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This is why I dread old age

9/30/2021

 
The image below from tax.service.gov.uk is one reason I dread old age. It is from the UK government website and it says I'll get about £700 a month to live on when I am of retirement age. This is IF the state pension will still be around. I encourage you to look at your personal tax details to get a sense of your own situation. Notice that you can only get this monthly sum if you contribute for a minimum (10) and a maximum number of years (depending on your retirement age, example below is 26 years).
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This is also a reminder that state pension is mean to be one part of your pension income. If this amount allows you to meet your needs at say age 71, then do nothing new. If on the other hand, you want to travel, cover expenses, start businesses, eat well, and give more, then you'll need to supplement this by saving for your self today either in a work pension, a SIPP, a LISA or open a separate savings account solely for old age care. Flip the dread and read more on pensions.

What can I do? A 3 min peek into your pension ​

Have a look at your pension savings, how much is in there? Is it on track for the future? Do you need to make any change?
​
Check out this article on how to get a free pension top up.
If you do not have a pension, you can open a savings account, a SIPP or a LISA; speak to a financial adviser or look online for the best product for yourself. ​
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Are you friends with your future $£lf?

7/26/2021

 
How do you see your self in the future? Research shows that people who are able to imagine their future self in a "vivid and realistic" manner as an extension of their current self end up having more money and assets. 
Source: Ersner-Hershfield et al. (2009)
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It can be difficult to imagine yourself 4 weeks, 4 years 40 years from now but the research shows that "what matters is how much a given individual feels he or she will be the same person over time" (i.e. approaching No 7 in the image above). By 'same' the researchers mean, you expect your interests, dislikes, values and beliefs to remain aligned.

If you see your future self as a stranger, you won't feel like giving your money to help them because you won't feel like you are getting anything in return. In money terms, you are unlikely to save for the future or put money aside for retirement.
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On the other hand, If you feel like your future self is an extension of your current self, then helping your future self is just like giving your current self a helping hand. That feels good and so you'd be more likely to give your future self money through savings or pensions and feel rewarded.

Interestingly this applies at a wider level - countries that have positive attitudes towards the elderly reported higher savings rates.
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How can you get closer to your future self?

1) Create a realistic picture of future you via Apps at different ages - 25, 40, 60, and beyond (see example below). Do you like what you see? Are you willing to give old you some money? Save the image on your phone or print it out and hang it up.

2) As your future self, write an optimistic and detailed letter to your current self. Describe how you are doing and what you have accomplished. Want to get started? See our money habit of the month below.
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By doing these exercises, the hope is that you'll agree to give your future self a raise by saving and investing regularly for a better lifestyle.
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Is your money safe with banks?

6/29/2021

 
You are on track with your savings and investments plans. You also have different bank accounts for your money. What's more, your mortgage is from another provider and you use different apps to invest and manage your pension.

Think about this - what if the bank or investment platform goes bust (like this one), how much can the UK government pay you back to protect some of your hard earned cash? 

The FSCS is a scheme you may have recognised on banks website, investment websites, emails and more. What are they trying to tell you? How can you make a claim and how much protection do you actually have? 


Trivia: Imagine you have £50k in Lloyds bank and £50k in Halifax, how much of your money is protected? Hint: not all of it.
The Financial Services Compensation Scheme (FSCS) formed in 2001 is a free resource which acts as an independent body that protects customers of financial firms that fail. The FSCS covers:
  • Savings 
  • Bank accounts
  • Pensions
  • Insurance 
  • Investments
  • Mortgages
  • Bad financial advice
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How much of your money is protected?
Source: FSCS

Money held in banks or building society
  • up to £85,000 per eligible person, per bank, building society or credit union.
  • up to £170,000 for joint accounts.

Money in Investments 
  • Investment provision is now £85,000 per person per firm
  • Investment intermediation* is now £85,000 per person per firm

Mortgage 
  • Home finance intermediation* is now £85,000 per person per firm

*Intermediation is when an entity works on your behalf to get you financial products

Your Pensions
  • Life and pensions intermediation is now £85,000 per person per firm

Your Debt
  • Debt management is now £85,000 per person per firm

Insurance
  • Long-term care insurance is now 100% of the claim per person per firm


What if I have more than £85k?
Based on my research you may to have distribute the excess of your money across different banks and or platforms to be fully protected. Sometimes, this can be expensive due to the fees that could be paid. This also also be difficult to manage over time as you cannot exceed 85k in total (capital + interests or dividends). Alternatively you can trust that the provider is taking the right steps to protect your money and is in alignment with the Financial Conduct Authority (FCA) rules.

How do you make a claim?
To make a claim, click here to find out if you are eligible.
Remember: Your money is safe with FSCS up to a limit.
​Your checklist
  1. Make sure your money is held in companies that are enrolled in the FSCS scheme. Ask your provider or use the FSCS checker to know for sure: Some companies have subsidiaries or banks that share the same banking license. The savings guru gives this great example - if you have 50k saved with Lloyds Bank and 50k with Halifax, you'll only get the 85k protection as both companies share the same license.
  2. ​Remember that this limit applies per person, per bank/financial institutions
  3. Not all financial products are covered so check carefully before you sign up
FSCS Protection Checker
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A 2 min video on FSCS

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Three ways to go Green with your money

5/30/2021

 
Savings accounts that plant trees when you open an account, Banks that only loan to charities, Cheaper mortgages that reward you for an energy efficient home or 1-click robo-advisors that help you invest your money in green ways. ESG, Impact Investing or Green Investing is taking off these days. But what is it about and how can you use your money to align to your beliefs?​
​There is a lot of about 'Going Green'; you may be actively looking for ways to use and grow your money in ways that are helpful to society, the environment and in alignment with your own ethics or beliefs. You may be interested in supporting companies that for instance, treat workers well, are socially responsible and take sustainability seriously. Your money has impact and investing is one way you can make a loud positive noise.

If you are interested learning how to make it happen, below are 3 ways to grow your money and do good.
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Savings Account that plant trees
One of the first areas you might to consider is where to put your cash. Companies like Gatehouse bank is encouraging savers to open on of their green savings accounts; by doing this, a tree will be automatically planted. Charity Bank uses your savings to make loans to charities and social businesses.

Cheaper rates, Green Mortgages for Energy Efficient homes
If you buy an energy efficient home, some banks (like NatWest, Barclays) are promising lower mortgage rate (monthly payments) to encourage you to remain sustainable. The banks will look at the energy performance certificates (EPC)  or your energy rating of your property which must be rated A or B along with other typical  factors (like your income, deposit, credit score and more) to determine your mortgage. EPCs are valid for 10 year and if you want to know the rating of your home, click here to find out.

Invest in Green funds on the Stock Market
​Impact Investing, Environmental, social and corporate governance (ESG) funds, Ethical Investing, Green funds used interchangeably are themes or words that allude to a group of companies that are focused on doing good.  These companies typically create products or have plans in plans to become more ESG sound. As a shareholder buying into one of these companies of funds (group of companies) you have the ability to use your influence to help them raise their ethical or green standards.

You can choose individual companies to invest in that are creating products that are ESG friendly. You can look at their annual reports to see what they are doing about ESG or Going Green.

You can also choose funds that have been set up to focus on ESG. A quick google search can yield multiple results. Many
robo-advisors have set up 1-click funds for investors to get started with no hassle.

​Now, some of these companies or funds may be using green as a new buzz word to get you hooked so it is important to check the credentials of these companies to ensure they align with your moral goals.


Read here to remember to keep fees low.
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Invest in Everyday people...building insect pet protein
Everyday people are also taking part in the Green Wave. Websites like Seedrs and Crowdcube allow you to invest in small early stage companies that are tackling the ESG challenge head on. Where it is creating biodegradable products, building technology to reduce carbon emissions, creating insect protein pet food or even building plastic roads; you can choose to support an entrepreneurs dream to create products that you'd like to see in the world. Of course every investment has its own risks so read the terms and conditions carefully.
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Savings you need to avoid being house poor

4/8/2021

 
Home ownership is a goal many have but I have seen many stories of people buying their home and becoming worse off financially because they have saved for years and have put ALL their savings to get a roof over their head. 6 months later, they have save just enough to get a couch and the slog continues. This doesn't have to happen.

in this post, we explore ways to avoid being house poor and it takes planning and prioritising your well being.

Rule of Thumb: The deposit is just the start add fees, tax and savings.​

Key takeaways
  • Don't deplete your ALL savings
  • Plan in advance
  • Get money back from clever sources
Build your emergency fund. This fund should not be used for the home. Your emergency fund is purely for your own insurance and should cover a minimum of 3 months. I would even take this further and have a small pot for fun so you remember to prioritise yourself.
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Don't only save for your deposit, legal fees and Tax. Factor in payments for furniture, furnishings and at least two months utilities. ​Let us know if we are missing any other costs.
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Get cash back for all the spending. As a new home owner, you'll be buying a lot of things in a given time period. So get cash back to get paid while you spend. This is money you can spend else where.
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12+ guilt free ways I cut my spending to save more

If it doesn't appreciate, get it pre-loved
To save money, use pre-loved websites like e-bay or gumtree for things that you are not to precious about. Things like flower pots, cookery are great candidates.

​Stick to your budget and take your time
You've already made a budget for your home purchase. Your budget is the cornerstone of your financial life - it is your partner in helping you to achieve your financial priorities. It also keeps your focused for all the other non home expenses you need. So future you asks that you stick to it and prioritise your joy.

I stopped making these mistakes and it changed everything
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I have a high salary how can I keep more of it?

3/30/2021

 
Someone reached out to me to try to solve the puzzle related to earning a high income as an employee (£237,000 to be exact) and using tax laws and perks to keep the most of the money to save and invest.

I scoured the tax rules to pull a quick report that broke down how that money can be allocated in tax friendly accounts or where tax relief can be obtained.

This exercise was a great reminder on why we should invest in a tax advisor to help us keep most of our money. A tax advisor is available to all income levels and although there could be costs associated with this service you can save up and use them at least once a year to get your monies in order. If you are on a low income, you can get free advice from the government. I have just opened a Money pot called Life Admin where I'll be saving to get a tax advise and formalise a Will.
Many wealth builders have great lawyers, accountants, doctors and financial advisors. What can a tax advisor do for you:
  1. Plan your finances according to your goals
  2. Make your money tax efficient using the tax laws in place
  3. Give advice on when and how to file your tax return to get tax relief

How to manage a £237,000 income and Tax.​ Click here or the image below to see the full report.
​
Need a Tax Adviser, click here to choose who is appropriate for you or use the all in one service from Taxscouts and get 10% off.
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I stopped making these mistakes and it changed everything

2/23/2021

 
What money lies have I stopped telling myself? What is my biggest financial asset? How do I spend and save today? A few years ago I had ZERO knowledge about money and in this post, I look back to see what key mistakes I've stopped making that have become a game changer in my life. 

My 5 money mistakes
  • ​Spending and spending with no real plan
  • ​Not being deliberate about saving
  • Thinking I've got my pay-check. That's all I can make right now...
  • Not setting my pension to the max matching to get free employee match 
  • Believing the stock market is scary​
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I remember always being so surprised that I had nothing left at the end of the month ​
Spending and spending with no real plan
Before I began to get an handle on my finances, my money would come into my current account and all of it would stay there. Slowly my rent, bills would get paid and if at all anything was left, I would still have a reason to spend it.

I remember always being so surprised that I had nothing left at the end of the month and when I thought about the effort it would take to go through my spending,  in my mind, it was not worth the effort. The money was already gone.

Today, I have a budget which I optimise (find ways to 
reduce my expenses and increase my savings and investments) regularly. Nothing stays in my current account after all bills are paid (my current account doesn't pay interest) and monthly savings and investments have left. Every planned spending is accounted for and I no longer suffer the end-of-the-month-where-did-my pennies-go-syndrome. If you need a money goal to help you plan your spending start here.
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To be honest, by the time I was 23 years old, no one or school had taught me how to save, no one sat me down to talk about debt or showed me savings accounts and it definitely did not come up as a topic amongst my friends. I simply had no positive money role models.
Not being deliberate about saving
Just as I spent with no real plan, it is no shocker that I had nothing to save and this happened every time.  To be honest, by the time I was 23 years old, no one or school had taught me how to save; no one sat me down, showed me savings accounts, opened a piggy bank and it definitely did not come up as a topic amongst my friends. 

​I knew I wanted to have money but to me it was 
magic that makes this happen and this magic happens to special people. Little did I know that magic starts with a budget. A budget is the greatest energy source for your money - no lie, they are like batteries you charge to take you far. It shows you where all your money goes and how you are doing. Today, I know of many magic wands that are accessible to all of us  where it is savings accounts, the stock market, pensions, private equity, real estate, peer to peer lending, Crypto.

This is how I am now deliberate about my savings are as follows:
  1. I use my budget to plan where I want to save and I plan how much to put into each area
  2. My budget is also helping me to track my savings rate. I want to increase it from the prescribed 30% so I can reach my goals faster more and give more to others
Regarding my lack of knowledge, Wealthsquats has become my way of sparing others that experience and providing options to explore.
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  • Even when I am not at work doing my 9 to 5, my money is working 24/7, growing,  paying dividends or interest. This became a huge revelation to me.
Thinking I've got my pay-check. That's all I can make right now...
Once I got my first proper job, I breathed a sign of relief  I now have money. I revised this thinking after my first pay-check (with National Insurance (NI) and taxes deducted, very little was left). Since this was my only source of income, there wasn't much else I could do except find ways to increase my income constantly - this was a hard task. I knew I had to find a way to fatten my income outside of my employment.

I went to a seminar once and they spoke about making money while you sleep and multiplying your hourly rate. Since then, this quote from Dave Ramsey has stuck with me-Your most powerful wealth building tool is your income. One of the ways I am applying this principle is by allowing other companies to work for me by buying into funds or shares. When these companies do well, their prices increase and/or they give a dividend. If they don't do great, I take the risk of having lower return but on average and over a long period of time, I should win.

Of course there are other things you can do like getting another job for your 5 to 9 but if want an 'simple' co-worker earning for you without any additional effort, you now know your options.

The results:
  • Even when I am not at work doing my 9 to 5, my money is working 24/7, growing and paying dividends or interest. This became a huge revelation to me.
  • Imagine I used to make £10 per hour, with my money working 24/7 my hourly rate is now £12. As I continue to save and invest, this amount continues to grow.
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Before writing this post, I looked at my overall pension to see the current value and hands down - it is the largest financial asset I own today.
Not setting my pension to the max matching to get free employee match 
When I started my first job, I think I opted out of the work pension plan initially or I may have begun with saving 1%. At this time, if I put in up to to 5% of my salary, the company would match that 5% and I would have 10% paid into my pension pot.

Now as a 23 year old, why would I give away 5% of my money for old age when I am young and in my view at that time, close to the London poverty line? I kept this view for about a year and  half when I got serious about transforming my financial life.

​I spoke to a friend at that time who advised that the easiest place to start getting money was by increasing my pension saving to the 5%. This not only allows me to get free money but it also reduces my taxes. 

Before writing this post, I looked at my overall pension to see the current value and hands down - it is the largest financial asset I own today. This is not surprising given this UK research where pensions can make up to 60% of households net worth. This are some reasons for the growth:
  • I started reasonably early 
  • I put in money every month and to the max. Remember: If you do not have a work place pension, you can use a SIPP and get tax relief. You can also use a Lifetime ISA and get 25% from the government towards your pension
  • I allow compounding (inability to touch it) to take effect.
  • The market is doing well (of course things can go up an down and I am taking a long term view)

 I am now looking forward to being older; I've even calculated how much I'll need to live comfortably. I also have some peace of mind that the efforts I am putting in now will lead to a beautiful life and that is exciting. I like pensions because they force us to save for old age (otherwise, we will just stumble into it), once the money is gone it is out there working, growing to make the most for you.
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Fast forward to age 24, I read a book by Tony Robbins which simplified the foreign language and and so I quickly open my brokerage account with £25. I have not looked back.
Believing the stock market is scary
As a young girl, I remember watching CNN evening news and at 9pm GMT, we would hear the NYSE Bell ringing to close the day of trading. I must have watched this happen hundreds of time but I never understood why the bell was there in the first place and what those green and red triangles next to names like LSE, NYSE, DAX etc. meant. I did not know that I was witnessing the opening and closing of money making opportunities. The commentary the pundit gave after each closure was like a foreign language to me, one I found very boring.

Fast forward to age 24, I read a book by Tony Robbins which simplified the foreign language and and so I quickly open my brokerage account with £25. I have not looked back. Today, I know the stock market is a huge source of wealth for the top 1% in the UK and is designed to be confusing (with the graphs and financial terms). It is actually not confusing and I am very supportive of the low fee robo-advisors that make it easy for you and me to take part this huge wealth engine.

Last week, a family member was discussing a real estate scheme that guaranteed 8% return if she put in £5000. I immediately opened by brokerage app and told her that one of my fund is posting 22% gain. Five years ago, there is no way I wold have been able to suggest this as an option to explore but now I know more and can suggest ideas that could generate a 14% pay bump. This is the true power of knowledge.
Now, your turn, do you have any mistakes you've made? 
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UAE: Makes its citizens rich like this...

2/23/2021

 
Is your country making you rich?

I've written extensively about what we can do on our own to build wealth over time; have a savings goal, build an emergency fund, stock market investments, a pension and more. Let's change the focus for a moment and imagine you don't have to do 80% of this because your government has programmes to easily help you build wealth. How would that feel?

In this post, I explore the United Arab Emirates (UAE) and the perks given to it 1.4 million Emirati citizens who have an average net worth of $99,000.

Key Lesson
  • We should learn more about the policies that govern where we live​ because they make difference to our wallets!

Infographic: What do you get an a citizen of UAE? Plenty!

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Healthcare (free). Roof over my head (check). Job (guaranteed), Large pension (check) & more

UAE  is a country known for Dubai, its oil wealth, architectural landmarks, home to millions of expats  and more. Its government has created a financial cushion for its citizens with the focus on giving them a high standard of living. It seems Emirati citizens might have the dream quite a lot of people are after, much akin to lottery winners; you don't have to worry about a job, your old age, your health even your marriage costs! 

Some lessons and next steps
  • Explore the benefits that are available to you in your country of citizenship or residence. If you are in the UK, you can start by learning about your tax benefits here.
  • For countries where such perks are not available, learn how to convert your income over time to building your own welfare state​.
  • If all of this is making you think of moving to the UAE and becoming a citizen, read more here. There are also perks for foreigners like tax free income and100% business ownership.
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60+ Financial Goals you can achieve anytime

12/20/2020

 
Here's a 60 plus list of money goals you can achieve anytime. We've covered the research behind the power of writing down your goals. So choose yours or add to the list.​

Do right with my cash savings

  1. Calculate my savings/expense rate
  2. Complete savings for my emergency pot​
  3. Save one month worth of expenses into my emergency fund​
  4. Move my cash savings into the best interest rate available

Travel & Fun

  1. Start a Travel savings pot
  2. ​Start a fun jar so I can enjoy my money with no guilt​
  3. Give myself a raise of __ a month​
  4. Start saving for a year off work (Target is £___ by 20__)​
  5. Renew my travel insurance
  6. Find opportunities to win free stuff

Protecting my Family

  1. Open children's school fund
  2. ​Start a Junior ISA for the kiddo(s)​
  3. Build a savings account to start supporting my parents in 3 years​
  4. Buy life insurance​
  5. Start a baby savings pot​​
  6. Start saving for my wedding​​

Save better and more

  1. Automate all my savings
  2. Experiment with Crypto​
  3. Stop waiting for a stock market crash to invest, do regular savings
  4. Invest __ in the stock market​
  5. Grow my Stocks & funds portfolio

Manage Debt

  1. Reduce my debt by __ this year​
  2. Pay off my student loans
  3. Negotiate better interest rates
  4. Pay off all credit card debts
  5. Read this article

Take care of my future

  1. Start a personal pension
  2. ​Top up my pension savings by ___
  3. ​Write a Will (free)
  4. ​Find out when I can retire. it is Year 20__​
  5. Update my Will​
  6. Increase my employer pension matching to the max​
  7. Plan my retirement activities
  8. Speak to a financial adviser about inheritance​​
  9. Retire​

Give Back

  1. Increase Charitable donations by __
  2. Review the charities I donate to check that they are still effective
  3. Use CAF- Give as you earn to donate and reduce the amount of tax you pay

Homeownership 

  1. Buy a home
  2. Start saving for a home deposit via a LISA or high-interest savings account
  3. Insure all the appliances in my home
  4. Overpay my mortgage by __
  5. Remortgage my home and get a lower interest rate​
  6. Search for a better internet, gas/electric deal to reduce my expenses​
  7. Buy a second home and rent out my first​
  8. Get home and contents insurance​
  9. Buy land​
  10. Check the warranty and Guarantee of my household products

Financial Health Check

  1.  Improve or Maintain my credit score​
  2. Be intentional about where I spend​​
  3. Write down my savings goals​
  4. Start recording my financial progress (e.g. Net worth)
  5. Learn about taxes
  6. Review my monthly subscriptions and agree which ones I'll continue
  7. Review my standing orders and direct debits

Experiment with my ideas

  1. Research and write my business plan
  2. ​Start my side hustle, experiment to see if I can maintain it
  3. Get feedback on my business plan from an expert or a trusted friend​
  4. Use social media to promote my side hustle and get feedback​​

Enablers

  1. Get health insurance​ or critical illness cover
  2. Increase my income by __​​
  3. Start a self-investment pot for my self so I can retrain & get new skills​
  4. Get a promotion at work​​

Big overall Goals

  1. ​Ask others about their financial goals​
  2. Financially recover from this year​
  3. Save __% of my income this year
  4. Maintain or increase my savings rate​​
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Pay ZERO interest on your Credit Card debt

11/20/2020

 
When you get a credit card, the one thing of concern is the interest rate. Unmanageable and very high interest rates can be a problem when managing our money. While credit card companies make money off of high interest rates, we can sometimes struggle to keep up and are left with high repayments and bad credit scores. If you have credit card debt or want to make a big purchase, keep reading to learn how to pay off your debt and no interest using Balance Transfer and Purchase credit cards.

Let's change the game
In this post, we learn how to pay zero interest rate using credit cards. This applies if you 1) already have a high credit card balance or 2) you want to make a large purchase. There are rules to play by but learning this technique can put money  back into your pocket as opposed to putting the money in the lenders account.

Key Points
Balance Credit Card
Move debt from your existing credit card to another and pay ZERO interest during the interest free period
Purchase Credit Card
Buy goods or services and pay ZERO interest during the interest free period
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Your Credit card should be doing this for you

A credit card is a type of unsecured debt that is to pay for goods or services. If you are able pay in full, you credit card helps you build a good credit score and puts you in good financial health. If you do not pay in full, lenders charge high interest rates and the debt can grow if it is not managed.
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Make sure your credit card is giving you one of the following. You can contact your lender to discuss options available to upgrade your card.
  1. Cashback
  2. Travel Miles
  3. Vouchers or points
  4. Any other rewards

Read More
The Good and Bad of the Credit Card
How to build a Credit Score
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Use a Balance Credit Card to pay ZERO interest if you already have credit card debt

A balance credit card is a product that allows you to move your leftover credit balance onto a balance credit card. Doing this allows you:
  • To pay 0% interest for a set period e.g. 3 to 29 months. This is the interest free period. After the interest free period, the interest rate  can be very high e.g. 21%
  • During the interest free period, you pay down your debt and no interest
  • Before the interest free period is over, you can close the account with no penalty
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An Example: The good and less good way of using Balance Transfer Credit Card
Jess has £5,000 in credit card debt to pay. So far, Jess pays the minimum per month and also pays interest. Jess wants to pay this debt off in 18 months and has been working on improving her credit score. Jess looks online and see companies like Virgin money, Halifax, HSBC, M&S and more who have balance transfer offers. Jess applies and moves her balance to the new balance card. She makes sure she pays the minimum each month to retain the interest free off. By month 16, Jess has paid off all her debt. She closes the account with no penalty and moves on with the rest of her glorious life.
THE OUTCOME: Jess pays off ALL  of her debt and ZERO interest.

If Jess only paid £3,000 during the 18 months, the left over debt of £2,000 will incur an interest rate of e.g. 20%.
THE OUTCOME: Jess pays down SOME of her debt and pays HIGH interest on the remaining debt
Use balance credit cards if:
  • You are currently paying interest on your current card and want to pay ZERO
  • You are determined to pay off your debt in a set time 
  • You can pay off the debt in full in the interest free time
  • You do not plan to grow your debt and make it unmanageable
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Tips
Download Clearscore or Experian. Depending on your credit score, they can pre-approve you for balance transfer credit cards. This means based on the information they hold on you, you can find out which card and terms you are eligible for. I checked with some friends and found that the better your credit score, to larger the interest free period you can get. So a friend with a relatively lower credit score, could get balance transfer cards with a maximum of 6 months interest period and another with the highest credit score was eligible for 29 months. Mind you, the credit limit you get will depend on your credit history.

When searching for a balance transfer card, keep an eye of on the following so you pay less:
  • Choose Zero or low Balance transfer fee: the is the money lender charge to allow you to move your balance from one lender e.g. Halifax to the new card e.g. from TSB. This fee can be high and is usually a percentage of the amount you are transferring. Make sure this is as low as possible so take your time and shop around
  • Annual Fee must be Zero. The goal is to keep more of your money and not spend.
  • Choose a comfortable Balance transfer interest free period As mentioned above,  your interest free period depends on your circumstance. The higher the credit score, the longer time you are eligible for.
  • Know the interest rate that applies following the interest free period, any left over debt is subject to high interest rates. At this time you can either choose to pay off the debt or find another balance transfer card to move the balance. 
  • The credit limit (the maximum you can spend) will be determined by the lender in review of your credit score and other circumstances

Use a Purchase Credit Card if you want to make big purchases and pay it off in a given time

A Purchase Credit card, allows you to make a purchases and pay it off in a given time with ZERO interest. This works if you want to buy e.g. large furniture, travel tickets etc. If you are not able to pay off the debt in the interest free period, you could move the debt to a 0% balance transfer credit card.


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A purchase credit card gives similar benefits to a balance transfer card.
  • Pay 0% interest for a set period e.g. 3 to 29 months
  • During the interest free period, you pay down your debt and no interest
  • Before the interest free period is over, you can close the account with no penalty
  • Annual Fee must be Zero
  • Choose a comfortable interest free period 
  • Know the interest rate that applies following the interest free period​ as it can be very high
What's the difference?
​
Balance Credit Card
Move debt from your existing  credit card to another and pay ZERO interest during the interest free period

Purchase Credit Card
Buy goods or services and pay ZERO interest during the interest free period
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Final Thoughts
Balance Transfer and Purchase Card provide a good way to handle debt. You'll sometimes find lenders provide both balance transfer and purchase options on a given card. This can give you more flexibility to handle your money.

With good financial discipline you can significantly reduce the debt you pay and make your money work for you.  As with everything read the terms and conditions before you proceed with your application.
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Infographic: I understood very little about Tax until now

10/20/2020

 
Tax is part of our lives whether we want it or not. It touches our income, contributes to our society, our healthcare, education, roads and more.
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In this post, I spend some time looking at the UK tax rules to find out which benefits we could use to grow and protect our money. I put my basic findings in an infographic to make it simple [Scroll down to view].

So let's learn about tax so we no longer label it as highly-confusing and downgrade it to somewhat confusing (a much better space to be in).
[Quick definitions] 
  • TAX: is a payment made to the government which comes from income or things you inherit, buy or sell.
  • ​TAX RELIEF: is money you get back. It reduces the overall tax you pay.

The Tax Web

Throughout this research, I found that Tax is actually not hard to understand on its own. The confusion comes when you have to consider all parts. Take this example: 

You have an income over the personal allowance threshold whilst saving for a pension and a home which your family will support you with a deposit. 

I call this the web because to understand your tax position, you need to understand the Tax rules for income, pension, stamp duty tax and gifts.  No wonder you and I shun this topic...but to our own wealth demise.

Did you know that if you make a loss when you sell your home, shares in an ISA, or a personal possession worth £6,000 you can get a tax relief? Imagine that getting paid when you lose. These are the kinds of helpful money tips I want to know about (I've added much more below).

Get Clarity
If you work for an employer, your income tax is typically handled by your company. If you are self employed, you'll file paperwork on your own or via an accountant/certified tax advisor to pay the appropriate tax and claim relief. Anyone can reach out to an accountant or tax advisor on tax matters.

Before we move on, one question. What tax rate payer are you? If you don't know the answer, keep reading to find out.

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Reasons you should know a little something about tax
  • You earn money
  • You own a business
  • You will get an inheritance, plan to leave an inheritance
  • You donate
  • You want to reduce your tax bill
  • If you make or plan to make 6 figures
  • You made a loss when you sold an asset
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What Tax Rate Payer are you?
  • Possible Answers: 0%, 20%, 40% or 45%
 
​Your income determines how much tax you pay. The UK uses a progressive tax system, where the more you earn the more you pay in tax. So, if you earn up to £12,500 per year, you'll pay £0 tax.

​On the other hand, the highest income earners pay up to 45% of their income in tax. This can be very difficult to accept which is why many people look at ways to legally reduce their tax bill by using some  of the options outlined in the infographic such as increasing payments to their pension, using ISAs to prevent being taxed again or not taking out dividend income for a given tax year (deferring it). Some others flee the UK to low tax rate countries. Just know that your tax solution or option is unique to your personal circumstance.

Find out what tax rate payer your are here.
TIP
Use income calculators to see the breakdown of your Tax, National Insurance and Pension.

More tips & resources

  • If you make more than £183 per week, you will pay National Insurance (NI). ​Click here to find out how much NI you'll pay per year.
  • Learn more about your Personal Allowance.
  • If you make more than £100,000, your personal allowance goes down by £1 for every £2 you make over this 100k. Kirkrice gives advice on how to work around the loss of personal allowance to keep more of your money.
  • If you make more than £125,000, you loose all of your personal allowance.
  • Learn about Tax relief with EIS, SEIS and VCT.
  • You pay no Inheritance Tax if 7 years or more has passed between when you received the gift and when the person giving passes on. Find out how much is tax free here.
  • You pay no Capital Gains tax if you sell your main residential home or give your assets away to Charity.
  • If you make a loss on an asset you sell (Shares in an ISA, EIS, 2nd Property), you can get a tax relief. You can also use this method to reduce your Capital Gains tax if it is more than £12,300.
  • You can get £6 a week tax free from employers (£312 per year) for working from home (especially during Covid-19). Alternatively and depending on your tax rate, you can get a tax relief up to £2.40 per week (£124.8). You do not have to provide any evidence to make the claim. Click here for more details.
  • Pay no stamp duty land tax when you purchase a home of £500,000.
  • Learn about VAT too.
  • if you are a low income earner, you can get 20% tax relief if you save up to £2,880 into your pension in each tax year. Read more​.
Remember this:
In a given tax year you can save £72,300+ tax free!
20,000 (ISA) + 40,000 (Pension) + 12,300 (Capital Gains Tax Free allowance) = £72,300
Get Tax Advice
  • UK rules on Money and Tax 
  • Tax Aid
  • Citizens Advice
  • Income Tax
  • DO THIS: HRMC - check your tax code and National Insurance record.
  • Get in touch with a Chartered Accountant who can guide you on self assessment and Tax 

Videos on Taxes

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7 ways to make the most of your cash in a low interest world

9/29/2020

 
NS&I have cut Interest rates meaning you get less back for your money. There is speculation that other bank/lenders will follow NS&I's lead. This means that holding a lot of your money in cash will not make you rich anytime soon. What else can you do with your cash?
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  1. ​​Build your emergency fund and aim to cover at least 3 months of expenses.
  2. Pay off your debts (mortgage, credit card) and reduce the interest you pay in the long run.
  3. Research higher savings account like this one from NatWest with 3% variable rates and move your cash into these pots. These accounts come with limits so read the terms and conditions carefully. 
  4. Start with as little at £2 and Invest in the stock market using Apps like Freetrade and/or try robo-investing. Read this article to find out how the rich take advantage of this option.
  5. Top up your pension. You can save up to £40,000 a year and it reduces your taxes.
  6. Invest in promising start-ups. Click here to learn more about the opportunities and risks.
  7. Despite the cut in interest rates, you can save up to £50,000 in NS&I and get a chance to win of up to £1million which is tax free. I won £25 last month.
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Smart money moves students should make before it is too late

9/22/2020

 
Leaving university can be an overwhelming and stressful time for students and I firmly believe that Personal finance does not have to be one of these issues.​ The truth is,  all you need are a few basics to set you up for life and luckily, these are not complicated. Looking back I wish I had someone to teach me personal finance whilst at university and so in this post, I share my experience, key tips and hacks related to budgeting, saving, investing and borrowing.

Key points
  • The salary you would probably get and how to spend it
  • What to consider when choosing your salary
  • ​How to budget and still have fun
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University is a fantastic starting point to begin building a brilliant fiancial future because students have the benefit of time to apply their skills to do meaningful work
My Experience
​I know from my experience, even with a degree in economics and a job in banking, I could use someone discussing money with me. It has been one of my goals to bring this valuable knowledge back to schools. I launched wealthsquats.com to start this journey.

My vision is for all students to make clever financial choices whether it is how much to save, how to manage debt, how to use the stock market, how to be rich or how to have peace of mind about money.  This post is my view of how students can get started on their financial journey. The first step is to set up some money goals that you want to acheive. When I began this journey, my goal was to track and increase my net worth. As I progressed, I increase the amount of money I paid into my company pension from 3% to 5% to benefit from company matching and I opened a Stocks & Shares ISA to get involved in the stock market.
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Will you be self employed or work for an employer?
​Many students will choose to work for themselves as the freelance and consulting  industries continues to form a significant part of the UK economy. Others and the likely majority will find jobs with employers for instance through graduate schemes.  As a student, what does it mean to be self-employed or employed?

Self employed
  • You are your own boss
  • You get paid when you provide a service so your Income pattern cam vary
  • You take care of your own taxes and pension
  • You have to pay for your own private healthcare 
  • You own your time

Company Employed
  • You work for someone
  • Income pattern is regular (e.g. 1st of each month)
  • Company takes care of your taxes and pension
  • You also get other benefits like healthcare provided while you are with the company
  • Your time is 'owned' via contract 
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The first financial decision you make as a Graduate is what Salary to choose
Let's use the example of a student who will be employed in London. The salary this student can expect to get in London is around £29,000 - the average annual salary for graduates in London. Of course depending on the role, sector and negotiation, this figure can vary. It is important to know that the salary you choose will form the basis of how much you can save or invest. If you are able to have other sources of income, your savings and investments can expand accordingly.
The salary you choose upon graduation will form the basis of how much you can save or invest
What could be your salary?
Using the salary calculator, If you make, £29,000 a year your actual take home pay is around £1,800. As a working member of the population, you will start to contribute to the wider economy via taxes and national insurance.

In addition, your company will likely have a pension plan which is deducted before you receive your  take home pay. Also, if you have student loans, these will be deducted as well. For 2019/2020, the personal allowance - which is the amount of money on which you do not pay taxes on is £12,500.

So what is likely to be your take home pay?
  • £2416.67 Gross pay
  • £72.50 Pension
  • £260.50 Tax
  • £203.68 National Insurance
  • £75.49 Student Loan

Your TAKE HOME PAY (salary after tax) is £1804.50

Next, we deduct your expenses?
  • £700 Rent
  • £100 Council Tax
  • £20 Phone
  • £25 Internet
  • £30 ​Electricity & Gas
  • £20 Water
  • £400 Food & socialising
  • £140 ​Transportation

Your TOTAL EXPENSES: £1435

What is LEFTOVER: (£1804.50 - £1435)  = £369.5
Most people do not get rich by winning the lottery or via inheritance. For many, they just saved in assets that grow over a long period of time. 
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What steps can I take to build a brilliant future

As a student, it is from the £369.5 that you can start to save and invest. The expenses example above is just an example of what you can have to build a great financial future. This amount is much higher than what I began with and I focused on investing in things that grow.

Step 1: Choose how much to save and where
Here is how you could save or invest £369.5.

£60 Emergency Fund (Cash Savings)
£30 Oops account 
(Cash Savings)
£75 Travel & Fun account
£150 Stocks & Shares
£25 LISA
£25 Bond Account (5 years)
TOTAL SAVINGS & INVESTMENTS: £365

To maximise your savings, continue to invest each month (automate this process) and keep tracking your performance.


Most people do not get rich by winning the lottery or via inheritance. For many, they just saved in assets that grow over a long period of time.  ​In my experience, I have found my pension to be one of the fastest way to grow my overall net worth this is because if I put in 5% of my salary, my company matches it by 5% so I get 100% increase each month on my pension savings. 

Step 2: Step up a budget 
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Entering your savings and expenses into the WealthSquats tracker, you can see that your expenses make up around 80% of your income and you are only able to save around 20%. Now you can take steps to creatively think about how to increase your savings. In my case, I moved to a cheaper room to reduce my rent after reading that rent should take no more than 30% of my income. Thereafter, I significantly reduced my eating out and put every extra savings into cash savings or the stock market. Today, I still continue to find ways to optimise.

There is a rule of thumb that says, wealth creators save 30% of their income and spend 70% on expenses. This rule is a rough guide but can help wealth builders like yourself to control your outgoings. 

I do not believe in budgeting and suffering, we should still live a good life no matter what income we have so it is crucial that you add 'enjoyment' into your budget so you do not restrict your self from doing what you like. Every month, I make sure that I save or invest my target amounts and once I've done that, I am free to spend whatever is left as I please!

Step 3: Control your Debts
Debt is another expense that can significantly reduce your ability to create wealth. I suggest you read this post on how to spot good and bad debt behaviours. 

To summarise, save and invest in things that grow
Wealth building is fundamentally about saving and investing in things that grow. With this in mind, use the tips below to build that brilliant future.
  • ​Maximise your company pension plan - match to the max
  • Open a Lifetime ISA (LISA) and benefit from the 25% annual free increase
  • Use robo advisors to invest into the stock market
  • Start to build your emergency fund
  • Set up your Oops account (Tip. use saving pots from Monzo or Vaults by Revolut)
  • Control your debts
  • Control your expenses
  • Track your progress and net worth

Once you've got the hang of this, your money goals will evolve and you'll already have the wealth building basics.

 What to consider when deciding on your first salary

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Self employed
  • How much can I charge for my services within my sector
  • How will I manage tax and legal rules?
  • How much do I need to set aside for taxes
  • What will be my pension strategy
  • What is my plan to charge more for the value of my services 
  • Who are my customers
  • How will I market my self
  • Will I have employees?

Company Employed
  • Download or use the salary calculator to check:  Can this salary cover my expenses and still allow me to save a little?
  • What is my probationary period
  • Can I enter the pension scheme from Day 1 or only after my probation?
  • What is the maximum pension matching available?
  • Will I get a bonus and what is it dependent on (my performance, company performance or both)?
  • What is the career path in this role
  • Can I get FREE training and courses to upgrade my skills?​
  • What is the team like?
So what choice will you make?

​Remember to share these tips with your friends and start taking active steps to build a wonderful financial future.
​
Get in touch if you have more questions.
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Research says this is how to be rich in the UK (2020)

8/23/2020

 
Why do the rich pay less for housing month on month? How do they make their money grow? How many of them can survive one month without a pay-check? I read the 2020 report from Resolution Foundation on wealth in the UK to see what research says about how to be rich in the UK. Keep reading to see the surprising answers.

First, a quick recap: What is Wealth?
Wealth is your assets (An asset: is a thing of value that grows e.g. savings, pension, real estate, art, gold etc.) minus your debt. We also call this your net-worth. In this study, 4 types of wealth were measured:
  1. Property: residential and non-residential property and land
  2. Financial: includes ISAs, bonds, stocks and shares.
  3. Physical: such as consumer durables like cars or appliance
  4. Private Pension: money in your pension pot

So, how do the rich manage their money?

The top 10% have about 50% of UK's wealth

The average net worth of the 10% is £800,000. But, where do they grow their money? Keep reading to find out.

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Do it like the Rich:
Track your net worth. Click here to get started.

When it comes to financial assets, the Rich hold less cash and more of their money in growth assets like savings bonds, ISAs, and Stocks and Shares. 

Poor households hold most of their money in cash or current accounts where there is very little growth.

When the rich hold money in savings bonds, ISAs, and Stocks and Shares, they benefit from:
  • Compounding and High Interest rates
  • Stock prices going up: the value of cash doesn't go up. Inflation does and so you'll need more money to get the same amount of the things you buy
  • Reinvested Dividends from holding stocks or funds
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  • Risky Assets: stocks and shares of companies
  • Safe Assets: ISAs and Savings bond
  • Savings Assets: non ISA Savings accounts
  • Zero- return Assets: money held in cash. under your pillow, in the piggy bank on the shelf or current accounts 
Do it like the Rich:
Hold most of your money in places where it grows. Choose ISAs, High interest savings accounts and the stock market over cash. Hold cash for a specific purpose  e.g. to build your Emergency fund or for a  home deposit.
The Rich have about 45% of their money in pension pots, 35% in property and 20% in financial assets (savings bonds, ISAs, and Stocks and Shares)

Financial wealth (in high growth assets) increased substantially in the last 10 years and this contributed significantly (80%)  to the overall wealth of the rich.

As mentioned above, the financial assets of the rich are held in growing assets like bonds and the stock market. The Stock Market grew substantially in the past 10 years and it made the rich richer.

​The poor held most of their money in zero growth assets e.g. cash or current accounts and even when they added more money in these places, it grew at a much lower rate.
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Do it like the rich:
Write the numbers down, how much of your money is held in: 
Cash
Current accounts
Savings bonds
ISAs
Stocks and Shares
Richer families tend to be homeowners 

Their housing costs are around 5% of their income if they own their home outright or 11% of their income if they have a mortgage

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Do it like the Rich:
Reduce your housing cost. Limit it to a maximum of 33% of your income so you can find money to save and invest
The Rich have emergency funds 

7% of the rich would have a hard time if their main source of income is impacted as opposed to 44% of the poor.

An emergency fund allows the rich to stay afloat if a shock like a pandemic or job loss takes place. Young females who are not degree educated were the most at risk if their income ran out.
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Do it like the Rich:
Build an Emergency Fund of at least 3 months.
There you have it. Some insights into the habits of the rich. Of course there are other ways to get rich, such as owning a successful business, investing in start ups, inheriting money or owning art for example. The options above are the accessible ways to start to build wealth which is also the reality for many people. See this infographic on how to spend £2000 which highlights the step by step guide to implementing the lessons above.
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Which Rich habit will you start to use?
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Doing this has made me exceed a money goal by 4000%

8/23/2020

 
What do you want to be when you grow up? What is your 5 year plan? What are your career goals? What are your relationship goals? We've all heard this at one point in time and I wonder, why do we not also ask: WHAT ARE YOUR MONEY GOALS?

if you are the kind of person that writes your life goals, does it include money goals? Research has shown that writing your goals down can make you reach them faster. Keep reading to find out how you can incorporate this money habit for success.

What you need to know
  • See the money goals 5 readers want to achieve
  • Writing money goals make you save and invest faster
  • You can choose a amount or a lifestyle
  • 4 ways to make it stick

I asked 5 readers to share their money goals:

I asked 2 questions:
​1. What makes you want to save and invest 
2. What DOES NOT make you want to save and invest

Click on the images below to see their responses.
The research and experience of writing money goals

Every year, I write my money goals down. So far, I have found that I met them before or after the deadline I had initially set. I believe that there is some magic to writing things down. Once you write it down, it is autosaved in your brain and then somehow, you start to focus consciously or unconsciously to  make it happen.

My experience aside, research has shown that setting goals makes you more confident, motivate and in control - no wonder employers use performance reviews to set and monitor targets- they know that if done well, it motivates employees and can also help their business grow. If you want to actually make it happen, start by writing them down. 'A study by Gail Mathews, found that you are 33% more likely to meet your goals if you write them down, share it with a friend and review it frequently'.
Want to meet a money goal? write it down.
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How to Write a Goal that you stick to (4 ways)

1. Choose an exciting goal
According to Business Insider, 'Instead of being afraid of your finances, focus on the goals that excite you'. Why? when you choose an exciting goal, you stay motivated to make it happen. Here are the types of goals you can write down:
Types of Goals
  1. Travel
  2. Comfortable living
  3. Comfortable retirement
  4. Homeowner
  5. Retire comfortably
  6. Create an education fund
  7. Wedding
  8. Financial Independence
  9. Increase savings  by 1%
  10. Reduce debt by 50 a month
  11. Save 500 this year
  12. Save 3 months in your emergency fund
  13. Increase my net worth by 200
  14. and more...​
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2. Break it down into small bits
Big goals can feel overwhelming and when it comes to money goals it is important to break it down. A Harvard study explains, 'When we’re judging the difficulty of a goal, the first thing our brains see is the size of the gap that separates the goal from the baseline. The bigger the gap, the more difficult the goal'

For example, if you are planning that trip to tour the East Africa and it would cost 2000. Saving 2000 might today can feel challenging. To make progress, you can break it down to save 100 a month and add more in months where you can. After 5 months, you'll have 500 saved and have covered 25% of the cost. With an exciting goal ahead of of you, you can celebrate the small progressive wins and that is key,
3. Make it Challenging
If the goals is too simple, you won't be satisfied. Research has shown that you achieve 'greater satisfaction from achieving goals that help you improve as opposed to maintaining the status quo'. So, If you  are dedicated to clearing your  3 credit card debts of 2000, 1000 and 300, you'll likely be more satisfied clearing the 300 than paying off the minimum for each month which would make you feel like you are not improving.

Going back to the readers response on 
 What DOES NOT make you want to save and invest? I noticed most of the response was about making sacrifices today so they can enjoy tomorrow. I think this is another crucial element of satisfaction, delaying gratification, allows the reward at the end to be more enjoyable.
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4. Track It
Truth session.  Years ago I began tracking one specific money goal. Since then, that number has increased by a whopping 4024% to be exact. How come? What you cannot track, you cannot measure. Remember the research I mentioned earlier, it said, if you share your goal with a friend on a monthly basis, to keep you accountable, it happens. My friends are my spreadsheet, MUTAZ, and you readers of this post. I review my spreadsheet monthly to check how I am doing. Tracking helps me to stay focused and also allows me to think of new ways to reach my goals faster. Grab a copy of the WealthSquats smart budgeter to write and track yours.
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Need help on where how to start tracking? Use Financial Success Map to make a plan.

In Summary

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This amount of Stocks will make you rich

7/20/2020

 
The sweet spot for many stock market investors is knowing where to put their money to make it grow consistently over time. When you are new to investing it can be difficult to know how put your hard earned cash to good use. This post explores 4 methods everyday investors can use to know how much stocks, bonds and commodities to hold.

Where you choose to put your money within the stock market can make a BIG difference to how your much and fast your money grows. Inspite of the risk, the stock market remains a viable option to increase your wealth, beat inflation and get better interest rates than what your bank. So, the question is how should you spend your money in the stock market?


Keep reading to find out:
  • How you can use your age to choose stocks
  • The traditional model of investing
  • The 4 seasons rule
  • The Dragon portfolio that stands after 90+ years

First, some quick definitions. 
Methods/strategies: can be a rule or way of doing things to achieve a goal. For example, a high risk strategy will be focused on growing money very fast and could choose to put investments in riskly companies. A low risk strategy is focused on protecting money from loss and an investor can choose bonds
Portfolio: think of it as a folder that holds, a certain amount of stocks, bonds and commodities (gold, oil, coffee, silver)
An asset: is a thing of value that grows e.g. pension, real estate, art, gold etc.
Inflation: the price of things you buy go up. So you'll need more money to get the same amount of the thing you buy or you get less of the thing you want with the same amount of money
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How much Stocks should you own forever?

1. 100 Age rule

Your Age minus 100 is how much you should put into stocks. The premise of this approach is that is the younger you are, the more risk you can take. So, if you are 25 years old, you should have 75% in stocks and 25% in bonds. As you get older, you will want to take less risk with your money so you will move towards having more bonds (which are seen as less risky and provide lower returns) and less stocks (relatively seen as more risky because share prices can go up and down frequently).

Some investors are taking this rule one step further and making it 110 or 120 minus age to take more risk. For women, who live longer on average, this could be an approach to make sure their investments last throughout their lifetime.

​As with every rule of thumb, this rule does not factor your individual circumstance or preferences.
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2. The Traditional 60/40 rule

This is the traditional method of investing. The idea is to have 60% in stocks and 40% in government or corporate bonds. This method allows you to take some risk but also allows you to get regular income when the economy goes down. As your stocks and bonds rise or fall in value, experts suggests to maintain this ratio at least once a year by selling and buying the respective bonds or stocks. 

This rule has performed well over the past decades but following the 2008 financial crisis experts are asking - how will it perform over the coming decades?
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3. The All Weather 

I came across this rule when reading Tony Robbins' Book Master the Money Game. Tony reached out to Ray Dalio of Bridgewater Associates to answer this question: how should investors spend their money in the stock market? 

One thing that stood out to me in the book is the notion risk.  Ray explained that an investor with the 60/40 portfolio above is exposed to 3 times more risk (the potential for significant loss of money) which comes from owning stocks as they are more risky. Bonds which have a 40% allocation, contribute about 5% risk to the overall portfolio.

In response to the reality of the size of these risks, Ray created the All Weather portfolio. He also identified 4 financial seasons that impact prices. These prices change depending on the growth or decline of  the economy and inflation (when the prices of things you buy  go up). The All weather portfolio allocates an equal amount of risk (25%) to these four seasons.  Investors can create the All Weather Portfolio using the strategy shown below.
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4. The Dragon Portfolio 

I learnt of this rule while watching this video on how to build a portfolio that is strong enough to withstand a recession. Artemis Capital Management carried out research over the past 90+ years to find out which strategy made the most money for investors. They concluded that investors should "Find assets that can perform when stocks and bonds collapse, and boldly own them regardless of short term performance". How can we do that?

Author Chris Cole, gives the following example:
Take assets (a thing of value that grows) X, Y and Z
  • X and Y - Grow in value when the economy is hot and booming. It also falls when the economy is in decline
  • Z - Falls or stays neutral when the economy is hot and grows when the economy is cold

According to the author Chris Cole, the optimal mix for an investor is roughly 20% of  X +  Z or  Y + Z. You can buy more of each asset when it becomes cheaper during an economic decline and grow your money long term. This strategy is summarised in The Dragon Portfolio. The author found that over 90 years, the Dragon Portfolio generated a 14.4% return with lower risk.
  • Examples of X - Stocks, Bonds (also called Fixed Income), Real Estate
  • Examples of Y - Physical Gold, commodity trend (monitoring the prices of raw goods like oil, natural gas, coffee, silver, mining, metals), Long Volatility (think of this like a long term insurance that pays off when crisis hits)
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What you basically need to know

  • Pick a portfolio of assets that grows your money in the long term when the economy is good or bad​/ hot or cold
  • Allocate your money according to risk and not only amount
  • Focus on generating high and stable returns with low risk
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Gold is a comodity type that protects against inflation, political risk, war and currency devaluation. If you want to invest in gold, learn more about Exchange Traded Commodities (ETC).

Commodities grow when there is extreme inflation and when stocks and bonds are lower. You can invest in a commodities ETF or invest in the companies that specialise in commodities.
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Stocks do well when the economy is booming and prices are high. Companies are able to make more money and this feeds into their stock price. This also increases real estate prices. Read more on how to invest in Stocks and Real Estate

Bonds do well when interest rates are low and their prices fall when interest rates are high. Bonds are also referred to as Fixed income assets. Read more on Bonds.

These 2 questions will guide your next steps?

:There you have it, I only profiled 4 strategies in this post but there are so many more like David Swensen who devised his own strategy to grow Yale's University endowment from $1.8 billion to $30 billion!

Following my research, I went to look under the hood of one of my pensions and  found that it was 100% in equities with no commodities or gold. I am now assessing what to do next.

Things you can do next:

1. How much stocks, bonds, commodities do you own? Check:
  • Your company Pension
  • Stocks & Shares ISA or LISA​​

2. Do you need to make any changes?
  • Rebalance your portfolio (sell or buy) to match the strategy that fits your needs
  • If you cannot find where how your money is allocated because it is managed by a provider, contact them to get more information
Share your views, Which rule do you find interesting?
  1. The Age Rule
  2. 60/40
  3. All Weather
  4. Dragon Portfolio ​
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Save this to Stop Working FOREVER

7/20/2020

 
Achieving financial independence is a major goal that many of us have. It is owning the chance to save enough money to maintain a desired lifestyle, stop working forever and doing what you please with your time. If you think you need millions saved to achieve this goal, I have found that this is not necessary the case. You can reach this goal much earlier than you might imagine.

​What you need
How much do you spend per month?
What lifestyle do you have today 
What lifestyle do you want when you retire
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Start achieving financial independence today

Let's start by making some assumptions

Let's take the following example:
  • My total expenses per month is 1250
  • My annual expense make up (1250 *12) = 15,000
  • Most of my savings are in stocks and bonds and the average annual return is 7%. 
  • On my savings, I estimate that taxes and inflation ( the price of things you buy go up) will cost me around 3% per year
  • Therefore, during my retirement (defined as when I want to stop working), I expect my savings to pay me 4% (7% minus 3%) each year to cover my expenses full. 
  • If I take out 4% yearly, then my savings will remain untouched as I'll continue to spend only the income generated via interest payments (for bonds) and income (from stocks)

This is the amount you need to save to ​stop working

Taking the figures above, your financial independence number is (15,000 * 20) = 300,000

So you need to save 300,000 which pays 4% per year (after taxes and inflation). 4% is 15,000 which means your expenses are fully covered. If you want to cover accommodate other expenses or luxuries like travel, you can multiply the annual expense by 25.

I've seen other articles that suggest multiplying your annual expense with a figure between 20 to 30. Multiplying by 20 means you expect your savings to pay you 5% annually, if you multiply by 25, you assume a 4% return.

​It is important to note that returns will vary with changes in the economy. When the economy is up, you can expect higher return and pay yourself more. With a bad economy, you reduce your spending.  You'll also notice that the rule assumes you are invested mostly in the stock market, read more about this here.

How many years are you away from retirement? 6 years?
You can also use this calculator to find out.
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My financial independence number is too high - what can I do?
Before completing this post, I calculated the financial independence number for a friend. This was the first time she'd ever calculated this figure. Once she saw this, she found her number to be achievable and started to think about how to reduce her expenses and particularly her debts to achieve freedom faster.

What can you do:
  • Use the wealthsquats smart budgeter to calculate your Financial Independence number (see below)
  • Reduce your expenses where you can
  • ​Pay off your debts to release more funds for savings
  • Choose a smaller return (3% instead of maybe 4% or 5%). Make sure this amount covers your expenses so you still have peace of mind
  • Increase your income
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Calculator: How long will it take you to retire? Find out here

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So  go ahead, calculate your figure and Memorise this number
Watch the Video below to learn about the FIRE movement. 
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Want a chance to win £1 million? gamble without losing - Let’s talk premium bonds

6/20/2020

 
Premium bonds is a savings product backed by the U.K. government that allows you to save and enter the chance to win prizes with up to £1 million instead of earning interest.
 What you need to know
  • Start investing at £25 per month
  • Your money is 100% secure
  • Each month you enter into a raffle to win prizes worth £25 to 1 million tax free
  • You will not earn any interest (prizes are used instead). It might be better to use an savings account with interest rates 
  • You can always withdraw you money
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I recently found out about premium bonds whilst reading a money diary entry on Refinery29.co.uk. The diary entry said she put away £50k in premium bonds- this piqued my interest and I quickly visited NS&I to learn more.

How do Premium bonds work?
Premium bonds allows you to save monthly, it’s fully secure which means the risk of losing your money is very very low. Instead of paying monthly or annual interest to participants the equivalent interest amount is shared as prizes. 

Each month a prize draw takes places and you can find out if you win. The odds are 24500 to 1- not a very high chance but the more you save, you more chances you get. In addition, whatever you win is tax free and your money can with withdrawn at anytime.
Can premium bonds grow my money?
If you are the person that has  always wanted to gamble without the risk- this might be for you. 

Pros
  • You can withdraw your money anytime
  • With luck, you can win a few prizes. The minimum you win is £25
Cons
  • Your money never grows and falls behind inflation 


How to register for Premium bonds 
  1. Go to NS&I to open a Premium Bonds account( you can make a lump sum payment of a monthly payment)
  2. (Optional) Set up a direct debit 
  3. Download the app to track progress 
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How I plan to use Premium Bonds
Having assessed the pros and cons, I’ve decided to allocate a minimum of £25 a month into this savings product. This is a very, very low risk strategy and since I won’t be losing my principal (the money I put in monthly) I am happy to let it it be my - I hope I get LAS VEGAS lucky magic growth pot’.
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Digital Money Management

6/14/2020

 
Apps and Websites to help you manage your money with ease.
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Creating a Simple Budget
  • WealthSquats SmartBudget
  • Spendee

Calculate your Net Worth
  • Moneyhub
  • WealthSquats SmartBudget

Creating Money Pots​
  • Revolut​
  • Monzo

Real Estate crowdfunding platforms (Virtual home ownership)
  • Property Partner
  • The House Crowd
  • Property Moose

Private Equity Platforms
  • Seedrs
  • Crowdcube

Brokerage platforms (For Stock, Shares, Funds)
  • IG Share Dealing
  • Hargreaves Lansdown
  • Freetrade
  • Interactive Investor Share & Fund Account
  • Degiro Share Dealing
  • Vanguard Investor
  • Revolut​
  • Interactive Brokers 

Robo Investing Platforms
  • IG Smart Portfolios 
  • evestor
  • Nutmeg 
  • Scalable Capital 
  • MoneyFarm  
  • MoneyBox
  • Moola 
  • Wealthify 
  • EQ Investors 
  • UBS SmartWealth 
  • Investec Click & Invest 
  • Netwealth 
  • ETFmatic 
  • Munnypot 
  • Wealth Horizon​
  • Oval

Peer to Peer lending providers
  • Assetz Capital 
  • Crowd2fund 
  • Capital Rise 
  • Crowdstacker 
  • Funding Circle 
  • Landbay
  • LendingCrowd 
  • LendingWorks 
  • Octopus Choice 
  • Property Crowd
  • Ratesetter 
  • Zopa ​

Shopping for savings accounts, credit cards, mortgage, utility provider
  • Money Supermarket
  • Compare the market

Growing your Income
  • Fiverr
  • Task Rabbit
  • Upwork
  • Etsy
  • Shopify
  • Youtube
  • Instagram

Check UK State Pension Records
  • UK State Pension

Cashback App
  • TopCashback
  • Quidco
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I found the Financial Success Map I wish I had 5 years ago

5/10/2020

 
With COVID-19 restrictions easing up in the UK and around the world, many of us are left asking - what's next for me, my career, my health and my finances. Some of us are unsure, confused and looking for clear answers.

In my previous post, I wrote candidly about how this pandemic has made me re-think and replan for the future. Since then, I have spent the last weeks trying to define the milestones of financial success. Specifically, what could it feel like or look like?
​

I tapped into research and my personal experience and I have designed an interactive financial success map​ lets me assess how I am doing with my money goals. 
  • Where are you on the Map - click on the boxes below.
  • Plan where would you like to be at the end of 2020? 2021? 2025
create your financial success map

I asked 5 readers to share their financial success Map...

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COVID-19 has reminded me that my health and finances are VERY important

4/19/2020

 

Over the past weeks, two things continue to dominate the news: health and the economy. This pandemic has highlighted how important and fragile these two aspects of our lives are.

I am now left asking two questions:
1. What can I do to better invest in my health?
2. What can I do to create a financial safety-net for myself and for others?

In this blog, I look forward and explore ways we can invest in our health with the same vigour as we do our finances. 

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Because we feel good, we can easily neglect to check on our health
Apart from the regular advice to eat better and exercise, one thing we can do moving forward is to get an annual health check. In my view this is particularly important if you have a pre-existing condition, a family history of an illness or are past the age of say 35+. Many of us may think that we need private healthcare to get this but this is not the case. Last year, I used Wowcher to get a £120 health check for a family member with a pre-existing condition to make sure everything was fine. The report was detailed and highlighted some known and unknown problems in a clear PDF. This provided some peace of mind for the whole family. The NHS also provides health checks, although you have to be 40+ to qualify. Also factor in health checks for specific areas (breast checks, kidney checks etc), depending on your medical history. 

Apart from our financial investment, we should have a health saving pot that is allocated to getting needed health care. We are not only responsible for ourselves but also our friends and family and it is important that we remind and help others to invest in their health as well.

In the UK, we are lucky that we can get free health services. On a couple of occasions I forgot, or dismissed the need to complete my General Practitioner (GP) checks or vaccines - not a good idea. I got a chance to get a health check via work and the GP told me that we all should contact our GP if something does not feel right. The earlier the better.

The NHS does not cover everything however, special services like dentistry, dermatology, physical therapy can all incur supplemental charges. Again a money pot can really save you here. This is especially true if you have children who may specifically require services like braces, paediatric assessments etc. If you want services beyond the NHS, you can shop around to get the best health insurance for yourself where you can pay a monthly fee to get covered. Look at what health services are covered before you make a decision. Many people think they need a job that offers private insurance, but self pay can be as low as £15, and may actually turn out cheaper than paying out of pocket per visit.

One more thing, if you have a family and a serious pre-existing conditions/family history of health problems, consider getting life insurance to protect your loved ones.

5 ways you can invest in your health:
  1. Open a health savings pot
  2. Get annual check ups
  3. Talk to your GP about what health services you should get
  4. Plan for health services for children
  5. Get private health or life insurance (if you need it, if your employer offers this as a perk, see what services are covered
As part of our financial investment, we should have a health saving pot that is allocated to getting a health check.
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Health is Wealth

6 ways to create financial safety nets to weather unprecedented storms

Last year I explored the definition and steps that lead to financial vulnerability - last week, I read an article that sums up how this happens ' first gradually and then suddenly'.  In the news today, we see many stories of people who have been forced to lose their jobs particularly those in the gig economy and retail industries. This has been particularly difficult for women, many of who are employed in these sectors.  For the lucky ones who qualify for the government support, they can still earn up to 80% of their income. But even still, a 20% pay cut can leave people in very tough conditions.

Nonetheless, without this government support, I shudder to think of how life can be.  Here are a few things I think we can do:

1. It is very important to Build and Sustain an emergency fund. 
A emergency fund is a saving account where you save enough to cover your expenses for a period of time if you are unable to work. Everyone should have an emergency fund. Start with saving 1 month worth of expenses then aim for at least 3 months, then 6 months. An emergency fund allows you to build the foundation to have something to tap into when things get really tough. If you are able to take this one step further, build a curve ball account to cover the day-to-day expenses that WILL arise.

2. Consider insurance to cover income loss in the event you get  ill or lose your job.
This way, if your income stops, you can get covered for up to 24 months until you are able to get back on your feet. Like other forms of insurance, you pay a monthly amount and if anything goes wrong, you get an income paid to you no matter what.

3. Consider getting mortgage insurance to reduce the risk of losing your home
If you own a home, your mortgage is likely to be your largest monthly expense. In the event that your are unable to keep up with your payments, a mortgage insurance makes sure that you are covered. 


4. Have a pension pot
I cannot imagine how retirees with low or no pension are supporting themselves in this pandemic. We can be short sighted in these times and forget that we will live a long life. When we  retire, our pension pot will become the core income source to weather storms like these. Making sure you are building a sizeable pension pot for when you are older is a constant goal for us all.

5. Invest in the stock market

You are not going out, eating out or going on vacation. With the world on lockdown, the stock market is feeling the effects making some stocks/share and funds are cheaper. If you’ve got spare change, this is a great time to get stocks cheap. With interest rates getting lower (I saw one lender providing a 0.05% on savings), the stock market is one place where you can get a good return in the long run.

6. Negotiate the interest payments on your debts
We know that there are good and bad ways to handle debts. If you are paying high interest on your debts, this might be a good opportunity to negotiate low rates with your provider. I have seen many articles of companies announcing support to their customers in this unprecedented time. Reach out and see what they can do to make you life easier for the long term.
All in all, I hope we can do our very best to give ourselves and our loved ones the strongest chance of living a healthy life. Remember health is wealth!

What other things are you doing to invest in your health and finances?
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You don't want to miss this GAME CHANGING way to save for expected expenses

3/14/2020

 
Companies like Revolut and Monzo have these two neat features that have made it easy for me to set up my curve ball savings account. Using one account, I am now able to split my expected expenses (such as travel, phone replacement, transport, beauty service)  into different pots. PLUS I get interest payments.
 Read more about  why you must have a curve ball account
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Curveball accounts help you manage the WHEN and IF it comes!
The problems I was having
Up till now, I used one savings account to save for curveball expenses. This account did not let me split my expenses and so I set up my automatic savings to hold it all in one go. if I wanted to split expenses into a savings account, I would need multiple savings accounts to track each of my curveballs. 

For me this was too much overhead. I don’t want too many savings account to track and maintain.
​​
Saving pots with Monzo and Vaults with Revolut 
My new curveball best friends are these saving pots and vault features from monzo and revolut.
​
Why I like them
  1. I already have an existing account with these companies and so I do not need another account number
  2. I can open as many pots as I want (I opened 6)
  3. I earn interest on my savings
  4. I can set savings goals
  5. It’s all neatly tracked on the app
  6. I can set up recurring payments and top up as I wish

6 benefits! I am abuzz. At this time, I decided to go with Monzo saving pots because Revoluts saving vaults is only available to members with a Metal card which is available at £12.99 a month. At the time of wring this article, the Revolut interest rate is  higher than Monzo'.

If you have a Revolut Metal Card, watch the video below to see how to set up your Vault 

How I have set mine up 
  1. I decided how much I want to allocate to curveballs from my income. Watch how to budget
  2. I set up savings pot on the Monzo app with a recurring date for monthly payment 
  3. I set up a standing order from my bank account to Monzo (Note if Monzo is your current account, this step does not apply)

Now I can track all my curveballs in one place and this has significantly made it easy for me to be on top of things. If I want to save for another thing maybe a trip next year, I can set up the a new travel pot and start saving so it does have to be a worry.

Watch the vido below to Learn more about Monzo

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Want to know what lenders and employers think of your financial situation? Download these 2 Apps!

2/6/2020

 
We all know what we think of ourselves. But how does the financial world view you? Knowing my credit score was and remains a crucial part of my financial education. I recently downloaded two super easy Apps - ClearScore by Equifax and Experian. These Apps have made it much simpler for me to track my credit score and to see how lenders view me.
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How does the world view you?

A bank sees you as a number. This number can change EVERYTHING
We all know what we think of ourselves. But how does the financial world view you? Imagine you are a large bank with millions of customers. If one customer comes to you to request a new credit card, mortgage or overdraft, how can you tell at a glance that this customer will pay  you back, will not run away and is legitimate?

The fastest way a bank can do this is by converting you into a number. This number is called a credit score.

I use the bank as an example here but Lenders include: Utility companies (like gas, water and electricity providers), Employers, mobile phone companies, landlords who use this number to get a snapshot of you before they enter into a contract with you.

How does a credit score work?
Equifax and Experian are one of the largest credit rating agencies. Essentially, business like banks, phone providers (like EE, Vodafone) and the government provide them with data about you that they use to calculate your creditworthiness.

Creditworthiness simply asks the question, how likely are you to pay back a loan?
So Equifax or Experian can look at your bank account, how you spend your credit card, check if you have  registered to vote among other things to create a score for you. 

So when you go to the bank to ask for a credit card, the bank contacts these agencies to see what information they have about you. This can be a soft check (partial review of your credit history with no impact to your credit score) or hard check (full review and can impact your credit score). Typically, it is not a good sign if you have multiple hard checks on your record- especially if you are denied. Lenders see this behaviour as evidence that you are not fit.

Once the bank gets your score, they can choose what interest rate to give you. Generally, the better your score or number, the higher the likelihood that you'll get a good deal.

Why I downloaded ClearScore and Experian
It was important for me to know what these two agencies think of me from a financial point of view. I also wanted to know what information they have about my spending habits and my credit history. Different lenders will use Equifax or Experian to consider any loan or product applications. For you to have a credit history, typically, you'll need to take out credit - a type of loan, such as a credit card or a mortgage. However, these days some lenders can provide products to customers without a credit history.

Equifax and Experian look at exactly the same information but calculate their  scores in different forms. If you wish, you can choose to pay monthly to get detailed information on what they check to create your score. I chose the free option as it gave me all the information I needed.


How to Download these Apps 
Visit GooglePlay or the Appstore
Search for ClearScore or Experian
​Hit Download or Install

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A view of Clearscore by Equifax on your App
A simple rule of thumb is the lower the credit score, the less likely you are going to get a loan or the higher your interest payments.

How I am finding the Apps
These apps are easy to download and free to use. Every month they check my spending and refresh my credit score. Last month, Experian picked up that I am on the electoral register and my score increased by 22 points!

For newbies, the app also provides a list of dos and donts to boost your score. You can also check your details on the app if you need it corrected and you can also check your score as often as you want. 

Why should you check your credit score? Here are a few reasons:
- Know what lenders think of you so there are no surprises
- Find out ways to boost your score
- It helps you to be disciplined with debt
- It is super easy to do

Read more The truths I am learning about controlling debts

Be mindful of how often lender makes search - ask for a soft check until you are ready to make a real application.

Click here to learn more.

What if you downloaded the App and have no records
If you downloaded these Apps and there are no records to show for yourself, see the suggestions from Experian that can help you build a credit history. 

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A view of Experian on your App
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12+ guilt free ways I cut my spending to save more

1/19/2020

 
If you are looking for super smart ways to pay less for things you need, this post is for you. I have and continue to look out for easy ways to reduce my spending allowing me to save more guilt free.  Keep reading to see the tips I use to cheer up my finances!
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Cheer up your finances guilt free in 10 genius ways!
1. My credit card pays me for spending
If you have a credit card, get or swap to credit card that provide cash back on expenses. I have cards that provide 0.5% on all spending and if I pay with contactless,  I get 1% . So for every £100 I spend, I get back up to £1. Sometimes, the bank has deals with retailers who provide more than 1% cash back. This may sound like a small amount but it does add up. Since getting my credit card 2 years ago, I've gotten back around £500. Remember to read terms and conditions and to payback your credit card in full.

2. S
witch providers and get cash back
Many companies want you as a customer and will pay you to get your attention. Look out for ads from utilities companies, banks etc. who will pay you if you for instance to switch from BT to EE as your telephone provider or from British Gas to Utility point for your electricity and energy. Before doing this, check how long you have to stick with the company and use this approach to get the cheapest prices for your needs. I negotiated and have cut my monthly broadband bill by 10% for 12 months. Go further and use Cashback Apps to save even more.

3. Use companies like Quidco and Top cash back to get paid while spending
Companies like Quidco aggregate all cash backs provided by companies. Last year, I was looking for a new internet provider and a friend introduced me to Quidco. I signed up in 5 minutes and  I was able to get £65 cash for choosing my internet provider. Even better, once my transaction had been confirmed I was able to send my Quidco cash back directly to my bank account.  I always check Quidco to see if they list a retailer when I want to go shopping so I can get a cash back from Quidco and via points via my credit card (see number 1).
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Some retailers that offer cash backs via Quidco
4. Split costs with people
Anything divided by more than one is cheaper! If you use 
Netflix, Spotify, ASOS (premier delivery for £9.95 a year) split the costs with friends or family. Where possible get one account and share the costs and services. If you want to travel to exotic places, split costs like hotel, transport and more. To keep track of each person's share use apps like Splitwise where you can record all costs, include your friends and track your spending.

5. Use websites like Groupon/Wowcher/Amazon to get cheap bulk products
Since time is money, I've stopped going through the hassle of getting toilet rolls from physical stores. Plus it all get delivered to my door saving me time. I go through Quidco for all my Groupon purchases (see number 3). The same applies to Amazon, I get my long-life milk for 25p less in bulk delivered to my door. No more do I need to carry 5, 1litre liquids for the sake of enjoying my cereal.
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Bulk products advertised on Groupon

6. Travel the world and pay only £99 for flight & hotel
If you have dreams of travelling the world. It does not have to cost a fortune. A friend introduced me to Wowcher's  Mystery  £99 all inclusive holidays with flight and accommodation for over 2-3 nights covered. It works like this, you buy the Wowcher voucher and then an agent calls you to tell you which country you have been allocated (if you do not like it, you can change the dates and location with the agent). If you do not like the hotel provided in the package, you can pay a supplement to upgrade. I visited Budapest and Porto, Portugal using this method. This allowed me to meet my goal of visiting at least 2 new countries per year.

If this is not your cup of tea, in general you can always save money by booking up to 6-9 months in advance so you have something to look forward to. Also if you want a local tour in these locations, look up free walking tours to find a local guide. At the end you pay what you like - if you want.

Bonus tip: Get Air miles or AVOIS points when you travel and spend them on 'free' or cheaper hotels, flights or entertainment.
PictureTravelling does not need to be expensive. You can do it.










7. Make a Packed lunch​ for work or class
On Sundays I spend 1 hour to create my lunch for the week. I can be as simple or as elaborate as I want. This way I save up to £10 a day which amounts to £200 a month on food. If I want to treat myself I have zero guilt doing so. If you want some quick 'meal prep' ideas- check youtube for easy meals to make.

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Meal prep to save!
8. Need Free Entertainment- Yoga, Comedy, Arts?
There are so many free things to do in this world. I have gotten autographed books, visited the House of Commons, took Shorinji Kempo (Martial arts) classes, attended really good comedy events without paying a dime. I use websites like eventbrite to find free classes for yoga, arts, dance and more.

9. Scroll through Gumtree for big items (2nd hand shopping)
Since furniture does not appreciate in value. I used gumtree to get great deals on furniture. For instance, I got a really great sofa for £350 (retail was £1200) and it was used for only 2 years. I also got my armchair for £50 with free delivery! Using gumtree saved me hundreds of pounds. If you find something you like, go with a friend to see the product before you buy. Also remember to haggle to reduce the price on offer.

10. Use CEX to get cheap but durable Electronics
I don't buy new phones anymore. Why? again, they don't grow in value and in my case, Apple will be replacing them every 3 years anyway. So to significantly reduce the cost of paying for a new device, I get phones and other electronics from stores like CEX that also provide 24 months guarantee. CEX sells games, TVs, earphones, cameras etc. They also always have the latest phones as a discount and describe the condition of the product if it is in good or mint condition.
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Price of iPhones on CEX
11. Sign up for warranty on all appliances
I learnt a tough lesson with this tip. I bought a kettle last year and it started to have loose parts this year. I wanted to get it fixed and found that I forgot to sign up for the 3 year warranty which would have entitled me to a free fix or a new kettle. When buying appliances, make sure it has a warranty and most importantly activate the warranty.
12. Get a homecare plan to reduce out of pocket costs for plumbing, heating, white goods damage and more
If you want to reduce the headache of paying the sometimes large sum of fixing a broken boiler or getting a plumber to come around, consider a homecare plan. These plans are monthly payments you make such that if you need to fix these type of issues, the provider will cover the repair costs. I have seen as little ar £2.81 for oven, fridge/freezer, coooker hood and hob cover. Read ther terms before your apply.
13. Switch ON the ROUND UP feature on your app. Monzo and other money Apps have this option and I am using it to make little progress towards my goals.
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14. If you don't need it, Cancel it review your subscriptions and direct debits to services that no longer serve you.

15. Save load by paying annually: I saved 25% on my white goods insurance by choosing to pay a one off annual fee instead of making monthly payments. If this option is not presented to you, just ask.
In summary, find ways pay less or  get paid for spending!
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I was a little confused on what stocks and bonds to invest in and this book by Jack Bogle really helped

11/6/2019

 
I read the little book of Common Sense Investing by Jack Bogle and it answered these 3 questions for me.
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1. What should I invest in?
Low cost stock and bond index funds that capture the entire market. 

2. How much stocks and bonds should I have?
A range and mix of 25% - 75% that you modify according to your age. If you have more time to invest, you can afford to take more risks.

3. How can I improve my returns? 
  • Keep costs extremely low (low cost index funds do this better than managed funds)
  • Use tax efficient wrappers like ISAs for your stocks, bonds and funds
  • Hold your investment for the long term and don’t trade often 
  • Have a good asset allocation​ (see no.2)​
Remember to read for yourself to decide the best decisions for your financial future. Get more from WealthSquats on Stocks, funds and bonds.

Want more books? Click here.
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