finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Retiring is the thing that all of us look forward to, in one way or another. Whether we have intentions of kicking back poolside with bottomless cocktails or simply indulging our time in a hobby we’ve long overlooked, life after work looks to be a well-deserved reward. However, not many of us are planning for retirement properly. What does it mean to make the money work when it comes to retirement?

Your Financial Picture

To set the stage for your retirement planning, you’ll first need to gain an understanding of your financial situation at present. This understanding needs to be comprehensive, too; where most personal budget spreadsheets start and stop with monthly income and outgoings, this undertaking needs to cover everything. For instance, do you have a mortgage? If so, how much do you have left to pay before you own your home outright? Do you have a pension? If so, what is in it, and can you increase the amount you contribute?

Questions like these will allow you to get a grip on your current position, and the liabilities you may still need to consider when it comes to retirement. Your planning, then, should also include eventual expenses like insurance. Over 50 life insurance is a smart purchase, and one which can protect your loved ones particularly if your assets are slim or your mortgage is still outstanding. The purpose of all this is to get an idea of what you’ll need each month to live comfortably after retiring – and if you can retire in your present situation.

Your Ideal Retirement

Having established your present situation, and worked out what the bare minimum is that you’ll need each week after retirement, you can now turn your thoughts to more aspirational things – particularly, the retirement you’d like to enjoy. 

You may have some base expectations for quality of life after you finish work, even if simply an extension of your present living standards. You might also have loftier aspirations of post-work hobbies and holidays, whether long-term trips abroad or investment in endeavours you enjoy. If you can attach even a vague financial value to all of these, you can set yourself a tangible financial target – and a milestone to meet.

Making Your Money Work

The challenge, then, is achieving your ideal retirement from your present financial situation. How exactly can you make the money work? The first, most obvious and most impactful change you can make is to maximise your pension contributions, no matter how close to retirement you are. Doing so is equivalent to ‘free money’ in the form of tax relief, meaning the earlier you do so the more you can benefit.

If you already have money saved up elsewhere, you might also take some time to consider different options for maximising returns. For instance, larger sums of money could be placed in a global ETF, enabling you to receive capital gains in line with market movements (and often above conventional bank interest rates). Similarly, ISAs can enable you to earn high levels of interest tax-free – in turn meaning more money to retire on.

You do not have to be a psychology expert to know that finances affect people's feelings. Every person who has been through challenging financial situations knows first-hand how mentally draining being unable to pay bills can be. 

This mental pressure, at some point, starts to manifest in a decline in a person's mental and physical health, leading to a vicious cycle of poor financial well-being and declining health. This guide looks into the interconnectedness of financial wellness and physical health and what you can do to maintain this balance.

What Is Financial Well-Being?

Financial well-being is a holistic term that refers to a person's relationship with money and how it impacts their life. While earnings are a critical part of it, they are not everything. It also encompasses how a person thinks and manages their finances. 

Achieving financial well-being thus means you are not constantly worrying about money but have a clear understanding of how much is coming in and a definite plan for your expenditures and savings. 

Effect of Financial Wellness on Mental Health

Before financial issues impact your physical health, they will affect your mental health. According to experts, money-related stress tends to be chronic and are the leading stressors for most people. 

The opposite is also true. Achieving financial wellness means you feel more in control of your life and have little to no stress around money issues. It also means having a positive outlook on life, creating a vicious cycle of excellent decision-making and better financial health.

Effect of Financial Wellness on Physical Health

Higher levels of financial stress will ultimately manifest in poor physical health. It contributes to poor health in two ways: the body gives in to mental stress, and lack of access to medical services due to financial challenges contributes to deteriorating health.

Medical conditions that could result from too much mental pressure include headaches and migraines, high blood pressure, digestive issues, insomnia, heart arrhythmia, and a weakened immune system. 

It can also lead to lifestyle conditions linked to poor coping habits. For example, stress can lead to drug use or alcohol abuse, which ultimately leads to poor health. The opposite is also true.

The positive outlook in life a person has when in a state of financial wellness triggers the release of feel-good hormones, which contribute positively towards good health. It also means they can access health services when needed.

How to Improve Your Financial Wellness

The road to financial wellness is not straight for people building their wealth from the bottom up. So there, you can expect to go through seasons where your finances are on the rocks. You can take several steps to improve your financial wellness in such a situation such as:

Leverage Tax Breaks

You can explore the many tax breaks extended by the federal government to save some dollars. These savings can go a long way when you look at them in the long run. 

You can even explore tax benefits that have a direct positive impact on health. For example, supplements, exercise, and supplements offered by TrueMed can count as HSA and FSA spending, which is tax-deductible. 

Get Financially Literate

Financial wellness is not about how much a person makes. It is about how they handle and manage the little or the much they have, so if you have major issues with money management, it may be time for you to take financial literacy classes. 

Spending money on financial literacy in a financial crisis can feel like the antithesis of your goal. However, you will discover with time that it is the best thing you can do for yourself as it can help solve a chronic problem. It stays with you for the rest of your life. 

Car accident loans provide a financial lifeline to individuals awaiting settlement payouts after being involved in a vehicular accident. These loans offer immediate cash to cover living expenses, medical bills, and other costs that pile up while the injured party is unable to work and the legal process unfolds. This type of funding is non-recourse, meaning that if the borrower does not win their lawsuit, they are not obligated to repay the loan.

Securing car accidents lawsuit funding is a process that typically involves the plaintiff, their attorney, and the lending company. The lender evaluates the strength of the case and the expected settlement amount before approving the loan. This funding option is appealing because it allows plaintiffs to manage their finances during what is often a challenging and drawn-out legal process.

It is essential for individuals considering a car accident loan to understand the terms and conditions involved thoroughly. Interest rates and fees can vary widely between lenders, which can significantly affect the amount owed at the time of settlement. Plaintiffs should carefully weigh the pros and cons of accepting this type of financial help, and consult with their attorney to make an informed decision.

Understanding Car Accident Loans

Car accident loans provide financial assistance to plaintiffs awaiting settlements. They are a form of lawsuit funding specific to car accident cases.

Basic Concepts of Car Accident Loans

Car accident loans are not traditional loans but a cash advance against the expected settlement from a car accident lawsuit. Unlike personal loans from a bank, the borrower is not obligated to repay the advance if they lose their lawsuit. The amount borrowed is contingent upon the projected settlement of their legal claim.

Interest Rates: Providers charge variable interest rates, often determined by the risk assessment of the case. Payback Structure: Repayment is typically made in a single lump sum from the settlement or judgment award.

Determining Loan Eligibility

Eligibility for a car accident loan depends on the strength of the plaintiff's case. The lender will consider the following:

After evaluating these factors, a lawsuit funding company decides whether to approve the advance.

Loan Application Process

The process for obtaining a car accident loan involves several steps:

  1. Application: The plaintiff or their attorney applies to the lawsuit funding company.
  2. Review: Documentation related to the car accident claim, such as police reports, medical records, and insurance information, is reviewed.
  3. Approval and Funding: If approved, the funding company provides a cash advance that the applicant can use for personal expenses.

It's crucial that borrowers review all terms and conditions of the loan carefully, including the repayment structure and any associated fees, to ensure they are making an informed decision.

Maximizing the Benefits of Car Accident Loans

When individuals secure car accident loans, they unlock financial support during litigation. Careful management of these funds and strategic repayment can optimize financial stability throughout the legal process.

Effective Management of Loan Funds

The judicious handling of loan funds is vital to ensure they are used in the most beneficial way. It is essential to prioritize essential expenses related to the accident, such as medical bills and vehicle repair costs. A structured budget outlining all expenses should be created to track the use of funds effectively. Sticking strictly to the budget ensures that the lawsuit funding is maximally utilized in supporting necessities associated with the car accident.

Repayment Strategies

Concerning repayment, those who have obtained car accident loans should consider the terms and potential outcomes of their legal case. A clear repayment plan should be in place in anticipation of different scenarios. Repayment should align with the receipt of settlement or judgment funds, and the borrower should be aware of the interest rates and fees applied to their loan balance. These factors are critical for financial planning to avoid undue financial burden after case resolution.

Borrowers must discuss repayment terms with the funding company to fully understand their obligations. Negotiating a repayment strategy that considers the expected timeline of the lawsuit can also reduce financial pressure.

While it’s great that you might be able to file a personal injury claim after being injured in an accident, during this time of uncertainty, you’re sure to have several financial concerns. And that’s the last thing you need when you’re recovering – physically and mentally – from your injury. But medical expenses can pile up and pay cheques could halt. Plus, navigating the legal labyrinth could feel like trying to decipher an alien language.

Securing your fiscal future after being injured in an accident is not just prudent, it's paramount.

Common Personal Injuries

Personal injuries can happen anywhere and anytime. Common ones include:

By ensuring you stay vigilant – especially when engaging in activities like sports and driving – you can lower your risk of being injured. 

But if you find yourself being injured in an accident that isn’t your fault, make sure you’re aware of the potential costs regarding filing a personal injury claim. 

Potential Costs for Personal Injury Claims

A personal injury claim might resemble a financial iceberg—what's visible above the surface often belies the bulk of hidden expenses beneath. 

Legal Fees: The Price of Advocacy

The quest for justice through legal representation isn't without its price tag. Your champion in the courtroom comes at a cost—attorneys' fees, which typically operate on a contingency basis, claiming a percentage of your awarded compensation. Factor in additional outlays for court filings, deposition costs, expert witnesses, and administrative expenses; it becomes vital to understand fee structures ahead of time.

Medical Bills: Navigating the Costly Path to Recovery

Post-accident medical care often follows an ascending cost trajectory that can escalate quickly from emergency services to long-term rehabilitation. Without adequate insurance coverage or a successful claim outcome, these charges can deplete savings with surgical precision.

Lost Wages: The Invisible Drain on Resources

Time spent away from work nursing injuries means pay cheques may dwindle or disappear entirely – an invisible yet palpable drain on resources that amplifies stress and jeopardizes financial security during recovery periods. It's not just immediate income loss but potential future earnings that hang in the balance.

Five Strategies for Managing Those Financial Challenges Effectively

The initial shock of a personal injury is often succeeded by the daunting realization of its fiscal impact. However, armour against these financial challenges can be forged with strategies rooted in foresight and careful planning.

So, here are five strategies to safeguard your financial future.

1. Maximise Your Insurance Understanding

A robust grasp of your insurance policy—knowing what it covers and what it doesn't—is akin to having a detailed map when you're lost in the woods. It’s crucial to review your coverage details and exclusions with your insurer before the unforeseen strikes, ensuring policy adequacy for potential mishaps.

For instance, disability insurance could serve as a bulwark against income loss due to injury-induced work inability. It's prudent to consider policies that cover both short-term gaps and long-term incapacities.

2. Choose Expert Legal Guidance

Navigating legal waters often requires a seasoned captain at the helm. Employing adept counsel, such as RVA Personal Injury Lawyers, can not only clarify complexities but also heighten chances for claim success.

3. Craft a Budget Blueprint

Managing finances during this turbulent time calls for meticulous budgeting. Categorize expenses and prioritize needs over wants; an adjusted spending plan can keep financial stability within reach even when income streams are disrupted.

4. Be Prepared with an Emergency Fund

Should the tides turn unfavourably, a well-stocked emergency fund offers a financial life raft. This reserve acts as a buffer, allowing you to cover unexpected costs without sinking into debt.

5. Explore Supplementary Income Options

Consider alternative income avenues that accommodate recovery limitations—be it remote work opportunities or passive income sources like renting out property space. These options provide an economic buffer while recuperative efforts remain primary.

Some people are just better with money. Now, when you say that someone is good with money, what most people imagine is some sort of a financial wizard. In reality, it just means that this person knows a thing or two about financial instruments that the majority of people are using daily. To show you exactly what we mean, here are four things you can learn to become “better with money” yourself. 

1. How does credit score work?

Your credit score will determine the terms of your loan. It may determine how much money you’re approved of, what your APR is, and how long you have to repay it. The problem is that the majority of people don’t think about their credit score until they need a loan. Then, they find themselves in a peculiar situation where they ruin their credit score unintentionally. 

They usually don’t have collateral to obtain a secured loan, which means that they’re in an awkward position where they have to go with P2P platforms or payday loans, both of which have pretty bad APR.

To avoid this, try to learn how credit score works and start improving it before you ever need it.

There are five parameters, not all of which are intuitive.

Now that you understand your credit score, you can start working to improve it, already. 

2. Why you’re never too poor to invest?

Sure, some of you might believe yourselves to be too poor to even pay attention; however, this is never the case. One of the biggest obstacles in the world of investing is the mental blockade about whether you have enough money to start investing. 

It goes something like this - imagine wanting to create a passive stream of revenue. The first thing that pops to mind is buying a rental apartment. Still, you don’t have enough money to buy an entire apartment, which makes you quit on the whole plan. We’re not just talking about the idea of buying a rental property but the idea of getting passive income altogether. 

The same goes for putting money into your retirement fund. It’s better to put in just $100 monthly during your 20s than not putting in anything at all, believing that you have time or that this $100 won’t make a difference.

Another mental barrier is the idea that you’re investing too little to make any real difference. This is just outright not true. Sure, you won’t get rich off major company shares, but there are different assets out there. For instance, you can easily find crypto presales with 10x potential, which means that you can return your investment tenfold. 

The key thing is that you start investing and develop a habit of investing. The sooner you start, the better, and you need to keep in mind that everything makes a difference. Stop making excuses.

3. Figuring out how your credit card works

The majority of credit card users fall under one of two categories:

The worst part of belonging to either of these groups is the fact that you’re not using your credit card to its full potential. Depending on how you use it, a credit card can be an asset or a liability. You’re the one who’ll decide which direction your credit card use will take.

To get the most out of your credit card, you need to learn a few tricks. For instance, if you travel a lot, you might want to pick a card with a lot of travel rewards. On the other hand, someone who doesn’t travel that much could pick a card that offers cashback on various subscriptions.

The majority of these credit card companies are trying hard to attract and retain their users, which is why they often sweeten the pot with an extra benefit. However, these benefits vary. The key thing lies in learning how to master the reward points game. If you can manage that, there’s so much financial value to gain.

The key thing to remember is that a credit card is a financial instrument. If you can’t use it right, this doesn’t mean that the instrument itself is faulty. 

4. Automating and gamifying your savings

For a lot of people, the question of mental fortitude is quite serious. Namely, you need to understand that transcending your programming and seeing short-term sacrifices as necessary doesn’t come as easy for everyone. 

The problem is that these steps are sometimes so small that you’ll often feel like you’re standing in place or barely moving at all. So, what harm is there in taking some much-needed break? Just think about it: if the amount of money you can save this month is so minuscule, do you need to do it this month? Can’t you just postpone it until the next month and save double then? We all know it’s not how this works.

The problem is that you’ll feel this kind of temptation all the time, which is why you need a way around it.

There are two solutions to this problem:

 Gamify your savings: The first thing you could try to do is gamify all your savings. This means turning it into a game. A swear jar is the perfect example of this. You set aside some money every time someone swears. Another smart idea is to start a 52-week saving plan, where you set aside some money every week. With each subsequent week, you add n+1 amount of money into the jar.

Automate your savings: It’s even easier to gamify your savings. Just automate your platform to set aside a specific amount every X day of the month (when you know you’ll have the money). This way, you take away some of your agency to avoid scenarios in which you need to show restraint.

Both methods are easy and dependable. 

Boosting your financial prowess has never been easier

By learning just these four things, you can easily improve your finances. The truth is that while boosting financial literacy takes a lifetime, these few tips can make a difference when you just apply the fundamentals. For instance, automate savings and repayments (to boost credit score), start investing every month, and learn what your credit card is good for. This will already make a world of difference. 

Starting a family can be a momentous decision, and naturally, there is a lot more to consider than just the financial aspects alone. Even so, perceived financial barriers do hold many of us back from starting our family when we’d ideally like to, opting instead to work for a few more years and put together a bigger safety net for you, your partner, and your future children to fall back on if it’s needed. 

So how can you develop and maintain spend-savvy strategies as you prepare to start a family or whilst your children are still in their early developmental years? In this article, we aim to position you and your family for financial success so you can build healthy habits and inspire your kids to do the same as they grow older. 

Budget for your finances (i.e. mortgages and loans)

All families can expect to take on a certain amount of debt. Your major sources of debt will take one of two forms: a home loan, and a car loan. The home loan is self-explanatory, so let’s focus on the car loan. 

You’ll need a car to get your family around, whether for school, work or extracurricular activities. For big or even growing families in particular, investing in a reliable people mover is simply non-negotiable. And when you consider the improved safety ratings on newer vehicles, splurging on a new car feels extra sensible, to say the very least.

As you’d expect, car loans allow you to make smaller payments in either monthly or fortnightly sums. A complementary benefit of this type of loan is it typically improves your credit score for future financial decisions. In other words, taking out a car loan and managing it well may help you apply for larger loans (like a home loan) later down the line.

New car loans are typically available for vehicles that are up to three years old. If you’re looking to buy a secondhand vehicle, however, there are even used car loan options that are on offer for older models of up to twenty years old.

If you want to reduce your carbon footprint, you can even apply for a green car loan, a pure electric vehicle that reduces carbon emissions and cuts running costs. 

Consider making voluntary superannuation contributions

If you’re saving up for your pension by investing with a superannuation fund, then consider making top-up contributions wherever possible. Top-up contributions are contributions that are made to your super balance. This is especially a good idea if you’re working part-time, casual/contract or taking leave from the workforce. 

The benefit of investing in your superannuation now is simply that a greater investment today will naturally grow ever larger tomorrow. Now compound that with the next thirty-odd years, and you’ll have a nice little nest egg waiting for you come your retirement years. Small savings make a big difference, especially when that difference can mean increasing your retirement savings in the long haul. It might feel like a long, long time away, but starting early can certainly do no harm.

Create a family financial plan

Financial planning is all about making your goals as a family both actionable and achievable. If you have your hopes set on owning a home one day, or if you’re considering starting a business or taking a financial leap, family financial planning is an essential tool that will mark the steps you need to take to get there. This type of planning is all about setting goals and seeing them through. 

You can start by calculating your family budget so you’re on top of your expenses. Then determine what your financial goals are as a family - in particular, think about your long-term family goals, such as saving for university funds or paying off debt. Then allocate your goals to a percentage metric, such as the 50-30-20 rule or another money-saving strategy, and divide your savings amongst these percentages. 

Build an emergency fund

Following on from the previous tip, building up an emergency fund should be a priority for all new and expectant parents. This fund accounts for any unprecedented, unruly events, such as property damage or medical emergencies. This will save you from financial stress, or even tripping into debt as a result.

Thankfully, most diligent lifelong savers should already have a sizable emergency fund to their name. If that’s the case, then all you need to do is combine your assets with your partner to make sure that your family has access to those collective funds.

Once the funds have been combined, consider keeping your emergency fund in a separate savings account. That way, you can accrue interest on your fund and it can thus grow itself – a game changer for busy parents! You don’t need to fork out hundreds of dollars, either. Start small and build your wealth over time. 

Invest in insurance 

Insurance is important and should be considered and evaluated by every family to protect loved ones and their financial assets. 

There are different types of insurance. Below, we’ve compiled a list: 

Manage your debt

Although it’s easy to procrastinate or forget about handling debt, managing your debt will lift the financial weight from your shoulders. Debt is a common challenge for young families, but it doesn't have to be a life-long plough through the trenches. 

When managing debt, ensure that you prioritise paying off high-interest debt (anything above the average interest rates for mortgages and student loans, for example) such as debt from a credit card. By eliminating the beast of your debt, you’re minimising interest costs. 

Assess your existing loans and explore refinancing options. This will make all the difference between paying higher or lower interest rates, the former of which could burden you with hundreds of thousands of dollars. 

~

It is a fact of life that families must navigate the highs and lows of financial stability. By implementing small daily financial habits into your family’s life, not only are you advocating for your family’s financial independence, but you’re teaching your children to do the same. 

The Spring Budget is here! The Chancellor of the Exchequer Jeremy Hunt has outlined the Spring Budget and the highlights are outlined here.

Introduction

Mr Hunt started by addressing the "tragic loss of life in Israel and Gaza". And announces a £1 million memorial to be created in honour of fallen Muslims who died in both World Wars.

He highlighted the economic difficulties of the last 16 years from the 2008 financial market crashes.

Inflation

He notes the efforts they've made over the last 2-3 years will lead to more growth, more jobs and higher wages. And after some jibes attacking Labour's economic plans he follows up with the OBRs reporting that inflation which was at 11%, it is now at 4%. Today's forecast suggests that inflation will fall under 2% earlier than expected within the next few months.

Cost of Living Support

The Household Support Fund will be extended beyond 31 March and continue for 6 months.

In Autumn he froze alcohol duty until August 2024. He has now extended the alcohol duty freeze to Feb 2025.

The Fuel Duty cut has been maintained and frozen for another 6 months.

He also noted that one of the focuses today is on those falling into debt. He therefore has increased the repayment period for loans to cover household emergencies from 12 months to 24 months and an end to £90 charges for debt relief orders.

Debt & Deficit

Hunt then noted that there is no growth without solid finances. Highlights cutting deficit over last 14 years "by 80% between 2010 and 2019", amounting to £370bn they could then provide during the Covid-19 pandemic.

He says that the focus should be on reducing debt instead of borrowing. OBR announces debt will fall over the next 5 years. He says that today's forecasts show debt will fall to below to 94% by 2028 and 2029, down from over 100%.

He says that UK continues to have the lowest national debt in the G7, lower than Japan, France and the United States.

Turning to growth he notes that the OBR expects the economy to grow by 0.8% this year and 1.9% next year which is 0.5% higher than their autumn forecast. He adds that this is forecasted to continue at this level until 2027.

British ISA

He then announces the creation of a “British” ISA in the form of an extra £5,000 tax-free allowance for the public to invest exclusively in the UK.

Regional Investment

He then announces a large regional investment package in the North West a "North-East trailblazer devolution deal", a package worth over £100m.

He then announces further regional funding , and announces that he has allocated £188mfor projects in Sheffield, Blackpool and Liverpool. as well as £242min Barking Riverside and Canary Wharf.

VAT & Business investment

Hunt also increases the threshold for VAT registration will go up from £85,000 to £90,000.

Now moving to business investment he notes that "Business investment has risen from an average of 9.3% of GDP under Labour to 9.9% under the Conservatives. This year it will be 10.6% of GDP – generating £30bn more in business investment than if it had continued at Labour levels. And it is still going up," he says.

Energy

The secretary for energy security and net zero is investing up to £120m more to the Green Industries Growth Accelerator,

This is to build supply chains for new technology such as offshore wind and carbon capture.

Hunt also announces £270 million for advanced manufacturing industries, to fund car and space innovation.

Creative Industries

The chancellor confirms the Autumn Statement announcement that the rate of tax credit available to the industry will rise by 5% and an 80% cap for visual effects costs will be removed.

Hunt ensures that the tax reliefs just mentioned will become "permanent at 45% for touring and orchestral productions". For non-touring productions that relief will be one of 40%.

Medical Research, Healthcare & NHS

Hunt turns his attention to medical research. He is proposing an additional £45m investment with £3m put into cancer research.

He announces a brand new investment in to life sciences company AstraZeneca.

Hunt also announces an additional 650m investment in the Cambridge Biomedical Campus and a new vaccine manufacturing hub in Liverpool.

Childcare Plan

Hunt discusses the government's plans to address working vacancies and how to fill these gaps, using this to discuss their childcare plan. Previously, it was expanded to 30-hour a week of free childcare.

He announces a guarantee on the rates that will be paid to childcare providers to deliver the government's landmark offer for children over nine months old for the next two years.

Public Sector Productivity Plan

The investment needed to modernise NHS IT systems will cost £3.4bn - but will unlock £35bn of savings.

"And as a result of this funding, all hospitals will use electronic patient records, making the NHS the largest digitally integrated healthcare system in the world," he adds.

Smoking & Vaping Duties

Hunt has introduced a new levy on vaping.

There will also be a one-off increase in tobacco duty.

Air Passenger Duty

The government is increasing the Air Passenger Duty (APD) for business class travellers, Hunt announces.

Housing Tax Reforms

The chancellor says he will scrap tax breaks which make it more profitable for second homeowners to let out their properties to holiday makers as opposed to long-term tenants.

Hunt then announced that stamp duty relief for people buying more than one dwelling is being scrapped as the system was being taken advantage of.

Capital Gains Tax Cut

The higher rate of property capital gains tax is to be reduced from 28% to 24%, Hunt announces. He says the move is predicted to increase revenues as there will be more transactions.

Non-Dom Tax Reform

The government will abolish the current tax system for wealthy foreign residents in the UK who have non-domiciled tax status. By reforming this Mr Hunt says it will make the system "fairer and competitive". It will be replaced with a "modern residency system".

It will raise £2.1 billion with which the Conservatives will use to cut taxes.

Child Benefit Reform

Hunt says he will be reviewing the potential for a new rule on collective household income, rather than on an individual basis, which he aims to introduce by April 2026.

To help in the short-term, he will increase the threshold from £50,000 to £60,000.

And the top of the taper at which it is withdrawn will go up to £80,000.

Half a million families will save money as a result of this.

National Insurance Tax Cut

The chancellor announces a fresh cut to National Insurance contributions for employees from 6 April.

Hunt says he will reduce the rate by a further 2p, worth around £450 a year for someone on an average salary.

 

You might borrow money from a close friend or relative, take it out of your retirement account, or dive into your savings. Getting a personal loan is another popular method of obtaining additional funds. This loan can be used for various needs, from debt consolidation to wedding financing.

Although personal loans are very common, many people are still not familiar with all their ins and outs. So, what is the benefit of obtaining a personal loan? And are there some considerations regarding them? Let's find out.

What Is a Personal Loan?

A personal loan is a lump sum deposit a borrower gets into their bank account from a bank, credit union, or online lender. Then, the money recipient needs to repay it with interest in affordable monthly payments, usually within up to 60 months.

Most personal loans are unsecured, which means you can apply for one without putting up any security. Furthermore, these loans rank among the least expensive solutions available without a set objective. To get personal loan funds at a reasonable interest rate, you must, however, have a strong credit score.

How Much Can You Borrow with a Personal Loan?

The typical personal loan amount is between $2,000 and $50,000. The exact sum an applicant can get depends on their solvency and creditworthiness, as well as the state of residency and the limitations set by the specific lender. Whether you are requesting a $20,000 or $5,000 personal loan, lenders want to know they will get their money back. Thus, loan providers base their maximum loan amount calculations on the applicant's income, credit history, and debt-to-income ratio.

Personal Loans: Pros and Cons

Knowing the major personal loans pros and cons can contribute to your pleasant borrowing experience. Learn them carefully to make the right financial decision and avoid abruptness.

Advantages of Loans for Personal Needs

The key advantages of loans for personal needs include the following:

No Specific Loan Purpose

A personal loan lender doesn't restrict you in the way you can use the loan proceeds. Thus, you can apply for a loan even if you don't know yet what you're going to spend the money on. It may be quite convenient if you need money for wedding or vacation expenditures and can't say what expense category will be covered with the borrowed amount ahead of time. Other popular personal loan uses include debt consolidation, home renovation, medical expenses, college tuition costs, and much more.

Flexibility

Personal loans can be repaid within 12 to 60 months. Feel free to choose the loan term that fits your budget. Your monthly payment will be less the longer your payback time is. Conversely, a shorter loan term will save you a lot of money on interest while also resulting in a larger payment. You can use a simple loan calculator to identify the optimal loan duration and monthly payment.

Predictability

When it comes to personal loans, there's nothing that comes as a surprise. This form of borrowing usually has fixed monthly payment amounts and interest rates. This means that the sum you pay will be the same within the whole loan life. With a predictable monthly payment, it becomes much easier for you to plan your budget.

One Lump Sum Payment

A personal loan lender will transfer the entire loan amount to your bank account in one lump sum. Thus, it becomes more convenient to finance a major purchase, cover unexpected expenses, or pay for vacation compared to a credit card or line of credit. The borrowed amount then needs to be repaid in equal monthly payments, so personal loans don't put much stress on your budget.

Credit-building Options

If you're looking for an option that will stimulate your credit score growth, a personal loan is one of them. All you need to succeed is to make consistent on-time payments. Each time you stick to your repayment schedule, a lender reports it to three major credit bureaus. This demonstrates your responsible financial behaviour. Your credit score boosts over time, increasing your chances of getting favourable interest rates on financial products in the future.

Affordable Interest Rates

Personal loan rates are typically lower than those for credit cards or short-term loans. You can get between 5.99% and 35.99%, depending on your credit score, state, loan type, and the particular lender. As of October 2023, the average personal loan rate is 11.47%. For comparison, the same figure for credit cards is 28.17%. Reduced borrowing costs allow you to save money in the long run by paying less in interest to a lender.

Higher Loan Amounts

Lenders offering personal loans usually set a higher borrowing limit compared to regular credit lines or cash advance loans. You can typically get from $2,000 to $50,000, with some options reaching $100,000. The exact maximum sum depends on your gross monthly income, credit score, and debt-to-income ratio.

Fast Funding Times (For Some)

As the lending market evolves, some personal loan companies can provide you with money in as little as one business day. Thus, a personal loan can be a great emergency solution if you deal with the right moneylender.

No Collateral Needed

In most cases, personal loans don't require collateral. This makes them safer for a borrower. Even if your financial situation changes, adding some difficulties to making your loan payments on time, you don't put any of your assets at risk.

Some Disadvantages of Personal Loans

While personal loans can be a great ally in reaching your financial goals, there are some considerations regarding them, too. First of all, personal loans usually have strict credit score requirements. Traditional lenders are more likely to offer lower interest rates to borrowers with good and excellent credit. Otherwise, you can get an interest rate of as high as 35.99% or even be denied a loan.

Also, personal loans often come with extra charges that can potentially affect their total costs. The most typical ones include late fees, prepayment penalties, and origination fees. Your loan agreement must include a detailed explanation of all rates and costs, so you should carefully read it before signing. Take extra care to read the fine print and confirm that you know exactly what you can be charged for.

Additionally, personal loans carry potential risks to your credit history. Although they can help you build credit, things can get worse, too, if you pay late or miss your payments. On top of that, personal loan lenders commonly make hard credit inquiries to evaluate your creditworthiness. Therefore, your credit score will temporarily go down by a few points after you apply for one.

Best Alternatives to Personal Loans

There's no single answer, as you're the only one who can decide what option will be the best for you. The right choice depends on your particular circumstances, credit score, and current preferences. If you're looking for an alternative to an unsecured personal loan, options like credit cards, peer-to-peer loans, 401(k) loans, and borrowing from your family can fit.

Opting for a lower interest rate or having a bad credit score? Consider secured personal loan alternatives. The most common ones include home equity loans, home equity lines of credit, and cash-out mortgage refinancing. But be cautious before obtaining a secured loan. Although with, say, a home equity loan, you can qualify for a higher loan amount at a lower rate, it also comes with the risk of losing your property.

Note: Try to avoid short-term, high-interest debt. Options like payday loans or auto title loans can be tempting due to their accessibility but should only be used as a last resort in case of small emergencies.

When Getting a Personal Loan Is a Good Idea?

Personal loans can be a perfect fit if you need to get a high amount on hand without bothering your savings account balance. It can also help you finance large purchases or obtain something that you need right away without setting the money aside. Finally, getting a personal loan can be a great idea if you want to cover other costly debts and reduce the financial burden you carry.

However, it's crucial to make sure you can afford this potential debt before obtaining it. Here are some questions to ask to figure out whether a personal loan is the right option for you:

  1. What is my credit score? The best offers are usually given to borrowers with higher credit.
  2. Can I stick to my loan payment schedule? Make sure you can cover your debt payment obligations without delays in advance.
  3. Will I have enough money left for my current needs after making the monthly loan payment? Pay attention to the amount that will remain after you make your loan payment, and make sure it corresponds with your regular monthly expenses.
  4. Are there cheaper alternatives available? Shop around for other options and compare various offers to choose the one with the best rates and terms.

Final Thoughts – What Is The Major Personal Loan Benefit

A personal loan can help you get the funds you need relatively quickly and use them on any needs and goals. Although there are many benefits of loan options for personal needs, the major one lies in their affordability. It becomes possible due to their lower interest rates and flexible repayment terms that each borrower can adjust to their particular situation.

However, a personal loan is still the amount you borrow and need to repay on schedule. Additionally, you will be required to meet the lender's minimum credit score requirements to qualify or get favourable loan conditions. Therefore, you need to approach it responsibly and weigh all the pros and cons before going into debt.

From tuition fees and textbook costs to living expenses, students find themselves facing an array of spending categories that can seem intimidating. Many of them are managing their finances for the first time! 

As such, mastering money management becomes not just beneficial but essential during these formative years. This skill helps ensure an enriching yet sustainable experience during your student years.

Budgeting is Key

Starting a student's financial journey the right way often begins with crafting a clear monthly budget. Similar to how essay writing services online help students manage assignments more easily, creating a budget will streamline your financial decisions. Categorize all your income, expenses, and potential savings opportunities in detail to be aware of where your money goes.

Modern apps and tools exist to assist individuals in remaining on track with their finances. By continuously tracking your spending, these applications provide real-time insight into your wallet, ensuring you adhere to your budget. By regularly tracking finances, you will reduce overspending while helping find opportunities for savings.

Take Advantage of Student Discounts

Being a student comes with many perks, one being access to discounts available exclusively to this demographic. Always carry around your student ID or discount cards as these may open doors to savings in transportation, entertainment, and dining costs.

By being proactive, you can enjoy numerous deals by staying informed on businesses that cater to students. From tech products to coffee shops, many establishments offer discounted rates or special promotions for students. Taking advantage of these opportunities can allow you to experience all that your community offers without straining your budget.

Buy Used Textbooks

Textbooks can quickly become an expensive burden on students' finances. Yet, there is an efficient solution: buying them used. Many online platforms and college bookstores provide used copies that offer significant cost savings while still providing access to crucial knowledge at a much-reduced price.

Once the semester ends, there's also the potential to recoup some of your investment by selling textbooks. Selling them can have two advantages. Clearing space and adding cash back into your wallet will help you save money and valuable dorm room space.

Limit Eating Out

Dining out frequently may seem tempting with all the food options on campus, but unlike the best essay writing services, eating out is not an essential expense for a college student. One effective solution to this problem is cooking meals in bulk at home. Not only does this save money and ensures healthy home-cooked meals for days afterward. 

In addition, taking advantage of student canteens or meal plans can offer both convenience and savings. Many plans provide either subsidies or bulk discounts making food more affordable. 

By striking a balance between occasional dining out with these cost-effective alternatives, students can experience diverse culinary experiences while not draining their wallets too much!

Use Public Transportation

Navigating campus and city environments doesn't need to be costly. Public transit offers a cost-effective option that's especially advantageous when coupled with discounts for student transit passes offered in many cities. Student passes can significantly cut travel costs over a semester, helping ensure students arrive at their destinations without financial strain.

Carpooling or biking may be great options when public transit is unavailable or short-distance travel is necessary. Both methods offer health advantages while cutting carbon footprint. By opting for these modes of transport, students can ensure effective mobility while remaining within both their budget and environmental footprint.

Avoid Impulse Purchases

Resisting impulse buying in the age of one-click purchases and endless online sales can be difficult. Yet, it is essential for students on tight budgets. 

One effective strategy for doing just this is the 24-hour rule: Before spending money on non-essential items, give yourself one full day to mull them over before making your final decision. Usually, this can lead to better spending decisions with greater foresight.

Wishlists can also be useful. Regularly revisit the items you desire and list what needs to be purchased. This way you will prioritize genuine needs over fleeting wants and filter out impulsive spending. When money is spent it has to add real value to life. By controlling impulse purchases students can extend their dollars further while investing in what matters.

Utilize Campus Resources

Colleges and universities offer many resources that students often fail to take full advantage of. Cultural fests, workshops, guest lectures, and campus events provide enriching experiences at no additional cost. Unlike similar off-campus activities that present networking opportunities but at a hefty fee.

Instead of spending thousands on gym memberships, students should utilize campus fitness centers. They typically have all of the necessary equipment and are either free or charge a nominal fee. 

When it comes to academic resources, campus libraries provide invaluable services that save both money and promote a sustainable approach. By making full use of all these campus resources, students can maximize their college experience without breaking their budgets.

Consider Part-time Work or Internships

For many students, taking a part-time job or internship is necessary to cover the academic expenses. On-campus jobs like library assistant and student ambassador provide convenient work options without long commutes.

Paid internships provide two distinct advantages. Not only can they boost your resume, but they can also serve as a financial buffer. By taking on work opportunities within their field of study, students can offset expenses and prepare themselves for life after graduation more easily.

Limit Credit Card Usage

Student credit cards provide convenience and potential rewards, yet they must be used responsibly. Accumulating debt can put significant financial strain on a student. Therefore, only use what can be paid off every month to keep interest under control and debt manageable.

Embrace Second-hand and Thrift Shopping

Thrifting is more than just a trend - it's smart shopping. Second-hand stores and thrift shops provide quality items at a fraction of retail cost. Also, trading or swapping with friends is an enjoyable way to update one's wardrobe without breaking the bank! Thrifting is sustainable, economical, and often fun!

Conclusion

Navigating the financial terrain of student life may seem intimidating, but with careful planning and smart strategies it can be manageable. Habits developed during these years won't just benefit in the short term - they provide essential lessons for building a secure financial future. By mastering budgeting techniques such as prioritizing spending by essential versus non-essential expenses and maximizing resources efficiently students can enjoy college without being held back financially by unnecessary financial worries. Cultivating money habits early is a sound investment that pays dividends down the road!

 

One avenue that has gained immense popularity in this transition is futures trading. It is important to note that answering the question "what are futures?" is the most basic step in exploring the futures trading landscape. This article, however, delves into how individuals can effectively capitalize on futures investing/trading within the digital financial era, exploring key strategies and considerations.

Embracing digital platforms 

The advent of the digital era has opened up the financial markets to investors of all experience levels. Online trading platforms have transformed futures trading due to the availability of real-time data, user-friendly interfaces, and the speed with which deals may be executed.

Futures trading has become more accessible to would-be investors since they can now set up accounts, conduct research, and make transactions without leaving their homes. However, choosing a trustworthy and simple-to-use platform that supports your trading goals and equips you with the resources you need for research and risk management is essential.

Leveraging technology

Futures trading today relies heavily on technological advancements that help traders make better selections and, more precisely, carry out their strategy. Data analytics software can sift through mountains of data to reveal patterns that can then be used to guide business choices. Further on this concept, algorithmic trading uses specified criteria to execute deals automatically.

Traders may take advantage of pricing differences, arbitrage possibilities, and market inefficiencies with the help of technological advancements. However, keeping abreast of the algorithms in use and making necessary adjustments when market circumstances change is crucial.

Risk management and education

The transition from Wall Street to Web Street has dramatically altered how people interact with financial markets, especially in futures trading. While it has brought forth exciting opportunities, it has also amplified the need for effective risk management. Financial market volatility has the potential for both profits and losses. An awareness of futures trading basics, risk management techniques, and market-moving fundamentals is essential for financial success. An effective risk management strategy will include diversification, stop-loss orders, and appropriate position size.

In conclusion, embracing digital platforms, harnessing the power of technology, and prioritizing risk management are key factors that can contribute to successful futures investing/trading in the digital financial era. However, as you embark on this thrilling adventure, remember that the best tools for negotiating wall street's ever-changing terrain are a thirst for knowledge, a willingness to change with the times, and a clear trading plan.

Because of inflation, money doesn't buy as much as it used to. Remember, if you move out soon after high school, your parents won't be there by your side anymore so you need to ensure that you manage your money as best as you possibly can. But although moving out of your childhood home and embracing your independence can be a daunting step, it’s important to know that you're not as alone as you may think! 

Nowadays, the ever-connected, digital world we live in offers a plethora of useful resources, such as job-hunting websites and roommate finder sites, and forums that can help you with managing your new grown-up life and financial responsibilities. By learning how to compare credit cards or search for a reasonably priced flat or house to share with a roommate or two, you can budget for the things you need today while hopefully putting some cash aside for tomorrow. In truth, learning how to save effectively is one of the most valuable lessons to learn in life, and the best way to learn it is just by living independently and trying your best.

But to help you kickstart this new phase in your life, we’ve compiled some of our favourite savings tips below. Let’s take a closer look at some of these useful tips that can help you to save money as you move out.

Create & Maintain A Budget

Budgeting is simply tracking the inflow and outflow of money. Because of this, having a budget in place can help ensure that your spending and income are at least somewhat comparable.

Once you leave the safety net that your parents provide, you need a financial management system to keep things in check so be sure to commit yourself to never spending more than you make in a month. Until you secure a reliable job that provides a decent monthly income, be sure to put a conservative spending limit in place and stick to it.

Even if you still live with your family, it’s important to start building good budgeting habits right now regardless. The sooner you get used to living within your means, the better. But for those who’ve never had to budget independently before, it can naturally be a little tricky to know where to begin. At an absolute minimum, you can start by simply making sure you’re spending less than what you’re earning over any given period. Try building a monthly budget to help manage monthly expenses like your rent and bills.

Roommate Considerations

It's reasonable to assume that, at this stage of your life, to afford to live on your own, you'll be renting an apartment or house with one or more roommates. This allows you to pool funds and other resources together to secure somewhere to live and to be able to pay your bills comfortably.

Be mindful when choosing your roommates; a good rule of thumb is to try to find people with similar lifestyles, and perhaps even people in a similar age bracket to you so that you can feel comfortable in your new household. It's also important to put individual financial obligations in writing to avoid misunderstandings that could harm your relationships with your roommates. Additionally, consider signing separate leases with your landlord to avoid being held liable for your roommates' missed rent payments or other bills. Everyone living in your home should be listed on your lease agreement, just to make sure that everybody is responsible if the property or any of its fixtures becomes damaged.

Invest In Renters Insurance

Living on your own may make you feel invincible. Still, it's essential to remember that unexpected disasters leading to costly expenses can happen at any time, even if you're a responsible renter. This is where renter's insurance comes in handy. This type of insurance offers protection and peace of mind by helping you to repair or replace your belongings if any damage were to befall them during unforeseen situations.

Renter's insurance is a special policy that covers losses or damages resulting from specific events, such as theft, fires, or storms. While renter's insurance may appear unnecessary, it's typically quite affordable. It can also save you a significant amount of cash in the long run compared to paying for damages out of pocket after something unfortunate happens.

Buy Furniture Second-Hand

If you’re living in a large city, chances are that you’re surrounded by many other renters, some of whom may be jumping from lease to lease and from property to property every year. So chances are many of your neighbours are always looking to get rid of large pieces of furniture or perhaps even home appliances. So why not take advantage of all these second-hand items?

Aim to furnish your new place with second-hand items from op shops, yard sales, online marketplaces, current or former roommates, or even from loved ones or family members. Later, you can upgrade to newer items when you have accumulated more savings. Staying sensible when it comes to funding the furnishing of your home can help you avoid accruing debt unnecessarily in the earliest stages of your journey toward independence and self-reliance. 

This isn’t to say that you shouldn’t go furniture shopping at all! It can be pretty fun to browse furniture galleries to look for discounts and bargains, or even just ideas about how you’d like to set up your dream home. If you do decide to go furniture shopping, just make sure that you enter these stores with a clear budget in mind and consider the practicality of each furniture item before adding any to your cart.

Learn To Cook At Home

We all have our favourite restaurants, and eating out with friends or family is convenient and fun. However, it's also very expensive in comparison to shopping and cooking meals at home. Most restaurants have between a 100% to 300% markup on their menu items – plus the added expense of driving or taking public transportation to your favourite restaurants or pubs should be taken into consideration too. 

In contrast, a weekly trip to the grocery store, with the bill shared equally amongst all of your roommates, will be more likely to help you conserve your financial resources in the long term. That, and you may find yourself eating cleaner when cooking at home as opposed to eating takeout every day. And there’s more to living independently than just managing your finances alone!

Pay Attention To Your Spending, Be Frugal And You Will Save

Trying to save money as a young person when moving out of home for the first time can be daunting, but rest assured that this transition can be comfortable. All you need is a little discipline and dedication, and perhaps some support from your network, be it from your parents or even from your fellow housemates. If you create a budget, avoid leases shorter than six months, take advantage of op shops, and generally be more frugal, you can take control of your finances and begin saving for your future goals.

One trigger for mental health issues that is well-known, though, is financial stress. If you think your bank balance could be affecting your well-being, you’re not alone! Let’s dive into the link between money and mental health and look at some coping mechanisms for when your finances overwhelm you.

Can Financial Stress Affect Mental Health?

Over 1.5 million people in England are currently experiencing problems with both debt and mental health. It’s incredibly common for the two to be interlinked, with money issues often leading to a decline in mental wellbeing.

The burden of financial strain is tough on the mind, with many triggers causing increased stress, anxiety, and feelings of depression. For example, some people may find receiving letters causes them severe anxiety as they dread finding financial statements or debt collection reminders. Others may find that viewing their spending or bank balance creates feelings of depression. Almost 40% of people between 40 and 50 lose sleep over finances, which can lead to a whole host of mental health problems, and many people feel isolated when they can’t participate in social events due to a lack of money.

All of these are examples of financial stress affecting well-being, but they’re just a handful. There are countless other ways that people find their money impacts their mental health, creating a whole host of problems.

But what about the other way around? It’s clear that financial stress can impact mental health, but can mental health impact financial stress?

Mental Health Issues Can Cause Financial Stress

Unfortunately, the pattern does go both ways. Those suffering from mental health issues can often lose track of and become overwhelmed by their financial situation. A lack of good stress management caused by their mental health leads to a range of financial triggers creating huge emotional responses. So, a vicious cycle begins: your mental health makes you unable to deal with your finances, which increases your financial stress, which creates more mental health problems.

For example, people who suffer from depression often struggle to find the motivation to deal with their finances. Those with anxiety may see their finances as a trigger, whilst those with mania may find themselves making impulsive decisions about spending that they later regret. The fact that people with mental health problems are three and a half times more likely to be in debt than those without shows just how debilitating these issues can be.

Why Does Mental Health Lead To More Debt?

When looking at the link between money and mental health, you can’t ignore the impact that well-being can have on finances. The gap between earnings for those with mental health problems and those without is large, and sometimes people with depression, PTSD, anxiety etc. simply can’t work.

When they don’t have the income to sustain a safe, healthy life, their financial situation becomes worse. Again, this becomes a vicious cycle that’s incredibly hard to break out of, with many ending up in deep financial trouble.

Understand Your Responses To Finances

Fortunately, there is plenty of hope for people suffering from mental health and financial stress. By understanding your own emotional relationship with money, you can better grasp what’s going on. Do you:

Feelings of guilt, stress, anxiety, fear and fatigue are all signs that your financial situation could be affecting your mental health - or the other way around. Once you identify that you might have an issue, you can start to take steps to address it. Let’s take a look at some of these now.

1. Speak To Someone You Trust

As with so many mental health concerns, speaking to someone is vital. Make sure you confide in someone you trust, explaining how your financial situation impacts your mental health. They can then help you to find financial support, go through your finances with you, or simply be someone who can listen when your money is getting you down.

2. Speak To A Financial Advisor

Financial advisors are the superhumans of the money world! By teaching you how to manage your money, sorting your finances, and helping you get out of financial trouble, they can relieve your stress and get you back on your feet.

3. Address Your Mental Health

If your mental health is taking a toll on your finances, you must address the cause before the consequence. Reach out to a GP or therapist who can begin the process of improving your mental health. Stress management could also aid in controlling your emotional responses, taking the pain away from dealing with your finances.

Final Words

The link between money and mental health is clear, but it doesn’t mean that you have to suffer. By finding support using the methods in this article, you can take control of your bank balance and your mind, turning money into something you feel confident in dealing with.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram