Wealth

 

 

Well, I’ll give it to good ‘ole P.T. Barnum (the Greatest Showman and Roll up, Roll up, circus fame) with his infamous quote ‘Money is a terrible master but an excellent servant’. Never a truer word said, especially if you want to start to make money work for you.

It’s time to take control, pop your big girl pants on, and assign some tasks to achieve your financial goals and make for a less stressy money future.

That’s me talking to myself. Righty ho. Where to start?

1. CREATE A FINANCIAL PLAN

A financial plan, or money management worksheet, just tippy type it or write it down. You need to know your starting point otherwise you’ll be aimlessly wandering through a bliss of one card/phone/watch KA-CHING tap, tap, tap, after another. Which hey is great if you have an endless pot of money, go fill your boots. If you haven’t well, look, I know it’s painful. Me and spreadsheets know where you’re coming from.

So what are your goals?  Both short-term and long-term. Do you want to pay off your credit cards? Are you saving for a house, car or that dream holiday that has been on your to-do for far too long? What about retirement planning?

By really thinking about what you want to achieve and how you are going to do it, you can make your money not only work for you but work effectively for you. Hooray.

2. PUT YOUR MONEY TO WORK STRAIGHTAWAY

Check out CHIP an instant access savings account managed via app. Powered by Clearbank, with a mission to ‘build wealth for our generation’. CHIP keeps its eye on the Bank of England base rate and reacts quickly.  Their instant access account is currently offering 4.84% AER. So if, for example, you deposited £1000, assuming the rate didn’t change in the 12 months (back to governed by the Bank of England), then you would earn £48.40 interest.

Although that doesn’t sound that much, with flexibility in mind and as a starting point, it might be a good place to start. You can, of course, also increase your monthly contributions to bump up your monthly interest.

Popped too much in and have a sudden financial emergency where you need your cash? No problem with instant access. Of course, that has an effect on the savings you are accruing, but it provides peace of mind knowing that your money isn’t locked up requiring multiple form filling and angst to get your hands on.

No minimum amount restriction, invest from £1 up to £250,000. Additionally, there’s no limit on the number of withdrawals or a reduced rate because your balance is lower.

If you have a bit more cash, (£1000 minimum), and also like the idea of supporting a good cause then head on over to Oxbury. They also offer an instant access account – variable rate, currently at 4.94% AER variable rate, note if you go below £1000 that rate will change.

Oxbury’s mission statement is ‘every pound saved with Oxbury helps support British farmers and food producers’ thereby backing British farmers and British agriculture.

If you have a large lump sum and are more flexible on access, interest and restrictions then an ISA might be the way to go.

3. BILLS. BILLS. BILLS.

If all your cash is currently tied up on paying bills and you can only dream about saving, then howsabout checking out round-up apps?

Round-up apps are money apps that make it sooo easy for you to start to save. Firstly, you decide on the level of round-up. It might be to the nearest £1, so if you purchase something that costs £2.20, the round-up would make it £3.00. The difference of 0.80p would then go into your app savings pot. If you’re really on a mission, you could set it up to the nearest £5.00. So out of a £2.20 purchase, £2.80 would go into your savings pot.

From personal experience, just using the nearest £1 round-up put a not-to-be-sniffed-at, extra £70 into my savings pot in one month.

Your money will go into pockets, savings pots, or wallets and be accumulated there. If you find that you need the money that month you can pause round-up payments or indeed go ahead and make a withdrawal back to your bank account.

It’s saving without realising you are saving. Well, of course, you realise you are saving because you’ve set it up, but hey you know what I mean. P-a-i-n-l-e-s-s.

Round-up apps to check out include Plum, Spare Change (part of Revolut) and if you bank with Monzo they also offer auto save and round-up.

4. CREATE A BUDGET

By giving yourself a budget, be that daily, weekly, or monthly, you are helping yourself to manage your finances effectively. Most banks offer an overview/breakdown of where your spondoolies are going. Who doesn’t love a colourful all-singing-and-a-dancing bar or pie chart? An insightful peek (which also might lead to a shriek) into where your money is going. A large chunk of pie shown for takeout coffee? Time to redirect and make that money work for you.

Back on the quote theme this week. I find them great for a bit of kick-up-the-bum motivation, soul-searching reflection, and oh go on then, please guide me to make zillions. Are you listening Universe? So without further ado, here are my favourite money wisdom quotes aka money quotes. Get them there pom poms at the ready. 

MONEY QUOTES

1. ‘Wealth is not about having a lot of money, it’s about having a lot of options’. – Chris Rock

2. ‘The best investment you can make is in yourself ‘ – Warren Buffett

3. ‘Formal education will make you a living; self-education will make you a fortune’. – Jim Rohn

4. ‘Wealth is the ability to fully experience life’. Henry David Thoreau

5. ‘The key to making money is to stay invested’. – Suze Orman

6.  ‘Wealth is the ability to give back’. – Anonymous

7.  ‘Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver’. – Ayn Rand

8. ‘The money you make is a symbol of the value you create’. – Idowu Koyenikan

9. ‘Wealth is the ability to say yes to the things that matter most and no to the things that don’t’. – Anonymous

10. ‘It’s not about the money you make; it’s about the difference you make in people’s lives’. – Michelle Obama

11. ‘Beware of little expenses. A small leak will sink a great ship’. – Benjamin Franklin

12. ‘Don’t wait for opportunity. Create it’. – George Bernard Shaw

13. ‘The more you learn, the more you earn’. – Warren Buffett

14. ‘Your income is directly related to your philosophy, not the economy’. – Jim Rohn

15. ‘Everyone wants to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down’. – Oprah Winfrey

16. ‘Your wealth is determined by how much you can give, not how much you can get’. – Bob Proctor

17. ‘A lack of money is never a problem. A lack of ideas is the real problem’. – Ken Hakuta

18. ‘Financial freedom is available to those who learn about it and work for it’. – Robert Kiyosaki

19. ‘There are people who have money, and there are people who are rich’. – Coco Chanel

20. ‘You must gain control over your money or the lack of it will forever control you’. – Dave Ramsey

21. ‘Money is power, and women need more of both’. – Diane Von Furstenberg

22. ‘Money is a terrible master but an excellent servant’. – P. T. Barnum

23. ‘If you don’t find a way to make money while you sleep, you will work until you die’. – Warren Buffett

24. ‘The price of anything is the amount of life you exchange for it’. – Henry David Thoreau

25. ‘Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this’. – Dave Ramsey

26. ‘Empty pockets never held anyone back. Only empty heads and empty hearts can do that’. – Norman Vincent Peale

27. ‘The first rule of investment is don’t lose money. The second rule is don’t forget the first rule’. – Warren Buffett

28. ‘Financial freedom is not just about having money; it’s about having control over your money’. – Anonymous

29. ‘When money realises it is in good hands, it wants to stay and multiply in those hands’. – Idowu Koyenikan

30. ‘A budget is telling your money where to go instead of wondering where it went’. – Dave Ramsey

31. ‘In investing, what is comfortable is rarely profitable’. – Robert Arnott

32. ‘Money can’t buy happiness, but it can make you awfully comfortable while you’re being miserable’. – Clare Boothe Luce

33. ‘Financial freedom is available to those who are willing to live differently’. – Dave Ramsey

34. ‘Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas’. – Paul Samuelson

35. ‘The four most dangerous words in investing are: ‘This time it’s different’. – Sir John Templeton

36. ‘If you buy things you don’t need, soon you will have to sell things you need’. – Warren Buffett

37. ‘Do not save what is left after spending; instead, spend what is left after saving’. – Warren Buffett

38. ‘Money gives you the power to change things for yourself and for others. Use it wisely’. – Melinda Gates

39. ‘Don’t let the fear of losing be greater than the excitement of winning’. – Robert Kiyosaki

40. ‘The question isn’t whether you have the money; it’s whether you have the hustle’. – Nicki Minaj

41. ‘How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case’. – Robert G. Allen

42. ‘Money is a blank slate that gets its value from the energy and meaning we give it’. – Jen Sincero

43. ‘I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful’. – Warren Buffet

44. ‘Success isn’t just about making money. It’s about making a difference’. – Anonymous

45. ‘Money is fun to make, fun to spend and fun to give away’. – Sara Blakely

46. ‘Wealth consists not in having great possessions, but in having few wants’. – Epictetus

47. ‘Don’t think money does everything or you are going to end up doing everything for money’. – Voltaire

So that’s my 47 money wisdom quotes. Fess up that number 32 made me chuckle. To help you along with number 30, wondering where your money went, head over to 5 Reasons Why You Need A Money Management Worksheet. Back to money quotes, let us know your favourite in the comments!

Ok, ok, not the most thrilling of headlines, I admit. However continuing on our Wealth theme, this week, we are on the subject of pensions. Woohoo. Seen as a ‘must have’ for your retirement plan unless you’ve got a successful investment strategy, won the lotto, have a mega inheritance, or a property portfolio. (Delete as appropriate). Pensions are hot news. Especially in France. Pension reform anyone? Let’s consider the benefits of a pension plan.

PENSION OVERVIEW

For want of stating the obvious, pensions are designed to give you a guaranteed income for life when you retire. How much you receive involves many factors including the type of pension you have chosen.

Pension plans come in a variety of shapes and sizes with different terms and conditions depending on the plan and investment strategy you opt for.

For this ‘benefits’ overview, I’m going to pop them into three header categories – Workplace Pension – Personal Pension – State Pension.

WORKPLACE PENSION

A bit of background. In 2012, the UK introduced automatic enrolment for a workplace pension (also known as a company pension). Initially started with larger companies but subsequently rolled out to all companies. In a nutshell, its purpose is to ensure that new employees are automatically enrolled in a pension scheme. Thus helping people save towards their retirement.

To qualify you need to be between the ages of 22 and State Pension age and earning a minimum of £10,000 per year. There are a few exceptions when your employer does not have to automatically enrol you.

By law, the minimum contribution of 8% of your earnings must be paid into your pension. 3% by your employer and 5% by you, the employee.

Some companies offer to match your contribution and to also put in more than the minimum 3%. Well worth sleuthing workplace benefits when you are looking into a new job!

You might have the opportunity to put in up to 10% of your monthly salary. That percentage is matched by your employer. A total of 20% of your earnings now going towards your retirement. Thereby doubling your contributions. An offer to grab with both hands in my humble…

If you work in the government sector employer offerings are generally much higher. So company contributions are just one of the benefits of a pension plan.

Regarding contributions, the government offers tax relief of 25% towards your contributions. For basic rate taxpayers, if you put in an extra £100, the government will top it up with £25 in tax relief. Making a total contribution of £125. That’s why, if your company provides a bonus scheme, savvy employees put their bonus into their pension to maximise their benefits. The result is less tax and more gain. All hail. 

Further info on pension contributions can be found here.

If you’re lucky enough to have a defined benefits pension plan (also known as final salary), your employer would have agreed to pay you a retirement income based on your salary and number of years of service. Lucky, because these plans do not generally require employee contributions. Their setup and guarantee viewed as lucrative. Due to the employer expense, they’re also few and far between.

PERSONAL PENSION

There is nothing to stop you taking out a personal pension plan and making contributions yourself. Sometimes your employer will pay into your personal pension plan but that is not a requirement or a given.

Self-employed? The main benefit of a personal pension is the tax benefit. The same rules apply here as for those on a company pension. For both basic rate taxpayers and higher tax earners. The latter of whom can benefit from additional tax relief making for an advantageous way to increase your retirement pot.

STATE PENSION

Set up by the government, the State Pension is dependent upon the number of years of your National Insurance contributions. If you qualify for the full State Pension, then you are eligible to receive £203.85 per week.

SYNOPSIS

In conclusion, both workplace pensions and personal pensions allow you to access 25% of your pension pot tax-free at the age of 55. This is due to rise to 57 years in 2028. These pensions do go up and down depending on the investment strategies of the plans you have chosen.

The State Pension age is also being reviewed and is set to increase from 67 years. The latter, as you have seen by the figures, does not provide you with a great income. Unless that is, you have your ducks in a row and other plans in place to supplement it. You might like to look at Financial Planning for Women.  

Either way, if used wisely pensions can provide a great source of retirement income, generally due to the way they work with compound interest, alongside tax relief.

Oh, and some people might have multiple pensions, depending on how many jobs they’ve had. Inserts sheepish grin. Aside from pensions, you might wish to see that you are on track with your financial plan. So there you have it, the benefits of a pension plan. Over to you. Lover of pensions or not? Do let us know in the comments!

So your savings are coming along tickety-boo (check out 7 Ways to Start to Save) but there comes a time when you need to make a decision. Do you or don’t you want to invest? Dun. Dun. Duuun. If the former, then here are some things to consider when investing.

1. DO. YOUR. RESEARCH.

This is one I can’t stress enough. No matter how much money you are looking to invest think of it like buying a car. You don’t just rock up, throw your money at the seller, jump in, and toot-toot off down the road. You decide on what kind of car you want to buy, how much mileage you want it to have, does it have a service history, is there a warranty. If you’re a fusspot like me, you probably also know the exact colour it has to be. Once on-site it’s then out with the magnifying glass and fine tooth comb to double-check that it matches the sales description.

For the investing equivalent, don’t throw your money at something your cousin twice removed has told you is a dead cert and that before you know it you’ll be rolling in it.

Do your in-depth research. What’s the consensus online? Who is behind the company/stocks/shares, or dare I say crypto? The latter of which is largely unregulated and can be very volatile. There are also a lot of scammers out there looking to make a quick buck, and you don’t want that buck to be yours.

If it sounds too good to be true then guess what? Red alert and sound the sirens.

2. DIY OR DONE-FOR-YOU

For DIY, how will you decide what to invest in? Perhaps a good starting point would be to sign up for investment newsletters so you can stay up to date with the ever-changing market. One of the most well known is The Motley Fool which offers stock market news, investing articles, and indeed share tips. For the latter still do your research. It’s no doubt a good idea to sign up for more than one newsletter. If you have a peek here there’s a plethora to choose from.

As for company sleuthing aside from their website and share price, one of the most valuable things to view is their annual report. How have they been faring? What are their future plans?

If you don’t have the time or energy to manage your investment strategy then a done-for-you service via an investment company would no doubt be your best option. These do incur a fee or service charge.

Investment companies and fees vary. Typically your bank also offers sharedealing services. You could also check out this Best Investing Platforms for Beginners as featured on The Times Money Mentor.

3. GOING. GOING. GONE.

Another thing to consider when investing and for want of stating the obvious ONLY INVEST WHAT YOU CAN AFFORD TO LOSE. Shouting? You betcha. It’s not all sweet-smelling roses popping up left right and centre. Investments can go down as well as up. They can also go kaputt and be no more. We’ve all no doubt seen those heartbreaking stories where people have thrown their life savings into the latest and greatest investment opportunity only to have it go down the pan. Sadly along with their hopes and dreams.

4. LONG-TERM OR SHORT-TERM?

What is your strategy? Are you investing for the long-term or will you need access to the funds sooner rather than later? If so short-term would be better. Your short-term strategy could be that you’ve got your sights on investing to obtain a potentially higher return than a standard savings plan. Say you’re thinking of your dream round-the-world trip. Generally, long-term is considered 5-10 years or more.

Do you want to pay into your investment monthly or pay as a lump sum?

Either way, investing generally occurs over a period of time as opposed to a quick turnaround. That is unless a major event (hmm Covid-19 anyone?) takes place that causes a dip followed by a swift-ish recovery. The former is where most people run for the hills but this is where good returns can also be made.

5. RISK? WHAT RISK?

Investing isn’t for everyone. If you’re going to lie awake at night worrying about whether you will or won’t have any money left at the end, may I suggest you give it a miss.

I (within reason) have a fairly high-risk temperament unlike a mate (Sammy the Squirrel) who doesn’t. Neither is right nor wrong. Choose what works best for you and allows you to Zzz’s at night.

So in a nutshell, add ‘factor in your risk threshold’ to your things to consider when investing list. Higher returns generally mean a higher risk.

6. HOW MUCH SHOULD I INVEST?

Ok, so you’ve made the decision that you’re going for it. How much should I invest – revert back to number 3. Investments go down as well as up and if it goes desperately wrong you could lose it all. Whether it’s a lump sum or £50 a month, or even $1 a month (as touted by Revolut) it’s whatever money you want to invest into your future. The key is that you are aware of the risks involved with your investment and that you have a strategy.

7. DIVERSIFY

Basket. Eggs. In. Put in the right order. Yep don’t put all your eggs in one basket. Aah, another saying, who knew that this one was first found in print in the 17th Century? Anyway, I digress. The moral is, as I’m sure you know, not to put all your investment money in one place. Rather it’s better to diversify. If one area goes belly up, then you have spread the risk and not lost everything.

So there you have my things to consider when investing. How’s it going for you. Have you started investing? Do let us know in the comments!

In my dreams I have a plan, If I got me a wealthy man, I wouldn’t have to work at all, I’d fool around and have a ball. Deep breath. Give it all you’ve got. MONEY, MONEY, MONEY... I thank you ABBA. Aah, the elusive dreams and wealthy man. Dare I say that, hmm, plan is financial planning for women. Doesn’t quite fit in with the lyrics eh?

So what is financial planning? Well according to good ‘ole Wikipedia in general terms financial planning is ‘a comprehensive evaluation of an individual’s current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans‘. Phew.

Ok, that’s that sorted. I’ll be off then. Byeeeeeee.

BREAKING IT DOWN

Right I’m back in the room. So think about what your financial goals are. What do you want to achieve? When do you want to achieve it by? What kind of lifestyle do you want? Really delve into your present and how you would like your future to be. Do you want to be swanning around the world, living on a cruise ship, or is that just me?

Start by looking at your money management spreadsheet to see where you’re currently at.

You might choose to review your mortgage as one item of your financial planning, and look to pay it off sooner rather than later. Break it down into chunks. What’s the redemption period i.e. if you pay it off early will there be additional charges? These tend to kick in during the first 5 years of your mortgage but check your terms and conditions.

What if you upped your monthly payments? Even a £50 a month increment can make a big difference to the length of your mortgage and the interest you pay.

Use a mortgage calculator in a slightly different way. Work it back using your current outstanding mortgage, your interest rate and the number of years you’d like to have it paid off by. That should show you what your payments will need to be to meet that deadline.

Note also that with regards to overpaying there’s generally a maximum (typically 10% a year) that you can over pay. Again check your T’s & C’s.

IT’S PERSONAL TO YOU

What are your circumstances? Do you have children? If so your financial planning for women mission could be to open savings accounts to cover expenditures when they’re older. Say university or mortgage deposit contributions.

Alternatively, you could open a children’s savings account that they manage themselves. Thus making it a fun way to learn about money and start to save.

Are you, like me, a continuously curious learner? Then perhaps you could open a separate account you contribute to monthly as your ‘education’ pot. When that latest course arises that you must attend you’re good to go.

When do you want to retire? How much money will you need?

Do you crave peace of mind and have insurance policies coming out of your ears to cover you for the unexpected? Income protection and critical illness cover might be something you wouldn’t want to be without. You might even have your funeral care policy in place and tickety-boo.

INVEST

You’ve got to the stage where your savings are coming along nicely. The next stage might be investing to make those savings grow. Bear in mind that investments generally have a risk factor too and can go down as well as up.

ISAs. Done for you service. Or DIY. Whatever you decide make sure you do your research. Everyone has different risk levels that they are comfortable with, be that low, medium, or high. 

PENSION

You can currently obtain your state pension when you’re 66 years old. However whilst all employers should also provide a workplace pension, dependent on set criteria, if you’re self-employed another decision for financial planning is do you take out a private pension?  It may be a way off but the sooner you start the better.

MAKE A WILL

No point in being super savvy with your financial planning only to not have a will and there ensues a bun fight between your nearest and dearest. If you’ve got no nearest and dearest then under the rules of intestacy, your estate goes to the Crown and not to a cause that is impactful and close to your heart.

CREATE A PLAN (AND TAKE ACTION!)

Make your plan with as many bells and whistles as you need to make sure you open it, use it and update it. For want of sounding like a learning and development executive, make sure that your defined actions are SMART. Specific. Measurable. Achievable. Realistic and Time-bound. 

REVIEW REGULARLY

Be flexible too. If your plan goals are too restrictive in time frame and causing you to pull your hair out, adjust accordingly. No point in stressing yourself out and eating vast amounts of chocolate. OK, maybe there’s a plus in some of that..

As to how often you should review it, depends on your personal circumstances. At a minimum, yearly to check that you’re on track. Life happens, there might be times when you want to revisit it more frequently.

So that’s my roundup of financial planning for women. Hands up who’s coming on that there cruise ship with me?

So you know where you’re at with your money, hell yeah, you’ve got your money management worksheet and your credit cards are in order. It’s tempting to s-p-e-n-d what’s left once you’ve paid your bills but step away. It’s now time to start to save some of your hard earned spondoolies.

Cue my 7 ways (and then you can go wild).

1. PAY YOUR SALARY INTO A SAVINGS ACCOUNT

Now, this I thought was genius. I can’t take credit for it, me not being a genius n all. This gem, I believe, was one of the methods, I heard about from David Bach. A financial expert and New York Times best selling author. Pay all your salary into an instant access savings account.

If you think about it, this is a great psychological hack. Every time you withdraw your money you’re depriving yourself of your savings. Tick Tock. Obviously, the plan is to leave in as much as possible each month and let it build up.

2. PAY YOURSELF FIRST

If you don’t think you have the willpower for the full on savings immersion i.e. you know that you’ll be lucky to have a tenner left in there by the time it comes to payday, then jump into the more set in stone, pay yourself first. A term that came into being courtesy of Robert Kiyosaki and Rich Dad, Poor Dad.

The normal way we save is to pay all of our bills first and then if we’re lucky aka refrained enough, to have some money left over from socialising, going on trips and shopping, we pop that into our savings pot. There’s that tenner again. Not with this method. Oh no siree. Instead open a separate designated savings account. Automate payment into it each month on (here’s the key) payday. You should aim for 10% or more but if that’s a stretch start at 5% with a view to increase the percentage as soon as you can.

3. ROUND UP APPS

Round up apps are money apps that make it very easy for you to start to save. This is where you round to the nearest £1 (or sometimes more depending on how you’ve set it up). So if an item cost £7.50 the round app up will bump it up to £8.00 with the remainder going into your savings pot. You link the app up with your bank account and hey presto. Well, it’s not quite the same as waving a magic wand but it’s not far off as you don’t even notice that you’re saving, so it seems like magic when you see the balance in your pot. You need to set them up first with your savings criteria. Plum is one such app and there’s the free basic version (which I use) and paid versions (Pro, Ultra, and Premium). Paid having more bells and whistles along with each one accruing higher interest returns.

There are 6 rules that you can use to set up your money rules criteria. 

An investing option is also offered but I fess up that I haven’t used that so I would suggest that you do your research if investing is the way you want to go with Plum as well.

Revolut proffer Spare Change as their round up method of saving and Moneybox is another rounding app.

4. IT’S THE SMALL STUFF (OR NOT AS THE CASE MAY BE )

I’m not proud to say that I had a recurring monthly membership that I barely used. Fast-forward a few years later when they cancelled it. Even then, that was only because the website ceased to exist and not because they felt sorry for me. Oops. Are you in the same loop?

How’s your coffee intake? A couple of latte concoctions in a working day, and, before you know it, you’re heading towards £150 a month out of your account for your morning and afternoon fix.

Are you a keen book buyer? Why not join your local library, and while you’re there, you can check out the best personal finance books for 2023 and more from female wealth experts.

Contrary to popular belief, when it comes to finance, it’s a case of sweat the small stuff as it’ll set you on the path for not only your start to save for a rainy day, but for every day.

5. RENEWALS

Renewals, car insurance, annual travel insurance, utility lock-in rates, boiler serving. Basically anything that’s an annual rolling contract. Rules implemented by the Financial Conduct Authority (FCA) at the beginning of 2022, forbid home and car insurers from charging more to loyal customers than newbies. Thank goodness. I always thought that was shocking. Deep breath, I will refrain from having a rant. You should receive a renewal notification but take ownership and diarise to shop around for the best deals a few weeks before your policy renews. Check out Uswitch, and Compare the Market.

6. LOOSE CHANGE

Not keen on linking your bank account with a round up app? Then go for the retro start to save DIY version. Nab yourself a big jar, bottle, or piggy bank and throw all your loose change in. There’s something satisfying about watching it fill up. Once it’s to the brim then take it to the bank to convert into notes. Alternatively, you could check out Coinstar. Coin changing machines generally located within supermarkets, but heads up that this is fee-based, between around 11% – 9%. The latter for a charity donation. Pour your coins in and receive a voucher to exchange for cash. Important – make sure you redeem your voucher on the same day as it was issued.

7. FOMO

Shouty 2-for-1 signs, promotions that encourage you to spend more, when you know one item will last you going on a year, and free workshops that turn out to be hmm not quite so free. After 5 hours of listening to sales guff, you look like you’ve gone into a trance. Now if you go along to sign up for something that will be of benefit and a great return on your investment, then fill your boots. But. If FOMO kicks in and before you know it you’re chomping at the bit to get to that there table first to sign up and hand over your hard earned cash, may I suggest you tie your ankles together. Newsflash – everyone wants your cash.

So over to you, what’s your go-to start to save technique? Do let us know in the comments!

 

As the owner of (ahem) a fair few credit cards, I thought I would present a case for and against. Also known as credit card advantages and disadvantages.

Credit cards can get a bad rap but there are definitely, in my eyes, some major plus points for having one or two. So without further ado, let’s look at credit card advantages first.

ADVANTAGES

A Good Credit Score

This, I would say, is one of the main advantages. A credit score is a means of showing whether you’re likely to be accepted for credit or not. If you have a good credit history of owning credit cards and paying them off on time, that counts toward your credit score.

Equally, your credit score is not affected if you check it, and as a by-the-by, the higher your score, the chances are you’ll have access to better interest rate deals.

Your credit score would also be checked when you’re applying for a mortgage or a bank loan. At any rate, to see how you’re currently doing on yours, you can do a free credit check on Experian.

For Emergencies

Should that be something that goes kaput with your car, within your home or, insert a.n.other. My shower springs to mind when water was cascading from the bottom as opposed to the shower head at the top. Ho hum.

Buy before payday

A convenient way to buy something before payday. Generally, an interest-free credit period of up to 56 days, check your small print (but don’t forget to pay it all off on payday, tut-tut).

Membership perks

Some cards offer free travel insurance, frequent flyer points, cashback rewards, and entertainment deals. Here’s a couple you might want to have a peek at, Barclaycard and Mastercard Priceless.

In addition, some supermarkets, for example, Tesco and Sainsbury’s, also have a banking element and provide credit cards which can have good rewards too.

Protection of goods and services purchased

In the UK, you’re also covered under Section 75 of the Consumer Credit Act, when you purchase goods and services with your credit card. With regards to value, the goods/service must be over £100 but under £30,000. Particularly useful if the supplier goes bust or keeps ignoring your SOS communications.

Another example is if you haven’t received said goods/services or if they don’t match what was specified. Particularly these poor souls. I’m not sure what my favourite is; the teddy bear in his chilled waving pose or the dog getting comfy on his doggie bed…

DISADVANTAGES

Temptation Central

Easy to spend especially if you feel like cheering yourself up whilst at the same time yelling ‘I AM ABUNDANT!’.

Interest rates

The idea is to get a 0% introductory rate however like most good things, they always come to an end. Make sure you diarise when you’re going to start being hit with an interest rate hike.

If you’re no longer on 0% then be aware of compound interest. See also 5 Reasons Why You Need A Money Management Worksheet.

It’s so easy to just keep making the minimum payment but if you do so then it could be years before your card is paid off. Not only that but the difference between what you’ve spent vs what you end up paying back will be HUGE.

Just paying an extra £5-£10 a month can make all the difference. Check out how you’re faring on a credit card calculator here

Cash withdrawal fees

Withdrawing cash from your card can be more costly than using it to pay for goods or a service. Therefore make sure you read the fine print to avoid having a nasty surprize when you open your next statement.

Fraud

Scammers love using someone else’s credit card. However, although this is a disadvantage, an advantage is that if you notice something on your statement that isn’t yours and report it promptly, you usually won’t be liable. The Consumer Credit Act 1974 allows you to claim back unauthorised payments due to fraud.

Additionally, having been on the receiving end of a scammer, I’ve had my credit card company call me up to query a payment. As much as I would have loved an all-singing and a-dancing kitchen, purchasing one at the far end of the country, they realised, wasn’t my normal modus operandi.

Check out keeping your card safe online.

Misuse

You can damage your credit rating if you don’t pay on time. So either set up a direct debit or make sure you diarise each month so that you don’t miss a payment.

SYNOPSIS

If used sensibly then credit card advantages far outweigh the disadvantages.

The main thing is that if you can’t pay it off in full each month, then to always overpay and pay more than the minimum.

Have an end goal too when you want to have it cleared by.

If you’ve got yourself a 0% deal over 12 -24 months then it’s easy peesy to divide your balance by the requisite months to get it cleared.

Oh and make sure you check your credit card statement!

How are you with credit cards? A ‘hell yeah sign me up!’ or a ‘hell no I run a mile from them’. Let us know in the comments!

Groan. A money management worksheet? Tap, tap, tap as your card hits the card reader. All is well with the world. Ooh new shiny goodies. Ping. A text message. It’s from your bank advising that you’re using your overdraft. Bum. But. Never fear; you won’t incur charges as you’re within your overdraft limit. Phew. Thank heaven for small mercies. That is until you hit the next shop…

This wee scenario is just one of the reasons you need a money management worksheet!

For budgeting, investing, and getting out of the rat race, you need to have a scoobie of your money starting point.

Now let’s look at those other 5 reasons.

1. MINDSET – GETTING READY FOR MONEY BUDGETING

Is it just me? Loading up a money management worksheet, be that Excel or Google sheets, makes my heart rate rise. I know I’ve got to tackle those darn figures but trepidation doesn’t cover it.

Money mindset is a beast that can take you down a rabbit hole that you can’t find your way out of. Even more so for some women, myself included, as dealing with money has them running for the hills. And, I fess up, for me, wanting to do more interesting things with my time, rather than fire up my laptop, get that worksheet open, input and cross-check incoming and outgoing spondoolies.

The synopsis is that it is SO important that you engage, take notice and create a plan of action for your financial present AND financial future.

2. KNOW YOUR WORTH – INCOME V EXPENDITURE

Dunno about you, but I’m very good at clocking the income, not so much the (yawn) expenditure part.
Although you can, of course, create your own money management worksheet, there are also ready-made ones you can download. Check out these money budget planners from Moneysavingexpert and MoneyHelper.

If you still decide you’d prefer to create your own, then at least you’ve got a guide on the framework to use.

Many banks provide a pie chart or graph of your expenditure so you get a ‘visual’ overview of where your money is going. If 30% of it is to Starbucks, I’d suggest you’d be better off investing in a coffee machine and opting for a BYO #justsaying

If you discover that you’re overspending and can’t see a way forward, touch base with your local Citizens Advice Bureau to see if you can get some assistance with your finances. Ignoring the reality of your situation only builds up anxiety and stress and can lead to sleepless nights alongside an impact on your mental health. Once you take control, things might not be as bad as you think. 

 

3. CREDIT CARD REALITY CHECK

A great way to get an overview of your credit card or cards plural (and to see what it is really costing you), is to have a separate worksheet for said cards. Whether you’re on a 0% APR offer or more, include columns for the amount you are paying, monthly interest charges, and the balance.

It’s an eye-opener when you get a visual on compound interest, and see the breakdown of how much of your payment is going toward your original balance, and how much is going toward interest. Eek.

4. THE TRUTH. THE WHOLE TRUTH

Please be truthful. If you don’t know the correct figure, you’re better to round up than down and overestimate as opposed to underestimating. Even if it does make you wince. Both your bank balance and potential savings pots to-be will thank you.

Don’t forget also that some months are going to be better than others. However tempting it is to copy and paste each month (believe me, I’ve been there); not every month is the same. Chrimbo and, the build up to, will be added expenditure on food, pressies, socialising and alike. However when you’re kicking back on your ‘olibobs your normal day to day food/travel expenditure isn’t going to be the same.

Should you pay for some items annually, for example, car insurance, home insurance et al, then if you pay for them in full out of your bank account, I would divide and reflect the charge monthly on your worksheet.

If it’s on your credit card then it can stay as an annual charge as you will have your separate credit card worksheet.

5. SAVING FOR A RAINY DAY

Although women are becoming more money savvy, the UK Adult Financial Wellbeing Survey 2021 Nation of Savers Report found that 62% of men had savings of more than £1000, compared to about half of women at 51%.

A budget is more than just a series of numbers on a page; it is an embodiment of our values – Barack Obama

So if your values are party, party, party or being Amazon’s number 1 shopper, go you. However, if you need to get your @#$%# together, want to spend x amount of time doing voluntary work, contribute to your favourite charities and not have to work until you’re 96, take a deep breath. You. Can. Do. This.

Saving – not only for a rainy day, also unexpected bills, unemployment (we all know you’re supposed to have 3-6 months ‘pay’ as a safety buffer). Savings for investments. It might be treat money too for that unexpected invite. How great to accept than decline due to lack of funds, eh?

Finally, as to how often you should update your money management worksheet, I would say it depends on how you get paid.

If you get paid weekly then update your worksheet weekly. Likewise if monthly, then update it monthly. That way you will have an accurate view of your expenditure before your next payday and can adjust accordingly.

The aim is not to spend every payday penny until you get an ‘ERR ERRRRR our survey says’, but to have a separate account where you can pop some money in each week/month. However small that might be, it all adds up.

Money is a terrible master but an excellent servant – P.T. Barnum

Round of applause for good ole P.T.Barnum. Take control of your money and make it work for you.

Are you a head in the sand or a savvy money saver? Do you use a money management worksheet? Let us know in the comments!

Righty ho, let’s start by saying that I’m far from a wealth expert. Many a time money has slipped through my fingers like a slippery eel. Either that or I’ve been done over by some boo hiss baddie, without a conscience, who has stitched me up like a kipper.

So I’m on a financial freedom quest to get my money in order and working for me.

I kinda figured that I’ll share what I find so that we can be on the path to our millions together. Deal?

For me, my go-to has always been – I’m not that bothered or interested in money – as if viewing people who are, as obsessive and greedy. Well go figure, wake up JB, you need to be interested unless you want to be working until you’re 96.

I’m sure I’m not alone with a bit of a head in the sand or just not really making it a priority. Let’s be honest financial spreadsheets aren’t exactly come hither sexy and enticing.

Your mantra might be – I’m never any good with money. Keep saying that and sure enough you’re on the self-fulfilling prophecy route.

So in light of the above, a good place to start in my humble.

MINDSET

AKA. How you view money.

Do you get paid and keep drawing money out until there’s nothing left and you’re living on a wing, a prayer and pot noodle until the next pay day? Or. Are you a bit of a savvy saver squirrelling it away? Perhaps you’re a bit of both?

It’s interesting to note how many lottery winners end up broke. I wonder if it’s because they feel bad that they have so much money that they end up giving it all away. Be that to charitable causes, drinking establishments, the local drug dealer or strip joints.

Or is it because once they have a lump sum of money, they think it’ll always be there and won’t disappear? You go crazy. Buy the houses, the private plane and designer clothes then puff like the Genie in Aladdin, it’s all gone.

There are also those lottery winners who aside from a new home and a car or two, still have their money and see it growing, thank you very much.

We all know we should save, heck I’ve got a mate like Sammy the Squirrel, but for me I like a bit of balance of spending and saving.

Perhaps it’s also the sayings that have been ingrained into you when growing up or just generally being around money naysayers.

Take ‘money doesn’t grow on trees’ or ‘money is the root of all evil’. Mwah ha ha. Sorry getting a bit carried away. Thought I’d pop in a villain’s laugh and while I’m at it, here’s a villain …

If you’re curious and not sure (or you’re doing that sand head dive) on your mindset then check out the money mindset quiz here.

Ok duly enlightened?

EXPERIMENT

Then let’s now look at an eye opening and jaw dropping experiment.

In 2015, Mark Dice, a media analyst, went out and about on the streets clutching a bundle of Hershey chocolate bars and a 10 oz bar of silver bullion. The silver bar was valued at $150 at the time.

In this money experiment, he was offering for FREE, a choice of the bar of, albeit chilled, chocolate/candy or the 10 oz bar of silver.

Go on. Go on. Guess. Out of the 8 people he asked, how many opted for the chocolate/candy bar?  Yep. That’ll be all 8 of them.

I can’t make up my mind if the lunchtime and people were hungry combo swayed them. Or if perhaps they were all suffering from heatstroke.

I had high hopes for one but the dialogue went like this:

Lady: ‘I don’t err I don’t have any way to do anything with the silver.’

Mark: ‘So you prefer the Hershey bar?’

Lady: ‘Yeah but is it real?’

Mark : ‘Yes. Just straight out of the fridge.’

Lady: ‘Doesn’t seem real.’

Mark: ‘The Hersey bar doesn’t seem real. I mean we can go into the coin shop (they were standing outside of) and verify that the silver bar is real.’

Lady: ‘No, that’s alright. I always take the chocolate.’

Doh. Yes this might be 2015 but I fear things might not have changed much. Is it a case of too good to be true or not having a clue on the value of money?

The moral of the story is never make a decision when hungry.

Additionally, if there’s no silver foil, like a Chrimbo tree let-me-unwrap-you decoration, then grab the silver bar with both hands. And. Run. As you do so, mime a cheery ‘thanks’ wave, as you sprint off into the distance…

The 3 min vid is worth an incredulous view here.

Go on. Fess up. Chocolate bar or silver bar? Let me know in the comments!