How I Learnt to Manage My Finances After Moving Out of Home?
For all the college graduates, the world of the financially independent may seem too right to be accurate, and you will want to experience everything that it can offer. I did the same, read to find out how my story turned out.
All my life, I have lived with my parents. Let me tell you that I am only 22 before you start judging me and my life decisions.
I went to school at the University of Liverpool, which was not far from my home, so I stayed with my parents throughout the four years of college.
I was able to secure a well-paying job before I even graduated and the right part, the job was in London, and I finally got the opportunity to be my person and live on my own.
I was now a self-earning, independent woman who would be living in London on my own.
The Financial Independence
Moving to London was nothing short of a dream for me. And I lived the initial few months in the city as if they were from a dream, a very lavish dream at that.
London is the most beautiful city in the world for me, Liverpool is a close second, and I wanted to see the whole of its majesty through my home. And that kind of view put a dent in my savings, a big dent, but it was worth it.
A new city meant, a new beginning and that deemed an entirely new wardrobe, so I went shopping.
I even bought a lot of decorative items for my new flat and a couple of electronics as well, a humidifier for a must-have for me.
All of these purchases almost emptied my saving. However, that was fine. I would get a hefty paycheck in about 30 days.
The working life kept me busy the first month, and frankly, it took me that amount of time to make myself accustomed to the new environment and make new friends.
Once I had done that, it somehow awakened the spendthrift in me; more so than the initial move.
Now that I look back at my earliest financial decisions, I want to hit myself with something. I spent money as if I had millions to spend.
I bought an £880 Hermes Patchwork Horse Shawl; it is a scarf with a horse printed on it. it sure feels luxurious, but 880 pounds? And I have worn it once.
At that point, I had a phone that was hardly 6 months old, and yet I bought an iPhone, the expensive 11 Max Pro, which was not in my budget either.
Then after I continued to empty my entire salaries for six months, I got the brilliant idea of buying a car. So, now I am a proud owner of the 2015 Chevrolet Cruze.
I could list ten stupid financial decisions that have made my bank balance look as tragic as tragic can be.
My salary could not keep up with my expenses, I started jumping installments, and the result was bad credit, an enormous credit card debt, and an uncertain future.
The sad part is when I wanted to buy a cooktop, which I needed because I could not tolerate eating take out anymore, I could not buy it. My credit card would not work.
The Financial Learning
I did buy the cooktop, after applying for Very Bad Credit Loans with No Guarantor and No Broker. Despite getting the loan quickly enough, the incident made me realise what a fool I had been.
Let me also tell you that I was only a fool financially. I was brilliant at work. I got an appraisal within the first three months of working and another one at six months.
I was making enough money to support myself and even save some, but the problem was up until that moment I had not spent the money properly.
I had to do something about it.
So, I took to the internet and read all the financial advice about managing personal funds I could find. And at the crux of it was the elimination of extravagant spending. No more Hermes scarves for me from now on.
There was also one more thing I learnt from the internet Finance Gurus, and that was the fact that credit cards can be monstrous for your bank balance. So, I got myself one of the doorstep loans and paid off some to lower the interest rate somewhat.
I only go out once a week, because cooking your meals is much-much cheaper.
I do not buy anything that I know do not need or would not be useful after a month.
I have moved out of my extremely expensive flat into a studio to save on rent. The difference between two is equal to two weeks grocery, maybe three even.
I have started saving a little every month. I would start saving more once the debt is cleared off.
I feel that since I had not managed my money ever before in my life, I made one financial mistake after the other. At least, now, I am on track to revive my finances and strengthen my personal finance skills.