How to save money on your insurance

by Magical Penny on July 14, 2011

Normal scheduling will resume shortly, including information on if SIPPS are right for you and other investing topics, but in the meantime, I hope you find this guest post helpful! Take away point: negotiations work -use them to your advantage.

Whether you’re shopping for home insurance or boiler cover, you’ll want to make sure you get the best deal possible. But it isn’t going to be handed to you on a plate. Haggling will be your best tool when it comes to getting an agreeable quote, whether you’re renewing with your current provider or looking elsewhere. If you’re looking to get a decent discount, you’ll need to learn the gift of the gab quickly – here’s what you need to do.

Start at 60%

When you’re looking to get a good deal, 60% of the asking price is a good place to start haggling. In most cases, you won’t get this much of a discount, but it gives you room to manoeuvre – and means that a 10% or even 20% should be achievable.

Play one insurer off against another

If you’ve managed to get an agreeable quote from an insurer, don’t jump at it – use it as a springboard to a better one elsewhere. Get a reference number and contact competitors – insurers are desperate for business in the current climate, so it’s in their interest to beat the quote and take your business.

Have a back-up argument

Go into your haggling prepared with a plan B or even plan C – insurers deal with hagglers every day, so they’ll have stock answers for common queries and tactics. Think of ways you can sell yourself as a customer – your years of no-claims or, in the case of car insurance, advance motoring certificate.

Refer your friends and family

Telling an insurer that you’ll refer your friends and family in return for a discount may well seal the deal. Another option is to promise repeat business – if you’re a property investor and are looking insure more than one home, suggest that the more policies you take out, the cheaper they become.

Be realistic

Don’t get too carried away – if a boiler insurance policy comes at £10 per month, it’s unlikely you’ll get it down to £2. However, play your cards right and it could certainly be nearer £8. At the other end of the scale, if you’ve been quoted a four-figure sum for your first car insurance policy, there could be room to get down to three-figures if you argue your case. Making sure the negotiations go your way is a delicate process – be polite but firm, determined by flexible and prepared to put the hours in and you should come out with a few extra quid in your pocket each month.

 

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Using credit cards to do more with your money

by Magical Penny on July 13, 2011

Editors note: Today’s article is a guest post from Mike.  Whilst credit cards can be controversial when it comes to personal finance, they certainly do have their uses. Just make sure you’ve paid off any credit card debt before you start investing.


Using credit cardsFor most people, credit cards can be a handy way to pay for certain things over a longer period of time. This might mean taking care of larger bills, splashing out on a luxury item every now and again,or treating the family to a day out. But what many people don’t take advantage of is the fact credit cards can be a means to help you better manage your money.

When you use your plastic wisely, it can do so much more. Of course, this is entirely reliant on how sensible you are with your cash in the first place and how dedicated you are to making sure anythingyou borrow is paid back on time. For those who have multiple credit cards, for example, it can often be sensible to use individual ones for specific things. So, if you want to clear existing debts, you might use one card for this and keep your other card for day to day expenses or emergencies only.

One thing everybody should do is compare credit cards to see which has the best rate of interest.If the rate on offer is better than what you are currently paying out to your current provider, thenperhaps it is the time to switch. One thing that can also be helpful if you are planning to do this arebalance transfer credit cards, as very often these will give you 0% interest on the amount you bring across from your own card. However, this may only be for a specific period of time so, as always, it’s best to check the details before you make the switch.

Another great option which can tempt people away from their existing provider is plastic that gives yourewards as you spend. Air miles credit cards continue to prove popular with people who are hoping to someday take a dream holiday to a destination they could otherwise not afford. As you spend, your air miles will accrue and if you have the account for a few years you could soon see them clock up enough to get you a flight to some exotic location or other.

The main thing to remember is that a credit card will work more effectively for you if you use it carefully, as opposed to maxing it out as soon as you get it. We all need a little help with bills fromtime to time or paying for expensive purchases, but with the right credit card – or one that gives you something extra each time you use it – your wallet can do so much more.

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Mindset -Cultivate A Good Mindset and Rock Your Life

by Magical Penny on June 20, 2011

When I first starting getting interested about investing and the stock market, I was pretty intimidated. Maybe you are too.

Similarly, when I graduated and was thinking about what career I should go into,  I was overwhelmed by the options. Even worse, there were some really good jobs I didn’t even bother applying for, because I didn’t think I could get them.

The difference between someone who applies and eventually gets the job, or the person who starts saving for the long term instead of just spending for today, is mindset. It’s not brains. It’s not blind confidence. It’s mindset.

 

This video also contains information about a limited-time offer that has now ended. Bad luck.

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How To Get The Right Mindset To Completely Rock Your Life

When it comes to being successful at saving money, growing your income, finding a career, and just about anything in life, it’s not really about what you know or even who you know, but success comes when you reach a point where have the right mindset to just GO FOR THINGS.

I’m not talking about being wreak-less, nor am I writing about simply *wishing* for a better life.

But rather I’m stressing the importance of working on yourself -reading things and doing things that gives your mind a chance to believe in your potential.

It might sound a bit too motivational, but you know what? You should be motivated to completely rock your life.

 

Change your mindset, change your life.

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Some financial preparation for after you’ve gone

by Magical Penny on June 15, 2011

Today’s post is a guest-post from Emma.  Magical Penny is predominately aimed at those in their 20s and 30s, encouraging you to start saving for the long term.  As you get older, it only becomes more important  to make sure you are prepared for the next stage of life. Today’s article takes this topic further into the future. Take it away, Emma.


A new survey has highlighted how changes in the economy have made things more difficult for some people to make some provisions for after they’ve gone.
Conducted by Engage Mutual, a provider of a range of products including over 50 life cover, the research polled 3,000 people across the UK. These people were asked about their plans to leave a will behind when they die.

It was revealed that 33 per cent of those who have already made a will are concerned that by the time they die they will have spent everything they had to pass on. One fifth of people also said they’d been changing their mind about what the contents of their will should be after rethinking who should receive the inheritance.

Commenting on the study, Engage Mutual spokesman Karl Elliott said:

“Wills are an important part of life planning and are there to ensure that your wishes are carried out when you die. It can be a complex process, and sometimes life’s twists and turns can make it more so, but a will can be changed to account for changes of mind.”

Another option you may like to consider to help your loved ones after you die is an over 50s life insurance plan. Policies differ between providers, but most will ask that you fall within a certain age bracket at the outset, 50 to 80 years old, for example – and are a resident of the UK. Once the cover is set it up, the benefits are be payable upon your death, provided you’ve kept to the terms and conditions, and are able to maintain the monthly premiums.

However, it’s important to remember that an over 50s life insurance plan carries no cash-in value and is not a savings plan. The policy will only pay out when you die and any benefits, while free from income and capital gains tax, could be subject to inheritance tax – unless the policy has been written in trust. You can apply online, over the phone or by post, and providers will offer you the opportunity to get a quote that lets you see how much cover you could receive based on a specific monthly premium. It should also be noted that you could pay in more in premiums than the plan pays out in death, but this will depend on how long the premiums have been being paid.

 

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How To Invest -An Interview with Betty Jean Bell

by Magical Penny on May 17, 2011

Last week I had the pleasure of speaking with business coach Betty Jean Bell of Love Your Worklife

We met in Austin, Texas, at a party Betty Jean was throwing for Jenny Blake of Life After College. I couldn’t pass up the chance to meet such inspiring people and the event turned out to be one of the highlights of my trip.

Upon my return Betty Jean was kind enough to let me share the Magical Penny message with listeners to her podcast over at Love Your Worklife. In the podcast I shared how I do the bulk of my investing, specifically :

  • Why index funds (sometimes called ‘Tracker’ funds) are so great
  • How you don’t need a lot of money to start investing
  • The benefits of a strong mind-set and the fun of partying with high achieving people

Visit Love Your Worklife for the full podcast or read along below:

Click to read the interview transcript

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Are You Intimidated by Greatness?

by Magical Penny on May 4, 2011

It’s human nature to compare yourself to others. But does this help or hinder your efforts to prosper in the future?

Since returning from Austin, Texas in March, Magical Penny has been quieter than in previous months. I could attribute the inactivity to a particularly demanding period at my day job, or the extra time and effort I’ve been putting in as a founder member of a new Leeds based choir preparing for our first concert.

But that would only be half right.

Click to learn why…

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Avoid Hitting the Rocks of Financial Ruin

by Magical Penny on April 27, 2011

You’ve got to know yourself if you are to make progress in life. You’ve got to know what helps you, and what stops you from achieving the goals you set for yourself.

I believe the difference between high achievers and those who have little to show for their years on the planet is remarkably little. We all can be lazy, and be influenced by temptation. But those who end up meeting their goals simply have a better understanding of themselves and ‘trick’ themselves into getting things done.

Controlling Yourself –Lessons from Ancient Greece

One of the most famous ‘tricks’ that someone played on themselves is in Homer’s Odyssey, an ancient Greek story of Odysseus and his journey across the known world.

Read the rest of the story

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This is a guest post from Jack Anderton. It’s an interesting post to publish on Magical Penny because I strongly disagree with it. But first I’d love to hear your thoughts in the comments!

 

Over the past few years investors have seen the prices of many assets take a nosedive. The stock market had its biggest plunge since the Great Depression of the late 1920’s. The Dow Jones Industrial Average was cut in half as investors dropped stocks and ran in search of safer assets. Stocks were not the only asset classes in for pain. Real estate prices took a nose dive also as prices in most markets were down 30%. Some areas even experienced price drops as great as 50%. Which asset would make the better investment going forward?

Click to keep reading

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Time Machine -W/C 14th March 2011

by Magical Penny on March 16, 2011

The sooner you improve your money habits and start saving and investing, the more time you’ll have for your money to grow.

If you were not reading Magical Penny a year ago, here’s what you missed:

 

 

 

 

 

[click to continue…]

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Payment Protection Insurance Receives Most Complaints

by Magical Penny on March 15, 2011

Payment Protection Insurance (PPI) is one of the most complained about financial products.

Statistics published by The Financial Ombudsman Service (FOS) show that there was a 15% spike in the number of complaints being escalated for FOS mediation in the second half of 2010.

While this increase was across the board and for all financial products, PPI headed the list of products receiving most complaints.

What Exactly is Payment Protection Insurance (PPI)?

PPI is also known under other terms such as loan insurance and mortgage protection insurance, and was systematically sold to clients taking a loan, mortgage or using credit cards. The policies were intended to protect the financial consumer in the event that their ability to keep up with loan repayments changed.

The reality is however very different, the security it was designed to extend rarely worked and the scale of mis-selling is huge. Click to Learn How Was PPI mis-sold and How You Can Move Forward

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