Today I have an eye-opening infographic for you. Do you ever wonder how you compare with the average Briton when it comes to spending your pay cheque? Are you content with your rainy-day fund or do you worry you haven’t got as much squirreled away as your friends or colleagues?
Worryingly, it appears most Brits are spending more than they bring in each month. Moreover, there is a steady shift from cash and cheques toward plastic and electronic payment methods.
According to the Office for National Statistics, British households have spent more than they received for an unprecedented nine consecutive quarters, amid a longer squeeze on real incomes. What’s more, households across the country have been net borrowers in every quarter between October 2016 – when living costs started to rise after the Brexit vote – and December 2018.
Check out the full infographic by Peachy below which neatly reviews the key household spending statistics in the UK:
Personally, I find the saving stats at the end of the infographic especially worrying. Large numbers of people say they have no savings whatsoever (and even £100 is a tiny amount really).
Living from one payday to the next is a precarious existence, though as the graphic indicates many UK citizens do exactly this. Nonetheless, it makes you very vulnerable when a sudden change of circumstances occurs that reduces your income or increases your expenditure.
An example from my own experience is when, almost five years ago, I was diagnosed with prostate cancer. My treatment involved two months of radiotherapy, requiring daily trips of 30 miles each way to the Royal Stoke University Hospital in Stoke-on-Trent. It was simply impossible for me to go on working during this time, so (as I was self-employed) my income took a big hit. Fortunately I had enough in the bank to cover my lost earnings during this time. If I hadn’t, it would have added to the already considerable stress I was under. (And yes, I’m doing fine now, thank you.)
i think it’s particularly important for older people to have some savings set aside. Not only are health problems more likely as you get older, your long-term earning potential reduces. Nobody should be entering later life with nothing in the bank to tide them over if – or more likely when – the need arises.
So I strongly believe everyone, whatever their age, should do their utmost to build a savings pot. Of course, for people on modest incomes that’s not always easy. So I recommend a two-pronged approach of reducing your outgoings and boosting your income (e.g. by starting a side hustle).
Saving money and making money are, of course, subjects I cover regularly on Pounds and Sense. By doing these things, you should hopefully build up a pot that will stand you in good stead when life hands you those inevitable lemons.
I guess another reason people aren’t saving as much – or at all – these days is the very low interest rates on offer from banks and other savings institutions. In itself that isn’t a good enough reason for not having a savings pot, but of course it does mean it’s extra important to look around for the best deal you can find.
In addition, once you have enough cash savings to tide you over for a few months, it’s good to think about investing some of your extra money for potentially higher long-term returns. Again, investing is a subject I cover regularly on Pounds and Sense. I won’t go into detail about this now, except to say that a good starting point is a tax-efficient Stocks and Shares ISA (I like Nutmeg’s automatically diversified robo-adviser platform myself). And you should put as much money as you can into your pension, of course.
As always, if you have any comments or questions about this post, please do leave them below.
If you enjoyed this post, please link to it on your own blog or social media:
Lots of us need some extra help at times, but we don’t want the hassle (or expense) of hiring an employee. If that applies to you, have you considered using a remote (or virtual) assistant?
As the name suggests, remote assistants don’t work from their client’s premises. Rather, thanks to the power of the internet and electronic communications, they work remotely from another location, which might be an office or their own home.
They could therefore be based anywhere in the world as long as it has the connectivity required. For cultural and communication reasons, however, there are obviously advantages to using assistants in the same country or area.
So how do you hire a remote assistant? There are various methods, but if you want a simple, cost-effective solution, you might like to check out Remote Bob. This fast-growing company has offices in London and Croatia and offers a remote assistant service to individuals and businesses across the UK (and further afield).
So what services can you expect your remote assistant (or team) to offer? Here are just some of the services Remote Bob offers to individuals:
Planning holidays
Ordering groceries or food
Booking sports activities and hobbies
Organizing holidays
Searching for a new flat or apartment
Helping with online clothes shopping
Helping with picking restaurants
Filling in some forms on your behalf
Managing your household
Managing your lifestyle
Buying birthday presents
Managing personal budgets
Research on properties to buy
For entrepreneurs and businesses, the services Remote Bob offer include:
Supporting office teams and directors with general operational tasks
Scheduling and coordinating meetings, appointments, presentations, and other office-related events
Opening, sorting and distributing incoming electronic correspondence
Handling requests by answering questions and providing information and data
Organizing and scheduling travel arrangements
Booking conference calls, rooms, taxis, couriers, hotels, etc.
Developing and updating administrative workflow to improve efficiency
Preparing and modifying documents including correspondence, reports, drafts, memos and emails
Assisting in the preparation of presentation materials and agendas for meetings
Maintaining electronic filing systems
Resolving administrative problems and inquiries
Performing general accounting and bookkeeping duties
Examining and reconciling expense reports of office staff
Writing letters and emails on behalf of office staff
Maintaining up-to-date employee holiday records
The staff working at Remote Bob are all EU-based, thus minimizing any potential issues with time zones and significant cultural differences.
Remote Bob handle people management, regulatory arrangements and payroll, so you don’t have to worry about this. They say they only work with proficient, well trained and approved specialists, and pledge to deliver work on time and under budget.
Special Offer
Remote Bob are kindly offering Pounds and Sense readers a huge (36%) discount on their service. By clicking through this link you can request their Personal Assistant service for one month (five hours per week) for £320 per month instead of the normal £500. Just remember to enter the code SENSE2019 in the Discount Code box.
Note that completing the inquiry form does not create any obligation to buy. Clearly everyone will have their own particular requirements for their remote assistant/s, so Remote Bob say, ‘Talk to us, tell us about your goals, your worries and your hopes. We will then construct a customized route for all your needs.’ Only when you are fully satisfied with the proposed solution will you be asked to make any commitment to buy.
I would also highly recommend you spend a little time looking around the Remote Bob website, as this will give you a good idea of the range of services on offer and how the platform works in practice.
As always, if you have any comments or questions about this post, please do leave them below.
Disclosure: This is a sponsored post. If you click through a link in it and make a purchase, I will receive a commission for introducing you. This will not affect in any way the service you receive or the price you pay.
If you enjoyed this post, please link to it on your own blog or social media:
As from today (1st July 2019) you can switch your mobile network provider with just a single text message. This is good news as it makes switching and saving money even easier.
If you want to keep your current number (as most people do) the process now is as follows:
1. Request a switching code by texting PAC to 65075. This is a free call.
2. You will then immediately receive a PAC (Porting Authorization Code) from your current provider.
3. You then pass this code on to your new provider when you sign up with them. They are obliged to switch you within one working day.
If you don’t want to carry over your current number, there is a slightly different procedure.
1. Text STAC to 75075 to request a Service Termination Authorization Code.
2. You then pass the STAC you receive onto your new provider. There is no need for you to contact your current provider to cancel your contract with them.
Either way, you should also receive information from your current provider about any early termination charges or pay-as-you-go credit balances that may apply.
PACs and STACs are valid for 30 days, after which if they haven’t been used they simply expire. You would then need to request another one.
This new method makes it easier and less hassle to change mobile service providers. In particular, it avoids the awkwardness of having to phone your current provider and ask them for a switching code. Many people hate doing this, as it gives your current provider the chance to twist your arm to try to persuade you to stay with them.
As regards deciding when and where to switch, that is a topic for another post. However, many price comparison services (e.g. Compare the Market and USwitch) now also allow you to compare prices for mobile phone tariffs and suppliers. I also recommend Billmonitor, a free service that analyses your usage and recommends the best deal for your needs. They send you monthly updates by email as well.
As always, if you have any comments of questions about this post, please do leave them below.
If you enjoyed this post, please link to it on your own blog or social media:
Carpet isn’t something you buy every day, but when the time comes the cost can be substantial. Fortunately there are various ways you can save money on carpet without compromising on the things you want. Here are ten top tips to guide you.
Educate yourself on the different types of carpet available. There is lots of helpful information online. The more you know, the less likely you are to waste money on something that is unnecessarily expensive or just plain unsuitable.
In particular, get to know about carpet fibres, synthetic and natural. If you want a synthetic, nylon offers the greatest durability and resilience. However, it will also cost you the most per square metre. If you don’t need as much durability, alternatives such as polyester are cheaper and have other benefits, e.g. better stain resistance and eco-friendliness. Wool carpets are generally more expensive than synthetics but offer the greatest level of comfort and will retain their colour and elasticity for many years.
Shop around before you buy. This will give you a good idea of the options available and how much you can expect to end up paying. Don’t just go to the usual high-street and out-of-town stores, though. You may be able to save a lot of money by buying carpet online.
Think about how long you plan to go on living in your house. There is no point paying top whack if you expect to move on in a year or two. On the other hand, if you plan to put down roots, it clearly makes sense to buy good-quality carpets that will last a long time.
Although the obvious option would be to get the same carpet across the whole house, it may not be the most sensible. For rooms that get a lot of use, such as the lounge and master bedroom, clearly you will want carpet that is hard wearing as well as comfortable. On the other hand, with rooms that get less use, such as the spare bedroom, you can get away with something a bit cheaper and less durable.
If you are carpeting a small room or flat, you may be able to save money by purchasing offcuts or remnants. These are basically left-over sections of carpet at the end of rolls. They are usually discounted to clear, so can be great value if you can find something suitable for the room (or rooms) you have in mind.
Do as much of the preparatory work as possible yourself. In particular, move furniture out of the way before the fitter (or fitters) arrive. Most will move furniture for you, but they will charge you extra. If large pieces of furniture are too heavy for you to move, buy (or borrow) furniture sliders. You just slip these under your furniture and can then easily move large items around. Packs of reusable furniture sliders are available for a few pounds from Amazon.
You may also be able to save money by removing and disposing of the old carpet yourself. Take it up carefully, removing underlay and staples as well. Don’t remove the tack strips, though, as this could damage your floor (in most cases anyway the fitters will use the tack strips again). Taking the old carpet to the tip yourself can also save money, as commercial installers typically have to pay a fee for doing this.
Remember that as well as the carpet itself, you will need to pay for underlay, gripper rods, and so on. Be sure to get a fully itemized quote from your chosen supplier showing everything included as well as the total price you will have to pay. This should help to avoid any nasty (expensive) surprises later.
But finally, DON’T try to save money by fitting the carpet yourself, at least unless you have professional training and experience in this field. Carpet fitting is a skilled job, and if you make a hash of it you could end up wasting a lot of money as well as voiding any guarantees (which often stipulate that carpets must be professionally fitted).
Good luck, and I hope you save loads of money on your new carpet!
Disclosure: This is a sponsored post on behalf of Flooring Superstore, the UK’s leading online flooring specialist.
As always, if you have any comments or questions on this post, please do leave them below.
If you enjoyed this post, please link to it on your own blog or social media:
A garden shed or cabin is a serious purchase. Erecting a building in your garden doesn’t come cheap after all, even if it is made of wood.
As it’s such an expensive buy, you’re going to want to make sure that the shed is going to be fit to serve you for many years to come. The ultimate way to waste money when buying a garden shed is to have to replace the thing after a year or two!
Some shed manufacturers make sheds that look just like their higher-end peers, only they have been built using every shortcut in the book. Some might feature inferior wood varieties, construction methods, glass, or delivery options. Spending a bit more up front and going with a quality supplier will ultimately save you the most money, since it will need minimal maintenance work or repairs over its lifespan. Remember, you’re buying something for years here, not simply a few months!
Unfortunately, there’s not really any getting around the fact that your new shed or cabin is going to cost a reasonable amount. Whilst there are loads of manufacturers that are happy to sell you a building for less than the average asking price, these are often shoddily constructed, and the likely result is an angry customer needing to replace their shed much sooner than they expected.
One possible way to relieve some of the sting from your wallet when buying from a quality manufacturer is to use a discount voucher. This will allow your money to go that little bit further and, ultimately, you’ll end up with a much more rugged and durable building. Remember the mantra: buy cheap, buy twice.
There are loads of different manufacturers around that all run different promotions throughout the year. You’ll find two such special offers– one for Waltons discounts here and one for Shed Store discounts here. Both of these companies offer exceptionally high-quality garden buildings and these promotions make their products a little easier on the pocket.
Save Money by Getting it Right First Time
As is often the case, the best way to save money on a new garden building is to spend a little more up front and go for the highest quality possible. Although it is perhaps counter-intuitive, higher quality sheds pay for themselves in a couple of ways. Firstly, a superior garden building is much more likely to protect whatever you store in it from the elements as well as would-be intruders. If you end up having your lawnmower nicked because you bought a cheap summer house or shed with a rubbish lock, did you really save any money?
Secondly, a higher quality shed will need much less spent on it in terms of either maintenance, repairs, or even replacement. The cost of a new shed is certainly going to be more than whatever you saved by buying the cheap one in the first place. Again, remember the mantra, buy cheap, buy twice.
With that in mind, here are some things to look out for to make sure you get the best shed possible first-time round:
Building materials – Is the wood used suitable for outdoor construction? Look for slow growing varieties and beware of manufacturers not displaying the type they use.
Treatment – Does the product come with a treatment included? Sheds coated in a protective treatment last MUCH longer.
Building techniques – How are components joined together? Look for tongue and groove here over square cut joints or shiplap cladding.
Door hangings – Are doors hung externally or rebated? Rebated doors are much more secure and offer far greater draft exclusion. Are hinges recessed?
Windows – Is the glass thick enough to offer protection? Is it even glass? Are they rebated?
Roof – Does the roof come with an adequate covering? Felting protects sheds from succumbing to the elements and isn’t always included in the asking price.
Delivery – Is delivery included or do the company charge extra for it? How are pieces delivered? Avoid companies unloading components to bigger sheds by hand.
Shop Around Before You Spend
It’s a really good idea to shop around, visit review websites, and read a load of customer reviews about different products. This will give you a good feel for what’s out there. It will also help you to determine if the shed you’re considering is priced highly versus the rest of the market or seems more in keeping with it. Check the different manufacturers’ specifications with the above bullet points in mind. Pay close attention to dimensions of components used. This is a common place for manufacturers to save a bit of money by offering something that isn’t really fit for purpose.
You can even pay a visit to most manufacturers’ showrooms. This allows you to see prospective sheds in action, so to speak. You can look at and touch the products themselves to determine whether the sheds on display have wobbly floors, ill-fitting doors, or other design imperfections.
It’s likely that the shed you were thinking of buying won’t be on display when you visit a particular showroom. Don’t let that put you off, though. You can still learn a lot about the manufacturer by looking at the other products they make. If the rest of their stuff seems exceptional, it would be very bad luck for you to pick the one rotten apple, after all.
By combining your own visits with internet research, you’ll be able to make a reasoned decision about your eventual purchase. It won’t feel quite so much like a stab in the dark and you’re much more likely to end up with a garden building that will last for years with minimal maintenance. Even if it costs an extra £200 up front, if it remains useful for five or more years longer than the cheaper alternative, you’re quids in really!
As always, if you have any questions or comments about this post, please do leave them below.
There are under five months left for consumers to reclaim Payment Protection Insurance (PPI). 29th August 2019 is the official cut-off date for all people to submit PPI claims to their banks. This date was chosen by the Financial Conduct Authority (FCA) to encourage those who have not yet made claims to do so.
Since the announcement of the deadline nearly two years ago, thousands of people have made successful PPI claims. With the deadline approaching, if you haven’t yet submitted a claim, you must act now before August.
Do You Have a PPI policy?
The first thing to establish is whether you had a PPI policy. Most PPI policies were sold in the 1990s alongside mortgages, loans and credit cards, but some successful cases date back to the 1980s. As a general rule, the older the policy, the harder it can be to prove you were mis-sold PPI.
You may remember being mis-sold a policy. If this is the case, you will need to find the old paperwork with evidence of this. If you can’t remember whether you had a policy, old statements and documents should be able to highlight if this is the case.
On the paperwork, PPI may be listed under a few different names. Here are just a selection of the other names for PPI (this list is not exhaustive):
Accident, Sickness and Unemployment (ASU)
Account cover
Loan protection
Payment cover
If you can’t remember whether you had a PPI policy or you can’t locate the paperwork, there are a couple of ways to find out. You can either contact the bank or lender and ask if they have a record of any PPI policies attached to your previous accounts, or you can use the services of a PPI claims company.
There is no guarantee that the bank will have a record of previous PPI policies, but if they do confirm a policy, you can then submit a PPI claim. Alternatively, a claims company can investigate any old accounts and seek to identify policies on your behalf.
Claim PPI before August
Once you find evidence of your PPI policy, it’s time to make a claim. Again, there are two different ways to submit a PPI claim. You can make a claim yourself by contacting the bank or lender that mis-sold you the policy or ask a reputable PPI claims company to do it for you.
Whether you submit a claim yourself or use a PPI claims company, you must explain how the policy was mis-sold to you. Here are just a few ways that policies were mis-sold to customers:
You were told it was compulsory with your credit card, loan or mortgage purchase
You weren’t told about the policy — it was added automatically and without your knowledge and consent
The terms and conditions were not explained — this includes not being asked about medical conditions and employment
You were promised a lower price if you bought the PPI policy
If any of these apply to you, you could be eligible for a refund. You may also be eligible for a refund if you were charged a high level of commission. Due to a landmark PPI case, individuals can claim PPI if a policy had over 50% commission and this was not disclosed — even if you knowingly bought a PPI policy. This is known as the Plevin rule and means thousands’ more people can make PPI claims.
Some banks allow you to claim PPI online by submitting a form (though you may need to also send evidence with your application). For others, you will need to write a letter and complete any relevant paperwork. Once the bank has acknowledged your claim, it should respond with an outcome within eight weeks. However, be aware that some cases can take longer, especially if they’re older or more complex.
The alternative option is to use the services of a PPI claims company. Some essential details will be required for them to act on your behalf, but they will handle all communication with the bank. If you don’t have the time or don’t want to deal with the process yourself, it can be beneficial using a claims company. Always check the fees involved and read the terms and conditions.
What if Your Claim Is Rejected?
If your claim is successful, you’ll receive notification from the bank and receive the payment shortly afterwards. If, however, the bank rejects your claim, but you think that the decision is wrong, you can refer it to the Financial Ombudsman Service (FOS). The FOS will independently review your PPI case and either uphold the decision made by the bank or decide that you are due the PPI refund. It’s important to be aware that PPI claims at the FOS can take up to two years to be resolved due to a severe backlog.
Whether you remember having PPI or not, now is the time to check. In four months, you will no longer have the chance to reclaim PPI. Act now before it’s too late.
Disclosure: This is a sponsored guest post on behalf of Canary Claims.
If you enjoyed this post, please link to it on your own blog or social media:
Today I wanted to let you know about a free website where you can discover all the latest free offers, voucher codes and flash bargains.
Gratisfaction UK is updated daily, every day, with all the latest UK offers, contests and giveaways. The main menu at the top of the screen has five tabs titled Home, Freebies, Flash Bargains, Voucher Codes and Hot. These are pretty self-explanatory, but here is a screen capture of the Freebies section at the time of writing.
As you can see, items are added on an hourly basis. If a particular offer appeals to you, clicking on Get Freebie will take you to a web page where you can apply for the deal in question.
If you don’t want to miss anything, you can also sign up to a free daily email newsletter. Just enter your first name and email address in the box at the top left of the screen. You can, of course, cancel at any time if you decide it’s not for you.
There are lots of great freebies at Gratisfaction UK. Some that particularly caught my eye included a free McDonalds activity pack for kids (perfect with the Easter holidays fast approaching!), a competition to win one of 20 free jars of the new Marmite Peanut Butter, and another competition to win one of five luxury Belazu food hampers. Just be sure to check they are still open, as many of the offers are time-limited and may close suddenly or expire. You snooze, you lose, as the expression goes!
In summary, if you like saving money and getting freebies, do check out Gratisfaction UK – and if you like what you see, sign up for their free email newsletter as well.
Disclosure: This is a sponsored post on behalf of Gratisfaction UK.
If you enjoyed this post, please link to it on your own blog or social media:
Stop me if you’ve heard this before, but I just realised that I have been paying well over the odds for another of my home insurance policies. This time it is my Home Emergency Cover.
To put you in the picture, soon after I moved into my current home with my now-deceased partner Jayne in March 1995, we decided to take out emergency plumbing and drainage insurance with a company called Homeserve.
We were strongly influenced at the time by a promotional leaflet enclosed with the water bill which indicated that if there was a problem with the water supply pipe from the mains, the water company wouldn’t be responsible and we could face a large bill to have it fixed.
Homeserve were offering a policy that would cover us in these circumstances and for other plumbing-related emergencies. Rightly or wrongly, we felt at the time it made sense to pay for this, especially as the company seemed to be endorsed by our water supply company (South Staffs Water).
We paid for the policy by quarterly direct debit and each year it rolled over, generally with a small increase. I looked after our household finances but never really thought much about this. The sums involved weren’t huge, and I assumed it was worth paying them for the peace of mind. As far as I can remember, we never actually made a claim on the policy.
Fast forward to 2019, and after taking stock of my buildings and contents insurance (and saving over £500 on it), I decided the time had come to put my home emergency cover under the microscope as well and see if there were any savings I could make. And again, there certainly were!
Doing the Sums
In December 2018 Homeserve said my insurance would be going up from £198 to £222 per year, working out as £55.50 per quarter (to be fair to Homeserve there was no extra charge for payment by instalments).
So I went online to see what alternatives there were for plumbing and drainage insurance. I did a search for home emergency cover providers on Top Cashback (a website that provides money back to people buying via merchants listed on the site – see this post for more details).
I could immediately see a few possibilities for saving money. Even allowing for the cashback on offer with TCB, though, the best deal I found was with another company called Home Emergency Assist. HEA offer a wide range of policies, some of which also include gas and electrics, pest removal, boiler servicing, and so on.
Obviously you have to be sure you are comparing like with like. With Homeserve I was on their Plumbing and Drainage Plus policy, which covered me for emergencies with the internal plumbing and external water supply pipes. There was a maximum limit of £4,000 per claim.
With HEA I could have bought water supply pipe and stop cock cover only, for a price (according to their website) from £1.49 a month or just under £18.00 a year. For a policy similar to Homeserve’s which also covered me for internal plumbing problems, I was quoted £42.57 a year. This is obviously a lot less than Homeserve’s price, and there was also a higher maximum limit of £5,000 per claim.
Admittedly Homeserve’s policy included zero excess, whereas the HEA quote mentioned had a £95 excess per claim. I was happy to accept that, but for the purposes of a fair comparison I checked their price for a policy with zero excess as well and this was £87.89 a year – still £134.11 cheaper than Homeserve quoted (and with a larger maximum claim limit).
So I cancelled my Homeserve policy, and (after a few more checks including reading their Trust Pilot reviews) have signed up with Home Emergency Assist instead. As I accepted the £95 excess, I shall be paying £42.57 a year, which as stated above is £179.43 less than I would have been charged by Homeserve.
I have, incidentally, nothing against Homeserve, but for me anyway their offer no longer represented value for money. Neither am I especially endorsing Home Emergency Assist. Although they offered the best price I could find for my needs, you might of course do even better by shopping around.
In any event, the real moral of this story (as I’ve said before) is not to let laziness and inertia ever stop you looking for better deals. Even with something as mundane and relatively cheap as home insurance, you may be as surprised as I was by how much money you can save.
You can search on Top Cashback for home insurance providers (all offering cashback) by clicking on this link (affiliate). If you aren’t already a member you will need to register to get cashback, but this is free and only takes a few moments.
As ever, if you have any comments or questions on this post, please do leave them below.
If you enjoyed this post, please link to it on your own blog or social media:
Today I have a guest post for you from my friends at Suttons, a leading seeds, bulbs and horticultural products company.
There is a lot of discussion about saving money before you retire, but not nearly as much about saving afterwards.
But in reality the great majority of us have to survive on a lower income in retirement. While nobody wants to spend their golden years scrimping for every penny, saving money in retirement is important and helps us to afford things such as holidays that can enrich our lives.
So this guest post sets out some great ideas for painless ways of saving money in retirement. I hope you enjoy reading it.
For many of us, we dream of retirement. The ideal age for packing in work is 57, according to studies, with 32% of respondents planning to quit the working world at this age. However, for some, the thought of calling it a day before they’re eligible for their state pension isn’t feasible. It’s been estimated that the British public will need at least £260,000 to retire without money issues. Unfortunately, research has found that the average pot of money held by those aged between 45 and 54 is £71,240 — way off the final required total.
While this final figure sounds extremely high, there are ways to prevent overspending in your later years. Here, we take a look at some great ways to save money after you’ve retired.
Sell your clutter
We are a nation of hoarders. Whether it’s old equipment or new purchases, we don’t like to get rid. In fact, over half of the UK’s adults claim to have between one and 10 items hanging in their wardrobe which have never been worn. However, one man’s junk is another man’s treasure, right? Therefore, clear out any unnecessary clutter you may have acquired over the years.
Have a huge clear out and you’ll be surprised at how much stuff you don’t actually need if you’re ruthless. This can help to provide extra funds to go towards your retirement pot. It means that you’ll be increasing your income, and you won’t even have to make too many cuts from your lifestyle. You can sell your stuff via online auction houses such as eBay and local Facebook groups.
Grow crops
Growing produce at home has many benefits. We all know that eating fruit and vegetables is good for you due to them being full of vitamins, minerals and nutrients. However, have you ever stopped and thought about how much money you can save if you grow your own veg? If your garden is big enough, you should create a vegetable plot. This can include cabbages, lettuce, onions, sweetcorn, leeks and the likes.
You should also look into companion planting. For example, grow Swiss chard in the same space as onions, beetroot and cabbages and you’ll make the most of your space while also deterring pests. A patio garden can also grow smaller produce, including mange tout, radish and French beans.
Some of the most cost-effective vegetables you should look to grow in your garden include tomatoes. As they don’t require much space to grow, you can even place these on balconies. Usually, they take 12 weeks before they are ready for harvest and each plant can create fresh produce daily for up to six years. Based on a shopper buying one box of tomatoes per week, this can help you save £52 each year.
Potatoes are another money saver. The average Brit eats 429g of potatoes every week and the average four-pack costs £1 in a supermarket. However, for a pack of five seeds, you can grow up to 45 potatoes for as little as £1.50.
Of course, there are many other examples that can save you money, and it all tallies up when put together to make great savings.
Adjust the frequency of luxuries
You don’t have to stop enjoying yourself to save money in retirement. It’s no use retiring just to sit and be bored. However, it’s important that you plan properly and adjust your lifestyle to suit your budget. We all like the occasional blow out — whether that’s on a holiday, fine dining or on new items. However, it’s crucial to live within your means. If you were used to eating out every other night when you were in employment, chances are you won’t be able to once you’ve left the workplace. However, you shouldn’t cut it out altogether. Simply adjust the frequency you do so and you’ll still be able to have that luxury that you long for.
Set priorities
Having a budget doesn’t mean removing the items or adventures that are most important to you from your life. However, it is important to set yourself priorities. Decide what it is that you really want in your life and what are just added bonuses. Doing this can help you to prioritise your money, while ensuring you don’t miss out on what you really want in your life.
The above are all examples of how to save money once you’ve retired. Of course, there are many other opportunities for you to make the most of your retirement, but by focusing on these points, you’ll be well on your way to enjoying your relaxing time after finishing work for good.
Thank you to Suttons for an interesting and thought-provoking guest post.
I definitely agree with the advice to grow tomatoes. I have been doing this for a few years now, in growbags and/or hanging baskets. Despite my distinctly un-green fingers, they never fail to produce a bumper crop of tasty toms, and save me having to buy any from the shops for months on end. Suttons have lots of varieties of tomato seeds available. Or if you prefer you could visit a garden centre such as Dobbies and perhaps take advantage of their Over 60 Meal Deal as well!
As always, if you have any comments or questions about this article, please do post them below.
In just a few weeks (5th April 2019) it will be the end of the financial year. And that means if you want to make the most of your 2018/19 ISA allowance, you will need to take action soon.
As you may know, ISA stands for Individual Savings Account. ISAs are saving and investment products where you aren’t taxed on the interest you earn or any dividends you receive or capital gains you make. An ISA is basically a tax-free ‘wrapper’ that can be applied to a huge range of financial products.
With ISAs you don’t get any extra contribution from the government in the form of tax relief as you do with pensions. But – except in the case of the Lifetime ISA – you can withdraw your money at any time (subject to any rules about the term and notice period required) and you won’t be taxed on it.
Everyone has an annual ISA allowance, which is the maximum amount you can invest in ISAs in the year concerned. In the current financial year (2018/19) this is a generous £20,000.
There are four main ISA categories: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA (IFISA) and Lifetime ISA. You can divide your £20,000 ISA allowance among these in any way you choose, but you are only allowed to invest in one ISA in each category per year. Let’s look at each type in a bit more detail…
Cash ISA
Cash ISAs are like standard savings accounts except the interest you receive doesn’t incur income tax.
Unfortunately interest rates are very low at the moment. According to price comparison sites, the best rate for an instant-access cash ISA is currently 1.45% with Virgin Money. With inflation at 1.8% (January 2019) that means even in the best paying cash ISA your money will still be losing spending power when invested this way.
What’s more, the new Personal Savings Allowance (PSA) means most people can get up to £1000 in savings interest without paying tax anyway. As a result of these things, cash ISAs have lost much of their appeal, though if interest rates rise they may become more attractive again.
It is also worth bearing in mind that money invested in a cash ISA remains tax-free year after year. So if in the years ahead interest rates on cash ISAs rise, the benefit of having one will increase as well.
Nonetheless, I have decided not to invest any of my ISA allowance in a cash ISA this year, as I have (in my view) better uses for my money. You might see this differently, of course!
Stocks and Shares ISA
Stocks and shares ISAs are a good choice for many people saving long term. Over a longer period the stock market has outperformed bank savings accounts, often by a considerable margin. You do, though, have to expect some ups and downs in the value of your investments in the short to medium term.
You can opt for a standard stocks and shares ISA offered by a wide range of financial institutions and let them choose your investments for you. Alternatively you can use self-investment platforms such as Hargreaves Lansdown or Bestinvest to choose your own investments from the wide range of shares and funds available.
IFISAs are on offer from a small but growing range of peer-to-peer (P2P) lending platforms. P2P platforms allow people to lend money to businesses and private individuals and get their money back with interest as the loans are repaid. If you invest in the form of an IFISA all the interest you receive from P2P lending is paid tax-free, otherwise it is taxed as income (though interest from P2P lending does qualify for the Personal Savings Allowance of up to £1,000 a year, mentioned above).
Peer-to-peer platforms generally offer more attractive interest rates than bank and building saving accounts (or cash ISAs) – from around 4% to 10% or more. They aren’t covered by the same guarantees as the banks and are therefore riskier, though. And if you need your money back urgently there may be delays and/or extra charges to pay.
Nonetheless, in the current climate of low-interest savings accounts and volatile stock markets, more and more people are looking to IFISAs as a home for at least some of their savings.
Some leading peer-to-peer lending platforms which offer IFISAs include Ratesetter – which I have invested in myself and reviewed in this post – and Funding Circle, which lends to businesses.
Lifetime ISA
Lifetime ISAs or LISAs are a new-ish initiative from the government to encourage younger people to save. They do have one big drawback for older people: you have to be under the age of 40 (though over 18) to open one.
LISAs are designed for two specific purposes: buying your first home and saving for retirement. How they work is that you can pay in up to £4,000 a year (lump sums or regular contributions) and the government will top this up with another 25%. As long as you open your LISA before the age of 40 you will continue to receive the bonuses on your contributions until you reach 50.
So if you pay in the maximum £4,000 in a year, the government will top this up to £5,000. If you pay in the full £4,000 every year from the age of 18 to the upper limit of 50, you will therefore get a maximum possible bonus from the government of £32,000.
LISAs are therefore somewhat different from the other types of ISA mentioned above, but nonetheless any money you invest in one comes out of your annual ISA allowance (currently £20,000). So if you pay the maximum £4,000 into a LISA this year, that comes out of your £20,000 ISA allowance, leaving you with ‘just’ £16,000 to invest in other sorts of ISA.
Your money will grow without any tax deductions in a LISA, and you can also withdraw without having to pay tax. However, there are certain restrictions. In particular, you can only use the money in your LISA for one of two purposes: paying a deposit on your first home or saving for retirement. While you can access your money for other reasons, you will then lose 25% of the total, including your own contribution and the government bonus along with any investment growth. That means in many cases you will get back less money than you put in.
The 2018/19 ISA allowance is a generous £20,000 and offers the potential to save a lot of money on tax assuming you are lucky enough to have this amount to save or invest. But, very importantly, it cannot be rolled over. So if you don’t use your 2018/19 ISA allowance by 5th April 2019 at the latest, it will be gone forever. It is therefore important to attend to this now and ensure you get as much value as possible out of this valuable tax-saving concession.
As always, if you have any comments or questions about this post, please do leave them below.
Disclosure: this post includes affiliate links. If you click through and make an investment at the website in question, I may receive a commission for introducing you. This has no effect on the terms or benefits you will receive. Please note also that I am not a professional financial adviser and cannot give personal financial advice. You should do your own ‘due diligence’ before making any investment, and seek professional advice from a qualified financial adviser if in any doubt how best to proceed. All investments carry a risk of loss.
If you enjoyed this post, please link to it on your own blog or social media:
