Scottish Outlander

A Lifestyle Blog from Lindsay McWilliams

4 Things I’m Doing Now to Set Myself Up for a Successful 2020 and Beyond

Setting Up For Success

Why wait for the New Year, next month or even Monday? If I’ve decided I’m going to do something surely the best time to start is now? So, that’s what I’ve been doing and I thought maybe if I shared the changes I’ve been making and the things I’m determined not to give up on despite the time of year it might inspire someone, somewhere to start something now too.

I started investing

I recently discovered the FIRE movement – Financial Independence Retire Early. It’s a big thing in the US and it’s slowly been making its way over to the UK. The principle is that you increase your savings rate and invest enough so that, over time, the returns are sufficient to live off enabling you to retire before the official retirement age. Although I’m not looking to retire early I really like the flexibility this approach gives. Having another stream of income in 10 or 20 years’ time could allow us to reduce our working hours and spend more time with family or take a pay cut to work a job for love rather than money. The most accessible way of doing this is through investing so I’ve chosen to invest in low cost index funds and open a stocks and shares ISA. At the moment our monthly contributions are relatively low as we’re saving for a new car but in time I hope we’ll be able to increase this and set ourselves up for a more adaptable future.

I stopped drinking

Alcohol is a drug and drugs don’t lend themselves well to productivity. Although I was only (usually) drinking on Friday and Saturday nights the effects were much more far reaching. My Saturday morning workout sessions were less effective and the days after big events were often a write off. I’ve been toying with sobriety throughout 2019 and completed 40 days without alcohol at the start of the year then 66 days from the end of the summer. They say it takes 66 days to break a habit and you know what? I think “they” might be right. After those 66 days I had a blow out for my husband’s birthday which left me feeling hung-over for two days and I began drinking my regular couple of bottles of wine per week again, slipping right back into old habits. This time though I decided enough was enough and it just wasn’t worth it. I’d seen the benefits and I knew they weren’t outweighed by the “positives” of lowered inhibitions and a fuzzy feeling inside. So here I am at 6.30am on a Sunday morning feeling fresh as a daisy and finally finding the time I’ve been looking for to do something for myself and revive my blog.

I’m losing weight

I don’t want to wait till January when I’ve piled on the pounds and feel utterly miserable to focus on weight loss. I’ve dropped over a stone so far but a recent care free holiday means I need to get back on track. I don’t want to be derailed by the festive season so I think it’s more important than ever to get back to the key principles that have helped me get this far. Quitting alcohol should help me stay on track as my alcohol free alternatives contain a fraction of the calories and I won’t be as tempted to reach for salty snacks. I’m a member of Team RH (you might have seen Richie’s sweary, no-bullshit videos on Facebook) who have taught me so much about nutrition and why it’s important to try to hit my protein and fibre goals so I’ll be renewing my membership when it comes to an end. The Team RH app links to MyFitnessPal where I track my calories and provides me with calorie, protein, fibre, water, step and exercise goals which are completely achievable unlike those MyFitnessPal will set if you let it. If you’re interested in joining let me know and I’ll send you a discount code.

I’m minimising my media consumption

I was subscribed to so many email newsletters, podcasts, YouTube and social channels that it was overwhelming. I lived in fear of missing out on that key snippet of information that would make all the difference to my life and career but I was consuming so much information that it was hard to find the time to take action on any of it. The solution to this problem may seem pretty obvious but in practice it hasn’t been as easy as you might think. FOMO is real and whittling down to a few choice experts per channel has taken a lot of time but I think I’m nearly there. For once my inbox reads 0 unread emails and, on Instagram, I’ve actually seen the words “You’re all caught up.”

A Big Step and Planning for the Future*

John and I are in the process of buying our first house! It’s a 3 bed semi on the outskirts of Carlisle and we are very excited to have a place to call our own. After 8 years of renting flats near the city centre I can’t wait to have a garden and a driveway! Here’s a sneak peak of the garden..

The Garden

Pond

The impending responsibility of owning a property is making me feel like a real grown up and pushing me to consider things I’ve put off in the past like life insurance and pensions.

At the moment the company I work for isn’t obliged to offer employee pensions (although this will change in the next couple of years) so I’ve been looking at other options. My first thought was to set up a direct debit and transfer a monthly sum to my cash ISA. This is a safe option which offers tax free savings of up to £15,240 and if you select an easy access ISA you’ll be able to withdraw your funds at any time. If however you’re looking for better returns and higher long term growth investment might be the way forward.

Nutmeg offers a simple way to manage your savings online. You can invest as little as £1,000 per fund for ISAs (plus £50 monthly contributions for funds under £5,000) or £5,000 for pensions. A single management fee of between 0.3 and 1% (including VAT) per year is charged giving you the transparency that is often lacking in the traditional wealth management industry. You can set up a portfolio in under 10 minutes and you can top up, transfer or withdraw your funds whenever you like. Each diversified portfolio is managed by a team of experienced investment professionals who choose sensible strategies for long term growth and won’t spend your money on hot tips or market fads.

You can set your risk level anywhere from 1 “Avoiding loss is the priority” to 10 “I’ll risk large losses for higher gains” and a globally diversified portfolio means your risk will be spread across a wide range of investments. You can view the overall results for each of the 10 risk-based portfolios. From its inception in October 2012 to 31st March 2015 the average return for a medium risk investment was 23.9% which sounds pretty impressive to me!

Nutmeg

Nutmeg’s interface works using a slider system so you can explore different options and decide what will work for you. I really like the concept and the fact that Nutmeg tailors investments to your specifications. Of course no investment of this type is without risk so keep that in mind but this is an easy, accessible option for both new and experienced investors.

Dealing with Debt‏*

I’ve written about budgeting and debt before but the festive period is a time when many people feel over stretched and struggle to balance their finances with their families expectations. The best advice is to only spend what you can afford but should you slip into the red here are my top tips for dealing with debt.

Carlisle Christmas Lights

Create a budget

The first thing to do is document every single penny you spend and create a realistic budget. Use your bank statements from the last few months to find your average spend on things like food, transport, clothing, utilities etc. I use Martin Lewis’s budgeting spreadsheet which has clear categories you can assign your spending to. You can also add your incomings and let the spreadsheet tell you if you will be in positive or negative figures at the end of the month. This spreadsheet makes it easy to play around with numbers and decide how much you can afford to spend on each element. For example you could decided to reduce your spending on unnecessary treats like trips to the cinema in order to increase the amount you pay back each month on your loan or credit card. Once I’m happy with my budget I import the figures into an app called Goodbudget, the tech equivalent of the envelope system. This app is free to use and you can set your own budget categories and enter each transaction into the appropriate one. This makes it really easy to see exactly how much you have left to spend in each category and stops me overspending on things like food and nights out.

Pay off the card with the highest APR first

If you have several credit cards or loans try to pay off the one with the highest APR first. The higher the APR the more the credit will be costing you. If possible move your debts to a 0% deal. This will save you money that you can use to put towards the debt itself.

Talk to your creditors

If you can’t afford to meet repayments it’s worth contacting your creditors to make them aware of your situation. You may be able to negotiate a deal or agree on a new repayment plan.

Earn extra income

To pay off debt as quickly as possible consider how you could earn some extra income . Perhaps you have time for a part time job or maybe you have some items you don’t need and could sell. If I haven’t used something in over a year and it doesn’t hold any sentimental value I look it up on eBay to see what it’s worth before deciding if I would like to list it. Generally I list items twice and if they still haven’t sold I put them in a bag to take to the charity shop. I have had situations where something hasn’t sold for 99p the first time round and has gone for over £5 on it’s second listing. Every pound counts when it comes to paying off debt.

Get some help

If you’re still struggling, have debts of 5k or more and live in Scotland you can take the Scotland Trust Deed Debt Test which will indicate if you are eligible for a Trust Deed. This is a government backed contract between you and your lenders which allows you to write off a significant portion of your debts and only pay back what you can afford. This is one of three solutions, the other two being a Debt Arrangement Scheme and a Sequestration.

Debt Free Or Want To Be?*

VW Money Box

Most of us have been touched by debt at some point in our lives and with credit readily available it’s easy to let our finances get out of hand. Unexpected expenses like problems with your car can lead to bank charges or credit card bills. Now I’m living on my own for the first time I’m determined not to slip into the red and build an emergency fund for those one off payments. Budgeting has become a priority and I have spent time trying to reduce my outgoings and tidy up my finances.

Having created a spreadsheet with my earnings and outgoings I know what I have to spend in each category every month. To make sure I stick to it I’ve decided to use The Envelope System. As people tend to spend less when using cash the idea is that you put the allocated amount into envelopes with the name of what they are to be spent on written on them.

The Envelope System

Every penny spent in each category has to come out of the specific envelope and any change should go back in. When the money runs out of each envelope you can’t spend anymore until the new month begins.

Any money left over can be put into savings or if you haven’t budgeted in any treats it can be used to go out for dinner or to see a film.

If you live in Scotland and are struggling with debt Debt Therapy Scotland can help. It may be possible to organise a Trust Deed. This is a voluntary agreement between a debtor and their creditors (the people they owe money to) to repay part, or all of what they owe and may help you write off debt you can’t afford. Government backed it transfers the debtors rights to the things that they own to a trustee who will sell them to pay creditors part of what is owed to them and will normally include a contribution from income for a set period, usually 48 months.

This solution is for people with debts of £5,000 or more. If you owe less than this it’s a good idea to see if you can move debt to a cheaper credit card or loan. It’s important to pay off high priority debts such as rent or mortgage payments, utilities, council tax etc first before moving on to paying off the highest interest credit cards or store cards.

How To Save Money On Your Christmas Shopping

Christmas Tree

Wondering how to save money on your Christmas shopping? Here are my top tips for making sure you grab a bargain.

When You Know What You’re Looking For

Compare

Once you’ve decided on the perfect present you need to have a quick scout around the internet to find out what price you should expect to pay. Keep a note of the sites where you find your item is cheapest. Remember to take postage into account as most retailers charge for standard delivery.

Cashback

The next thing to do is check the two top cashback sites Quidco and Topcashback to see if you can earn cashback on your purchases. Search for the names of your cheapest sites and work out the cashback amount you would receive if you used that link to buy. You can also add these retailers to your favourites so you will receive updates when the cashback amounts are increased. If you’re prepared to put your purchase off for a week or so this can be a rewarding move.

Codes

Often you can use voucher codes alongside cashback sites. (This isn’t always the case so check the Ts &Cs on the cashback site.) There are a huge number of voucher code sites on the internet so it’s best to search the name of the shop you’re looking for and the term “voucher code” or “discount code”. If you’re lucky you’ll find a few different codes you’ll need to take into account. Work out the discounts you can get on each site and factor in the cost and cashback amount to find your best price!

When you’re not quite sure

If you’re not quite sure what you’re looking for there are a number of sites that will send you fantastic deals straight to your inbox. My favourite is HotUKDeals. This site features the best deals available in the UK and each day they send out a newsletter with their top selections. From TVs to DVDs and candles to toys the site has a huge collection of deals found by it’s users. Deals at rated in ° so you can see how impressed the community is by the level of discount!

Another fantastic newsletter is the weekly MSE newsletter “Martin’s Money Tips”. Here’s last weeks which highlighted amazing deals on books, a 50% off code for the Body Shop, 15% off at ASOS, £100 worth of wine for £40 and lots more.