Breathe out and be: I have a job!
Remember Ewan? About six weeks ago, he wrote a post for The Money Principle in which he shared his thoughts and feelings on being young and long term unemployed in the UK. ‘How can I be when there is nothing to do?’ – asked Ewan. Guess what? Ewan has some big news to share.
At last! I did it! I finally have a job. And it’s a good one too. After roughly 4 years on Job Seekers Allowance (JSA), which is the British system of ‘Benefits’, I’ve finally broken free and landed myself a job selling insurance for the Co-operative bank.
For those not aware of what the Co-Operative is, it was founded as wholesale company in 1844 in Manchester, UK; this means that the employees received a share of the profits. It’s essentially a not-for-profit organisation. But now with the recent flop of banks such as the Royal Bank of Scotland (RBS), the Co-Operative are seizing the chance to break into the banking and insurance industry. It is a great company and they’re passionate about fair and ethical trading, which hits the nail on the head for me. It’s a no-nonsense type of company and is extremely well run. Continue reading
Why we need banks
People are angry – you can understand that. They see that the problems have largely been caused by the banks and are saying – hey let’s return to full reserve banking where a bank has to have all the money before lending it to you. That way there can’t be any problem. Others are saying – hey we don’t need banks. Just look where they’ve got us!
I understand these positions and have some sympathies. But I want to consider the effects of either of these two. Continue reading
On ‘personal finance’, coffee bars and wasps
Lately a bit of discontent has been building up inside me. You see, when I started my financial transformation – and a bit later this blog to help me cope with obsession and keep me focused – I felt really excited. Every new book on personal finance, every new blog sparked connections, generated ideas and generally made me feel like ‘the cat that’s got the cream’. I was LEARNING!
Now, things have got into a bit of a routine. I find that more and more often I will read a book or a blog article and think: ‘Competent; well written (not always); but I have read this stuff many times before’. And a bit of boredom starts setting in. Because, I don’t feel I am learning. Continue reading
Budgeting that works: Arkad’s Simple Rules
This budgeting frame is particularly appropriate when paying off ‘negative wealth’. When people have debt negative wealth, the customary advice is ‘don’t save; throw everything to pay it off’. I happen to disagree with this and from the very first days of my financial awakening I set myself two goals: one pay negative wealth and pay it fast; and two build up an emergency fund and savings. As it turned out I am in good company and Arkad, the richest man in Babylon, also agrees with me. Arkad’s advice to people who have negative wealth and wish to become wealthy was the following:
Ten percent of all you earn should be saved and invested.
Twenty percent of all you earn should be used to pay debts negative wealth– if the amount is insufficient one should negotiate with their creditors firmly and convince them that this all that they can afford but that they will pay diligently.
Seventy percent of all you earn should be used to cover all living expenses. Continue reading
