep 3 months rent saved at all times in case something happens and I’m not getting an income. It’s enough to keep me afloat and I make sure to always have that saved!
I know what you mean! I’ve been treating myself more in lockdown, but overall I think my spending is down… good for you for paying off your credit card each month! I’m planning on just keeping it for emergencies once I’ve paid it off, and focus on spending! My limit was only £1500, but I had it basically maxed out for so long, so it feels good to have it down to zero!
I love this post! I wish more people (bloggers especially) talked about money. I have to send out my first invoice for freelance work sometime this month, I think, and I’m scared! Haha.
Make sure you put your payment terms and late payment terms in your invoice! Don’t be scared! You’ll do great!
Love this post! It’s so great to see someone talking about money so openly. Me and my husband are definitely trying to get into better financial habits (although we’re both doing masters part-time which makes everything a little tighter!) and it’s good to see what others are doing. Well done on paying off the credit card!
Yeah that is tough, but good for both of you for doing the Masters! Still though, being open about it will definitely mean no nasty surprises later down the line, and you can work on it together too, which is nice!
I don’t know if you have the option, but my credit card allows me to accumulate points that I can exchange for whatever type of rewards (I know friends and family who have exchanged their points for gift card and bought a smeg blender, a Kitchenaid mixer or a Dyson fan…). I use my credit card as a debit card, paying it in full every month, so I don’t accumulate debt and get a small reward.
That’s a good tip! I don’t think my credit card has that, and I wasn’t too good at paying it off in full each month, so I think I personally would avoid something like that, but it might be a great option for someone else! Thanks for sharing!
Thank you so much for this, it’s motivated me to think proactively about mine and my partner’s spending! X
It’s something you definitely have to be able to talk about as it will affect you both! We’ve always been pretty open about things, so we know where the other one stands, which is good I think! It means we can be more realistic when we talk about future stuff, like buying a house or something!
I very much appreciate your openness when it comes to talking about money! I think things would be so much easier if we all felt comfortable discussing our ins and outgoings and how we manage our finances – as it affects us all so gravely. There have been times when it’s all I’ve thought about! I’m so with you on saving up and having an emergency fund if your budget allows – it’s not the most exciting thing, but being able to put your hands on that thing you’ve been waiting to buy makes it all the more fulfilling, and having that cushion is tremendous for peace of mind xxx