Finances and Realisations

Well holy moly – today has become quite a day of thinking about my finances.

Over the weekend I attempted to sign up with a new ISP that required a credit check – it was declined – but is being reassessed apparently. I was gobsmacked. I haven’t been refused finance, or anything that requires a credit check, since I was 18 years old.

So I went hunting for information on credit histories. Apparently some “lenders” (and phone companies) use a Credit Score rather than looking at your actual Credit Rating. The score is just a summary of you without the specifics. Your credit rating report is the thing that gives the details. So based on this information, I can understand why it was declined – I have moved a lot and that decreases my “stability” as far as credit risk is concerned. Also, once I’m 31 (so next July) I hit the next age bracket and that is seen as more secure as well.

Fair enough – I’m not happy about it, but I can understand why it was probably refused initially and I realise that they haven’t seen the full story.

But, whilst searching, I also bought a copy of my credit report from one company for $32.95, and have ordered a free one from the other company that look after these matters (it takes a while to come through though). I have received the first report via email and can see clearly that I have had people enquire about my credit history (and the report goes into details showing who, when, how much and for what purpose), and that I have absolutely no defaults or detrimental issues to worry about – which is exactly what I thought it would be. I’m curious to see if the other report is identical – I can’t imagine any reason it wouldn’t be.

And, just to really make me think finances today, I received my 2008/2009 Superannuation Annual Report. I have lost around 10% of my superannuation in the past 12 months. I think this is the first time the GFC has actually hit me directly - and today I have it in black and white.

So, I’m feeling very sober about all of this news. I want to be able to provide for my immediate and long term future and I need to start thinking more seriously about this.

This leaves me wondering if I want to actually go back into the paid workforce sooner than I had anticipated or continue to stay at home. I didn’t really want to start paid work until Miss 3 is at school though – that’s in 2011. But at the same time, I am realising that I want to do more to secure my financial future.

However, I feel this is a time in my life when I need to accept that for the next 15-ish months, I need to concentrate on minimising my expenditure, saving what I can, checking into my super - is it the right one for me, and really thinking about what it is that I want to do in my future - then, go back into paid work once my girls are that bit older.

But “what I want to be when I grow up” is a whole other issue!