infographic

Inesting Survey

New Survey Sheds Light on Britons’ Investing Habits

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Today I am sharing some interesting data from my friends at HSBC regarding British people’s investing habits.

This information comes from a survey conducted last year by Sticky and Censuswide on behalf of HSBC. The survey was conducted online, with a total sample size of 2018 adults. It reveals how and why people in the UK are investing, and (very importantly) why many are not.

The research revealed that nearly two-thirds of people had some form of savings (64%), with more than one in three (36%) saying they had investments. Nearly half (47%)  believed investing was a better way of achieving future financial goals in the current financial climate.

More than half of people (53%) who said they would like to invest but haven’t yet said they didn’t know how to begin. Just over 1 in 3 Brits are currently investing, so almost two-thirds are not.

Saving vs Investing

Somewhat reassuringly, two-thirds of people in the survey said they currently have savings (64%) and just under three-quarters (72%) said they have enough money put away to cover three months’ living expenses despite increases in the cost of living.

The main reasons people have for saving and investing are summed up in the infographic below…

Reasons for investing

As you can see, nearly half of people in the HSBC survey (46%) didn’t have a particular goal for their saving or investing – but those who did have a target were much more likely to be saving for something long-term (37%) like a house deposit or their retirement than short-term goals like holidays or other large purchases (20%).

In general, of course, saving for short-term goals is best done through cash savings accounts – but for long-term goals, typically five years or more ahead, investing is likely to produce better overall returns.

Investment Choices

The infographic below shows the main ways people in the UK are currently investing.

How are British people investing?

As you can see, the most popular investment is stocks and shares (44%), followed by funds (25%), bonds (20%) and property (19%).

When people were asked how they’d decided to invest, the most common reason given for choosing stocks and shares was the expectation of good returns (34%). Bonds were most often seen as a “safe” investment (38%).

Meanwhile, the reason for choosing funds was more equally balanced between being seen as offering good returns (34%) and being “safe” (30%), with the same being true of property (39% good return, 35% “safe”).

Barriers to Investing

When people were asked why they hadn’t chosen to invest, the most common answer (45%) was thinking they didn’t have enough money to do so. But nearly a quarter (23%) said they didn’t know enough about how to invest, ahead of the one in five (21%) who said they would worry about losing all their money.

For those who said they were scared of losing money, the main driver of those worries was the fact that investments can go down as well as up (40%). But that was followed by concerns about the need for access to their cash – with 37% saying they might need their money at short notice, and another 30% stating that their financial situation meant they couldn’t lock away money for a long time.

Those who chose to invest in jewellery and alternatives (wine, art, whisky, etc) were the most likely to say they had done so because they had expertise in that area (25%).

Investment Knowledge

When it comes to detailed financial knowledge, more than one in three (34%) said they didn’t feel they had enough information about investing. And those who wanted more help with their financial planning were most likely to need information about where to invest (25%), followed by support on types of investments (22%), the cost of investing (20%), and which investments are more or less risky (20%).

People who said they already received some information on investing were most likely to get that from their family (17%), their bank (16%), friends (15%) and social media (15%) – all ahead of financial newspapers (13%) and financial blogs (11%).

Nearly a quarter (24%) said they’d like to receive more information about investing from their bank as the primary source of information, ahead of getting help from investors (16%), social media (13%), family (11%) and financial blogs (11%) or financial newspapers (11%).

My Thoughts

Many thanks to my friends from HSBC for allowing me to share and discuss their data and graphics.

I’m not surprised that many people are wary of investing, as the subject isn’t generally taught in schools and the huge number and variety of potential investments can be bewildering.

What I find a little more surprising (and concerning) is that many more people have investments in the form of stocks and shares (46%) rather than funds (25%). I suspect this may partly be to do with people having a few shares they acquired from the big privatizations of the past such as BT and British Gas. There may also be a number who have shares through employee share schemes. Nonetheless – as I said in this recent guest post for the popular Money Talk blog – as an investment individual shares are a lot more volatile and risky. If you are new to investing, I highly recommend starting off with a collective investment such as a tracker fund or robo-adviser platform (see below). This will give you much broader diversification, which helps mitigate the risks involved.

As I’ve said before, if you suddenly find yourself in possession of a large lump sum (perhaps through an inheritance) there is a strong case for seeking advice from a trained and experienced independent financial adviser. You might like to check out my blog post on why, despite being a money blogger and considering myself reasonably financially savvy, I still have an IFA myself.

If you just want to get started in investing, there are various low-cost and relatively low-risk options you could consider. Regular readers will know that I am a fan of the robo-adviser platform Nutmeg, with whom I have been investing since 2016. Even with the recent turmoil in the markets caused by the pandemic etc., I have made an overall return of 37 percent from my investments with them. You can read my in-depth review of Nutmeg here if you wish.

Another possibility might be the wealth-building platform Wealthyhood, which is aimed especially at novice investors. You can get started on this with as little as £20 – and right now they are offering a free ETF share worth up to £200 to new investors, which should get you off to a good start! You can see my blog post about Wealthyhood and their special offer here.

Of course, all investing carries a risk of loss, in the short- to medium-term especially. You should therefore always do your own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed.

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

Disclaimer: I am not a professional financial adviser and nothing in this post should be construed as personal financial advice.

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Working at Home Infographic

Simple Hacks to Working at Home (Infographic)

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Today I have an infographic for you from my friends at ecommerce platform Quill. It sets out some of their top tips for working from home, and especially making the most of technoiogy.

While the purpose of technology is to make life easier, working from home comes with its own set of challenges. But with time – and by following some basic tips and guidelines – remote work can go from feeling like an uneasy compromise to becoming an accessible, convenient and comfortable way  of working.

Whether you’re a technology guru or a novice, remote work shouldn’t feel like an obstacle course. Technical problems such as lagging wifi, for example, can be resolved by means of an upgraded modem or network extender. Other common consequences of working remotely, however – including loneliness and lack of motivation – are more difficult to tackle and can negatively affect efficiency and productivity.

Fortunately a few changes to your remote working approach can make a huge difference. From your choice of attire to the design of your workspace and how you communicate with colleagues, this graphic shares a few simple but effective hacks to help overcome remote-working challenges.

Many thanks again to Quill for their infographic and tips. I have been working from home for over 30 years myself now, so I do generally agree with all of the above. I have very occasionally been known to work in my pajamas but have to admit this is best avoided really!

I definitely agree it’s best to have part of your home as your designated workspace. Ideally this could be a separate study or office, but at least a quiet corner where you can set up your equipment and files and not have to pack everything away at the end of the day. Growing numbers of people are now using garden sheds or extensions for home working, and this can also be a good solution.

  • Garden office pods are another option that is growing in popularity. These can provide a space-saving refuge in which you can avoid noise and other distractions and focus on getting your work done.

I also think that if you’re working from home, it’s vital not to let yourself become isolated. It’s very important to keep up connections with colleagues, friends and family. Home working can be especially challenging if you like and are accustomed to having colleagues to talk to. You really do need to build some social interactions into every day if possible – ideally face to face, but at least via the phone and/or social media. Your mental health may depend on it 🙂

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

Disclosure: Posts on Pounds and Sense may include affiliate links. If you click on one of these and go on to 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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Buy Now Pay Later

Buy Now Pay Later – What Is It and Should You Use It?

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Today I am looking at Buy Now Pay Later (BNPL). This is a retail payment option that has grown massively in popularity over the last year or two. It is most often used online but is also available at some physical stores (e.g. New Look).

I am indebted to my friends at HSBC UK for their assistance in researching this post (and the graphics). The stats in the article refer to an online survey of 1,000 people conducted by HSBC UK in March 2022.

What Is BNPL?

Most people’s first contact with BNPL comes when they are shopping online and it appears in the list of payment options.

As the name suggests, BNPL allows you to buy a product (or products) now and pay later. This typically involves paying a deposit followed by a short series of instalments. You may also be offered the opportunity to pay the entire sum after 30 days with no initial deposit.

So if – for example – the product/s in your basket cost £90, with BNPL you may be able to purchase with a down payment of just £30 and two further instalments of £30 at 30-day intervals.

One big attraction of BNPL compared with credit cards is that generally if you pay your instalments on time, you will not be charged interest. The BNPL firms make money by taking a commission from the retailer, which means they don’t need to charge anything to customers.

Another possible attraction of BNPL is that you won’t normally be required to complete a formal (‘hard’) credit check. You will just be asked a few quick questions and will be told there and then if you are eligible. The fact that you applied for BNPL won’t generally appear in your credit file or affect your personal credit score (whereas applying for a credit card certainly will).

  • This is likely to change in future, however, with greater regulation coming to the sector from 2023. Hard credit checks may be required from then on, in response to fears that BNPL is encouraging some people to spend more than they can afford.

BNPL is offered by a range of financial services companies, the best known of which in the UK are Klarna, Clearpay and LayBuy.

Who Uses BNPL and For What?

Research from HSBC shows BNPL has become the second most used form of finance behind credit cards (see graphic below). Women are more than twice as likely as men (43% v 21%) to use it.

Most used forms of finance

The HSBC survey found that BNPL was most popular among 25-34-year-olds, with nearly half saying they had used it in the past year (49%), followed by 18-24s (45%) and 35-44s (45%).

As regards what it is used for, the survey found that clothing was the most frequent purchase type with BNPL, followed by food & beverages, shoes, appliances & electronics, and games & toys. This is summed up in the graphic below.

What Is BNPL Used For?

What Are the Pros and Cons of BNPL?

In the HSBC survey, those using BNPL said they valued it over other forms of finance because of the ability to spread payments (20%). They found it quick and easy to use (15%) and more affordable (13%) – with 87% of people who had used it in the past 12 months saying they were likely to use it again in the next year.

  • BNPL is also popular among people who like to try before they buy (typically with clothing). By buying this way, you may be able to try your purchase without any monetary outlay and return it with no further commitment if you don’t like it.

Sixty percent of BNPL users in the HSBC survey did express some caution, however, saying one of the top three drawbacks was it was too easy to get into debt or overspend. One in five listed lack of availability as a key disadvantage (20%), while one in ten (12%) said the fact it didn’t build their credit score was an issue.

These concerns were also raised by those who hadn’t yet used a BNPL service – with 62% saying one of the main barriers to use was it appeared to be too easy to get into debt or overspend, and nearly one in three (30%) saying that was the primary factor.

My Thoughts

Thanks again to my friends at HSBC UK for allowing me to share their survey results and graphics.

With the current cost-of-living crisis, many of us are feeling the pinch at the moment. So it is easy to see the attraction of BNPL for helping budgets stretch a little bit further.

In my view, BNPL can be a sensible option if you need short-term credit and are confident you will be able to repay the money over the period specified. One big attraction is that most BNPL offers do not involve paying any interest as long as you stick to the terms of the agreement. Neither is using BNPL likely to affect your credit score (though it won’t help build it either). And, as mentioned above, payment-in-30-day offers can allow you to try before you buy without any up-front financial outlay.

  • Some BNPL firms also offer longer-term credit up to 18 months. A hard credit check is required for this and interest will be charged, so this is more like a personal loan. Interest rates tend to be high and you may end up paying back considerably more than you borrowed. I do not recommend going down this route, unless you really don’t have any viable alternative.

Of course, BNPL does have the potential for encouraging overspending and drawing you into debt you then find difficult to repay. If you miss any of the scheduled payments, penalty fees and/or interest may be charged and your credit rating may also be adversely affected. Ultimately, a debt recovery agency may be called in. If you think this is a risk, it may be better to wait and save up before making a purchase in the traditional way.

As always, please feel free to leave any comments or questions about this post below. I would also be very interested to hear from any readers who have used BNPL themselves. What did you use it for and why? And would you do it again?!

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Spotlight - How Are People in Britain Saving?

Spotlight: How Are People In Britain Saving?

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HSBC Bank (in association with pollsters YouGov) recently conducted a survey on saving in Britain. This looked at people’s savings habits and came up with some eye-opening results. I have summarized the main findings below, with graphics where relevant.

What Are the Most Popular Savings Options?

Unsurprisingly, the survey found that cash was Britain’s most popular saving option, with 53% of people saving this way. Other methods are also popular, however, as the graphic below shows.

Investment choices

The survey also found noticeable regional differences in savings habits. London appears to lead the way on cryptocurrency, with 6% of residents saving this way. People in the East of England are the most likely to invest in shares (23%), Scotland sees the most people investing in a pension (35%), and Wales has the highest proportion of investors in gold (4%) and antiques (4%).

Investing preferences by region

 

Couples living together top the table for people trying to save (60%), ahead of those who have never married (57%) and those who are married or in civil partnerships (55%).

The survey data also suggests a gender divide, with men more likely than women (57% vs 53%) to say they are actively saving in general. Men are also more likely than women to be saving into a pension (35% vs 26%) and are nearly twice as likely to invest in shares (21% vs 12%). This is summed up in the graphic below.

Saving Men vs Women

Only just over half (55%) of the population say they are actively saving for the future, but the survey found younger age groups were more likely to be putting cash aside, with 62% of 18-34 year-olds saying they were regularly saving, compared with 55% of those aged 45-54.

And while there’s only a small difference between men and women when it comes to putting money away in cash (54% vs 52%), the data does suggest a wider divide when it comes to other types of investments. As mentioned above, more men than women (35% vs 26%) say they are saving into a pension. Men are also nearly twice as likely to invest in shares (21% vs 12%) and investment funds (12% vs 6%) – while six times more men than women say they have bought into cryptocurrencies.

My Thoughts

As a money blogger, it was interesting for me to see this snapshot of how people in Britain currently save for the future.

One thing that struck me was the relatively small number of people – and women especially – who invest in stocks and shares. Although this can be riskier in the short term, if you are saving for the medium- to long-term, history shows that you are likely to get better results investing in equities (probably via a collective vehicle such as a tracker or investment fund) rather than cash.

Right now, the best interest rate you can get on cash savings is about 1.5%. With inflation in the UK currently up to an eye-watering 9%, this means money kept in a savings account will be losing value in real terms.

Of course, we all need cash savings to fall back on when the unexpected happens (a popular rule of thumb here is three to six months’ worth of expenditure). And there may also be particular things you are saving up for, e.g. a deposit on a house. In that case, you may prefer to save into a cash account, so your money is protected under the Financial Services Compensation Scheme and readily available when the time comes.

But if you are saving for the (indefinite) future and/or retirement, over a period of years investing is very likely to produce better returns for you. To give you an example from my own experience, regular readers will know I have (currently) around £23,500 in the robo-investment platform Nutmeg. Since the start of this year, with the war in Ukraine and inflation fears, the value of my Nutmeg portfolio has fallen by 7.5%. In the six years I have been investing with Nutmeg, however, my portfolio has grown by 60% (time-weighted). Clearly in the last six years I wouldn’t have made anything like that if my money had been in a cash savings account.

Obviously with investing you have to expect ups and downs, which is why you should only invest on a medium- to long-term basis. But over a period of years, investments have almost always out-performed cash savings, often by a considerable margin.

So I do believe everyone should educate themselves about investing and perhaps take professional advice about it too. I would also like to see more taught about investing in schools. And if you have children (or grandchildren), I recommend introducing them to investing from an early age. A Junior ISA can be one very good way of doing this 🙂

One other observation is that the HSBC/YouGov survey makes no mention of crowdlending/peer-to-peer (P2P) saving/investing. This has admittedly lost some of its sheen in recent years, with projects failing and several platforms collapsing. Some people – me included – have lost money with this. However, I do still believe in the potential of investing this way, as long as you are sensible and diversify as much as possible to spread the risk.

Again, regular readers will know that I have modest amounts invested with the property crowdlending platform Kuflink and crowdfunding platform Assetz Exchange. Both of  these have been doing well for me and generating returns of 6% or more. I also have a small amount in the European business crowdlending platform Nibble. Clearly this type of investment is riskier than bank savings, as your money is not protected by the FSCS. But returns can be significantly higher, and unlike equity-based investments they are not directly affected by the ups and downs of the stock markets. The latter can be reassuring when markets are volatile, as at present.

  • Finally, in case anyone is wondering, I am not a fan of cryptocurrencies and don’t therefore invest in them myself or write about them on PAS. As this recent article indicates, while you can certainly make money with crypto if you’re lucky, it’s also very possible to lose your shirt!

Thank you to my friends at HSBC for allowing me to use their survey results and infographics. They also have some tips here on how to save money and stick to your savings goals.

As ever, if you have any comments about this post and/or any of the survey findings mentioned above, please do share them in the comments as usual.

Disclaimer: I am not a qualified financial adviser and nothing in this post should be construed as individual financial advice. You should always do your own ‘due dligence’ before investing, and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

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Save Money by Saving Energy

How to Save Money by Saving Energy

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As I’m sure you know, energy bills in the UK (and worldwide) are rising rapidly at the moment. Add this to tax hikes and surging inflation, and many of us will undoubtedly be feeling the pinch in the months (and years) ahead.

The government has announced various measures to try to mitigate the impact of energy price rises. These include £150 council tax rebates for those in Bands A to D and a (somewhat controversial) £200 rebate on energy bills, repayable at £40 a year over five years. These measures may help a bit, but they are unlikely to cover all the increased costs on their own.

So today I am looking at how you may be able to cut your bills by reducing the amount of gas and electricity you use. I am indebted to my friends at renewable energy specialists Ecoflow for their infographic (below) and research, which I shall be quoting from in this article.

Infographic

The Ecoflow infographic below shows a range of data about household energy consumption, including how much electricity we typically use in a year and which appliances use the most.

Ecoflow energy infographic

The graphic shows that an average UK household consumes 14,900 kWh of energy (gas and electricity) per year.  That represents a daily energy consumption of 40.5 – 48 kWh per household.

The graphic also shows the amount of power used by different appliances in the home. Not surprisingly, the ones using most energy are cookers (19% of our total energy consumption) and so-called wet appliances (21%). Wet appliances include any that use water – washing machines, dishwashers, electric showers, and so on.

Covid has of course led to a huge increase in working from home – a trend which looks set to continue even as we move out of the pandemic. This has inevitably resulted in an increase in household energy consumption. Ecoflow say that the UK’s electricity consumption saw a 10% increase in 2021, reversing the trend in 2020 during which consumption fell by 14% year on year. The sharp increase in 2021 came largely from a return to relative normality following the restrictions and lockdowns of 2020.

When Is Most Energy Used?

EcoFlow have produced a breakdown of how our daily habits affect our energy consumption, which appliances are the most energy-hungry, and how we can change our habits to reduce our energy consumption. I have set out the main findings below, along with some ‘top tips’ for reducing energy consumption in the part of the day concerned.

Morning

A survey into Britain’s most popular breakfast choices found that 4/5 of Brits’ favourite breakfast foods are cooked. Despite changing lifestyles and eating habits, a cooked breakfast is clearly still a very popular choice. But how much electricity does it consume? Cooking appliances such as hobs (0.71 kWh per use), ovens (1.56 kWh per use) and microwaves (0.945 kWh per use) account for 19% of average electricity use.

Top Tip – As microwaves are more energy efficient than ovens, try batch cooking at the beginning of the week and reheating leftovers, rather than using the oven for every meal.

Afternoon

Working from home obviously increases electricity consumption, as devices such as laptops (0.4 kWh for 8-hour days), monitors and webcams become essential aspects of our home office. But WFH also allows us to carry out daily chores such as vacuuming and using the dishwasher (3.13 kWh per cycle) throughout the day. As mentioned above, wet appliances account for around 21% of our total electricity use.

Top Tip – Simple things to look out for to reduce electricity consumption include switching your washing machine to ‘eco’ mode and ensuring you only run it when it’s full. This will not only save energy, it will save water as well (and money if you are on a water meter).

Evening

Ecoflow’s research found that electricity consumption increased by 21% during the winter of 2020 compared to the summer. As the days become shorter during the winter months, our electricity consumption goes up and use of lighting increases significantly. Lighting accounts for 14% of the overall electricity usage in a home – per bulb this is 0.84 kWh.

Top Tip – Turning off lights and/or switching to energy-saving LED bulbs is an essential part of moving towards a more energy-efficient way of living.

More Tips for Saving Energy

Here are a few more tips for reducing your energy consumption and cutting bills, starting with one from the infographic.

  • Unplug devices from the wall and turn off standby. Leaving devices such as TVs on standby uses extra electricity. Though only a relatively small amount, if devices are left on 24/7 the cost adds up.
  • With rising energy prices, switching to renewables such as solar panels becomes ever more attractive. Although the government has reduced financial incentives such as feed-in tariffs, the savings alone from generating your own energy are increasingly compelling.
  • Insulating your home to keep warmth in during the winter months can reduce your heating bills. Even simple, inexpensive things like putting draft-excluders at the bottom of doors can make a significant difference over the course of a year.
  • If you have an old, inefficient gas boiler, consider replacing it with a more modern one. The Energy Saving Trust estimates that an average household could save £195 by switching from an old, G-rated boiler to a new, A-rated condensing boiler with a programmer, room thermostat and thermostatic radiator valves. If you live in a detached house, you could save up to £300 a year. Obviously installing a new boiler isn’t cheap, but if you can find the money it should be a very good investment.
  • If you have an old, inefficient boiler and receive pension credit or tax credits, you may be eligible for a FREE boiler replacement under the government’s ECO scheme. For more information about this, check out the in-depth article above from my colleagues at Over 60s Discounts.
  • Keep tumble dryer usage to a minimum as they use large amounts of electricity. According to the Energy Saving Trust, an average tumble dryer uses roughly 4.5 kWh of electricity per cycle. Dry clothes outside if possible or over an airer.
  • Wash clothes at 30 degrees (or cooler) wherever possible. Modern washing machines will still do a good job at these lower temperatures, and again the energy savings add up.

Closing Thoughts

Obviously I hope rising energy costs will not cause you serious hardship. No-one should ever be forced to choose between ‘heating and eating’. But I hope the information and tips in this article will at least help you reduce your energy consumption in the months ahead and hence lower your bills.

Remember also that if you’re on a low income, there are government schemes such as the Warm Home Discount to help you.

In addition, you may be able to save money by switching energy supplier. Right now there aren’t many good deals around, but if you switch to EDF via my (affiliate) link you can get £50 credited towards your energy account, which should certainly help a little 🙂

Thank you again to my friends at Ecoflow for their infographic and research data. As their R&D Director, Thomas Chan, says: ‘We have to remain mindful of our energy usage and the direct effects it has on the environment and climate change. By becoming energy independent and using renewable sources of energy such as solar, people can avoid high electricity bills during the winter months.’

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

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Top Ten Personal Finance Podcasts

Top 10 Personal Finance Podcasts (Infographic)

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Today I am sharing some information about personal finance podcasts. This is not a subject I previously knew very much about, so I am grateful to my friends at All Finance Tax for supplying the excellent infographic and some of the other info below.

What is a Podcast?

A podcast is like a series of radio programmes on a particular theme or topic, from politics to cycling. You can subscribe for free using a suitable app on your smartphone (or other internet-enabled device). You can then listen whenever and wherever you like, via headphones, earphones, through speakers, in the car, on the train, and so on.

Podcasts are a booming medium and one of the major trends of the last five years. There are now podcast shows on nearly every topic you can think of. And with the rise of both independent and conglomerate podcast production studios, it seems likely this new medium will be in our lives for many years to come.

In the same way people were once passionate about certain radio shows, podcasts have the same dedicated followings, thanks to hosts who become familiar audio friends. Some even run live events. As a medium, podcasts are incredibly accessible, with few barriers beyond an internet connection and a smartphone or other device that can stream audio. No matter where you are or what you’re doing, podcasts offer content that educates, inspires and entertains. If you have never listened to a podcast before, the BBC Sounds podcasts page is one good place to start.

How to Listen to a Podcast

The easiest way to find and listen to podcasts is by using an app on your smartphone.

If you have an iPhone, it will have a built-in app called Apple Podcasts. This works very well and allows you to search for and subscribe to any of a huge range of podcasts. All you have to do then is open the app any time you want to listen and choose the episode you require.

Android owners can use the free Google Podcasts app. You can download this from the Google Play Store if you don’t have it already. It is not as user-friendly as the Apple app and doesn’t have as many features, but will certainly get you started. There are also other free or inexpensive apps you can download from Google Play such as the highly-rated Pocket Casts or Castbox.FM.

Finance Podcasts

One genre with a surprisingly large, dedicated listenership is finance. While to some that might sound a dry, unpromising subject, the podcast medium has enabled content to be reinvented with an unexpected, creative approach.

With hosts ranging from seasoned finance professionals to novice FIRE (financial independence) enthusiasts, podcasts allow people who would never previously have been interested in finance – or perhaps even have been intimidated by the topic – to access valuable information presented in an engaging, inclusive way.

All Finance Tax rounds up the top finance podcasts in the infographic guide below. Find out about the must-listen shows, including podcasts about:

  • Entrepreneurship
  • Billionaire case studies
  • Female-led finance
  • Personal and couples’ finance
  • Start-ups
  • And more!

With snapshots of real reviews plus the best episodes to start with, this resource will help you find the right show for your personal interests and needs regardless of your outlook on finance. Read on for the full list of finance podcasts to start your listening journey!

10 Top Personal Finance Podcasts Infographic

Many thanks again to my friends at All Finance Tax for their help with this article. I have listed below all the podcasts recommended in the infographic, with links to their homepages (or another website) where you can find out more. You can also listen to the podcasts on the web via these pages, though using an app on your smartphone (as discussed earlier) may be more convenient generally.

Couple Money Podcast

Money for the Rest of Us

So Money with Farnoosh

The Fairer Cents

The Tim Ferriss Show

The Ramsey Show

The Mad Fientist

The Investor’s Podcast

The Creative Rebels (Podchaser page)

Planet Money

One more I would add is the Ask Martin Lewis podcast from BBC Radio Five Live. Martin is, of course, a well-known personal finance guru (and founder of the hugely popular MoneySavingExpert website). Although I can take or leave his TV shows, his podcasts are less gimmicky and include valuable, accessible advice on all aspects of personal finance (not including investing).

As always, if you have any comments or questions about this post, please do leave them below. I’d also love to hear about any personal finance podcasts not mentioned above which you enjoy and recommend!

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How Our Mental and Financial Health has Changed Since Lockdown

How Our Mental and Financial Health Has Changed Since Lockdown (Infographic)

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Today I have an eye-opening infographic for you from my friends at National Conversation Week, which I mentioned a few days ago in this post.

The infographic is based on a YouGov survey commissioned by Paymentshield as part of National Conversation Week, which this year runs from 11-18 May.

Among other things, the survey revealed that money is currently the third-biggest concern for the public, following fears for friends and family, and health worries. More than a third of respondents (39%) also reported a decline in their mental health since March 2020. Thirty-eight per cent of people said their financial worries had increased during the coronavirus outbreak.

About National Conversation Week

National Conversation Week aims to get people talking in a bid to improve the nation’s well-being, at a time when people are facing unprecedented challenges and are separated from each other. In particular, this year’s awareness week encourages conversations about money, to tackle increasing financial worries among consumers.

Financial organisation Paymentshield has teamed up with independent financial research company Defaqto and mental health charity Mind to emphasise the importance of financial conversations, and the close relationship between financial and mental well-being.

Financial worries have a huge impact on mental health, and talking to someone about the situation can be very helpful. However, the survey found that nearly a quarter of people (24%) are avoiding talking about finances with friends and family, for fear of burdening them or making them anxious.

As well as the effect on mental health, coronavirus is affecting consumer behaviour. Thirty-six per cent of people say that coronavirus has already had a negative impact on their personal finances, with 35% increasingly trying to cut costs during lockdown.

During periods of financial uncertainty, people tend to consider their outgoings and can be tempted to make risky financial decisions based purely on cost alone. Despite the increase in money worries and a drive to cut costs, 92% of people had not spoken to a professional financial adviser. Doing so could help alleviate concerns and provide greater understanding of each individual’s situation for peace of mind.

Jennifer Ripley, Head of Marketing at Paymentshield, said:

“The current situation has affected everyone in different ways. People are facing a variety of challenges, from health worries to loneliness, and concerns about loved ones on top of financial difficulty and uncertainty. National Conversation Week aims to encourage safe, socially-distant talking as a way of alleviating some of those worries. In particular, we want to raise awareness that a simple chat about money can help, especially when it comes to making risky financial decisions. This week, we urge everyone that is worried about finances to talk to a professional financial adviser.

“Our research found that 41% of people are actually talking to friends and family more during the lockdown, through messages, video calls, and phone calls. We’re calling on the nation to keep the conversations going, so people can help to cheer each other up and take care of each other during these tough times.”

The annual awareness week, founded by Paymentshield, is now in its fourth year. For more information, resources and advice, or ways to get involved, visit: http://www.nationalconversationweek.co.uk

My Thoughts

Thank you to my friends at National Conversation Week for the information above and the infographic. There are some pretty shocking stats in this, including the fact that nearly 40% of people admit to their mental health declining since the start of the pandemic.

So it really is essential to reach out for support if you need it right now, whether for financial, mental health or other reasons. Speak to friends and family members, and to financial experts if appropriate (here’s a link to my blog post about why I have a personal financial adviser). There is also some great advice about looking after your mental health during the pandemic at www.mind.org.uk/coronavirus.

Above all, though, be kind to yourself, and don’t suffer in silence. And equally, if you know someone who may be struggling – or you just haven’t seen or heard from them for a while – reach out by phone or at least message them to check they are okay. It may be a bit of a cliche, but we really are all in this together. And pretty much everyone is struggling in their own way.

As always, if you have any comments or questions about this post and/or National Conversation Week, please do leave them below.

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Elderly People and Scams Infographic

Elderly People and Scams (Infographic)

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Today I’m sharing another eye-opening infographic from my friends at the credit reference agency Equifax.

It’s an unfortunate fact that older people with vulnerabilities can be targeted by scammers. Older people often fear being mugged or burgled – but 90% of all crimes committed against the over 65s are actually fraud.

Scammers don’t always come across as aggressive or pushy – they can often appear very polite and friendly, which is how they win people over and gain their trust. They use several methods to commit identity theft and steal money, which include:

Age UK has reported that almost 5 million people over the age of 65 believe they have been targeted by scammers. People living on their own, or suffering with dementia, are especially vulnerable.

The same study revealed that 27% of single people were duped by a scam when they were targeted, compared with less than a tenth of people who lived with someone else.

The cost of fraud – in terms of money, time and individuals’ health – is massive.

  • In 2017, victims suffered an average loss of £29,000 due to investment fraud
  • On average, pension scam victims lose £91,000
  • It can take weeks to sort out the aftermath of a scam

The infographic below sets out some ways to help elderly people protect themselves against scammers – and warning signs that might suggest they’ve been targeted..

Thank you to Equifax for an eye-opening graphic. If you help look after an older person – whether it’s a friend or a family member – it’s important to keep an eye out for this and offer advice and support when appropriate. This applies especially if they live on their own.

The infographic includes some excellent advice on ways to reduce the likelihood of being scammed online. But, of course – as mentioned at the start of the article – scammers operate in other ways as well.

An increasingly popular method is scam phone calls, e.g. this one where the victim receives what appears to be a genuine phone call from HMRC telling them that they are being prosecuted for tax evasion. Of course it’s a lie, the purpose of which is to get the victim to make payments into the scammer’s bank account and/or hand over their bank details. If you know any older people who may be vulnerable to telephone scams, it’s important to warn them about this and tell them always to contact you for advice before they respond.

As always, if you have any comments or questions about this post (or the infographic), please do leave them below.

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How to avoid money mule scams

How to Avoid Money Mule Scams (Infographic)

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Today I am sharing an infographic from the credit reference agency Equifax.

If you have ever seen a job ad which seemed too good to be true, you might have missed the opportunity of a lifetime – or (far more likely) you could have narrowly avoided becoming a money mule.

Money mules are often ordinary people who unwittingly assist criminals by helping them launder money. People who work as money mules are often taken in by job ads offering them the chance to work from home as ‘payment officers’ or ‘finance assistants’, earning large sums of money per week. But what they don’t realise is the cash they are earning is a commission on the money (generally the proceeds of crime) they are transferring.

The infographic reveals how to spot a fake job offer, what’s going on behind the scenes when you work as a money mule, and what will happen to you if – or more likely when – you get caught.

Thank you to Equifax for an eye-opening graphic. Of course, I appreciate that most readers of this blog will believe they are too money-savvy to fall for these scams. Nonetheless, when you (and perhaps your family) are in financial hardship, ads that appear to offer an easy route out can be very enticing.

Also, if you know any older (or younger) people who may be susceptible to such scams, it’s important to look out for them and offer advice and support when appropriate.

As Pounds and Sense is aimed primarily at middle-aged and older people, it’s also worth noting that the 2019 Cifas Fraudscape report found that the largest rise (35%) in money mules was among people aged between 41 and 60.

In summary, the old mantra still applies: if it sounds too good to be true, it almost certainly is. There are genuine ways to make a sideline income, and of course I cover them regularly in Pounds and Sense. Get-rich-quick schemes seldom if ever work, however, and can rapidly plunge you into a world of trouble.

As always, if you have any comments or questions about this post (or the infographic), please do leave them below.

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Is your will up to date? The essential checklist

Is Your Will Up To Date? The Essential Checklist (Infographic)

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Today I’m bringing you an infographic created by I Will, a firm of solicitors who specialize in will writing.

I thought this summed up neatly the importance of keeping your will up to date as your life circumstances change, so I wanted to share it with readers of this blog. It’s quite a long graphic, so please take a little time to scroll down it, and I’ll see you at the other end!

Thanks again to I Will Solicitors (not an affiliate link) for permission to use their graphic. There are some valuable tips in it, not least the advice to review your will every five years or sooner in the event there are major changes in your life.

As I have said before in Pounds and Sense, I highly recommend using a properly qualified solicitor when writing or updating your will. I have had a couple of experiences when failing to do this has caused problems..

One concerned the will of my late partner. We had created mirror wills some years before, using a well-known postal will-writing service. At their suggestion we named the will-writing company as joint executors, as their representative said this meant they would be able to step in and help if required. Sadly my partner passed away and I then discovered that having the company as a named executor meant I couldn’t have the local solicitor I wanted handle the estate on my behalf. It took several months (and a lot of hassle I could really have done without) to get them to renounce their interest in the will so that my preferred legal firm could take over.

Another instance concerned a family member who passed away a couple of years ago. I don’t want to go into detail about this, for obvious reasons, but he had used a family friend who ran a will-writing service to create his will. The will was poorly drafted and did not make clear exactly how the estate should be divided up. It didn’t help either that there were multiple updates of the will, some of which were of doubtful validity. The result was a bitter dispute between two of the main beneficiaries, which ended with an outcome that was probably far from what he had intended.

So my top tips with wills would be (a) make sure you have one, (b) have it drawn up by a qualified solicitor, (c) give careful thought to whom you name as executor, and (d) review it regularly and update if needed. For other advice, please refer to the infographic above!

  • Just a reminder also that, as mentioned in my last post, October is Free Wills Month in England, Wales and Northern Ireland. Under this scheme you may be able to have your will drawn up or updated free of charge with participating solicitors. Please see my blog post for more information about this.

If you have any comments or questions, as ever, please do post them below.

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