I’m counting the days down and I have 16 days until I am debt free! So I thought I’d share some of my exciting plans and goals for when I’m free from the chains. I want to start building on my net worth and have some ideas about the foundations that I want to put in place for this…
- Switch to a New Current Account
- Switch to a New Savings Account
- Save an Emergency Fund of £1950
- Invest in a Stock & Shares ISA
Switch to a New Current Account
My present current account offers no benefits other than an interest free overdraft; but once I’m debt free I’ll have no interest in an overdraft anymore! Fi has recently switched to a Halifax account that gives you an instant £100 plus an extra £5 per month. This is an obvious improvement than my current set up so as soon as I am debt free I will make the switch. This will be my first step to make my money start working for me!
Target completion date: 14th December 2013
Switch to a New Savings Account
The savings account I am currently using is only supplying a measly 0.01% interest, I am yet to choose a new savings account but I am looking for an account that offers a minimum of 1.3% interest. After my current account switch is complete I will find an account to be switched over for a greater return on savings.
Target completion date: 1st January 2014
Save an Emergency Fund of £1950
One of our goals is to save a 3 month emergency fund in case of emergencies; this works out as £1950 each. I estimate that given my current expenditure, I could live on £650 per month if I had to leave work tomorrow. As much as I hate to say it, my car has been making some creepy sounds recently which I imagine could mean an expensive gear box repair. Situations like these would be much easier with an emergency fund as a buffer. I will be saving a third of my income plus anything that I make on the side; I have recently been making some extra money through Fiverr gigs, coaching and Amazon sales which should hopefully continue!
Target completion date: 28th April 2014
Invest in a Stocks & Shares ISA
The past few months I’ve been eager to delve into the world of investing, having the weight of debt has held me back from diving in; has allowed me to be conservative and do my research. I’m aiming to keep my eye on the markets and continue to do some research; as well as I am currently reading Tony Robbins: Awaken the giant which provides some great advice for forming success strategies and making the most of your money and investments.
Target Completion Date: 28th April 2014
What are your goals for the next few months?
Update: July 2015
Hi all! Thought I would check back in on this post to review my performance against these plans. All but the stocks and shares ISA objective were completed on time. I actually decided to power fund a mortgage deposit after this so wanted quicker access to the funds and just went for an easy access ISA. To see how you can get out of debt too, check out the guide I put together here.