Mouthy reporter Dana Raer meets financial influencer Tori Dunlap, founder of Her First 100k, and finds out how she turned her idea into a multimillion-dollar business, financial feminism and access for women to the world of money.

Not many young adults in their 20s have a grasp on their purpose in life, but from my first conversation with Tori Dunlap, I realised that she does.

“I was put on this earth to fight for women’s financial rights,” she says confidently after introducing herself, her money and career coaching business.

Tori is an American ‘finfluencer’ – financial influencer –  who has shared her journey on social media of saving and investing $100,000 by the age of 25.

Her media platform, Her First 100k, has taken the world by storm and gathered a following of millions, all while she turned it into a multimillion-dollar business.

Her mission is simple. To inspire women to build their wealth, ask for a pay rise, negotiate, invest, and fight the patriarchy, and all the unjust systems we all exist within.

Now at 26, she has enough money to retire. But her journey does not stop here – she continues to fight for women’s financial rights.

Turning her side hustle into a career

After growing up with parents who were committed to having a degree of financial stability, Tori developed a great sense of financial awareness.

Her father had a 9-5 job, worked for the healthcare he needed, or the right 401k match – a US savings account that allows employees to contribute a portion of their wages to individual accounts (similar to a pension in the UK) – all stable choices in order to take care of his career, thus family.

But when Tori realised her corporate, 9-5 job at a marketing company wasn’t right for her, she also understood her decision to quit was riskier than anything she’s ever done before.

She followed her gut feeling, though, and quit in 2019 when her side hustle project started doing well.

She says: “Honestly, the universe kind of made me quit. When I was on the precipice of quitting, it literally came down to an issue with my corporate job and certain leadership at the corporate job not liking how successful my business was.

“I saw the decision to quit as a massive risk. When really it honestly wasn’t that risky. I had hit my 100k already. Part of the Her First 100k origin story was my journey into my first 100k.

“I was 25 years old, I had a business that was already making me money, and I had momentum. But this felt scary and risky because I grew up picking the stable choices in life. And even though this wasn’t all that risky, it felt like the riskiest decision for me.”

Her First 100k is now a multimillion-dollar business, inspiring women to take the risk and ask for a raise, more benefits, or even quit to focus on passion projects.

“Now I’ll never have to get another corporate job again, which is the coolest feeling,” she says. “I would have made that risky decision 100 times over, it was 100% the right decision for me.”

What is financial feminism?

Financial feminism is the desire for financial equality for women. The movement is everywhere.

From TikTok to Instagram and other digital platforms, the internet is filled with stories about women building their wealth, getting that dream job and asking for pay rises.

Despite this, the investing and pay gaps between men and women persist.

Women are paid still less than men, with the average gender pay gap for all workers, both full- and part-time at 15.4% in the UK in 2021, according to the Office for National Statistics (ONS).

A gender pension gap also appears when women are between the ages 25 and 34 – around the time those who become mothers typically have their first child (age 29), data published this week by interactive investor suggests.

‘The financial world is still inaccessible to women’

Women are more likely to worry about finances, and their future, and less likely to consider themselves financially knowledgeable or take responsibility for household decisions, according to research from HSBC.

Tori’s work is focused on shifting this attitude and give confidence to women to build their wealth, even if “the financial world is still inaccessible to women.”

She gives a practical example: “In New York, if you go to the Financial District and the New York Stock Exchange, there is a bull sculpture. That’s the symbol of the stock market doing well,” she says.

“It is now a ‘tradition’ that people, generally tourists, will come up and touch the bull’s private parts for financial prosperity. And if that’s not some patriarchal bullshit, I don’t know what is.

“So, of course, women don’t feel comfortable in these spaces, because not only are they not built for us, but they also actively look to remove women.

“There’s even this narrative around talking about money as a taboo, or seeing it as difficult, which is not. Finance is not difficult to understand, but we’re made to think that way.”

Regardless of your gender, Tori says that everyone who has equality as a priority should be a financial feminist.

“I think being a financial feminist means showing up for yourself and bettering your own money,” she says, “and then using those tools, using that stability using that money to be able to change the world around you.”

Even if she can retire, she chooses to continue her work and to carve out space around the financial industry specifically to hopefully make changes happen.

Photo by Christina Morillo

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Social media has given a rise to a new type of influencers – also known as financial influencers, or ‘finfluencers.’ We ask why young people trust them so much?

Finfluencers use platforms such as TikTok, YouTube, and Instagram to share personal finance tips and hacks to the younger generation.

MRM Communications, in partnership with Mouthy Money has published a brand new Young Money research report, surveying 250 young people between the ages of 18–29 to try to get a better understanding of their financial habits.

Almost three quarters (74%) of young people say they trust finfluencers’ information, out of 61% of respondents who said they follow social media financial influencers, according to the report.

Cem Balci, consultant at MRM, says: “The pressure on incomes and the rising cost of living also mean that younger generations are looking for fast, accessible and digestible guidance on how to most effectively manage their money.

“Certainly, there is still a place for trusted experts and traditional financial advisers, but it is also clear that viral media may now be the best way of reaching and interacting with younger adults.”

The report shows that almost half (49%) of respondents get their financial advice from friends or family.

Just a quarter (25%) go to financial advisers for their insight, while 14% actively look to social media or financial influencers for their advice.

Why finfluncers?

There’s been an uptick in the number of finfluencers on social media platforms in recent times, who are followed by young people for their advice on handling debt, saving money and investing.

When asked what action they took after seeing finfluencer posts, the study shows:

• two in five (40%) chose to reduce their spending

• 38% were inspired to invest in various assets

• 32% used a buy-now-pay-later scheme

• 29% created a financial plan or budget

• a quarter (25%) paid off debts

• 10% said they have never acted on a finfluencer’s advice.

Most respondents first learned about crypto via friends or family (33%), through social media or an online influencer (30%), or in the personal finance media (22%).

We spoke to Tori Dunlap, a finfluencer in the US, to understand why so many young people trust their advice.

She says: “I think the financial advice is much more accessible. We’re meeting people where they are. If you’re just scrolling through Tik Tok, and you see a financial video, that’s a lot more accessible and a lot more relatable than making an appointment to go see a financial adviser.

“You need somebody to give you some information, keep you accountable, and be able to guide you. You don’t need somebody to manage your money for you or to help you pick the next hot stock.

“We also don’t speak in jargon. There’s a lot of great financial advisers out there, but there’s plenty that have been doing this for a really long time and don’t realise that the words ‘diversification’ or ‘asset allocation’ or ‘shorting a stock’ are all very, very jargony and make no sense to the average person.

“One of the biggest reasons why financial influencers have been successful is because we meet people where they are, on social media.”

After saving $100,000 by age 25, Tori quit her corporate job in marketing and founded online financial blog Her First $100K to fight financial inequality by giving women actionable resources to better their financial situations.

To find out more about young people and their money, read the report from MRM Communications in partnership with Mouthy Money

Photo by Brooke Cagle on Unsplash

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Small businesses are directly impacted by the cost of living crisis given their size and lack of resources compared with larger rivals.

Many small business owners say they are operating below potential too, given global supply chain disruptions, labour shortages and rising wages, according to the Federation of Small Businesses (FSB).

What’s more, the FSB says that operating costs had risen for almost nine in 10 businesses compared with this time last year.

Martin McTague, chair of the Federation of Small Businesses (FSB) says: “It’s been decades since we’ve seen input costs surging at this kind of unmanageable rate.

“The discrepancy between the rise in costs for firms and consumer prices gives you some sense of how small business owners are taking the hit directly – in a lot of cases, reducing their take home pay or scaling back investment and expansion rather than passing on higher costs to customers.

“But a lot of small businesses are left with no choice but to up prices as their overheads spiral: the cost of living crisis starts with a cost of doing business crisis.

“We’re encouraging all firms to check what support is out there, including at the local level where some Covid support grants remain unspent.”

How are small businesses coping with the cost of living crisis?

Mouthy Money spoke to Kadian Pow, owner of Bourn Beautiful Naturals, a business that promotes solution-based products for textured hair and sensitive skin.

She started her business as a side hustle five years ago when working part-time and completing her studies in Sociology.

She says: “I started making products to solve my own curly hair challenges and soon began doing so for my friends and family.

“I found that my way of caring for black women, to make their everyday lives better, and provide them a sense of joy, something that they could depend on.

“Every product that exists is because someone needed it. I amassed a cadre of products that target Afro curly textured hair and sensitive skin.”

However, high costs for products and transport put a heavy strain on the growth of the business and made her rethink her strategy.

Pow says: “We’re in this very lengthy process of scaling up. So, a lot of products are made in our converted home studio, which means we’re dealing with the increased price of gas and electricity.

“We’re also dealing with increased transportation costs for some raw ingredients and packaging, so we’re having to pay more for those things.”

Last week Pow made the decision to increase prices for most of her products to keep up with rising inflation.

“In some cases, the cost of some raw ingredients are also going up. We’re working with a manufacturer right now to produce some of our formulas in greater quantities.”

The sunflower oil crisis

The war in Ukraine has disrupted supplies of sunflower oil to the UK, according to the British Retail Consortium (BRC).

Pow has been directly affected by the sunflower oil crisis, as she has products with this ingredient, including a lotion for eczema and soaps.

She says: “I had to look at the scientific breakdown of the different components of sunflower oil and then try to find another oil that would be comparable in its composition, as well as not be highly irritable to the skin.

“Those are all the considerations that I have to make, on top of it still being cost effective. I don’t want to raise the price of these products because of what is hopefully a temporary crisis.”

As a cost-effective alternative for sunflower oil, Pow eventually found rice bran oil to have a lot of good nutrients for the skin, such as Vitamin E and K.

Photo by bruce mars on Unsplash

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For many, a side hustle starts as a hobby. For others, it could’ve been another stream of income, or a long-due passion project just waiting to happen.

No matter the reason why entrepreneurs start their own businesses, there are some who have succeeded in creating a brand that sustain them financially, by turning their side hustles into a full-time job.

How did they do it?

Mouthy Money has spoken to three entrepreneurs who have quit their own full-time, stable jobs to focus solely on their side hustle.

First in our series is Olamide Majekodunmi, a 24-year-old entrepreneur, who started her own side hustle when working full-time for an events company.

After a few months, she reached a point where her side hustle could sustain her lifestyle financially – so she quit her stable job to take a leap into the world of self-employment.

Now, she is the founder of All Things Money, a personal finance platform that teaches young adults how to manage their money effectively, making finance accessible to the younger community.

She says: “It was a little hobby that I did during lockdown to cure my boredom, and then it just started to grow bigger and bigger. I decided to focus solely on my side hustle, so I handed my resignation in February this year. A month ago, I started working self-employed full time.

“I’m very fortunate, I still live at home, so I don’t have huge rent and bills to pay for. One thing that I definitely made sure I had is at least six months’ worth of expenses covered. So, if my business didn’t make any money in the next six months, I knew I could at least cover the cost of living for the next six months.”

Her mission in business was clear from the start. Her friends have always depended on her for financial advice, which made her realise that there isn’t much support for the younger community when it comes to finance.

That’s why she took it upon herself to create an online community that caters to young people, in the search of smart financial decisions.

She says: “I’ve always been quite good with managing money, always had a clear budget and saved my money.

“During the lockdown, when the stock markets crashed, I was at university, and didn’t have spare money to kind of invest, but I still saw an opportunity. I got some of my friends investing.

“And I thought if I can teach my friends how to invest, why not teach others how to do the same? That’s why I kind of created this online platform to kind of help encourage people to do it.”

Olamide’s top tips to having a successful side hustle

‘It’s all about organisation and open-minded sacrifice’

Olamide admits that starting a business and being self-employed comes with more challenges and sacrifices than she expected.

She says: “I think it’s all about organisation, and a lot of sacrifice. For me, I had a lot of late nights, editing a podcast, and creating ideas creating content.

“There’s been times where I eschewed going out my friends. At the very early days of All Things Money, I used to host a workshop for free to get clients on board and add to my roster of the things I’ve done instead. I don’t do free workshops anymore, but it was a great way to network with potential clients at that time.

“It does require a lot of sacrifice. I think that is something people need to if they want to commit their time to it.”

Organisation makes it better for her though. She says it’s very important to treat your business as a 9-5 job, and be disciplined with your time.

That way, you get to enjoy some weekly outgoings with friends, or time well-spent with family. But it does require practice to get that work-life balance once you turn your side hustle into a career.

Have multiple streams of income

Instead of relying solely on the income of your business, Olamide recommends having multiple streams of income.

She says: “I also think it’s important to be open-minded as well in terms of where you’re getting your income. You have to realise, especially when you’re able to have a business, that there isn’t going to be just one revenue stream, you can have many ways to earn income within your business.

“For example, if you have a candle making business, you can also make an eBook for how to make candles. So you can sell that to people, or even an eBook on how to start your own business. Maybe even expand your product range. There’s so much people can do. Don’t stick with just one stream of income. I’ve got five revenue streams with All Things Money.”

‘Just start doing it’

Have you thought about having a side hustle for a very long time? Olamide is convinced that just starting is the most important step in doing something for yourself, and maybe even changing your life entirely. The rest comes naturally.

She says: “My one tip would be to do it. Absolutely do it 100%. Initially I was so scared about creating this Instagram page, I was worried about what people would think about me, what people would say, but if I never did that then I wouldn’t be anywhere near where I am right now. I would have met half the people I know now and that is just crazy.

“I feel like once people start with a business, they can easily get tunnel vision and just focus on that. But it’s really important to open up your streams of income, especially with the cost of living going up. You want to kind of get as much money as you can come in.”

Photo by Vanessa Garcia

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Mouthy Money’s latest article asks whether UK benefits and state pensions are keeping up with the cost-of-living crisis.

Retired people or those on benefits have had a 3.1% increase applied to their pensions and benefits, but critics argue this is well behind the rise in the cost-of-living crisis.

Inflation has hit a 30-year high, at 7% in the year to March 2022. Financial experts say as a result the increase in benefits and pension is not enough to help vulnerable parts of society keep up with price rises.

What does the increase mean for you?

From 11 April, the State Pension increased by 3.1%. This gives someone on a full new State Pension £185.15 per week and someone on a full basic State Pension £141.85.

As for universal credit, a single person aged 25 or over will see their allowance rise from £324.84 to £334.91 per month, totalling £4,019 a year. Child benefit rises 68p per week for the eldest child.

The 3.1% increase was in line with the CPI inflation in September 2021. It has since soared to 7% according to the latest CPI data and is expected to go even higher.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown says: “This week’s 3.1% state pension increase is proving no match for inflation which is now running at more than double this amount and there is no sign it is running out of steam.

“Even those with other sources of income to draw on are not immune. While those with inflation linked annuities will see an increase in income most annuities are purchased on a level basis and these pensioners will see no increase in income.

“Even those invested via income drawdown may need to revisit their income plans as inflation bites large chunks out of their purchasing power as investment returns struggle to keep up.”

What help can you get during the cost-of-living crisis?

The pension and benefits increases are not in line with the current inflation levels, putting many pensioners at risk as Britons grapple with the worst cost of living crisis for many years.

Pensioners on a low income should check to see if they qualify for Pension Credit. This benefit tops up the income of single pensioners to £182.60 per week and £278.70 for a couple. It is also a gateway benefit to other means of support such as help with bills and NHS costs.

Morrissey adds: “It is a hugely helpful, but massively underclaimed benefit – only around two-thirds of people who can claim it actually do. You can qualify for Pension Credit if you own your own home or have some savings, so it is worth checking to see if you are eligible. People over 75 can also qualify for a free TV licence.

“Wherever possible it is a good idea for retirees to have a cash buffer of one to three years’ worth of essential expenditure so they can supplement their income in times such as these when purchasing power is under pressure.”

Photo by Matt Bennett on Unsplash

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If you’re the sort of person who loves a good deal in the supermarket, then you’ll love this offer from Lidl.

The budget supermarket chain is now offering a 5kg ‘Too Good to Waste’ box of fruit and vegetables for just £1.50.

What is in the deal exactly?

The box contains 5kg of fruit and vegetables that are either slightly past their best, or perhaps have been damaged or discoloured. However, Lidl insists they are still edible.

Be aware that the contents of the box will change every day and depends on what Lidl staff decide to include.

To give you a rough idea of how much of a saving you could make, the Money Saving Expert team picked up a box on Tue 29 Mar which contained the following items:

• One 250g punnet of raspberries – normally £2.99
• 2 x bananas – normally 37p for two (£0.78/kg)
• 5 x apples – normally 89p for a 5-pack (17p each)
• 13 x satsumas – normally 95p for a 500g bag (£1.90/kg)
• 2 x pears – normally 95p for a 550g bag (£1.72/kg)
• One 500g pack of leeks – normally 69p for a 500g pack (£1.38/kg)
• 2 x aubergines – normally 69p each
• 3 x lettuce – normally 69p for a 2-pack (34p for one)
• 13 x potatoes – normally 91p for a 2.5kg bag (36p/kg)
• One punnet of black grapes – normally £1.09

That selection would normally come to more than £10, but with Lidl’s offer you pay just £1.50 for the lot.

Why should I care?

With taxes, prices and energy bills rising fast, every little counts.

If you’re looking to shave a little off the weekly grocery bill, then Lidl’s discount fruit and veg box is a top choice, particularly if you don’t like food waste.

What’s the catch?

It’s worth knowing that not every Lidl store has the offer and they are usually offered on a first come, first served basis.

What other options do I have?

Keep an eye on supermarkets’ website such as Aldi, Tesco, Sainsbury’s and more for more bargains.

Where can I find out more?

Find your nearest Lidl store to purchase this deal.

Photo by ja ma on Unsplash

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Millions of households could pay higher energy prices of around £693 a year more for electricity and gas, following a price rise on 1 April.

This is the biggest recent rise in the cost of energy bills, with prices going up 54%. From 1 April 2022, the price cap on a typical household energy bill rises by £693 to £1,971 a year

The price hikes along with other cost-of-living rises such as fuel and food will leave many families struggling to make ends meet.

Dame Clare Moriarty, chief executive of Citizens Advice, says: “The energy price cap rise will be potentially ruinous for millions of people across the country.

“The support announced so far from the government simply isn’t enough for those who’ll be hit hardest. With the long-anticipated price rises now hitting, many more people will face the kind of heart-rending choices that our frontline advisors already see all too often.”

Why are energy prices going up?

The energy price cap is the maximum suppliers can charge households in England, Wales and Scotland, per unit of energy consumed. Bills are going up because this cap is being raised.

The price cap is being raised by Ofgem, the energy regulator thanks to a combination of global factors that have led to rising international natural gas prices.

A surge in natural gas prices, which climbed to around four times its previous cost thanks to increased demand from Asia and China helped increase bill prices.

What could this mean for you?

The number of English households in ‘fuel stress’ – a term for those spending 10% or more of their income after housing costs on energy bills – will double from 2.5 to five million as a result of the price cap rising from 1 April.

Another 2.5 million households are at risk in October if the price cap rises again to £2,500, according to the Resolution Foundation.

Families living in poorly insulated homes (with an energy efficiency rating of E) will feel rising energy prices more than others, says the Resolution Foundation, with their bills set to be £320 a year higher than those in similarly sized C-rated homes.

Jonathan Marshall, senior economist at the Resolution Foundation, says: “Today’s energy price cap rise will see the number of households experiencing fuel stress double to five million.

“There are no easy ways to protect people from rising bills in the current climate. But with many of the poorest households missing out on the Council Tax rebate, this scheme should be used to supplement, rather than replace, support via the benefit system, which is better equipped to target lower-income families.

“Another increase in energy bills this autumn hastens the need for more immediate support, as well as a clear, long-term strategy for improving home insulation, ramping up renewable and nuclear electricity generation, and reforming energy markets so that families’ energy bills are less dependent on global gas prices.”

The cost-of-living crisis

Facing the sharpest decline in living standards since records began, people in the UK are already leaning into credit and debt to meet the everyday challenges of the financial crisis, according to The Money Charity.

With inflation hitting 6.2% in March and energy prices rising, households find themselves at the sharp end of the cost-of-living crisis.

Michelle Highman, chief executive of The Money Charity says: “It currently feels like barely a day goes by without a newly emerging report on prices or the cost of living, each one further squeezing UK household budgets and decreasing people’s financial wellbeing.”

How to protect your finances from rising energy prices

Even if the situation is looking bleak, there are still ways to protect your money from rising energy prices.

For example, the Government’s Energy Rebate Scheme – a £150 Council Tax (CT) rebate and a £200 discount for all billpayers – will go some way towards reducing the impact of the energy price cap rise on low-income households.

The support will limit the rise in low-income households’ spending on energy bills from 7 to 10 per cent, rather than 7-12%, according to the Resolution Foundation.

Other ways to protect your money from higher bill prices are:

• Choose paperless bills and manage your account online, as some companies charge extra for paper bills
• Send regular meter readings to keep your bill accurate. If you have a smart meter, it will do this automatically
• Question any bill increases that seem too high
• Choose energy-efficient appliances – for example, an energy-efficient washing machine, based on EU energy-efficiency ratings
• Add insulation to your house – according to consumer group Which? you could be saving £250 per year if you insulate your home
• Install central heating controls – could save a typical home £75 a year according to the Energy Saving Trust.
• Use less hot water in the Spring/Summer seasons, and use your heating wisely

Photo by Mikhail Nilov on Pexels

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More than one million households could miss out on the £150 energy rebate this April, experts have warned.

The rebate has been arranged by the Government in the face of the rising cost of energy bills, with the energy price cap set to rise by 54%.

Households need to have a council tax direct debit with their local council in order to receive the money in April instead of later this year.

This has raised concerns that around one million households that don’t pay their council tax via direct debit may face long waits to get the rebate.

A Department of Levelling Up, Housing and Communities spokesperson tells Mouthy Money: “Direct debit is the quickest and easiest way to pay council tax, and the best way for most people to get the rebate.

“Councils are responsible for making sure eligible households who don’t pay their council tax by direct debit receive the rebate and we have suggested a range of payment options for them to use.

“With the support of councils, we are confident that all those eligible for a rebate will receive their payments in good time.”

What financial support can you get?

Chancellor Rishi Sunak has allocated £9.1bn for a support package to households during the cost-of-living crisis by:

• £350 in October to help soften the blow of surging energy bills
• a one off £150 council tax rebate, available from next month for people living in bands A – D

However, to get the council tax rebate money in April you need to set up a direct debit with your council. Otherwise, families could be left waiting for months more.

Who gets the council tax rebate?

Households in council tax bands A to D in England will be paid £150 for the council tax rebate. This affects around 20 million homes, including 95% of rented properties. Find your council tax band on the government’s website here.

How do I claim the council tax rebate?

Eligible groups shouldn’t have to apply to receive the council tax rebate, if they’ve got a direct debit set up with the council for payments.

These people will receive the £150 payment from April, according to the Department for Levelling Up, Housing and Communities.

However, if you don’t have a direct debit set up, councils have urged households to do it as soon as possible. That way, you’d be able to get the money this April instead of waiting for it to arrive much later. You can switch to direct debit through this government portal here.

Have your bank or building society name and account, sort code and branch address at hand when setting up your direct debit.

If you don’t get that set up in time, it’s best to try and contact your local council to try and arrange for them to make payment to you by other means.

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Start an ISA: opening a Lifetime ISA, with a tax-free wrapper, lets you save up to £4,000 every year with the government adding a 25% bonus of £1,000 on top of what you save.

What is the deal exactly?

A Lifetime ISA (LISA) could be a game-changer to your savings. This account offers the chance to save money in a tax-free wrapper and receive a 25% bonus from the government.

For example, if you save £4,000, in a tax year (6 April to 5 April) the government will give you £1,000.

Start an ISA whilst you can

However, you need to be between the ages of 18 – 39 to open an account, and saving for a house or retirement as the money isn’t ‘easy access.’

If you’re nearing 40, make sure you open a LISA before you hit the cut-off age. You can continue to put money into the account until the day before your 50th birthday.

You can open two kinds of LISA – cash or stocks and shares. If you’re looking to buy a house in the near future (less than five years), cash is generally best as you won’t be affected by short-term stock market fluctuations.

If you’re using the LISA to save for the long-term, then stocks and shares are better as you’re in with a better chance of growing your money above inflation over the long-term.

Stock market returns aren’t guaranteed but broadly over long time horizons do rise and will grow your money.

Why should I care?

With the end of the tax year approaching in April, there’s no better time to choose an ISA to get a 25% bonus each tax year on up to £4,000.

This is especially true if you have savings languishing in a cash account earning very little interest and losing value against inflation.

If you want to save money for your retirement or house, a 25% bonus each year could help a long way to accomplishing those goals.

What’s the catch?

There are quite a few conditions when opening a LISA.

You can only deposit a limited amount in a LISA – the maximum you can save is £4,000 per year, meaning that you’ll only get £1,000 from the government.

LISAs can only be used to buy a house or for retirement – and there are more limits set within those two options.  

Currently, the LISA’s limit stands at a purchase of up to £450,000 in London. If you go over the limit, money can’t be withdrawn from your LISA, or you could lose the bonus and face a 5% government withdrawal charge.

You’ll pay a penalty if you withdraw the cash and don’t use it for a first home or retirement. If you do cash out the money for something else rather than a property or pension, then you’re charged 25% of the amount withdrawn.

What other options do I have?

Help to Buy ISAs were the precursor to the LISA, until they stopped being available after 30 November 2019.

However, if you’ve opened a Help to Buy ISA before that date, then you’d be able to save £200 every month towards your first home, with a 25% bonus from the government. You’d then be able to claim your bonus by 1 December 2030.

The alternative to a LISA includes regular cash ISAs or stocks and shares ISAs. As mentioned above, you should be using stocks and shares and investing if your time horizon for saving is longer than around five years.

Where can I find out more?

There are a few banks that offer LISAs, including AJ Bell, Moneybox, Hargreaves Lansdown and more.

Photo by Towfiqu barbhuiya on Unsplash

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Investing for beginners: the fear of missing out (FOMO) is real with all the talk about investing on various social media channels.

Once pandemic restrictions lifted and life began returning to normal, the worry of not being included snuck back up on us as if it has never disappeared during lockdown.

And this extends to our money and investing too, especially in the past two years.

A third of investors surveyed by Barclays Smart Investor said social media was a core influence, while one in three (30%) said their investing decisions were influenced by FOMO.

Wanting to dig deeper into the idea of investing FOMO, we’ve spoken to one young investor, Helena Slater, about her journey into investing.

Even if FOMO has negative connotations, on the positive side for Helena, it was actually the reason why she started investing seriously, despite having had an ISA from the age of 18.

How Helena got started with investing

Helena works in financial services. The moment she began her career, she noticed her peers would talk about their investments, what strategies they use, what stocks are performing well, and which ones aren’t.

The more they talked about it, the more Helena felt left out and wanted to be included in the conversation.

She says: “I did become quite envious of these conversations, I wanted to be able to join them. These conversations encouraged me to consider investing.

“However, I will say that listening to people’s suggestions is one thing, but you do need to discover what investments work for you.

“For example, some people might go for riskier investments, while I know I’d like to go for more low-risk, long-term investments such as index funds, which are generally considered safer.”

We all had that one person at work boasting about an investment that did really well during lockdown – it is natural to experience FOMO but be wary not to let that fear control your investment decisions.

Helena says it’s important to do your research before you make decisions, especially if it’s based on word of mouth.

Where does Helena get her investing ideas?

Every day, Helena looks at financial publications and finds what expert fund and wealth managers are suggesting. After that she does her own research, though she admits her parents originally steered her in the right direction.

She says: “The reason why I tend to trust my family when it comes to investing is because we have a similar financial mentality where we put saving at the forefront. Whenever we get paid, we instantly pay ourselves by paying our savings, paying our investments, and then the rest goes on whatever we want.

“I learned from a young age about that saving and investing mentality. I do trust their investment advice. They are also perhaps invest more for the long term and that’s a method that I know and respect.”

She already has quite a strong idea about the sectors and companies that she’s focused on investing in, for example sustainable products or emerging markets, and she feels comfortable sharing her investments with her family.[HS1] 

“My brother and I have really open conversations about where he’s investing, how well his investments are doing and the companies that he’s monitoring at the moment, he’s very much a retail investor.

“I’m the only one out of my female friendship groups who actively invests. I’ve discussed investing with my friends before to encourage them to invest, especially if they have a lump sum that’s just sitting in a savings account, but they’re often slightly less willing to take the potential risk of investing.”

Investment platforms

Helena uses three investment platforms: HSBC, Vanguard and AJ Bell.

Initially, her parents helped with setting up an HSBC account when she was 18, but she admits that at that time she didn’t really understand investments, and had only a very cautious investment ISA.

She also uses Vanguard for long-term investing, and has some money in its LifeStrategy 60% Equity Fund, “which has just been good for my investing for the long term – just leaving it, and letting it do its thing,” she says.

On a more active basis, she uses AJ Bell. She says: “I opened an account with AJ Bell, as it has many positive aspects, including low fees. The literature that the company provides on a day-to-day basis, including fund suggestions is very informative too.

“They go into quite a lot of depth as well about those suggestions and why to do it. I get quite a lot of recommendations, which I really like, and they have a huge plethora of funds in their platform. There hasn’t been a fund that I couldn’t find on it yet.”

Photo by Karolina Grabowska from Pexels

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