Are You Worried about Interest Rate Rises?
According to Mark Carney, Governor of the Bank of England, there are interest rate rises of 2 – 3% on the horizon.
How will that affect you? If you have a mortgage, you need to start to plan how much a 3% rise will mean to you and how you are going to cover it.
It may not be a problem for you but it certainly will be for many people in the UK and other similar economies.
So what are the chances of you getting a pay raise, a new job, a legacy or winning the lottery? and what do you do if none of those are likely?
You could consider ‘cutting back’ – the UK the Government’s Money Advice Service has a cut-back calculator you can access here:- https://www.moneyadviceservice.org.uk/en/tools/cut-back-calculator. It’s quite interesting finding out how much you would save, for example, on year’s worth of takeaway meals or holidays.
On my way to a friend’s house the other day, he asked me to pick up some cigarettes. I’ve never smoked in my life and hadn’t a clue how much they cost. I vaguely thought they might be £5 for 20 but was staggered when the cashier asked me for £9.29! If he smokes a packet a day, according to the cut back calculator, that’s £3,393 a year he’s spending just to kill himself.
If he had a mortgage of £100,000, stopping smoking would cover the cost of the 3% rise for a full year and there’d be some money left over.
Personally, I hate the thought of having to ‘cut back’ on anything that I enjoy. Holidays, for example there’s no way you’ll get me to cut back on those. I’d rather find ways I can increase my income. That’s exactly why I started to learn how to build online businesses. I don’t know about you, but I much prefer to have a future of abundance than one of scarcity.
If the idea of ‘abundance’ is more appealing to you than scarcity, you might like to come and check out how you can learn to be a Digital Entrepreneur. We’re always looking for new, mature students with a good work ethic and a strong desire to learn. You’ll get plenty of help and amazing support from our community. You can find out more, here.