Simple Pound

My goal for November was to save up as much money as possible to throw it all at my credit card bill in order to bring it down to 0 before the end of the year. I’m quite pleased with the fact that I saved around 25% of my salary last month and this number would have been a lot higher (~ 40%) if I didn’t have to buy a return flight to Germany for Christmas.

Unfortunately I haven’t had a chance to actually transfer all the “spare” money to my credit card account yet, so it’s only down by 16% this month. My assets increased by 6% last month, largely due to the fact that I now officially have a defined-contributions pension through my employer as well as a stable performance of the funds that reside within my life assurance policy (you wouldn’t believe it!). Combining these two numbers results in a total increase of my net worth of 7.45%

If you have paid close attention to my progress page over the last few months, you will notice that my car fund has suddenly dropped by 10%. There is a simple reason for this - I decided to take much of the money I had put aside for a car and use it to reduce the outstanding balance on my credit card. The reason for this is simple and pretty straight-forward. As much as I like watching my money grow, I currently pay more interest for the credit card than I earn in my savings account - hence, the money is put to better use in the credit card account. Yes, I know, sometimes it hurts to be sensible…

On an equally positive note, Adam has managed to pay down his entire outstanding balance and take a first step towards saving for a downpayment on his first property. Congratulations!

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