Welcome back Ladies & Gentleman!
This is second publication of the the #moneytalkswithmary! Let us get right onto answering this week's questions, shall we?
Q1. "My sugar daddy and I have gotten into a dispute and he has been holding off giving me an allowance for a few weeks now. The problem is a fair amount of people rely on the money he gives me and without it, I'm really struggling to finance myself without allowances from him. Help?"
Thank you for writing in. The first cause of action is prioritising necessities and to try stabilising your credit. The benefit of stabilising your credit will enable you to carry out a loan if worse comes to worse. Try your best to keep up to date to keep up with bills ( phones, any direct debits), as failing to pay these on time has a negative effect on your credit. If possible contact companies or the bank before payments are due (at least 5 working days) and attempt to shift payment dates. Should you be struggling to keep up with necessities, such as utility bills, these companies may suggest an affordable payment plan however entering a payment plan agreement does have a negative effect on your credit and Credit Agencies will be notified.
With regards to the people reliant on this money, just be honest with them about your current situation. In the mean time, try to find another source of income and base your lifestyle on that for now. If that is not an option, simply find another sugar daddy.
Q2. " Have you made investment mistakes that young people can learn from"
An investment is never a mistake but rather a lesson learnt. I would say Trading (Forex) was the biggest mistake, I have made. The biggest mistake of it all was not believing in my own ability and entering an agreement with "an experienced broker" that was not as lucrative as expected. There is money to be made, but you must be careful. The best lesson it taught me, was that an investing is only an option when you have mastering the knowledge of what it is you are investing into. Furthermore, invest what you can AFFORD to lose. A loss is unfortunately an option, so do not make an investment that could send you the cleaners.
Q3."Mary, I caught feelings for this guy I was seeing and I have a feeling he only used me for my square. He claims he doesn't do fraud but all his friends do and I am scared to confront him about it. How do I go about handling the situation?"
1) To be certain block the card and request a new one from the bank.
2) I think the main issue here is that you do not trust him. Find out why you are struggling with those trust issues ( whether it is to do with you or him), and tackle it. If you do not confront it, your suspicions will only grow based on assumptions which may have a negative effect on what is supposed to be a good thing.
Q4. " When is the right time to spend money on a guy you're seeing?"
I'm joking! Play hard to get, but there is no need for stinginess. There is nothing wrong with being thoughtful, IF you are progressing towards seriousness. If you are exclusively dating then spend generously, but wisely. If he has no intentions of a relationship and is still sending you "U up?" texts at 3am, save your coins.
*P.S. Never suggest or pay for the first date under any circumstances. Men who take you on first dates with the intention of splitting are in the process of being made redundant on the basis of bad manners in 2019.
I hope you have all learnt from these Q&A's, please get in touch via the socials below.
Until next time,
Q1."In one of your recent blogs you mentioned that you took out a life insurance policy. Can you explain a little bit more about how this works, which company you signed up with etc.?"
Thank you for writing in, this is a good question and I'm happy to elaborate. I currently pay £5.39 a month with "AVIVA" for decreasing cover ,which is where the cover amount is paid as a lump sum and decreases each month, broadly in line with a repayment loan, using a fixed interest rate. In my case carried out £100,000 policy, so should you need more cover you need to contribute a higher monthly payment. There are a series of questions you will need to disclose when applying in relation to your health, wellbeing and age, so the younger and healthier you are... the lower your monthly premium will be.
Q2. "I want to start a side hustle but I don't really know how to go about it and it scares me a little. What if people don't absorb my vision and it's all a waste of time and effort"
First of all, no venture or thought is a waste of time and effort. You have already made a great step by acquiring an interest in developing a venture of your own, all you need to do is develop it.
1) Research and study your market
2) Do the maths. I cannot stress how important the mathematics side of business is. Start off with calculating your manufacturing/ set up costs, sale cost and sale price. Make sure that your prices are competitive and your services are attractive to the consumer.
3) If you have done the maths and found that money is tight, do not panic. There are organisations such as The Prince Trust, Government grants and investors that would be happy to help a great start up.
3) Promote yourself endlessly. Do not be embarrassed to do so...its your business and financial affair, nobody else'.
Q3. "When do I know if it is the right time to carry out more streams of income?"
The simple answer to this question is consistent business profits! Try not to dip into other pots such as 'your savings' or money separate from business accounts to embark on several projects. Use profits from businesses to maintain, develop and carry out other ventures. This mindset will determine your readiness to develop and avoid you miscalculating your expenditures.
Q4."I need a cash advance... what is the easiest way to get one?"
The easiest way to get a cash advance is most probably a short term cash loan however, there are risks to this. Organisations such as QuickQuid, offer these services as long as your credit rating is good, but the interest rates are extortionate and the money must be repaid fairly quickly ( around 30 days for most). If you are borrowing an amount you can easily payback, then this isn't a bad step but failing to comply with the loan agreement can have you in serious financial difficulties, so make sure you think carefully with regards to this option.
Another way is to visit Pawnbrokers, who can exchange goods for money or offer you a 'buyback service'. A 'buyback' service is where you give them valuable goods (laptops, phones etc.), for which they will lend you some money for 28 days. By the 28th day they will expect you to return their money (with interest), to get your goods backs or they will sell whatever you have given them. If you cannot afford to 'buyback' your value, then you can pay the interest only to stop them from selling it.
For example: If they lend you £400 in exchange for a MacBook Pro, you will be expected to pay £520 back to them to get the MacBook back. Generally the interest is £30 for every £100 they lend you , so if you couldn't afford to pay the £520; they would expect £120 at the end of the 28 day lending period to cover the interest, which will stop them from selling your valuables.
Thank you for all your questions and I'm looking forward to receiving many more. I will answer as many as I can each week.
A financial advice column written and led by MaryFay Tita-Kuna. The idea is that people private message me financial dilemmas, scenarios and questions, which will be answered weekly in the advice column. This is to encourage discussions about finance within members of our youth and help them learn from either mistakes or great steps that people have taken.