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September 3, 2018

Guest Post: Four Steps to Eating Healthily on a Budget

Nick Saving Money food, guest post 0 Comments

Today I am pleased to bring you a guest post by Araminta Robertson, who blogs at Financially Mint.

Araminta is a university student and she writes from a young person’s perspective. Today she shares some of her top tips for eating healthily on a budget.

One thing many older people have in common with students is that they need to watch the pennies. Araminta has some great advice for all of us on how to eat both frugally and healthily.

Over to Araminta then…

It’s not easy to combine healthy, cheap, delicious and quick. And yet, it is still possible. As a student, I’ve always had to figure out the best combination, and through a lot of practice I’ve realised that the methods I used could also be very useful for anyone in a similar situation.

So – here are four steps get that sweet combination of exactly what you’re looking for when you eat. Here we go:

1. Plan it

The first step is to figure out your ‘magic number’; how much are you willing to spend? What is your budget for food for one month/week?

Start with that number and work your way back. Then make a list of cheap healthy food that you and your family enjoy. Some examples are:

Beans
Eggs
Tomatoes
Frozen veggies
Pepper + onions
Almonds
Lentils
Squash/pumpkin
Oats
Canned goods
Yoghurt and cheese
Quinoa
Carrots
Aubergine
Kale
Sweet potatoes and potatoes

Now you’ve got your magic budget number, some general ingredient ideas. What’s missing? A recipe. And it’s at his point that I whip out Google and simple type in ‘ingredient recipe’, so ‘carrot recipe’ for example. I do a bit of research, look for something simple and cheap to make. Some great websites to find these are BBC Good Food and All Recipes UK.

Do a bit of a rough plan – find some ingredients, do some research and pick some recipes you’d like to try out during the week. Then write down the list of ingredients you’ll need to complete that plan. It’s always fun to try some exciting recipes and do some experimenting. More on this later 😉

2. Shop it

Time to do some exploring! If you want to stick to a small budget, go to discount supermarkets such as Aldi, Asda and Lidl. Bring your ingredients and grocery list and do the shopping!

A little tip: Don’t go shopping when you’re hungry, you’ll probably end up buying unnecessary stuff

What I normally do is one big shopping day a week and then some additional stuff from time to time. Pick a day to do your shopping for the week and buy it all at once. You’ll see batching is a huge productivity booster – no need to do mini shopping trips anymore! It’s also easier to budget week by week, this way it’s easy to know how much you spent on the shopping trip.

3. Cook it

Now to the exciting part.

What prevents most people from cooking is the ‘I’m rubbish at cooking’. We were all rubbish at cooking at one point, and you get better by doing more of it. The first pie you make might be a disaster, but the tenth one will be pretty tasty.

Once again, batching: pick a day to do all the cooking for the week (I like Sundays). Make it a fun activity; include the kids, the family, the dog, even. A proper event, an afternoon where everyone gets together to prepare meals for the week. Of course, if that’s not possible then simply cook it yourself – but an event is always nice.

Have your meal plan ready and then cook and freeze stuff for the week. Soup, rice and beans can last the week – whereas meat and potatoes aren’t very good at that. As you cook more and more you’ll figure out what can be stored and what can’t, and you’ll also end up preparing some more delicious recipes.

I normally produce large quantities of rice/pasta/sauce/ and freeze it or leave it in the fridge. Then when it’s time to eat I just have to make the meat/veggies

4. Try it

The most important when improving your cheap/delicious/healthy meals is to keep experimenting (I even do fancy Money Experiments). Try new ingredients (I’ve got an interesting vegetable called a ‘swede’ in my kitchen), new recipes and new dishes. You’ll slowly get better at it. Now I consider myself an expert at making something out of scraps – stir-fry it all.

Here are some examples of cheap budget meals I like to do:

Soup – mushroom soup, pumpkin, lentil, tomato
Curry – could be vegetarian
Pie/quiche
Tacos/wraps/quesadillas
Jacket potatoes
Chili
Fried rice – literally just veggies, eggs and rice
Omelettes/scrambled eggs
Stir-fry

Also keep on the lookout for discounts, sales and chances to save a little bit of money. Here are some good websites to get started: Money Saving Expert, Super Savvy Me and CheckoutSmart.

There you go! Four steps to eating well on a budget. The hardest part is simply sticking to it and being willing to try new things. But if you make it a fun event every week, you can turn it into a family activity and be held accountable to do every week. Next thing you know you’ll be cooking fancy quiches and amazing risotto. Keep trying!

What’s your favourite recipe? Comment below!

Bio: Araminta is creator of Financially Mint, a personal finance blog for university students written by an actual student. She interviews experts, does weird experiments and a ton of research to help her and others graduate financially intelligent.

Many thanks to Araminta (pictured) for an interesting and useful post. Do check out her Financially Mint blog as well!

I guess some of my older readers may be amused by her reference to the “interesting” vegetable called a swede. Swedes are a vegetable many of us baby boomers remember well from childhood, and not always fondly! I must admit I haven’t cooked with swedes for a while, but promise to put them on my shopping list again during the winter months 😉

Like Araminta I enjoy looking for recipes on the internet, and I often use the websites she mentions, and various others. My personal tip would be to take a few moments to read the reviews and comments that are often left by people who have tried the recipes. This feedback is invaluable, especially the ideas for tweaking/improving the recipe.

As always, if you have any comments or questions about this post, for Araminta or me, please do post them below.

If you enjoyed this post, please link to it on your own blog or social media:

August 7, 2018

How to Win Cash and Prizes with Consumer Competitions

Nick Making Money, Everything Else guest post 2 Comments

Today I am pleased to bring you a guest post from Cora Harrison, a UK blogger and vlogger (video blogger) whose website is called The Mini Millionaire.

Cora is a successful ‘comper’ who (as revealed below) has won over £20,000 worth of prizes from free-to-enter consumer competitions. In her article she explains how anyone can follow in her footsteps and shares her top tips and resources.

Over to Cora, then…

Twenty years ago my dad, a former miner, spent most of his night shifts listening to the radio answering tie-breaker questions. He won a number of prizes, his favourite of which was a cash lump sum that allowed him to purchase a greenhouse for our garden.

Twenty years later and in my young adulthood I’ve found myself with the same hobby of entering competitions to win prizes. Albeit, things are slightly different now. That’s of course due to the internet, which has seen radio and postal competitions decline in favour of email and web-based competitions – after all, this is a marketing promotion for businesses, and they are interested in creating product awareness and getting you to buy their product.

While I’ve only been a true ‘comper’ for the past three years, I’ve managed to win upwards of £20,000 worth of prizes, including a television, a number of nights and weekends away, a family trip to Universal Studios in Florida, a games console, and much, much more…

Today I want to present a basic introduction to what I believe to be one of the greatest hobbies ever – comping!

Where To Find Competitions

Finding competitions has been made much easier since the birth of the internet. That’s thanks to database websites listing competitions, the answers to any questions asked, prizes on offer, closing dates, etc.

These websites include:

All the above links should open in a new tab.

As well as checking these websites regularly, I also subscribe to Compers News. For £4.95 a month I get a monthly magazine posted direct to my door with a directory of great competitions, news articles from the world of comping, and an online forum providing me with connections to people who share the same interests as me.

How To Enter Competitions

There are a number of different ways in which competitions can be entered. Prior to the internet the main ways were phone calls and the post. And while these methods of entry still exist, they are much less common now.

Instead, as I mentioned in the introduction, you’ll find many more competitions that are online based. They may require you to sign up for a free account for a website, for example, or even to comment via your social media account.

My favourites are known as ‘creative competitions’. These often require you to make or design something. They can sometimes require a specific skill and take longer to enter than other competitions due to the effort required. But of course this has the effect of reducing the number of competing entries, and gives you the opportunity to use your skills to give your chances of success a big boost.

Here’s my girlfriend’s entry to a recent competition hosted by British Heart Foundation charity shops. This required you to use your sewing skills to upcycle an item of clothing from the store.

https://www.instagram.com/p/BlLuanxAGPx/?taken-by=miss_rose1992

Unfortunately, she didn’t win the top prize of a European break for two. However, she had a fantastic time creating the outfit!

Hints and Tips

Now we know where to find competitions and how to enter them, I want to set out some basic hints and tips that should help you to enjoy your new found hobby of comping.

1. Only Enter Competitions For Prizes You Want To Win

Believe me when I say that there are thousands upon thousands of prizes available to win in the UK alone each and every month from competitions. And while some people choose to enter the competition regardless of the prize, I’d advise you to focus instead on a couple of items you’d like to win and enter those competitions specifically.

Spending more time on one entry rather than rushing through to enter as many competitions as possible is certainly going to increase your chances of winning those prizes you really want.

2. Don’t Get Discouraged

It’s easy to get discouraged in comping when you haven’t won a prize in a while. However, remember that everyone goes through a dry spell and absolutely any competition win is a great blessing.

Keep entering competitions for the prizes you want to win even when you’re feeling discouraged, though. You’re only going to win a prize if you enter the competition.

3. Get Creative With Your Entries

As I mentioned earlier, getting creative with your entries is a great way to extend this hobby into other areas of your life. We’ve created some fantastic photo entries, built forts from cardboard boxes, baked cakes, sewn outfits. You name it!

4. Hold ‘Comping Days’ With Friends And Family Members

Comping doesn’t have to be a lonely hobby. There are a number of comping clubs scattered across the UK and some national events hosted by the community. Even if you can’t attend one of the events in person get active within the online comping community in one of the many forums or Facebook groups.

Even consider having ‘comping days’ with your friends and family members. There are competitions exclusively for children that require them to be creative for a chance to win prizes. So consider getting some competitions for the children (or grandchildren) to do the next time they visit, for all the family to join in with.

Many thanks to Cora Harrison (pictured, right) for some great tips and resources.

When I was younger I entered quite a few competitions and won various prizes, including a crate of beer for devising a slogan for a brewing company. I also won third prize in a local radio competition where the top prize was a luxury Mediterranean cruise. Sadly, the third prize was just a leather passport holder and a book of travel tips. So near yet so far!

I do nevertheless think comping is a great sideline earner/hobby for older people. Age or disability are no barriers, and the costs are minimal. You can do it from the comfort of your home with the aid of the internet. It can help keep your grey cells active, and the lure of cash and prizes is hard to resist. So why not check out the resources in the article, including Cora’s own Mini Millionaire site, of course.

Good luck, and happy comping!

As always, if you have any questions about this article, for Cora or myself, please do post them below. And if you have any comping success stories or helpful hints and tips, do share them also!

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July 30, 2018

Guest Post: It’s Never Too Late to Boost Your Income!

Nick Making Money guest post 2 Comments

Today I have a guest post for you from my fellow money blogger Perry Wilson, who blogs at Stupid is the Norm.

Perry has some important advice for anyone over fifty who thinks they have left it too late to boost their income in later life.

Over to Perry then…

Okay. So you’re in your 50s, and while you’re not yet in retirement, if you stand on your tip-toes you can see it from where you are now.

You’ve definitely got more years behind you than you have in front of you. Maybe thinking ‘should have stuck in at school’? Or ‘I really screwed up’? ‘It’s too late now?’

Correct to the first two, wrong to the last one.

Let’s say you’re 55. Average mortality age for males is 79.4, and females 83.1. So, you have another 25 or so years left.

25 years. Hmm. If we go back 25 years, you’d only be 30 years old. Knowing what you know now, what advice would you give your 30-year-old self?

You’d advise yourself to do things differently, wouldn’t you? That’s good, because it means you’re taking responsibility for your current position. It’s an empowering admission because it puts the power of change in YOUR hands. It’s down to you. Master of your own destiny, and all that stuff.

Now, return to the present. You have (on average) 25 years left. There LITERALLY is no time to waste, and tinkering around at the edges is insufficient. You need to take ‘massive action’ (as Tony Robbins would say).

You have to put any pride to one side and do something extraordinary. Work more hours. Try something different. Something unfamiliar. Doing the same thing, something familiar, will get you what to have now – and it’s not enough.

I have a friend who decided to work eight hours overtime per week. That’s equivalent to a 20% pay rise. Extra money which he now invests.

I have another friend who delivers takeaways two evenings per week and makes a whopping £160 per week cash (and a free supper each night). An extra income of £8300 pa!

I do matched betting which regularly makes me £200 per week for half an hour’s work per day.

Be an Uber driver. Sell stuff on eBay. Start a blog and monetize it. Massive action.

Alternatively, do nothing. To do or not to do? That is the question. (Thanks, William).

Thinking and planning are important. But it’s action that changes things. Nothing changes until you take action.

Doing nothing is what normal people do. But that’s not you. If you’re still reading this it means you’re extraordinary. Different. Deserving of better.

Act now.

Don’t be Stupid and don’t be Normal.

Many thanks to Perry for some cogent advice. Do check out his Stupid is the Norm blog for more ideas and inspiration.

I agree absolutely with Perry that it’s never too late to boost your income, whether you are in your fifties, sixties, seventies, or older.

Indeed, there is a lot to be said for creating additional income streams whatever your age. For one thing, the extra cash can help boost quality of life for you and your loved ones. But beyond that, having an extra income source makes you less reliant on your salary or pension, and gives you additional options. It can also help keep your brain sharp and flexible, and provide the opportunity to be creative, meet new people, and learn new skills (or apply old ones).

On Pounds and Sense I regularly feature sideline-earning opportunities such as those mentioned by Perry, and many others too. No matter what your age or background, there are ‘side hustles’ (to use the modern vernacular) you really can make a start on today.

As always, if you have any comments or questions – for me or for Perry – please do post them below.

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April 16, 2018

Twelve Top Tips for Selling on eBay

Nick Making Money guest post 6 Comments

Today I have a guest post for you from Luci Olivia, who runs The Frugal Fox website and blog.

Luci is a highly experienced eBay trader, and in her article she sets out some hints and tips for making the most of this popular sideline-earning opportunity.

Over to Luci then…

Making money selling tat from around the house is great, as you’re earning extra cash and de-cluttering at the same time! For someone like me who is looking to buy a house soon, downsizing and making money ticks both boxes.

There are plenty of websites these days to flog your unwanted items. However, eBay is arguably the UK’s most popular customer-to-customer sales site. They have earned this reputation from being incredibly easy to use. They offer an honest way to earn some money, whether you’re organising your house, selling off some vintage heirlooms, or even ‘flipping’ items from a charity shop.

At any given time there are 100+ million listings on eBay worldwide, with 6.4 million listings added every day. In the UK alone there are 17 million people visiting eBay every month and 180,000 registered UK based eBay businesses so it’s certainly a way you can make some money!

There are a lot of beginner’s mistakes to be made and trials and errors to experiment with, but if you’re looking to make a little extra money this year then read these tried and tested tips from myself – an eBay veteran – to make the first time you sell go as smoothly as possible.

1. Pick an Account Name

Your eBay account name is part of what you’re selling. If you want to sell vintage dresses and your name is Laura’s Vintage Dress Store, it’s going to look more professional and instill more faith in your eBay shop than if you called it LauraSmith1975.

2. Fill Out Your Profile

Also fill in your ‘About’ page, add a nice background and show that you are a reputable business that people should have no worries spending their money with. I’m surprised by how few people fill out their profile – it might just make the difference between someone bidding or not bidding.

3. Take Clear Pictures

Make sure the pictures of the items are taken with a plain background, no shadows on the item, by natural daylight, and include any signs of wear or marks. Trust me – it’s much easier to sell to someone who accepts the flaws than sell and refund someone who didn’t know it had marks.

4. Put it in the Correct Category

I know it’s common sense to ensure it’s in the correct category, but eBay suggests a category once you’ve chosen your title and sometimes it gets it wrong! Check the category before you agree and your antique coin ends up in a category with key rings.

5. Use Keywords

Your item is more likely to sell with extra information in the title. For example, if you find an old games console under the bed and decide to make a few quid off it, as a buyer which are you more likely to click on – the listing called ‘PS2’ or the listing called ‘Barely Used PS2 Slim +2 Controllers, Tested and Working’?

6. Double Check the Spelling

If I search ‘Barbie Doll’ but you’ve inadvertently called your listing ‘Brabie Doll’ then it isn’t going to show up for me or anyone else looking for a Barbie. So double check your listing for spelling mistakes to ensure it’s seen by everyone who’s searching for it.

7. Describe it Well

You don’t need to be a salesperson to fill in the description. All I put is a brief description of the item with a few key words and some essentials about the item. For example: ‘Stunning fluffy and comfortable jumper with no snags or signs of wear. This item is from a smoke- and pet-free home and I’m happy to take more photos if requested. Please ask if you have any questions and make sure you see my other items for sale.’ That’s all you need.

8. Time the Ending

When your eBay listing ends is really important, because the more people who are on eBay at that time, the more likely it is that you’ll get a bidding war. You want your listings to end on either Friday, Saturday or Sunday any time from 5pm – 9pm. You can schedule your listing’s start time for free, so set it to go live at 7pm so it will end at 7pm in the future.

9. To Bid or Buy

eBay offers two main options when you’re selling an item: ‘Buy It Now’ or ‘Auction’. Auction items have the bonus of no top price; however, you usually have to start them at 99p to gain attention and appear in the search. Buy-It-Now items can be sold at any point and for the exact price you’re willing to pay. Weigh up your options and pick the right one for your product.

10. Know Your Fees

eBay offers 20 free listings a month but they do take 10% of the selling price so keep that in mind when you see the final figure. They will bill you monthly, so keep 10% aside for that bill. Also keep 3.4% aside as that’s what PayPal will charge. I usually keep 15% aside to be safe and keep my PayPal pot above zero.

11. Deal Professionally with Issues

There will be issues. You can do everything perfectly and there will still be issues. Unfortunately that is part of doing business – so if a customer isn’t happy, it’s best just to keep that smile on, remain professional and help them out (no matter how much they make your blood boil!).

12. Give and Get Feedback

To be a successful seller on eBay it’s important to build your reputation. So always take the time to rate buyers, and ask politely if they will do the same for you. Obviously nobody wants bad ratings, so if there have been any issues (see above) check and double-check that they have been resolved to the buyer’s satisfaction before asking them to rate you.

So those are my top tips for selling on eBay. It’s super easy, especially via the free app, so get listing and see first-hand how stress-free it is and how much money it could make you this year.

Thanks again to Luci (pictured, right) for her valuable tips. Please do check out her Frugal Fox website for more advice on saving and making money.

If you have never tried online auction selling before, I hope this post will inspire you to give it a try. It really is as easy as Luci says, and someone, somewhere will almost certainly want anything you have to sell.

In my own case, I recently sold a selection of old beer mats that I had originally scrounged from a local pub for our house-warming party twenty years ago. Although admittedly I did have to re-list them (for no extra charge) as they didn’t sell the first time around!

As always, if you have any comments or questions, for Luci or myself, please do post them below.

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February 23, 2018

Guest Post: SMI Change: What You Need to Know

Nick Pensions & Benefits guest post, benefits 0 Comments

This is a guest post by Sara Williams, who blogs about debt and credit ratings at Debt Camel. She is also an adviser at Citizens Advice.

If you get government help with some of your mortgage costs, you should have heard that this help, known as Support for Mortgage Interest (SMI), is changing from April 2018. About half the people getting SMI are pensioners who get Pension Credit. Many of the rest are disabled.

At the moment the SMI help is given as a “benefit”. But from April 2018, it will only be given as a loan that is secured on your house, so it has to be repaid when the house is sold.

This may sound very worrying. And some people are saying that it isn’t being explained very well by Serco, the firm the DWP is using to try to persuade people to sign the new loan documentation.

With only 6 weeks to go until the change, less than 5% of the people getting SMI have agreed to the new loan. And for people who don’t agree, their SMI will stop in April. This could mean people getting into mortgage arrears and ultimately having their house repossessed.

Questions people ask about the SMI change

Hundreds of comments have been left on an article I wrote about this SMI change. Here are some of the questions people are asking:

How much help will I get?

The same as now. Whatever SMI is currently paid to your mortgage lender, the same amount will be paid after April if you agree to the new loan.

But I’ll need more money each month as interest is now being added to this new loan?

You don’t have to start repaying this new loan, or the interest on it until your house is sold. So on an everyday basis, you will be in the same position as you are now.

Will the interest rate on the new loan increase?

The interest on the will be fixed to the UK Gilt rate – at the start it will be 1.7%. This is the rate at which the UK government can borrow – it will always be cheaper than most mortgage rates.

The loan is from the government, you don’t need to worry that Serco will change these rules and charge you more.

Will there be a delay before it’s paid?

If you are already getting SMI, the switch to the loan will be seamless; there won’t be any months when you aren’t helped.

If you aren’t currently getting SMI, the same waiting period of 39 weeks will apply as now.

Can I repay it if I get a new job?

Yes, you can repay the loan, or part of it, at any time. But it may be better to overpay your mortgage if you have spare money, as your mortgage rate will probably be higher than the interest rate on the SMI loan.

What other options are there?

Some options include:

ask friends or family to help you with your mortgage costs – this isn’t possible for many people;
get a lodger – but this could reduce your other benefits so get advice from Citizens Advice before deciding to do this;
use up your savings – but most people won’t have much and using what you have could leave you unable to afford an emergency;
sell the house and downsize or rent. This is a big change. It may be a good idea if your house is too large or difficult for you to manage or you have an interest-only mortgage ending soon, but you need advice on how it will affect your benefits first.

Should you agree to this?

I don’t like the change. I think it’s unfair and if people lose their homes, it could cost the government more money than it is supposed to save,

But you should make a pragmatic decision based on whether you have any better alternatives. Don’t be swayed by feelings about unfairness or politics.

Complain to your MP if you feel it’s unfair – these changes were discussed in Parliament, but they didn’t get much attention at the time – but don’t reject this loan without a better option.

The loan is cheap. Unless there are relatives who could help you, most people won’t have a good alternative. If you aren’t sure, or you have detailed questions, e.g. about what you are being asked to sign and its implications, go to your local Citizens Advice and ask for advice about the proposed loan and your finances, benefits and any other debts.

Thank you very much to Sara for a concise and informative article about the SMI change, which is clearly likely to affect some readers of this blog. If that includes you, with the new system coming in after 5 April 2018, it’s important to get to grips with the change and decide what is the best course of action for you.

If you have any comments, as always, feel free to post them below.

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February 20, 2018

Guest Post: Top Tips for Picking Up a Bargain!

Nick Saving Money guest post 5 Comments

Today I have a guest post for you from my fellow money blogger Vicky Eves.

Vicky loves nothing more than picking up a bargain, and in her article she shares some of her best tips and resources. Over to Vicky then…

I love a bargain. I mean, who doesn’t? Whether you are financially well off or not, why would you pay over the odds if you don’t need to? It’s not good financial sense. Buying second hand is also better for the environment so it’s a win-win. Here are my favourite places and ways of finding bargains.

Freecycle

I recently moved from a one bedroom flat to a three bedroom house. Much as I don’t want to fill my new place up completely, I knew it was going to be rather bare with only the belongings I already had.

Once the ball was rolling on my move I started planning and thinking. I would be using the third bedroom as a study or computer room. I had made do with my laptop on my knee for the last 12 years and I was so excited that I was going to have a study. I’d looked online and found a desk I really wanted. It was from Ikea and it wasn’t cheap, but as I’d never had a study before I built that expense into my budget.

A few weeks down the line, I was browsing Freecycle when I saw the EXACT desk I wanted. I thought it was too good to be true and that I would never get it (on Freecycle you have to be pretty quick off the mark as it is usually first come first served) but the owner still had it and was happy for me to take it. I went over there after work, and after putting all the seats down in the car and with the owner helping me take it apart I managed to squeeze it in. My move got held up so it was stored in pieces in the corner of my lounge for many months, but I am sat here now in my new house sat at my awesome FREE desk as I write this.

It is definitely worth bookmarking Freecycle and joining a few groups (it is done by area so you just find things that are close to you) and keeping an eye on it. I’ve got and given away other things via the site before but the desk is my favourite Freecycle item. Just remember that if you are meeting a stranger to purchase an item that you either go with someone else or that someone knows where you are – bad experiences are few and far between but it’s better to be safe than sorry.

Charity Shops

Such an obvious place to find a bargain – but how many of us actually go there when we are looking for specific items?

I regularly visited charity shops before I moved. I soon worked out which were cheaper and when each one would reduce or rotate their stock. I got some amazing bargains – including a little record player for my retro diner themed kitchen. Sometimes if you go in regularly you might get to know the staff and if they know you are looking for something specific or along a theme they will keep their eye out for you.

Car Boot Sales

Another obvious one, but do you ever go? I got so much awesome stuff at car boot sales over the summer before I moved. I found a big one near me that was every Sunday and I was there for a few weeks in a row. I’m still not convinced whether it’s better to get there early (to get the best things as soon as it is open) or later (when the sellers are getting bored and ready to go home and reduce things), but either way you can get some great things.

Don’t be afraid to haggle either. The first couple I went to, I was rubbish at it. They would say a price and I’d go “Wow, bargain” and just hand over the money. I know you won’t want to offend the seller, but they want rid of the stuff, so even if you just try £1 or 50p less than they’ve suggested and they meet you half way, the savings adds up!

Facebook Selling Groups and Shpock

Facebook selling groups are almost like online car boot sales, and Shpock even calls itself the “Car boot app”. With Facebook you join groups local to yourself and browse or search the items that people are selling. With Shpock you can search for the item and set a search radius.

You can still haggle online – negotiate with Facebook sellers via the messaging facility and Shpock is set up to haggle – you make an offer and they counter it until you find a price that works for you both. You would then arrange a mutually convenient place to pick up the item and make payment. Again, remember your safety when meeting people in person.

What If You Don’t Want Second Hand?

Whether you don’t want second hand items, or you just can’t find what you want via any of those methods, some of my favourite places to find bargains are outlet villages and clearance shops. Be sure to do your research online to make sure that the special offer or price is as special as they say, but if you know what you want and have a price in mind, you can really find some great deals.

Whilst technically second-hand, if you are on a budget or like a bargain, have you considered getting reconditioned items? They will have been pre-owned but they will have then been serviced or checked over and you will get some form of guarantee from the retailer. I know people with Dyson, Sony and Apple reconditioned items which they say are as good as new but they got for a fraction of the price! I’m definitely considering going down that route next time I need something electrical.

I’d love to hear about the bargains you’ve found. Please comment below, and pop on over to ibeatdebt.com for more money making and saving tips and articles.

Many thanks to Vicky for an eye-opening article. I would just like to add my recommendation to hers for reconditioned items. In the last few months I have bought a reconditioned digital radio and portable DVD player, both at around half the standard price for new products. Both were (to my eye anyway) indistinguishable from new and worked perfectly out of the box. In my experience that isn’t always the case when buying new from retailers or wholesalers.

As always, if you have any comments or questions about this post – for me or for Vicky – please do post them below.

Happy bargain hunting!

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October 10, 2017

How to Invest for Income from High-Yield Share Dividends

Nick Investing guest post 19 Comments

Today I have a guest post for you from my fellow money blogger Lewys Lew, who blogs at The Frugal Student.

Lewys has a particular interest in dividend investment. As I know this is a subject of interest to many readers of this blog, I asked him to write about it here.

Over to Lewys, then…

I watched the Conservative party conference in despair!

Not because I’m a Conservative but because once again the vultures circle Theresa May and Brexit seems to be going backwards.

Not that I voted to leave, but this constant uncertainty unsettles me and the market.

To add a cherry on top of bad news, productivity in the UK has begun shrinking and we’re no better off than we were in 2007.

What this means for you and me is that the economy continues to struggle and along with that interest rates remain dire.

Sure, for those of us who save a few pounds a month there are some decent bank accounts out there that offer 2%+ interest but these usually come straddled with a set of conditions and maximum deposits.

For those with large sums lying dormant in bank accounts the deals on offer are pitiful. With the current rate of inflation, your cash-pile may even be worth less.

In this post, I’m going to share with you how you could earn 5% in interest yearly.

Before we begin, there are a few things to note:

If you use this method your money is at risk.
To reduce risk, you should be prepared to lock your money up for 5+ years.
This method may not be suitable if you’ll need to use this money in an emergency
(remember to always keep six months’ worth of expenditure in an easy-access account)
Here’s some key terminology before we start:

Dividend = Money a company pays to you as a reward for being a share-holder.

Dividend Yield/Yield = A dividend as a percentage of a current share price, as so:

Dividend per share/Price per share.

Right, let’s get stuck in!

Dividend investing is a vast field. Myself, I’m a dividend growth investor. At 24 years old, I seek to buy stakes in companies who are growing their dividend at a rapid pace. Over time these types of stocks often increase their dividends at higher rates than companies who already pay a dividend at a higher yield.

But for those who maybe don’t have the benefit of a 30-year investment horizon, dividend yield investing may be a better choice for you. Frankly, getting just 1% of invested monies back as a dividend each year isn’t going to satisfy you if you’re close to retirement or retired.

The good news is that there’s an alternative dividend investing method that could see you getting 5% of your invested monies back each year, along with some capital gains along the way.

I’ll illustrate dividend yield investing with this example…

National Grid is a very boring, steadily performing utility company. It owns and manages the UK’s grid structure along with some bits in the United States and in return is allowed to make a modest profit from its operations. It’s a monopoly, meaning that we don’t need to worry about competition or anything of that sort.

As we can see from the graphic below (from the Hargeaves Lansdown website), National Grid pays a 5.15% dividend. This effectively means that for every £100 you invest, you’ll get £5.15 back every year.

The good news is that National Grid buys back its own shares, pushing up the capital value of your holding and reducing the possibility of capital loss over the long term (5+ years).

Dividend investing can be especially powerful if you use your dividends to buy more shares.

£1,000 worth of National Grid shares would let you buy around 5 additional shares with the dividend after one year. Compound this over the years and you could really start building a decent stream of dividend income.

Pros and Cons of High Yield Investing

Cons

When dividend yields go over 6%, this can be an indication that the stock is risky, as investors are fleeing the stock, thus reducing the share price and increasing the dividend yield (as this is relative to the price).
Stock prices could fall below your original purchase price and dividend income combined, leading to a net loss.
A large capital deposit is needed to make this method really effective; small amounts won’t really go a long way.
You have to pay to buy/sell stocks.
Identifying safe higher yield stocks can be difficult and time-consuming.

Pros

A 5+% dividend yield smashes any bank account out there.
The combination of steady stock price rises and dividend income can really boost your savings.
Large and ‘boring’ companies such as National Grid are very resilient and it’s relatively unlikely that you’d find yourself at a capital loss if you held such stocks over five years.
Remember that other investments can carry large risks and costs too. One such example is buying a rental property, where bad tenants, maintenance costs and the hassle can eat away at returns. By investing in a large company you won’t need to do anything else. Just sit back and soak up the dividends!

How Do I Buy Shares?

If you’re interested in building yourself a dividend income later on in life (40+) then I would certainly recommend chasing higher yields from boring large companies such as National Grid.

In order to buy shares you’ll have to sign up with a broker.

The most popular in the UK is Hargreaves Lansdown, but this platform charges a management fee of 0.45% annually, in the case of National Grid lowering your net income from 5.15% to 4.7%. They also charge £11.95 for share repurchases and 1% for dividend reinvestment.

To really reap the benefits of this strategy, I’d recommend signing up with online brokers De Giro, who only charge £1.75 a trade with no management fee.

If you like the idea of dividend yield investing but the risk is a little too high for you, I recommend you take a look at my Nutmeg Investment Review for a platform that manages your portfolio for you.

Many thanks to Lewys (pictured, right) for an eye-opening article.

Personally I have tended to stick with self-selected funds and ready-made portfolios (including Nutmeg) for my core investments, but I can certainly see the attraction of high-yield share dividend investing for part of my portfolio – especially as (being semi-retired) I am now looking to generate an income from my savings.

Another thing in favour of dividend yield investing is that there is a generous annual tax-free dividend allowance (which most people don’t make use of). Currently you can earn up to £5000 a year in dividends before any tax is due. The government has threatened to reduce this to £2000, but even if that happens the allowance is still well worth taking advantage of, as it comes in addition to other tax-free saving and investment opportunities such as ISAs.

If you have any comments or questions about this post, as always, please do leave them below.

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