So what's this post about? In her first sentence she talks about the fear of being without. It's a natural feeling that most people have at some point in their life. What would happen if my house burnt down, how would I take care of myself if I had no income? We all hope that these disasters don't crop up in our lives, but they could happen to any of us.
So, we take out insurances, and stockpile just in case, because it gives us a cushion if we need it. How many people have gone through the whole of their lives and never claimed off their insurance? How many people have lost food at the back of their cupboards and in the bottom of the freezer, for it to become inedible and have to be thrown away? Be brave, I say. I have house insurance for the fabric of the house, sensible, because I couldn't afford to pay for repairs should a disaster strike. I don't have contents insurance because I can afford to replace things, second hand if needed. I have car insurance because it's a legal requirement. I have breakdown cover because I don't want to leave myself vulnerable in case I break down in the middle of nowhere. I keep minimum food in my cupboards and freezer, nothing gets lost at the back in this house.
Marigold talks about her credit card trapping her, I bet not many people realize this is happening to them. It's a yoyo way of living. If you take your credit up to the max, and then find you have to empty your bank account to pay it off each month, what's the point? You are living beyond your means and you are trapped. My credit limit is £3,100. I never take it up to that limit, with one exception, when I change my car, every three or four years. And even then I have the cash to pay it off in full.
Marigold mentions her credit rating. In the UK a credit rating is just a number, it means nothing. What lenders look at is your CREDIT HISTORY, how you have been managing your finances over a period of time. I have no idea what my credit rating or history says about me, I don't care. All I know is that I don't owe anyone anything.
I've been rabbiting on a bit here, so I'll shut up and paste the last part of Marigold's email. I have just remembered she has sent a second email and after checking it again I see there are also some important points in there as well. So, tomorrow is Christmas Eve, and to finish off this series I shall post some more of Marigolds wise words from this second email.
Your viewpoint has helped me to face my fear of being without. My Mum was raised in the Depression and I inherited a lot of her ideas being a Post WW2 baby also. My cupboards are overstocked (in case of an emergency) and I loose things at the back. Now we are eating through this reserve.
Also I faced up to the way my credit card use was trapping me. I would work for ages to get my balance down and then within a week I'd take it back up to the original level. Then I would try to pay off a bulk amount from saving and again repeat the behaviour. I faced that I am no good with a Credit Card, I took money out of my saving and closed it and cut the card up. I am trying to finish my preparations for Christmas and I am making do with a very small budget....usually I realise I would cope by going into debt on the Credit Card. I'm trying to keep my fear that I will not have a good credit rating now under control...ridiculous as banks will not give me loans now i am 65...not that I need one now! And also the fear that in an emergency I will not have any rescue resources keeps playing out but is beginning to quieten down. Without the card I am more prosperous.
Come back tomorrow, even though it's Christmas, the money saving, simple living, whatever you like to call it, still goes on. Thanks for popping in, we'll catch up soon.