The start of the year is great to evaluate your life and decide on the changes that you want to make this year. I spoke about this in yesterdays post ‘my personal finance goals for 2018‘. I spoke about my monthly budget and how I plan on utilizing it so that I can save money and get my finances in order.
I have a couple of things that I am going to change within my budget so that I can save more money and are due for a little reshuffle. Some of these are going to take a little time to change and I’m hoping to have them done by June so that I can really get my saving on for the rest of the year.
Changing my car
I’ve been talking about doing this for a little while now. About two years ago I got a call from the dealership that I had bought my car from saying ‘oh did you know that you could have a brand new car for the same amount you’re paying for the car you have now?’ and I jumped at the deal.
By doing this I swapped from paying a car on finance over four years to a PCP deal. This meant I got a brand new car and I essentially lease it for 3-4 years and then either hand the car back at the end and start a new agreement or buy the car with the outstanding balance. I wont be able to afford the outstanding balance, I think its close to £15,000 and my car payment is £300 a month. I chose a car that was my dream car (a convertible mini cooper) but I don’t actually drive that often. My almost three year old car has only 8,000 miles on it!
I’ve loved having my little car the past couple years but I must admit I wish I had kept my old one as it would have been paid off by now and I wouldn’t have to worry about a monthly car payment! PCP is a good deal if you have the budget for it but right now I’d rather focus on saving money for a house deposit and get rid of my credit cards. I’m going to hand in my car once it has had its MOT in April and put a deposit down on a cheaper car on finance with a monthly payment of around £150 meaning that I’ll save about £150 a month – I’ll put this directly into my savings and once I have my credit cards paid off I’m going to try and pay the car off early.
Switch to sim-only
I’ve had my phone contract nearly two years and its due for renewal soon. Within the two years the price of my contract has went up from £55 to £71. I have a high data allowance and unlimited calls and texts and I like having the peace of mind that I never have to pay for extra as I never go over my limits but my contract is still so high. I like the phone that I currently have and its in perfect condition so I’m going to swap to sim only when my contract is finished so that I am paying for my plan and not a new phone which will hopefully save me some money.
Clearing out my closet
Even though I do sell some things on eBay I am a clothes hoarder. In the past I’ve generally just sold things on eBay when I know that I’m going to be a little tight with money that month. I have wedding outfits from three years ago that I’m never going to wear (or probably fit into) again. I’m going to have a purge this weekend of everything that I know I don’t need no matter how much it pains me to part with some dresses, I’ll still have the memories of wearing them without them taking up space in my cupboard.
What life admin are you taking part in 2019?