July 15, 2024
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THE MONEY MINDER

“I need someone to take over my finances for me”: Starting over with a new job and no savings, how can I get back on track and avoid repeating past mistakes?

“I need someone to take over my finances for me”: Starting over with a new job and no savings, how can I get back on track and avoid repeating past mistakes?

Hi Money Minder,

Hey there Money Minder,

So, I’m starting fresh at 28 with a new job that pays well and I really want to get my savings and investing game on point this time around.

  • No savings
  • £500 in the bank
  • £400 credit card debt
  • No pension as self-employed
  • Approximately £2500 a month after all expenses

I’ve been pretty frugal during my 6/7 months of unemployment, and I’m nervous that now I have a steady income I’ll blow it all and end up right back where I started. I’m feeling like I need some help getting my finances in order.

Where should I begin?

Thanks,
Financially Focused

Response from THE MONEY MINDER:

"Hello There,"

Congratulations on your new job and the opportunity to start fresh at 28! It’s great that you’re already thinking about saving and investing, as that’s a crucial step towards financial stability and growth. The fact that you’ve been frugal during your unemployment period shows that you have the discipline and mindset to make positive changes.

To address your current financial situation, it’s important to prioritize paying off your credit card debt. Carrying a balance on your credit card can accrue high-interest charges, which can eat into your hard-earned money. Try to allocate a portion of your monthly income to gradually pay off this debt until it’s cleared. This will free up more of your income for savings and investments in the long run.

Given that you’re self-employed and don’t have a pension, it’s essential to set up a retirement savings plan for yourself. Look into setting up a self-employed pension plan or an Individual Retirement Account (IRA) to start saving for your future. Having a steady income now provides you with a great opportunity to secure your financial future, so make the most of it by saving consistently each month.

To avoid the temptation of overspending with your new income, consider creating a budget that outlines your expenses, savings goals, and discretionary spending. Track your expenses closely to identify areas where you can cut back and redirect those funds towards savings or paying off debt. You may also want to consider seeking financial advice from a professional to help you create a solid financial plan tailored to your goals and situation.

Starting may feel overwhelming, but taking small, manageable steps towards financial stability will set you on the right path. Stay focused on your goals, stay disciplined with your spending, and remember that every little bit saved or invested adds up over time. All the best from THE MONEY MINDER as you embark on this journey towards financial wellness!

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