In the UK, the new financial year has started. And I’m making some New Year’s Resolutions.
Over the the last few years I’ve been working off my (rather significant) debt. I made the promise at the beginning of 2017 that this would be the year I finally nailed it, and at the he end of February I finally got out of my overdraft (yey – that was a very long time coming!).
I grew up poor, and in never really got a handle on finances when I was in my twenties, and upon hitting my early 30s realised I really ought to finally sort it all out. Up until that point, I often ignored money because it scared me, and didn’t do anything much, because genuinely didn’t understand that I really had the option to be doing something sensible, with the money I had. It was all alien.
But sitting with a bank account of just over £0 is really not where I want to be. I want to start actually putting some money away, I want to somehow finding a way to the point where I no longer have to work to live, and I want to be able to travel. Put simply – I want to gain my financial freedom. I adore travel and exploring the world, but am not able to do this with my work commitments.
The process of getting from here to, well anywhere financially, will be hard. My financial habits are terrible – I’ve spent most of the last two decades terrified of looking in my bank account and only knowing how much I had in it when I hit my over-draft and couldn’t withdraw any more. I am only very slightly better now after the last few years of trying to pay off my debt.
I have various pension pots none of which have much money in. I have no idea what the interest rate is, how one goes about investing, what an ISA is… and there is going to be way more that I don’t know I don’t know.
My New Year’s resolutions? They are nothing big and flash – just enough to get me started, I hope. The aim is to start moving in the right direction, and hope I can pick up some good habits, and get them to stick.
- Get a savings account that I put money into monthly
- (A) Investigate different investment options
- Save £3,000 by the end of the year.
- Earn £500 in money outside my day-to-day job.
(B) Make an investment (however small…)
Are these the right ones? They seem a good step to me, but as a complete novice in this space, I’d love to hear what others think about my suggestions. Please leave a comment below, send a tweet, or drop me an email!