So after graduating last year, I was deep into my overdraft and faced with reality. No longer in that uni bubble and life was beating my ass. Keeping it real with you, the summer after I graduated especially when waiting for jobs to get back to me was probably the brokest I’ve ever been. Using overdraft money to travel up and down to unsuccessful interviews was tough. But there was a light at the end of the tunnel!
After waiting months and months, I finally got a job with a decent salary in August. The first thing I wanted to do with my first paycheck was to just enjoy. My birthday falls in September and I started working mid August so I basically got about 2-3 weeks worth of pay which wasn’t bad. I used that first pay for enjoyment and rightfully so because Lord knows I suffered.
After that, I decided to use the upcoming months to pay off my overdraft because even though I love spending money, being in debt lowkey(highkey) scares me.
Eventually in October I started putting a bit of money towards my overdraft. Around November/December, I was spending a lot of money on booking holidays, festival tickets and all that good stuff(Corona came to say SIKE) but at the same time I was starting to engage more with content about personal finances and savings, and ended up opening a savings account. The main issue I had was that even though I was getting a decent pay, I was spending unnecessarily on things I didn’t need to spend on, keeping up subscriptions which needed to be cancelled, getting ubers everywhere, ordering takeaways all the time and so on and so forth. So I’d put let’s say 200 a month towards my overdraft but then by the end of that month I’ve taken 150 out of the 200 I put in which meant I was getting nowhere with paying off that overdraft. My savings were also limited due to my overdraft and expenses!
I had two overdrafts, one with interest and one without interest. The one with the interest was kinda getting on my nerves so one month I decided I’d had enough and just paid it all off in full. I can be very impulsive sometimes which can be a good thing or a bad thing depending on the situation and in this instance it was a good thing. The one without interest was very hard to come out of but fast forward to April I was able to get rid of it too thanks to being in quarantine!
Going back to the start of this year, one of the main goals I set myself was to clean up my finances and improve my credit score. My credit score was decent but I wanted to get it perfect. It’s still not perfect unfortunately but I am taking the necessary steps and one day I’ll come on here and let y’all know I made it!
Steps I personally took which had a positive impact on my credit score:
1) Registering to vote
2) Clearing my overdraft(my credit score went up by like 80 points on experian)
3) Having a bank account for a lot of years (age of credit is very very important)
I also decided to get my name on certain bills this year and so after years of my mum paying my phone contract, I have finally got a contract in my name. Getting a new contract brought my credit score down though but I heard it’s a temporary drop because companies have to do something called a “hard search”.
I also plan to do other things as well but I’m going to wait a couple months before doing so because I don’t want too many hard searches on my account in a short space of time as it can negatively impact my credit score.
I think that’s all to do with how I’ve been improving my personal finances! Hope you guys enjoyed this read and I’ll be back next week with another blog.
Sending you guys lots of love.