tag:blogger.com,1999:blog-4942522681264332044.post5434036297914447992..comments2023-03-30T10:05:13.911+01:00Comments on Living the simple life I want: Need to make some financial decisionsMoonwaveshttp://www.blogger.com/profile/16018956740090192993noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4942522681264332044.post-19460115382151363382011-03-16T11:05:29.247+00:002011-03-16T11:05:29.247+00:00Well high fives to you for getting this far. Seem...Well high fives to you for getting this far. Seems punishing yourself with the whole interest thing isn't the best way to get it paid off quickly, and if it's not, why not look into the loan? Less interest is always a good thing. I'd say hey, you made some mistakes in the past, but don't let them bring you down in your plans for the future and the way you want to handle your money ideally. Good luck!Nikki (www.bookpunks.com)https://www.blogger.com/profile/03930429409262902365noreply@blogger.comtag:blogger.com,1999:blog-4942522681264332044.post-35283483339341740402011-03-09T11:46:56.956+00:002011-03-09T11:46:56.956+00:00I was going to comment yesterday but then my serve...I was going to comment yesterday but then my server went down for maintenance so here I am again.<br />I've been heavily in debt until recently (many times your amount!). The biggest pain, and the thing which gets you into more debt, is the interest. Lucky for you the interest rates are lower now than they were for me for many years, but I struggled and rejigged loans and consolidated like mad just to get the lowest interest rates I could. I even at one stage upgraded my bank account to the highest (most expensive) option because the interest rates on loans were lower and I saved more than it cost in extra fees. I don't think that would work now though, but you get the point I'm sure. Avoid paying high interest rates, switch to 0% interest rate deals by changing credit card providers, that sort of thing.<br />Me? I'm debt-free now, but have been out of work for 5 years. Moving to a remote island wasn't good for my employment prospects, but it means there isn't much to spend my money on!Albedohttps://www.blogger.com/profile/04093271297403073329noreply@blogger.comtag:blogger.com,1999:blog-4942522681264332044.post-67094631227126965332011-03-08T20:05:44.081+00:002011-03-08T20:05:44.081+00:00What it actually says is something like "Sie ...What it actually says is something like "Sie sind verpflichtet ihre ganze Arbeitskraft [company] zu widmen" (but with better grammer, too lazy to go and look it up now). I think it's a fairly standard clause but I've asked around and it seems to be fairly strictly adhered to. Of course, it's really intended for the professionals who might otherwise end up working chargeable hours for someone else but they apply the same rules to everyone. My local rewe supermarket recently started to open until midnight and I was very tempted to try on get work there for that late shift a couple of nights a week, which is why I had looked into it. That would have suited pretty well.Moonwaveshttps://www.blogger.com/profile/16018956740090192993noreply@blogger.comtag:blogger.com,1999:blog-4942522681264332044.post-25104504126614836182011-03-07T22:30:40.268+00:002011-03-07T22:30:40.268+00:00Just another idea...does your contract preclude ca...Just another idea...does your contract preclude casual work, such as making a few euros babysitting or occasional English tutoring? I had done one of the free online classified sites and there were plenty of responses from people who wanted 'English conversation with a native', such as they were going to the US on holiday, etc. and wanted to build up some confidence in practicing rather than via formal lessons. <br /><br />Might help to be able to squeeze a little more into the budget--in addition to Stephanie's suggesitons.heather in europehttps://www.blogger.com/profile/06410006235787175537noreply@blogger.comtag:blogger.com,1999:blog-4942522681264332044.post-60925682331524140162011-03-07T16:42:38.202+00:002011-03-07T16:42:38.202+00:00I've heard of Dave Ramsey and use some of the ...I've heard of Dave Ramsey and use some of the techniques he promotes, although mostly because I've come up with them myself or heard other friends or bloggers talking about them - haven't yet actually read any of his books.<br /><br />I do have a budget every month, use mostly cash (much easier since moving to Germany I have to say) and try to make sure that not only am I taking care of what needs to be paid immediately (rent, pension, bus ticket etc.) but also putting a bit aside to cover less regular/annual expenses (insurances etc.). Whatever is left over after all that is divided by the number of weeks in the month and that's my food/everything else budget. If I'm particularly stuck, the annual expenses fund essentially has to function as my emergency fund so that bills are paid on time although mostly I manage to keep enough in there to cover what's coming up (for example, at the moment there is only 30 euro in there but most of my annual expenses fall due in August, September and January so that's to be expected and it will get built back up by next August).<br /><br />At the moment though, because I had extra dental bills this month as well as having been away (on a choir event that I booked nearly two years ago, not forseeing that in early 2011 I would be strapped for cash), there really wasn't a huge amount of money left over. So at this stage, I have about 18 euro in my purse and that's pretty much it. What's left in my bank account is already accounted for by other bills later in the month (pension, electricity & gas). I will get about 30 euro worth of lunch vouchers from work by the end of next week and have plenty of food at home so although it doesn't sound like a huge amount, it actually should be enough.<br /><br />Unfortunately, I don't really have any way to increase my income temproarily as I specifically have a clause in my work contract which prohibits work anywhere else and since the financial crisis overtime is frowned upon/needs pre-approval, which is never forthcoming.<br /><br />My loan is at a fixed rate with fixed payments every month - by now, it is indeed the smallest of my debts but that's not the reason it's getting paid off first, it's only the smallest because it's nearing the end of its term. <br /><br />Three months is not really enough time to make any life-altering changes. I am also trying to pull myself out of a serious depression (I'm on a waiting list for counselling) so while I normally am very good about eating frugally, the last fews months have involved far more lunches out and takeaway than I can really afford, which has added to the pressure of the additional bills sucking away my income.<br /><br />Thanks for commenting. I think I know deep down that getting another loan is not the right thing to do, not least because contrary to a feeling of accomplishment, I suspect it would feel very much like failure.Moonwaveshttps://www.blogger.com/profile/16018956740090192993noreply@blogger.comtag:blogger.com,1999:blog-4942522681264332044.post-21801844287029048242011-03-07T16:04:15.304+00:002011-03-07T16:04:15.304+00:00I don't know what your income is, but you may ...I don't know what your income is, but you may do well with Dave Ramsey's plan www.daveramsey.com). He has a few books out that you can probably get at the library. <br /><br />The basic gist of his plan is: <br /><br />(1) Make a budget<br />Figure out what you really NEED rather than want. <br /><br />Make a plan what you want to do with your money when the month starts. Give every euro a name and put the money in an envelope. Don't obsess over getting the budget perfect. If something does not work, you can adjust it in the next month.<br /><br />Pay everything with cash so that you are not tempted to spend money you don't have - i.e. credit card. <br /><br />Pay shelter, lights, heat, water and food first. Everything else can be a want, if need be. Plan your meals so you don't throw food away. Look at the wants and see what you can do without - just for a short time, not forever. <br /><br />If you don't have enough income to pay the basics, see if you can increase your income temporarily.<br /><br />(2) Emergency Fund:<br />Save money so that you have a 1000 euro emergency fund in the bank. Things happen, and you want to be prepared. <br /><br />(3) Debt payment (Debt snowball)<br />Pay off your debts smallest to largest as fast as you can. <br /><br />He does not go by interest rate, because he wants you to have the feeling of accomplishment when the smallest debt is gone. <br /><br />I think that's what you need right now - a feeling of accomplishment. <br /><br />So, throw as much money as possible into the smallest loan and pay the minimum on everything else. Then throw as much money as you can at the next loan. <br /><br />Do NOT get any more loans. Shifting money around does not do anything to get your loans paid off. As you said, that's how you got in trouble to start with.<br /><br />Good luck!Stepshttps://www.blogger.com/profile/10989499239828509384noreply@blogger.com