Personal Finance 101

neither a borrower nor lender be

The phrase above comes from Shakespeare’s Hamlet, and actually refers to never lend nor borrow from a friend, but I would expand that to include never lending to nor borrowing from a family member, partner, lover, or anyone else for that matter.  Often you will never, ever see a single penny paid back to you.  I would also expend that to say never, ever, ever stand as guarantor for anyone either. Because as guarantor you are jointly end severally liable for the whole debt, plus interest, plus charges ~ up to and including losing your home and everything else you own.

  1. Work out your monthly budget, with hard numbers.  How much do you have coming in, and how much goes out, and on what?  If you have more going out than you have coming in, then stop fucking wasting money on cigarettes, booze, gambling, drugs, vacations, sex, new clothes and shoes you don’t need….  Or get a higher paid honest job.
  2. Only ever borrow for two reason; #1 a mortgage to buy your home  #2 to buy your car, if you must have a car.  (actually student loans to pay for your education sometimes make a third reason)  The only borrowing I have ever had, in my whole life, was a mortgage on my home.
  3. Pay off your debts just as soon as you possibly can, and only take out a loan if that is allowed in the documentation with no penalties.  Don’t ever borrow from anyone other than highly respected, and properly regulated institutions.  If you have never heard of them, don’t touch them with a barge pole.
  4. Never, ever, ever borrow on a credit card, for any reason whatsoever.  Only buy something on your plastic if you can afford to pay for it in hard cash right there and then, and always pay off all your card debt in full every single month.  The interest rates on credit cards are stupidly high.  Anyone who says using a credit card / line of credit to consolidate your borrowing is a crook.
  5. On the other hand, I buy everything on plastic.  I do that for 3 reasons #1 I get good points which I can use to get other things #2 because I pay off my card bills in full every month, I get 1 month’s free credit  #3 if I have a dispute with the seller, then in the UK the card company will, at the end of the day, refund me in full in the seller will not, or cannot.
  6. Save for your retirement, however that works in your country and in your company.  Save as much as you can afford for your retirement.
  7. Never ever trust anyone who tries to sell you any kind of financial product whatsoever.  If it sounds too good to be true, then it is.  If you don’t understand it, then it’s a scam.  Never, ever believe anything you see on the internet ~ especially on YouTube.  Everybody lies sometimes, sales people lie all the time.  Often they believe their own lies, or they’re to badly educated to understand their own products.  (That applies to all sales people.)

We had a mantra when I worked in Banking and Finance in The City of London;  ‘My Word Is My Bond’.  Sadly that no longer applies anywhere.  The world of Savings, Loans, Credit Cards, Banking, Finance, The Stock Markets, Real Estate….. are today full of the ignorant, dishonest, liars, charlatans, confidence tricksters, and crooks.

We had another saying in the City of London caveat emptor; which is Latin for Let the Buyer Beware.

~

jack collier

jackcollier7@talktalk.net

4 responses

  1. Sound advice Jack. I like the term confident trickster.

    Liked by 2 people

    1. I try Sweetheart, I try. ❤

      Liked by 1 person

    1. Based on complete honesty

      Liked by 2 people

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