Personal Finance
The UK slipped back into recession last week, causing a natural reaction of belt tightening and counting of the pennies. As many have learned from the previous recessions the UK has faced, personal savings can make all the difference when a rainy day finally comes.
The Economy
The Office for National Statistics showed that, for the first three months of 2012, the economy contracted by a further 0.2% on the previous quarter’s drop of 0.3%, leaving the UK economy looking pretty flat and somewhat fragile.
But just how strong is the average Brits personal financial position in 2012?
At the end of the previous financial year Clydesdale Bank asked consumers about their plans for their personal finances and saving intentions for the coming financial year. Interestingly, though perhaps unsurprisingly, the majority of Brits plan to increase the amount of money they save.
The survey found that over a quarter (28%) of people living in the UK intend to save even more money than they did over the previous 12 months, yet shockingly, 30% of savers have no idea what the interest rate on their savings account is.
While saving for an emergency is around the top of the list of reasons to put money aside for most people, many are also choosing to save for luxury items or holidays. The flat economy also creates opportunity for big purchases as price drops become more common.
Increased Lending Interest
It is perhaps for this reason that interest in loan products, as evidenced by the highest rate of loan related searches online in 3 years for the first quarter of 2012, is so high. Amongst the most searched for terms are car loans and holiday loans.
This could also be seen to be supported by the report’s findings that less than one in every ten people living in the UK has more than £10,000 in their savings account. Fortunately for those who do intend to take out a loan to cover the cost of their desires, be it a holiday or a new car, the APR on personal loans has become quite competitive in recent months, going as low as 6% over 7 years for loans up to £15,000.
As the economy outlook for the UK appears pretty flat, if you are one of those considering taking out a loan, it is well worth keeping an eye on the competitive APR’s to ensure you get the best deal.
Stuart writes for various financial blogs on behalf of Clydesdale Bank, one of the UK’s leading banks.
cc licensed flickr photo shared by lrargerich
Economists and politicians may claim that the recession is officially over, but many families and individuals are still struggling to meet household costs. Many have downsized as much as they think they can, yet they are still struggling to provide themselves and their families with basic necessities. Following are some money-saving strategies that most people will find helpful.
Move to Texas
Texas has the lowest cost-of-living expenses in the United States, and those who have flexibility regarding their residential locations should consider moving there. Even if it isn’t possible for someone to move to Texas, they can probably still reduce housing costs in a number of other ways. Moving to a smaller home is one of those ways, especially if it’s situated in a neighborhood that has been deemed undesirable. Almost every community has an alleged bad part of town where rents and home purchasing costs are lower than elsewhere in the community, and investing in these areas often involve future financial rewards. Many former low-income neighborhoods have blossomed into trendy locations where property owners have sold their homes for much more than they paid for them.
Stop Having Children
Although experts are divided on the actual dollar amount that is required to raise an infant to adulthood, it’s common knowledge that children are major money-drains. Those who already have children should immediately make plans to not have any more, and childless people should consider not having them until they’ve reached an appropriate degree of financial stability in their lives.
Families with children who have aspirations of higher education need to be proactive by encouraging their children to excel in academics. This will heighten the chances of scholarship funds being available for college expenses. Instilling a good work ethic in children will help to ensure that they’ll be meeting some of their college costs through part-time work.
Inconvenient child-labor laws aside, children can learn solid work ethics by helping around the house until they are old enough to get fast-food jobs.
Children who are not academically inclined should be steered towards vocational training or advised to find full-time work immediately upon completion of high school and prompted to move out as soon as they can afford to.
High-school drops-outs are among the biggest financial drains that any family can have, and should under no circumstance be allowed to loll about the house emptying the contents of the refrigerator and running up utility bills. Household spending levels can be reduced substantially by kicking them out.
Buy Used items
We live in a throw-away society, and smart people take advantage of this rather than heading to the nearest big-box store when they need to make electronic, clothing or other household purchases. For most individuals and families, a two-year-old computer will suit their needs just as well as the newest one on the market. Gently used clothing bought through online auction sites can help them to retain a fashionable appearance and avoid that certain Walmart look that flatters no one. Garage-sale furniture is a good money-saving option as well. Almost anything can be bought second-hand, and savings from doing so are often greater than 50 percent.
Prepare Meals From Scratch
Buying staple items in bulk and preparing meals from scratch will enable most households to retain more of their available funds. Those who are on tight weekday schedules because of employment obligations can cook and freeze meals to be microwaved during the week, which will cut down on temptations to pick up fast food on the way home from work. Backyard vegetable gardening can also cut down on costs in the produce aisle.
Social Programs
Many people who qualify for food stamps, childcare assistance or medical benefits do not take advantage of these programs, but they can save money by doing so. Income guidelines for entitlement programs vary by state, and potential recipients can often check their eligibility for them online.
Jenn Harris is a HR manager and contributor to Business MBA, a site with detailed information, reviews and guides on the top online executive MBA degree programs.
After the holidays or your birthday, how many gift cards do you have in your wallet? People love to give gift cards because it seems more tasteful than just cash. But the irony is that most people would rather have the cash. You don’t have to get stuck with a gift card you don’t want. You can turn it into cash, and here are some ways to do it.
CardCash.com
CardCash is one of the leaders in gift card exchange. One thing that sets it apart from others is its exceptional customer service. In fact, it has a 1-800 number you can call prominently displayed on its front page; not hidden but rather encouraging your call. If you have an unwanted gift card, you can sell it and will receive, on average, 80 percent of its value in cash, though for some you’ll get 92 percent. You’re also able to trade gift cards for a transaction fee of about 3 percent on average. CardCash also sells gift cards on its website, and you can buy most for a 10 percent discount on the value of the card.
PlasticJungle.com
Plastic Jungle is another major gift card purchaser. It buys gift cards from hundreds of retailers, and they pay you up to 92 percent cash back. One of the best things about Plastic Jungle is that you can choose from one of three ways to get your payment. You can receive a check in the mail, a payment through PayPal, or an Amazon gift card. There are never any fees, and shipping is always free. You can also buy gift cards for up to 35 percent off the value. Plastic Jungle is a simple site to use with lots of options.
GiftCardGranny.com
Gift Card Granny is an awesome site to use whenever selling your unwanted gift cards. Rather than visit each site individually to find out how much cash you’d receive for your gift card, Gift Card Granny gives you a quick and easy comparison. Just find the retailer that your card is for, and Gift Card Granny will tell you what CardCash, Card Pool, and Plastic Jungle will pay you for it so you can be sure to get the best price. If you want to buy a gift card, Gift Card Granny will also tell you who’s selling it for less.
Craigslist and eBay
If your gift card is a card to a local store, you might have a hard time finding a major gift card purchaser to buy it from you. There are also some gift cards that purchasers don’t buy. If you can’t sell yours on any of these sites, you could try Craigslist or eBay. Craigslist is good for finding local buyers in particular. It isn’t uncommon, however, for scams to surround the buying and selling of gift cards. As a seller, you’re less likely to be the victim of a scam if you meet in public and exchange your gift card for cash only. For this reason, you might want to stay away from eBay or similar sites.
Ashley Cole is a stay at home mother and avid writer who fancies herself an expert on bargains. However, she does not consider herself an expert on grammar rules and in order to ensure her writing is professional and free of any embarrassing mistakes she proofs it with a grammar checker.
The Junior ISA has been part of the children’s saving market since last November. It was introduced by the Government to replace the Child Trust Fund, which they had scrapped at the start of 2011. There are many perks for parents who choose to save in a Junior ISA for their child, as any money they choose to contribute to this account will be free of any tax.
In more detail, this means that Junior ISA savers escape paying any income or capital gains tax on the money that is in the account.
Parental discretion
Parents can choose between a cash Junior ISA, which works much like a traditional savings account, and a stocks and shares Junior ISA, which invests the child’s future nest egg in equities, bonds, and gilts.
The choice of where these different accounts allows parents to take more control in trying to maximise the returns for their child. However, there are risks associated with the stock market and these need to be understood before any parent considers using it as part of their strategy.
Experts have said that stocks and shares accounts provide an opportunity for a greater return over the 18 years that a Junior ISA can be open, but this is not always the case. Parents with older children who are approaching their 18th birthday may want to cut risk as much as possible by choosing a cash Junior ISA. One benefit to investors of either type will be the chance to move money between providers if they find another bank or building society offering a Junior ISA with a higher rate.
Rules and basics
The Coalition Government have set the maximum allowance on the Junior ISA at £3,600. This will remain the same until April next year, the maximum yearly contribution will increase in line with the consumer prices index (CPI) inflation measure.
Parents can take advantage of their full £3,600 allowance by investing in both a cash and stocks and shares Junior ISA. There are no conditions on how much should be put in either account, as the only rule is that the maximum of £3,600 is not exceeded in total for both accounts.
While the maximum yearly contributions have been set by the Government, ministers have revealed that providers will be allowed to set the other terms on the Junior ISAs that they offer. These include the requirements for minimum deposits, details on how the accounts will be opened, and how accounts are managed. This makes it crucial for parents to look at the different Junior ISA providers and accounts on offer, as they will each have their own terms and conditions.
Ron McHenley from www.comparejuniorisa.com writes about the basic rules and advantages of the Junior ISA.
Image by Vectorportal
Everyone can improve his or her financial future. With so many hopes in foreclosure and more and more Americans filing for bankruptcy, these moves can help any individual avoid talking to an attorney about filing. You may have gone through your monthly budget and realized how many unnecessary items you spend money on. You made a vow to further secure your financial future by limiting excess spending, tightening your belt and getting better control over where your money goes. Whether it’s preparing your finances for bankruptcy or attempting to avoid it, here’s some tips you should know to help with your future.
Go Over Your Budget
Perhaps the simplest thing an individual hoping to secure his financial future would need to cover is planning out a budget. When an individual is preparing to file for bankruptcy, the first step in doing so often is preparing a budget to see just what areas may be affected. If you find yourself on the verge of filing, you still should review your budget. You might find extra ways to trim unnecessary spending and help improve your financial future. You might be able to cut out going to the movies and instead pay for a streaming service to avoid the higher cost. If you go over your budget and see that your expenses are close to exceeding your monthly income, it may be a good idea to speak to an attorney, like a Sylmar bankruptcy lawyer.
Talk to a Financial Planner First
You might be able to speak to a financial planner to help set up a payment system for repaying all of your debt and avoiding bankruptcy altogether. Even if your financial future is okay, it’s still a good idea to speak to an expert. These professionals can help you make better decisions with your money and even find out more ways to invest it to make yourself even more cash. If you own property or even stock, a financial planner can help you determine how well your investments are working and how they can be improved upon.
Credit Consolidation
Chances are that if your debt is high and your financial future is not bright, you can consider consolidating your credit to help with the payments. Consolidation serves as another effort to minimize debt by lowering monthly payments and interest rates, helping you to make more payments without having to worry about huge fees due to interest. Some people may not qualify for consolidation of their payments, and if this is the case, one can always visit an aggressive bankruptcy lawyer in Woodland Hills for help.
Rob R. Nichols is a Qualified Thousand Oaks bankrutpcy lawyer. If you are looking for a skilled Sherman Oaks bankruptcy lawyer serving the San Fernando Valley, call (818) 914-4741.
