Magical Penny

A financial windfall is a big opportunity but it’s often wasted.

If you come into a lump sum of money, whether it’s from a bonus at work, an inheritance, or even a small lottery win, it’s important that you do something sensible with it. It’s so easy to see it as free money and spend it on something frivolous for yourself, but that’s the worst thing to do. If you are sensible with your windfall and you spend it in the right way, you can improve your finances in the long term and set yourself up for the future. These are some of the most sensible ways to spend your financial windfall. 

Pay Down Debt 

The most obvious thing to do is pay off a chunk of your debt, but a lot of people don’t like doing this because it feels like they’re wasting the money. But the thing is, you cannot achieve financial freedom when you’re saddled with debt. This windfall is your chance to regain control of your finances and clear those debts for good. Once you pay off your debts, all of that extra money can be put in savings or spent on things for yourself, so you will be in a much better financial position. 

Even if you don’t have any big credit card debts or loans to repay, you should consider paying off a portion of your mortgage. If you have a big lump sum to play with, you could knock a few years off your mortgage and get yourself a lot closer to financial independence. 

Update Your Will 

It’s important that you have a will, no matter how young you are, because you need to decide what happens to your money. But there are also certain things that you have to arrange and pay for, and if you get a bit of a windfall, you can use that opportunity to deal with those things. You could look into pre-paid funeral plans, for example (visit https://heartofenglandfuneralcare.co.uk/ for more information.) It’s not the most exciting thing to spend money on, but it means that you don’t have to worry about it again. 

Invest In Your Home 

Home renovations are expensive, but you should consider them an investment. If you make changes that add value to the property, you will get that money back if you ever sell the house. The problem is, you don’t always have the money there in the first place and if you are trying to be financially independent, you may not want to borrow it either. But if you come into some money, you could use it as an opportunity to invest in your home. As long as you choose the right renovations and only do things that boost the value of the property, it’s a very wise way to spend that extra money. You should also consider keeping some aside to act as an emergency fund for home repairs. If you visit https://www.propertymark.co.uk/, you can see a good list of the best improvements to make. 

When you get a financial windfall, it’s important that you don’t waste it because if you spend it in the right way, it can help you to improve your financial situation in the long term. 

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Getting to and from work can be surprisingly costly and its a cost that you should definitely try to bring down if you can. However, you have a few things to factor in before you can work out what the best option is. 

Optimising your commute means that you need to work out what the most time-efficient model is while balancing this against cost. You might also like to factor in the impact your commute has on the environment but, for now, let’s put that to one side. 

So, what are your options?

Driving

15.3 million people drive to work in the UK with a further 1.4 million people catching a lift. And, judging by the constant roadblocks at rush hour, it is the most popular way of getting to work. The major plus of driving is that it can take you from A to B in the most efficient route, but it may not always be the fastest or best option for everyone. 

If you want to – or have to – drive, then you need to make sure that you get the most for your money. Choosing a car with a good fuel consumption and as low an insurance cost as possible is the best way to go. Taking out finance to be able to afford this car could be well worth it, so take a look at https://www.ccspecialistcars.co.uk/finance.php to see what your options are.

Public Transport

While public transport may not take you door to door, there are plenty of instances where it is actually faster, particularly over longer distances. For example, taking a train is usually a bit faster than driving into a city and you won’t even have to find a parking space! Some businesses also offer incentives to encourage staff to take public transport and may even set up a minibus service to make it easier to get to work directly from a local station. 

The downside to public transport is that it can be surprisingly expensive on some of the most popular routes and you may be just as put off by congestion but without the personal space afforded to you by a car! It really depends on where you are in the country as to how well public transport can work for you and your finances.

Walking and Cycling

Combining your exercise with your commute is a truly financially savvy thing to do as you will save on both transport costs and gym membership fees. Walking and cycling are both healthy ways to start the day and getting fresh air and natural light will also help to improve your mood. If your route isn’t totally covered by public transport, or you want to buy a cheaper ticket, walking a little extra is a good option. 

If you want to reduce the cost of your commute, you may need to factor in more time. But listening to a podcast while you walk or ride is a nice way to spend your commute and save some cash at the same time. Weigh up the pros and cons to help you decide.

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In “A Random Walk Down Wall Street” Princeton University professor Burton Malkiel claimed that a blindfolded monkey could do as well as the professional traders in selecting an investment portfolio. This theory was put to the test by Research Affiliates where they randomly selected 100 portfolios of each containing 30 stocks over a period of 1964 to 2010. This stimulated the “monkeys” randomly picking their stocks. The result was that these randomly selected portfolios outperformed the market index by 1.7%, hence beating the “professional” traders. The “monkeys” not only performed as well as the traders, but they also beat them! That might be an excellent endorsement for getting a monkey to deal with your financial investments from now on! Before you do, however, you might need to continue reading.

Smaller Stock is Both Riskier & More Rewarding

In analysing the results of the experiment, the researchers found that the reason why the “monkeys” outperformed the traders was mostly due to inclusion of smaller stocks as in stocks for lesser-known brands than the usual global stocks. When people select stock, they rely on a more significant portion of investing in larger, well-known companies. 

When chosen randomly and without the knowledge of which stock belongs to which big brand, the portfolios contained a more significant proportion of smaller stocks. Herein lies the connection with outperforming the index. As smaller stocks have higher yields, they also have a higher risk profile. Where larger companies can be relied on for continued business and stability, the yields will be lower. 

Smaller stocks don’t have that security and therefore will deliver better value when they pay off. In short, in selecting a riskier portfolio for the years between 1964 and 2010, an investor would have beaten the regular market returns by 1.7% on average.

Our Own Bias

The “monkeys” randomly selecting stock is a great way at looking at your own investment behaviour and will give away what kind of risk profile you should take on when investing. If you can afford it and are looking for bigger yields, you should be willing to take risks. When you are risk-averse, you should pick larger stocks of well-known brands or invest in bonds altogether. 

This all seems quite straightforward, but the issue is that we mostly live in a bubble of our own making. What’s a low-risk portfolio for you might be something of extreme risk for another. It’s essential to be able to take a few steps back and put everything in perspective. What’s important to consider is that some of these risk-appetite is culturally defined. FreeBets has a great infographic showing you which countries bet the most. And you can take betting as an indicator of who is willing to endure a more significant risk appetite. 

Take this into consideration and taking the emotion out of investing (i.e. don’t invest in a company just because you like their products) will serve you well in creating a better portfolio. That’s not to say that you can’t make moral choices to not invest in things you consider unsustainable companies such as oil and weapons manufacturing. Actually, environmentally & positive sustainability companies have shown great returns in the last few years, so it makes great investment sense.

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If you’re looking at selling your property and you don’t know where to begin then don’t worry, you have come to the right place. Whilst it may seem difficult, to begin with, there are lots of different things you can ask yourself to ensure you’re making the best possible choices. From choosing the right estate agents to knowing how to set the right asking price, you need to ensure you’re doing what is best for you. With that in mind, here are five things to consider before selling your house: 

What Estate Agent Will You Be Using?

One of the first things you need to decide is what estate agents you’re going to be working with. Although there are going to be various different options available to you, you need to be sure you’re choosing the best possible property manager for you. 

Whether this means they take the lowest percentage of they offer the most support, it’s important you’re doing your research. For tips and tricks when it comes to finding the perfect estate agents, you can visit this site here. 

Do You Have An Asking Price In Mind? 

Another important thing to consider is whether or not you have an asking price in mind. Although you may already have a rough idea of what you want your property to sell for, you need to be sure you and your estate agent are on the right page. In most cases, they will be able to offer you advice when it comes to setting your asking price. 

Are There Any Home Improvements You Need To Do Before You Put Your House On The Market?

When it comes to putting your house on the market, you need to ensure you have done all of the necessary work that needs to be done. Whether that means renovating the garden or repairing the roof, the more you do the easier it will be to sell. Whilst it may take some time to get your home ready to sell, it will definitely be worth it when it finally comes to putting it on the market for the first time. For tips and tricks when it comes to getting your home ready to sell, you can visit this site here. 

Do You Have A Date You Need To Sell By?

Another important thing to consider is whether or not there is a specific date you need to sell your home by. Although you cannot guarantee you will sell your home by this date, it is definitely something you need to discuss with your estate agent. 

Do You Have A Contingency Plan? 

Finally, you need to ensure you have a strong contingency plan in place. If you don’t sell your house by the date you had in mind, what will you do? If you’re worried, it might be worth speaking to a professional to ask their advice. 

Are you looking to sell your property soon? What do you need to consider beforehand?  Let me know your thoughts and ideas in the comments section below. 

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In Elbow Lake, Minnesota, a homeowner stumbled upon a surprising discovery during the remodelling project of his 1938-built house. He discovered an original 1938 copy of the Action Comics. The comic book sold at an auction for $175,000 – that would be around £142,000, which is a pleasant surprise! 

Admittedly, this is not to say that you might find priceless treasures in your home, but there’s a lot more value under your roof than you might at first suspect. If you are in no rush to sell your property, there are still plenty of options for you to maximise its hidden value and make money on the side. 

You can free up some cash

If you’ve had your mortgage for a few years, chances are that your credit score today is not the same as it was when you first applied for a loan. Additionally, there might be new opportunities on the banking market that offer a better rate than your existing mortgage. In other words, it’s always a good idea to consider your remortgage option after a few years. Most homeowners can switch to a better rate and save money on the full payment process. Typically, you will have a high standard variable rate that can apply if you’re trying to switch your mortgage earlier, but it’s something you can discuss in-depth with an experienced adviser before making your decision. 

Get rid of everything you don’t need

Everybody hates clutter, however, we all accumulate things we don’t want or need! Months after months, years after years, your living room, bedroom, and garage are filled with objects and gadgets you don’t need. Not only clutter affects your mental health, but it also transforms your perception of space. The room feels a lot smaller as a result. There’s an easy way out: get rid of everything you don’t need. Marie Kondo, the queen of decluttering, describes it as removing items that don’t spark joy. But, what she forgets to mention is that you could make money by reselling your old stuff – if it is in decent condition. 

Airbnb is your best friend

Your spare bedroom is full of surprises. Indeed, have you considered renting out a spare room inside your home? With the rent-a-room scheme, you can earn up to £7,500 tax-free, using a popular renting tool such as Airbnb. You can also choose to advertise your room privately, aka in the local newspaper or via Gumtree for instance. However, Airbnb is by far the most profitable and sustainable option, as it gives you insight into your guests’ profile! 

Do you live in a picturesque area?

Depending on your interior style and your location, you might even want to consider registering your house as a filming or photo shoot place. You can discuss the fee directly with the filmmaker – or let a specialist agent handle the matter for you – which means that if your house is picked as the set for an expected blockbuster, you can expect a very generous offer. 

In conclusion, there is a lot more value in your home than you might think. While you might not become a millionaire overnight, you can certainly make some money on the side by managing your house value, features, and location effectively. 

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There are a lot of things in life that can be the cause of a lot of stress. From work to family to even trying to keep up some kind of social life, it often feels like the modern world is designed to be as stressful as possible. 

However, there’s one thing that causes more stress for a lot of people than just about anything else. That thing is, of course, money. Most people find that their finances are constantly hanging over their heads no matter what they do. This is especially true when you’re stuck having to make a larger purchase for one reason or another. However, there are ways you can make things easier. Here are just a few ways to deal with those big life purchases.

Save your money

The best thing that you can do when it comes to any kind of large expenses is to make sure that you have a financial safety net in place. That way, even if you have to spend a lot of money at once, it’s not going to impact your general financial position too badly. A lot of people assume that they can’t save money unless they’re already in a totally comfortable financial position but that’s not the case. Even if you’re just putting away a tiny amount at a time, being able to save any amount of money is going to make your life a whole lot easier.

Find the best deals 

Just because you’re having to spend a large amount of money doesn’t mean that there aren’t things that you can do in order to bring the cost down somewhat. Looking for the best possible deals for things like a home, energy bills, or a car is one of the best things that you can do. Places like Motormill can help you find high-quality used cars at great prices, taking at least some of the stress out of buying a car. Don’t resign yourself to spending more than you want to just because you think that’s the way things have to be.

Be careful with credit

Credit can be an incredibly valuable thing. From finance deals on cars to using a credit card to pay for certain things, it can both help you stay financially solvent and help build up a valuable credit rating. However, you need to be careful with credit wherever possible. Otherwise, you could end up drowning in debt and just making your entire financial situation far worse than it was in the first place.

Even people who are somewhat careful with their money make one incredibly significant mistake: they often find themselves ignoring their finances whenever they can. This is understandable since you don’t want to spend all of your time thinking about money. However, if you’re hiding from your bank balance then you’re just going to end up in a situation where you’re not fully aware of what you’re spending or what you have left which is going to cause some serious problems down the line.

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Whatever kind of car you drive, you can be sure that it is one of those things which has the real potential to cause you financial trouble. This is something that is true for anyone who has a car, and yet you will need to try and work out a way that you can deal with it if you hope to make your finances a little better. There are many approaches you can take towards this, but one of the most important is to do whatever you can to keep your car running and on the road for as long as possible. That is in itself a strong financial act to take, so it is clearly a good idea and highly beneficial, but how can you make sure that you actually do that? As we will see, there are a few things to consider.

Regular Servicing

All cars need regular servicing, and if you are to make sure that you keep your car on the road then you will definitely need to think about this. With regular servicing from somewhere like https://www.georgesonscars.co.uk/motandservicing.php, you should find that your vehicle runs better, is considerably less likely to run into any problems which would cost you later on, and will even be more efficient to drive, making it cheaper in that way too. If you are not sure about paying money upfront for servicing, just remember how much money you are almost certainly saving in the long run. It is absolutely worth your while, in fact it is just about the most cost-effective way of keeping a car.

Driving Well

The way you drive your vehicle is obviously going to have an impact here too, and that is something that is worth looking into in some detail. Take a look at https://www.idrivesafely.com/ for more on driving well. By ensuring that you drive well, you are making it much less likely that you will crash your car or cause it damage, both situations which would mean you are out of pocket. It will last longer as a vehicle, and therefore cost you a lot less overall too. Do whatever you can to drive as carefully as you can at all times, and you should be able to make a difference to your finances.

Focusing On Efficiency

The more efficiently run your vehicle is, the less wear and tear it goes through. That means you won’t be taking it to the garage too often, which is obviously going to save you money, perhaps thousands throughout its life. You will also find that you save money on fuel by the simple fact that it is being used efficiently. You can make sure of this by driving in such a way as to reduce fuel usage, and by ensuring that you buy a car in the first place which is efficient. That is going to help you keep your money in tact for much longer, and much more easily. Clearly, it is worth doing so for that reason alone, and it’s something you can do easily enough.

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It’s fair to say that every single person on the planet wants to be wealthy or to have enough funds in order to be comfortable in life – comfortable might have different meanings depending on who you talk to, of course! Whether you love or hate the current system in place, the fact is that money controls everything we do, so we need to have as much of it as possible. The problem? It’s pretty hard to come by if you’re not the savviest in terms of business or enterprise.

If you want to make some money, you have to put in the effort and really create an income off your own back. Nobody ever went from the bottom to the top without putting in a shift. Some may have been born into wealth, but in order to maintain it, they need to work hard and know what they’re doing. If they don’t do these things, they’ll probably throw it all away somehow. 

Wanting to work hard, wanting to have lots of money, and wanting a business are all easy to do. What’s more difficult is finding the motivation for it all. If you feel as though things are going to be difficult and hard to reach, then it’s easy to quit before you’ve even started and choose an easier life. Do you want to become more motivated, and do you want to have a lot more money in your account than at present? I bet you do. Here are a few ways you can find and keep that drive: 

Create Goals And Write Them Down  

Everybody has a goal or two in their life. They might be something small and doable, or they might be huge and long-lasting. Whatever the challenges are, they all become a lot more important when they’re written down. That kind of written confirmation almost brings them to life. When they’re stuck exclusively within your thoughts, it’s easy to palm them off and never really chase them. If they are on a piece of paper, your computer screen, a mirror, or a wall, then they’re alive! You could also post online about your goals. This would make you motivated because you’ve literally just told the general public about what you’re planning on doing! You won’t want to give up or fail!

Think About How The Past Decade Has Gone  

If you’ve been working away for a while to no prosperous avail, then you can use the past to drive you on. Do you want another decade of the same income and the same lifestyle? It is okay if you do, but an ambitious person won’t stand for that. They’ll want to improve year on year! When you look back at the past, do you best not to get down or be disheartened. You should use it in a positive light. 

Watch, Read And Listen To Motivational Content

There is a lot of content online regarding motivation and driving people. If you need that boost of adrenaline or a different perspective, then YouTube has more than enough material for you to indulge in. You could also read articles on blogs that have been written by experts and those with all the experience in the world. Podcasts have become very popular in the past five years or so; listening to a money-making pod while you work or while you travel might be a nice idea. 

Look At Potentially New Homes 

Something that really makes people excited about earning money is the lifestyle that they might potentially have. Head online or walk into an estate agents and talk to staff about different houses that are on the market. You obviously won’t be buying, but the knowledge in terms of what it takes might give you a real boost. Even walking by big, stylish homes on a hilltop can give you all the motivation in the world!

Begin A Project  

Just start something. Obviously, a business would be a more convoluted set of tasks, so you can’t just begin it and make money out of it, but other side hustles can be monetised pretty quickly. Blogging, buying and selling, freelance work – these are all ways you can make money. When you start to make a little more; you end up getting even more motivated to make even more money! It becomes something akin to an addiction when you see the money go up.

Look At Your Finances 

Every smart individual tracks their finances every week/month in order to avoid any problems. But you could also keep an eye on them in order to boost your own motivation. Seeing a relatively small number next to your incomings on your finances can really give you the drive to improve it.                                                            

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