Tag: finance

Guest Post: 7 Reasons Why Your Teenager Needs To Know About Money

When your son and daughter was born, they were probably a smiling, gurgling bundle, quickly growing into an angelic child who never tired of cuddles. Now a few years have passed and they have transformed into a stomping, grunting teenager who would sooner poke their own eye out than have a serious conversation with you.

However, as their parent it is your responsibility to have a conversation with them and make sure they know all the facts. No, not the birds and the bees…..something far more tricky; money.

You may well flinch at the idea but they need to be fully equipped to venture out into the world. Here are seven very good reasons why you should take a deep breath and sit them down.

1. If they don’t find out from you, they will have to get the facts from somewhere else. And that means you will have no way of knowing whether they are being given accurate or honest information. Banks have proved themselves as less than trustworthy in giving out advice. If you want to be certain they get an honest view, you need to do it yourself.

2. Letting them wander into the world of credit without a financial education is like sending a lamb to the slaughter. Mobile phone companies and rogue lenders will take advantage of your child’s naivety and they could end up signing a contract which costs them a lot of money.

3. And if they do get in financial difficulty, whose door will they come knocking on? Whilst there are many altruistic reasons to make sure your child knows what they are doing, it also means you are potentially protecting yourself from having to bail them out of trouble.

4. It isn’t easy to work out what everything means without a bit of help. There are some things in life which are simple to understand without any help. The world of finance isn’t one of them. Contracts are full of jargon and impossible to make sense of without someone explaining all the terms. Did you know what APR meant before someone told you what it meant in plain English?

5. Teenagers tend to make impulse purchases. If they don’t appreciate how long it takes to pay back a credit card and how much extra interest they will have to pay, they will max out their card almost as soon as they get it.

6. If your offspring get the chance to learn about money as soon as possible and gradually put those skills into practice, by the time they have to make big financial decisions, they will be more adept. This is particularly relevant if they are planning on going to university as managing on a tight budget will be a key skill.

7. If you take the time to talk through the subject calmly – and perhaps share some of your past mistakes, your son or daughter might feel more at ease approaching you in the future. Struggling with money problems is much more difficult if you don’t have anyone to discuss the issue with and by making the first move and showing that everyone can make mistakes, hopefully you can avoid your children trying to cope with any problems alone.

Baines & Ernst specialise in helping people clear debt with effective solutions including Debt Management Plans and IVAs. Since 1996, Baines & Ernst have helped over 100,000 escape the pressures of debt.

August 17, 2012
Guest Post: 7 Reasons To Keep Track Of What You Owe

Everyone knows that borrowing money is not a good idea but sometimes it is a necessary evil to get you through a major mishap, such as the boiler going bust or the car breaking down. However, a recent study revealed that many people have no idea how much they owe, preferring instead to bury their heads in the sand, proverbially, not literally. Although it might be more comfortable to kid yourself about how much debt you have, here are seven reasons why it isn’t a good idea….

1. Not knowing how much you owe will stop you getting back on track. You can’t budget effectively. Even if you only opt to pay the minimum on your credit card each month (which is never a good idea unless you are absolutely skint) you still need to know how much will be debited from your account. Having no clue about the repayments mean you are not budgeting and are simply crossing your fingers and hoping you have enough cash.

2. You will damage your credit rating. You might not have sufficient funds in your account to cover the repayment. This means not only a black mark on your credit file for a late payment but if you are on a special deal, you may have to kiss it bye-bye. Failing to pay on time allows the credit card company to revoke the terms and apply not just charges, but a higher level of interest.

3. Being unprepared for an unexpected bill could mean you fall behind in other financial areas. Even if you do have the money in your account, it could have been earmarked for another expense, such as your mortgage or rent. Getting caught unawares of another bill could leave you with not enough money to pay for your essentials.

4. Misleading information could spell bad trouble. If you need to declare your financial circumstances, perhaps on a mortgage application or maybe you are opening a new current account; you could be accused of fraud if you provide misleading information about what you owe. Claiming ignorance is not considered an acceptance defence. You could find yourself not only rejected but blacklisted making it almost impossible to get accepted by any mainstream provider.

5. You could end up in a spiral of debt that you find hard to get out of. It could drive you into taking extreme measures such as relying on high-interest payday loans, or even worse, going to a loan shark, for money to get you through the month. For most, this is a downward spiral from which it is difficult to escape.

6. You could find it hard to get additional credit in the future. If you are relying on credit every month, you may well end up going over your limit. In many cases your lender may not reject the transaction but will slap you with charges and any future creditor will view you with extreme caution. You may also find your credit limit suddenly slashed; most lenders reserve the right to do this if they feel you are not managing your account properly.

7. Ignoring debts will only make your situation harder. You might not want to know how much you owe, but if you don’t take a deep breath and face the facts, how will you tell when your debts have become unmanageable? If your financial circumstances are less than comfortable, totting up how much you owe to all your creditors can make you feel anxious. However, there are a lot of ways to get help but unless you take the first step and acknowledge that you can no longer manage your debts, you will be forced to struggle on alone.

Baines & Ernst specialising in helping people get out of debt with affordable debt solutions including Debt Management Plans and IVAs. All them for expert debt help and advice today.

August 10, 2012
Guest Post: 7 Reasons Bob Diamond Had To Go – Shine On You Crazy Diamond

In the past few weeks Barclays big dog Bob Diamond has seen more turgid inches than Katie Price in her pomp. Column inches that is (of course, what were you thinking?), as the Barclays Libor scandal has flipped a plethora of wigs in the financial world – and in this sphere there are plenty to flip.

Diamond and co-conspirators (or clueless simpletons as many have claimed, trying to avoid the axe), passed the buck so much that it got misplaced. Thankfully it was recovered from the lost and found and pinned securely to Bob’s head, which was now very much on the block. So, why exactly did the Barclays boss have to go? I can think of, hmm, 7 reasons:

1. What’s in a name? Well… Judging people by their name is just wrong. It’s unfair, prejudiced, illogical and stupid. But Bob Diamond – really? Bankers should be trustworthy and reliable. It could be hypothetically scientifically impossible for anyone named Bob Diamond to be trustworthy. I got a GCSE in science – well I took a GCSE in science – so I should know. I’m pretty sure that Bob Diamond is a name designed specifically for second hand car dealers and scrap metal thieves. Would you trust a Bob Diamond with your money?

2. All that glitters… The Barclays scandal arose because Bob (yes I know him well enough to call him Bob now), apparently ordered the fixing of the Barclays Libor rate. This is the rate at which banks lend to each other and it indicates the financial position of an institution. Betting and trading on currency rates and market movements is one thing, but fixing is quite another. By doing this Bob was suggesting that Barclays was in a better position than it was. Naughty Bob!

3. A hole in the head for business. This fixing clearly indicates that – as well as being deceitful and dishonest – the Bobster has a hole in the head for business. Oh Bob why did you have to go and ruin a good career in investments, wealth management and other pecuniary matters with this scandalous move? Some critics have claimed it’s because he’s American; others that it was a cry for help; others that this was just the first time he was caught.

4. Blood ‘Diamond’ Conflict. When it became public knowledge that the Barclays Libor rate had been fixed, it ‘proper kicked off’ at the bank, as the Financial Times reported (or some other, perhaps imaginary publication). As mentioned the buck was passed furiously but among all the dizzy bankers, it was Diamond whose blood they were after. It was Diamond that had to go, as well as executive chairman Marcus Agius.

5. Diamond not a banker’s best friend. Squirm as he might Bobby couldn’t escape his fate; especially after he was grassed up by ‘right hand man’, Barclays executive Jerry del Missier, who told the Treasury Select Committee that Diamond had order him to fix the Libor rate. Bob was even less popular when the bank was hit with fines of £290 million.

6. Parliamentary porkies? The final nail in the Bob-shaped coffin was the accusation that Diamond lied to MPs about the scandal, showing again his charming proclivity for untruths that every good banker should have.

7. Bobby bonus. So it was decided/insisted that Bob would have to go, but as he clears his desk the £2 million bonus and benefits he will receive will soften the blow a little. It’s the least he deserves for deluding a trusted bank and a country in economic strife. God bless you Bob – shine on you crazy Diamond.

July 27, 2012
Guest Post: 7 Reasons To Still Visit Greece

It might be beset by strikes and economic problems but it’s still a great place to visit. Here’s why…

The Acropolis: It will be nice when it’s finished. Photo by Dan Cross.

1. It’s Cheap. It is terrible to think of Greek people struggling with lower wages and higher prices but there are some fantastic holiday offers for Britons to take advantage of by visiting Greece. Some tour operators are cutting the price of Greek holidays by up to 60 per cent. This effectively means that you can get two holidays for the price of one – if you can find anyone to travel with you.

2. Citizen Journalism Opportunities. With strikes and protests common on the streets of Athens there are plenty of fantastic opportunities for British citizen journalists to cut their teeth by recording some great front-line footage. A quick look at internet forums show that many Greek people think that reports of anarchy in their country have been greatly exaggerated. Are they right? There’s only one way of finding out…

3. To Annoy William Hague. British Foreign Secretary William Hague clearly isn’t keen on Britons travelling to Greece. In February he incurred the wrath of tour operators by announcing plans to evacuate Britons from Greece in the event of major civil unrest. Britons have never liked being told what to do and, just like Bluebeard telling his wives that they must never enter his forbidden room, discouraging us from going somewhere just excites our determination to do just that.

4. To Support Our Fellow European Nations. Even a cursory glance at the film Captain Corelli’s Mandolin shows us just how much the Greek people suffered during the Second World War. Now is the time to join together and support a fellow European nation in their hour of need.

5. To Annoy The Germans. The Germans are clearly not happy about bailing out the Greeks. Expressing support for Greece – by visiting their beautiful country – could well provoke the ire of a nation with which it has a troubled relationship (again, see Captain Correlli’s Mandolin).

6. To See Sights Of Great Sporting Importance. Greece is the cradle of sporting civilisation – this is where the Olympics began many moons ago. So British sports fans should feel very at home when visiting the ancient crumbling sites where Greek gladiators fought for their livelihood.

7. To Escape The Olympic Hype. Alternatively, if you’re a Briton who is not keen on sport and wants to escape the Olympic hype this summer then Greece is just the place to visit. Touring the ancient crumbling remains of the country offers the perfect escape route and might afford a frightening glimpse of what London’s Olympic Stadium could look like in a few years’ time!

Author Bio: James Christie writes for airport parking and hotel provider BookFHR. If you’re travelling to Greece, do so in style by booking a hotel near Gatwick for the night before your flight.

April 27, 2012
Guest Post: 7 Reasons You Need A Personal Budget

So, what is a budget anyway and why do I need one? A budget isn’t just a piece of paper carried in that big red sandwich box that worried looking bloke waves about every March outside 11 Downing Street. The Budget is the Government’s best estimate of what they will receive in income for the year ahead – taxation, revenue, sale of signed photos etc – and what they intend spending it on – NHS, wars, salaries, new dart board for Dave’s office etc. In the same way, a personal budget will have a forecast of your year’s income and how you intend to spend or save it; this can very easily be done with accounting software now readily available on-line. Like the Government, you can include borrowings in your budget, but unlike them you can’t decide to “print” money to ease your financial troubles – well not legally anyway! Here are 7 reasons for making a personal budget.

1. Paying The Rent. Unless you still live with Mum and Dad, housing costs – whether rented or purchased with a mortgage – will probably be your largest regular expense. Unless, that is, you are addicted to chocolate in which case see below. It is a good idea to start with listing your main living expenses including fuel and Council Tax, Sky TV and other essentials so that you can then assess what you have left at your disposal for your other needs or aspirations.

2. Chocolate. If you do have a passion for chocolate or indeed any other luxury for that matter, having a budget will show you the areas of expenditure that you can economise on so that you can indulge your passions ad nausea. This advice is given only on the understanding that you are responsible for your own health and that the author cannot be held liable for any complications arising from excessive consumption.

3. Holidays. Home or Hawaii? A few people enjoy holidays at home, but if your ambition is to spend six months in California then your budget can help you reserve the cash to achieve it. If you know in advance how much you can spend on tickets and trips you can often pick up a bargain by advanced booking; or you could be in a position to make a spontaneous purchase when you spot a good deal and be confident that you will have the funds to cover it already in your holiday savings pot.

4. Food. In the intervals between clubbing and sleeping, most people eat food. This may be dispensed with but that is not a recommended plan for enjoying a longer life. If you are already aware of what you spend on food regularly it is easy to budget. If you are not aware, then you can take a stab at it and adjust the budget after a while to reflect how much you wish to spend and then shop accordingly.

5. Work. Unless you are lucky enough to be able to work from home, then you need to budget for travel to and from work, whether for bus or train fares or the cost of running your own car or bike. You may need to reserve funds for buying tools or clothes. Unless you are expert at charity-shop scavenging you could need to spend a bit on looking smart in the office. Especially true for the office-party when you need to impress someone you want to share your pencil with; or even your boss for that matter.

6. Christmas Is Coming! For many people Christmas is the time for giving and having a good time; and the rest of the year the time for remorse – especially after the afore mentioned office-party – and for scratching around trying to pay for it! You can set yourself a budget for presents and entertaining and, as long as you stick to that, the only headache you will have in the New Year will be a hangover and not a financial one. No longer will you have to wrap up a box of tissues for Granny’s gift, trying to convince yourself in doing so that it is the thought that counts and that she will forgive you for your spendthrift ways once again.

7. Play. You will need to know in advance whether you can afford that season ticket for your favourite team or will instead have to resort to standing on the touchline at the Rec. to get your sports fix. Perhaps you might want to start a new hobby or activity and to plan ahead for equipment purchases or memberships. Your budget will help you make those decisions wisely

You don’t have to keep your budget in a big red sandwich box, but it will be useful to have it to hand to see how well you are managing your finances and how much you will have left at the end of the year for shoes or chocolate. Accounting software will provide you with an easily accessible reference and a method of budgeting to enable you, and not your bank, to have control of your finances!

April 16, 2012
Guest Post: 7 Reasons To Shop For Car Insurance

Auto insurance is not typically a product people buy for enjoyment. But since it is required in 49 of the 50 states, drivers have to buy it and driving without insurance can lead to financial ruin. Well, at least it is more fun than paying taxes.

With that out of the way, here are our top seven reasons to shop for car insurance:

1. Because The Cavemen Told You To. If you spend any time watching television, listening to the radio, or been online, you have likely been inundated by insurance ads. There are quirky women, presidential-like men, bald, aging men, geckos, and cavemen all pitching you insurance. Car insurance companies spend billions of dollars a year on advertising. Don’t just go with the big companies. Smaller to medium sized insurers that don’t advertise may be able to offer you a better combination of price and coverage.

2. Because You Like Overpaying. Comparing rates between companies is key. Sure, it is easy to stay with your same company and just pay their new bill but if you have not shopped for insurance in the past 6 months, you are likely overpaying. Rates change frequently and can vary significantly by company. But don’t compromise on coverage.

3. Because Your Insurance Needs Never Change. When you drive, you put yourself at financial risk. If you are at fault in an accident, you could be personally responsible for all financial damages caused to others. You want to make sure you have the protection necessary to cover the value of your home and other financial assets. Make sure you deal with A.M. Best Rated insurers for maximum protection.

4. Because You Hate Discounts. Many insurance companies offer a wide range of discounts for customers. However, don’t think you are getting a better deal just because a company offers you a lot of “discounts”. Take the time to shop around and see whose “discounts” are best.

5. Because You Got Out Of Dodge. When you move, it is highly likely your insurance rates will change. Certain neighborhoods are statistically more risk for insurance companies than others in terms of the volume of claims. Rates can change significantly when you move to a new state so investigate this in advance. Moving is a good opportunity to shop for the best rate for your new location.

6. Because Your Car Is A Piece Of Junk. If your car is a piece of junk, you still need insurance but you may no longer need collision or comprehensive coverage to protect the vehicle. You will still need liability coverage at minimum and in some states, personal injury protection and uinsured/uninderinsured motorist coverage may also be required. But, if your car is a real piece of junk, you need a new car and will need new insurance to protect it.

7. Because It’s Fun. Auto insurance shopping is no party but it is fun to save hundreds of dollars on your rates. Take the time to comparison shop. It could go a long way towards paying for your next party.

January 15, 2012
7 Reasons foursquare And I Are Over

If you have been a reader of 7 Reasons for a while now, you may remember that at the beginning of August, I (that’s me, Jon) decided to sign up to the new social media kid on the block that is foursquare. It didn’t start too well and as you may recall I predicted foursquare and I were going to have a tricky relationship. Now, I’m sure you’ve been wondering how on earth we are getting on. Well, seven weeks on, we catch up with myself and foursquare to find out.

1. Neglect. To be fair, there has been little contact or indeed effort from either party. I haven’t logged into my foursquare account once since I joined and foursquare hasn’t once bothered emailing me to ask why I have not logged into my account since I joined. Evidently we both have better things to do with our time. I certainly do. Playing with my hair etc.

2. Affair. We both had one. In fact, for the past seven weeks I have been having regular threesomes with twitter and facebook. They seem to like it and I feel strangely clean about the whole thing, so it’s win win. You may have a different point of view, but before you judge me and accuse me of being dirty, may I remind you that foursquare has three million users plugged into her. Potentially all at the same time.

3. Financial Resentment. It’s not that fact that I mind foursquare being worth $80 million – which on latest calculations is just quite a way over $79 million more than I am – it’s the fact that they flaunt it. ‘Woohoo!’ they shout. ‘Come and invest in me!’ There is just no need for it. I don’t go running up and down the street shouting, ‘Woohoo! Come and pay off my student loan!’ do I? No, I don’t. I’d get some very funny looks from some very funny looking cats.

4. Bullying. This one is on me. I put the foursquare app into my iPhone social media folder – yes, I have one of those because I am a hipster – and then I teased it. By this I don’t mean I played hide and seek with it – although I suppose I did in a way everytime I put my phone in my pocket – but I kept hovering my finger over it and then chose twitter or facebook instead. Did I feel bad? Not really. The foursquare icon never said, ‘Touch me baby’. Aesthetically speaking.*

5. Nagging. Not by me. But by foursquare. It forever wanted to know where I was. ‘What are you doing? Where are you doing it? Why are you doing it? How are you doing it? Oooh, I wouldn’t have done it like that’. Just shut up and go away. This is my life and I will do whatever I like, where I like it, for seven of my own reasons, in a manner I feel happy with. Unless my girlfriend or my mum tell me otherwise.

6. Sexual Incompatibility. I won’t go into this too much, but I was rubbish. To be honest, my heart wasn’t in it. And, if it was, I’d have been doing it very, very wrong indeed. I know that much.

7. Realisation. Mark Zuckerburg. You know the guy, he created that facebook thing. Last week his company opened up the world of ‘places’ for all facebook users. So now we can tell all of our ‘friends’ just where we are. As a result I now know when friend A is at work, when friend B is on the platform at a certain train station and when friend C is on the toilet. Quite frankly, this is all too much information. And it is exactly the kind of thing foursquare specializes in. As disappointing as this will sound, the truth is, I really don’t care where you are or what you’re doing – unless you owe me a lot of money. And to be honest, I only have time not to care once. Consequently I have decided not to care via the medium of facebook and thus shall be shutting my foursquare account down with immediate effect.

*My finest oxymoron yet.

September 23, 2010
7 Reasons That Golf Is The Wrong Sport For Businessmen

Businessmen play a lot of golf, and business golf is a accepted part of business culture – there are even books about it. Here are 7 reasons that golf is the wrong sport for businessmen.

1. Location. Business takes place in the city – an urban environment – but golf takes place in the suburbs or in rural environs. Therefore, golf is in the wrong place. As a businessman, this means you have to travel to the golf course. What you need is a sport that you can play in cities, thus saving travel-time and expense. Snooker or pool would be ideal. After all, things always go better with a drink and you’ll have a big table that you can put your paperwork on.

2. Stuff. Golf requires an astonishing amount of equipment. There’s all manner of paraphernalia to lug around – so much of it, in fact, that you need to carry an enormous golf-bag, or hire a man to carry it for you. Some people even use electric buggies (a whole special car to convey golf equipment!). This is clearly ridiculous. Carrying your golf equipment around is incompatible with being businesslike. What you need is sports equipment that fits into a briefcase. A Frisbee is perfect.

3. Assessment If you compete against potential business partners over a few holes of golf, what are you really learning about them? That they don’t like to get their pink trousers muddy? That they can chat about very little while waiting to tee off? A more challenging sport will teach you far more about them. Rugby union, for example. You’ll learn far more about your potential business partner’s drive, desire, sense of ethics and commitment when he’s growling, biting your ear and trying to remove your testicles with his hand or when he’s spear-tackling your head of marketing. Rugby union is a team game. There’s no “I” in rugby union. Well, there is, but someone will poke it out sooner or later.

4. Clothes. Golf requires you to physically exert yourself. Golf also requires a different set of clothes than business. This means that you have to shower and change once your round of golf has finished. This is inefficient use of time. This is time you could spend working and earning money. Unless, that is, you earn your money in the men’s changing rooms, in which case…er…er…do carry on.

5. Women. You don’t see women heading out to the golf course to “network” or play “business golf”; they usually prefer to conduct their business at their business premises, and it’s quite hard to fault that sort of logic. If you’re playing business golf, you’re doing business very inefficiently – as you’re only meeting men. You need to be in an environment that’s agreeable to both sexes. I don’t know what that place is, but there must be at least one, even if it is always at the wrong temperature.

6. Length. Golf takes too long. It takes you out of the office for hours. If you must use the company’s time to participate in sport, you could find one that takes less time. 100 metre sprinting is a quick sport. Here’s how to combine it successfully with business: Walk to a point that’s 100 metres away from your desk, then run back to your desk as fast as you can; because that’s where you should be – at your desk – getting work done.

7. Displacement. Is your work really so dull and frustrating that you need to go to a field and repeatedly smack a ball with a stick? Aren’t you just avoiding work when you’re playing golf? If you didn’t hang around on the golf course “working”, then your actual working day would be so much shorter and you could spend your free time doing what you really want to do. Spending more time with your family or…er…playing golf.

March 31, 2010