How to Cut Down Cost of Living Expenses.

On the Kiran Trivedi blog this week, I let you know how to cut down cost of living expenses so that you can protect your personal finances in the long term.

Life is More Expensive These Days

It seems that life is just more expensive these days doesn’t it, Kiran Trivedi readers? Food prices are higher than they used to be, energy prices are higher than they used to be; even rail fares are due to go up by 3.5% next year. Again.

Rail fares are due to go up by 3.5% next year

It’s simply more expensive to get by than it was ten, or even five years ago. This means that you have less money to go around in the budget, making it much harder to protect your personal finances.

Cutting Down the Cost of Living

The thing is though, that you don’t have to let exorbitant cost of living expenses hold your personal finances hostage. There are plenty of ways to cut down the cost living, including…

• Doing Your Research: It’s time to dust off this old chestnut. I’m always telling you to do your research before you buy, and it’s definitely a way you can cut down cost of living expenses. Before you buy, look at a product, do your research and ask if you are really getting value for money.
  
• Shopping Around: One extremely effective way to cut down the cost of living is to shop around for the cheapest provider. Take energy bills, for example. You pay ridiculous amount with the Big Six, but by switching to a low cost supplier, you can shave hundreds of pounds off of your household energy bill!
  
• Looking at What Package You Have: When it comes to the larger things, like telecoms, look at the kind of package you’re paying for. Are you using every feature you’re paying for? Can you find a package better suited for your needs at a fraction of the cost etc.
  
• Making Lifestyle Adjustments: One of the best ways to cut down the cost of living is to simply make a few lifestyle adjustments; walking to work rather than paying for the bus, making your own lunch rather than shelling out for an expensive sandwich etc.
  
• Using Your Will Power: Another easy way to cut down the cost of living is just to say no every once in a while and refrain from indulging yourself. Help yourself by doing things like leaving the debit card at home, so you’re not tempted to buy things you don’t need, like six out of every ten people in this country already do on a regular basis!

It’s Really Easy to cut down the Cost of Living

These tips may sound basic, Kiran Trivedi, but that’s the entire point of this article. They are. It is really easy to cut down cost of living expenses to protect your personal finances as long as you stop and think!

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Why Are We Paying Too Much for Our Energy Bills

This week on the Kiran Trivedi blog I ask what the recent news that the energy market is over regulated means for your personal finances.

Energy Bills Just Keep on Going Up!

I regularly talk about the impact of energy bills on your personal finances. If you are looking to live on a budget, you’ll have zero chance of success if you don’t think about how much you need to pay for electricity, gas etc. every month.

But as of late, that hasn’t been easy. It seems that energy bills in the UK have been constantly rising over the last few years. This means that not only are energy expenses putting more pressure on your personal finances than ever, but they are harder to predict.

Consequently, this makes it harder to budget for energy expenses, further effecting your personal finances. That’s why I thought you Kiran Trivedi readers would be interested to know that the reason you are paying high energy bills could be because there is too much red tape in the energy market.

Energy Regulation since 2008 Too Aggressive?

According to the BBC, five former regulators went on record last week suggesting that too much regulation could have stopped competition among energy suppliers, in turn keeping energy prices high for households across the UK.

Specifically, they suggested that regulation since 2008 has been too aggressive. This conclusion comes in light of recent Ofgem findings, which suggest that energy suppliers have been able to continue to raise their prices, free from any competitive pressure, even whilst wholesale prices were falling.

Ofgem Responds to Regulator Criticism

Ofgem responded to the criticism, saying it would pay “close attention.” However the regulator went on to deny that things were fine before 2008, but took a turn for the worse when after the date they adopted a more interventionist approach.

A spokesman for Ofgem said: "Many of the current problems with retail competition in the energy market were showing before 2008 and the regulatory and policy environment has changed significantly since then."

Switch to a Low Cost Energy Supplier

So is more regulation the reason your energy bills are so high? Maybe, I’m not sure yet. What I am sure of Kiran Trivedi readers, is that the Big Six energy companies provide poor value formoney. That is why I would suggest that if you’re looking to protect your personal finances, you switch to a low cost energy provider today! 

If you wish to talk to Kiran Trivedi about my articles or just chat about finance, you can contact me here.

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Five Tips for Saving Money on Your Lunch at Work

You may not think so, but if you buy a fancy lunch every day at work, it really adds up, which is why on the Kiran Trivedi blog this week, I’ve provided five tips that you can use to save money on your lunch at work.

The Cost of Lunch Really Does Add Up

OK, you probably think I’m being petty now. What will you pay for a sandwich at your favourite supermarket? A few pounds? OK, it’s a few pounds now, but think about it. £2 a day, five days a week. That’s a tenner a week. That’s around £40 a month. All of a sudden, that’s a chunk of household budget gone for the month.

The thing is, that it’s so easy to protect your personal finances form the mounting cost of expensive lunches at work. All you need to do is make your own. Do that and watch, as the pain expensive lunches inflict on your personal finances suddenly just disappears.

Drive down the Cost of Your Work-Lunch

I’ve been doing this for a long time, Kiran Trivedi readers. I know all the tips and tricks you can use to make your own lunch for as little as possible. In my experience, here at the top five ways to make your own work-lunch on the cheap…

1. Invest in a Flask: Invest in a flask, and the world’s your oyster. All of a sudden, you have enough tea to last you the whole days for pennies a go.
2. Buy Cheap Ingredients: Despite what most people think, it really doesn’t matter whether you buy brand name foods or not. Why not try buying budget mayo for your sandwich? It costs less and tastes exactly the same.
3. Make Something Filling: You need your lunch to fill you up enough, so you don’t have to sneak down to the local corner shop for an expensive chocolate bar mid-afternoon. That’s why I’d suggest that you always make something with carbs i.e. a sandwich, pasta dish. Carbs are really filling and are great long term energy sources.
4. Buy in Bulk: Why not look at your budget, wait for when you’ve got the most spare cash, and buy your ingredients in bulk when they’re at their cheapest? Good tip; wait until your desired lunch ingredients are on special offer!
5. Do Your Research: Once again Kiran Trivedi readers, you need to do your research. Look around at different supermarket website and see who is offering your desired lunch at the lowest price.

If you remember anything from this article, Kiran Trivedi readers, let it be that if you want to protect your personal finances, you need to make your own lunch for work!

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Several Ways for Small Businesses to Save Money

Owning a small business can be a serious drain on your personal finances, which is why on the Kiran Trivedi blog, I wanted to share several ways for small businesses to save money.

When You’re a Small Business Owner, Every Little Helps

You’re really putting yourself out there when you start a small business. You don’t have the security and the safety net that comes with working for someone else. Yes, you reap all the rewards, but all the financial risk falls on you as well.

If your company goes bust, you’re the only one who’s going to suffer financially. This is why, to ensure the stability of your own personal finances, you need to find ways to save the money you spend on the business. As some famous adverts have said; every little helps!

Kiran Trivedi’s Top Money Saving Tips for Small Businesses

In fact, there are a thousand ways to cut down the bill of running a small business, including…

• Buying Office Supplies in Bulk: Office supply retailers, as normal chains do, often have special offers for customers who buy in bulk, which cuts down the significant cost of office supplies.
• Embracing Online Marketing: Don’t waste cash on a flashy ad campaign. Rather, set up a blog and social media accounts and use them to effectively market yourself to your target audience for free! You can even monetise your blog and your YouTube page and bring some extra revenue in!
• Turning Things Off: Do you know how much electricity you use when you leave an electrical device or a light on overnight? A laptop constantly left on for a year, for example, will add around £50 to your electricity bill. Get in the habit of turning everything off before you leave and save a serious amount of cash!
• Using the Government to Your Advantage: There are a thousand ways the government try to help small businesses grow i.e. tax credits for certain industries. It’s in their interest to make sure small businesses succeed. Use this to trim down your company’s expenditure.
• Reducing Employee Turnover: A study by experts at Oxford University published earlier this year revealed that the cost of replacing an employee can be over £30,000. Don’t end up letting this drive down your bottom line; treat your employees with respect!

Once Again, Say it with me People, Do Your Research!

All it really takes is some common sense to save money as a small business owner. Best advice I can give you? It’s the advice I always give you here on the Kiran Trivedi blog. If you want to save money as a small business owner, do your research!

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If you’ve had a Power Cut, You Could be in for a Bigger Pay Out!

It turns out Kiran Trivedi readers, that if you’ve had a power cut, it may not hit your personal finances as much as you might think, as you might get a bigger pay out!

Time is Money People!

You may not think that a power cut has the ability to weaken your personal finances. After all, its energy you’re not paying for, because you’re not using it. However I would argue that if you go without power for longer enough, it can seriously damage your bottom line.

Remember the old adage; time is money? Well think about 24 hours without power. Think about 24 hours where you can’t turn the lights on, go onto the internet etc. That’s a lot of time wasted, and you and up being a lot less productive. It can end up really squeezing your schedule, and thus costing you money.

With Power Cuts Coming More Often, Compensation Just had to be raised

And the situation seems to have gotten worse lately, Call it global warming, call it whatever you want, but we seem to be having more power cuts than ever lately. In the wake of the storms that rocked the nation last holiday season, over 16,000 homes in Southern England went without power for a staggering two whole days.

Now it seems that energy regulator Ofgem, in light of recent events, see things the way I do. According to the BBC, the regulator has decided this week, to lift the minimum customer pay out for consumers who go without energy for at least 24 hours. They have raised it from £24 to £70.

“There are Lessons that Have Got to be learned.”

Ofgem’s Maxine Frerk commented on the matter to the BBC. Frerk said: "There are lessons that have got to be learned for the future - both about getting some customers reconnected faster, but most importantly about the communications with customers, so that they can get through, find out what's happening and get some sense of when they're likely to be back on supply." 

Notably, the news site went on to reveal that the energy regulator was already particularly displeased with energy company SSE, along with power distribution firm UKPN. Between them, they’ve already had to pay out £4.7 million in compensation to those most badly affected by the holiday storms.

What Does This Mean for Your Personal Finances?

So what does it mean for your personal finances, Kiran Trivedi followers? First off, it means you need to remember that if you go for power longer than 24 hours, you’re entitled to more compensation. Secondly, it means that this will likely prompt the energy companies to supply a more effective service, which will hopefully have a positive effect on your bottom line. 

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Get Ready for Clearer Insurance Renewal Quotes!

Insurers are to be forced to provide clearer renewal quotes, which as I’m going to explain here on the Kiran Trivedi blog, is great for your personal finances.

They Won’t Tell You What You Used to Pay

We’ve all been there. A new premium for your home, your car, hell, even your dog, comes through and it’s gone up. You don’t know why. You think it’s gone up, but you’re not sure; the insurer won’t tell you what you’ve previously been charged.

It’s a common problem, and it can wreak havoc on your personal finances. If you can’t compare your old premium to the price of your new one, it’s far harder to craft an accurate budget that you can use to balance your personal finances in the long term.

Call for Easy Comparison Renewal Quotes

Well that could be set to change, as last week city regulator Association of British Insurers (ABI), itself wrote to the Financial Conduct Authority (FCA), proposing that insurers be required to remind customers what they previously paid when they inform them of a new premium.

However the ABI went on to suggest that the change should only apply to homes and motors, which represent a majority share of the market, and not, at last initially, to other types of insurance i.e. pets, foreign travel, commercial purposes etc.

Come Clean About Introductory Discounts

The ABI also suggest that insurers be forced to come clean about introductory discounts on premiums, which are often offered in the first year, to provide customers with an incentive to switch insurers.

The BBC reported that ABI’s deputy director general, Huw Evans, spoke out on the proposals, saying: "Insurers want to make renewing your insurance policy easier and clearer to understand by reminding you of last year's premium and flagging up introductory discounts." 

Many Customers Have Been Paying Over the Odds

The fact that even insurers are backing the proposals means that you can be sure that when they come into effect, which is expected to be the end of next year –they’ll act to benefit you, the customer.

This viewpoint was mirrored by Natasha Glasgow, head of insurance MoneySuperMarket, one of the consumer groups which lobbied for the changes. According to the BBC, Glasgow said: "At long last, the insurance industry is waking up to the fact that it has made the process of renewing policies at a competitive price as difficult as possible, with many customers paying way over the odds," 

I couldn’t have put it better myself. This move is great for your personal finances because it will ensure that you don’t draw money from the budget to overpay when you are presented with a new premium!

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Kiran Trivedi Explains Why it pays to Start Saving Early

Even with all the money saving tips in the world, there’s no substitute for saving, and this week on the KiranTrivedi blog, I want to explain why you need to start saving early.

The Plight of the Young Professional

As a 20-something young professional with a good career and a steady stream of disposable income, it often seems as though you’ve got the world at your feet. You’ve got money, you’ve got time and you’ve got an established career path.

That’s why so many of these people don’t save their money. They think, ‘I’ll have plenty of time in the future, my money’s not going anywhere so I’ll start saving in my thirties.’

Retirement- It’s Kind of Expensive!

I understand this point of view, I really do, but the truth is that you’ve got it all wrong. You need to start saving in your twenties. Quite frankly, the earlier the better.

Why, I hear you ask? Well it’s all about preparing for your future. Even though it seems really far away, your retirement will arrive far quicker than you could ever possibly imagine – only 40 years or so – and young people often underestimate how much money they really need to comfortably see out their golden years. Little clue for you – it’s a lot!

Kiran Trivedi Makes His Pitch: Start Saving Earlier!

Alright, fair enough, retirement is kind of expensive. So now I hear you ask, ‘why can’t I just wait until I’m in my mid-30’s when I’m earning more and start saving then?

Basically when you save, you make interest, then you make interest on your interest, known as compound interest, which means the longer you save, the more money you make. Therefore, if you save a little money each month from your early 20’s you stand to have more in the bank by the time you hit the retirement home, than you would if you started saving later.

Furthermore, it’s actually way better for your personal finances across the board. Saving a little bit every month for 40 years leaves you with far more to live off and gives you a better quality of life, than saving a larger amount for 30 years. Can’t say fairer than that, Kiran Trivedi readers!

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Kiran Trivedi Lets You Know How You Can Make Money as an Amazon Author

If you’re stuck for cash, why not break out the laptop, write a book and flog it on Amazon? This week Kiran Trivedi lets you know how you can make a tonne of easy cash as an Amazon author.

You Can Always Make Money on the Internet

It used to be almost impossible to get published. You had to write a manuscript and send it off to a publisher. It lied in a pile of manuscripts, and if you were lucky, it’d be read, but even then the chances it’d actually interest the publisher enough to prompt an investment was practically zero.

However the internet has changed everything. I’ve repeatedly told you how you can use the internet to make cash and shore up your personal finances. You can flog your old stuff on EBay, save a little money by taking advantage of a GroupOn deal or trim the grocery budget by doing your weekly food shop online.

Welcome to Kindle Direct Publishing

Now the internet has made it a whole lot easier to make cash as an author too, as you can publish your book straight to Amazon. Welcome to Kindle Direct Publishing.

If you’ve got a specialist subject, why not give it a try. Yes, you make far less money, as you don’t have the selling power of a publishing house behind you, but you earn a 70% royalty on any sale you make. Best bit? Publishing doesn’t cost a single penny!

How Can You Publish Your Book on Amazon?

You can easily use it to make the few hundred quid you need to strengthen your personal finances, and all you have to do is write the book, open an Amazon account, find the Direct Kindle Publishing page and follow the instructions.

However I would urge caution. You only make money when somebody buys your book, and if your book isn‘t good enough, you won’t make any money at all. Make sure you know what you’re talking about, that you’ve got your grammar correct and that you book is useful and/or enriches the lives of everyone who reads it. In other words, be a good author and, you guessed it, do your research!

There you have it Kiran Trivedi readers. Publishing a book on Amazon won’t change your life, but it will provide you with a steady flow of cash that’ll shore up your personal finances. Who knows, you could be the next JK Rowling!

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Kiran Trivedi’s Top Five Reasons You Shouldn’t Use a Payday Lender

With all the news on the subject lately, you should already know this, but in case you don’t, Kiran Trivedi takes the time this week to list my top five reasons why should never use a payday lender

What is a Payday Lender?

For those of you who’ve somehow managed to live in a media blackout for the past few months, a payday lenders is a service that seeks to offer you a loan that you then repay from your next wage. It’s essentially an easy way to lend money in the short term, without having to worry about the stringent checks and balances you would have to endure with most lenders.

On the face of it, payday lenders seem to be a fantastic idea. They’re quick, easy to use and efficient. You know what you’re getting and you don’t have to deal with high street banks, which have collectively lost the trust of many people in the last few years, because of the role that they played in facilitating the global financial crisis.

You Shouldn’t Use a Payday Lender for Five Reasons

However I would argue that this is an extremely short sighted and limited view, and here are my top five reason why:

1. A Circle of Money: The truth is that this isn’t free easy cash. People often seem to wilfully forget the fact that it’s a loan, and the money has to come from your next wage, leaving you with less money next month and perpetuating a horrible cycle.
2. Stress Test: There’s barely any grace period when it comes to these loans, because you’ve promised to pay it back out of your next wage. This means you’ll be stressing out a lot about how to slot the payment into your budget.
3. It’s Expensive: It’s so unbelievably expensive. Not only do they usually come with exorbitant interest rates, they also often come with extra charges, meaning that in the end, a payday loan is seriously bad value for money.
4. Continuous Payment Authority: The main reason most experts categorically advise you not to use a payday loan company is that you give them continuous payment authority. This makes the agreement difficult to cancel as you’re literally giving them the keys to your bank account, meaning that if you can’t pay them back, they’ll simply access your account to take whatever they can.
5. Subprime Lending: Did you also know it’s really bad for your credit rating, which will have ramifications when you need to make a larger financial commitment such as a mortgage? Financial institutions see it as subprime lending, which makes it look as though you are the type of person prone to needing money at the drop of a hat. Not very secure at all. 

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Do You Get Value for Money With Your Degree?

A survey has revealed that many students believe that they do not get ‘value for money’ from their degree and this week, I ask on the Kiran Trivedi blog just how much your degree adds to your bottom line.

The traditional argument states that a degree is an investment in your future. Those people who are able to boast a bachelors on their CV are said to prove more attractive to higher end employers, meaning that there is supposedly a direct link between university education and earnings potential.

Is it Really Worth £9,000 a Year?

However students have become increasingly distrustful of the benefits of a degree, as fees have risen to £9,000 a year for the average University course, and this has led many to consider whether they truly provide value for money.

According to a survey conducted by the Higher Education Policy Institute (HEPI) and the Higher Education Academy (HEA), a third of the 15,046 students questioned say that in a world where you pay up to £9,000 a year for your degree, the course offers poor value for money.

There is a clear reason why so many students have questioned the value of the £9,000 price tag. That is because the controversial change that was first brought in in 2012 has only resulted in 10 minutes extra contact time.

It’s important to note that this is a sharp contrast from 2012, when it was reported that only 18% of students surveyed suggested that a degree offers poor value for money. Furthermore in 2014 only 36% said their course offers good value for money, whilst 52% held this opinion back in 2012.

The Link between Your Degree and Your Wage

The real question here is does the cost of a degree justify the greater position it gives you in the jobs market? Whilst graduate starting wages generally measure over at least £14,000, students have to start paying back their loans when they earn over a certain amount, and if you’ve borrowed more, you’re paying back more over a longer period of time.

This would suggest, Kiran Trivedi readers that a degree is worth the money you’re willing to pay for it depending on the starting wage of your chosen profession. It’s important to remember that 31% of those surveyed said that they would take a different course if they had their time again. If you’re thinking about starting a degree, think long and hard about what it could add to your bottom line in the long term.

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The Art of the Counterfeit: Spotting a Fake

You always have to remember, Kiran Trivedi readers that one of the biggest threats to your personal finances is when you’re tricked into buying a fake product. In order to help protect you from the risk this brings, I thought this week I’d give you a few tips on spotting a fake.

Kiran Trivedi knows it’s not rocket science. If you are tricked into buying a fake product, especially a big ticket item like a fake designer piece of clothing, then you are blowing money on something worthless, and either you’ll simply lose money on something that is not going to add any value to your life, or you’ll have to fork out more money on buying a replacement.

This is bad enough – however there is more than one way to skin a cat, and as such, more than one way to be taken in by a con. An article by the BBC brought this to my attention, as it highlighted the top five cons tricksters run on you to make you part with some serious cash.

It was certainly illuminating. According to the news source, the top five cons that can cost you the most money are the fake solicitor, fake holiday tickets, fake debt help, fake job adverts and fake alcohol.

It’s easy to see why these cons would be so effective and so detrimental to UK consumers. They are all either essential or popular products/services, and thus not only can they bring in significant amounts of people, they can part them from a lot of cash.

Counterfeit bill in the US

Kiran Trivedi’s Top Tips

So if you want to protect your personal finances, what can you do? Here are a few tips straight form the Kiran Trivedi blog:

• Use your common sense: If something feels like a con, walk away, it probably is. 
• Research: Once again, use the internet to look up who you are dealing with. Research is everything!
• Identification: If you have any doubts, check for ID or official verification if possible (this usually depends on the industry involved).
• Caution: Protect your details, don’t give them out unless sure, avoid online banking and pay in cash when possible to minimise any damage a potential scammer could do.

The reality is that it is so easy to get scammed in the modern world- it’s happened to nearly everyone at one point or another. If you want to protect your personal finances, take precautions and always remember to do your research! A great place to start is the Kiran Trivedi Blog.

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ISA: You Really Need One

With the budget still fresh in all our minds, Kiran Trivedi readers, I want to hone in this week on ISA’s. You really need one. What are they and how can you use them to add a little extra to your budget in the long term?

There are so many financial products out there that promise great returns on your savings that sometimes you don’t even know how to begin to wade through the information to find the best option for you. The ISA is that option.

An ISA is an Individual Savings Account and they’ve actually been around a whole lot longer than you might think; 15 years. It’s an account that you can use to make a wad of cash on your earnings. So how can you actually do this?

Well, when the government first introduced ISA’s to the nation 15 years ago, they billed them as a way you can make money on your savings tax free. That’s what it still is today. You put money into your ISA account and the savings you make, based on interest rates, don’t get taxed.

It really is that simple, however there were a few caveats. Until the most recent budget, you could only put up to roughly £5,760 in per year. You also had to have cash and shares ISA options. You did have to pay some tax on your shares ISA.

However this new budget has brought some real changes. The limit of money that you can put into your ISA account has now been raised to £15,000 a year and you are now allowed to get rid of the shares option and just go with cash! So you really can make a bundle on savings!

Now we know that you can use it to make money, we need to know who is eligible to open an ISA. Well, pretty much everybody, as long as you have money to put into the account. According to the government guidelines, anyone over the age of 18 can open a cash ISA as long as they are a UK resident. You can even get a version for kids called a junior ISA.

So what does this mean for your personal finances? Well it means you can take your hard earned savings, put them into an account and if you wait a while, you can make hundreds, even thousands of pounds that you can then use to give you and your family a better quality of life.

This is why you really need an ISA, Kiran Trivedi readers. It’s a really simple way of making money, money that you can then use in any way you want. 

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