December 21st, 2024 | Andrew Hagger | News

Boosting mental health is a key driver for adopting good saving habits, with one in three (31%) people in the UK confirming that they are less stressed when they are saving regularly. 

As we see the back of the festive season, many Brits will be using the ‘Twixmas’ period to lean into saving habits and plan for the year ahead, with nearly a quarter of Brits (23%) saying they do identify as having a ‘frugal’ mindset when it comes to saving and spending. 

Even amongst those who don’t necessarily think of themselves as frugal, nearly nine in ten people said they frequently applied at least one regular money saving habit. Those ranged from skipping takeaway drinks for 40% of UK residents, to cancelling unused subscriptions (40%), not going out to pubs, bars and on nights out (37%) or for meals (34%) more than once a month, and ‘meal planning’ meals carefully to reduce spend on office lunches (35%).

People were indeed so serious about developing good financial habits that nearly four in ten said they’d considered using the services of a qualified financial advisor – with this trend most prevalent in younger age groups. Indeed, 47% of 18-24 year olds and 53% of 25-34 year olds have considered using this service.

Spending trends range from doom spenders to yo-yo savers 

Although most people are keen to apply good money habits, savers across the country did admit to behaviours that got in the way of setting a regular habit, with those most prevalent amongst younger age groups. One in four (24%) of 18-24 year olds admitted to ‘yo-yo spending’, a trend where periods of overspending are followed by a complete ban on buying even basic essentials, with one in five (19%) 25-34 year olds also admitting to this habit.

Another prevalent trend was amongst ‘saving dippers’, where people save up a lump sum but then can’t resist the urge to dip into savings once they’ve reached a certain amount – this impacted one in five (20%) of 18-24 year olds and nearly three in ten 25-34 year olds (29%)

People aged 18-24 year olds were also twice more likely (17% vs 8%) than the national average to ‘doom spend’, a trend where people are more inclined to live in the moment and not prioritise saving for the future because they feel morose about the current climate and future prospects.

However on the whole, most people reported positive habits and close to half (46%) were satisfied with their financial situation. The most common reasons to save were to set up a rainy day or emergency fund for 52% of respondents in the event of a loss of income, while planning for unexpected expenses (51%) and planned goals such as holidays, house renovations and events (39%) also key saving priorities. On average, people aimed to save 23% of their income. 

HSBC UK’s Head of Everyday Banking, Pella Frost, commented: “The run-up to January is a great time to review your finances and set some goals for the year ahead.

“Planning your financial future can be easier if you start by mapping out your goals, whether that’s the holiday of a lifetime, or boosting your rainy day fund. There are a number of tools people can use to support them with saving better, for example our Savings Goals feature, which helps customers make a plan and stick to regular saving habits and improve their financial resilience over the long-term.”

HSBC UK’s Savings Goals feature is helping customers create almost 20,000 goals every month on average, with more than 100,000 goals already created since the tool launched earlier this year. More than one in ten goals set has already been achieved by HSBC UK customers.    

On top of this, HSBC UK also offers Investment Goals, which helps customers make a plan for achieving their long-term financial goals and set aside money each month to invest. 

Finally, customers and non-customers alike also have access to a range of tools to help them plan for their financial future, including a Financial Fitness Tool, Savings Calculator, account comparison tool, and free 1:1 financial health checks. 

December 20th, 2024 | Andrew Hagger | News

As the new year approaches, it’s time to start thinking about your financial goals for the upcoming year to budget effectively.

Christie Cook, head of retail at Hodge Bank says:

“Financial stability shouldn’t be scary or off-putting, it should be accessible to everyone, which is why starting the New Year with a strong budgeting plan is essential for achieving your goals.

“By implementing even a few of these techniques, people can feel confident taking control of their finances and working towards whatever their goals may be for the New Year.”

Christie has also provided five essential savings tips for the new year:

Harness the Power of the 50/30/20 Rule

“One of the most effective budgeting strategies is the 50/30/20 rule, which encourages people to allocate 50% of their income to essential needs, 30% to discretionary wants, and 20% to savings and debt repayment.

“This simple framework empowers consumers to manage their finances while ensuring a balanced approach to spending and saving.”

Set Achievable Savings Goals
“I recommend setting specific and measurable savings goals to provide direction and motivation.

Whether aiming to save for a holiday, a new home, or an emergency fund, clear targets can make the savings process more achievable and rewarding.

Automate Savings for Success
“Automating savings transfers is a proven method to enhance saving habits. By establishing automatic transfers from checking to savings accounts, individuals can make saving a consistent and effortless part of their financial routine, ensuring they reach their goals without added stress.

“By opening a fixed savings account, it ensures you can’t touch your savings for a set amount of time. For example, the Hodge one-year saver means you can’t touch your savings for at least twelve months. However, at the end of the 12 months, you’ll have accumulated interest.

“As has become popular on social media platforms such as TikTok, those looking to save as much as possible have engaged in “No Spend” months, whereby the challenge is to curb impulsive spending for an entire month and instead only focussing on spending when it is essential.

“It is worth trying to challenge yourself with this type of trend. Or, if you think this may be too difficult, it may be worth cutting something out of your spending that you feel you can’t live without, but definitely can, such as takeaway coffees or meal deal lunches for work.”

December 16th, 2024 | Andrew Hagger | News

Car buyers in the Mid Ulster area of Northern Ireland will pay an average of £689 extra tax next year as a result of Vehicle Excise Duty (VED) rises, a new study finds.[1] The increased first-year rates, also known as showroom tax, were announced in the Autumn Budget and are due to arrive in April next year.

While location doesn’t directly impact the amount of tax charged, the study shows which areas will be most affected by the changes due to the cars bought there. VED rates are based on CO2 output, meaning drivers of heavily-polluting cars will pay the most when the changes come into effect. Based on this, Mid Ulster motorists will see the highest average increase per car due to the rise.

The research comes from Go.Compare car insurance, which reviewed Department for Transport figures on the number of new private vehicles registered in each region in the first half of the 2024 tax year. It applied the existing and upcoming first-year rates for VED to these vehicles to estimate how much more new car buyers will pay next year in each part of the UK, if buying habits stay the same.

Mid Ulster wasn’t the only part of Northern Ireland that ranked in the most impacted areas. Fermanagh and Omagh, as well as Newry, Mourne and Down also placed in the top 10. The study says that if 2024 trends continue, drivers in these locations face average VED increases of £502 and £494 respectively.

Mid Ulster was also one of only two places facing an average rise above £600. The other is inner London, where the average tax paid is set to rise by £625 – almost £100 per car more than the next most impacted area.

This suggests that drivers in Inner London are opting for vehicles which emit some of the highest CO2 levels, despite the city operating an ultra-low emissions zone. Based on this, drivers may be choosing to pay the ULEZ charge rather than opt for a greener car.

These figures were also reflected on a regional level, as London and Northern Ireland are the two regions where the average cost per car is set to rise the most. Across all of London, the average tax increase will be £475 per car, while those in Northern Ireland will pay an extra £454.

In contrast, drivers towards the north of the UK will be less affected due to the vehicles they buy. Motorists in the North East will see the lowest VED rise, working out as an extra £384 per car on average. Welsh and Scottish drivers will also notice some of the lowest fees, with increases per car of just £397 and £404 respectively.

Tom Banks, car insurance expert at Go.Compare, said: “The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025. If you live in a region where buyers tend to go for high CO2 cars, then drivers in your area will be the most impacted by the rise. But, if you’re worried about how the changes will affect you, there are ways to minimise the impact on your finances.

“For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands. If you can’t purchase a suitable hybrid or EV, you could opt for a nearly new motor instead. This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax.

“Otherwise, see if there are any other ways you can reduce your motoring spending to make up for the increased tax costs. For example, comparing car insurance policies might allow you to find a provider that offers the same level of cover for a lower price, and driving in a way that minimises your fuel usage could help to reduce costs further.”

To find out more about the rise in first-year rates for VED, go to Go.Compare’s website.

December 12th, 2024 | Andrew Hagger | News

Over half (57%) of UK adults don’t have a will in place, including a third (32%) of over-55s, reveals new independent research* conducted on behalf of Handelsbanken Wealth & Asset Management, highlighting a critical gap in estate planning across the nation.

Handelsbanken Wealth & Asset Management’s study shows that this figure rises to four out of five (79%) of 18-34 year-olds, putting families at risk of undue stress, potential legal disputes, and unintended inheritance and guardianship outcomes, should someone die intestate.

A lack of knowledge around how to put a will in place was cited as the main driver for people not having one – selected by 11% of respondents – followed by concerns around the expense involved (10%), and the thought of it causing too much emotional discomfort (6%).

The research also suggests a level of unease around discussing wills with their family – another potential hindrance. Just over half of Brits feel comfortable talking about their will with their partner (55%) and children (50%), with far fewer feeling able to broach the subject with their parents (17%) or siblings (20%).

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management, comments:

“While these conversations can sometimes be very difficult to have, avoiding the topic won’t make it go away. Putting a will in place can help you protect both your assets and your loved ones during a difficult time. Having an open and frank dialogue can give your family much-needed peace of mind that the right plans are being put in place.

“There are plenty of avenues people can explore for getting started. As with most areas of life, taking good, professional advice is usually a good place to begin, but there are also reputable public resources such as the government’s “Making a will” page^[1]. Whatever your approach, the outcome should be a will that best suits your needs and situation.”

The study reveals that for those who do have a will in place, the primary reason is to have control over who should receive specific assets. This was selected by over a third (36%) of respondents, followed by a desire to minimise familial disputes (25%) and life changes such as a marriage, divorce, or birth of child, prompting them to (22%).

“While it’s encouraging to see that major milestones and events are triggering people to put a will in place, it’s equally important to remember that wills should be regularly be reviewed as well, to ensure they remain both relevant and legally sound”, adds Christine Ross.

“Our research shows that over half of UK adults (53%) have no set plan to do so, and this could make them vulnerable to changing tax laws and inheritance regulations, as well as shifting family dynamics, to name just a few.”

December 12th, 2024 | Andrew Hagger | News

Ahead of the January 31st tax return deadline, Alastair Douglas, CEO of TotallyMoney urges people to act now, or risk long waiting times on hold to HMRC. Including those who’ve sold on Etsy, Ebay and Vinted:

“For many, January means tax return season. And usually, that involves getting everything in order, finding out you’re not quite sure about something, and then holding a phone to your ear while in a queue and waiting for HMRC to answer your query.

“And it’s estimated that each year, taxpayers spend around 7 million hours on hold to the tax office, with wait times peaking every January. And as the deadline approaches, time spent on hold gets longer, and in particular during the afternoon.

“So while you might not be planning on sorting out your tax return over Christmas, it might actually save you time in the long run — while making January a little less stressful. HMRC’s phonelines are only closed on Christmas Day, Boxing Day and New Years Day, and open the rest of the time. That means there’s plenty of opportunities to speak to somebody, and the chances are, not many other people will be busy sorting their finances either. So you should get through quickly.

“Although HMRC aren’t always quick to answer your calls, they can be when it comes to handing out fines for late filing. So don’t get caught out. And remember, if you’ve earned more than £1,000 by selling items on sites like Etsy, Ebay, Vintend and Depop, you’ll need to declare this and file a return too.”

#ENDS

HMRC contact centre availability (call 0303 1234 500):

December 4th, 2024 | Andrew Hagger | News

With only a few weeks until the Christmas holidays commences, parents are looking for ways to keep their kids entertained without breaking the bank.

Hodge reveals the potential costs of family outings and shares tips on having fun while staying in budget.

Christie Cook, managing director of retail at Hodge said:

“The Christmas break is a great opportunity for families to enjoy both indoor and outdoor activities.

“However, with the current economic climate, it can be challenging to afford regular days out. Mixing more affordable home-based activities with occasional outings can help balance the costs.”

Cost breakdown of popular family activities over six-week holiday

Based on a family of four (2 adults, 2 children aged 2-15 years, except Go Karting for ages 8-12 children and 13+ adults)

Three budgeting tips from Christie Cook, Head of Retail at Hodge Bank:

Board game nights

“Spend time playing classic board games like Scrabble, Guess Who, or Kerplunk. These games not only entertain but also encourage family bonding at home without hefty costs.”

Budget-friendly movie nights

“Skip the expensive cinema tickets and create your own movie night at home. Subscribe to streaming services like Disney+ or Netflix (monthly fees range from £7.99 to £10.99) or rent films on platforms like Rakuten. Enhance the experience by buying cinema-style snacks from the supermarket, such as popcorn, sweets and nachos. This not only saves money but also means you can enjoy a film in your pyjamas, in the comfort of your own home.”

Local events

“Use platforms like Facebook Events to discover free or low-cost local events. From community fairs to cultural festivals, these events often provide entertainment options that are budget-friendly and enjoyable for the whole family.”

November 28th, 2024 | Andrew Hagger | News

As Brits prime themselves to take advantage of Black Friday broadband offers, new research from Go.Compare broadband has revealed how we choose our Wi-Fi providers – and for more than two thirds of people, it’s the money that matters most.*

The comparison site asked over 2,000 people for their insight into how they choose an internet provider – weighing up the value of speed, customer reviews, area coverage and more – and found that cost is by far and away the most important factor. 68% of people said price would be a determining factor affecting their decision, while half of people (50%) said their choice would depend on the average speed offered.

Just under a third of people (31%) said that coverage in the area was an important consideration, while less than one in ten (9%) would consider customer reviews as a top factor.

Matthew Sanders, Go.Compare broadband spokesperson, said: “With the cost-of-living still at an all-time high, it’s no surprise that price is a top consideration when it comes to Brits choosing their broadband package.

“If you are nearing the end of your broadband contract, we always suggest taking a look at the offers out there – particularly as we approach Black Friday, when you may be able to get an even better deal.

“In the run-up to Black Friday, we see a 33% increase in people purchasing broadband deals so it’s worth noting how important it is to compare the broadband packages out there.** Shopping around on a comparison site can help you compare broadband packages side by side and make it easier to spot which one offers the best service for you – at the right price.

“While our research shows that less than a third of people consider the area coverage as a top factor in choosing broadband, this can have a big impact on the quality of your internet connection – so make sure to do your research before you buy.

“Customer reviews were another aspect that didn’t rank highly in people’s priorities. However, detailed, recent reviews can give you an excellent insight into the level of service you’re likely to receive, so we do recommend taking a look before you make your decision.

Matthew added, “Something else to be aware of is that the price of your broadband could be subject to change – as many deals allow mid-contract price rises from your provider. So, if cost is an important factor to you, it may be wise to opt for a broadband deal that guarantees a fixed price.

“It’s also worth noting that haggling on your broadband deal could be well worth your time – you could negotiate a lower price on your contract, or even get your provider to throw in additional perks for free.

“To learn all about haggling and how you can save money on your broadband, visit: https://www.gocompare.com/broadband/how-to-haggle-and-get-the-best-deals/.”

For exclusive broadband offers, visit: https://www.gocompare.com/broadband/.

November 27th, 2024 | Andrew Hagger | News

With almost a third of UK adults feeling negatively about their financial situation, the conversation around financial wellbeing is more relevant than ever. Credit card brand Aqua has conducted a new piece of research, surveying over 5,000 UK residents to explore the prevalence of bad credit scores and financial mistakes across the nation, and to reveal what people’s biggest financial mistakes and learnings are. Aqua’s Commercial Director, Sharvan Selvam, has also shared insights into how people can start to take steps to improve their credit scores and overall financial wellbeing.

You can find the full research here: https://www.aquacard.co.uk/building-better-credit/financial-learnings-and-mistakes

Over one in 10 Brits feel ‘uncertain’ about their current financial situation

Despite the tricky financial landscape the UK is currently facing, Aqua’s research found that people predominantly still have positive emotions towards their financial situations with 15% of survey respondents expressing they feel ‘content’.

However, despite these positive sentiments, some of the UK population still feel unsure about their finances. The survey revealed that just over one in 10 (11%) Brits feel ‘uncertain’ about their current financial situation, and a further 9% feel ‘anxious’.

For Brits already feeling uncertain about their finances, having a low credit score can add to the strain. Among those with a bad credit score, 26% said it causes them stress, making it the most common response. However, feelings of frustration, anxiety, and concerns about the future are shared by 21% of respondents, highlighting the challenges many face. While these emotions are common, they also reflect a desire for greater financial stability and control.

However, a bad credit score doesn’t have to be a lasting challenge, and there are simple ways to improve it. After boosting their credit score, many Brits say they feel a lot more positive. The most common reaction is relief (35%), followed by feeling more in control (32%). Sharvan Selvam, Commercial Director at Aqua, says, “Improving your credit score might not always be top of mind, but it plays an important role in helping you reduce financial stress.”

Sharvan continues, “It’s incredibly encouraging to see so many people feeling more empowered and confident as a result of taking steps to boost their credit score, and that nearly a quarter of those we surveyed expressed a sense of pride in doing so. Building a stronger credit score is possible with small steps such as making credit repayments on time, which can be made easier by setting up a direct debit or repayment reminders.”

Only 21% of adults say they’ve never made a financial mistake, and impulsive purchases are found to be the most common mistake

With only 21% of UK adults claiming they’ve never made a financial mistake, it is evident that most people encounter some form of challenge at some point when managing their money.

Among those who admit to making a financial error, impulse buys appear to be the most common pitfall, with one in five falling into this financial trap. This can often lead people to spend outside of their means, and with 17% admitting to this mistake.

It’s not just overspending that is leaving people vulnerable – under-saving is almost as common. In fact, 16% of people admit their biggest mistake is not saving regularly enough.

November 25th, 2024 | Andrew Hagger | News

MyVoucherCodes money-saving expert, Sarah-Jane Outten, explains how she saves money by wrapping up her Christmas shopping early.

Overspending is easy at Christmas, but there are ways to avoid it and shopping early is one of those ways. Take a look at my helpful tips that will save you a few pounds this Christmas.

• Black Friday falls on the 29th of November this year, closely followed by Cyber Monday on the 2nd of December. It’s the perfect time to chip away at the kid’s Christmas It feels like Black Friday all month but retailers will be slashing prices on the 29th. Grab some bargains! However, Black Friday isn’t always the best price, check with price comparison sites like CamelCamelCamel, Price Runner, Rakuten and Google Shopping.

• Toys sales are on the Even though lots of kids have gone digital, toys are always popular. If your little one is asking Santa to bring a toy that’s a big hit this year, get in early! The most popular toys of the year often sell fast, don’t bust a gut trying to find it on Christmas Eve! Retailers want to boost profits as early as possible, so the best deals are available now.

• Buyer’s regret is Nothing is worse than leaving Christmas shopping to the last minute only to realise the gift you need is sold out or won’t be delivered in time. And the chances are the closer you get to Christmas the higher the price.

• Avoid expensive delivery charges. Leaving purchases last minute means spending extra on delivery. If you aren’t in a hurry you can afford to choose the cheaper and free delivery options. Make sure those pressies arrive before Santa!

• Festive foodies need to shop early this year. The supermarkets are laden with Christmas treats and booze right now, at special prices. From Baileys on Clubcard prices to discounted selection boxes and stocking As Christmas approaches, some of these offers get removed, and deals aren’t usually as good. Stock up in advance, but make sure you hide the goodies, even if that’s just from yourself!

• Ask for a gift receipt. Just because you are getting ahead of time, it doesn’t mean you won’t be able to return Ask the retailer for a gift receipt and you should be good to return your goods after Christmas.

• Use a discount code. There are excellent discount codes available right now. Don’t assume the best discount codes will available closer to MyVoucherCodes is seeing excellent discount codes from top retailers such as GHD, Boots, Goldsmiths, and Adidas that are available right now.

And finally, it’s not just money that’s worth saving – it’s your sanity too! As we roll into December the shops will become incredibly busy. Avoid the long queues and the hot and sweaty fights over the last tin of festive biscuits. There’s no need to scramble for the last parking spot, stand on the bus or risk a rail replacement service. You can have everything wrapped up by the start of December and all you need to do is enjoy a mulled wine with your favourite Christmas movie.

November 25th, 2024 | Andrew Hagger | News

A new study has revealed that most Brits overestimate their broadband needs, leaving them overpaying for packages. One-third (34%) of internet users pay for speeds in excess of 150Mbps, but just a fifth (21%) actually needs broadband as fast as this.

The research states that 50 megabits per second (Mbps) is the broadband speed most users require, suitable for almost half (46%) of Brits. Users are now being encouraged to check the speeds that work for them to avoid overpaying for their internet or struggling with lagging loading times.

The figures come from Go.Compare, which surveyed the public on how they use their broadband and the speeds they pay for. It used this to work out what speeds they actually need.

The comparison site says that most Brits (one-fifth) pay between £25 and £29 per month for their broadband, while slightly fewer (16%) spend just under this, at £20 to £24 per month.[1] However, a similar percentage (15%) said their package falls in the highest price bracket of £40 or higher, whereas just 1% said their price is in the lowest range of less than £10.

Older users are the most likely to pay these higher prices. According to the study, 18% of those aged 40 to 54 spend over £39 per month on their broadband, as well as 17% of those aged over 54. In contrast, just 7% of under-25s pay these prices. Younger Brits are more likely to pay the least for their broadband, with 5% of this age group spending under £10 per month, compared to only 1.5% of over 54s.

This follows the news that 9.5 million UK households are overpaying for broadband, equivalent to just over a third (34%) of all broadband users.[2] This translates to a jaw-dropping £637 million overspent on unneeded speeds each year.

Matt Sanders, a broadband expert at Go.Compare, says: “Our latest research suggests that a large chunk of the country is spending more than it needs to on broadband, which is a real kick in the teeth when times are so tight.

“Everyone’s broadband needs are different, so it can be difficult to know what speeds you actually need. The key factors to keep in mind are the number of people in your household and what you tend to use your broadband for. Certain activities like online gaming and streaming 4K videos need faster speeds to run smoothly, and these speeds will be diluted if multiple devices are using the internet at once.

“So, if you live alone and only use the internet for general browsing like emails and shopping, you should be able to manage on relatively slow speeds. But, if your household is a family of four with multiple devices on the go, you might need to get faster speeds so that everyone can use the internet at once without being slowed down.”

More information on the different speeds needed for broadband users can be found on Go.Compare’s website.