Your financial rules.

[Drago]

It's a chapter is sooner forget. I was stupid to get involved with her.

 

[icowden]

What is the key rule that you apply to the management of your finances? Just one, not a list...

Never trust a woman who gets excited about opening up new pork markets?

 

[VinSumRox]

Spend someone else's money before your own.

 

[Alex321]

Simple stuff. Like failure to delete sat nav journeys when Ive cycled to work and shes used my car.

No DNA testing required, thank God!

And no hidden cameras you could sell the footage from on the internet?

 

[Gunk]

One financial rule is never get divorced, I got divorced in 2001, it crippled me, and probably put me financially back about 15 years.

 

[gbb]

Some of us survived driving old sheds for cash and not taking foreign holidays, preferring to play the long game with our shekels.

If i think back, never went abroad on holiday till I was in my 40s
Always did touring holidays in a modest cheap caravan.
Never had a new car, Always had bangers until I was in my 40s, then slowly moved to buying 1, 2 or 3 year old cars, that way you get reliability that allows you to keep them a good while.
Always used credit but carefully, always paid it off before due when possible. Nothing wrong with credit if youre sensible, careful and keep it within budget.
Always budgeted, my wife was very good at that.

Played the long and safe game...rewarded us more than I could ever have believed.

 

[fossyant]

You do need to use credit to ensure you get a good credit rating, and can access it when needed - e.g. buying a house/car etc. But if you use it, don't ever default. My rating is very high, but I suspect it will drop as time goes on as I've no mortgage or cards now as I'm not using credit. We will see. I do keep an eye on my rating.

 

[MontyVeda]

You do need to use credit to ensure you get a good credit rating, and can access it when needed - e.g. buying a house/car etc. ...

I've never used credit yet got a mortgage offer no problem. It would be a very unfair system if those of us who simply managed to stay out of debt were penalised when a mortgage is needed. I suspect "you need credit to get credit" is advice discretely provided by credit card companies?

 

[icowden]

Always did touring holidays in a modest cheap caravan.
Never had a new car, Always had bangers until I was in my 40s, then slowly moved to buying 1, 2 or 3 year old cars, that way you get reliability that allows you to keep them a good while.
Always used credit but carefully, always paid it off before due when possible. Nothing wrong with credit if youre sensible, careful and keep it within budget.
Always budgeted, my wife was very good at that.
Played the long and safe game...rewarded us more than I could ever have believed.

It's a bit swings and roundabouts I think.

I don't think there is anything wrong with your approach, but it suits a certain type of person. On the one hand, it's good to manage your money, but on the other hand you could be dead tomorrow.

As I mentioned in another thread, my dad died aged 44, about 8 days before his birthday. He'd never been anywhere except Ireland, Jersey and Norway. Since I met my wife we've been to Malaysia (twice), Disneyworld and associated attractions 4 times, Slovenia, Croatia, Italy, France, Mauritius, Portugal, Spain, Germany, Canada and have so many memories from our holidays, nice hotels, fun times with the kids etc.

I could have just been like my parents and gone to Wales or Devon every year. We'd have paid off the mortgage by now.

Personally I'd rather have had the holidays, the fun and the memories. You're only young once, and if you are unlucky you don't get to be old.

 

[icowden]

I've never used credit yet got a mortgage offer no problem. It would be a very unfair system if those of us who simply managed to stay out of debt were penalised when a mortgage is needed. I suspect "you need credit to get credit" is advice discretely provided by credit card companies?

It's advice provided by all providers, by Martin Lewis etc. When you are credit checked for a Mortgage, credit ratings will be checked - usually your Experian and/or Equifax rating. That rating is based on how you have managed your credit.

As a first time buyer, if you have never had a credit card or personal bills, and if you don't have a sizeable LTV, you won't get a mortgage. They don't know what your attitude to repayments is. I have learned that if you have kids, you can add them as additional account holders to your own credit card*, and they will build up good credit history (as long as yours is good obviously) which is a big help when they come to ask for a loan.

*you don't actually give them the card, in case they use it...

 

[Drago]

Personally I'd rather have had the holidays, the fun and the memories. You're only young once, and if you are unlucky you don't get to be old.

But I stopped before 50. I go where I want, when I want, do what I want, and answer to no one. Two weeks a year, maybe three of four now and again if you're lucky, and work until your late 60's is no comparison whatsoever for financial prudence and then having every second of every single day as your own 15 or 20 years earlier and the liquidity to enjoy it.

So sorry to hear of your Dad. Sadly thats one thing you cant plan for - if it happens, thats that, no foreseeing it. My Grandad, Dad's Dad, actually passed in his 50's while actually on holiday in Malta.

 

[icowden]

But I stopped before 50. I go where I want, when I want, do what I want, and answer to no one. Two weeks a year, maybe three of four now and again if you're lucky, and work until your late 60's is no comparison whatsoever for financial prudence and then having every second of every single day as your own 15 or 20 years earlier and the liquidity to enjoy it.

So sorry to hear of your Dad. Sadly thats one thing you cant plan for - if it happens, thats that, no foreseeing it. My Grandad, Dad's Dad, actually passed in his 50's while actually on holiday in Malta.

Of course the other sound financial rule is "don't have kids". !

 

[Gunk]

Of course the other sound financial rule is "don't have kids". !

Very true

 

[potsy]

Buy absolutely everything with a credit card. Always pay off the credit card in full every month so you never pay any interest. During the month keep your salary in a cautious stocks and shares ISA or in Premium Bonds. Over time, the investments, which pay out tax free, will gradually prosper and you will build up a running nest egg by exploiting the interest-free loan element in credit card agreements. Needs discipline, but makes your salary into an investment stream.

This is exactly how I use my salary, as soon as I get paid the whole amount goes into the highest easy access savings account I have, then gets drip fed back into the current account to pay the direct debits.
Opened a Chase account a few months back which are doing a 12 month bonus so it pays 4.5% (soon to go up to 4.75%)
Not had anything on credit for around 20 years.

 

[MontyVeda]

...
As a first time buyer, if you have never had a credit card or personal bills, and if you don't have a sizeable LTV, you won't get a mortgage. ...

It must be the fact that i pay my bills that has resulted in me having a good credit rating despite never using a credit card or taken out a loan.
Would a lender say 'yes' to an agreement in principal, and go onto making a mortgage offer without being satisfied with my credit rating?