Today I have a guest post for you on a subject I don’t generally cover on Pounds and Sense.
Cryptocurrency investing/trading is risky and I appreciate that it may not appeal to many readers of this blog. On the other hand, I can’t deny there is a lot of interest in crypto, from younger people in particular. So today I am publishing a guest post for anyone who might be interested in finding out a bit more…
While some people prefer to invest in crypto as a side hustle, others want to take it a step further and become a full-time home-based crypto investor.
Investing time and money into crypto can be risky, so it’s important that you know what you are doing and you pay attention to how the markets change. In this article we will go over a few tips and tricks to help you get started.
Create a Working Space
One of the first things you will need to do is set up a working space for yourself. It is important that you have a designated area to work in, as this will help you stay concentrated and focused throughout the day. If you can, it would be a good idea to have your workspace away from anything else, as this will stop you from getting distracted. A spare room or even just a corner in one room of your house will work well.
Keep Updated with Crypto News
Keeping up to date with crypto news is a great way to start off as a crypto investor. The financial markets can be volatile, so you must stay current with all the latest changes so that you can make any necessary adjustments to your investments. There are plenty of ways to stay up to date, but it could be helpful to download a crypto app that will help you manage your investments and also learn about any changes to the market.
Research Ways to Earn Bitcoin
It would be beneficial for you as a home-based crypto investor to start researching ways that you can earn Bitcoin, one of the most popular types of cryptocurrency. Learning the different ways you can earn Bitcoin will help you become a successful investor. One way you can earn Bitcoin is by trading a gift card you don’t need for it. Paxful allows you to safely buy Bitcoin with a gift card, which makes earning Bitcoin super easy.
Join Crypto Communities
If you are new to the world of cryptocurrency, then a good way to get started is joining different crypto communities. There are plenty of discord servers or Reddit subs that are specifically for crypto investors, so these can be helpful to be a part of. Users share their different experiences with the crypto market and offer advice and suggestions about when and how you should invest. For someone starting out as a crypto investor this can be invaluable, as you will learn about crypto from people who have more knowledge and experience than you (though don’t take everything you read as gospel!). Having a supportive community behind you will allow you to learn and grow as a crypto investor.
Thank you to my friends at Paxful for an interesting article.
Just to emphasize what I said at the start, cryptocurrency trading is high risk and definitely not for everyone. Yes, you can make a lot of money, but you can also lose your shirt!
My personal advice if nonetheless you want to explore cryptocurrency trading/investment is to start small with money you can afford to lose in a worst-case scenario. I also like the idea mentioned in the article of earning cryptocurrency rather than buying it. Obviously if your crypto is something you have earned or otherwise acquired yourself (perhaps by exchanging a gift card), losing it isn’t likely to be as painful 😮
I would love to hear your reactions to this article, and whether you think I should cover cryptocurrency more often on Pounds and Sense. I’d also be interested to hear about your personal experiences with crypto (no spam, please). Please leave any comments or questions below as usual.
This is a collaborative post.
Disclaimer: Nothing in this article should be construed as personal financial advice. As stated in the article, cryptocurrency trading/investment can be very high risk and is not suitable for everyone. Proceed with care and take professional advice if in any doubt whether it is right for you. All investing carries a risk of loss and this is especially so with cryptocurrencies.
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Being a pet parent can be an enriching experience or an abject disaster, depending on how prepared you are. Whether you are looking to bring a fluffy, four-legged friend into your home or you’re looking for something more exotic, there are several things you should keep in mind when bringing any animal into your family.
Consider All the Costs Involved in Pet Keeping
When we consider adopting a pet, the cost may not be your first consideration, but it should be. Aside from the adoption fees and the cost to feed your new friend each month, there are several other costs you will need to consider when you’re budgeting for a new pet. According to some sources, the estimated cost to keep a pet dog in the UK is around 1,875 GBP a year, which excludes any adoption fees or travel costs associated with bringing your new companion home.
Unexpected veterinary bills can also involve hefty costs if you’re not prepared. To keep these unexpected costs to a minimum, consider taking out pet insurance from Petsure for your new family member.
Prepare for a Long-Term Companion
While our furry, scaly, or feathered companions may not have the same lifespan as us, with some exceptions, it is essential that you research how long your pet’s average lifespan is in captivity before you adopt. Many people don’t consider that some fish can reach the ripe old age of 15 years old or that some reptiles have been known to exceed the 60-year mark. This is a huge time commitment and not one that should be taken lightly.
Pet-Friendly Properties and Pet Proofing
Thanks to the popularity of pet ownership, with an average of 62% of UK households owning at least one pet, many residential properties allow pet ownership in some form. However, while the average landlord may not have an issue with a small dog or cat, you should always check to see if they have any restrictions before starting any adoption process. This is particularly important if you plan to adopt a large dog breed or an exotic pet like a lizard or snake.
Even smaller animals that require some outdoor exercise time, like rabbits and guinea pigs, may not be welcome in all complexes. Once you’ve checked that your pet is welcome, ensure that your property is ready for them too. If you live in an area with open gardens, you may need to make a plan to install a fence or barrier to keep your pet within your property.
Get Your Whole Household On Board
While you may be super excited to adopt a new family member, pets tend to take over households. Whether it’s a cute kitten looking to make mischief under the sofa or a ball python that enjoys the occasional frolic around the living room, animals should be allowed some freedom to play outside of your bedroom. So, make sure your whole household approves of the new addition before you bring them home. Also, keep in mind that you may need to rely on the people in your house to take care of your animal when you are away, so making sure they are comfortable with your critters should be a top consideration.
Whether you are looking to add a cute fluffy hamster or a large scaly tortoise to your family circle, doing your research is key to a long and happy future together. And remember to always keep the animal’s needs and care requirements in mind before making any adoption decisions.
This is a collaborative post.
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I’ve mentioned several times on PAS why I believe having an independent financial adviser makes sense, even if – like me – you consider yourself reasonably money-savvy.
So today I thought I would set out some reasons over-50s (in particular) may benefit from having an independent financial adviser (IFA) or at least speaking to one.
This post has been created in association with my colleagues at Unbiased.co.uk, a well-established financial services website that can put you in touch with suitable IFAs in your area.
Reasons for Having an IFA
1. Helping Your Children Through College or University
If you have children, you will naturally want to help them complete their education safely and with a reasonable degree of comfort. Sadly the days of student grants (which I was lucky enough to benefit from in the 1970s) are well behind us now. There are various options for helping finance your children’s college or university education and a financial adviser will be able to explore these with you. They will also explain the pros and cons of the student loans system.
2 – Pension Planning
If you are over 50 you will inevitably be thinking about pension options, including when you can retire and how much income you can expect. An IFA will go through your finances with you and look at ways you may be able to boost your pension pot. From 55 onwards you can normally start to draw your pension, but you shouldn’t do this unless a financial adviser has assured you it will last you through retirement.
3. Investing
Hopefully by your fifties you will be earning a decent salary and may also have paid off your mortgage. You may also receive an inheritance or other windfall. Either way, if you find yourself with some spare cash you will want to invest it to get the best possible returns from it. An IFA will have access to all the latest information about a vast range of investment opportunities. They will guide you towards investments that are suitable for you based on your financial goals, your investment timeframe and your appetite for risk.
4. Starting Your Own Business
Especially at this time of upheaval due to Covid, many people are looking to start their own businesses in mid-life. That may be in response to redundancy or unemployment, or simply in search of a better work/life balance. An IFA can help you with the financial aspects of doing this, including raising money for tools, premises, transport and so on, or perhaps buying a franchise.
5. Emigrating or Retiring Abroad
Another way to revitalize your life may be to start afresh somewhere else, with new challenges and opportunities (and perhaps a better climate as well!). Or you may be looking to move to a favourite vacation destination to enjoy your retirement. Either way, an IFA will be happy to discuss the pros and cons with you, point out all the things you will need to take into account, and assist you with the financial arrangements.
6. Divorce
Sadly middle age sees the largest number of divorces. Your first priority here will be appointing a good solicitor to act on your behalf and protect your interests. Beyond that, though, divorce can have major ramifications for your finances. An IFA can help you assess your situation objectively and plan for a financially secure and stable future.
7. Downsizing
As the children grow up and leave home you may want to move to a smaller property – to make life simpler, save time on housework and free up money for more exciting things. An IFA can help you explore the implications of doing this and make the necessary financial arrangements.
8. Equity Release
If you don’t want to move – and are over 55 – equity release is another option for releasing funds. In recent years it has grown a lot in popularity. There are various possibilities, including home reversion plans and flexible lifetime mortgages. Most now come with a no-negative-equity guarantee, ensuring you won’t end up passing on debts to your next of kin. An IFA can go over the options with you and point out the pros and cons before you contact any providers.
9. Estate Planning
This obviously includes writing your will, but depending on your circumstances it can cover a lot of other things as well. Nobody wants to see all their money and assets falling into the hands of the taxman rather than going to their nearest and dearest. Speaking to an IFA who specializes in estate planning can give peace of mind and ensure that your loved ones are well provided for when you are no longer here yourself.
10. Helping Elderly Relatives
If you have elderly parents (or other relatives) you may find they are increasingly reliant on you for help and support. It may be up to you to arrange care for them and/or set up power of attorney so you can manage their affairs if this becomes necessary. They may also need help with estate planning (see above). An IFA can assist with all these things as well.
Getting a Free Financial Check-Up
Independent financial advisers do of course charge for their services. They are by definition unaffiliated and do not receive commission, so any recommendations they make are based solely on their client’s best interests. As I have said before on PAS, I certainly don’t begrudge paying my own financial adviser, Mike, as he has undoubtedly saved (and made) me a lot more money than he has cost me over the years.
Nonetheless, most IFAs will be happy to see you for an initial financial healthcheck free of charge. This can focus on a particular area of concern, so you could request an investments review, a pension review or a mortgage review. Alternatively, if you’re not sure which aspect of your finances needs more attention – or indeed whether you need advice at all – you could simply request a broad financial healthcheck.
Here’s what. Adrian Kidd, a financial planner at Radcliffe & Newlands, says about his approach on the Unbiased website:
‘I’d generally offer one or possibly two free consultations, taking about an hour, and these can be as specific or as broad as required. When someone books a financial healthcheck with me, I ask them to bring along all their documents relating to their finances – savings, investments, mortgages, loans, insurance, pensions, the works – so I can build up a complete picture of their affairs. I then go through these in more detail after the consultation, and follow up with an email that gives a summary of their overall financial situation.’
In these free check-ups: advisers won’t generally talk to you about products at all. The process of choosing the right products comes later, after the adviser has built up an understanding of you as a person and your financial planning needs. Only then will they recommend products, if asked to do so.
If you follow my link to the Unbiased website, you can complete a short, step-by-step questionnaire designed to identify the best type of financial adviser for your needs. You will then be shown a selection of suitable advisers in your area with contact information. They will be happy to answer any queries you may have and arrange an initial meeting without obligation.
As ever, if you have any comments or questions about this post, please do leave them below.
Disclosure: This is a sponsored post on behalf of Unbiased.co.uk. If you click through my link and end up becoming a client of a financial adviser listed on the Unbiased site, I may receive a commission for introducing you. This will not affect the service you receive or any fees you are charged if you decide to proceed further.
This is a fully updated version of a post originally published in 2020.
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Today I’m reviewing a new book called Extreme Frugality by my blogging colleague Jane Berry, also known as Shoestring Jane.
Jane runs a popular blog called Shoestring Cottage which follows her journey towards making a creative, happy and sustainable life on much less. She also runs a YouTube channel as Shoestring Jane, where she shares her thrifty life and money-saving ideas. And she is also a writer for the estimable Mouthy Money site, to which I am a regular contributor myself.
Extreme Frugality is divided into 13 main chapters, as follows:
Chapter 1: Frugal Foundations
Chapter 2: Stuff, Stuff and More Stuff
Chapter 3: Cooking and Eating Like Grandma
Chapter 4: Granny’s advice – ‘Make do & Mend’ and ‘Waste Not, Want Not’
Chapter 5: Buying Second-Hand and Getting Everything for Less
Chapter 6: Slashing Your Monthly Bills
Chapter 7: Making a Frugal Home
Chapter 8: The Frugal Cleaner
Chapter 9: The Frugal Garden
Chapter 10: Frugal Fashion: Dress for Less
Chapter 11: Frugal Fun and Travel
Chapter 12: A Frugal Christmas
Chapter 13: Health and Well-being on a Budget
There is also a section of references and resources at the end.
As you may gather, Extreme Frugality aims to show you how to develop thrifty habits (as our grandparents had to). The author says the purpose of doing this is to cushion you against hard times, be creative with what you have, buy just what you need, and eliminate waste from your home.
As a one-time professional writer and editor myself, I was impressed by the high standard to which Extreme Frugality has been produced. The style is clear and accessible, and the content neatly set out without any unnecessary typographical or design gimmicks.
Obviously in the current cost-of-living crisis we are all having to tighten our belts, so the advice in the book is very apposite at present. There are also plenty of suggestions for preventing waste, so the book should appeal to anyone concerned with their environmental impact as well.
It’s hard to pick out highlights as every chapter is packed with valuable tips and advice, but I especially enjoyed Chapter 6, which takes you through a wide range of methods for slashing monthly bills, including energy, water, Council Tax, broadband and so on. The advice in this chapter alone could easily save you thousands of pounds a year. But all the chapters contain useful advice, ideas and information. Even as a money blogger myself, I don’t mind admitting I learned a lot from it.
In summary, Extreme Frugality is a great guide for anyone looking to save money and reduce waste in these challenging times. It would also make an excellent gift for a friend or family member. I am happy to give it my highest recommendation.
As always, if you have any comments or questions about this post, please do leave them below.
Disclosure: I was sent a free copy of Extreme Frugality (in PDF form) to review. Please be aware also that this post (and others on PAS) includes affiliate links. If you click through one of these and make a purchase or perform some other defined action, I may receive a commission for introducing you. This will not affect in any way the price you pay or the product or service you receive.
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I’ll begin as usual with my Nutmeg Stocks and Shares ISA. As I only updated my full review of Nutmeg last week, however, I will keep it fairly brief today.
Nutmeg is the largest investment I hold other than my Bestinvest SIPP (personal pension). Withdrawals from the latter are still on hold to avert the risk of pound-cost ravaging.
My main Nutmeg portfolio, which I opened back in 2016, is currently valued at £19,733. Last month it stood at £19,292 so that is a rise of £441. My smaller Smart Alpha investment (opened in 2020) is currently valued at £2,987. Last month it stood at £2,921, so that is a rise of £66. My total Nutmeg investments have therefore increased by £507 month on month.
While the rise in October is of course welcome, my Nutmeg investments are still down by about 11% in value since the start of the year. As I said in my recent Nutmeg review, that’s clearly disappointing, but it’s still a lot less than the amount by which they went up in 2021 alone. And I am still over £5,400 in profit overall. I am therefore philosophical about this, recognising that all investments have their ups and downs and Nutmeg is hardly alone in seeing a drop in values this year. But I do understand why people who started investing with them in the last twelve months or so may be feeling disappointed. You might like to read this recent article on the Nutmeg blog where they discuss the performance of Nutmeg portfolios in 2022 and examine the outlook going forward.
There is actually an argument that now may be a good opportunity to invest while asset values are depressed. At some point we will see a recovery and people who invest at the present time will be well placed to benefit from this. Of course, nobody knows for sure when the recovery will happen or how much further asset values might fall first. Nonetheless, I am certainly considering adding further to my Nutmeg investments in the coming months.
Moving on, my Assetz Exchange investments continue to perform well. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.
Since I opened my account, my AE portfolio has generated £81.40 in revenue from rental and £30.80 in capital growth, a total of £112.20. That’s a decent rate of return on my £1,000 investment and does illustrate the value of P2P property investment for diversifying your portfolio when equity markets are volatile.
I now have investments in 23 different projects and all are performing as expected, generating rental income and in most cases showing a profit on capital as well. So I am very happy with how this investment has been doing. And it doesn’t hurt that most projects are socially beneficial as well.
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.
Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching almost every day. I currently have around £2,600 invested with them in 17 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question. At present most of my Kuflink loans are performing to schedule, though five have had their repayment dates put back.
My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than £200 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!
Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question
Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.
You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.
My investment in European crowdlending platform Nibble continues to perform as advertised. My latest investment was in their Legal Strategy. These are loans that are in default and facing legal action. Nibble buy these loans at a heavily discounted rate and then seek to recover as much as possible of the money owed. The minimum investment is 10 euros and the minimum period is six months. I invested 100 euros for 12 months initially at a target annual interest rate of 12.5%.
The Legal Strategy comes with a deposit-back guarantee. This is a guarantee to return the full investment amount at the end of the investment period and a minimum yield of 9% per year. The actual yield depends on how successful recovery efforts prove, so in practice you may end up with a return of anywhere between 9% and 14.5%. All has gone to plan so far, but I will obviously continue to report on this in the months ahead.
Earlier this year I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie. Unsurprisingly my investment has been up and down in the last few months, but it is currently about $8 in profit. In these turbulent times I am quite happy with that.
In addition, since I started on eToro, the pound has weakened against the US dollar, so my investment has benefited from this. My $508 US is now worth around £440 in UK pounds, so I am effectively £28 up overall. I am not claiming this as a particular benefit of eToro, but it does demonstrate how exchange rate fluctuations can sometimes work in your favour!
In any event, I’m looking on this as a long-term investment so won’t be judging it yet. I am also considering a further investment with eToro, possibly in one of their themed portfolios. You can read my full in-depth review of eToro here. I am also planning to publish a more in-depth look at eToro copy trading on the blog soon.
Moving on, I had another article published on the always-excellent Mouthy Money website. This one is entitled How to Save Money on Petrol. I was actually commissioned to write this when petrol prices were peaking. Since then they have fallen back somewhat, but with no end in sight to the war in Ukraine prices could easily shoot back up again. In the article I discuss my favourite website for monitoring petrol prices locally and also set out my top tips for cutting your petrol (or diesel) consumption.
As a matter of interest, Mouthy Money recently asked if I could increase the number of articles I write for them (so I guess I must be doing something right!). From November they will be publishing two articles a month from me. While they don’t pay me a fortune, the extra cash will undoubtedly help a lot in the cold winter months ahead.
Obviously energy bills are a particular concern for many people at the moment, so I hope you are getting all the help you are entitled to. By now everyone should have received the first instalment (£66) of the £400 rebate all UK residents are due on their energy bills for the next six months. If not, chase it up with your energy supplier.
I am with EDF, and they are crediting the rebate payments to my bank account once my monthly direct debit has been taken. Other energy suppliers are doing it differently, e.g. deducting the rebate from monthly direct debits before they are taken. This article from the popular Moneysavingexpert website explains how different energy suppliers are applying the rebate.
I also received a letter last week confirming that, as I receive the state pension, I shall be getting an enhanced Winter Fuel Payment of £500 in November or December this year, which will be very welcome as well 🙏
In the last few years I also qualified for the Warm Home Discount, which this year is being increased from £140 to £150. The rules are changing, however, and I suspect I shall be one of the people who misses out. The full new rules still haven’t been announced, but I will update my blog post about WHD as soon as I know more.
As I’ve said previously, the government’s Help for Households website has a helpful summary of all the financial assistance currently available and is regularly updated.
Please do check out as well some of the other posts on Pounds and Sense for advice and resources, especially in the Making Money and Saving Money categories.
Don’t forget, also, that there are currently two opportunities to claim a free share available. One is with Wealthyhood and the other with Trading 212 (the links will take you to the relevant blog posts). The Trading 212 offer closes on 8 November 2022, so don’t delay if you want to take advantage of this one. As far as I know the Wealthyhood offer is open indefinitely, but that could always change, of course 🙂
That’s all for today. As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!
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