Chaotic Money Management

[Rosebush2023]

Hi everyone,

Just hoping for a bit of advice, or to hear if anyone else is like me.

I have two part-time jobs and two 'side hustles'. I could live very well off my two main office jobs, as they give me enough to live on, £200/month put away for holidays and, in theory, £700 for savings.

One of the jobs, which brings in this extra £700, is precarious and could end soon as the company is always near bankruptcy, but it's been going for ten years so far. But I'm always obsessing about maximizing this money to get rich quickly and be secure in old age (I'm near 50).

I get obsessed with one of my side hustles as it involves buying and reselling things. I have always had a shopping addiction so love the excuse to buy things. This has brought in a net profit of £15K in ten years (declared via self-assessment) so it's not great fortunes!

I always have a large debt going, currently spread over 10 credit cards (all 0%, or very cheap). I'm addicted to taking on cheap money transfers or balance transfers, which I plan to use for all sorts of schemes like stoozing (where I earn more interest than the rate I've borrowed at), or buying more stock. Then I suddenly panic and try and simplify it all by paying it off and closing my high interest bonds, or sell off my stock quickly at a loss.

I am getting an ADHD diagnosis soon, and I know I'm in the wrong job (a stable office job) and I love the buzz of having a good eye and meeting people in the antique trade who buy off me. But it's unmanageable, takes a lot of time and I am clearly not comfortable with debt. Or rather sometimes I'm on a high and OK with it, then I will suddenly panic and worry about it for days.

Maybe I should see a financial adviser, or some kind of coach or money counsellor. Has anyone had experience with things like this?

Thanks!

There is a lot to unpack in your post, and without specifics, it is hard to give specific advice. So some general thoughts/advice.

1. Yes, it is probably a good idea to see a financial counselor for specific, tailored advice.
2. If you have debt over 10 credit cards, then I am assuming your net position is debt - that is, any savings (either holiday or generally) are less than your debt.
3. The fact you have some savings is probably lulling you into a false sense of security, as is that the credit cards are being used for ‘business’ and you probably think ‘it’s ok to have business debt/inventory debt’.
4. Your side hustles aren’t a business, they are a poorly paid hobby. Not being harsh - stating facts. Recognise it as such. Then, operate on that level. It’s ok to have a poorly paid hobby if you love it, and do not go into debt for it.
5. With that in mind, no one needs 10 credit cards. More than 2 indicates a problem managing money and/or with debt. This is regardless of 0% interest plans. Make a plan to pay off the smallest balance card first, and close it. Then move into the next one. Search ‘Dave Ramsey credit card debt on YouTube’ and you’ll find lots of videos of him and other financial people giving advice about paying off CC.

If you had written you had this hobby and 1 credit card with a limit of £2000 or less and no overdraft, I would say crack on and enjoy yourself. But what you have described sounds out of control. You need to bring it back in control while you still can, and before retirement. Planning to make a million (I assume from what you’ve said it’s antiques, or you hope to find unidentified valuable items at low prices and sell on at higher?) is a gambling mentality. Doesn’t matter if it’s the horses, the slot machines, online gambling or this. Be careful.

As above, there is much more alluded to in your post, but without details, it’s difficult to choose which things to address. The 10 credit cards is a huge red flag though.

Have a look at Rebel Finance School. It is a free structured course. Really helped me.

Essentially you need to work out what you value and then becomes easier to manage your actions.

Structure is
Increase the gap between outgoing and incoming
Get a 1k emergency fund
Pay off expensive debt over 5% interest first
Save 3-6 month Expenses
Invest your gap
Allow interest to do it's thing

Balance transfers are not free. You need to invest and stay for the long term. All of this is covered in depth on the course.

What is your number? What you are worth after calculating assets minus debt.

I use 0% credit cards but never 10 and I always have enough in savings to clear it if I want to.

Thank you so much for your answers!

@Bgasfraudfraud ,thank you, and you're right, my post wasn't very specific. Numbers are: Debt over 10 cards is £22.1K. I could pay them all off and have 11K of money left (includes holiday savings though). I also have £28K of stock I can resell if I ever want to. In this business, you are supposed to hold on and wait for the best price, but that's what I'm not good at.

Yes, @3LemonsAndLime , you are completely right, I do have a gambling mentality. I had to stop playing the lottery, because when I last played, I bought £30 of tickets in a week! Thank you so much for saying it so bluntly. I tried to get a therapist to help during Covid, but she said there was nothing wrong in buying beautiful antique things, and she made me worse. Yes, I did hope to magically make a million (the most I made was an £8K profit in an auction, but also losses of up to £2K other times, so it's not an easy business).

@SplashAndTurn , thank you for the tip, it sounds great, and I have saved Rebel Finance School in my bookmarks and will look at it this evening. It is very motivating to know there's a clear path to follow. I think the only solution for me is to never use debt again.