How to get Financially Healthy

Money Saving, Savings Advice No Responses »
Feb 052012

Have you ever wondered why some people always have money while others don’t? If you’re on the side which doesn’t have money, you could be Financially Drunk. What does that mean? Basically, that you can’t keep your finances in check and even though you work, there never seems to be enough.

Getting your finances back to a healthy place can be tough. It’s a little like losing weight: great in theory and hell in practice.

Why is that?

Much as eating habits can cause obesity, spending and saving habits can cause financial anorexia when one is out of balance with the other. How do you start getting financially fit?

Identify the Problem

This can be difficult when you don’t know where to begin. To start understanding your spending habits, you need to log them. Literally, write down each transaction so that you can see how much you are spending on clothes, entertainment, bills, etc. You can do this by carrying a pocket book and writing down the amount and what you bought right after you’ve made your purchase. Alternatively, you can use a smartphone app. Moneybook is excellent.

At the end of each month put all your data into a spreadsheet with the appropriate categories; clothes, food, entertainment, etc. Soon, you will have a clear picture of what is coming in and what is going out. More importantly, you’ll see in which areas you’re having financial problems. Is it that you spend too much money on entertainment, or is that that you’re just not paid enough in the first place?

Spending Too Much

If there’s enough coming in, but too much going out, then you need to examine the reasons why you’re spending all of, or more than, you earn. If something isn’t right in your life, you’re more than likely compensating for it by creating a habit that is causing you to spend unnecessarily.

We’ve all seen it in others: like the girl in the office who has to be wearing the latest designer clothing, but earns less than you do; or the colleague who overeats because they are bored. Both of these people have habits that are costing them money.

If you have a habit that is financially detrimental, it’s worth reaching out to help organisations or professionals, like therapists, that are qualified to help.

Not Earning Enough

If there isn’t enough coming in to start with, it’s likely that you’re underselling yourself professionally. Perhaps you’re just not good at selling yourself and feel bad about discussing money with your boss, or clients. If that’s the case, find yourself a coach, or mentor who is running a successful business, or doing well in their job and ask for some friendly advice over a cup of coffee. Take a course that will teach you how to deal with negotiating pay confidently and successfully.

Getting Out of the Rut

If you have a deficit and your dreams are on hold because of it, it’s good to get out of the rut and to a place where your goals feel possible again.

Get a second Job.

It doesn’t have to be waiting tables, although that can be lucrative in some establishments. Do you have a skill that’s marketable? Can you build websites, fix cars, or mend clothing? Can you solve a problem for someone else and charge them for that service? If so, you can turn that into a second income.

Pay Down Debts.

If you have credit card, or store card debt, it’s a good idea to pay it off as fast as possible because the longer the debt is hanging around, the more it’s costing you. There’s nothing wrong with having credit, but there is something wrong with a credit card statement you’re scared to look at.

Getting Cash Quick.

If your debts aren’t large – under 10k – it’s worth dedicating a period of time to making and throwing money at that debt. Heard of Ebay and Amazon? Dig out all your clutter and sell it off. Volunteer for a clinical trial. Companies like GSK medical trials pay up to £2000 or $2500 for healthy participants and will accept volunteers back for up to four trials a years.

Financial Sobriety is Possible

Taking control of your finances ultimately means taking control of your life. And there’s no better, or healthier feeling than that.

Posted by at 4:28 pm Tagged with: , ,

Earn a £5 voucher and clear out your clutter !

Family Money Saving, Money Saving, Money saving for Children, Savings Advice No Responses »
Oct 252011

As any parent will tell you, they always seem to have items that their children have outgrown or no longer need that they would like to see go to a good home. Now parents can turn these items into a £5 M&S voucher.

The website www.mygyko.com which enables you to sell, swap or giveaway to other parents is offering a £5 M&S voucher when you list 5 items on the site by the 31st October.

Parents who are looking for ways to earn some extra cash will find this an ideal place to sell outgrown uniforms and sport kits that are filling up their cupboards and garages. With the added incentive of earning a £5 voucher for listings made by the end of October, this half term is the perfect time for parents to de-clutter and sort out the items that their children no longer require.

With the site free to use for both the parents listing items and the parents acquiring items now is the perfect time to get listing.

Don’t keep GYKO a secret though help spread the word and you could earn another M&S voucher. Pass on the email addresses of 5 friends and you will receive a £5 M&S voucher.

It’s the new way to buy, swap, sell or give away unwanted children’s ’kit’ – from school blazers to boots, uniforms to unitards and trainers to toys.

GYKO is the free online local community marketplace for listing used, second hand, nearly new and pre-owned:

School wear
Dance wear
Science equipment
Clothes
Books
Sports equipment
Musical instruments
Audio equipment
In fact anything that your kids no longer want, need or can fit into!

So don’t waste money buying expensive new kit – get bargains on GYKO.

The free, friendly, fun alternative to eBay!

Posted by at 1:12 pm Tagged with: , , , ,

12 easy Money Saving tips

Money Saving No Responses »
Sep 132011

1 Look over your membership or season ticket to see what extra benefits are conferred. These might be entry to other venues or discounts in certain retail outlets, cafés or hotels.

2 Read the paperwork that comes with your credit card. It may offer, say, an extra 12 months’ or so warranty after the manufacturer’s warranty expires on such as electrical goods purchased with the card.

3 If you have opted for treatment on the NHS, or found yourself compelled to go down that route even though you had private medical cover, check if the insurer will make a cash payment in lieu of your using private hospital accommodation.

4 If the car windscreen smashes see if the insurer will replace it free of charge with no strings attached.

5 Consider if there is something that can be deleted from an insurance  policy which you are paying for but do not need.

6  Sometimes there is a requirement with certain types of home insurance that certain types of locks on door or windows or a burglar alarm will lower your insurance costs.  So it might be financially beneficial to ensure you have the type of locks secured on your property that the insurance company requires.

7  Car insurers are very inquisitive when calculating premiums and will hold policyholders to anything they have committed to. They will probably want to know whether a vehicle has been adapted and about any significant change in the miles driven. Is there a special undertaking about where it is kept? Perhaps it needs to be in a locked garage overnight.

8 With travel insurance, the activities section may have some shocks about cover for any dangerous, or not so dangerous, sports.

9Then there are those complicated deposit accounts which, as a quid quo pro for yielding a more competitive rate of interest, have complicated rules that are easy to flout accidentally. A single small cash withdrawal can, in some instances, lead to the rate on an account plummeting, and anyone with such an account needs to be aware of this.

10 Look out, too, for the type of fixed rate product whereby possibly 90 days’ interest may be deducted as a penalty if the saver backs out even before the start date.

11 Income protection policies need particular scrutiny. See what is deducted before an income figure is arrived at.  Find out whether the insured has only to be unable to pursue his “own” occupation before benefits become payable or if it has to be “any” occupation.

12 See if household cover will reimburse any cost incurred in reaching the source of a problem. This could involve wrenching up floorboards, for example, to get to a leaking pipe.

Posted by at 4:20 pm Tagged with: ,

Equity Release

Money Saving No Responses »
Sep 132011

Equity release is a way for homeowners to raise extra cash for their retirement. It is available only to those who own their home outright and are aged 55 or over.

You can receive a lump sum or take regular or occasional income and stay in your home until you die. 

The average amount of equity released is £47,323, according to Safe Home Income Plans (SHIP), the average equity release is £47,323. 

The equity release cash is most commonly used for home improvements, paying off debts or going on a dream holiday.

There are two types of equity release plan — a lifetime mortgage, and a home reversion plan.

There are generally three things that make people wary of equity release (1) their reluctance to reduce an inheritance left to loved ones (2) anxiety that it could be risky, poor value or complicated; and (3) concern it may reduce entitlement to means-tested benefits.

It is the first of these that can cause real problems for families. So you MUST discuss plans with your beneficiaries.

Equity release companies are much more respectable than in the past. Make sure you choose a provider that is a member of SHIP.

Its strict code of practice guarantees no customer will be forced to leave their home or owe more than their property is worth.

Since 2004, the FSA has regulated all equity release providers and brokers — so before dealing with anyone, make sure they are on the FSA register

Posted by at 3:51 pm Tagged with:

An Autumn makeover for your finances

Money Saving No Responses »
Sep 122011

The autumn is a good time to review your finances.  Here are a few ideas…..

Get a better energy deal

Now is a good time to switch your energy because you are more likely to be in credit with your energy company after the summer, and won’t have to pay a huge bill if you switch.

Five of the big six energy suppliers in the UK have recently raised their prices.Unless you are ultra-cautious, it may make sense simply to find the cheapest deal you can, knowing that you can get out of it if prices fall, rather than taking out a fixed rate deal with penalties for moving during a fixed term.

If you choose to take gas and electricity from the same supplier (a dual fuel deal), you will pay less if you offer to pay by Direct Debit, and if you choose to take gas and electricity from the same supplier.

Sites such as uSwitch will be able to help you find the cheapest deal. 

Review your mortgage

Some experts are even suggesting that the Bank Rate could fall to 0.25 per cent. That is bad news if you are in the middle of an expensive fixed-term mortgage rate, but good news if you’ve got some flexibility to move, or are about to come to the end of a deal.

Buyers who have significant equity in their properties will be able to get the best deals.

Those who want the security of a fixed rate have several options. There seems little point in fixing for a two-year period when this may be just the point at which interest rates begin to rise.

For those who want some long term security there are five-year options, and even longer ones that may be attractive.

Change your landline

BT has just announced yet another price increase in December, while TalkTalk is raising prices in October. If you are with either of these providers, chances are you are paying too much. You could halve the cost of your monthly line rental now.It can be difficult to negotiate the different types of phone contract available, especially if you have broadband as well. The best way to start is to check where you are in your contract. BT is one of the few companies that still has ”rollover” contracts with termination penalties, so check your contract.

If you can switch, several websites allow you to check landline prices..try uswitch.com for more details. If you use broadband as well you may find it cheaper to consider a bundle offer.

Posted by at 9:53 pm Tagged with: ,

Protect your savings from inflation

Money Saving No Responses »
Jun 082011

While low interest rates are good for people with mortgages it isn’t necessarily good news for savers with their savings being hit with rising inflation, which in real terms means that you are getting a negative return on these savings.

The average easy access savings account currently pays 0.97% gross on a £1,000 balance – although some pay as little as 0.01% and the highest paying account pays just above 3%.

So how do you beat low interst rates and rising inflation to inflation proof your savings.

So, is there anything you can do to inflation-proof your savings?

You can invest in Open Ended Investment Companies (OEICS) or unit trusts that  have funds investing in inflation linked and/or other fixed rate investments that are targeted to have a return that matches or betters inflation.

There is no guarantee that they will meet their targeted performance and there is also capital risk in that the price of the units can fluctuate.

Most of these funds invest in gilts rather than corporate bonds.

M&G Investments has recently launched its UK Inflation Linked Corporate Bond Fund that invests in index-linked corporate bonds, Floating Rate Notes, index liked gilts and other fixed income instruments. It aims to achieve a return that beats CPI over the medium to long term.

Aegon’s Inflation Linked Fund also specifically aims to outperform inflation, although it can have up to 60% exposure in equities.

Bear in mind that you may have to pay an initial charge to buy an OEIC – or a bid/offer spread in the case of a unit trust – and that there will also be an annual management charge.

You can hold these funds in a stocks and shares Isa which would remove much of any potential tax liability. If held outside an Isa you may be subject to income tax on interest received and capital gains tax on any gain when you sell the units.

If you want to invest in an OEIC or unit trust you can do so either directly through the provider or through an independent financial adviser.

Posted by at 12:52 pm Tagged with: , ,

10 ways to save money

Money Saving No Responses »
Mar 092011

 

Use a Pay-As-You Go mobile

Is your mobile phone contract really necessary?  Do you really need all those minutes and texts that come as part of your package.  If you hand over £50 a month to your mobile phone company, that’s £600 a year – or around £1,000 of your gross salary. But you can buy a pay-as-you-go phone for as little as £30 and only pay for the odd call as and when you need to.   Save: £100s

 Make a shopping list
Food shopping forms a significant part of our monthly outgoings and the supermarket is where the bulk of the money is spent. Tesco takes £1 in every £8 spent by UK shoppers. But be warned, stores spend a small fortune studying ways of making us part with more of our money than we would otherwise intend to. Have you ever wondered why your favourite song is playing in the background as you navigate the aisles? Have you even noticed the background music? Possibly not, but you will have noticed at the checkout that the bill is often more than expected.  Simply make a shopping list and only buy what you need.  Save: £500+ per year

Shop around for the cheapest household insurance
Can you afford to foot the bill if your house burns down? Probably not. but it is advisable not to pay over the odds for the same policy available elsewhere because you can’t be bothered to shop around? Possibly, but it’s not advisable. The internet has made finding cheaper insurance easy and you can compare hundreds of policies in minutes.  Saving: £100s
 Don’t automatically renew annual travel insurance
If your annual holiday insurance policy is about to expire and DON’T automatically renew the policy. You’re handing your money over to cover an eventuality that won’t happen.  Simply restart the cover again the next time you book a trip, this means that you are not  seeking cover for periods you don’t travel…thereby automatically saving money.  Save: £50
 Use your Isa allowances
If you’re not already aware, you can save up to £3,000 a year in a tax-free savings account called an Isa (for the more financially savvy there’s also a stocks and shares Isa). It means you don’t pay any tax on the interest accrued so, if you have spare cash in your current account, this is the difference between earning next to no interest and up to £150 a year. Save: £100+

 Claim your benefits and tax credits
The Government has put benefits at the heart of the family budget and it’s your money so make sure you’re claiming it. That includes Child Benefit, Working Tax Credit, Child Tax Credit and other employee-related tax benefits. Save: £100s

 Bin buy ready meals
If TV chefs can knock up a meal from a bag of random groceries including an aubergine and a packet of sultanas – so can you. How easy is it to make a casserole…even easier if you use a slow cooker.  Ready meals may be convenient, but preparing your own food saves money.

Shop online
The internet is gradually taking over. Online grocery shopping is getting better all the time and there are plenty of comparison websites to help find the best prices for bigger items. Give it a try, unless of course you like fighting your way through supermarket crowds.  Save: £hundreds

Use your local library
The local library and save money as you don’t usually read a book more than once. You’ll won’t need to buy another cookbook, guidebook, textbook or manual again and if you can bear to wait a few weeks in the queue for the latest blockbuster, you never need to buy books again. CDs and videos are great value too.  Saving: £100′s

Sell your clutter on eBay
Sell all your unwanted items on eBay.  Ebay, the online auction house, has opened individual sellers to a world of buyers. And you can flog anything for the cost of a small commission. Tip: you may want to buy a few items first to build up your rating as a respectable eBayer before you start selling. Income: Will depend on what you want to sell

Posted by at 3:30 pm Tagged with: , ,
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