Credit nearly ruined my life
I’m going back to the mid-sixties when I was 25 years old and the interest on my credit cards was rapidly approaching £200 a month. That was around sixty years ago when £200 was worth a lot! The price, incidentally, of an oldish Armstrong Siddeley limousine I had purchased. But the build up of all this interest, I thought, was plain stupid.
I had taken out a bank loan to pay off all my cards which had less than half of the interest and did everything I could to pay it off as soon as possible. I upgraded and changed my job, I took an evening job, then a weekend job and soon cleared the bank loan.
Since then I have never paid a penny interest to anyone, but wasn’t against the principle of interest – as long as it was coming into me! I even hired a chauffeur and had a show room finish put on my limousine for my wedding, that also save money!
I carried on with my evening and weekend jobs for a while afterwards to build up more funds. Then I added the money into a savings account I labelled MyInsurance. My boss asked me why I worked evenings and weekends so, when I told him of my plans, I was soon promoted to manager of one of the departments, bypassing the supervisory rank.
Whenever I needed to insure anything, I got quotes and then put the premiums into the new savings account and thus insured myself. My cars were all insured third party and I put the difference for fully comprehensive into the savings account. It soon built up!
You will be surprised at the profits insurance companies make. However, you really need to be in your twenties to be able to set up such a plan as you need the decades to build it up.
Sometimes, when I needed a loan, I checked with the bank as to what interest I would be charged for a loan; I then took the loan from MyInsurance account and paid an equivalent interest into this account. This increased considerably when I took out the money to buy my E-type Jaguar! I should have changed the label from MyInsurance to MyInsurance&RetirementFund!