If you are trying to save money and need some extra tips then the 50-30-20 rule could be super helpful to create a budget.

With this rule you will be splitting your income up and assigning each pot of money to a selected category.

This rule will work best if you have a separate savings account so you can keep that away from your spending money and visualise what you have left.

50 - Needs

50% of your income will be spent on your needs and necessities throughout the month.

This includes rent, house bills, car payments, grocery shopping, childcare and anything else that you absolutely need to pay. It would be best to be strict about this section and only put things you couldn’t live without in here, don’t be tempted to pay for any hobbies from this pot.

30 – Wants

30% of you income will be spent on your wants.

This would include any hobbies you have, gym membership or streaming subscriptions. Any days out or social events should also be paid from this pot of money. Also included would be any shopping that is not necessary such as a new dress or watch.

This will help you budget how much you can spend on your wants throughout the month and not be tempted to over spend. This would help you if you have a habit of impulse shopping. You will have a visual of how much you can spend and what will have to wait until next month.

20 – Savings

20% of you income should go into a savings account or an ISA.

Trying to save whilst on a small income or when you have other obligations can be challenging. Using this rule will help you put away a small amount each month and by budgeting like this you will know it can be done.

If you need to change the percentages to fit your situation, say if you have a long list of needs then increase this to 60% and only put 10% in you savings. This still allows you to save whilst not being super low on money at the end of the month.

For example...

If your monthly income is £1,700 and you followed the 50-30-20 rule then you would have,

£850 to spend on your needs list, £510 to spend on your wants and then £340 to put into your savings each month.

The government has announced that they will be increasing the cost of council tax due to the rate of inflation in the UK.

How they calculate your council tax

The cost of Council tax is determined from the valuation of the property from 1991 in England and Scotland and 2003 in Wales. If your property did not exist then it would have a valuation completed by the Valuation Office Agency (VOA). New builds will be compared to similar properties in the area.

The VOA value the property based on…

• Size
• Layout
• Character
• Location

The property will be placed in a band where Band A is the cheapest through to Band H which is the most expensive.

Council tax varies depending on each county and the needs for the area. Your local council will set the price for each band’s council tax bill.

Council needs include, street cleaning, community infrastructure, the police and fire services in your area, street lighting, rubbish collection and more.

How you pay your council tax

If you are moving into a house soon and are unsure how council tax works, there is no need to panic. Once you move into the property you will be sent a letter from the government with your council bill included along with the process to pay it. You will be sent this letter once a year in April when you expected to pay, you should then set up direct debits to ensure this is paid on time.

The payments are usually split into 10 monthly payments form April- January starting from the month you possess the property.

You can pay your bill online, or alternatively there would be pay points in your area, such as, the post office.

Extra costs of buying a house such as council tax is why it is important to understand how much of your salary should be spent on your mortgage so you can afford all the costs included in moving into a house.

Can I get a reduction?

You could be eligible for a reduction or exemption from council tax if you meet the criteria below.

• You are on a low income
• You are a student or live with t a student
• You live alone or are the only adult in the property
• You are a member of the armed forces
• You have a severe mental impairment or live with someone who does
• You have moved into a care home or the hospital

Using a finance app can often be a helpful way to keep on track of your money wherever you are and in a specific way for your needs. Tracking your money shows you how much your are spending and can support you in making a change.

There are many options for free budget apps as well as paid for ones which can help you keep track of your spending and get control of your finances.

Hyper Jar

This app is free to use and download and includes a physical card to use. Upload money onto the card and use it to budget.

The app uses a system of ‘jars’ to budget, you create your categories and how much you put in each one. For example, your grocery jar could have £100 in it and your fuel jar will have £50 so you know this is all you’re supposed to spend on these things.

Hyper Jar includes a feature of linking specific shops to your jar, such as Aldi to your grocery jar and the money will automatically come from this jar when you spend here. You can earn interest when you commit to certain brands too!

You can use their shared Spending jars feature to help balance your finances with a partner or housemate. This also works if you wish to track you kids finances and help manage them.

Using this card allows you to travel without having transaction fees.

There is no option to withdraw cash from an ATM using the Hyper Jar card.

Emma

The standard version of this app is free.

This will link your banking apps so it can analyse the information and patterns to determine and suggest where you could make cut backs.

You are able to set up a monthly budget with Emma and the app will remind you to stick to it.

With the Emma Plus version, which costs £4,99 a month you can link 4 accounts, and have a fraud detection feature, bill reminders and a balance feature so you are reminded how much you have left to spend in your budget.

With the Emma Pro option, which costs, £9.99 you can link unlimited backs, track your net worth and any changes along with create custom categories for your spending patterns.

With Emma Ultimate, which costs £14.99 you can include any business accounts your might have and are able to become more specific with your needs. This is a great option if you have business finances to organise as well as other business finance apps.

Snoop

The app is free however if you want to try out some more features the cost will be £4.99.

Snoop will track all your regular bills and alert you when they are higher than usual and offer your cheaper options to switch to.

The app will also keep an eye out for insurance policies and cheaper phone deals. Once the app knows your routines and where your shop it can suggest discounts and voucher codes for those places saving you money wherever you go.

If you pay £4.99 for Snoop plus this will give you more features such as, tracking your spending from each payday and then create unlimited custom spending ports as well as refund alerts.

Snoop will be helpful for offering cheaper options for your regular items and spends which will save you money each month.

Each year in March or April providers will increase their prices which in the past have added a substantial cost to peoples phone bills.

In 2024 the average increase has been around 7.9% on top of customers’ bills.

Why?

The prices always rise according to the Retail Prices Indec (RPI) or the Customer Price Index (CPI) as well as an additional 3.9% to offset the inflation rate and rising business costs for the provider

This year the RPI was 4.9% and the CPI was 4%.

Which Providers increased their prices?

You should have been given a warning 30 days before the prices increased. Providers are also legally allowing to raise prices mid-contract.

EE – 7.9% increase

O2 – 8.8% increase

Sky Mobile – (Out of contract) 3%

Talk Talk – 4% increase

Which Providers have not increased their prices?

Lebara Mobile has not increased any prices. Often the smaller providers will not rise their prices.

Others will keep their prices stable if you are in a contract or deal with them already.

GiffGaff – For those mid-contract prices have remained the same

SkyMobile - For those mid-contract prices have remained the same

Tesco Mobile – If you are signed up to a Clubcard deal will stay the same

What to do if your bills rise?

Unfortunately if you are mid-contract and your bills rise there is little you can do as exit fees are often high. You should review your contract to determine if exiting would be worth it or not. Also check to see when your contract ends to make sure you can shop around before it ends.

Uswitch has estimated this will have people paying £24.23 more on mobile phone bills.

The cost of living crisis continues to affect households with rising prices in various areas of life.

Your mortgage is going to be a huge financial investment and something new to factor in to your budget and financial abilities. When deciding what mortgage to borrow both yourself and the lender will have to evaluate your current financial situation including any existing debt to decide what repayments you can comfortably make.

Before you start the mortgage application process you should know how much to expect.

Mortgage to Income ratio

It is sensible to keep this ratio as low as possible to ensure you will be able to sustain it. If you miss payments or cannot make the re payments you could have increased interest added on as well as more severe consequences such as repossession.

Using  no more than30-40% of your post-tax income for your mortgage is a popular method for home owners and mortgage lenders too.

Lenders will generally prepare to lend 4.5 times your annual salary.

For Example…

If your annual salary is £50,000 and you have no debts then your maximum mortgage will be £255,000.

If your annual salary is £30,000 and you have no debts then your maximum mortgage will be £135,000.

If you are applying as a joint holder with somebody else then the lender will review both finances and your mortgage loan could be higher.

Why Pensioners have to pay income tax now

The 2024 budget has stated the the triple lock system will be secured which allows the state pension to increase in line with inflation so that pensioners are able to afford the rising cost of living. This rise has now set the state pension to, £11,502 from now.

The tax threshold is remaining steady at £12,570, so those who only receive the state pension will have no changes. Those who receive this as well as an additional private pension of £1,068 or more will be pushed into the tax bracket and have to start paying income tax.

Pensioners worry for their finances

Clarke and Peacock estimate that around 650,000 pensioners will now have to pay income tax.

The financial worries for pensioners now increase with the added tax and being able to afford the cost of living is already difficult on their low incomes.

Many worry about what they will have to do for this new rule. HMRC have stated that there will be no need for self-assessments as this is an automatic payment. However, the likelihood of incorrect tax codes means that claiming back overpayments will make contacting HMRC a necessity. This is a frustrating and worrying time for pensioners as they have to navigate their new finances.

If you are thinking about taking out a loan make sure you are considering it carefully and know what you are getting into. With any type of loan there are serious implications if you miss any repayments and find out you cannot afford to pay back to loan you agreed to.

To take out either of these loans you will have to have a good credit score so start by improving that if necessary.

Secured Loan

These are sometimes called Homeowner loans, second-charge mortgages or home loans.

If you take out a secured loan you will have to place a valuable asset as collateral, this is often property such as your house or a car depending on the value. This gives the lender security if you fault on your repayments.

If you cannot keep up with the repayments then the lender can sell you house or other valuable asset you placed as security.

When you apply for a secured loan you will receive the money quickly directly into your bank account. You will often have lower interest rates on a secured loan as you have given the lender security in the form of assets.

You can choose how long you have to pay back this loan and often giving yourself longer will be best as the monthly payments will be lower however the overall interest is then higher.

Personal Loan

For this loan you will not have to name any valuable assets however, you will be able to borrow less with a personal loan, usually up to £25,000.

If you miss a repayment or find out you cannot pay the lender back over time then you will face legal consequences.

If you do manage to meet the agreements then this could improve your credit score.

You can choose how long you have to pay back this loan and often giving yourself longer will be best as the monthly payments will be lower however the overall interest is then higher.

Taking out a loan is a serious financial decision and should not be made lightly, make sure you have all the information and are confident you will be able to pay back your loan in full.

As of March 2024 below are the best 2 year and 5 year fixed term mortgage rates.

With a fixed term mortgage you will not be affected by changing interest rates and you will often pay lower rates than if you were on a variable rate mortgage.

If your fixed term is coming to an end this year and you are worried about the rise in mortgage rates then make sure you are comparing the best deals.

2 year fixed term mortgages

Barclays

• LTV – 60%
• Interest rate – 4.5%

Natwest

• LTV - 60%
• Interest rate – 4.64%
• deposit – 40%

Halifax

• LTV – 60%
• Interest rate – 4.6%

5 year Fixed term mortgages

Natwest

• LTV- 60%
• Interest rate – 4.24%
• Minimum loan amount - £25,000
• Minimum Deposit – 40%

HSBC

• LTV - 60%
• Interest rate – 4.24%
• Maximum loan amount - £5,000,000
• Offers a 10% annual overpayment allowance

Is a 2 or 5 year fixed term better?

As seen above, currently 5 year fixed term mortgages offer lower interest rates meaning you will have to pay back less over time.

A 5 year fixed term is a long term commitment so you have to make sure you will be able to make your repayment for the whole duration.

Pros of a 2 year fixed term

• You will be able to switch lender to get a better deal after only 2 years so that when rates fall you can benefit.
• You are usually able to make over payments in a 2 year term meaning you will be able to pay off your loan quicker, saving on interest over time.

Cons of a 2 year fixed term

• You will have to remortgage sooner and could have to pay fees to do so.
• At the end of the two years, interest rates could be higher giving you a more costly rate.

Pros of a 5 year fixed term

• This offers you stability knowing what your monthly payments will be each month regardless of what happens to the base rate. This can help you with budgeting and financial planning.
• If you know your current financial situation won’t change and you are happy with the rate then this a great way to avoid the hassle for a while.

Cons of a 5 year fixed term

• If you want to take advantage of the changing interest rates then you will be unable to do so with this term.
• You will paying out for a longer time and so will have less disposable income.

Stay on top of your Credit card payments and avoid debt.

By using an app or online platform to track your business expenses you could save time and money in your business. In 2024 there are many apps to choose from, however make sure it is one you can trust. Why not trying an app for your personal finances too? Stay on top of your money to have stress- free finances.

Below are rated apps to give you seamless financial support and give you freedom to focus other aspects of your business.

As the higher cost of living has continued to stretch household budgets, the flexibility for consumers of buy now pay later (BNPL) deals has become increasingly attractive.

Recent research carried out by the Financial Conduct Authority (FCA) last October,  found that around 27% of UK adults has turned to BNPL in the six months to January last year.

This was a significant 17% higher than for the 12 month up to May 2022.

If you are looking to buy an item using BNPL there are plenty of issues to consider,  alongside potential pitfalls over failing to make  payments.

It’s also important to remember that BNPL is a way of borrowing so its best to ensure that you have a repayment plan in place.

The pros of BNPL deals

The one obvious benefit of BNPL services is that buying any priced item is more manageable, as payments can be spread out into smaller amounts.

Payments are allowed over the course of weeks or even months depending on the terms and conditions from a BNPL provider.

For example with Klarna you can pay for your item in three instalments, where the first payment is made at the point of purchase, with the outstanding instalments to be made every 30 days.

Typically any purchase that is made through BNPL is interest free, so zero per cent financing is a draw.

Increasingly consumers are also able to use BNPL services in store as well as online if a  retailer is signed up to a BNPL provider in the same way that you are, details such as email addresses and phone numbers would need to be provided to confirm payment.

While it is probable that a credit check will be performed when applying for BNPL, it is not likely to be a rigorous assessment of your finances and will nor be viewed by other lenders.

The cons of BNPL deals

Of course there are downsides to this and make sure that you do not believe that this is easy money and any debt will have to be paid back, as the credit checks are softer you may be approved for BNPL without being able to afford it.

Yet some BNPL providers do go the full distance and proceed with a full examination of your finances, this can potentially lead to your credit score being damaged if for example a deadline payment is missed if it cannot be covered.

The lack of regulation over the BNPL sector is a concern, and its important to be  aware that any agreement that lasts a shorter period than 12 months is not regulated by the FCA.

This means that if there area any disputes over unfair treatment then there is no consumer protection in place.

If you make a BNPL payment with a credit card it means that you are not covered by section 75, which allows you to ask for a refund if there is a problem with an item that costs between £100 and 330,000 where you have paid by credit card.

What happens if you miss payments?

A penalty fee can be charged if repayments are missed, where potentially debt collections agencies can be called in, depending on the approach from a BNPL provider.

Some providers may try and work out an alternative repayment schedule, such as rolling on a payment over to the next instalment deadline.

That is why it is so important to fully check what the penalties are from providers.

Klarna will try on two occasions to take the first payment, if it cannot be covered it will be pushed back to over to the second instalment.

If after two more attempts on the second payment that the costs still cannot be met, then it will be rolled on to the final payment.

At that point if the payments can’t be made then the debt collection agency is called in.

There is also a risk of being banned from using Klarna if payments are missed.

Clearpay say that late fees will be charged, but late payments will also be capped to help people recover and get back on track.

While Laybuy will take a considered approach where the circumstances over late payments will be taken into account, and look to find a solution by determining what payments can be made in the meantime.

If the situation continues for an unspecified period of time, then debt agencies are brought in.

More positively Paypal have a Buy now and Pay in 3 offer to consumers, and it makes it clear that there are no late fees involved if payments are missed.