Like many other busy career-orientated people, I don’t have time to be ill!  I can’t afford the time it’s likely to take to get a diagnosis, the time to wait for treatment or surgery, nor the time to recuperate afterwards. No, absolutely not. If you’re running your own business or climbing the corporate ladder it’s fair to say that your health is your wealth. And let’s not overlook busy stay-at-home mums: if they become ill, the smooth management of the kids and household will simply grind to a halt.

However we all get ill sometimes and may require surgical intervention or specialised treatment at some point, but waiting times on the NHS can be as long as 18 weeks. There is no way I could wait that long – and then face the possibility the treatment could be cancelled at the last minute.

I’m fit and well at the moment, but it won’t always be that way. I need to insure not only my health, but my livelihood, too. So this got me thinking… I wonder whether private health insurance is worth it – or is it a pricey add-on I could do without?

Say What?!

Let’s take a look at the stats. Do you know how many people in the UK have private health insurance? It’s roughly 10.5% of the population, so just under 4 million people. Yet around half the UK adult population has life insurance. Clearly people are more concerned with their death than keeping healthy when alive!

You insure important assets in your life such as your car and house, so why not insure your most important asset of all – your health? You need to look after yourself so that you can look after everything (and everyone) else.

This is where private health insurance can be a literal life-saver, and is beneficial for people who are accustomed to the finer things in life.

What Is Private Health Insurance?

Private health insurance (also known as medical insurance) can cover all aspects from diagnosis to treatment (if you opt for a comprehensive plan), or can be combined with what’s already available on the NHS (if you opt for a basic plan). Some lucky employees have health insurance as part of their employee benefits package. However, those that don’t can set up their own insurance plan and pay monthly premiums.

What Does It Offer?

Depending on the insurance cover you opt for, it:

• Pays most (if not all) of your medical bills if you receive treatment privately.
• Offers a choice in the level of care you receive and how and when it is provided.

What’s Covered?

All types of insurance offer different levels of cover and private health insurance is no different.

For instance, basic private medical insurance will normally cover the costs of in-patient treatments, including tests and surgery including day-care surgery.

Invest in a more comprehensive policy, and you’ll be covered for out-patient treatments requiring the expertise of specialists and consultants, and some even pay out an amount for each overnight stay in an NHS hospital.

Take Bupa’s Comprehensive Insurance, for example. This policy offers Bupa’s greatest cover which includes:

• cover for investigations, scans and consultations necessary to ascertain the problem and reach a diagnosis using blood tests, CT, MRI and PET scans.
• cover for any treatment you might need as a result of the diagnosis – from out-patient treatments like physiotherapy through to in-patient surgery.

Bupa also offers another, more affordable policy called Treatment and Care where you’d be diagnosed by the NHS but go on to have treatment privately. It’s important to note that this policy doesn’t cover most pre and post-treatment diagnosis and testing, hence the cheaper premiums.

What’s Not Covered

In most cases, private healthcare insurance won’t cover treatment for:

• Pre-existing medical conditions
• Injuries sustained through dangerous sports
• Pregnancy and childbirth
• Cosmetic surgery to boost appearance
• Organ transplants
• Chronic illnesses such as those associated with HIV / AIDs, epilepsy, hypertension and diabetes (note that even if you are diagnosed with a “chronic” illness after you take out the policy, it still won’t be covered under the policy).

Advantages Of Private Health Insurance

There are differences in levels of cover but generally the main advantages are:

• Provision of Specialist referrals: Once you’ve been to see your NHS GP, you can request a referral to an expert or specialist working in a private capacity should you want a second opinion or specialist treatment.
• Shorter waiting times: This is the reason why many people opt for private health insurance: the shorter waiting times for treatment, compared with NHS.
• You have more choice: In most cases, you can choose the surgeon and the hospital you stay in, which isn’t possible in the NHS.
• Further scans: If you’ve been declined a scan by the NHS or there are delays, private health insurance will usually cover the price of your scan.
• Access to specialist drugs and treatments:  There are some specialist drugs and treatments that aren’t available on the NHS because they’re very expensive. Private health insurance will usually cover the cost of these drugs and treatments.
• Speedier physiotherapy:  You’ll get physiotherapy sessions quicker than you would with insurance than through the NHS.

It’s just a lot nicer, to be frank: No one wants to be in hospital, but if you have to be there, you might as well have a bit of luxury. Private healthcare is great for those who are accustomed to the finer things and don’t want to compromise with their healthcare setting or the treatment they receive. You’ll get a private room so won’t have to stay on a ward.

The Disadvantages

• It’s costly– and the price will increase: Bought By Many researched their ‘typical buyer’ (a healthy 33 year old, living in the South East) and ran their details by the four largest UK health insurers – Aviva, AXA, Bupa and Vitality. Prices came back between £23 and £35 a month, so around £276 and £420 per year. However, prices will rise each year, with age or possibly if you have made any claims. Also, to give you an idea about a family premium, (two adults in their 40s and two children under 10), this can vary widely – from £700 to £1,650 per year.
• It’s possible you’ll be seen sooner with the NHS: People with serious illnesses such as heart disease or cancer receive priority NHS treatment.

Pre-existing and chronic illnesses aren’t normally covered: diabetes and cancer, for example, as they’re deemed as chronic, will not usually covered by private health insurance policies, and neither are illnesses that are pre-existing to you taking out the policy.

How To Get The Best Price

Check comparison sites such as Moneysupermarket and GoCompare to get a benchmark quote – then contact a broker to see if they can offer a better one.

Make sure the broker is a member of the Association of Medical Insurers and Intermediaries, which is the trade association for independent medical insurance advisers.

So Is Private Health Insurance Worth It?

For the average, healthy thirty-something, paying a premium equivalent to a monthly manicure or phone contract is no big deal – and what you get for your money is pretty impressive if you do need to use your insurance.  Just remember, the premiums will increase with age, so do be prepared to shell out a little more each year.

Insurance will be of great value if you require specialist and expensive treatment, but not so if you develop a chronic illness where a policy may cover you for investigations into the diagnosis, but if you’re diagnosed with a chronic illness, then you won’t be covered for its treatment.

So, yes, there are some exclusions to every policy, but for those, (for now) we still have the NHS to call on.

But if your time and being comfortable in your surrounding are exceedingly important to you, then taking out a private health insurance policy is a no-brainer.

Remember, you’re not only insuring your health, you’re insuring your wealth.

What better gift to bestow on your beloved offspring than the gift of money? No, you won’t have to pop your clogs before they receive it; this isn’t inheritance. This is a gift of matured money that you save for them over the years so that they can use it when they are older: for their university education, first car or perhaps even a deposit for a home. You can even get your child involved with saving at an early age so that they have an awareness of the value of money.

So where do you start? Here are some products to help you start saving for your child.

Children’s Savings Accounts

The most popular form of saving for a child is a savings account.

How Do They Work?

You can open an account with as little as £1 on behalf of your child at most banks and building societies. Then, once your child reaches the age of seven, they can then begin to manage their own account – which is a great lesson in learning how to manage money – and they can withdraw from or credit their account when they like. They may even receive a small gift, such as a money box from the bank or building society.

Don’t worry that your child can access the account and buy a million emojis or 20 Nintendo games. Most accounts allow the adult to stay in control of the cash until the child turns 16. After then… well, let’s hope you taught them some lessons to manage their money…

Let’s have a quick look at the different savings accounts below:

Regular Savings Account

Regular savings accounts tend to pay the best interest rates, although access is limited and you need to pay in money each month. Most pay an average of 4% interest.*

Easy Access Account

The advantage of an Easy Access account is that you or your child can add and withdraw money from it at any time. However, interest rates do tend to be lower than that of regular savers (typically around 2%*).

But, just think, if you saved £10 for 18 years in a 2% per year savings account, there would eventually be over £2,500, which could help with buying a first car or be used towards university fees.

Fixed-Rate Savings Account

These type of savings accounts are also known as bonds. You tie your money up for a specific term, usually between one and five years and withdrawals are not permitted.

However, in return, you could get a fairly good interest rate (at the moment, around 2%*) but there’s a risk that you could miss out on higher interest rates available later on if you’re stuck in a long-term deal.

Would A Junior ISA Be Better?

A Junior ISA, or Junior Individual Savings Account, is designed for children up to the age of 18. They’re a way to hold cash on behalf of your child and benefit from tax-free savings.

The annual Junior ISA allowance will rise to £4,260 from April 2018 and like an adult ISA, your child won’t pay tax on interest on cash held in an ISA or income or capital gains from investments in an ISA.

The money is invested until the child turns 18 and if they don’t withdraw it, the Junior ISA automatically converts into an adult ISA.

What About A Junior Stocks and Shares ISA?

There’s another type of Junior ISA out there.

With this type of ISA, you decide where to invest your child’s money – could be in funds, shares, investment trusts, bonds – and the interest earned is tax free.

However, this option is a little riskier than a straightforward cash ISA since the value of the investment may vary throughout the duration of the investment. You should take financial advice on which type of investment would suit you and give you the best dividends as this long-term investment.

You should be aware that a child can have only one Junior Cash ISA and one Junior Stocks and Shares ISA during their childhood, but they can switch to different providers.

NS&I Premium Bonds

Instead of receiving interest from traditional savings accounts, every premium bond (£1) is entered into a monthly prize draw, with winners being selected at random by National Savings & Investments (NS&I). You’ll need at least £100 saved in your premium bond account (100 premium bonds) to enter the draw to be in a chance of winning tax-free prizes worth £25 to £1m every month.

The NS&I is backed by the Treasury so it’s pretty much guaranteed that your money is safe.

It’s also easy to apply: if you’re a parent or legal guardian, you can buy bonds on behalf of your child aged under 16 either online or by phone.

However, unlike a savings account, you won’t receive a guaranteed return and neither will your child receive a sum at aged 16 like an ISA would give.

Furthermore, you’re essentially playing a lottery with your money so you could win nothing at all – but you could hit the jackpot. However, the odds of each £1 bond number winning a prize are currently 24,500 to 1…

And Another Thing…

Check If Your Child Has A Lost Child Trust Fund

Child Trust Funds (CTFS) are a savings accounts which were opened for babies born between September 2002 and 2 January 2011 by the Government. Every account was credited with up to £500 from the Government so that parents, relatives and friends would be able to save more tax-efficiently to boost their child’s savings.

Around six million young people across the UK have a Government Child Trust Fund (CTF), but figures indicate that as many as one in six of them may have been lost.

The first children who received a CTF account will be turning 16 this year, so if you think your child may be one of those with a lost account, track it down! To do this, visit the HMRC’s dedicated page. Simply fill in some basic information about you and your child. You’ll have to register for Government Gateway to access this service.

So you’ll see there are many ways to save for your child’s future. All options come with their advantages and disadvantages so you should seek advice to check which one(s) suit your requirements best.

*At time of writing in March 2018

Have you ever looked at a fabulous Roland Mouret midi-dress and wondered “how do I justify the splurge?” Yes? Me too. Or if you’re one of the few that hasn’t already got one, what about that Alexa Mulberry? Both items are pricey and let’s face it, you’ve probably got a million midi dresses and bags tucked away. So how do you justify those price tags?

What if I told you that by investing in designer pieces, you’d be investing in your career? If you want to climb that corporate ladder, you need to dress to impress. Investing in appropriate designer pieces will not only ensure you don’t slip behind in the fashion stakes, but that you don’t coast down the corporate ladder either.

And I’m afraid that tatty, old H&M dress just won’t cut it, darling.

But being the money-savvy lady you are, you’re not going to be inclined to hand over a wad of your hard-earned cash for something, no matter how fabulous it is, if it’s not going to offer a you little something in return too. We all know that good returns can come from investing in stocks and shares, certain art pieces, property and gold, but how about designer clothing and accessories? How fab would it be to invest in designer clobber and see a great return?

I wonder… is splurging on designer fashion a sensible investment, or are we fooling ourselves into thinking so to justify spending high sums?

To Sell Or Not To Sell

Yes, that is the question. You may want to buy some designer pieces for you to wear and keep, but it would be wise to have an idea of a resale value in case you’d like to sell in the future.

Think about this: if you’re lucky enough to get your hands on a Hermes Birkin bag, which could set you back anywhere from £7,500 to £100,000, the resale designer fashion website Vestiaire Collective reveals you could benefit from a resale value of around 137 per cent.

Due to its high demand, a Hermes Birkin bag is deemed the best investment in designer handbags – and with a resale value like that, who could argue?

To put it into perspective: the annual return on a Birkin bag is 14.2% according to the website Baghunter. Compare this to the S&P 500 index return, which has increased by 8.7% a year and it is looking like investing in designer bags (Hermes in particular) is a pretty shrewd decision! And let’s not even start comparing to current ISA rates!

Similarly, the resale value of a Chanel Classic Flap Bag has increased 72 per cent between 2010 and 2015 and Saint Laurent and Céline handbags enjoy remarkably huge increases in resale values, too.

Do we need any more of an excuse to go out and splurge… I mean, invest?!

What Should I Invest In?

But how do we decide which pieces are investments? To help us in our quest, the Vestiaire Collective has devised The Resale Calculator using data from its millions of members to uncover how much luxury designer items will be worth when selling them. It’s a useful tool to indicate the potential resale figure before we actually decide to buy a piece brand new.  After all, you wouldn’t put your money into stocks and shares without knowing the potential returns, would you?

There’s no doubt that designer handbags are the best investment of all designer fashion. However, designer shoes (worn and unworn) come a close second and whilst ready-to-wear clothing is never going to compete with the resale value of handbags and shoes, there are some designer clothing pieces that will resell better than others.

A few points to consider if you’re thinking of investing in designer clothing:

Go Classic

Always pick classic pieces as they’re less likely to date. That orange Chanel jumpsuit looks great whilst wearing it in St Tropez darling, but not so great during a work business meeting with the CEO. Versatility is key.

Brand Awareness

Saint Laurent and Isabel Marant always command strong interest in resale. Pick a classic piece by one of these designers and you’re on to a winner. Balenciaga and Balmain are also two strong contenders for those top spots in resale value.

Treasure Your Investments

If they’re going to serve you well, you need to look after them. Always look after leathers and suedes appropriately, pack bags to ensure they maintain their shape, keep invoices and authenticity cards and store items in their dust bags and boxes.

Keep Receipts

Having a proof of purchase not only helps to prove authenticity, but also helps with a quick and more profitable sale.

When To Sell

For maximum resale attractiveness, sell pieces within four seasons of release. If people remember the pieces from seasons, they tend to desire them more than if they don’t know about them at all. Therefore, they’ll hold a higher resale value.

Win Some Lose Some

It’s undoubtedly difficult to know the best time to sell a piece. You might already know that a designer’s last collection for a house is always a popular one. Most would advise to sell within four seasons, however, the resale value might just surge if you hold on to it for a lot longer…

Decisions, Decisions…

So, is investing in designer fashion an excuse to splurge or is it a wise financial move?

You can get excellent returns on your designer investment if you buy the right piece, look after it well and sell it within the right timeframe after buying it. However, as with any investment comes risks, but I’d say that there are far fewer risks involved with buying that Chanel 2.55 than there is investing £4,000 in stocks for certain pharmaceutical or banking companies. Not only that, with a Chanel handbag, you get to experience it and take it to all those girlie liquid lunches (just don’t get too squiffy and leave it anywhere!). What do you get with a straightforward investment? A piece of paper and relatively low return? I know where I’d rather invest my money!

And if you don’t achieve the resale price you’re after, you get to keep that designer piece, but if you do get a fantastic resale price, perhaps buy another piece and do the same with that, too. You could start a profitable side-hustle and become the next Tamara Mellon or Karren Brady… Or you could just have a bit of fun buying and selling and making a little money in the process. What are you waiting for?!

Useful websites:

Vestiare Collective: https://www.vestiairecollective.com

Edit Second Hand: https://editsecondhand.com/

Hardly Ever Worn It: https://www.hardlyeverwornit.com/

High Fashion Society: https://highfashionsociety.com/

Never has there been so much discussion around tax havens since the recent ‘Paradise Papers’ fiasco which saw more than 13 million financial documents leaked. And these documents were pretty significant.

In fact, extremely significant as they gave an insight into the questionable and often murky world of offshore finance and the super-rich. Among the super-rich involved, there’s been suggestions of celebrities, sports personalities, politicians – and even the Queen – using complex structures to avoid higher taxation of their wealth.

1. What Are Tax Havens And Who Uses Them?

A tax haven is a country offering businesses and foreign people a minimum tax liability.

The country will benefit from a politically and economically secure environment and it doesn’t usually have to share financial information with tax authorities based abroad.

For the countries classed as tax havens, the main benefit is that a healthy financial sector is developed due to the capital invested in their banks by those who have accounts with them.

For those with accounts in a tax haven, the main benefit is that its laws can be used to avoid the tax laws elsewhere.

Many super-rich individuals and companies channel their wealth into tax havens – a practice that’s been going on for years.

2. What Countries Are Tax Havens?

Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands and the Cayman Islands. There’s also the Cook Islands, Honk Kong, the Isle of Man, Mauritius, Lichtenstein, Monaco, Panama and St Kitts and Nevis.

3. How Does The Scheme Work?

There isn’t just one way that tax havens enable tax avoidance; there are many – and they can be complex. For this reason, specialist tax professionals are often used to advise super-rich clients and companies about how to store their money offshore.

For companies, a popular method of tax avoidance is called ‘corporate profit sharing’, where a multi-national company will register its headquarters in a country where corporation tax is low. It then reports its profits there, instead of the country in which the sales are made. Google and Facebook (amongst other companies) do this to decrease their global tax liability.

For individuals who want to avoid paying higher taxes, they may become a resident of a lower-tax country.  Racing drivers earn eye-watering amounts and there are many that reside in Monaco, a prominent tax haven.

But that’s not the only way to benefit from a tax haven. An individual could still live in the UK but keep their assets in a trust (managed by a third party) and so will legally escape having to pay capital gains tax (profits from the sale of investments or property) in the country in which they reside.

4. Tax Havens Aren’t Illegal So What’s The Problem?

The financial dealings in tax havens aren’t particularly transparent. If they’re used for tax avoidance, then that’s usually legal, but what isn’t legal is tax evasion which involves hiding wealth from the government.

The secrecy inherent within tax havens appeals to money launderers and other purveyors of criminal activities who use the ambiguity entrenched in offshore finance to hide their dodgy dealings.

There’s also the moral issue. Shouldn’t everyone pay their fair share of taxes – particularly those who earn vast amounts?

The tax avoidance issue is one that conjures up resentment from the majority of the population and feeds into an idea of a capitalist system where the rich get richer whilst the poor get poorer. The wealthy elite have a distinct unfair advantage compared to those of us that aren’t able to hire wealthy taxation consultants.

We have no advice on how to avoid paying high taxes, so simply pay what we have to; why should others who can, get away with it?

5. How Big Is The Tax Avoidance Problem?

Very big. Massive, in fact.

It’s estimated that the big US tech companies, including Apple and Microsoft have £1.4 trillion of profits held offshore, mostly in tax havens. And that’s just the US tech companies alone!

Although personal tax avoidance is a bigger issue. It’s estimated that £7.6 trillion (8% of global wealth) is held offshore, which is an increase of 25 per cent in the last five years. It should be noted that not all of that money will be held for dubious tax purposes, but it’s assumed that a significant share of it will be.

6. Can Anything Being Done?

6.1 Corporate Tax avoidance

Two solutions have been identified:

1)    Governments all over the world need to agree a fair formula on how to tax multinational companies based on their employee numbers, investments and sales in several countries. Thus, forcing the closure of tax havens as no corporate activity would occur.

2)    Whilst making dispensations for its local costs, exports and investments, governments could tax an individual multinational’s revenues, doing the same for each multinational.

6.2 Personal Tax Avoidance

The solution identified is complete and total public transparency about the beneficiaries of offshore trusts.

It’s been suggested that the collective EU governments could pressurise tax havens into compliancy. Indeed, many tax havens are also British crown dependencies such as the British Virgin Islands and Bermuda so the UK government already has a certain degree of power in those countries.

But can we really blame people for taking advantage of what is essentially a legal loophole? And does the blame for tax avoidance ultimately lie with the governments who allow it to happen?

The real issue here is that the murky world of offshore finance attracts criminals and perpetuates criminality, as in these ‘paradise Islands’ they have a relatively safe haven in which to launder money.

As long as a huge proportion of the financial dealings in tax havens remain secretive, and as long as there isn’t much pressure on the hosting countries to be transparent with their finances, offshore tax havens won’t be going anywhere soon.

On 2nd November, the Bank of England (BoE) increased its base rate after more than a decade – the first time since July 2007.

Interest rates have been low to help facilitate the country through the financial crisis but official figures illustrate that the UK economy grew faster than expected between July and September. This gave the BoE committee the impetus to vote for a 0.25% increase on the existing 0.25% base rate to try and counteract high levels of inflation.

But how will the increase affect you?

Mortgages

There will be a rise in the cost of mortgages for many people on tracker rates because they follow the BoE base rate.

However, the increase will affect far fewer mortgage borrowers than in previous times, because many people have shied away from tracker mortgages due the uncertainty of today’s economy – in fact, 57% of mortgage loans are fixed-rate. Additionally, the percentage of households with a mortgage in England has dipped below 30 per cent from over 40 per cent ten years ago.

Analysis by the Resolution Foundation shows that only 11% of UK households are immediately affected by the rate rise.

I’m On A Tracker Mortgage. How Much Will My Payments Increase?

The average mortgage in Britain is £175,000 and payments for this level of tracker mortgage will increase by about £22 a month.

I’m On A Fixed Rate Mortgage. Do I Have Anything To Worry About?

Those on a fixed-rate mortgage will not immediately feel the impact of a rate rise. However when they come to remortgage at the end of their fixed-rate, they are likely to find the next deal more expensive.

I Have a Buy-To-Let Mortgage. What Effect Will A Rise Have?

Most landlords will have an interest-only buy-to-let mortgage and will instantly feel the downside to the interest rate increase. For example, on a mortgage of £200,000, a 0.25% increase will result in an extra £40 a month in repayments. The increase in payments for the landlord may have a knock-on-effect on rental amounts.

What’s The Effect On Other Types Of Lending?

The truth is, we just don’t know yet.

The good news for borrowers is that credit card and loan providers are under regulatory pressure to prevent a credit bubble and a sharp rise in defaults. This means that credit providers are less likely than mortgage companies to pass on the rate rise, although this is not certain.

What About House Prices?

It’s too soon to tell if there will be any significant changes in house prices due to the interest rate rise. Interest rate rises do historically knock confidence in the property market but the general consensus is that there won’t be a significant change to house prices at the moment. Although this could change.

How About Prices In The Shops?

The BoE increased the interest rates to counteract rising inflation, but the effects will not be seen in everyday prices for a while. It took six months before the Brexit decision resulted in an increase in the cost of imported goods so perhaps we’ll see prices rise in the shops in a similar timeframe.

However, retailers do worry that long-term, consumers will have less disposable income after paying more for their mortgage and other bills.

How Will The Rise Affect Savings?

So this is the good news. Rises in saving rates should happen, although not immediately. But you need to check whether your bank will pass on this 0.25% rise to its savers. Not all banks have been open about how the rate rise will impact their savers.

In practical terms, someone with savings of £10,000 will see an increase of £25 per year with the new rate of 05%. So don’t go booking that luxury cruise just yet!

Will There Be More Interest Hikes?

If economic growth is kept on track, it’s highly likely that next year will see at least one rise, if not two.  However, the BoE have assured that any future rises would be “gradual and limited”, with forecasters predicting the BoE will be at 1% by the end of 2018.

What Will Happen To Mortgage Repayments Then?

Another 0.5% increase will add £67 a month to the repayment on a £175,000 tracker mortgage. Not great, but not disastrous for most households. However, if the base rate gets to 3%, repayments will increase by a significantly more uncomfortable £260 per month.

What Can I Do

Rates look set to rise further but we can protect ourselves from the effects of further increases

• Curb spending on non-essentials and save as much as possible.
• Exercise caution before taking on additional borrowing – and consider how you’ll cope with increased payments or a decrease in income.
• Look for the cheapest deals for mortgages and any other borrowing you may have now as it’s doubtful that the deals will be this cheap for a while to come.

I’m Worried. Who Can I Talk To?

Combined with high levels of borrowing, increasing living costs and stagnant wage growth, a small rate rise can push some families into financial trouble. It’s understandable that many people are worried about their financial position right now.

If you think you can’t afford your mortgage payments due to the hike (and the possibility of future hikes), the first port of call should be your lender.  Alternatively, for impartial and budgeting advice, contact the Money Advice Service Debt Advice for a chat with an adviser. Note that you don’t have to be in debt to access this service, but advisers can help you budget.

In summary the interest rate hike will impact everyone in some way or another over the next few months. And the prospect of further hikes will delight savers but make families on tight incomes fear the financial worst.

However the BoE is trying to implement these interest rate increases gradually and in a minimal way: at the end of the day, consider it a necessity to stop inflation getting out of control, and start to think about how you will manage your finances as the inevitable increases are put in place.

Halloween parties aren’t just for kids: plenty of adults love celebrating Halloween. It’s a great excuse to throw a frightfully fun party, dress in freakish attire and eat ghoulishly scary snacks and drinks. If you think you need to spend a fortune on hosting a wonderfully wicked and memorable party, think again!

Invitations

Halloween is a busy time of year so get your invitations out early. The most cost-effective way is to email invitations. There are plenty of free templates on the internet. Check out this great Microsoft Office template which you can edit then email, or simply go old fashioned and print out.

REALLY IMPORTANT point: On the invitation “encourage” people to come in fancy dress. Don’t insist people dress up, but say there’ll be a “costume contest” so people will get the idea. Just don’t forget the prize!

Costumes

Most shops have Halloween outfits for sale by early October, but if you want something others are unlikely to have, search on the internet for inspiration.

Websites like Simply Fancy Dress have some cracking outfits, and Harpers Bazaar is predicting all manner of popular Halloween outfits for 2017 including A Stranger Things character, Belle from Beauty and the Beast, and bizarrely they suggest a Baywatch Babe as the basis of your Halloween outfit.

I may simply customise some old clothes with lashings of fake blood, vivid face paint, false talons for nails and a florescent wig – simply unique and highly affordable!

Decorations

Now we’ve got your outfit sorted, let’s think about transforming your home into a haunted house for the evening.

You’ll find an abundance of decorations to buy, including spider window and door decorations, and huge cobwebs to adorn your home. Party Delights has an extensive and affordable range.

QUICK TIP: If you’re going to spend money on the decorations, make sure you save them and re-use for next year’s Halloween party.

However, you don’t have to spend much on decorations. To achieve an eerie atmosphere, carve a wicked face on a pumpkin and place a tea light inside it. You can also use the pumpkin flesh for delicious bites for your guests: try out some of the BBC Good Food recipes which include tasty delights such as pumpkin houmous, or pumpkin and caramel cake.

For the shock-factor, get some red food dye and strategically place bloodied hand prints around the house (not on upholstery, obviously!) The Rug Seller website gives some awesome ideas for DIY decorations from “Bloodied Candles”, “Creepy Cup String Lights” to the “Freaky Floating Heads” – guaranteed to give all your guests nightmares for weeks to come!

Music

You’ve got to have a little bit of Thriller, right? But don’t overload the party with Halloween songs: who wants to dance to Monster Mash? Oh you do? OK then… it’s your party. Check out the list of all-time favourite songs for Halloween parties. Just don’t have too many Vampire Blood punches by the time the theme to Ghostbusters comes on!

Alternatively mix in some usual party classics such as Macarena and Oops Up Side Your Head to add some uplifting vibes.

Food & Drink

Definitely go for a finger food buffet than a sit-down meal: easier on the pocket and on those in restrictive costumes. Plus, you prepare everything in advance, minimising the pressure on you.

In addition to usual party foods such as pizza, salad, dips, sandwiches, crisps, etc, make sure to serve some Halloween-themed snacks such as Halloween eye ball cakes or jelly worms (nice!)

For drinks, a cost-effective idea is to create a huge bowl of punch. Punchbowl offers fab recipes for both alcoholic and non-alcoholic versions.

If you’re expecting vast numbers of guests, ask them to bring their own “refreshing vampire blood” on the invitation: few will feel put out by this.

Games

No Halloween party is complete without themed and traditional party games. There’s no better way to let your friends to get to know one another better whilst you stand to one side cackling like the wizard/witch you’ve dressed up as.

Alternatively as a nice host/hostess, you’ll join in all the games with gusto -think apple bobbing, a murder mystery game or even Halloween charades. Just be careful what you do if you’ve all been on the Blood Vampire punch!

If you have a big garden, consider putting up a marquee – yes a little pricey if you need to hire one, but this could make your Halloween party the talk of the neighbourhood for years to come! Create a “scary cave”: a spookily dark and eerie space where you conjure up all manner of challenges for your unsuspecting guests.

Finally

Hosting amazing parties can be expensive and stressful. Preparation is the key to minimising and by following my tips above, you’ll have a successful Spook-tastic Halloween party that everyone will enjoy and won’t cost the Earth!

Christmas? But it’s only October I hear you say! Unlike putting up the decorations, it’s never too early to start saving for the big day. According to YouGov, a typical family spends £796 at Christmas and many end up pushing their budgets to the limit and pay the proverbial price for most of the following year.

Don’t be one of those people – don’t spend more than you can comfortably afford.

With only 12 weeks to go, there are steps you can take NOW to make sure Christmas spending doesn’t get you in a financial pickle.

To Give Or Not To Give?

Most of the money we spend at Christmas goes on gifts for friends and family. Of course, you’ll want to spend on your darling nieces and nephews, but do you really need to exchange gifts with your sister, brother-in-law and Aunt Emily?

We can all save money to spend on other things if we agree with certain friends and family members not to exchange gifts. You’ll probably see relief written all over their faces when you suggest it – after all, who needs more stress at an already stressful time of year?

If you decide that Christmas isn’t Christmas without exchanging gifts with all and sundry, agree to set a limit on the amount you spend. It will be easier to narrow down gift choices and you’ll save some of your hard-earned dosh.

Make A List… And Check It Twice

Once you know who you’re buying for, make a Christmas gift list. It can look overwhelming, especially if you’ve children to buy for, but if you nip away at it bit by bit, it’ll become more manageable.

Take the list with you wherever you go and if you see that Super Mario game you had in mind for your son on offer at the supermarket in November, nab it and cross it off the list.

Tip: Quite often, twelve weeks before Christmas is the time that toy shops such as The Entertainer and Toys R Us have excellent sales, so if you’re buying toys, take advantage of them.

If you know which gifts you’re buying, keep an eye on price comparison sites such as Pricerunner and Kelkoo to ensure you buy at the cheapest price possible.

Season’s Greetings

You can spend a fortune on fancy Christmas cards. But sometimes, rather than buying sparkly hand-crafted individual cards, you can find some quality gems (and save money) from your local supermarket or card shop. You can personalise them with sequins or extra glitter (no, scrap that one…how annoying is glitter on cards?) or by sticking photos of your children or pets inside them.

To save on postage, hand deliver if possible, but if you do have to post, buy second class stamps – just give yourself a couple of weeks in advance of the Big Day to post.

The absolute best way to save on cards and other Christmas paraphernalia such as crackers and decorations, is to buy them in the January following Christmas. Shops are desperate to get rid of last year’s stock so they sell items at hugely discounted prices. If you’re organised to do this, make sure to remember you’ve already bought cards, decorations and crackers when you consider buying more 11 months later!

‘Tis The Season To Be Jolly

Alcohol can be pricey. A good tip is to start buying right now – a bottle of wine or spirits every two weeks or so, so that by Christmas day, you’ll have a bar-full. Whatever you don’t get through (yeah, right) save, or give as birthday presents to adults the following year.

Buying in bulk almost always saves you money. Look out for savings (especially in supermarkets). Check the Bring a Bottle website to find the best prices on beers, spirits and wine. Don’t leave buying alcohol to the last minute – it’s a big expense that should be spread over a few weeks at least.

Festive Food Foresight

Start buying a few weeks before Christmas (obviously only items with a use-by date that beyond the festive period). Boxes of chocolates, nuts, crisps, sweets, some cheeses are just of the items you could keep for a while in advance. Look for the deals and bulk-buy discounts. Go to MySupermarket to compare the cost of goods at the big online supermarkets.

Make use of unused loyalty points with supermarkets or high street retailers. If you want to avoid the last-minute rush at the supermarkets, order your food online, but be aware that for priority access to Christmas slots (which go like wildfire), you’ll have to subscribe to their delivery service a month or two before – so do it now!

For a “sharing is caring” kind of Christmas, ask your guests to bring along a dish to Christmas dinner: takes all the burden off you and brings a little variety to the dinner table.

P.S …for all that food that’ll be going to waste after the Christmas period, I’ve found a really interesting website that offers recipe ideas for leftover food: Love Food Hate waste.

Quit The Kitchen?

Many hosts spend 90% of Christmas Day in the kitchen but would rather spend it with family. If you fancy the idea of letting someone else buy the food and cook for you, now’s the time to book a restaurant – the good ones get booked up well in advance so make your reservation soon!

Hostess With The Most-ess

If you’re thinking of hosting a party over the festive season, draw up your guest-list and send out your invites now! Like sophisticated restaurants, sophisticated people get booked up quickly so get your invitation to them pronto!

Christmas Eve and Boxing Day: After-thoughts?

So Christmas Day is planned; you know what you’re buying, who for and how much to spend… but have you thought about those two little days either side?

Usually Christmas Eve and Boxing Day will require some extra expense, so plan for them now and factor them in your budget.

However, there are some low cost (or no cost) festive fun to be had.

Many people join midnight Mass at church on Christmas Eve. This costs nothing to attend (although donations to the church will be welcomed) and you’ll really get into the Christmas spirit. If you want to go with friends, check their availability now before they plan to do something else.

On Boxing Day, what better way to re-energise than to get out in the fresh air after being in a food coma caused by Christmas excess? A cost-effective way to have fun and burn calories is to take a long stroll in the local park or countryside followed by some well-loved games at home such as charades or a Christmas treasure hunt.

So now you see that you can start now with making those simple, yet effective, changes in preparation for the festive season. After all, preparation is the key to success!

As with any insurance cover, pet insurance can seem like an unnecessary expense to the overly optimistic: another payment each month when the purse strings are tight. However there’s no free National Health Service for our beloved pets, and if kitty Tiddles is victim of a dog attack or Lucky labrador gets knocked down by a hit and run, can you easily put your hand on £100s or £1000s to pay vet bills?

If not how will Tiddles and Lucky fair? Being in a situation where a skilled vet could save your beloved pet  but you can’t meet the bill puts you in a terrible situation: you may have to agree that your pet is put to sleep just because of lack of money.

That’s where pet insurance can literally be a life-saver: think of it as a reasonable monthly fee to pop into a safe place, just waiting there in case your pet ever needs it.

But Will Insurers Pay?

Statistics indicate that in the majority of cases, yes they will. According to the Association of British Insurers (ABI):

• A record £1.8 million is being paid out in pet insurance claims every day as insurers received and paid out more claims in 2016 than ever before – over 2,500 claims every day.
• Cost of the average claim tops £750 for the first time, up from £720 in 2015.

So What Will Pet Insurance Cover?

Some, not all, offer cover for the following:

• Medical expenses, but not for neutering or vaccinations. If possible, ensure that the policy covers for medical expenses incurred by both illness and accident.
• ‘Death by accident or illness’ which means that if your pet dies, you can receive the amount that you paid for him/her. Bear in mind that most policies have an age limit in this instance; typically between 7 and 10 years for a cat and 7 to 8 years for a dog. After then, insurers won’t pay out.
• Costs for advertising. If your pet goes missing, you can claim back the reward given if your pet is found or for the cost of any posters you put up.
• Third-party liability (dog policies only) which means you’re covered for the legal costs, your expenses, plus the claimant’s expenses that can arise if your dog injures a third party or their property. Apparently, cats don’t require third-party cover as legally they are deemed ‘free spirits’ (and if you own a cat, you’ll know ‘free spirit’ is a euphemism for ‘self-absorbed’!)
• Dental cover. Usually only covers for accidents, but there are some policies that cover for illness.
• Kennel and cattery fees. If you’ve no one to look after your pet if you’re hospitalised, this cover will pay the fees for accommodation for your pet. But your hospital stay usually has to be for at least two consecutive days.
• Overseas travel cover. If your pet is abroad and falls ill, is involved in an accident or needs access to vet care, this will provide cover.
• Euthanasia and burial. Some policies may offer to subsidise these costs.

Types Of Pet Insurance

So, not only do we have insurance that covers your pet for different situations, but there are different levels of cover, too. The main types are:

Lifetime Cover

This insurance is the most expensive out of the three main types and covers your pet for any continuing issues that they may have over their lifetime. There are two types of lifetime cover:

• Per condition, per year – which has a maximum limit for each condition, which resets every year
• Annual lifetime cover – has a maximum overall limit that resets every year.

Unless you cancel your policy, both types of policies cover on-going illnesses every year and the limit is set by the insurer.

Non-lifetime Cover

This cover is less comprehensive and therefore less expensive, than lifetime cover. Certain conditions are excluded once you reach the claims limit. There are two main types of non-lifetime insurance:

• Per condition cover – insurers pay a set amount for each condition and the condition is excluded from future payouts once the limit has been reached.
• Time-limit per condition cover – has both a per condition limit and time limit, usually of 12 months, and then the condition is excluded.

Accident-Only

Insurance to cover accidents only, which is the cheapest cover. However, do bear in mind that most pet insurance claims are for illness and if you have this type of cover and your pet gets ill, you won’t be covered.

Insurance For Pre-Existing Conditions?

This is a tricky one. Very few (if any) insurers will insure your pet if he/she has a pre-existing medical condition. If you switch to another insurer, they will probably exclude that condition, so it might be wise to stick with your current provider.

Insurance For Older Pets?

You’ll be paying more to insure an older pet (above seven years typically) each year. This is because, like humans, the older they get, the more likely they are to fall ill, raising the chance of a claim being made.

Preferably, you should select a policy with lifelong cover while your pet is still young. The premiums will be more expensive than other options at the beginning, but you’ll have peace of mind that your pet is covered for most eventualities.

Best Ways To Reduce Insurance Costs

• Get your pet neutered / spayed
• Insure your pet when young and healthy as you’ll have to disclose any existing medical conditions to insurers which hikes up the premium
• Get your pet microchipped
• Accept a higher excess to pay reduced premiums

Why not speak to VetsMediCover and get your pet insured now. 10% discount for arranging your insurance online. Check it out now!

Alternative To Pet Insurance?

You don’t have to take out pet insurance. Many people put money into a separate fund each month in case of any unexpected vet’s bills. This could make sense – if you start when the pet is young and you’re disciplined enough not to touch the money.

However, with already costly (and rising) vet’s bills, it might take a good few years to save up the thousands necessary for an urgent operation or cancer treatment should it be needed. It’s far better to have peace of mind, avoid heartache and take out the insurance policy that suits you and your pet.

When I was a child, birthday parties involved of a house full of screaming children eating sausage rolls, too much jelly and birthday cake, and playing pass the parcel (if the music could be heard above the racket).

Today? My, how times have changed! Peer pressure and social media bragging have certainly (unhelpfully) upped the ante and parents everywhere feel the pressure to put on an elaborate extravaganza.

However there are ways to ensure your darling has a birthday party to remember without breaking the bank.

Limit The Guest List

You might feel like you ought to invite all of your child’s classmates. Don’t! Costs will rise drastically if you do – plus, surely your child doesn’t like EVERYONE in their class?

Ask your child to pick around eight guests to invite as that’s who they’d like to spend their special day with. Not only are smaller parties infinitely more fun, but they keep the costs down too. And besides, smaller guest lists are more exclusive, don’t you know!

Only Invite Your Child’s Friends – Not Their Family

Expense increases when unexpected guests arrive. Depending on the age of the child, their parent(s) may stay for the duration of the party, in which case, you will have to at least make them one or two cups of tea. However, if the child is older, give parents and carers a definitive time to drop off and pick up their children.

Perfect Timing

Arrange the party for mid-afternoon as you will miss lunch and won’t be in time for dinner. That way, you won’t have to spend huge amounts on meals for everyone. Instead, you can offer affordable party food favourites such as carrot and cucumber sticks and dips, crisps, mini pizzas and cakes. When children are having so much fun, they don’t have time to stop and eat!

Cost-Effective Invites

To get the kiddiwinks there, you’ll need to invite them – and what better way to do so by Googling ‘free birthday party invites’, downloading and editing with your details. Then email the invites to parents or print them out. Or there is trusty SMS if you know the phone number of the parents. Practically no cost at all.

DIY Decorations

• Balloons. No party is a real party without balloons. They’re cheap and provide hours of entertainment (to younger children especially – and some adults!) Fill clear balloons with sweets or confetti for an unusual and fun look. Just be prepared for a major tidy-up afterwards.
• Buy Or Create Your Own Piñata. These things are all the rage because they’re so much fun. What’s not to like about taking turns to bash an object until the goodies fall out of the middle?! Obviously, age-appropriateness comes in here. You can’t expect a bunch of three year olds to have the strength or desire to do this, but a bunch of seven year olds might. To make your own, you’ll need newspaper, flour paste, PVA glue, a large round balloon, paper fringe garlands. Follow the method here

Whatever your budget, the main thing to remember when decorating is to use colour – and lots of it. It adds to the birthday atmosphere and brightens up everyone’s spirits. When you’re rushed off your feet with ten wild children pulling at your coat tails, just look up at the yellow streamers on the ceiling and they’ll lift your mood… kind of.

The Birthday Cake

The birthday cake is a pretty big deal to a child. In fact, it is a VERY big deal. However, you don’t need to spend a fortune to make sure your child loves the appearance and taste of it.

If you’ve the baking skills to rival this year’s winner of the Great British Bake Off, then go ahead. But if you’re like most of us who can barely make an Angel Delight mousse edible, then shop-bought it is.

Either order one from a professional cake-maker, or the less-expensive route would be to buy from a supermarket and personalize it yourself: use icing to pipe the name of the birthday girl / boy, decorate the edges with chocolate buttons and add candles. Have a look on a search engine for more ideas to suit your tastes.

But Where?

The possibilities are endless although most people’s budgets aren’t. Nowadays going bowling, to the zoo or cinema, and having an organised party afterwards at the premises is a fairly common. But to save money on admission and hiring fees go retro: host the party at home.

Home

We’ve ticked off food and decorations and now you have two whole hours to entertain a roomful of energetic children… what to do?

• I’ve been to many-a-party where a bouncy castle (around £60 for the day) has been hired and the beaming children have to be prised off it even to sing ‘Happy Birthday’ to birthday boy / girl. Although get ready for the tears when the bouncing heads ping off one another (happens every time).
• If you’ve the budget, go for a professional entertainer. They’ll take the pressure off you and they’ll have done this many times before so know what works.
• If you want to stick with the classic games only, do so. I remember having so much fun with Musical Chairs, Pin the Tail on the Donkey and a Treasure Hunt when I was younger. Just don’t forget the small prizes for the winners of the games.  Small packets of sweets, note pads and pens or bubbles would suffice. After all, kids are only in it to win it!
• If you don’t want to host at home, consider a Community Centre or Church Hall where hire fees are relatively cheap. Take your own food, hire a bouncy castle or just put on your own games – and you don’t have to worry about that expensive China getting trashed. Alternatively, look for deals at local play areas (Groupon often sell these) and take the party there. Choose the package which best suits your budget.

The tips above should give you plenty of scope to arrange a birthday party for your child that is fun for all involved, yet doesn’t break the bank.

If you have a mortgage, you probably have a compelling desire to reduce the amount you owe and the number of years you have left to repay. After all, the longer your mortgage lasts, the more you’ll pay in interest and associated life insurance policies.

For most people, their mortgage is their biggest debt, so just imagine being mortgage-free sooner than expected!

However, if you have excess cash and you’d like to put it to good financial use, it may not be the most sensible decision to overpay a mortgage in the current economic climate: it could be more prudent to invest in shares.

Read the pro’s and con’s of the two approaches below.

Rates: Mortgage Vs Shares

There are some very competitive, low-rate mortgages out there at the moment. You’re able to fix a mortgage for 2 years at an interest rate of less than 2% – and that isn’t even for a 60% loan-to-value (LTV) mortgage, but for a 90% loan-to-value mortgage! If you were to overpay on this type of mortgage, you’d save less than 2% in debt servicing costs (the cost to repay interest and principal on the mortgage) per year.

However, for those with higher rate mortgages, overpaying can be an attractive option. The Money Advice Service gives an example of the savings that can be made with a £5,000 over-payment on a £150,000 mortgage with an interest rate of 5%: the over-payment reduces the interest by £11,500 and you’ll repay 18 months earlier too.

Compare those scenarios to the returns you could make investing in the stock market. The FTSE 100 has a dividend yield of 3.9% currently and investing in a tax efficient vehicle, for example an ISA, means that this income won’t be taxed. Additionally, a large number of the companies selling stocks and shares on the FTSE 100 Index give yields of more than 5%, so you’d receive higher income return on shares than you’d save by overpaying your low interest rate mortgage.

Economic Factors

According to Master Investor, it’s increasingly evident that the income return on some shares is substantially higher than the amount saved on overpaying a mortgage. Because of this, a ‘positive foreign currency translation adjustment’ may occur for the international stocks listed on the FTSE 100 index. This will result in an increase in the price of shares – adding to the already relatively high 3.9% income return of the index.

In the UK, the economic outlook is murky because Brexit economic negotiations are “unfolding as a shambles thanks to unforgivable blunders by the Government“, according to Former Vote Leave chief Dominic Cummings. This has led to a weakening of the pound and an increase in the inflation rate – which is now at its joint highest in more than 5 years.

Higher inflation rates usually trigger interest rate rises by the Bank of England, but economists predict no interest rate hikes in the near future as economic growth has to be prioritised. Thus mortgage rates may be low for quite a while yet. This is another factor that makes investing in the stock market more attractive than overpaying a low interest rate mortgage at this moment in time.

The Risks Of The Stock Market

Putting your hard-earned excess cash into shares rather than overpaying a mortgage is an obvious riskier step for anyone to take. Shares can go down as well as up, and the income returns are not certain to exceed what you’d save by overpaying a mortgage.

Nonetheless in the long term the stock market has a total annual return of about 7-8%. As mortgage rates are so low at the moment, with the pound depreciating and economic outlook so unsteady, the stock market may be a wiser investment.

But keep an eye on rates in the future, because if mortgage rates rise substantially, you’d be better off over-paying.

Charges For Mortgage Overpayment

You may get charged for making a mortgage overpayment. Examine your mortgage terms and conditions to check the charges for overpaying or paying off your mortgage early. You’ll need to factor in any charges against the long-term savings you can make. As a generalisation, most lenders will allow you to pay up to 10% a year without enforcing charges.

The Bottom Line

Before overpaying your mortgage or investing in the stock market, consider the other debts you have. Credit cards charge a high rate of interest over the duration of the debt and bank or building society overdraft fees can be steep. If you have some excess cash, clear the expensive debts first and then make your decision regarding overpaying your mortgage or investing in the stock market.