Ten good reasons why I don't have contents insurance.

Ten good reasons why I don't have contents insurance.

money personal finance

Hello. While pondering over a few topics for blog posts, I came up with the idea of  delving a little deeper into the whys and wherefores of  how I organize my life. My quirky ways of doing things or not doing things, and the reasons behind my way of thinking might not suit everybody. I tend not to go with the flow, I like to explore and find out what works for me, even if it goes against the grain and people might question my sanity. I might make a one sentence statement which does not give the whole picture, so I am going to do a series of posts called Ten Good Reasons Why.........and fill in the gaps. 

So the first statement is 

Ten good reasons why I don't have house contents insurance.  

Picture source The Story of Stuff.

1. There is very little stuff of value in my house. I could happily give it all away and start again. Most of it was acquired cheaply second hand or given to me free. The things I have bought from a shop are old and not worth very much. 

2. I have no jewelry, no collectors items worth a lot of money. My electrical gadgets are ancient. 

3. I have enough money in my emergency fund to replace anything broken, damaged, or stolen. 

4. I have no feelings for my stuff, I am not married to my stuff, I am not in love with it. It is just stuff. It doesn't belong to me, I am borrowing it while I am alive, I can't take it with me. 

5. I don't need a lot of stuff. I can manage with the basics. A bed, a chair, something to cook my food on, clothes to wear, bedding to keep warm. 

6. If I had to start again I would be happy to purchase second hand, ask for items I find in a skip, buy at a car boot sale or charity shop, accept donations from friends.  

7. I don't want to pay for contents insurance. The money I have saved over the years by not paying, more than covers the cost if I had to buy something. 

8. Insurance is all about risk, do I want to take the risk by not having it, or do I want parts of my  life to be cushioned against risks, and pay for the cost of it.  Peace of mind doesn't come cheap. I am happy to take the risk and not pay for contents insurance.  

9. I am not a worrier, I will not lose sleep thinking about what if all my stuff is lost.. I take each day as it comes, living for the now, and not worrying about how long my stuff will last, or if it will be stolen, or lost in a fire or broken in an accident. What will be will be. I prefer to live with the thought that it might never happen, rather than, oh dear, what if. 

10. Looking for the right policy can be very time consuming, playing one company off against another, trying to get the best deal. Small print baffles me, big numbers baffle me, the wording of policies baffles me. I don't want to be bothered with it. 

Everyone must assess their own needs for insurance, dependent on how much they value their possessions, the value of their possessions, and what it would cost to replace them. Personality comes into play as well, whether they are risk takers or risk averse. Whether losing their possessions would have a detrimental affect on their quality of life, or whether they are confident to move on and start again.   

No painting today, it's been raining. The Walking Group mileages are rolling in, the page is slowly filling up, and it's looking good. It's great that you are making a real effort. Thanks for popping in. We'll catch up later.

Toodle pip. 

Keeping track of where the money goes

Keeping track of where the money goes

money organising personal finance

Hello and good morning. It's Friday, and as Ready Steady Go used to say at the beginning of their Friday night music programme, the weekend starts here. Thank you all so much for your comments on the previous post, your words made very useful and enlightening contributions. It's great to get the views of others, adds meat to the bare bones if you like. It's a subject that needs to be aired on occasions, to highlight the good work of Women's Refuge, and to show that if anyone is suffering in silence there are places to get help. 

So, what's on the agenda today? My winter fuel bills, as expected were quite high, so this has prompted me to sort out my utility bill files, put them in order, and work out the figures for the past year. 

Most people prefer to pay monthly by direct debit which comes straight out of their bank account. I am a bit old fashioned, I like to use the utilities first, gas, electric, and water, then pay for them on a quarterly or half yearly bill. The direct debit system works ok for those who have multiple financial commitments and find it difficult to keep track. Not a good idea to miss paying essential bills, they need to be paid. My financial commitments are simple and I find it easy to budget on a monthly and yearly basis.

So what's the situation at Tightwad Towers. I have some figures in front of me.
Four gas bills from April 15 to April 16
£5.30  April to July. Cooking and baths.
£5.84  July to Sept. Cooking and baths.
£32.64  Sept to Dec. Also, bit chilly, some heating.
£98.13  Dec to April. Also, cold bit more heating.
Total £141.91 for the year. Average £11.82 per month.

Four electricity bills from April 15 to April 16.
£26.55  April to July. Longer days, spend time outside.
£38.41  July to Sept  Don't go out much in school holidays.
£23.40 Sept to Nov  Cutting down in readiness for winter.
£71.99  Nov to April  Lights on, staying in. Computer on.
Total £160.35. Average £13.36 per month.

I have two water bills a year from two companies. Water into the house and waste water out  from Anglian. I am on a meter. Surface water removal by Severn Trent.
Anglian
£35.67 Dec 14 to June 15
£32.55 June 15 to Dec 15
Total £68.22.
Severn Trent
£28.49 Oct 15
£28.49 April 16
Total £56.98
Total water charges for the year. £125.20.  Average £10.43 per month.

The other regular bill coming in is taken by direct debit, my broadband and land line is paid monthly. When I changed supplier this was the only option offered. I get an email every month from EE, which I don't bother reading because I know more or less what is in it. I can confirm the amounts when I get my bank statement. It is usually around £35 a month. I could probably get it cheaper if I shopped around, but I don't want to be tied into any contracts, and then after the one or two year period have to look for another deal. I count my computer as my hobby and entertainment. I don't go out hardly at all in the evenings, don't pay a TV licence, don't go to the pub, don't eat out. My unlimited broadband is as important to me as my gas and electric.

I won't go into detail on my other expenses, I have house insurance but not contents insurance. I have all the costs involved in running a nice car, road tax, insurance, MOT, recovery, and depreciation. For any new people who have started reading, I don't have a mortgage or pay rent.

So there you are. Financial review all done and dusted. Have you looked at your bills lately? Do you keep them in a file? Or are they all computerized? Maybe you do a spread sheet on the computer, I don't. Maybe you do internet banking, I don't. Do what's best for you.

Thanks for popping in. We'll catch up soon.
Toodle pip

It's all kicking off........again, ha ha.

It's all kicking off........again, ha ha.

personal finance

Hello. Here we go again.

Another story out this morning.

I thought they might have dumped this as it's been over a week now since they interviewed me.

Off to Crafty Club now. Back later.
Toodle pip.

I do my own thing.

I do my own thing.

budgeting shopping money money saving personal finance ponderings reflections on life

Hello. I've been reading a lot just lately on the different methods people use to save money, on web sites, newspaper articles, forums, and blogs. It strikes me that there are a myriad of different ways to approach this living frugally lark, and no one has all the answers, me included. As a single person pensioner with a small income and no savings my ways are going to be different to those who are younger with a family. There isn't a one size fits all.

I know quite a few people who have no need to watch the pennies. Although no one likes to talk about their financial status it is obvious that they have managed to plan for the future and live in houses a lot nicer, bigger, and newer, than mine. I am assuming that as they drive around in brand new Chelsea Tractors, they must have been in good jobs to be able to splash the cash. I bet you are thinking that there is a touch of jealousy creeping in here, you'd be wrong. Anyone who has the cash to buy what they want can do so. It's when people spend money they haven't got and go into debt for it when the trouble starts. It's a downward spiral from there.

Money saving among the well off is different to the way I do it. I see wealth as a ball and chain around my neck. Ok, imagine you have accumulated £50,000 throughout your working life. What do you do with it? If you have won it or been given it, you wouldn't look on it in the same way as if you had earned it by sweating your nuts off in a job that bored the pants off you. There are thousands of crooks out there who are waiting to get their grubby hands on your nest egg, and I don't just mean scamming individuals as if that isn't bad enough, I mean the legitimate financial institutions who aim to confuse the hell out of you with their predictions, offers, accounts, investments, and personal finance advice. They tell you to put it in this account, invest in that company, buy an ISA or bonds, shift it around several bank accounts. What a load of faff just to hold onto your cash. Phew, I couldn't get my head round that, maths was never my strong point, in fact I am chuffin useless at it. I'm glad I don't have to worry about all that, my personal finances are a lot easier to work out. Juggling money about is one kind of money saving I don't have to bother with.

Extreme couponing has been in the news again. I was asked the question by a journalist, 'Do I collect coupons? My reply, no. Those who have a family to look after and buy a far wider range of products than I do, might save a few bob, but you have to remember, the only reason that companies give out coupons, is to make you buy more. The pictures you see of coupon shoppers pushing trolley loads of stuff back to their cars, then stockpiling it in their garage, makes me wonder if it is more of an obsession rather than an effort to save money. What I want to know is once they have accumulated all this stuff, at what point do they then stop spending altogether, and use up what they have? How do they decide when they have enough? The amount of time and effort they put into searching for the coupons would possibly make it pay less than the minimum wage. Another kind of money saving I don't want to bother with.

Cash back sites seem quite popular, whenever you want to buy something if you go through one of these sites eg, Quidco, they give you money back when you make purchases through their web site. I don't want to sign up to any more sites, and I don't want to do internet shopping because I don't trust the security of it. And what about that Groupon thing, is it still going? Sign up and get all these special offers. If I wanted something I would go out and look for it, I don't need another marketing ploy to get me to part with my cash.

Comparison sites, well they confuse the hell out of me. I want an easy life, if I am happy with what I am paying for goods and services I leave well alone. If I want to change and look for a cheaper deal I will first read Money Saving Expert, then go to the web sites of possible companies, and choose one for myself. Don't tell me to go to a comparison site, I can't be bothered.

So, I have my own methods of managing my money, and although some may say I go to extreme lengths to save a few pennies here and there, I have proved that over a period of time, those pennies mount up and make £'s. My simple way of thinking means that I buy what I need, and if there is anything left over, I can then move on to spend what's left on what I want. I will continue to search out cheap shops to buy food. I will not switch the heating on until I am cold,  it's lucky that I spent years working outdoors which got me acclimatized to lower temperatures. I will continue taking food and drink out with me and not buy it out. When I want or need something I will first see if I can make it, recycled materials are best, or look in a charity shop, or go to a car boot sale, and look in skips. I don't care if people think I am odd, I don't have to keep up with anyone, I do my own thing.

Right, off out to do three miles. There is a howling wind, should be fun.
Thanks for popping in. Catch up soon. Toodle pip.