Archive for October, 2007

Newcastle to Barcelona

So just as i was getting back into the swing of blogging at the start of this month I was offered some work away again which left little or no time for blogging due to the schedule! So keeping in the spirit of blogging, here is a rundown of the mammoth drive to Barcelona!

Newcastle:

I left Newcastle on Thursday morning and headed south to Portsmouth with a van full of gear, this was pretty un-eventful until I just passed Watford where my phone, which was also my Sat Nav needed charging. I pulled over the side of the rode and plugged my phone into the charger and the other end in to the cigarette power point only to find out that the socket in the van didn't work! This was the moment I realized how much I had begun to take may Sat nav for granted! Undeterred I reverted to the old fashioned way, followed the signs and eventually got to the ferry port! Being a stranger to Portsmouth ferry terminal i wasn't sure where to go but after about 30 minutes i had checked through customs etc and was in the line waiting to board the ferry, this was the rainy view from the van!

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Home For the next 36 hours!

Eventually I was called to drive the van onto the ferry (Pride Of Bilbao) and finally found my cabin, I had every intention of taking a look around the boat but I must have been tired from all the driving that i just fell asleep after lying in the bed for a few minutes! The following day (After breakfast!) I was greeted with great weather once I ventured on deck which made a nice change from the not so sunny weather in England.

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Calm as a duck pond!

Later on in the drivers lounge where all the freight drivers can relax I got talking to a few other drivers and after asking what was the best way to get to Barcelona from Bilbao on of them said i could follow him as he was going there. The guy i was due to follow was called David George and I owe a great deal of gratitude in him helping me across Spain. The following day I was up at 5.30 am and went down for breakfast, not-long after breakfast we got the call for drivers to go to their vehicles ready to disembark, coincidently when we got there Dave was parked directly behind me on the car deck! After a little waiting the boat docked and we drove off and got through customs with little hassle apart form a customs guy asking for a slip of paper which i wasn't given, eventually he just shrugged and waved me through! After leaving the port we were finally on our way climbing the hills outside of Bilbao ready to head across northern Spain. After about an hours driving we were heading toward the national highway with some pretty nice views around us! What i did find quite entertaining was every now and again there were MASSIVE cutout's of bulls mounted high up on the hills, heres a few i took pictures of!

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Theres one!

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Theres another!

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AND another!!!!

After a couple of fuel and coffee stops we pulled in at a cafe near Zaragoza which was pretty much half way on our journey to Barcelona. All the food was traditional Spanish and when we came to get served Dave asked me if i liked tripe, not being one to shy away from something new i said I'm not sure but ill give it a go. So Dave ordered lunch and said he would tell me what was in it after I'd finished eating it! I wasn't quite sure what to think when the waiter brought the plate to our table as shown below in the pic!

 

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Mmmmmmmmm ?!?!?!

 

I started eating and the flavor was quite nice but i couldn't get away with the texture, it was a bit too fatty and rubbery! Eventually i managed to eat about half and had to give up as the texture just didn't suit my pallet! Then came the reveal on what i had just been eating, get ready for it…… Tripe (Cows stomach which I knew about), pigs ears and pigs trotters!! It was an interesting meal which I'm glad i tried but wouldn't be ordering it again! I cant remember the name of the dish but apparently it is a traditional Spanish dish, if anyone reading this knows the name please let me know!

After lunch we st off dringing again, stopping along the way for a drink so as not to tire of the driving, the were quite a few fuel stations along the way, some which appeared to be miles from anywhere!!

 

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Welcome to nowhere!

 

Finally, about 18.00 we arrived in Barcelona, Dave was going to the port and i was headed to the Hilton Diagonal which was pretty much in the center of Barcelona. I found the hotel straight away but ran into a problem with parking, it seemed to be that there were lots of underground car-parks but nowhere big enough to fit a large 3.5 ton van! Eventually after driving around for 2 hours I found a place to park the van and taxied back to the hotel. A word of advice to anyone driving to Barcelona in anything bigger than a car is organize parking before you get there! The following few days were spent setting up and operating the conference with my colleagues who had the pleasure of flying from Newcastle to Barcelona, heres a couple of pis of some of what we were actually setting up.

 

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Main Stage

 

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Secondary Stage

 

Once the conference was all over (3 days later) everything was packed down put back in the van and I repeated the exact same trip in reverse! It was a great experience driving across the Spain but next time I've already reserved my seat on the plane!

 

If you enjoyed this post please feel free to buy me a gingerbread late! mmmm!

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A quick guide to Mortgages!


Before i started the process of moving house I knew very little about mortgages, there were so many to choose from and I was quite skeptical about the "hidden costs" with some offers! So here is a very quick post to anyone who is considering taking out a mortgage soon, a kind of beginners guide to mortgages! Being first time buyers we spent a lot of time trawling through the wide variety of cheap mortgages on offer, some were good and some just appeared cheap before you included the setup cost etc.


How mortgages work

A mortgage is kind of just like any other loan the main difference is is that you are lending the money and using your property as the collateral. For example the bank can be safe in the knowledge that if they lend you £200,000 then your house is worth that amount so if something goes terribly wrong and you couldn't pay your mortgage (which it wont unless you lend more than you can afford and don't take out payment protection!) then the value of the house would cover the cost of the money lent.

So here is the nitty gritty, say you wanted to lend £100,000 and the property you want to costs £100,000 then you would need a 100% mortgage, e.g you needed to lend 100% of the value of the house. If the property you wanted to buy was worth £200,000 and you only needed to lend £100,000 (generally applicable to remortgages )then you would be taking out a 50% mortgage, e.g lending only half the value of the house. Lending a lower percentage of the value of the house will generally give you a better rate of interest on your mortgage which we will come to in a moment.

The interest on your mortgage is one of the crucial factors which will determine what you pay on what you have lent, if we use the £100,000 example as a figure we can find out what we would be paying back on different interest rates. Currently (October 2007) here in the UK the average interest rate fr a 100% mortgage is about 7% this means if we borrowed £100,000, each year we would pay 7% in interest which is £7,000 just for the privilege of being lent all the money. This is where the different mortgage types come into effect, if you took out an interest only mortgage over say 25 years you would only ever pay off the interest on your mortgage, e.g £7,00 per year as in the above example. This means that after 25 years of paying £7,000 per year you would still owe the mortgage company the £100,000 borrowed. With interest only mortgages it is your responsibility to save separately over the length of the mortgage period to pay off the final balance.

Repayment mortgages work virtually the same as the above example as far as interest is concerned, the only difference is is that instead of just paying off the interest you pay a little extra which pays off some of the initial balance each year. So instead of just paying off the interest of £7,000 per year you would pay a little extra probably £8,000 per year. £7,00 would pay the interest chargeable on the mortgage and the extra £1,000 would pay off some of the initial balance. So after 1 year you would only owe the bank £99,000. This is where it gets a little complicated, now you would only pay interest on £99,000 instead of £100,000 as you have paid off some of the initial balance meaning that the interest chargeable for the second year would be £6,930, thats £70 cheaper than the previous year meaning as you continue to pay £8,000 per year toward your mortgage each year (£6,930 in interest and £1,070 off the balance) you are paying less interest and paying more off the balance until eventually the initial balance is fully payed off!

So those are the two basic types of mortgage, now well look at the different types of interest rate schemes you can choose from. The lower the interest the less money you will pay on what you are lending, there are several schemes which are available. A fixed interest rate is a rate which can be fixed for a set period of time meaning you know exactly what interest you will be paying for that set period of time. The other scheme is a tracker, this basically means that the interest rate on your mortgage is linked to the national bank's base rate which means that you interest rate can go up as-well as down a few percent above the banks base rate. Some months you could be paying more interest and others you could be paying less!

So there you have it, mortgahes in a nut shell, all you need to do is combine the different components of the mortgage and decide which fits your budget best, Interest only witha fixed rate for several years or a repayment tracker, or even an interest only tracker. Once you break these down into their component parts it diest seem so terifying at all. I am not a qualified adviser so plese consult a financial adviser before making any decisions you are not sure of.

If you enjoyed this post please feel free to buy me a gingerbread late! mmmm!

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The Secrets of getting rich with compound interest

Recently I received an email asking me how to get rich, taken aback with the question as theres no surefire quick answer i decided to rack my brain at the safes way to get rich without any or VERY LITTLE risk. There are thousands of get rich quick schemes out there saying you can earn $1000 per day within 3 months but i prefer to take the get rich slowly approach! I personally have several strategies on the go currently all delivering a little profit here and there but most importantly all of these investments/business are continually growing little by little each day. The effects may not be apparent straight away but when you view these over the long tern you realize what a staggering amount of money they will return. One of these is quite simply one of my hight interest savings accounts, it may not seem very glamorous but read on and the effects of compound interest will become apparent!

What is compound interest?!

Compound interest is probably the best thing you can learn about if you are serious about becoming rich, this wont make you a millionaire overnight will make you rich over the long term! All savings accounts pay a percentage of interest on whatever money you have in for a period of time. For example, if you invest £1000 in a savings account with an interest rate of %6, after 1 year you will have earned £60 in interest (6% 0f £1000) leaving you with an end of year balance of £1060. Not bad eh? £60 for doing nothing apart from letting the bank look after your money for you!

The Clever Part!
Now if you do exactly the same for another year and invest another £1000 the starting balance will be £2060 which will comprise of £1000 initial investment, £60 interest and another £1000 yearly investment. At the end of your second year you will be due for your next interest payment which will be 6% on what you have put in (£2000) plus your interest (£60) so now you are earning interest on your interest!! Just to quench your curiosity your balance for the end of year 2 would be £2183.60 through compound interest even though you only initially invested £2000. So after 2 years you have earned £183.60 in interest, once again, not bad for leaving your money in the bank!

I know it doesn't really seem like much!
I know that earning £183.60 over 2 years doesn't seem like much, but i said this was a long term strategy, were never going to get rich quickly! Lets skip forward 10 years and see how our investment would look like. So each year for the previous 10 years we have deposited £1000 into a high interest savings account letting the interest build up and earn interest on the interest on the interest….and so on! At the end of year 10 using my spreadsheet to work it out our balance would be £13971.64, thats an initial investment of £10,000 and earned interest of £3971.64. Now things are looking better, nearly 4K earned in interest for putting away a small yearly sum. Once again lets skip forward another 10 years and see how it has grown in 20 years.

So here we are, 20 years down the line, we have religiously been investing away £1000 each year into our high interest savings account. Not only that once again our friend, compound interest has been working its magic and we now have a balance of £38992.73. Thats a magnificent £18,992.73 of interest, after 20 years we have nearly doubled our money, if we had stuck it under the mattress we would have saved only £20,000 compared to the compound interest we could have earned. The secret of compound interest is time, investing a small amount over a LONG periods will give much greater returns than investing larger amounts over the shorter term.

If you are curious to see what would happen if we continued to invest for another 10 years, totaling 30 years all together here is what we would have earned. At the end of year 30 our balance would be £83,801.68 from our investment of only £30,000. This would have earned us a whopping £53,801.60 in interest, more than doubling your initial investment! And just a quickly for year 40 our balance would be £164,047.68 all from the effects of compound interest!

To Sum It Up

Once again i must reiterate that for compound interest to have the desired effects you pus invest over the long term, even just a little each week/month/year can have staggering effects. If you do decide to invest like this try and use a tax free savings account, you don't want the tax-man taking a chunk of you savings each year, this can seriously detract from the effects of compound interest! This is just a quick guide to show you the benefits of compound interest and putting a little aside each year, for further reading I swear by this book, its a great read and an education for people of any age! Learn To Earn

I am not a qualified financial adviser so before making any decisions you are not sure of please consult a qualified financial adviser.

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If you enjoyed this post please feel free to buy me a gingerbread late! mmmm!

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Unseen Circumstances!

If you are a regular visitor to my blog you will have probably have noticed that I mysteriously disappeared after announcing that i was back from a blogging break! Well this time i am back to blogging, for the past 2 weeks I have been at work in Barcelona working on a conference in a very nice hotel called The Arts. I didn't get to see much of Barcelona but what I did see was very nice, nice enough to warrant looking at booking a city break there soon! The only chance i did get to see some of the city was when we needed to buy some extra spray mount glue which roughly translates to "Pegamento en spray", I spent a good 2 hours asking at different shops in the city for this stuff then when I did find a shop which sold it they had loads! It was a nice chance to get away from the conference room and see a little of the city!

So right now I'm back in the UK sorting out my blogging priorities, since my last post i still need to post my September earnings and have a whole load of other posts lined up! So now I'm back, watch this space!

Andy

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Euromillions lottery <– What's this?

If you enjoyed this post please feel free to buy me a gingerbread late! mmmm!

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