She Strengthens

Taking Control of My Finances: A Journey of Self-Discovery

A Wake-Up Call

At the beginning of 2018, I found myself drowning in a sea of debt. After leaving a stable job to pursue a career that brings me joy and a better quality of life, I made the bold decision to move to one of the most expensive cities in the world. However, I didn’t adjust my spending habits accordingly, and my financial situation quickly spiraled out of control. With a significant pay cut and no savings to speak of, I accumulated £3,000 of credit card debt and neglected my student loans.

The Harsh Reality

I’m acutely aware of the privilege I’ve had so far, but I know that if I don’t take drastic measures, I’ll be stuck in a financial rut of my own making. With £40,000 of student loans looming over me, I need to focus on tackling my credit card debt and small student overdraft immediately.

A New Leaf

This month, I’ve decided to take control of my finances by:

Prioritizing My Debts

• Paying off at least £160 of my student overdraft
• Refinancing my credit card to avoid hefty interest charges
• Upping my pension contribution

Overdraft: A Hangover from Student Days

To avoid being charged an eye-watering £1.50/day, I needed to reduce my overdraft to less than £500. Using Money Dashboard, a personal finance tracker, I’ve been able to monitor my spending and set budgets. By cutting down on unnecessary expenses, such as public transport and lazy lunches, I saved an extra £160 last month, which went straight towards paying off my overdraft.

Refinancing: Taking Control of Credit Card Debt

After realizing that the introductory 0% interest on my credit card would soon expire, I took action. By transferring the balance to a card with a long 0% interest period on balance transfers, I can pay off my debt in manageable chunks without giving the card company more of my hard-earned cash.

Pensions: Planning for the Future

I’ve been ignoring my employer’s generous pension scheme, but I’ve come to realize that it’s essential to plan for my retirement. By maxing out my pension contribution, I’ll ensure my employer contributes the maximum amount as well. Understanding the company pension scheme has been a major goal for me this year, and I’m proud to have ticked it off.

A Sense of Pride

Taking these three steps has given me a sense of pride and accomplishment. I’m determined to continue making progress and clearing my credit card debt by the end of 2018. It’s time to be a wise grown-up and take control of my finances.