#10 Nothing Like Fear Of Redundancy To Focus The Mind

Debt current stands @ £25,300  (Student Loan £8,000, Credit Card Loan £7,300, House Loan £10,000)

Prioritising what to do with my money has, over the last couple of years been the thing I’ve struggled with most.

I really want a house on a nicer street within our village.

I really want a to be debt free.

I really want to retire early.

I really want to have lots of money invested.

I really want to start enjoying our money by going on holidays again – it has been years.

However, every now and then something happens which focuses the mind.

My current situation is I am the bread winner for Mrs Money Interest and our two children. We have a mortgage of £190k - £800 per month. We have credit card debt of £7.3k. And yet we have savings of £500.

So when I was told yesterday, or at least implied, that in April/May/June in 2016 I may get made redundant… it sharpened my mind and focus. What is really important now. What should I be prioritising right now.

Currently the credit card debt is on a 0% interest deal, but this runs out in March.

Up until now I have been happy with the £500 in savings and have prioritised paying off the Credit Card.

Now I will change my focus. I’m going to;

          1) Look to extend the 0% interest on my credit card loan – in January.
2) Put aside any extra money we have each month and add to my ‘rainy day’. The immediate aim is to have 1 month worth of costs (£2,600)

      3) At that point I’ll make a decision about whether to continue saving or return to paying as much off the debt as possible.

The aim is to have a little more re-assurance if this or something else unexpected happened.

In terms of my job, I have taken the decision to get as much out if in terms of experience as I can. Not get disappointed or angry. And remind myself if the time comes when I will be made redundant it’s an opportunity to take what I have learnt and probably go contracting to earn more money. But the real focus now is head down, keep learning and build up some savings.

Thanks

Mr Money Interest