Mouthy Money co-editor Edmund Greaves married his now wife Ellyn in 2022. Here are six things they learned about money while planning their own nuptials.

Getting married was the happiest day of my life. But planning and saving to make that day the one of our dreams was laborious, stressful and, at times, very disheartening.

Through planning our own DIY wedding, we discovered a huge amount about ourselves and how we look after our money in the process. Here are six things that we learned.

1. Budget like you’re an accountant

Considering I work in the realms of personal finance media it was a natural fit for me to be the one who did the budgeting. I set us monthly savings goals and a created a spreadsheet to track the process of spending meticulously.

Every cost had to be accounted for and prices were scrutinised carefully to ensure we weren’t going above our budget.

Ellyn was very much the visionary and I, at times, felt like a penny-pinching accountant reining her in. This definitely caused tension between us but ultimately it was only really tight accounting for our money that meant we were able to achieve what we wanted.

But Ellyn also has an incredible eye for a bargain. For instance, the flowers cost us the grand total of £30 after she found a local lady in our area who made them essentially for fun via Facebook Marketplace.  

We did have to make some compromises, but it ended up as the dream wedding we had envisioned thanks to being very strict at all times.

2. Cashflow is king

One of the most useful things I’ve ever learned about money is that it is not necessarily about how much you have of it in nominal terms, but how much free cash flow you can generate to keep ahead of your costs.

It is something investors pain over with businesses and is a really important metric of a healthy balance sheet.

We both earn monthly salaries and just managed our cashflow accordingly, so as to always be able to pay for the right things at the right time, managing suppliers to ensure we never had too much asked of us at any one point.

We never started with £XXXX in the bank then figured out how to spend it. We started with £0 in the bank to spend and had to work out how to save for the right things at the right time to ensure all our suppliers were paid when payment was due without overstretching ourselves.

We pushed all our suppliers to give us firm “pay by” dates and tried to get them to spread out over time so we could plan accordingly for things like the venue, food and other big costs.

Meticulously planning our cashflow month by month meant that we never had to resort to using a credit card or other form of debt to get across the line. 

3. Work out how much you need to save, then add a lot more to that figure

Things went wrong, lots of things. This required money to fix. Plenty of it.

The total cost of our wedding came in just under £20,000. This is just over the £18,400 average cost of a wedding in the UK in 2022, according to Hitched.com. We had initially budgeted about £14,000, so ended up spending over 40% more than initially budgeted.

Once we had an idea of how much everything would (initially) cost, we pushed harder than this target and over-saved to ensure we had more than we needed.

The best-case scenario was that we’d end up with a load of savings leftover. The worst-case scenario could have been that we were left short.

Full disclosure, we did get help from Ellyn’s parents and grandparents too, which I freely concede made things easier, and for which we are extremely grateful.

But ultimately, we paid for around 70% of the event ourselves and wouldn’t have gotten over the line had we not saved more than we thought we initially needed (especially in relation to the next point).

4. Get costs in writing and hold them to it.

We started planning well in advance and lined up suppliers over 12 months ahead. At the outset we did this because we got engaged in the middle of the pandemic and wanted to wait until the world had calmed down a bit.

But we never got initial costs in writing (i.e. in a contract) and this was a huge mistake, especially as we went into a cost-of-living crisis in 2022.

Several providers, including the venue and caterer (two of the largest costs), hiked their prices on us at the last minute and forced us to dip into emergency funds less than a month before the wedding. They didn’t keep to their word and we but had no contract in place to protect ourselves.

Get one if you can and hold them to it. This mistake cost us over £1,000 to rectify ultimately.

5. Don’t be afraid to charge your friends and skimp on some things

We charged our friends for accommodation at the venue, a relatively small cost for them but something that saved us over £2,000 in total. No one seemed annoyed about it and giving it away for free just seemed overly lavish.

We also decided to encourage guests to bring their own liquor if they wanted to. We supplied wine, beer and soft drinks, and had plenty left over.

Getting the right number of bottles of gin, vodka, whisky etc was just impossible to discern so we left it up to people who wanted to drink hard spirits enough that they would bring it themselves.

Again no one seemed bothered – indeed quite a few people said it was a good idea. Better than having a cash bar too which just makes things more complicated.  

6. Pay someone to coordinate on the day

One of the best outlays we made, although far from the cheapest, was to pay someone to actually coordinate everything on the day in the background.

It meant that we were able to actually enjoy ourselves and not worry about whether the cake was in the right place, the right music was played at the right time, or the benches were where they were meant to be.

We also had a major disaster with the caterer on the day and our planner Claire ensured that plans were made to feed all of our guests.

Ultimately when you get married you end up spending all this money. If you can’t actually cherish the experience on the day then what was it really for?

Photo courtesy of Lauren Dillon Photography

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We may be through the worst of winter, but it doesn’t look like energy bills are coming down any time soon.

In 2022, the cost of energy in the UK increased by a staggering 65.4% and 128.9% for electric and gas, respectively¹.

These heavily inflated prices have led people to make changes to their daily living habits in their homes. But what changes actually make the biggest impact on energy prices?

Let’s have a look at some of the biggest energy drains in homes across Britain, and what we can be done to help reduce energy consumption².

1. Washing machines, tumble dryers and dishwasher – These appliances take the number one spot on the list, accounting for approximately 14% of household energy bills, according to the energy savings trust. The reality is we can’t get around needing to keep our clothes and dishes clean, but we can do things to reduce energy consumption.

Washing machines can be ran at a lower temperature (e.g. 40 degrees instead of 60 degrees), tumble dryers can be used less and clothes can be hung to dry (particularly if you’ve already got the heating on and can hang your washing near it), and dishwashers can be used on the eco settings.

2. Fridges and freezers – You may or may not have guessed, but the appliances responsible for keeping our foods constantly chilled take the number two spot, accounting for approximately 13% of the average energy bills.

If you’ve got an old fridge or freezer, it may not be as energy-efficient as newer ones are built to be. Unfortunately, there’s not much that can be done about reducing the energy consumption of these appliances as we have no choice but to have them run constantly.

But if you’re fridge and/or freezer has run its course and you are in the market for a new one, make sure to check their energy rating before purchase.

3. Electronics – Think TV’s, computers, game consoles or even the constant charging of electronic devices, these account for approximately 6% of a households energy bills.

There is always the option to reduce screen time and pick up a good old book to save energy, but this may not always be practical particularly for those who use these devices for work.

However, it is helpful to get into the habit of turning devices off when not in use. Similarly to fridges and freezers, do some research before buying new electronics to get the most energy-efficient ones available.

4. Lights – Household lighting also accounts for approximately 6% of the average energy bill. You may have heard it said before, but switching to LED lights truly is a great way to save money on the cost of lighting as they are 80% more energy efficient than the likes of traditional halogen bulbs. Furthermore, they last up to five times longer³.

5. Kitchen appliances – Cookers, ovens, microwaves, kettles, and the likes, account for approximately 4% of household energy bills. Some things to consider for this category is to use an air fryer instead of an oven if you have the option as they are more energy-efficient.

And last but not least, as a good cup of tea is the heart of the nation, good kettle use such as not filling it beyond the water that will be used is a good habit to get yourself into.

Although these suggestions may not make your energy bills significantly cheaper, it does add up over time and every little helps! And just think, an added bonus is that you’re not just helping your pockets, but improving your homes energy-efficiency is also good for the environment too.

Photo by Mohammad Esmaili on Unsplash

References

1. https://www.ons.gov.uk/economy/inflationandpriceindices/articles/costoflivinginsights/energy#:~:text=Electricity%20prices%20in%20the%20UK,of%20the%20annual%20inflation%20rate.
2. https://energysavingtrust.org.uk/top-five-energy-consuming-home-appliances/
3. https://energysavingtrust.org.uk/a-quick-guide-to-leds-ahead-of-the-halogen-bulb-ban/

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The rising cost-of-living is still biting, increasing the need to stay on top of our finances.

Here are some of our favourite stories from around personal finance this week to help you get your head around money.

Pay rises at fastest pace in 20+ years, still below inflation

Michael Race writes for BBC News, as wages grow at the fastest rate in more than 20 years yet fail to keep up with rising prices.

Average pay rose by 6.4% between September and November 2022 compared with the same period in 2021.

Private sector wages grew by 7.2% – a large gap with the public sector which grew by 3.3%, according to the ONS.

However, living costs are at a 40-year high, with the current inflation rate at 10.7%.

The real value of people’s pay is continuing to fall, as each pound buys you less – becoming one of the biggest pay cuts in real terms this century.

Which was the cheapest supermarket in 2022?

Aldi was the cheapest supermarket in 2022, writes Hannah Walsh for Which?.

Which? compared prices of 48 popular groceries, with Aldi found to be the cheapest store at £81.63, followed by Lidl at £83.24. The same shop at Waitrose was £112.62.

Of the big four, Tesco was the cheapest supermarket at £93.42.

They also compared a larger trolley of 149 items, which included a large number of branded items that cannot be found in discounted supermarkets like Aldi or Lidl.

Asda was the cheapest traditional supermarket, with the cost being £355.62 for a large trolley.

Aldi has been the cheapest supermarket for the last seven months, thereby being crowned as the cheapest supermarket of the year 2022.

Four things you’re paying too much for – and how to fix it

Consumer rights expert Martyn James writes for Mirror, running through ways you can cut costs for services you’re overpaying for.

Insurance

Many forget to cancel out old insurance policies while signing up for new contracts. Don’t pay for policies you don’t need!

If you have separate policies for each device you own, check for multi-gadget policies which could save you over £600 a year.

Broadband

Regulator Ofcom says that over seven million people are ‘out of contract’ with their broadband deals, generally paying higher than contract packages.

It’s better to switch to longer period but bear in mind that there are high exit fees if you want to break such contracts early.

Overdrafts

Overdrafts tend to be the most expensive form of borrowing, with higher rates of interest starting around 20% and hitting 40%+.

Subscriptions

From gym memberships, to streaming or cloud storage services- we often are unaware of how much this is emptying your pockets.

Go over your bills and end any unwanted subscriptions, or switch to other cheaper sources, saving £100s every year. 

Photo by Franki Chamaki on Unsplash

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Mouthy Money Your Questions Answered panelist Helen Morrissey answers a reader’s question about their options when it comes to saving for a retirement if you’re self-employed.

Question: I’m 30 years old and self-employed. I don’t have a pension but would like to start saving around £250 a month for my future. Where should I start?

Answer: There are lots of personal pension providers out there so it’s worth doing your research to make sure you get the right plan for you.

Different providers will charge different fees and it’s important you understand what you are paying for and not handing over money for things you don’t need.

First let’s look at how much you can put away. You mention you want to contribute around £250 per month which is great – many self-employed people contribute on a more ad-hoc basis as their income rises and falls. If this is the case, it’s worth making sure your provider allows you to make these more irregular payments.

It’s also important that as time goes on you revisit your contributions on a regular basis and if you can increase them then this can have a huge impact on how much you end up with at retirement.

Investments are another key factor. Many people don’t feel confident making investment choices themselves and if this is the case providers will offer a default option which is designed to suit the needs of the majority of people.

However, if you have strong ideas about how and where you want to invest it is important to check your provider can meet your needs. There should be plenty of information about the options on offer on the provider’s website.

Most providers will offer you a wide range of investment options though if you want more flexibility, a self-invested personal pension (SIPP) may be a better option for you rather than a standard personal pension.

With a SIPP, you can make changes to your investments whenever you like, and you can either choose to manage your own investments or pay a financial adviser to help you.

The service you receive is also an important consideration. Pension providers will offer various tools and resources but take a look at their different offerings.

Some providers will offer a lot of tips and research into different investment options for instance which you might make a lot of use of. What kind of support does the provider offer online or over the phone is also worth considering.

Pensions are the main product people use to save for retirement but there are also other options worth considering.

The Lifetime ISA (LISA) was introduced a few years back to help people saving for retirement or for their first home. These products are available to people between the ages of 18-40.

Each year you can contribute up to £4,000 and benefit from a 25% government top up. This top up acts in a very similar way to the basic rate tax relief you get on a pension contribution so for people who don’t benefit from an employer contribution to their pension – such as the self-employed – then it’s a good option.

Added to this you can access the money from a LISA early if needed though you will be subject to a 25% penalty if you aren’t using it for house purchase or retirement. This penalty is a drawback, and we would like to see the government revisit it but if you did experience a big drop in income and needed to access the money you could do so.

This isn’t the case with a pension as you can’t access the money until you hit age 55. Another issue to consider with a LISA is that you can only contribute up until the age of 50 whereas you can contribute for longer to a pension, so this is also worth considering when weighing up your options.

Helen is a senior pensions and retirement analyst

Helen is senior pensions and retirement analyst at Hargreaves Lansdown. Prior to joining HL Helen worked at Royal London as a pensions and personal finance specialist working with the media to raise awareness of important retirement issues. Prior to this she was an award-winning journalist with 15 years’ experience of writing and editing trade publications specialising in pensions and retirement.

Photo by Ian Schneider on Unsplash

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Most people feel the squeeze in January after the Christmas period, and it’s still a long time until payday!

But we aren’t the only ones feeling the pinch… restaurants and high street shops see a fall in foot traffic where people are less likely to spend.

That’s why January is a hot spot for deals and discounts being offered. Even if you’re on a budget, you can still treat yourself with deal.

For the whole month, you can get a whole pizza for £5 at Franco Manca. Here’s everything you need to know.

What is in the deal exactly?

Franco Manca – a fast growing pizza restaurant is offering everyone £5 pizzas this January when eating at one of its restaurants.

The offer is valid for up to six people at a table, and you can pick any pizza on the menu (including specials) to get for £5 each.

The usual price of pizzas at Franco Manca can cost over £10 each, so it’s a good saving.

To get the deal, you’ll need to fill out a form on the Franco Manca website, and download the app. Within the app, there’s a tab called ‘rewards’, and once you’ve signed up and filled out the form for the voucher, you’ll find it added there.

It’s valid until the end of January, and is one use per customer… but you can get your friends to also get the coupon, which will apply for the whole table if you wanted to go more than once.

Why should I care?

Eating out at restaurants isn’t an essential, but it’s a nice treat for the family – and January is the time in which some of the best restaurant offers will be seen.

Takeaway pizzas from places like Dominos or Papa John’s, even after offers won’t be as cheap as £5 for a whole pizza, and the quality at Franco Manca are much better.

It doesn’t take much effort either to get the deal, when you can show the coupon from your phone.

What’s the catch?

The coupon is valid for eating in only, and can’t be used for takeaway or delivery.

If you’re ordering a Gluten Free base or added any extra toppings to your pizza, you will be charged extra.

What other options do I have?

Currently there are offers for 50% off Harvester & Toby Carvery restaurants. This works in the same way, where downloading the app can get you the voucher. It’s available Monday to Thursdays for breakfast, lunch or dinner.

Also just released, students can now get 20% off food at Nando’s indefinitely. To claim it, you’ll need to add your school email account to Nando’s rewards, and you can get 20% off your food. This works on orders up to £50, so the maximum discount would be £10.

Where can I find out more?

To get a £5 pizza, head over to the Franco Manca website and fill in the form. You have until the 31st January to claim it – so grab it while you can.

Photo by Brenna Huff on Unsplash

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Mouthy Money Your Questions Answered panelist Elena Todorova answers a reader’s question around deciding when the right time is to buy a home.

Question: I’m planning on buying my first house this year, but with interest rates soaring, is it better to wait and if so, until when?

Answer: First, and foremost, a house is a home but then, it is also an investment.

In normal times, when interest rates are low and house prices are rising, it makes sense to become a homeowner and to occasionally check on websites like Zoopla to see how the value of your home has grown.

However, you are currently looking to buy in a very different market from the one we have got used to over the past 14 years.

Although interest rates are on the rise, there are also expectations that house prices will fall and therein lies an opportunity to time your purchase and buy at the lower end of the market.

Depending on how soon you wish to buy, you might want to keep your finger on the pulse of your local market: follow the properties coming up for sale, see if there any reductions, speak to agents and get to know them well.

I always recommend using price per square foot or square metre to compare prices. Of course, you need to factor in other aspects such as the state of the house, whether it’s outdated versus newly refurbished, the location, size of garden, or whether it’s freehold versus leasehold. You need to be patient and do your research properly, but it should pay off.

The type of property is also important. A house is likely to retain its value better than a flat, even if they are in the same location.

If you are purchasing a flat, the saturation of the development will also influence how much prices will be affected in a downturn, how much they could fall and how quickly. You can still get a great place at competitive price, but perhaps you will have to wait a bit longer for prices to then recover.

Mortgage rates are on the rise, and some shot above 6% following the shock mini-Budget in September. The market has since steadied, with five-year fixes back below 5% and some expectations that they may reduce below 4% in coming months.

Current expectations from the Office for Budget Responsibility (OBR) are that Bank of England’s base rate may still increase to 5% next year, when it is expected to peak before falling back. It is unlikely interest rates will return to the rock-bottom levels of recent years, with expectations that they will steady around 3-4%.

Your dilemma is whether to buy a property at a high(er) interest rate or continue to rent (assuming you don’t live with relatives). If you continue to rent, you may also have to allow for higher rents in coming months as they are on the rise, which may eat into your deposit.

Timing the market and trying to predict when property prices are at their lowest is notoriously difficult and there are many tales of people who have missed while they took a “wait and see” approach.

Ultimately, if you have found a property you want to buy, are able to negotiate a good price and can afford to buy it, then now is as good a time as any to get on the ladder.

Owning a property provides a steady home, while you can secure your monthly payments with a fixed-rate mortgage for a number of years as your expenses and income stabilise.

Rates have increased but with a potential correction in the housing market, you may be able to grab yourself a bargain and benefit from future house growth too.

Elena is a fully qualified IFA

Elena is a fully qualified IFA (Independent Financial Adviser) specialising in residential and investment mortgages for UK residents, foreign nationals and ex-pats. With over 20 years experience in London and UK mortgage market, she has the expertise to deal with diverse and often complex cases.

Photo by Naomi Hébert on Unsplash

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Christmas can be hard on our finances. 

Spending money on presents for friends, family, and multiple Secret Santa’s. Fun events like Christmas parties and winter-themed days out. House decoration, party food, mulled wine… the list goes on. 

Then January arrives and people are feeling stressed and worried about money. 

Stats show the average person in the UK gets into £439 of debt over Christmas. And it takes an average of four months to get their finances back into shape after the festive season.

Our credit card bills are high, our bank balances look sad and there’s an extra week to wait until payday for many. 

Not an ideal way to start a New Year. 

So how do we avoid the January financial blues and get ready for the rest of the year? 

Tip 1 –  We know every year that Christmas arrives on the same date so plan ahead

Think about the next Christmas. It seems ridiculous, I know but if you start a sinking fund and save a small amount every month, it can help you feel prepared. If you put away £50 a month, by December you would have £550 saved. Your worries for the next Christmas would be gone!

Tip 2 – Trust that this feeling is not forever

Mindset is a huge part of the struggle, because we’re paying the price now for all the fun stuff we did in December. This stops us from doing fun things in January, which leads me onto the next tip

Tip 3 – Find cheaper ways to bring yourself joy

The days are dark and gloomy, and it is the longest month EVER. Hanging out with your friends, and doing little things that bring you joy is important for our wellbeing. Schedule in cosy winter walks, or movie marathons at a friend’s house. 

Tip 4 – Use this time wisely!

It is so easy to get caught up in the busy-ness of everyday life and neglect our finances but if you are at home more in January, then there is no excuse. Make financial goals, get excited about what is possible this year, start planning ahead! 

There are so many different ways to set financial goals, but they’re so impactful and can be a beacon of light that guides us towards a brighter future (cheesy, but it is true). 

Tip 5 – Practice gratitude for what you have. 

The festive period can be amazing but flies by so quicky that sometimes we don’t always appreciate what is going on when it happens. Take a moment to be grateful for the amazing food you ate, the people you spent time with, the gifts you gave others. 

Practicing gratitude is the quickest and most effective way to pull us out of a slump and raise our vibe – scientifically proven!

Let this January be different and get ready to smash your goals this New Year!

Photo by Kelly Sikkema on Unsplash

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The new year is traditionally a time to make fresh plans and resolutions. And that should certainly apply to your finances as well.

BIlls are rising rapidly at the moment, including gas and electricity, food, petrol, and so forth. For many – perhaps most – of us, our incomes aren’t increasing fast enough to keep pace. Of course, that can be pretty scary.

There ARE things we can do to keep our financial affairs under control, though, so in my article today I’m recommending a three-pronged strategy.

1. Maximize Your Income
2. Minimize Your Expenditure
3. Apply Smart Budgeting

I’ll look at each of these in turn…

Maximize your income

In other words, ensure you have as much money coming in as possible. Even if you’re living on a fixed pension, there are still things you may be able to do to boost your income and improve your financial position.

My first tip is to check you’re getting all the welfare benefits you’re entitled to. I recommend trying the Turn2Us online benefits calculator. This asks a series of questions about your finances and personal circumstances. It then works out which benefits (if any) you may be eligible for.

Another top tip is to check your tax code. As you may know, this code incorporates your tax-free allowance. It tells your employer (or pension provider) how much tax they should be deducting every month. If your code is wrong, you could be paying more tax than you need.

You should be able to find your tax code on any payslip or pension statement you receive. This article on the popular Money Saving Expert website will tell you exactly what the code means. If you think your code may be wrong, contact HMRC and ask them to look into it.

You could also consider applying for a part-time job. This might range from a Saturday job at a local supermarket or DIY store to gardening, delivery driving, leafleting, and so on. 

Part-time work is generally low stress. As well as giving your income a boost, it also has the benefit of keeping you mentally alert and meeting new people and potentially new friends. Part-time jobs are often advertised locally or you could search on websites like Indeed.

Finally, you could start a ‘side hustle’ to give you an additional income stream. Again there are lots of options here, from doing online surveys to entering TV quiz shows!. You can see many more ideas in the Earning category on Mouthy Money.

Minimize Your Expenditure

The second strand of my strategy involves reducing your spending. Again, there are lots of ways you may be able to do this.

One method I want to mention here is using price comparison websites. Two of the best known are Go Compare and Compare the Market.

These sites let you compare prices for a range of services. They include home insurance, car insurance, travel insurance, holiday insurance, mobile phone services, broadband internet, pet insurance, and more.

At one time they used to let you compare energy suppliers as well, but with prices so high and so few deals around at the moment, they typically can’t help much with that right now.

Nonetheless, if you’re looking to save money on services like these, price comparison sites are well worth a look. I would offer just two pieces of advice here. First, use more than one service.

All sites cover a different range of suppliers and sometimes they negotiate special deals for their members. So you can and probably will get quite different results from different sites. 

The other thing is to check out cashback services as well. These are services like Topcashback and Quidco. The way these sites work is that you start by signing up as a member, which is generally free.

Then when you need to buy something you start at the cashback site and find a supplier listed there who provides whatever product or service you need. Click through that link and make a purchase, and if everything goes as it should, cashback will appear in your account in due course.

• When I checked recently, I found Top Cashback was paying £25 cashback to anyone who clicked through to Compare the Market and took out a policy through them. So in this case, by going to Topcashback first, you would get a £25 cash rebate in addition to saving money with the price comparison site itself. It’s often worth combining price comparison sites with cashback sites to get the best possible deal.

Again, in this article I only have room to skim the surface of money-saving methods. I highly recommend checking out the Saving category on Mouthy Money for many more ideas and strategies.

Apply smart budgeting

This is the final strand of my strategy. Having maximized income and minimized expenditure, smart budgeting means prioritizing what you spend and – as our American friends say – getting the most bang for your buck.

One thing I strongly recommend is that you perform a spending audit. By that I mean taking an in-depth look at what you are spending over, say, a three-month period. 

Look especially for any subscriptions or other regular payments and see if they are things you could do without. And yes, I’m afraid that does include charitable donations! 

When I helped elderly friends do this recently, I found they had six standing orders to local and national charities which they had accumulated over the years. None was huge, but taken together they came to almost £50 a month, which was money they could ill afford.

So I had to advise them to cancel them. They said they’d feel terrible doing that, so I told them to decide which one was the most important to them and keep that but cancel all the others. That was a compromise they could live with. In the end they kept a small monthly payment to a local animal charity and cancelled the rest.

There may be other things you don’t need as well, like insurance policies that are no longer relevant or memberships you no longer get any benefit from. Again, my friends paid a membership fee for a local botanical garden by standing order but they hadn’t been for over a year.

I had to say to them, if you’re only going once or twice a year, it’ll be more economical to pay an admission fee when you go. Going through all your outgoings may well highlight opportunities for reducing your expenditure like this.

It’s also important to look at things like mobile phone and broadband bills. Unfortunately, if you don’t take a proactive role, these tend to go up and up. Although in theory suppliers aren’t supposed to penalise long-standing customers, it definitely does happen.

Earlier this month I noticed my Virgin Media broadband bill had gone up to almost £50 a month. So I phoned and said I was thinking of switching. Miraculously, they found me a new deal on £28 a month for the next 18 months, almost half what they had been charging.

It shouldn’t be necessary to do this but sadly if you’re a loyal customer and never complain, it’s highly likely you’re going to be – to put it reasonably politely – shafted.

Finally, I want to say a word about savings. Obviously in these cash-strapped times saving is hard. But if you don’t have any money stashed away, it can make you very vulnerable if the unexpected happens. 

A general guideline is that everyone should aim to have at least three months of their normal outgoings available in easily accessible form. An easy access account is likely to be the way to go here, and you should be able to earn a bit of interest on it as well. 

Interest rates for savers, as I’m sure you know, are pretty poor at the moment, but the Money Saving Expert website – mentioned earlier – will show you who is paying the most. At the time of writing the best interest rate available on a no-strings-attached easy-access savings account was 2.86% with Zopa. But that may have changed by now, so it’s worth looking to see who MSE are currently recommending.

For many more smart budgeting tips and ideas, check out the Spending category on Mouthy Money.

Closing thoughts

Summing up, my recommended strategy for boosting your finances in 2023 is three fold. First, maximize your income. Second, minimize your expenditure. And third, use smart budgeting to ensure that you deploy your financial resources as efficiently as possible.

I’ll close with one last piece of advice, and it’s arguably the most important of all. As it (allegedly) says on the front of The Hitch-Hikers Guide to the Galaxy, DON’T PANIC.

These are undoubtedly challenging times, and the media love nothing more than a good scare story to make everyone terrified. But panicking seldom achieves anything and is often counter-productive. When times are hard, it’s more important than ever to keep a cool head and deal calmly with the situation. 

Whatever our circumstances, as I hope I’ve shown above, there are lots of things we can all do to help keep our finances on an even keel.. 

Keep visiting Mouthy Money for much more valuable advice about boosting your finances through 2023 and beyond!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by Microsoft 365 on Unsplash

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When it comes to saving money, it seems straightforward on what to do right?

Every month when you get paid, put money aside into a savings account – BAM, your savings will grow.

But we all know it is not actually as easy as that sometimes….

Maybe we have a busy month, and we dip back in and take out money we saved and ruin our progress.

Or we get paid, and think “I have got a busy month, I will save whatever is leftover” And yet we never have any left at the end.

Or the goal we have feels so big and overwhelming, that we never even start saving in the first place because it feels un-achievable. 

Talking about saving it is one thing, but DOING it is another. 

So how do we actually save money and see progress?

The answer lies within you. It starts with your mindset.

• You have to build a savers mindset
• You have to believe you are someone capable of saving. 
• You have to believe you are worthy of holding onto money
• You have to set realistic yet exciting goals to work towards

Far too often we set these big (and sometimes scary) goals for ourselves; to save £30,000 for a house deposit; to save £20,000 and travel the world; to have enough saved to quit our jobs and set up a business. 

Yet deep down on a subconscious level we don’t believe we are worthy of having, or capable of saving that much money, leading us to self-sabotaging behaviours.

It becomes a never-ending cycle. New Year’s Eve rolls around and we set ourselves resolutions of “this year I WILL save more money” but are confused how another year has gone by where we’ve struggled to save… 

It is time to break the cycle!

I want you to imagine your future self, with your ideal career, dream home, and lifestyle – how would they handle their money? How would they approach saving money?

Once you are connected with this future version of yourself – the you that has achieved that big exciting life goal you want to reach – you will start to feel on how to act, and what you need to be saying and doing to get there. 

Embody this behavior of your future self. Become the person who IS a saver, who commits to their goals, who prioritises the feeling of delayed over instant gratification. 

Because the truth is, we can only achieve the big, exciting things we want in life, by practicing the delaying of our gratification and growing our savings over time and sometimes, that takes sacrifice. 

But if the sacrifice comes at a much greater return on your time investment, is that really a sacrifice?

So don’t let next year be another repeat of the years before. 

Change your mindset towards saving and watch them grow!

Photo by Sasun Bughdaryan on Unsplash

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With skyrocketing energy bills and mortgage rates, it’s becoming more important to balance your monthly income and spendings.

Here are some of our favourite stories from around personal finance this week to help you get your head around money.

Five things you didn’t realise were affecting your credit score

Nicole Garcia Merida, writing for Money Week, highlights tips to ensure that you’re keeping your credit score in good shape by avoiding key mistakes:

1. Taking out a mortgage or joint account with somebody with bad credit: Couples often combine their finances in joint accounts and take mortgages together. However, if you are linked with somebody with a bad credit score, this can negatively impact you.
2. Avoiding credit: A good credit score comes with a mix of credit products and being able to show lenders that you can make timely repayments. If you do not take any credit at all, you cannot show them that.
3. Applying for too many credit cards: Multiple applications for credit suggest that you are in desperate need of money and have a high risk of default.
4. Receiving a county court judgement (CCJ): A CCJ is registered when somebody claims you owe them money. This can seriously affect your score and take around six years to clear.
5. Not being registered to vote: Lenders will find it harder to access and verify your details and identity if you are not on the electoral register. Being on it will record your personal data and make the process easier.

You can use credit reference agencies like Equifax, Experian, and TransUnion to check your credit score.

Consumers save nearly £3m by reducing energy use at peak hours

Consumers saved nearly £3m by reducing energy usage throughout peak times according to National Grid’s latest data on its money-saving scheme. 

Nicole Garcia Merida, writes for Money Week, to help readers better understand why National Grid is offering the scheme, and how to save energy efficiently.

The electricity system operator (ESO) is worried about the strain on electricity networks with plunging temperatures in December. Paying customers to reduce energy consumption is their easiest way to balance the system.

Running appliances outside of peak hours (between 4-7pm) could lead to credit on bills, and ultimately lower monthly energy bills for your household.

Money Week also presents several comparisons between heating modes and dryer options for you to determine which one works best for you.

What 12 months of interest rate rises did to our finances – and what to do next year

Rachel Mortimer, writing for the Telegraph, takes you through the 12 months of 2022 that changed your finances and helps you prepare for what’s coming in 2023.

• Mortgages

The Bank of England made its ninth rate rise on Thursday bringing the interest rate to 3.5%. First-time and recent buyers have been affected by these rising interest rates with lesser opportunity for them to add equity to their property.

People are spending larger proportions of their monthly incomes on mortgage payments with several unable to afford the rise.

• Savings

While most lenders passed on every bank rate rise onto their mortgage customers, there are only a few that have done so for their loyal savers.

With inflation at 10.7%, £10,000 will be worth £8930 in 12 months.

Banks like Santander, Barclays and Lloyds increased some variable rates by 2.9% but only passed on minimal rises of 0.39-0.49 percentage points to customers with £10,000 in their easy and everyday saver accounts.

• What 2023 will bring

Bank rates are expected to peak at 4.5% in the first half of 2023.

However, lenders have started dropping their prices in recent weeks. Most brokers in the market believe that the worst is over and the end of 2023 will present a more stable situation.

Photo by Microsoft 365 on Unsplash

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