Preparing for Unemployment: Everyone Should Have Support Ready

Unemployment – it’s a worst case scenario for many and something that people do not want to think about in the hope that it will never happen to them.

But the fact of the matter is that anyone can be struck by unemployment, regardless of their current position, level or employer. This is especially so in a recession when businesses are often forced to let people go, are not able to open up positions to those without a job and if a vacancy does occur there are often a large number of people competing for it.

It is a place that nobody wants to inhabit and considering the security that a job brings – a job equals money, which means a home, food, money for bills, for clothing, for all the extras – losing your job brings along a great deal of extra worry and stress. Being employed also brings with it a status, a standing in society’s eyes, so being without a job can make you feel depressed and alone.

All of which means that making preparations, creating support should the worst happen, is something very important. If unemployment does not happen – great! And you have extra money saved that could be used for other things. Having that safety net there will be useful any number of situations that could happen.

 

Preparing for Unemployment

These are things that one can do in general, to create support should unemployment happen, or should unemployment be looming on the horizon:

• Organise your budget. You should always be aware of the comings and goings of your money. You do not have to count every penny but be aware of your money’s movements on a monthly basis and how much you have spare. There are always changes you can make that will save money, some of which may include taking measures on a day-to-day basis to reduce bills, finding cheaper alternatives to the things you buy and generally finding ways to trim your spendings. If you have a mortgage, you may even think about recalculating the monthly payments to see if you can lower them. Every pound saved from somewhere all adds up eventually.

• Though it sounds like a large amount, it is said that you should try and save up six months of your usual spending – so enough to cover rent, bills, food and all the sundry others for six months. Though this calls for some major saving, should you lose your job you can be sure of good security, even if it takes a while to find a new job.

• It can seem frivolous when you are in a seemingly comfortable job, but try to stay aware of the job market and other positions. Keeping up with such information means that you will not be starting from scratch if made unemployed (and you may also not be in the best frame of mind for a while in the event of losing your job). On the other hand, you may actually end up finding a better position during your research. In a similar fashion, be sure to keep your CV up to date. 

• Be aware of any debt you may have and keep itunder control. It could cause some serious problems should you become unemployed. 

• If you have a partner or family who also rely on the money that comes from your income, be sure to discuss things with them and make plans. Work out ways together that will ensure security should unemployment happen. You may find out that you are able to pay most of the household costs just through one person’s income, freeing up a lot of saving room.

Don’t Make These Banking Mistakes

Think back to your banking habits over the years. Have you ever made any of these common banking blunders? Here are a few mistakes to avoid when you are interacting with your bank on a day to day basis:

Not Bothering to Look at Your Bank Statement

One of the habits that you should get into is opening up your bank statement in paper or online and reviewing it every month. It only takes a few minutes, but if you don’t do this you could miss fraudulent charges, accidental overdrafts, mistakes or other issues. If you don’t catch these errors it might become too late to resolve them.

Being Careless With Your Bank Details

Unfortunately there are a lot of unscrupulous people in the world who, upon given the opportunity, would be more than happy to steal your money. Don’t give them the chance! Leaving bank statements and deposit slips behind leaves you open to becoming a target of identity theft. Make sure that you shred your sensitivebank documents or rip them up before you throw them away.

Using the Same Bank for All Service

If you are looking for a mortgage or a small business loan, you don’t necessarily have to use the same bank that you have your savings account at. Feel free to look around for alternatives which might give you a better offer. This allows you to review the terms of many different banks and choose the one which offers the best deal for you.

Paying Fees When You Don’t Need To

Do you pay monthly fees on your bank account? They might not seem like much, but these little fees can add up over time and really be worth something substantial. You might find that if you do a bit of shopping around you can find a new bank account which offers all of the same features for fewer fees. Do some comparisons between all of the banks in your area to see what you can find.

 
Not Forming a Relationship with Your Bank

If you take the time to get to know the employees at your local bank and let them know you, you will receive much better service than if they just know you by your account number. Make an effort to chat with your banker and let them know your personal needs for your money. You can even call them to get their professional advice on financial matters.

These are just a few of the common banking mistakes that many customers make. By avoiding these mistakes you can make your banking experience safer, more beneficial and more enjoyable.

Tips and Advice for First Time Buyers

For first time buyers, it can seem like the housing market is against them. The news seems to be full of downbeat messages of a property market that sees rising prices (good for owners, bad for those trying to get their first home), banks that won't lend money or approve mortgages, and giant deposits that one can't hope to raise.

Luckily the internet is full of tips and advice for first time home buyers.

Including an article on the BBC on How To Be A First-Time Buyer.

The article details many things people looking to get onto the property ladder should know, including the amount of preparation one should put in beforehand:

Preparing for a mortgage starts early so make sure your documentation is in order. Lenders like to see:

• your last three years' address history, with no gaps

• your last three months' payslips and your last P60 form or three years' accounts

• your last three months' bank statements

• full details of any loans or credit cards you have

It also gives good news, and encouraging news, to first time buyers, such as a ginormous deposit isn't always necessary now. There are up to 49 mortgages available that requires only 5% deposit. There are also new goverment schemes to help people generate the deposit needed for a new home.

Of course, a lot of work is still necessary from the potential home buyers themselves and one of the best things one can do is keep track of the household budget and what can be sacrificed in order to achieve a new home. Being able to borrow money depends heavily on individual circumstances, so make sure the finanaces are in good standing.

Finance Tips for Young Couples Starting Their Lives Together

There are many guides out there for older couples who are married and have lived together for while, but what financial advice is there for young unmarried couples who are just starting their lives together. Many couples in their early 20s are just starting to learn about how to manage their own finances and work together as a team. If they make good decisions at this early stage in life they can set themselves up for success, but if they make poor choices they can find themselves struggling later on.

Successful couples will tackle managing their finances as a team and if they can work together well they can get ahead much more quickly than one person could on their own. Here are some tips for young unmarried couples who are just starting on the road to wealth together:

Align Your Goals and Money Philosophy

Have you had a conversation with your partner about how you both like to manage money and the goals that you have for your future? While this is not the most romantic thing to talk about on your first date, it is a very important topic to discuss if the relationship is getting serious. It is important that you both are on the same page when it comes to managing money, otherwise you can suffer from conflicts and resentment.

Talk about what your goals are and how you see your future playing out. Would you rather work hard and invest aggressively so that you can retire early, or live frugally so that you can work less and do more of what you love? Do you plan on buying a home one day that will involve mortgage repayments, or renting a house? Would you lease a new car or buy a used one? Once all of these lifestyle choices are on the table you will be able to see if you are financially compatible as life partners and be able to envision a life which is a perfect compromise between both of your dreams.

Don’t Keep Secrets from Each Other

Have you confessed to your partner all of the secrets of your finances, such as the amount of your credit card debt or the unpaid balance of your student loan? It is important to get these secrets out in the open as soon as possible, because they can be unwelcome surprises later on in the relationship.

While you are young, lay out all of your financial cards on the table and assess where you both are in life. Be honest and upfront about it so that you can both create a plan to work together to pay off debts and save for the future.

Prepare For Emergencies

Even if you have a great career and a comfortable income in this early stage in life, you never know what is around the corner. You could find yourself faced with an emergency, such as an accident, an illness or being made redundant, which could really throw you off track. If you don’t have an emergency fund saved up this could leave you in trouble. Try to save your money and have three to six months of expenses saved up just in case.

These are just a few important tips that young couples should remember while preparing to manage their finances together.

How to Keep Your Money Safe When Traveling

You have worked hard to save your money for traveling, so it is important to make sure that you don’t lose it to theft, fraud, or other disasters on the road. Keeping your cash safe while you are abroad doesn’t mean that you have to be paranoid; it just means that you need to keep your wits about you and have a plan for managing your money.

Here are some tips which will help you safeguard your money while you are exploring a foreign country:

 

Don’t Flash Your Wealth Around

Especially if you are staying in a luxury resort which is near to an area in poverty, don’t walk around showcasing your expensive accessories. By showing that you own an iPhone, high-end camera, beautiful jewellery, and designer clothes you will be telling every thief in the area that you are a (comparatively) wealthy tourist and this will make you a target for pick-pocketing. 

Try not to draw attention to yourself. Wear basic clothes, keep your camera hidden, and leave the expensive jewellery at home. When you are carrying cash, take out only what you will need for the day and don’t take out large wads of it in public.

 

Keep it Close to Your Skin

Another way that you can prevent against pick-pockets is to keep your cash in a money belt. This is a fabric band which wraps around your torso underneath your clothing. It prevents thieves because they would have to reach under your shirt to access the money. Never carry your wallet in your back pocket or a backpack, because someone with quick fingers can easily slip it out without you noticing.

 

Stick Together

There is safety in numbers, so to reduce your chances of getting mugged you can go out in the evening with a group of friends or at least one other person. Be cautious about walking around by yourself late at night. You might feel comfortable doing this in your own hometown, but where you are traveling you don’t know the area very well and you might accidently wander into a neighbourhood where you could be in danger.

 

Be Informed

One of the best weapons you can have against being robbed, pick-pocketed or taken advantage of is knowledge. Read up on your destination as much as possible before you embark on your trip so that you are aware of the dangerous parts of town, possible tourist scams, and other specific safety warnings. If you know about these risks in advance you will not be blindsided by them when you arrive.

Remember these tips, and you will keep your money safe the next time you are travelling abroad.

Petrol Panic As Strike Threatens

With the threat of a strike by fuel tank drivers lingering like storm clouds, the government  has released recommendations -- some which have come under heavy criticism -- for car owners should it go ahead.

Recent advice is to make sure the car's tank is topped up regularly, and don't let it fall below half (as opposed to the common fill up if it falls below a third full).

Previous advice of keeping some extra in a jerrycan in the garage has been retracted after coming under fire from the Fire Brigades Union and the AA, who say the action could be potentially dangerous. The advice came from Cabinet Minister Francis Maude, who is said to have misunderstood the size of a jerrycan -- which can hold twenty litres, more than the official amount that can be safely stored in households.

The government is keen to stress that people should be taking precautions so as not to be caught out by the strike, but that there is no need to panic just yet. There is no need to queue for fuel, says the Prime Minister. Any strike action will have to give seven days notice, allowing time for people to prepare themselves.

The government has been accused by the Opposition of adding to the panic rather than trying to come to a negotiated agreement with those threatening to strike. In a bid tosort out the jerrycan miscommunication, they have only added to the public's fears about the strike, it has been said, suffering self-inflicted damage.