Liz Blog Archives - Page 2 of 3 - Your Money Road Map

Ten Tips for Cutting Costs on Holidays Abroad

by Liz Lugt | Aug 7, 2017 | Liz Blog

Holidays abroad tend to come with quite a price tag attached. Here are ten tips that can soften the blow and help you cut your costs:

As always, your surest way of affording a holiday is to budget in advance for it. Make sure you have the cash BEFORE you book your holiday. The last thing you want is to be paying for a holiday long after you’ve been and come back.
Did you know that you can buy your holiday money online AND get it delivered to your door? Which? found that buying your holiday money online can often be cheaper than buying it on the high-street. Do shop around though and watch out for delivery charges that may tip the scales in favour of high-street suppliers. Try to avoid buying your forex at the airport, you are bound to pay a premium for this convenience.
Know what your bank will charge you for using your credit card or debit card while abroad (i.e. ask them what their foreign exchange loading fee is). There are only a handful of suppliers that don’t charge you for using your card. One transaction that you should never make while abroad if you want to avoid high bank charges are cash withdrawals on your credit card!
Another option for holiday spending abroad is to use a prepaid card. Essentially, these are cards that you load with a specified amount of cash and then use to make withdrawals or purchases. You can top them up. These are a great way of ensuring you stay within your budget. See the www.which.co.uk/prepaidcards to find out more.
Why buy a guidebook when you can borrow it from the library for free?
Make sure you always pay in the local currency and not in sterling. Hotels and shops charge currency conversion rates at a premium to those charged by banks.
Shop around for travel insurance and don’t just take the first policy you are offered.
Did you know that if you cancel your flight, even a non-refundable one, you are still entitled to claim back the tax and air passenger duty? Sometimes airlines charge an admin fee if you do this, but it may well be worth it if you’re going on a long-haul flight.
Following a change in EU roaming rules, effective 15th June 2017, you can now ‘roam like a t home’ while using your mobile phone while travelling within the EU. This means that all calls, texts and data used in the EU will come out of your normal UK allowance. This is a huge bonus, but BEWARE, should you go over your UK allowance, you will be heavily penalised. See www.ofcom.org.uk for more information. For travel outside of the EU, consider using an international calling card or pay phones for local calls instead.
You can get free state-provided medical treatment in the EU, Liechtenstein, Norway and Switzerland if you have a European Health Insurance Card. You can get one for free at www.ehic.org. Note that some treatments may require you to pay a supplement but it is definitely worth considering. Beware of any websites that want to charge you for this card.

Happy holidaying!

Help for getting on the property ladder

by Liz Lugt | Feb 7, 2017 | Liz Blog

As house prices continue to rise, so the dream of owning your own home seems to slip further and further out of your reach. But don’t despair! You can still make that dream become a reality. One of the ways you can do this is by making use of the government’s Help To Buy ISA scheme, which, in my opinion, really is a no brainer.

So, what’s the bottom line? The bottom line is that with a Help To Buy ISA, the government GIVES you a whopping 25% BONUS on top of what you save!! Here’s how it works:

It is open to all first time buyers who are saving for a deposit on their first home.
You need to be aged 16 and over and resident in the UK.
You can save up to £1,200 in the first month and up to £200 every month after that. These are the maximum amounts you can save. You can also save a lot less, skip months, etc., it all depends on you.
You only need to save £1,600 in total in order to qualify for the bonus, i.e. £1,600 is the minimum.
The maximum you can claim a bonus on is £12,000.
The government adds a bonus of 25% of whatever you have saved by the time you buy your first house, tax free. This means that if you have saved the minimum of £1,600, they government will add £400 giving you a total of £2,000. And if you have saved the maximum of £12,000, the government will give you £3,000 giving you a total of £15,000.
Unlike other schemes, this scheme is not limited to new builds.
If you are buying a home together with a friend, partner, family member, etc. they too would be eligible for a Help To Buy ISA on the same property as long as they are also first time buyers. This means if you both saved the maximum of £12,000, you would each get the £3,000 bonus.
The scheme is set to continue until 2030 so there is plenty of time to open your Help to Buy ISA and get saving.
You can use it to buy a property worth up to £250,000 outside of London or a property in London worth up to £450,000.
When you are close to buying your own home, simply instruct your solicitor or conveyancer to apply for your government bonus on your behalf.
The one catch is that the bonus can only be used towards the actual deposit on a property, not for any of the other costs associated with buying a home. It’s still worth it though.
Interest rates on Help To Buy ISA’s are up to 2.27% pa at the time of writing this money tip.
For more information or to calculate how much you can expect to receive, see the government website here.

How to get ahead in your personal finances in 2017

by Liz Lugt | Jan 16, 2017 | Liz Blog

I don’t believe in New Year’s resolutions, they simply just don’t work. But I do believe in setting goals. In fact, research has shown that the most successful people in life set goals; whether they are top-level athletes, successful business-people or other high achievers across all spheres of life. They identify what it is they want and then take regular action to move towards their goals.

And it’s not just success for success’ sake that make goals important. Psychologists tell us that people who make consistent progress towards meaningful goals live happier and more satisfied lives than those who don’t.

Every year I set no more than 7 – 10 goals across the most important areas of my life, including my personal finances. I then take regular action to achieve these goals. Do I achieve all of them? Not always, but I have found that I achieve exponentially more than I otherwise would have if I had not set any goals at all.

If you want to get ahead in your personal finances this year, start with setting some personal finance goals. I would advise setting no more than 1 – 3 personal finance goals (as you don’t want to end up neglecting the other areas of your life) and making them SMART i.e.

Specific (clear),
Measurable (have a £ value attached to it),
Achievable (realistic),
Relevant (to your situation) and
Time-oriented (have a deadline).

Maybe a goal could be something like “Pay off £1,200 in credit card debt by the 31^st December 2017” or to “Save an extra £100 a month for the next 12 months”.

Once you have your goals, don’t just stop there, (1) take the time to regularly review and work on your goals. Plan this into your diary. (2) draw up a budget to help you succeed in achieving your goals. And, (3) if need be, enlist some help along the way. Do whatever needs to be done so you can achieve your goals and get ahead in your personal finances in 2017. As Michael Hyatt says, “You will only achieve what you intentionally set out to do.”

How to cut the cost of Christmas

by Liz Lugt | Nov 24, 2016 | Liz Blog

Christmas…….a time to spend with loved ones, a time to celebrate, a time to be generous, a time to forgive, a time to stop and be grateful for all that you have. Christmas certainly is special. But did you know that average income households can take up to six months to clear debts built up through Christmas spending on food and gifts? Don’t get caught up in this frenzy only to wake up with a financial hangover when it’s over. Here are a few ideas to help you cut the cost of Christmas:

Set yourself a Christmas budget. The only way to make sure that you spend what you can afford to spend is to have a budget and to stick to it.
If you lack discipline, leave your credit cards at home when you go shopping and just take the cash amount you budgeted for. This may sound extreme but you do not want to be like the 5 million or so adults in the UK who are still paying off their debts from last Christmas!
Did you know that one out of five Christmas gifts is unwanted? Why not agree a ‘present price limit’ with family and / or friends and get a few gift ideas from each of them? A small, but wanted gift is always a winner.
Buying gifts for all your children’s friends can quickly add up to a hefty sum. Why don’t you get together with the other parents and arrange a Secret Santa. Each of you can draw one child’s name out the hat for whom you then buy a present. This way, every child gets one nice gift and every adult only has to buy one gift. My kids love this one!
Discount / voucher codes. Anytime I buy something online I always look for a discount / voucher / promotional code. Sometimes I get lucky and sometimes not. It’s well worth trying though as you can often bag yourself a 5% discount or free postage and packing at the very least.
Cashback websites. Yes, there are loads of cashback websites out there which give you cash back for shopping at well known online stores simply by clicking through from their websites. Examples are www.linemypocket.co.uk and www.quidco.com.
If you’re into advent calendars there are plenty free ones online which the kids will love just as much. Simply do a search via your search engine.
If you’re a high street shopper, try your hand at haggling. Yes, haggling works on the high street. You just have to know how, and practice makes perfect.
Free samples from upmarket cosmetic counters are a wonderful stocking-filler for girls.
Consider giving a favour or a skill swap this Christmas e.g. babysitting, beauty treatment or haircut, DIY, etc.
If you have kids, frame some of their artwork to make a great gift for the grandparents.
Photobooks are another great gift for family members. They are cheaper than you think to do online and if you do more than one, you get further discounts. Check out www.photobox.co.uk.
Mugs stuffed with chocolates and sweets are much cheaper to do yourself than to buy ready-made.
Shop in antique shops, charity shops and markets for unusual and frugal gifts.
Get baking – if you’re good in the kitchen, try your hand at making sweets or shortbread. Decorate and wrap them up nicely in some cellophane and a pretty ribbon and you’ll have yourself a very nice gift for someone.
When it comes to food shopping, don’t get deceived by 3 for 2 offers on expensive brands. Why buy more than you need? Also, own-brands will look just as good and be just as tasty.
Compare the price of your shopping trolley at www.mysupermarket.co.uk and see where you’re best off doing your shopping at.
Cook from scratch. This is not only cheaper to do but it’s healthier too. I know its extra work, but it’s a great reason for doing a dish or two less and it’s also a good opportunity to enlist the help of the kids. If you are organised and plan ahead you can prepare a few things in advance.
The tragic thing about Christmas is the waste, especially when it comes to food. Research has shown that 6.7 million tonnes of food is wasted in the UK alone. Don’t contribute to this horrific number, check out www.lovefoodhatewaste.com for some seasonal recipes for leftovers. Also, freeze the leftovers you can and enjoy them on another occasion.
Sending Christmas cards is a huge expense! Consider sending personalised e-cards. They’re free on websites like www.ecards.co.uk pr www.paperlesspost.com and they’re kinder on the environment too. For those of you who have time and are also creative, why not design your own cards in word or powerpoint?
We spend so much money on expensive wrapping paper and gift tags. Don’t get carried away. Plain wrapping paper with a nice coloured ribbon is often just as effective. Old Christmas cards also make great gift tags. Cut the picture off the front of the card, add a little loop of pretty string to it and Bob’s your uncle.
Hold out one more year and buy new Christmas decorations and an artificial tree after they go on sale for next year.

Five Myths about your Credit Rating

by Liz Lugt | Jun 13, 2016 | Liz Blog

We live in a world where our credit-worthiness now impacts not just whether we can get a mortgage, a loan or a credit card, but also whether we can get a mobile phone contract, a bank account, car insurance and more. Yes, your credit rating is important! However, I have found that there are a number of myths surrounding it…what it is, how it’s calculated, how it’s used and what, if anything, you can do about it. So I decided to debunk the five most common myths, here they are:

Myth 1: Everyone has a universal credit rating.

The truth is there is no such thing as a universal credit rating, i.e. that magical number that somehow gets calculated and held somewhere to represent how credit-worthy you are. Yes, credit reference agencies talk about your credit score, but this is just an advertising tool they use and is merely an indicator of your creditworthiness based on the credit information they hold about you.

Here in the UK, there are three credit reference agencies i.e. Experian, Equifax and Callcredit. Their business is to compile data about you to help prospective lenders assess whether or not they should grant you credit in the form of e.g. a mortgage, credit card, loan, etc. These agencies each produce their own credit report on you which you have the right to access in exchange for a small fee. There may be differences on these reports between the three providers, this is because they may hold different aspects of data about you. It is a good idea to check the accuracy of your credit reports, I would suggest doing this about once a year.

Myth 3: There is a credit blacklist.

There is no such thing as a credit blacklist. Each lender has a different set of criteria which they use to assess whether or not you are credit worthy. Some lenders are stricter than others. The good news is that there are some very easy things you can do to immediately improve your chances for credit success e.g. making sure you are on the electoral roll, removing old financial associations from your report, closing old credit cards, building a good credit history, etc.

Myth 2: Credit reference agencies decide the outcome of your credit application.

Credit reference agencies have absolutely no say on whether or not your application for credit is successful. The only thing they do is supply your credit report to the lender you have applied at. It may help you to know that your credit report is not the only thing that lenders will look at when assessing your application, they will also look at other information they themselves hold about you as well as the information within your actual application.

Myth 4: Checking your credit report will damage your credit rating.

Not at all! You can check your credit report as often as you like, this will have no bearing at all on your credit rating. In fact, you should be checking your credit report from each of the three credit reference agencies at least once a year to see whether or not the information they contain is accurate and to ensure that you have not been the victim of ID theft e.g. someone using your personal details to open a bank account.

Myth 5: Missed payments stay on your credit report for good.

Any missed or late payments, plus other account data, will actually only stay on your credit report for six years after the account has been settled or written off. It does not stay there for good. And an older late payment will have less of an impact on your credit worthiness than a recent slip up. In fact, one missed payment every few years will unlikely affect an application for credit too seriously.

Eight ways to save money on clothes shopping

by Liz Lugt | Mar 4, 2016 | Liz Blog

Whether you’re shopping for an occasion or simply bulking up your wardrobe, here are some great ways to get more out of your clothes budget:

Go online

Not only is it possible to bag yourself a better deal when buying from some online retailers, but it’s also becoming more and more popular for well known brands to have outlet stores on ebay. Some items are made available at buy-it-now prices and others are sold via the auction system. Either way, you can save yourself some money if you’re prepared to shop virtually.

Did you know that when you buy online you have a legal automatic seven working days ‘cooling off’ period which starts from the day after you receive your items? This means that you can change your mind within this time and return the items for a refund (note this doesn’t apply to things like CD’s, DVD’s, perishable or tailor made items). While most high street stores do have a returns policy, it is not a legal requirement for them to do so which may prove a costly exercise if you change your mind after leaving the store.

Savvy sales shopping

Buying on a sale is only a bargain if you were going to buy the item anyway. Most of us can hold up our hands and pick out at least one item from our wardrobe which we bought on a sale but have never worn. If you want to avoid this trap, take a list of the items you need before you go shopping and even resort to leaving your cards at home, just taking your clothes budget in cash instead.

Swop instead of shop

Swishing parties are becoming more and more trendy these days and they’re kind on the environment too. You can either host your own swishing party, where you trade your unwanted items for someone else’s, or check out www.swishing.com for your closest party.

Borrow instead of buy

For the ladies – if you’ve got a smart ‘do’ coming up and don’t want to splurge on a dress, consider hiring a designer dress from www.girlmeetsdress.com or www.mycelebritydress.com. This will cost you a fraction of the price of buying a similar dress.

Vouchers, discount stores and outlets

I took a wild chance the other day when shopping for something online. I found what I wanted, then proceeded to look on www.myvouchercodes.co.uk and found a voucher for the online store giving me a 5% discount! You can get vouchers for practically anything these days. Check out www.hotukdeals.com and www.vouchercodes.co.uk as well.

And you’re bound to pick up a bargain if you’ve got the patience for discount stores such as TK Maxx. It may take some rummaging and staking your territory, but perseverance usually wins the day.

Discounted designer clothes and accessories

If designer clothes tickle your fancy, there are some great websites where you can grab yourself a bargain. Check out www.theoutnet.com and members-only shopping sites such as www.secretsales.com and www.cocosa.com.

TLC

You can get more mileage out of your clothes if you show them some tender loving care. This means following the manufacturers instructions on how best to wash them. Teaching yourself some basic repair methods can help you salvage clothes before they become unwearable (if you’re clueless where to start, someone will surely have done a video to help you on www.youtube.com). You can also spruce up an outfit by changing the buttons, adding a bow or a flower or using a pretty neck scarf.

Retro is back

This is not only a budget friendly way to shop but it’s eco friendly too. Charity shops can be a surprisingly good place to find amazing bargains. Again, those with patience and perseverance win the day.

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