The Big Money Guide

Tag: budgeting

How to Stay Out of Debt This Christmas

Last year the Money Advice Service (MAS) carried out a survey the results of which indicated that approximately 34% of Britons feared they would end up in debt after spending too much over the Christmas period. The organisation says all the information at its disposal indicates that this did indeed happen. Getting in debt is never good but if you need professional help then David Boehrer Law Firm may be able to help!

Very often, it’s simply a lack of financial planning (and restraint) that causes people to end up with money problems after the Christmas period. This is why MAS decided to publish a number of tips to assist people with their financial planning this year. I think gordonlawchicago.com would provide excellent assistance to those struggling with their planning.

The organisation says that the first step is to draw up a budget for the festive season to make sure you don’t spend more than you can afford. Draw up a list of holiday expenses such as Christmas dinner and gifts and if necessary cut down where it’s needed.

Buying gifts long before the time will enable you to make use of special offers and discounts, while waiting until the last moment will inevitably end up being more expensive. Don’t forget the online option – there are often great discounts on offer from online stores this time of the year.

Cut down on non-essential items such as eating out for lunch or buying expensive takeaways. Also, consider cheaper alternatives for Christmas gifts. It is, after all, the thought that counts, not the price of the gift.

As Jane Symonds of MAS rightly points out: “Christmas can be an expensive time of year, but it’s important to know that you don’t have to live beyond your means to make it a fun time, especially if you plan well in advance – after all, it does come every year!”

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November 11, 2014
Housing Costs Eating Away at Disposable Income

If you ever wonder why you still haven’t figured how to get out of debt after so many years a new study might have the answer: it’s simply because average weekly wages have failed to keep pace with the rising cost of living. Almost everything we buy has suffered from price hikes due to inflation and profit hungry companies – particularly in the last few years.

Research by estate agents eMoov found that the cost of 20 cigarettes has increased by 4,370% over the last 40 years, the Daily Mail newspaper by 3,000%, cinema tickets by 2,133%, postage stamps by 2,067% and house prices 1,879%.

Compare those figures with average weekly wages that increased from £32 in 1974, to £517 today – an increase of 1,616%.

The cost of the average house has gone up from £9,927 to £186,544 since 1974. To place that into perspective: it means that the average worker had to work 310 weeks to cover the cost of the average house (without interest) in 1974. Today the same worker has to work 360 weeks to cover the cost of the same house. To put that differently: the monthly mortgage repayment is gobbling up an ever-increasing share of workers’ income. Conuslt a premesis liablity lawyer for expert advice.

While one could argue that people should be prepared to cut down on cigarettes and entertainment, housing is a basic living expense – and the study shows that it is taking up an ever growing share of the pie, leaving ordinary Britons with less disposable income.

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October 28, 2014
New Tax-Free Pensions Could be Disastrous

A brilliant move that could help to stimulate the sluggish British economy or a mis-selling scandal in the making? The government’s decision to open up pension funds for people over 55 next year so they can withdraw cash from their fund (partly tax free) has elicited mixed responses from industry experts.

Tom McPhail of Hargreaves Lansdown said: “The chancellor appears to be creating the perfect environment for a mis-selling scandal.”

The Treasury insists that its decision, which will come into effect in April 2015, will benefit thousands of pensioners who will be allowed to withdraw money from their pension savings as often as they want, with 25% of each withdrawal being tax free.

Tom McPhail, a pension expert, said that while he supported the move, he must also warn individuals that if the money is re-invested in the wrong way it could end up providing very poor returns upon retirement.

He added that many professionals don’t get it right all the time, so it was inevitable that ordinary investors would get it wrong more often, especially if they acted without a financial adviser.

Chancellor George Osborne also announced that people would be able to pass on their unused pensions to family members tax-free.

Osborne went on to say: “We’ve extended the choices even further by offering people the option of taking a number of smaller lump sums, instead of one single big lump sum.”

From our side we can only warn that using your pension money to get out of debt could prove disastrous in the end. Getting professional debt advice is a much better option.

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October 23, 2014
Top tips for saving money around the home

In difficult financial times there is often the need to tighten our belts and ensure that we are getting the best from every penny we earn. This can sound like a rather big chore, but there are many different ways that you can save money, starting with your home.

Here are a few top tips to help get you started. Once you get into a money saving mindset you will find that these ways will become a part of your everyday life.

1. Energy saving bulbs

Energy saving light bulbs are a great way of reducing your households energy costs. By swapping all your lightbulbs for energy saving bulbs you can significantly reduce the cost of your energy bill. Especially now it is coming into winter.

2. Lights off

When you are not using a room, switch off. Try to use your lights only when you need them. You will soon get into the habit of switching off the lights as you leave a room.

3. Turn down your thermostat

By turning your thermostat down by just a few degrees you will be able to save more heat and thus, more money. If there are rooms in your house that you very rarely use then you can also turn the radiators off completely.

4. Get rid of your tumble dryer

One of the biggest drains on your energy bills is a tumble dryer. If you are able to hang-dry your clothes you will be able to save more money than you realise.

5. Always make a list

When you make a shopping list you are more likely to stick to it. By wandering around the supermarket without a list you are certain to spend more money. By making a list you can help to save money. If you can reduce your weekly shopping by £10 per week that is an annual saving of £520. And remember, never shop hungry.

6. eBay

Autumn is a good time to clear out your cupboards, garage and wardrobe. Why not auction off your unwanted items on eBay? It only takes a small commission and is a safe way of selling your items.

7. Car boot sale

Another great way to make some extra cash is to have a car boot sale. Collect all the unwanted items in your home and plan to visit one of your local car boot sales. If you are not sure if you have enough items you can always plan one with your friend and split the profit.

8. Beware of automatic car insurance renewal

Renewing your car insurance is essential. Going with the same insurer is not. Make sure you do your homework. You could find you save yourself a lot more money. Websites such as moneysupermarket.com and comparethemarket.com are a great way to beat your current car insurance quote.

9. Gym membership

If you currently have a gym membership you are not using then now is a good time to cancel it. If you live close to work consider walking, running or cycling there. You could also purchase a second-hand exercise machine. Try your local Freecycle or Gumtree site.

10. Watch your impulse buys

If you tend to buy things on impulse then it could be time to reduce your spending. Set yourself a limit each month for a treat and avoid spending unnecessarily. Online shopping can help too as you are more likely to consider your purchase instead of purely buying on impulse.

If you are struggling to manage your finances you may want to consider a debt management plan. It is always wise to seek expert advice for anything you are unsure of. Services such as Keller Law Offices provide expert law advice for example.. But by making a few small changes in your household you will quickly be able to save a bit more money each month.

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December 28, 2012