Life Without Credit Dave on 12 Oct 2008 06:53 pm
Life without credit: the beginning
I am at the start of a long journey, a journey of financial discovery, forced upon me by my own lack of self discipline with my finances through my university days, which lead onto almost a decade of overspending through to my late twenties.
In short, you could say I’ve buggered up my life. I’ve certainly buggered up my credit rating, which has lead me to believe I will have to lead a life without credit – of any sort – for at least the next six years, perhaps longer.
Now at age 28, almost 29, that’s a little daunting - I’ll be 35 before my credit rating has recovered! However, I’m not deterred, in fact it’s made me determined to buy a house without a mortgage. So that is my life plan – find a way to buy a house without a mortgage, in other words, save up for a house.
Now given the average house price in England is currently around £169,000 that could take me a good few years. In fact, given the rate that I can save money, (£1,000 a month assuming I keep my costs down), it will take me over 100 months assuming compound interest of 5%, all other factors remain unchanged and I don’t stick my savings into an Icelandic bank!
Realistically, I think it would test the patience of a saint to achieve this target, so I am going to have to be a little creative.
Another factor that will hinder my progress is that once the credit crunch has resided and the property market picks up, I will have to contend with my target steadily increasing year on year, which will no doubt erode the effect of the interest I receive on the money stashed away.
So the journey begins, let’s just hope that I’ve mastered the art of delayed gratification otherwise it could be a long slog!
on 16 Oct 2008 at 11:07 pm 1.Rob Lewis said …
Wow, that’s one hell of a challenge. All I can say is good luck and keep us informed about how you’re getting on. Being able to put aside £1000 per month is a great start though.
on 20 Oct 2008 at 9:51 pm 2.cornish dragon said …
Well done Dave go for it….
it is possible ( anything you work
hard enough for is I say)
This little thread I also liked
http://www.abovetopsecret.com/forum/thread401735/pg1
many good points here IMHO
CD
on 26 Nov 2008 at 7:41 am 3.dontloseyourhair said …
I enjoyed your writing style and I’ve added this blog to my RSS reader. Keep up the good work. Pitcher.
on 27 Nov 2008 at 11:31 pm 4.Cesar Moves said …
I am seaching for some idea to write in my blog… somehow come to your blog. best of luck. Eugene
on 28 Jan 2009 at 5:38 pm 5.rm said …
Buying a house outright is a bad move if you can avoid it.
on 30 Jan 2009 at 11:54 am 6.Tristan said …
RM - why is buying a house outright a bad move if you can avoid it then?
Clearly if you’re risk-averse, owning your own home outright is a good strategy. If you’re a risk taker, then it may be better to put your money to use in other investments…