Magical Penny

I’m very happy to host a guest post from a new voice in the UK personal finance community. I hope you find it as helpful as I did!

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Managing your money when you’re self employed is all about making smart decisions. You need to have discipline, and you need to have a solid plan in place so that you stay motivated to keep your finances under control. Below, you’ll find a few ideas that will help you to manage your money when you’re self employed. 

Create A Budget You Can Stick To

Start by creating a budget you can stick to. Always work out what your bills cost first and make sure you leave that amount in your bank. Have them come out as direct debits so you don’t even need to think about them. You’ll then need to allocate yourself money for things like food and fuel. 

Save An Emergency Fund 

Saving an emergency fund should be at the top of your to-do list when you become self employed. Ideally, you will have done this already. If not, don’t panic; just commit to doing it now. This will help you should you need emergency funds. Maybe you have an expensive car repair to make, or maybe you lose a big client. Save 3-6 months living expenses and leave it alone. 

Put Money Aside For Your Tax Each Month 

Put money aside for your tax and keep accurate records right from the start. Know exactly what you can claim for so you don’t pay more than you need to. Get an accountant if possible! 

Find Smart Ways of Saving Money

There are all kinds of smart ways you can save money. Use cashback sites whenever you shop, and always look for discount codes. Get an eco friendly second hand car from a place like Belmont Autos so you’re not spending a ridiculous amount of money on driving. Don’t impulse spend. Make swaps in the supermarket, cut your TV package, and swap utility suppliers if you find a better deal. Keep an eye on your budget and know when to make a change! 

Be Very Careful With Credit Cards

A business credit card can be very helpful, but you need to make sure you’re not going overboard. Be prepared to pay back what you spend as soon as possible. They can be helpful for keeping your business expenses all in one place, but it can also be tempting to spend more than you’ve got. 

Pay Yourself First

Pay yourself first, and put any extra you’ve made into a pot for months when you may not earn as much. Be smart – don’t go out and buy something extravagant. 

Plan For Retirement

Getting into this habit as early on as possible will ensure you can live a comfortable life. Never rely on a state pension. 

Get Insurance 

What would you do if you fell ill and couldn’t work? Insurance is the only way you can protect yourself. This is especially important if you have people who depend on your income! 

Managing your money when you’re self employed is a habit you should get into as soon as you can. 

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Driving is a skill that transforms your entire world, but it doesn’t come cheap. Thankfully, you can make things a lot easier by following the right path. Avoiding the pitfalls is arguably the most important step of all.

Here are five that you need to avoid at all costs.

#1. Not doing your research

Buying a car is undoubtedly one of the most important consumer decisions you’ll ever make. As such, it’s imperative that you take your time and conduct the necessary levels of research. This can include looking at the frugal approach to purchasing a vehicle as well as knowing which model of vehicle is best suited to your needs. Getting ripped off or choosing a vehicle that you’ll want to change in six months time is simply not an answer.

#2. Personalised Upgrades

Every driver wants to tailor their car to their needs and preferences. And there’s nothing wrong with improving key performance features. Nonetheless, some of the personalised changes can make it far harder to sell the vehicle later on and provide a very poor ROI. Adding vinyl to the bodywork or overhauling the sound system may cause more harm than good in the long run. Stick to simple, useful tricks like new seat covers. Number plates escape this issue, though, as they can be registered to your next vehicle.

#3. Persisting with a faulty car

Cars encounter problems from time to time. Most minor issues can be repaired, but some require the owner to admit defeat and trade in for a better model. In truth, part-ex deals with experts like Martin Brothers Motor Company make the decision even easier. Either way, continuing to drive a car that is costing you a fortune in repairs, wasted petrol, etc. is the worst thing you can do. The short-term hit (which can be spread out with repayment loans), will pay dividends in the long run.

#4. Ignoring preventative maintenance

Attending to faults as soon as they become noticeable will have a positive impact on the venture. However, it’s equally crucial to remember that prevention is the best form of protection. As such, learning to change the various fluids or pump up the tyre pressure can make all the difference. A few minutes of work each week can stop a range of costly problems from developing, which will work wonders for your pocket. Crucially, it’s the best way to ensure that your ride remains safe and comfortable.

#5. Overlooking the need for insurance

While all above the steps should keep you protected in both a literal sense and a financial sense, you can never be too careful. Finding the right level of car insurance coverage is one of the most significant responsibilities facing any driver. Experts at Confused make it easy. Without it, your worst nightmares could come true during a crash, even if you aren’t at fault. For your finances as well as your peace of mind, you simply must not drive the vehicle until you have this in place.

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If there is one thing that makes a lot of people nervous, it’s when they need to start looking for a new car.

Most people will head straight to their local second-hand car dealership so that they don’t have to pay the high price that usually comes attached to brand-new vehicles. However, as many car dealerships have reputations for being quite pushy and pressuring people who aren’t that clued up on cars into a sale, some people find that they end up walking away with a bad deal.

It doesn’t always have to be so bad, though! There are a few things you can do to ensure you don’t end up ripped off when purchasing a used car. You just need to remember to ask the car dealer all of the following questions as the answers could be very telling.

Where Did You Get The Vehicle From?

The first question that you need to ask is where did you get the vehicle from. There are three common places where dealerships like the Liverpool Car Centre will get their vehicles from: trade-ins, car auctions, or from other dealerships. When asking this question it’s also important to ask if you can see the maintenance history, which the dealer should have acquired along with the car. Then you can see whether any repairs have been carried out and if any issues have been previously flagged up that could give you cause for concern.

What Should I Expect For Long-Term Maintenance?

It’s also worth asking the dealer what they think the car’s long-term maintenance will look like. Some dealers might even include the first year or two of inclusive maintenance so that you are covered for a while. If not, though it’s still worth asking the dealer about any work or issues that they might expect to see crop up that you will need to deal with. After all, this cost could influence your decision to buy. A dealer will also be able to tell you how much the type of car you are looking at usually costs to insure.

What’s The Warranty?

Don’t be one of the many people who drive away with their new car without getting any information about the type of warranty that covers them. Every different dealer will offer their own warranty, so be sure to ask how long your warranty cover lasts and what it actually does cover. Some dealers may offer the chance for you to lengthen the warranty if you pay a small charge each year. This could be worth it if you don’t want to worry about trying to cover any expensive maintenance.

What Is The Cash Price?

Most dealers will offer their cars at a slightly better price if you pay for them in cash. Obviously, if you are looking for an affordable bargain, then it’s best to try to pay this way if you can.

Don’t forget to ask any of these questions next time you walk into a car dealership. They could help you save a pretty penny!

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In our lives, we have so many different expenses that will have a big effect on our bank balance. Most of these will be necessary and there will be no way we can live without them – things like your rent or mortgage payments, energy bills, and regular grocery shop. All of the rest will be easy enough to cut back on or to cut completely. Yes, that’s right, even the ones you don’t think you’d be able to live without.

Here are a few of the most common expenses that people think they won’t be able to live without. I’ll show you how it’s done!

Satellite TV

If you still have a monthly subscription to Sky or another cable or satellite TV company, it’s really worth thinking about ditching it. It’s an expensive cost and there are so many more affordable ways to watch your favourite shows. You could just stick with terrestrial TV. Just remember to pay your TV license so you can take advantage of iPlayer. Even paying for a streaming service like Netflix or NowTV will work out cheaper than satellite TV!

On-The-Go Coffees

Do you like to pick up a coffee when you are on the way to your office? It may not seem like such a huge cost but those daily coffees really do add up over the year! Why not wait until you get into the office to make yourself a free coffee there? If you really can’t ditch the takeaway coffees, it’s worth taking your own reusable cup, like the ones from https://www.rcup.co.uk as most coffee shops offer a discount for everyone who does.

Car Lease Payments

These days it is very common for people to lease their cars. Rather than buying them outright, they instead take out a lease and pay monthly payments. These payments can be quite large, though, and could end up draining your monthly allowance. Instead, you might want to visit a second-hand dealership like https://www.chrender.co.uk and buy a car outright. You then won’t have to worry about any expensive monthly repayments over the next few years. Plus, you will be able to sell the car once you are finished with it, so you will get something back from it.

Gym Memberships

You don’t have to be a member of an expensive gym to keep fit. There are plenty of free or more affordable ways to keep your heart racing! For instance, you could start running a few times a week. Cycling to and from work is another way to burn off the calories. 

Eating Out

Do you really need to eat out so often? Of course, ditching restaurants isn’t an excuse to start relying on expensive and unhealthy takeaways. Instead, you can treat yourself by cooking a healthier version of your favourite takeaway using one of the recipes at http://www.foodnetwork.co.uk.

So, which of these unnecessary expenses do you think you will be able to live without from now on?

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The cost of motoring is high! You don’t need me to tell you this, of course.

Not only will your bank balance take a hit when you’re buying a car, but you will drive your finances down further with those usual motoring expenses, such as those connected to your fuel and insurance.

Being frugal, you might resist the urge to buy a car. If public transport or a bike can get you to where you need to be, then this might be the most affordable option. However, if you really do need a car (or simply enjoy the thrill of the open road), then you need to think frugally to minimise the costs to yourself.

Buying a car

If you’re living frugally, then you shouldn’t buy a new car. Brand new models lose their value at an exponential rate after they have been driven off the forecourt, so that initial cost doesn’t seem worth it. Newer cars cost more to insure too, and because they are fitted with the latest technologies, they might also need specialist services that regular Joe mechanics aren’t able to provide. These will be expensive.

Being frugal then, buy used. And when you’re looking for a car, be sensible and find ways to minimise the costs to yourself. So, if you were looking to buy on finance, for example, you would need to make sure you could afford the monthly payments. Sites such as Autopavilion offer finance calculators so you can measure the cost to yourself. You might need to look at a cheaper car if the expected payments were too high, or you could extend the length of the payment plan to keep the costs down.

You should also save for your car in advance, as you might then be able to buy outright without any finance deal. You would also have the opportunity to take out a loan or finance deal with a lower interest rate, as the more money you put down as a downpayment, the better. 

And before buying, use a free car valuation tool, as you can then find out exactly how much the car you are considering is worth. You will then be able to haggle with the salesman, without being ripped off with something that is worth less than the price tag.

Running a car

You can make savings on all of your expenses, so you don’t have to drive yourself in debt when keeping your car on the roads. 

When buying fuel, for example, you should shop around your local forecourts. Generally speaking, supermarkets sell cheaper fuel than independent sellers, so you might want to fill your car up after you have finished your weekly shopping. You should also download a price comparison app onto your phone, as you will then be able to source the cheapest seller near you.

When it comes to buying car insurance, use the price comparison sites available to you. GoCompare and MoneySupermarket are just two common examples. And you can bring your insurance down further by fitting a telemetrics device in your car, as this will record your driving. Should you be able to showcase safer driving, your insurer will lower your premium. Speak to your insurance provider to find out more. 

And there are loads of other ways to save money on your regular driving expenses. Finance guru Martin Lewis has plenty of advice to offer you on MoneySavingExpert, so read the tips given. 

Final word

Buying and running a car can be expensive, but by taking frugal steps to minimise the costs to yourself, you shouldn’t fall into too many financial potholes. Let us know what you think, and if you have any other suggestions for our readers, be sure to share them with us!

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Flipping property is all about buying a property cheap and selling it for a high price – the key is to spend as little money renovating whilst adding as much value as possible. If you’re on a tight budget, this forces you to think cheap. As much as you may want to add granite countertops to the kitchen or build a massive extension, this won’t be realistic if you haven’t got the funds. To help you to still make a profit, here are a few tips that will help you to flip successfully on a tight budget. 

Always inspect the property first

Most people buy properties to flip through an auction. It’s wise to always inspect the property first before attending the auction and placing a bid – this will allow you to fully assess the work that needs doing so that you can tell whether its feasible within your budget. The one thing you really don’t want to do is buy a property that you can’t afford to do up, all because you bought it blind in auction. This rule applies to all properties bought in auctions, but is especially important for those with limited funds. 

Get hands on

Hiring out contractors will ensure that the property is renovated to a professional standard, however it will cost you a lot more. Consider whether you can save costs by doing certain renovation jobs yourself. Jobs involving plumbing and electrics are best left to contractors, but you may feel confident enough to manage tasks such as repainting or laying new carpets. Know your limits – a botched job won’t do anything for the property’s value and could cost extra money to put right, so you’re best staying within your comfort zone.

Fix only what needs to be fixed

It’s best to prioritise fixing things that are damaged or worn. Don’t replace anything that’s in good condition (unless it’s completely ugly and likely to devalue the property). Even if you’d prefer to add new kitchen cabinets or retile the bathroom to fit your style, there’s no point replacing these if they still look decent – you’ll be wasting money that could be spent fixing things that are broken.

Focus on the details

You may not have enough money to completely refit the bathroom, but you may still be able to use small details to transform the room such as changing the toilet seat, adding a new light fitting or replacing an old mottled mirror. You may be able to order custom made parts from a plastic tubing & extrusion manufacturer for simply hiding pipes or covering wiring to make the property look more attractive. These small details won’t cost a lot to improve but could still leave enough of an impression to increase the value.

Consider using reclaimed materials

If you need to replace a countertop or relay a wooden floor, consider where you buy your materials. Opting for reclaimed wood could be much cheaper than buying brand new timber. Using recycled materials is also better for the environment, so you can feel prouder knowing your work has had minimal harm on the environment. 

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The appeal of personalised number plates has been a draw for many vehicle owners since they were first held back for individual sales in 1983 (although they were available by other means prior to that). There are many reasons why many of us are willing to part with our cash to get one, ranging from marking an occasion such as a wedding or birthday (think JU5T W3D), all the way through to making a statement, advertising or just for the prestige of owning a specific plate (QE 1, DB 9). If you’re looking to browse for your perfect reg, then visits sites like the DVLA or an online retailer.

Of course, some of these privately sold plates can run into hundreds of thousands of pounds to own which goes some way to explaining the £60 million plus that the DVLA makes from such sales every year. However, they can also be picked up from as little as £150 which can make them a particularly attractive buy and a big contributing factor in why there are so many out there today.

If you are considering a private number plate, or have your eye on one but fear it would be a frivolous purchase, it may be worth considering some of the benefits that come with having distinctive or meaningful plates:

They can work as a deterrent to would be thieves

Although a private plate will not provide any physical barrier to stop a thief in their tracks, a more easily recognised number may well make them think twice, as that quick but stealthy get away will be hampered if there is more chance of witnesses remembering the plates. Although your vehicle may be just like many others on the road, due to it being a popular model or colour, a distinctive number plate may be enough to keep it from blending into the crowd.

The value can rise

Although generally not as lucrative as it has been in the past, some people still buy private plates as an investment. Once the registration of a private plate has been bought, it becomes yours by right. Therefore, if you wanted to auction or sell the plates on, you are perfectly entitled to do so as long as you complete the relevant paperwork. Imagine having the rights to a private plate such as ‘GO0 GL3’ and the potential re-sale value to a UK based executive.

It can be a great advertising tool

As it is likely you will be fitting your private plates to a vehicle, it will also likely be mobile and therefore you will be creating a mobile advertising platform. Although limited by a relatively small number of characters, it is still possible to grab attention and therefore get a small message or endorsement into potential customers heads. This could be especially effective if used to bolster other advertising on a vehicle; BE5T C0D on a fish van for example, is sure to stick in peoples memories.

It can disguise the age of your vehicle

Using the DVLA registration method, as is the default method for all new car registrations, lets everyone know the date your car was registered i.e NE51 UBX would let everyone know that your car was registered in 2001. However, MR1 RU9 or other private plate removes the registration plates as a means to gauge the age of your vehicle.

They command attention

Whatever the reason for using a private plate, there is no denying that they stand out from the crowd. Any registration plates that don’t follow the norm are immediately noticeable and once noticed, people will try to work out what the message is and its significance. This in turn means that you are being noticed as people will invariably look at the driver to see if the private plates fit the profile of the owner.

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Buying a home is pretty much the single largest investment that a person can make.

So as a result, it means that most buyers will end up spending a lot of time and energy into looking for the right place for them to live. Even if it needs a lot of fixing up, then finding the perfect home is important before you sign on the dotted line. After all, seeing your home as an investment, as well as somewhere to live, is the money-wise thing to do. 

The location is important to look at, the price, the trends in the market, property taxes, and so on. Plus, buyers are likely to have their own set of lists that includes some specific needs and wants. While the home-buying process does involve a lot of important choices. So one of the first decisions that buyers need to think about is to decide whether you want to buy an existing home, or want to actually buy a new one. Each of the options has their own advantages, as well as disadvantages. So here is a quick look at both to see what is going to be the best investment for you.

Buying an Existing Home

There are two main advantages to buying a home that already exists. You are likely to know what they are already, but it is all about convenience and cost. Once you have sorted out your finances and know what you are looking at price-wise, you can house hunt and then make an offer on a home. From there, the offer will be accepted and you might be able to move in quite quickly, possibly within weeks. It really is quite convenient to be able to move in quite quickly. So if you are in a rush due to a relocation, for example, or just want to move in quickly, as a first time buyer perhaps, then buying an existing home could be for you.

Building a Home

Building a new home quite obviously doesn’t come with the same convenience. You can’t just move in if you are in a rush. Plus, it can be a bit of a longer process, as you have to find the area that you want, but also find the land where you can build. This can take longer, as there are certain rules and permits that have to be checked, as well as finding an architect, luxury home builder, and so on. However, the big advantage is you are much more likely to have a home that is exactly how you want it. You can renovate an existing home, of course, but you can build from scratch with a new home so can be so exactly how you want it. So that can be why building over buying can be a popular choice. 

You can make a home that is energy-efficient, making you save money each month, as well as being designed in a certain way. This can be a good thing to do if you are looking to really make an investment property, as you can make it look a certain way. Another perk to a new home? When you have a new home, it may be better for you and your health. A new home is something that is less likely to have the health concerns or things like toxic materials that older homes can have (such as asbestos and mold, and so on). 

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