How cutting back could help you get your finances into shape

Saving can seem hard, but small cut backs can add up to big savings that could make a real difference to your financial future.

When you look at your monthly outgoings it can be hard to see where you could cut back to save for your future, to finance a big new purchase such as a car, to help your children or to pay off debts.  But it can be easier than you think. 

Every little helps

Looking to make big economies can be hard.  But often it’s the little purchases that you make without thinking about them – precisely because they are so small – that add up to sums that could make a real difference to your financial future.  Buying one app at just 99p a week mounts up to £361.35 a year.  Buying a £2.50 coffee every day on your way to work, comes in at £650 a year.  You probably wouldn’t miss the apps, and you could take your own flask of coffee to the office – bingo!  More than £1,000 a year saved effortlessly.  

Compromise

Of course, it’s still nice to have a treat.  But turning those optional extra purchases into real treats, rather than every day or weekly occurrences, can mean you enjoy them even more.  Spending £30 a week on takeaways for you and your partner costs a staggering £1,560 a year.  Spoiling yourself once a month, rather than every week, would still give you an extra £1,170 to play with by the end of the year.

Work it out

To see how quickly your small cut backs could add up to real savings, use the ‘quick cash finder’ calculator on the Money Advice Service. 

You don’t have to make huge economies to make a big difference to you financial future: cutting back the little things can give you more options than you dreamed of.

For expertfinancial planning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

Financing your car: how much does it really cost you?

The secret to successful financial planning is budgeting – and that means understanding the true cost.

With some things, that’s simple: you buy a designer handbag and the cost is the price tag.  But with other purchases, the cost is much more than the upfront payment.  This is more true of cars than most things.  As well as the showroom price, there are so many running costs, all of which can determine whether you can really afford the wheels you have set your heart on. 

The cars we drive say a lot about us.

Alexandra Paul

Across the globe, cars are seen as a status symbol.  But before you rush out and buy a new car with your heart, take some time to think it through with your head.  To get a true idea of what your dream car will cost you to run each year, you need to add your petrol costs, servicing and maintenance, car tax, insurance and depreciation.  The final sum can be quite eye watering, even for a modest car.

The Money Advice Service has a great car costs calculator, which enables you to compare the running costs of different cars, whether you are looking at a new purchase or running an older model.

When you know the annual running costs of the model you like, it’s easy to work out how much money you will need each month to keep it on the road to see if it really is the car for you.  

For expert financialplanning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

Savings made simple

Saving a small amount regularly is the key to successful saving, but how much should you be saving?  Fortunately, there are simple tools that can help you work out exactly how much you need to save to meet your financial goals. 

                           

Know your goal

How much you need to save depends on what you are saving for: a blow-out wedding, because the roof is going to need repairing next year, university fees for your children, a new car, or just to have more financial freedom in the future.  How much money you need is the first element of how much you need to save.

Know your timescale

The second thing that will affect how much you need to save is how long you have before you need the money.  If that dream wedding is next year and you don’t have anything stashed away, you may need to tighten your belt so you can squirrel away a lot over the next few months.  But if you’ve only just become a parent and are thinking about being able to help your child onto the property ladder when they are older, small regular amounts will get you there.  So working out how long you have to save is the second thing you need to know.

Know your budget

For savings to be successful, you also need to know how much you can realistically afford to put by each month.  If paying for your dream wedding next year is going to mean you struggle to pay your mortgage, you probably need to scale back your plans a bit. 

Do the maths

When you’ve worked out your goal, your timescale and your budget, you can then calculate how long it is going to take you to reach your target and how much you need to be putting by each month.  Fortunately there are some simple online calculators available online to make the maths really easy: I especially like the one from the Money AdviceService.

Achieving your financial dreams is much easier with a bit of planning. 

For expert financialplanning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

The financial implications of the Tories’ election victory

It was the general election outcome that no-one expected.  But what did the Conservative win mean for the financial world – and, more importantly, your investments?

Essentially, the financial markets reacted positively to the news the Conservative Party had won a slim majority in May’s General Election.  The markets like certainty, and while David Cameron may only have a slim majority, it’s enough to mean he should be able to bring in his policies. 

Taken by surprise

Investors, like all the pollsters, had generally been expecting another hung parliament and therefore financial markets had not really factored in the possibility of an outright majority.  As a result, share prices rose with relief as the predicted uncertainty of coalition negotiations was removed.  In particular, the news provided a boost for share prices in the banking, energy and house building sectors, which had all been expected to come under pressure from a Labour government.  Labour had promised to enforce further regulation on the banking sector and to impose new regulation on the energy and property markets.

Short-term confidence boost

For now, at least, the election result has provided a certain amount of clarity amid hopes by the markets that current government policy will remain in place. This clarity is expected to deliver a short-term confidence boost for investors and is also likely to provide support for business investment in the longer term.

Future uncertainty

Although the General Election result removed the immediate uncertainty that would have been caused by a hung parliament or a minority government, there is plenty of uncertainty on the horizon to keep the markets on their toes.  The thorny questions of the UK’s role within Europe and Scottish independence mean the potentially shifting political landscape will continue to impact on investments.

Looking ahead to the unknown is part of the service offered by Core.

For expert financial planning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

Financial planning for parents-to-be: creating a secure financial future

Becoming a parent is the biggest life-change most of us go through.  It’s hugely enjoyable – but it’s also a huge responsibility.  And part of that is making sure that your family is provided for, no matter what the future holds. 

Becoming a parent can be a big wake-up call.  Living for the day and not worrying about tomorrow is no longer an option.  So, if you haven’t already, now is the perfect time to make sure you are looking ahead and have successful financial planning in place so that your family is taken care of, no matter what.  Here are my top tips to secure your baby’s future:

Start saving early

Little and regularly is the key.  Finding £5,000 to invest in a lump sum is a push for most of us, but squirrelling away £100 a month is not only manageable, it’s best practice.   The small sums soon add up to create a significant pot so you can help your child in the future – maybe with university fees or to help them onto the property ladder – and make sure they will be provided for should anything happen to you.

Sort out life insurance

If you already have it in place, review it to make sure it is adequate for your changed circumstances.  If you don’t have any life insurance, get expert advice about what’s available to find the best option for you and your family.

 Make or review your will

Again, if you already have a will, now is the time to review it to make sure it would cover your baby’s needs should anything happen to you; at the very least, you will probably want to consider who should be appointed as your baby’s legal guardians if you are no longer around to care for her.  And if you don’t have one, take one out.  No-one likes think about worst-case scenarios, but thinking about it now will mean your baby will be well looked whatever the future holds.

Becoming a parent means new responsibilities on all sorts of levels, and securing your baby’s future is an essential part of this.

For expertfinancial planning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

Financial planning for parents-to-be: spend wisely

How much is your new baby going to cost you?  The answer is ‘how long is a piece of string?’  But before you go waving your credit card around, I’ve pulled together some great ways of making your money go further. 

If money is no object you can blow a fortune on designer babygros and custom-made cots.  But for most of us, there is a budget.  The good news is that there are some great ways to get the equipment you need for your new bundle of joy without taking out a second mortgage.  Here are some of my favourites:

·         Accept pre-loved: Lots of new parents only want brand new things for their baby.  While your baby won’t know the difference, she will pick up on your stress if you are worrying about money.  So consider pre-loved items from friends and family.  Every penny you save is money you can put towards enjoying your fantastic new life as a family. 

·         Look for recycling groups in your area: There are lots of local recycling communities who pass on quality items so they can enjoy a new lease of life.  Freegle are one of the best-known

·         Look for second-hand sales of quality baby equipment and clothes: Babies grow out of their clothes and equipment really quickly, so you can pick up some really good quality items at second-hand sales.  Look up your local NCT group for details of sales in your area or have a look on parents’ websites such as NetMums.  You can also get some great bargains in online auctions such as e-bay

·         Bag a bargain: Your baby won’t mind if her Babygro is in this season’s must-have colours or not, so look out for bargains in the regular high-street sales and buy when the price is right.

Spending wisely will mean you can make your money go further, to enable you to have more fun with your baby and plan successfully for her financial future.

For expertfinancial planning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

Financial planning for parents-to-be: budgeting for your baby

Wow! You’re expecting a baby!  It’s easy to get carried away with the excitement, planning your ideal nursery and shopping for gorgeous outfits.  But before you go mad, it’s a good idea to take a step back and work out what you can and can’t afford, so you don’t start your new life as a parent with a headache of debt. 

There’s no getting away from it: babies are expensive.  There’s not only all the equipment they need – and they need a lot of equipment – plus an extra mouth to feed, there’s also the prospect of financing these increased costs on a potentially reduced income.  If you are planning on taking extended maternity or paternity pay, or reducing your working hours so you can have more time with your baby, you are likely to have to pay more attention to your household budget than you did previously.  Plus long-term planning may become more of a priority for you: making sure you have financial measures in place should the worst happen is crucial when you have dependents. 

All of this means that good financial planning is essential for expectant mums and dads.  And the starting point for this is to work out what you can afford. 

Here is a guide to the likely costs of your baby’s first year:

ITEM	BUDGET	LUXURY
Moses basket/crib	£60	£360
Cot	£95	£700
Nursery furniture	£100	£1,000
Buggy	£80	£600
Baby car seat	£80	£220
Child car seat (Stage 2 seat)	£100	£300
Other equipment	£105	£660
Clothing	£465	£2,000
Nappies	£330	£460
Milk	£50 (breast only)	£450 (bottle)
Food	£100 (homemade only)	£520 (bought only)

You can get an instant total by entering your budget figures in this online calculator.

Working out a budget – and sticking to it! – is a great move to make sure that you get your life as a new family off to a secure financial start.  But look out for my other tips on planning for your family’s long-term financial future to make sure your loved ones are provided for, no matter what the future holds.

For expert financialplanning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense