Perhaps you absolutely smashed it out of the park when it came to your finances…I hope so! But the start of this New Year is the perfect time to ask: are there lessons we can learn to help us absolutely OWN our finances in the next decade? There sure are!

Spending has got a LOT easier.

The teenies was the decade that we started using debit cards – and specifically contactless debit cards – for EVERYTHING. Just tap and go, baby. Unfortunately, that has made us all far more likely to spend more, bust our budget and go into debt. When money becomes totally virtual, it’s tricky to get a handle on its REAL value.  So, as we go into a new decade, make sure you’ve got a grip on your spending. If you use contactless cards, at least make sure you also have an app that allows you to see your spending in real time, and categorise it so you know exactly where all the money is going. And maybe, just maybe, take some cash out once in a while to keep the spending in check. Just a thought! 

…and so has borrowing!

At the beginning of the teenies, thousands of young people were taking out instant, so-called ‘payday’ loans with hardy any credit checks. That didn’t end well, with dozens of lenders going bust and lots of borrowers getting into huge debt.

Towards the end of the decade, we started seeing a new debt danger: the rise of buy-now, pay later schemes like Klarna. These allow you to buy something, see if you like it then send it back, with no money changing hands. But if you keep anything, the bill’s due in exactly 30 days, and late payment will hurt your credit score, and therefore your borrowing prospects, in the future.

So before you click on the cute pizza icon at the checkout, think. Would you still buy this if you had the money? Do you really want or need it? I say stick to buying what you can afford right here, right now.

An overdraft is the quick fix, and from May an unarranged trip into the red will probably be cheaper, because the banks have been told to slash their super-high interest rates.  But the sensible, much cheaper, ‘agreed overdraft’ that many of us rely on will actually get more expensive. So be warned!

….but so has saving!

The teenies was the decade that the smartphone took over the world – and our finances! Today, we have a huge range of banking apps, which typically have

a “round-up” savings feature.  These round up the amount you spent to the nearest pound and transfer the difference from your current account into a savings account. You may also be able to choose when to round up or transfer spare cash, such as on payday. These apps are a game-changer for those who find active saving too difficult and well worth checking out next year, if you haven’t already. 

If you want to take things to the next level, you can now link your account to a chatbot like Plum or Cleo. It will analyse your spending, help you budget, flag up spending weaknesses (mine are beauty products!) and decide how much you can save and when to do it.

Social media rules

At the beginning of the decade, it was all about Facebook and Twitter. But later Instagram, YouTube, Snapchat and TikTok took over, partly thanks to the rise of influencer culture. As a new decade arrives, it’s important to keep influencers and their commercial activities in perspective. Numerous studies have shown a link between excessive time spent on these apps and mental health problems.

We view people who appear to have a better life than we do, and this can subconsciously influence us to spend money we can’t afford. Always remember that social media tends to present the edited highlights of other peoples’ lives, not the messy reality. Keep it real and resolve to live more IRL: it’ll do your finances (and your peace of mind!) the world of good.

The post Money lessons learned in the teenies (2010s)! appeared first on Money For Life.

Indulging your hobby or passion by becoming part of a club will help you to meet other people who share your interests. Plenty of clubs are free to join, or offer cheap introductory fees – perhaps you’re:

• A sports fan?

Team sports, cycling or running clubs, and martial arts or athletic groups provide a brilliant way to make friends, as you’ll regularly meet up with the same people.

• A bookworm?

Reading is a solitary pursuit but starting a book club makes it a sociable activity. Starting out with just a few like-minded friends, all it takes is a little organisation, a packet of biscuits or two, and a few tea bags. To grow your group, encourage each member to extend an invitation to a friend from a different circle so that you can meet new people.

• A mover or a shaker?

Have a look at your local listings site and join a dance, yoga, or exercise class; these are often operated on a pay-as-you-go basis and needn’t cost a lot of money. Exercising releases endorphins and you’ll meet new people with common ground.

• A creative soul?

If you enjoy being creative then a weekly art, writing, or cookery class could enable you to devote more time to your hobby while also making friends who share your passion.

Tip 2: Search for free activities in your area

Google ‘free things to do in [your town or city]’, join your community’s Facebook page, or visit a local listings website for a calendar of events that are taking place in your area. Grab a friend and take a chance: although it might not be exactly what you’d normally choose, you’ll have fun and might discover a brand-new interest, for example:

• Battle of the Bands and smaller scale music concerts in public places
• Food festivals
• Cultural fiestas and celebrations
• Lectures and talks
• Exhibitions in museums and galleries

Live in or near London? Here’s a great article on things to do in London for free to provide you with some inspiration yet affordable entertainment in our vibrant capital.

If you live on the South Coast then here’s a handy list of free things you can do in Brighton.

Or, if you’re based further North then take a look at this long list of things you can do in Leeds for free. There’s also plenty of free activities in Manchester. No matter where you live there’s likely to be several places you can visit without having to spend a penny.

Tip 3: Boost your income with a sociable part-time job

Getting yourself some part-time work kills two birds with one stone, as they say. Not only will you be working with a whole crowd of potential new friends but you will also be earning money as you do so.

Fun part-time or temporary jobs include:

• PR and promotions for bars and clubs
• Bar or pub work
• Concert or festival stewarding/event crew work
• Resort holiday rep or ski season jobs

For more advice on getting yourself a ‘side hustle’, check out the Balance Careers’ article – ‘best second job ideas’.

Tip 4: Volunteer for a worthy cause

Helping out with a local charity or not-for-profit organisation benefits others and also means that you’ll meet new people. Plus, it will keep you busy and provide you with that all-important feel-good factor.

Giving back – whether helping out in a shop or shelter, lending your skills to a project, or mentoring someone who needs support – is humbling and will give you a new sense of perspective.

Tip 5: Get out more

Venturing out into the great outdoors is completely free, plus fresh air and vitamin D offer health benefits and an ideal way to reduce stress and lift your mood:

• Grab your bike and a friend and go for a cycle
• Don your trainers and go for a walk, hike or run with a mate
• Take your dog to the nearest park, woodland, beach or lake – there’s nothing like a dog to spark social interaction (if you don’t have a canine pal of your own then try a site like Borrow my Doggy)

Not feeling so active? Why not try:

• Going to restaurants or cafés with communal tables – far more sociable
• Reading a book or doing some work at a coffee shop – you never know who you might meet!
• Joining forces with a friend and packing up a picnic to enjoy in the park

When it comes to your social life – whether it’s admission fees or tickets, meals, and drinks, or travel and accommodation – costs can soon add up. Read this article, for more useful tips on how to avoid making purchases that you will regret. As well as this post on how to take back control of your money.

Hopefully, this article has provided you with some inspiration for sociable activities that won’t blow your budget, allowing you to strike the balance between friendly and frugal!

The post Top 5 wallet-friendly ways for socialising appeared first on Money For Life.

1. Start Budgeting – figure out your spending patterns by using a budgeting tool. This will help you separate your essential expenses from the non-essential ones. You will have little control over essential expenses like rent, food, electricity bills, and credit card repayments but it is possible to cut back on the non-essential expenses, such as luxury grocery items and entertainment expenses.
2. Avoid Using Your Credit Card – Unfortunately, in a crisis the easiest thing to do is to reach for a credit card to make ends meet. However, with high-interest rates and late fees, this can just create new and bigger problems. Instead, set aside a budget for your essentials each month and if you are desperate it is better to apply for a small personal loan from your bank.
3. Review Your Existing Debts – If you have an education loan or any other debts, you can look to consolidate all your debts at a lower repayment rate, and you’ll only have to worry about making one payment every month! You should always ensure that you pay the minimum amount on your debts so that your credit score is not affected.
4. Talk to your Creditors – if you know that you have an upcoming bill that will bounce, call the company and let them know. They will often be incredibly understanding and help set you up with a payment plan.
5. Look for a Part-Time Job – Until you get a full-time job, consider working part-time to manage your finances. You can look for traditional part-time jobs in stores or through apps and agencies or you could even try to get some freelancing work in an area that you have some expertise!
6. Assess your Tax and Benefits Situation – you may find that you are now eligible for tax deductions and credits or benefits that you were not previously able to access.
7. Ask For Help – this could be from family or friends, an agency or professionals. There is often a lot of support that exists if you look for it and ask for help.

Unemployment can be incredibly stressful financially, however by doing the above you can make the most of your money while you look for a new job and be back on your feet in no time!

The post Effective Ways to Manage Your Finances When Unemployed appeared first on Money For Life.

A deposit is normally a month’s rent. It’s meant to protect the landlord if you damage the place or don’t pay the rent. You are meant to leave the property in the same state you found it, allowing for ‘fair wear and tear’.

But if the place is clean, there’s no damage and all your bills are paid, you should get your money back after you leave.

Get cleaning

If you moved somewhere sparkling and trashed the place, wave goodbye to a wodge of cash. Instead, whack on the rubber gloves and get scrubbing. Check if the contract has sneaky conditions, like forking out for professional cleaners or cleaning the windows.

Check the inventory

Way back when you moved in, you should have been given an inventory. This lists all the fixtures, fittings and furniture, and should mention any marks and damage too. Before leaving, check if anything on the inventory is missing or broken. If you don’t find, mend or replace stuff, you may get charged.

In an ideal world, you snapped photos of the place on the day you moved in, and added notes about any damage before signing the inventory. Then you can show what was already there, and wasn’t your fault. Otherwise, it’s your word against the landlord’s.

At least you can take lots of photos now, to show how you left the place. Don’t forget pics of the gas, electricity and any water meters, to avoid arguments about how much you used.

Put it in writing

When you move out, write or email the landlord to ask for your deposit back. If you deal with a lettings agent, contact them instead. Hopefully the nice landlord will just give you all your money back. Happy days.

The post I’m moving out – but how do I make sure I get my deposit back appeared first on Money For Life.

So if you’re thinking about getting out there on your own but have no clue where to start, take a look at our guide to first time renting.

Show me the money – how much do I need to move out?

Start by looking at how much places cost to rent each month, and what you can afford. You’ll need to scrape together at least a month’s rent in advance, plus rent for another month as a deposit, before you move in. Start cutting back and putting a small amount away a month now – you’ll have enough before you know it!

You can get a budgeting loan to help you out if you’re on benefits. Just fill in this form and send it to your nearest Jobcentre. Money will be taken out of your benefits each month for two years to pay it back.

Any other costs?

Bills. Bills. Bills. You’ll need to factor in the boring stuff like Council tax and water. Don’t forget TV licence and broadband too. It normally work out cheaper if you opt for a house share – but make sure you suss out who you’re going to live with first!

If you use a lettings agent to find a pad, they’ll want money too – unless you’re renting in Scotland, where lettings fees are banned. Lettings agency fees are meant to be banned elsewhere too, but only from 2019. So expect to pay a few hundred pounds for other costs.

Will they let just anyone move in?

The chances are your landlord or letting agent will want to do a reference check before you move in. This is just to make sure you’re likely to pay them their rent.

You will need to dig out a bunch of paperwork to prove your identity and show you can afford the rent. This means stuff like photo ID from a passport or driving licence, bank statements, payslips or accounts, proof of benefits and any employment contract.

The landlord or agency may also ask for a reference from a previous landlord, to check if you will make a good tenant. This is tricky if you’ve never rented before. Ask if they will accept a reference from your parents, guardian or employer instead.

The post Moving out? Here’s everything you need to know about your first place appeared first on Money For Life.

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Download app:

Features:

• Create savings goals. Tell Pennies to Pounds what you’re saving for, how much you need to save and when you need it by.
• Track your progress. Add and remove money from your savings pot so you can see how far away you’re from that new pair of trainers, or something a bit bigger.
• Discover. Browse and favourite financial advice to help you save money quicker.
• Share your savings goals and tips with friends and family.
• Personalise your saving goals by uploading images to inspire yourself.

The post Our Pennies to Pounds App is back! Download for FREE now appeared first on Money For Life.

Ah, the heating question! It’s a timely one for sure, and I share your concerns. Everyone has different attitudes to keeping warm, but for some more than others the question of cost can be a big factor. The way forward is to establish some ground rules that keeps you both happy. So, rather than insisting that she doesn’t put the radiators on until there’s ice on the inside of the window, consider setting the heating on a timer in a way that’s within your budget. Often, just discussing the heating within the context of cost can make people aware that it isn’t simply free!

It really is a question of finding some middle ground – literally so you’re not freezing or sweltering – and then reviewing the situation regularly. Not only do the seasons change but also financial circumstances, so it’s important to keep talking.

You can also find some advice on saving money on your energy bills right here on Money For Life: http://www.moneyforlife.org.

The post My housemate’s using the heating too much, what should I do? appeared first on Money For Life.

Your energy company aren’t telling you this just to annoy you. Since many bills are estimated, sending monthly readings ensures you only pay for what you use. People who take regular readings typically use less energy than those who don’t.

If you want to get clever about it, consider buying an energy monitor. These cost around £25-30 and help you understand which appliances suck up the most energy.

Saving money on electricity

There are a few easy ways to cut down on your electric bill:

• Pay by direct debit as it’s usually cheaper and means you won’t miss a payment.
• If you don’t need a light on ‘even for a few minutes’ it’s cheaper to turn it off.
• Standby is your enemy. The average home spends £35 a year on electricity used when items like TVs are left on standby. Even leaving chargers plugged in constantly wastes money.
• One full load in your washing machine uses less energy than two half loads.
• Wash your clothes at 30°C unless something is REALLY dirty.
• Don’t boil more water than you need. If you only want one cup of tea then don’t fill up the whole kettle.
• Use energy saving bulbs as they last longer than ordinary bulbs and can save you around £55 over the lifetime of a normal bulb.
• Put a jumper on.

Saving money on heating

Here are a few easy ways to save money on your heating:

• Turning down your room or radiator thermostats by 1°C will save around 10% on your heating bill.
• Only put your heating on when you need it. Set your heating to come on 20 minutes before you need it and to go off 20 minutes before you don’t.
• If you have radiators and go away in winter set the heating to come on for 10 minutes twice a day to prevent pipes from bursting.
• A pair of well-lined curtains can keep in almost as much heat as double glazing at a fraction of the cost.

Switching energy supplier

Use a comparison site to compare the different energy deals available. When looking for a new deal make sure it is cheaper for you in the long run rather than just being beneficial now. Done right you could save up to £200 a year.

Switching energy supplier can save you hundreds of pounds on your energy bills and should take around 17 days. Your gas and electricity won’t be cut off at any point and the only change will be a new supplier sending you your bills.

If you can’t pay a bill

If you tell your energy company you’re struggling they will probably set up a payment plan that you can afford. If you’re really struggling, ask if they have a special scheme for those in need. This might involve having your bills capped regardless of the amount of energy you use (usually for those with certain medical conditions) or being given a one-off grant.

Long term investments

Spending some money now could save you lots on future bills:

• Draught–proofing is inexpensive and you can usually do it yourself. Products available include strips to go around doors, brushes for letter boxes, jackets for hot water tanks, foam for pipes and products which stop heat escaping up chimneys.
• Programmers give you control over your heating system. Some allow you to change your heating settings wherever you are using an app on your phone. Purchase and installation will cost from around £200.
• An annual boiler service will make sure it’s performing well. If you live in rented accommodation your landlord is obliged to have the boiler safety-checked once a year.

Grants and loans for insulation, double glazing and other measures

It might even be possible to get a grant or loan cover the cost of insulating your home, speak to your energy supplier for information or have a look at this Gov.uk advice.

The post Saving money on your energy bills appeared first on Money For Life.

Talk to someone you trust and ask for a loan to get you through the rough patch. Don’t feel scared or ashamed, rising rents and shrinking paycheques mean many people are struggling financially. It takes courage to speak up but it’s a vital step to resolving the problem.

If possible, avoid telling your landlord if it’s just a single month’s payment, you don’t want to give them the impression you’re having problems as this will add more stress.

I haven’t paid my rent for a while and I’m scared I’ll be evicted

If it looks like you’re facing a longer-term struggle to pay your rent, you have to consider all the options and you should definitely tell your landlord this time, as they may be able to set a payment plan to help you get through a tricky time.

It’s also really important you get advice from a housing adviser immediately. You can also get support from our helpline. There are special procedures any landlord has to follow before they can evict tenants – so keep all your paperwork and records to prove your case.

Don’t just ignore the problem – it will only get worse. Most likely, you’ll have to move to a cheaper area or larger house share to keep costs down. If you are already living very cheaply, you may need to apply for housing benefit.

What is housing benefit? 

Housing benefit is paid by councils to help people who are on benefits or a low income, pay their rent. Because of high rent costs, many people rely on housing benefit even though they are working.

There’s no set amount, what you get depends on whether you rent from a landlord, council or housing association, what your income is and the area you live in. In some areas housing benefit has been replaced by Universal Credit.

How does it work?

To claim housing benefit, apply to your local council, or do it at the same time as you claim any other benefits.

The council will look at the amount of rent and service charges you pay, or if you have other adults living with you. They should make a decision within 14 days but it can take longer. You may be able to get a ‘payment on account’ to tide you over.

How do I claim if I’m renting privately?

If you pay rent to a private landlord, your housing benefit is called local housing allowance (LHA).

If you’re privately renting, are under 35, single and don’t have children, you’re only allowed to claim the cost of renting a room in a shared house, not your own flat or house. This rule applies even if you can’t find shared accommodation – but there are exceptions, for example, if you’re severely disabled.

The so-called ‘bedroom tax’ means you’re only allowed a certain number of bedrooms and may lose housing benefit for any spare rooms.

Can I get housing benefit if I’m a student?

You can claim housing benefit if you’re studying for a part-time degree, if you’re under 19 and on a course below degree level, or if you have children. There’s more detail here.

I’m under 18, can I claim housing benefit?

Yes. But if you’re renting privately and single, the amount you can get is limited. The only exception is if you’re leaving care. If you’re under 18 and homeless, your council have a legal duty to make sure you have a home.

What if my housing benefit isn’t enough?

You can appeal a decision if your housing benefit does not cover your rent. Get in touch with a local adviser for help.

Can I get a loan to help with my rent?

Local councils run loan schemes to help people who’re struggling. Find your local council here.

The social fund is a pot of money which provides interest-free loans, at a minimum of £100, to help people on benefits pay any rent arrears or moving costs. You can apply at a local Jobcentre Plus.

Discretionary Housing Payment (DHP)

If you’re already on housing benefit, you can apply for a Discretionary Housing Payment (DHP). This payment helps people who get housing benefit, but are having trouble paying rent. It can be paid weekly or as a lump sum, and can also be backdated.

It is not a long-term answer, because the amount available is limited. Get in touch with your local council to apply.

What else can I do?

If you have to move house because of rising costs, you can get help with your deposit through a rent bond scheme.

Ask your family or friends for support any help from loved ones won’t affect your benefits. Try negotiating with your landlord to see if they will agree a cheaper rent or accept a delayed rent payment.

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