Five Cardinal Don’ts of Money Saving

I want to help you keep your budget in check this week on the Kiran Trivedi blog, with the following five cardinal don’ts of money saving.

It’s Important to Remember What You Shouldn’t Do

With winter fast approaching, it’s more important than ever that you keep your budget in check. After all, not only are their rising energy costs and perpetually climbing cost of living expenses to think about, but Christmas is on its way too, and you’ll need as much cash to hand as possible to make it one to remember.

Of course, when it’s comes to money saving, there’s a lot of things you should do. However, it’s equally important to remember, that there are a lot of things you should absolutely not do if you want to keep your bank balance high throughout the winter.

You Really Shouldn’t Do the Following Five Things

There’s lots of things you shouldn’t do, but the following five rules really are the five cardinal don’ts you need to avoid if you want to keep your bottom line high…

1. Don’t Shop on an Empty Stomach: Have you ever done the weekly shopping when you’re hungry? Your hunger will make you more prone to buying everything you want. Great, but not good for the old pocket book. Full people tend to actually think about what they’re buying.
2.  Don’t Take Your Card on a Night Out: Basically, alcohol impairs judgement, so if you take your card on a night out, you’ll end up spending far more than you ever dreamed of, damming your budget to the red. Either take cash, or invest in a prepaid card.
3.  Don’t Buy the First Thing You See: You may see something you love, and you will be tempted to buy it straight away. Don’t. You may be able to get the same thing for less somewhere else.
4.  Don’t Pay the Minimum on Your Credit Card: Have you ever actually worked out how long it’d take you to pay off your credit card, if you only paid off the minimum. Years. That’s why if you want to secure your budget in the long run, you need to pay as much of as possible as quickly as possible.
5.  Don’t Throw Away Your Receipt: So many people throw away their receipt, and they really shouldn’t because it’s the only thing they can use to get their money back, should they buy a faulty product. That is why you should always keep your receipts.

Will This Save Me Money?

A lot of this is just common sense, which is why the best advice I can give you, Kiran Trivedi readers, is to simply think before you do anything. When you’re presented with a choice, stop and ask; will this save me money?

What’ll happen to Your Money if Scotland Goes Independent?

With the referendum so close, this week on the Kiran Trivedi blog, I ask what’ll happen to your money if Scotland goes independent and you live in Scotland.

Money is a Major Consideration for Scottish Independence

Although people don’t often tend to think about it a lot, when you’re looking to protect your personal finances, the currency your money is actually paid to you in is vital. That is because certain currencies have different values in comparison to each other, thus those whose wages are paid in pound sterling, for example, pay more for their everyday items, than those paid in the Euro. Because the pound has a higher value.

This is why I’ve no doubt, Kiran Trivedi readers, that you’ve heard so many arguments about currency in the recent debates over Scottish independence. Independence won’t affect the pound too much.  It may suffer slightly on the world stage, due to fears over the UK’s economic strength, but it’s always been a strong currency. The real question would be whether Scotland would be allowed to keep it.

Would Scotland Be Allowed to Keep the Pound?

One of the real issues raised in debate is whether Scotland would be allowed to keep the pound. Whist Alex Salmond – leader of the yes campaign, has said that they will, Alistair Darling, leader of the opposing Better Together campaign, has said that they won’t.

Losing the pound would be disastrous, as not only is it a desirable currency, but it would cost the collective taxpayer north of the border millions to convert to a B currency. A B currency would not only be worth less than the pound, but has been shown to be incompatible with the EU lately anyway, thus less desirable for the people of Scotland.

Could Scotland Keep The Pound Even Without Permission?

From here, we’re lead to ask, Kiran Trivedi readers, whether Scotland could just defy the British and keep the pound anyway, without permission. There is precedence for this. Countries including El Salvador, Panama and Ecuador use the US dollar without permission.

But look at their quality of life – hardly desirable for the people of Scotland, which as a member state of the UK is part of a first world country. The problem with keeping a currency without permission, is that you have no control over that currency. That means that If England needs to raise its benchmark interest rate, for example, they would, and taxpayers north of the border would have to like it or lump it.

Scottish Independence Could Effect Personal Finances North of the Border

That’s not to say I’m against Scottish independence, Kiran Trivedi readers. I actually think there are some quite effective arguments in favour i.e. moving capital away from London, but currency is definitely an issue to contend with. If Scotland does go independent, it really could affect your personal finances if you live north of the border.

Why Should You Be Self-Employed?

In light of new figures suggesting that self-employment has risen to its highest level in 40 years, on the Kiran Trivedi blog I ask; why should you be self-employed?

Self-Employment in UK Hits Highest Levels in 40 Years

According to the BBC, the Office for National Statistics (ONS) has released new figures showing that self-employment in the UK has risen to its highest level in 40 years. A staggering 4.6 million people – 15% of those in employment throughout the UK – are self-employed.

This is telling. That figure has risen from 13% back in 2008 at the height of the financial crisis. So why are people turning to self-employment? The government explained it for us.

Control of Your Own Financial Destiny

The news source reported that a government spokesperson commented on the figures. They said that “many people aspire to be their own boss,” before adding that “self-employment has been a growing part of the labour market for most of the last 30 years, which is why we continue to support budding entrepreneurs.”

Essentially, self-employment gives you control of your own financial destiny. In light of the disaster of the 2008 economic crash, it’s not surprising more people are self-employed; it’s the only way to achieve unshakeable job security.

Self-Employment is Not Without its Risks

Yet self-employment is not without its risks; risks that were highlighted by TUC General Secretary, Frances O’Grady’s, response to the release of these figures. O’Grady said that: “The growth in self-employment is reducing people’s pay, job security and retirement income – and is likely to be reducing the government’s tax take too.”

Basically, the risks that your employer usually takes on, fall on you when you decide to become self-employed. So yes, you’re never exactly going to fire yourself, but if your business is doing badly, then you have to take a greater share of the responsibility for it.

Self-Employment is a Double-Edged Sword

So why should you be self-employed, Kiran Trivedi readers? Because it gives you guaranteed job security and ultimate control over your personal finances. Yet self-employment is a double edged sword, and the very freedom that is making it a more attractive employment option than ever, makes it a more risky employment option for your personal finances.

What is a Prepaid Card?

This week on the Kiran Trivedi blog I ask; what is a prepaid card and how can you use one to protect your personal finances?

Is There a Way to Have Your Cake and eat it too?

I’m always advising you to limit the use of debit cards on a day-to-day basis. As I showed in a recent article on the Kiran Trivedi blog, more people are using cards for low value buys. That means that people are using debit cards more often, which is a threat to your personal finances because you spend money more often, without the incentive to keep track of how much you are spending.

Obviously, one of the most effective ways to limit the damage that debit cards can wreak on your personal finances is to not use one. But is there a way to have your cake and it too; to have a debit card but not overspend? In fact, yes there is; the prepaid card.

How Does a Prepaid Card Work?

The clue’s in the name. A prepaid card is a card that looks and works exactly like a debit card. However, the difference is that it does not have access to your main bank account. Rather you load it with money from your bank account before you spend.

It’s easy to see the advantages of a prepaid card. It means that once you have spent the money you have put on it, you have no more to spend; you don’t go into your overdraft. Rather, you have to go to the effort of going to the bank to put more money on the card.

It’s Too Much of a Hassle to Overspend!

This is why a prepaid card is great for your personal finances. Most of the time, you don’t tend to be that bothered about spending money on your card. You might fancy a can of coke, and think, that because you have your debit card on you, you might as well. What’s the harm?

Yet if you have a prepaid card, and you budget for it every month, you have to stop and think to yourself before you spend. Merely thinking it through means you are less likely to make an impulse buy if you’re prepaid card balance is low. That means that your debit card is less of a threat to your personal finances, because you simply can’t be bothered with the hassle of thinking it through, dealing with the latent guilt and topping up your prepaid card!

 

 

This Proves Everything I’ve ever said about Lowering the Cost of Energy Bills

The latest British gas profit report proves everything I’ve ever said on the Kiran Trivedi blog about lowering the cost of energy bills. It’s all about keeping warm.

There’s a Reason the Kiran Trivedi Blog Always Advises You Keep Warm!

I understand the unique danger that energy bills pose to your personal finances. The astronomical prices imposed by energy companies, mean you could end up with an exorbitant bill just for using up enough energy to keep yourself going through the winter.

That’s why whenever I write about how to lower the costs of energy bills in winter, I’m always telling you to keep warm. By keeping windows closed, embracing the sartorially dubious choice of layers or investing in insulation, you can shave serious cash off of your energy bills.

British Gas Profits Hit By Roaring Summer Heat

And here’s the proof of why all this stuff works. According to the BBC, British Gas parent company Centrica reported that the gas supplier’s operating profit fell  by a quarter to £265 million in the first half of 2014. Why? The warmer weather.

British Gas profits were hit by a warm winter

Sam Laidlaw, Centrica’s Chief Executive told the BBC that “we had warmer weather in the UK which meant that actually our average customer’s consumption of gas was down 24%.” This proves my theory; the warmer you keep yourself, the less energy you use, the more money you save!

British Gas Expect Average Bills to Be Down 7%

Aside from that, British Gas customers could see their energy prices fall even further. Laidlaw pointed this out, by saying that “we actually also simultaneously had very cold weather in the US – the polar vortex – which resulted in generating companies charging us with a lot of additional ancillary costs.”

“The good news from a customer’s point of view is that actually we expect average bills to be down by some 7%, or £90, this year.” So, if you’re with British Gas, expect to have a little more in the budget whenever the next energy bill rolls around, as long as you’re careful with how much energy you use!

This is Why You Need to Focus on Saving Energy!

Pseudo-bragging aside, British Gas’ phenomenal fall in operating profit underscores why you need to introduce energy saving measures. Essentially, you pay less, and if enough people do it, it can even drive down everyone’s energy prices!

For more great energy saving tips, follow Kiran Trivedi on twitter.