BE SMART WITH SPENDING THIS CHRISTMAS

BE SMART WITH SPENDING THIS CHRISTMAS

by | Dec 13, 2021 | Uncategorized

BE SMART WITH SPENDING THIS CHRISTMAS

13

DECEMBER, 2021

Christmas
Spending
Planning

No-one can begrudge some indulgence this Christmas with last year mostly cancelled for big family gatherings. While it’s a smart move to get going on your gift-buying, it’s also important to keep a handle on your spending.

People intend to spend 21% more on Christmas than they did last year, according to a study by Saffron Building Society. A separate report by Saffron Building Society showed that many families, especially those with children under 18, are planning to spend beyond their means. Over a third of parents – that’s 4.5million people – are set to spend over £300 on each child.

With families facing rising inflation, it is now more important than ever to find a way of making Christmas affordable, rather than racking up debts.

Here’s our guide to smart spending this year.

MAKE A PLAN

Writing a list of who you need to buy for will help you create a budget. It’s often when you forget someone that you end up paying over the odds for a last-minute gift.

Just make sure you stick to your original list – and avoid panic-buying extras on Christmas Eve because you think your present isn’t generous enough.

If your list is out of control, discuss the idea of a secret Santa with family and friends instead.

Alternatively, try suggesting that you should buy only for children this year, or agreeing spending limits. Others might be relieved at the suggestion of a money-saving idea.

“Don’t forget to redeem the rewards built up from the loyalty cards you have.”

SNIFF OUT SALES

Even though Black Friday is behind us, retailers are likely to continue with discounts.

Without big sales events there are still ways of cutting the cost of shopping. Create your own discount by finding money-off codes. Type the brand name and “voucher code” into Google or try websites such as myvouchercodes.co.uk, vouchercodes.co.uk or hotdealsuk.com. Individual websites will often give you a discount for your first purchase. And sometimes if you leave items in an online basket overnight they will email you with a money-off code or free delivery.

CASHBACK

Using cashback websites for Christmas shopping can boost savings. Instead of visiting a retailer’s website to buy something, you go to a cashback app or website, search for the company that you want to buy from and click on its logo to be directed back to the shop. The app or website usually earns commission from what you have bought because you have clicked through from its site, and it then gives some of this commission back to you.

The percentage of your payment that you get back varies depending on the company you shop with. You can get rewards as gift cards for shops, or cash paid into your PayPal or bank accounts. The main cashback sites are Quidco and TopCashback.

SHOP AROUND

Price comparison websites are not just for energy bills and mobile phones. If you’re looking for something specific – the latest games console or this year’s must-have toy – use online comparison tools. You can set Google alerts – just enter the name of the product you want – so you don’t miss out on any new sale prices. Check out pricerunner.com.

REDEEM REWARDS

Don’t forget to redeem the rewards built up from the loyalty cards you have. It often pays to bide your time and wait until there are offers to make your rewards go further. Sign up to the email alerts and you will be kept informed of all the special offers you can get your hands on.

SPREAD COSTS

By all means use credit cards to spread the cost of Christmas shopping over a couple of pay days.

But ensure you only spend what you can afford to repay in full. If not, consider using a 0% interest credit card to avoid interest charges. Try and find one without a balance transfer fee.

Think carefully before using your overdraft to avoid interest charges, or the buy-now-pay-later option that is offered on an increasing number of websites at the checkout stage.

If you do decide to borrow money over the festive season in any form, double check all the terms and conditions before you agree to anything.

KEEP FOOD BILLS DOWN

One of the biggest expenses at Christmas is hosting friends and family. Plan menus carefully and buy what you need to avoid overspending – and waste. Don’t be afraid to ask your guests to bring a dish or drinks with them. Or perhaps charge them with bringing table decorations or Christmas crackers.

GIFTS FOR KIDS

Financial gifts are for life, not just for Christmas. So before going overboard on toys for children or grandchildren, perhaps choose just one gift they can open on the day and top up their Junior ISA or savings account. They will thank you one day!

DELAY PRESENT-GIVING

If you’re not meeting a friend or family member until after Christmas to exchange presents, you could use the Boxing Day or New Year sales to buy cut-price gifts.

DARE TO RE-GIFT

If you have received a present this year that you know you won’t use, but know someone who will like it, then re-gift it. Just keep track of who gave you what, so you don’t end up handing a gift back to the same person!

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Tavistock Partners Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Partners (UK) Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Private Client Limited is authorised and regulated by the Financial Conduct Authority. The Tavistock Partnership Limited is authorised and regulated by the Financial Conduct Authority. Abacus Associates Financial Services is a trading style of Tavistock Partners (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Duchy Independent Financial Advisers is a trading style of Tavistock Partners Limited which is authorised and regulated by the Financial Conduct Authority, All subsidiaries are wholly owned by Tavistock Investments Plc.

THE PENSIONS SAVINGS MYTH

THE PENSIONS SAVINGS MYTH

by | Nov 29, 2021 | Planning, Retirement, Uncategorized

THE PENSIONS

SAVINGS MYTH

29

NOVEMBER, 2021

PENSIONS
SAVINGS

There’s a whopping £2.6 trillion[1] invested in UK pension schemes. Yet new research tells us that only a third of people know that their money is actually invested in the stock market.

The study[2] found that some 35% of people (correctly) said their pension was invested in the stock market, a third (33%) said (incorrectly) that it wasn’t, while 32% said they didn’t know. Only a quarter of women (25%) knew that their pension was invested in the stock-market compared to 44% of men.

Awareness did not increase as people got older. Some 35% of 25-34-year olds understood that their pension was invested, while 33% of 45-54-year olds said the same. Such confusion about how pension savings grow could be one reason why many people do not properly engage with retirement planning. Understanding how pensions really work and the impact these returns can have could encourage people to contribute more and invest wisely.

To go right back to basics; a pension isn’t an investment in itself. It is a tax-efficient pension pot which investors can place a portfolio of investments. The beauty of a pension is that money invested inside this so-called tax-wrapper grows free of capital gains tax and income tax.

A crucial part of building a meaningful fund to live on in retirement is choosing the right mix of investments. While many schemes will have an excellent range of investments available, that doesn’t mean those your money is invested in are the right ones for you.

Investors have the power to decide where their contributions are invested and so can choose to invest in a way that suits their retirement plans, as long as the scheme allows.

“Older pension schemes with narrow investment choices might not offer the right kind of funds you’re looking for.”

Another consideration is investing in line with their values in terms of investing ethically. According to government research[3], one third of UK savers put considerations of impact on people or the planet as one of their five most important factors.

A separate survey[4] found that 52% of consumers across all age groups seek to balance making money with creating positive social outcomes.

To encourage people to take control of how their pension savings are invested, film director Richard Curtis co-founded website Make My Money Matter.

Its research claims that switching your pension to back responsible causes is 21 times more effective at reducing your carbon footprint than giving up flying, going veggie and switching energy provider combined.

An adviser can help with getting your pension savings invested in the right place to maximise returns that also match your requirements when it comes to investing for good.

Your adviser can also review your existing pension schemes to see if they offer the best investments and the best value.

Older pension schemes with narrow investment choices might not offer the right kind of funds you’re looking for.

This means you might need to switch schemes to turn your pension green, or simply to access the best investments for you.

Source:

[1] https://makemymoneymatter.co.uk/whats-the-issue/

[2] Hargreaves Lansdown – Opinium carried out a survey of 1,000 people on behalf of HL in September 2021

[3]  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/834207/Investing-in-a-better-wold-full-report.pdf

[4] https://www.pensionbee.com/resources/customer-investment-views.pdf

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Tavistock Partners Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Partners (UK) Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Private Client Limited is authorised and regulated by the Financial Conduct Authority. The Tavistock Partnership Limited is authorised and regulated by the Financial Conduct Authority. Abacus Associates Financial Services is a trading style of Tavistock Partners (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Duchy Independent Financial Advisers is a trading style of Tavistock Partners Limited which is authorised and regulated by the Financial Conduct Authority, All subsidiaries are wholly owned by Tavistock Investments Plc.

The rising cost of living: 5 things households can do

The rising cost of living: 5 things households can do

by | Nov 9, 2021 | General Investing, Planning

THE RISING COST OF LIVING: 5 THINGS HOUSEHOLDS CAN DO

28

OCTOBER, 2021

Savings
Tax
Budget

Rising food and energy prices are hitting every household in the pocket. Here are five ways to make sure you’re being smart with your money:

  1. Remortgage

Since a mortgage is likely to be your largest monthly outgoing, now is a good time to check if you can save on repayments.

Rates on mortgages remain extremely competitive with two and five-year rates available under 1%.

While interest rates have been a record low of 0.1%, last month the Bank of England cautioned it may soon raise the base rate to combat rising inflation, which jumped to a nine-year high in August[1].

A rise in interest rates usually feeds through to mortgage rates, so you might want to start exploring your options sooner rather than later.

Some mortgage offers are valid for up to six months so even if your existing deal doesn’t expire until 2022, you can still secure a low rate now.

Take action: Explore what’s on offer from all lenders in the market with the help of a mortgage adviser who has access to far more products than if you went direct to a bank or building society.

  1. Use tax breaks

There are plenty of generous tax breaks that are not to be missed. You just need to know about them – and use them. While not everyone can afford to save as much as they’d like each year, putting a little something away every month is better than doing nothing. Crucially, the earlier you save, the more time your money will have to grow. You can place your investments inside an ISA or in a pension where both offer invaluable tax breaks.

You can invest up to £20,000 in an ISA and gains are tax-free.

When investing in a pension the tax treatment is different. You get a tax top-up when you contribute to your retirement pot, at the rate of 20%, 40% or 45%.

Take action: Make sure you are considering the tax breaks offered by ISAs and pensions. Check your tax code too. Even the taxman can get things wrong sometimes. You will find your tax code on your P45, the PAYE Coding Notice sent by HM Revenue & Customs or on your payslip. An adviser can help you maximise tax breaks.

  1. Savings accounts

Long-suffering savers have seen little return on their savings while interest rates have been at rock bottom.

While rates are so low, it’s still important to maintain the all-important rainy-day account for unexpected expenses, so just make sure you’re getting the highest rate you can find. Some are offering 0.65% or more if you take a fixed rate account.

Even if and when rates do start to rise, banks don’t have to hike interest rates. So don’t leave your money in a poor paying account in the hope it will rise soon.

Take action: Use a comparison website or talk to your adviser about the best place for your easy access savings.

“You can invest up to £20,000 in an ISA and gains are tax-free.”

  1. Be a budget bore

Dig out your recent bank statements and spend some time going through them to work out what is paid in and what comes out. Start with what comes in each month from a salary, any income from pensions or investments or perhaps family trusts.

Look at your spending on direct debits and standing orders – is there something lurking that you had forgotten about? Hanging onto gym memberships is a common trend among those who only manage to go a couple of times a year. You might even spot a magazine subscription you have been meaning to cancel.

Take action: Study your everyday spend and try to identify things you could cut out.

If frittering is a weakness, keep a diary of everything you spend for a couple of weeks and see where you can make savings.

  1. Check what you’re entitled to

The government offers benefits and tax breaks that many people fail to claim or use. People are missing out on over £15 billion of benefits[2]. pensioners are the least likely to check what benefits they can claim – 63% of whom have never checked. They are also the least likely to claim the benefits they have a right to, with one in three missing out on Pension Credit.

Anyone on a low income needs to regularly check that they’re getting all the help available to them.

Take action: Website turn2us.org.uk can help ascertain what benefits you might be eligible for.

Pensioners can speak to the Department for Work and Pensions about Pension Credit on 0800 99 1234.

Source:

 

[1] https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/august2021st-year
[2]  Turn2us.org.uk, May 2021 

 

 

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Tavistock Partners Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Partners (UK) Limited is authorised and regulated by the Financial Conduct Authority. Tavistock Private Client Limited is authorised and regulated by the Financial Conduct Authority. The Tavistock Partnership Limited is authorised and regulated by the Financial Conduct Authority. Abacus Associates Financial Services is a trading style of Tavistock Partners (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Duchy Independent Financial Advisers is a trading style of Tavistock Partners Limited which is authorised and regulated by the Financial Conduct Authority, All subsidiaries are wholly owned by Tavistock Investments Plc.

Tavistock Blog
MENU
PLEASE CLICK LINKS BELOW