Tag: finance

Don’t let your home cost you too much

Don’t let your home cost you too much | H is for Home

Most of us would say that the one place where we would want to feel the most comfortable and relaxed is our home. Our homes act as little sanctuaries away from the stress of modern life and everything that comes with it. However, it’s also pretty common for that stress to get into your home and disrupt your life as well. The most common way that this can happen is through the biggest source of stress in many of our lives: money. If your home is draining your finances then that not only breaks the spell of comfort that it’s supposed to create but it also can be a source of serious tension and anxiety in your life. With that in mind, here are some things that you can do to stop your home from costing too much.

Illustration of a house with leaves for a chimney

Use less energy

The most common and frustrating expense that a lot of us have to deal with in our homes is our energy bill. From gas to electricity to water, the utilities in your home are essential and that means that a lot of people feel like their bills are just something with which they have to deal. And sure, that is the case to a certain extent but that doesn’t mean you can’t bring your bills down. Simple things like turning lights off whenever you’re not in a room, not wasting hot water, and only using the heating in your home when you really need to are going to make a huge dent in your energy bills.

Many people are spending too much on their energy bills simply because there is some problem with their electric or gas supply. You might therefore be able to save some money by calling out some electricians to come and check over your electrics. You might find that they’re able to fix up something which helps you to save money in the long run. It’s definitely worth the call-out for lower prices in the long term.

Cartoon of a frowning man looking at a bill and scratching his head

Check the rates of your bills

Of course, sometimes the issue with the expenses in your home isn’t that you’re costing yourself too much, it’s that you’re being overcharged. It’s always a good idea to look around and see if you can find a better deal wherever possible. The same even goes for something like rent. If you’re really struggling, it may be worth talking to your landlord and trying to work something out.

Illustration of a plumber saluting wearing dungaries, tool belt and a hard hat

Hire the right people

Sometimes things are going to go wrong in your home. There really isn’t anything you can do to avoid this fact. However, by connecting with the right people you can make sure that when you hire someone to deal with a problem, you’re not going to get ripped off. A company like GBS Electrics is going to be able to help deal with electrical issues in your home without costing you an arm and a leg. The same goes for plumbers, carpenters or anyone else you might need to call.

Of course, the truth is that your home is always going to cost you money and there isn’t really anything you can do to change that fact. However, there are plenty of ways that you can make sure that you’re being more careful with your finances in general so that if you do have to spend money on your home, you’re not just going to end up in a position where you’re stuck with an empty bank account. Saving your money and avoiding luxury spending where you can are both incredibly simple things that can give you a fantastic financial safety net.

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Organising your financial paperwork

Organising your financial paperwork | H is for Home

You’ve no doubt heard your parents say, ‘not another bill!’ when the postman makes his morning delivery. At the moment, these documents probably won’t mean much to you if you still live at home, but it’s important to know about the different types of financial paperwork you could come into contact with in the future. If you don’t understand them, you won’t be able to incorporate them into your budget, and this is where money problems arise. So, let’s take a further look…

Woman calculating paper invoices

Understanding different documents

It’s important to know how to read the most important financial documents that you’ll receive. We’ve outlined some of the most common ones you may be sent below:

  • Utility bills – Utility bills include invoices for the likes of water, gas and electricity. More often than not, you’ll receive a bill at the start of the financial year, which will outline how much you owe for the year ahead. You then have the option to pay the amount upfront or you can separate it into equal monthly payments.
  • Loan statements – If you’ve taken out a mortgage to buy a home, you’ll need to make monthly payments. You can use a home loan calculator to figure out the sort of payments you could be looking at.
  • Direct debit statements – You’ll usually only receive one direct debit statement after it’s been set up. A direct debit is a regular payment. For example, you could set up a direct debit for your electricity bill, and thus ‘x’ amount will automatically be taken from your account every month on a particular day. Once you set this up, you’ll sometimes receive a statement outlining this agreement.
  • Bank statements – Nowadays, most bank statements are accessed online; however, you can choose to have paper statements posted to you. This will show you how much money you have left in the bank, as well as your recent transactions. Most people keep on top of this with online banking as opposed to waiting for a monthly statement. Nevertheless, you may need these statements in the future, if you apply for a mortgage or rental accommodation, for example.
  • Credit statements – You’ll receive a credit statement every month if you have a credit card or if you use some other type of credit. For example, you may have an account with a catalogue company that you pay off on a monthly basis. Your credit statement will tell you how much you owe, as well as the minimum amount you need to pay off and by when. Let’s say you owe £150, yet the minimum payment is only £5. You’re advised to pay off the full £150 by the date stated; otherwise, you’ll be charged interest on the remaining £145 if you opt for the minimum payment option.
  • Pay slips – If you’re employed, you’ll receive a payslip. You’ll get this every month, fortnight or week, depending on how often you’re paid. Your payslip will reveal how much you’ve received for that period, and it will also state any deductions. These are usually PAYE tax (income tax) and National Insurance. At the bottom, it will state the ‘net pay’, which is the amount of money you’ll take home.
  • Agreements – A Letter of Agreement is a document that confirms you’re ready to enter into an agreement with someone or something. For example, if you join a gym, you may have to sign one of these. This will state that you are going to pay ‘x’ amount for gym membership, and it will state how for long you agree to do so. This is where you need to be careful. If the agreement says the membership is 12 months long, without cancellation, it means you have to pay ‘x’ amount each month, for the full 12 months – even if you want to cancel early or can no longer afford it.

Pair of red box files

Organising your financial paperwork

If your paperwork starts to pile up, you should get yourself organised, otherwise you could end up missing a bill payment or something else important. Split your paperwork up into categories and have a folder for each. Categories can include the likes of: credit cards, contracts, bills due, bank accounts, car, employment, loans, insurance and utilities. Each file needs to have four sections: bills to be paid, to do, file and shred. This will help you to keep on top of everything while also making sure you don’t accidentally get rid of any important documents.

Paying invoice online using smart phone

Summary

‘Don’t understand it, bin it’ is the wrong approach! You never know what you could be throwing away, and overdue bills can lead to further charges, which is the last thing you want. Instead, handle every piece of financial paperwork with care and have a filing system in place to keep on top of everything.

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A guide to improving your home’s kerb appeal

A guide to improving your home’s kerb appeal

Home improvements are a great idea if you are a home-owner as they can make living in the property much more enjoyable, plus they can also add a great deal of value to your home which is ideal if you are considering a sale down the line. Additionally, it can be exciting and rewarding to see the project coming together although there may be a few disruptions while work is carried out. There are also endless possibilities when it comes to home improvements and what will be right for you will depend on the type of home you have, your circumstances and the amount of money that you have to spend.

Equity release

Financing the work

First, you need to decide how much money you want to spend and how you will fund the work. If you do not have savings to dip into, many home-owners over the age of 55 are finding that an equity release is a good option. If you’re unfamiliar with what is involved, you can easily learn more about equity release with Sunlife. If you’re wondering where can money released from your home take you, you could improve anything from new carpets and flooring to building a conservatory or redecorating your whole house.

Architect drawing house plans

Improvements to consider

Now that you know how much you have to work with you can decide on a project. Here are a few good options to consider:

Extension: An extension will give you a lot more room to work within your house and is a good idea for growing families or those that feel constricted by the amount of space that they currently have.

Conservatory: Conservatories are a great way to add a bright and airy space which are perfect for warm summer days. They can be used in many different ways too whether you want a lounge-type area of somewhere filled with plants.

Kitchen remodelling: The kitchen is the heart of the home and somewhere that you should be able to comfortably cook in. Remodelling the kitchen can transform the home, particularly if you have added space where people can socialise. It is also a superb way to increase the value of your home and attract buyers.

Rendering the external façade: First impressions count and opinions about a house are made before someone even steps inside. Adding a fresh stucco to the front elevation can transform the look of a building stuccorepairtucson.com is a specialist in this area.

Garden: There is nothing better than spending time in the backyard during the warmer months of the year. Making improvements like decking, water features, and a shed can be affordable and add value to the property.

Builder with a spirit level

Hiring the right people

Now you will want to find the right people for the job, and this is an area that many people worry about as you hear many horror stories. Going on word of mouth is a good idea but always research companies and look for good reviews and previous projects that you like the look of.

Home improvements can transform the property and make it somewhere that is much more practical and enjoyable to live, as well as add-on value to the home. It can also be daunting, but the above information should help any home-owner to get the project completed with relative ease.

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The hidden costs of moving house

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Three men moving house on wheels

image credit: Tammy Strobel

When it comes to moving house, there is an abundance of things we all have to consider in order to make the move go as smoothly as possible.

Even before you sell your house or tell your landlord it’s time to bring in new tenants, the journey has already begun. Having people over for viewings? That’s a good few hours cleaning, at least! Make sure you hide anything you wouldn’t want your mum to see, and ensure there’s nothing to cause you embarrassment on the day. If you’re not exactly OCD prone, perhaps you should hire in an expert. There you go, the costs are adding up already…

When you’ve found somewhere else to go, the stress really starts. Finding a company to move your stuff, taking time off work and buying furniture to fit the new place really takes its toll. If you’re downsizing, you may be looking to sell furniture in which case, you’ll need to consider how to do it. Car boot sales may be easy but, these days, people are looking for something for nothing, as they say. They’re great for getting rid of large amounts of stuff in bulk, but if you’re after the money, meticulous pre-planning using eBay and other selling sites is what you need to be doing.

Of course, if you’re moving somewhere bigger, you’ll need more stuff to fill more rooms. Spare beds, kitchen table – all those luxuries you might never have had the space to hold in the past. Remember, when you buy a house, you buy a home. You want to fill it with things that give it personality, but these things invariably cost, whether or not you’ve snagged yourself a bargain.

There are so many costs to account for when moving, that it’s almost impossible to predict. There are a lot of costs associated with the actual move itself though, that tend to be similar across the board. Deposits are a huge consideration (which are out-pricing so many first time buyers, especially), and then you have to think about things like agency fees, removal vans and everything else.

In all honesty, it’s quite the headache, so you’re probably best just working it all out with this calculator, instead. At the very least it’ll give you a starting point, so why not take the plunge and see just how prepared you really are?

Moving cost calculator on the Everyday Loans website

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