Finance | When to borrow
I went in Matalan yesterday and looked at the clothes. I was going to buy a straw hat for the summer but they weren’t quite what I wanted. They had the hats and sunglasses on offer, both for £8.00. I can’t wear the sunglasses though because mine are prescription. I didn’t buy anything in the end but we were out of the rain and using their heating and not mine! I do know some people who would have bought a lot of clothes they don’t need and paid with their credit card. This is essentially borrowing money to buy stuff that you don’t need. (more…)
Finance Friday | Budgeting
Budget 2012
I learned this morning how many people read my blog and in which countries; I was surprised to learn in how many different countries. I have to be honest there were a few, that were unfamiliar! In the UK, later this month, the Chancellor of the Exchequer will present his budget for the coming year. We too have to budget and be careful with our money wherever we live in the world. This is a matter of understanding money and setting priorities; essentials are more important that luxuries and then keeping proper accounts. (more…)
Finance | Appreciation and Depreciation
Depreciation
I bought my car in 2004 and so it’s lasted 8 years without any trouble. That is 12.5% depreciation a year and I expect it to last at least another 2 years so I can get depreciation down to 10% a year. It’s not as fashionable as a new car straight out of the showroom; but cost a lot less. A wealthy American on television advised people to own more appreciating assets than depreciating assets like cars; that was good advice. (more…)
Frugal Friday | Saving on interest
Motoring
I have started with a picture of my car, now 14 years old. A smaller car would be cheaper to run but the depreciation on my car has been around £350 a year over a 7 year period. It’s still in quite good condition and I expect it to last a few more years so depreciation will be even less in the longer term. I checked my fuel consumption today and it was about 6 miles to a litre of petrol; I could do better! It was 7.5 on a Sunday. (more…)
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