Savings

Medical emergencies and how savings could be used towards medical expenses

Intellisaving — Fri, 24 Feb 2023 10:16:13 +0000

Medical emergencies and how savings could be used towards medical expenses

Intellisaving Fri, 02/24/2023 - 10:16

Date

23rd February 2023

“Change is always tough. Even for those who see themselves as agents of change, the process of starting a new thing can cause times of disorientation, uncertainty and insecurity. – Joyce Meyer/em>

Medical emergencies can occur without a moment’s notice. However, the UK has an NHS health system which provides free medical care to most UK residents, which means that most people will receive treatment for several diseases and conditions through the NHS. However, there are instances that the NHS cannot provide free treatments as they can be quite expensive; they also may refuse to send patients for vital examinations as they determine that the patient does not need one, which can sometimes lead to costly mistakes.

Therefore, when treatments or exams are not possible through the NHS, many seek alternatives such as private medical care. There are a significant number of people who have had experiences that have left them with the perspective that the NHS is increasingly failing to meet the medical demand through an adequate level of care. According to the Guardian, people feel like this because of long waiting times for GP and hospital appointments, staff deficiencies and lack of funding by the government. However, just 25% are of the perspective that the NHS should receive further funding. Supporters of Labour and Tory largely favour NHS founding standards, with 94% wanting the NHS to continue to be free for everyone and 86% wanting funding through taxes.

Moreover, in the UK, the number of people waiting for hospital treatment has increased to 6.5 million. A pattern emerged between 2012 and 2019 of the waiting lists constantly rising; however, from early 2021, this raised more rapidly. There was an 18-week aim for treatment, but unfortunately, this target has been missed since 2016.

In addition, the number of A&E visits since 2012 has surpassed pre-pandemic levels. Waiting times of over 4 hours also increased between 2015 and 2020. In March 2022, a record 41.3% rise was recorded.

Private Health Care Insurance

Private medical insurance covers, part or all medical expenses if you seek private treatment. Health care also enables people to choose how much care they want and when they require treatment.

People who prefer not to use the NHS can find it quite costly to seek private treatment, particularly for severe illnesses.

Advantages of Private Healthcare Insurance

Private health care gives you access to specialist referrals; your GP can make a referral to a private specialist for you to receive a second opinion or treatment.
Request the scans you want; for instance, if the NHS delays a scan or says you do not need one, the coverage you get from paying for health care can be used towards it.
The waiting time for NHS treatments can take a while as the demand for NHS treatment is high. The insurance can be used to lessen your waiting time for treatment if the waiting period is more than six weeks with the NHS.
You choose the physician and hospital to suit your requirements which cannot be done through the NHS
There is a higher possibility of getting a private room than an open ward with both men and women.
Some treatments are not available under the NHS for free as they are too costly or not authorised by the National Institute for Health and Clinical Excellence in England and Wales (NICE) or the Scottish Medicines Consortium (SMC).
Physiotherapy sessions are given faster if you have insurance than through NHS treatment.

Disadvantages of private healthcare Insurance

The NHS might give you better treatment for severe diseases such as cancer, heart disease or stroke and is likely to prioritise treatment for people with these conditions. Private healthcare insurance does not always cover more severe illnesses, whereas NHS covers many diseases for free.
Private medical insurance is costly, and the price will continue to increase. An average family premium (two adults with two kids under 10) can range from £700 to £1,800 per year. Premiums increase each year as you get older, which means when you are no longer a spring chicken and are elderly and might require more hospital treatment due to more illnesses attributed by factors such as old age, it might not be affordable for you.
Diseases which are chronic in nature are generally not covered. The majority of fees do not include coverage for incurable illnesses such as diabetes and certain cancers.
Private health insurances do not typically cover pre-existing conditions. Some health insurance providers may allow you to add this to the policy, which will increase the price of coverage further.
There is no guarantee that treatment options will be accessible locally. Therefore, if you pick a policy with an approved list of experts and hospitals, this may not include your preferred consultant or suitable location for your treatment.

Alternative options to having Private health care:

Depending on your financial capacity, you may want to use savings to pay for all or part of your medical care; roughly one in five private patients are doing this. Hip and knee replacements are typically £10,000 each, and MRI scans range from £500. Though you can try to find lower prices and ask your GP to assist you with this.

You can also pay for a private appointment if you are not convinced by your doctor’s diagnosis and want a second opinion. After that, your consultant may refer you to NHS if further treatment is required.

Why Saving money for medical emergencies is essential?

Building an emergency fund is vital as sometimes medical emergencies can pop out of the blue; even whilst you are on holiday, letting your hair down, the unexpected medical problem could prop up.

A substantial number of people in the UK go abroad each year for holidays; 23.8 million trips were made abroad in 2020, 74% less than in 2019 because of the coronavirus pandemic. In 2020, UK residents spent £13.8 billion abroad; this was 78% less than in 2019.

If a medical emergency happens while you are on holiday and you have saved, this can be used towards the cost of medical treatment abroad or emergency return flights.

The recommended savings account is an instant access account, covering a minimum of three months’ worth of expenses to save for potential emergencies. If your income is reduced because you are made redundant or suffer a medical emergency such as an injury, you will have a few savings to rely on if things get tight.

However, it is crucial to ensure you are financially prepared to put money in a savings account before taking the plunge.

Clear up anything that may be outstanding such as:

Debt attributed to Credit card
Unauthorised overdraft
Pay-day loans
Outstanding mortgage repayments
Door-door lending or home credit

Long term, it may be less expensive to pay any of the above off before opening an emergency saving account; however, if you are not missing mortgage repayments or any other form of credit you have is low-cost, short term or well-managed, making this part of your emergency fund may be worthwhile.

Although medical treatment can be quite costly and having savings may not be enough to cover the total cost of treatment, even if you still need to set up a funding page, if you have saved some money, you will not be entirely reliant on donations from and will be able to reach the needed amount quicker. Savings are also advantageous to get a second opinion. In addition, saving money for emergencies such as medical crises can also be beneficial if doctors from NHS are refusing to do the necessary exams you are asking for because they want to save money; if you have savings or private healthcare, you could use this towards paying for a medical exam.

On the one hand, private healthcare can cost an arm and a leg and does not usually cover chronic diseases.

On the other hand, savings can provide a financial cushion to pay for medical exams and go towards treatments unavailable through the NHS.

Nevertheless, the NHS is still an invaluable healthcare system as, without it, many would have no access to medical care, like in countries like America, where people need insurance to receive medical treatment. Ideally, private healthcare or savings would be accessed in cases where the NHS cannot provide the treatment required because the treatment is too expensive or because they are refusing to carry out specific exams such as MRIs.

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Savings

How to save money during a music festival and how are music festivals being affected by Brexit?

Intellisaving — Thu, 16 Feb 2023 11:54:38 +0000

How to save money during a music festival and how are music festivals being affected by Brexit?

Intellisaving Thu, 02/16/2023 - 11:54

Date

16th February 2023

How to save money during a music festival and how are music festivals being affected by Brexit?

Music was my refuge. I could crawl into the space between the notes and curl my back to loneliness - Maya Angelou

Music festivals and concerts are attended worldwide yearly, as they allow fans to get together to groove and listen to artists. According to a 2019 Statista study, music concerts and festivals in the United Kingdom saw a minor increase in attendance to music events in 2019, which reached just under 34 million, as there was a rise in the number of people attending festivals with more than 5 million people.

The increase in attendees in 2019 was expected to see an increase in spending from festival goers, with London taking centre stage with the most significant amount of tourist spending statistics in 2019.

Despite the yearly increase in ticket prices at popular music festivals such as Glastonbury, it did not seem to deter music fans as fans continued to splurge the cash.

Moreover, most people waited until three-quarters of a line-up was announced before parting ways with their festival cash.

In addition, the same 2019 study also found that a significant number of music fans had seen an artist at a gig or festival that they had not previously heard of, with nearly 10% revealing they had watched an unknown artist in the past week.

The following year was a year that most would never forget as Covid-19 officially made its presence known as covid 19 began in 2019 but unleashed a whole wave of havoc in 2020 and the years that followed. Covid-19 resulted in the economy closing, various lockdowns and gatherings of big crowds being prohibited because of the pace in which covid was spreading.

However, in the summer of 2022, the complete programme of festivals was reinstated from the likes of Glastonbury to Download. Nevertheless, music event organisers now face a new set of challenges with the UK leaving the European Union; as a result, British events now want support.

One of the main challenges that Brexit has caused to the music industry is that bands of every size are now required to have a carnet which is an international customs document which allows them to travel between the UK and EU with all their equipment; this can set them back a minimum of £600 or more.

The rising expenses and paperwork for British bands also apply to EU bands wanting to perform in the UK, as they face the same obstacles.

Performers from the US for the European festival season are also facing the same challenges and are contemplating if adding British events is worth adding to their agenda. The regulations and rule changes have meant that the UK is missing out on world-famous acts at UK festivals as they are skipping the UK to avoid the extra legwork.

How to prepare for a music festival?

Set a budget

Setting a budget is a vital part of any saving goal so that a clear picture can be had of your finances.

What is required for a budgeting plan?

Before starting a budget plan, you will need to calculate the amount you spend on household bills, other living costs, financial products such as insurance, bank charges or interest, and any money spent on family and friends such as lending money or purchase of gifts or travelling to events such as hen trips, forms of transport such as car expenses such as fuel tests, leisure, including gym membership, hobbies, cinema and other entertainment.
Open a savings account

Open a saving account that best fits your saving goal by researching and reading articles that give tips on what factors to consider before opening a saving account, such as how different saving accounts work, duration of saving goal, interest paid, and risks involved. Intellisaving has several valuable articles on saving accounts, such as How to choose the right savings account? | intellisaving.com.
Download a Savings app

Downloading savings apps such as Intellisaving are helpful to have to hand as they facilitate the tracking process of saving and ISA accounts for users wanting to save for emergencies or specific goals. Intellisaving also gives a detailed breakdown of balances, withdrawals and returns within the portfolio feature. And updates saving rates offered by different banks and financial institutes regularly on both the app and website.
Attempt a ‘No spend’ weekend

Set yourself a ‘no spend weekend’ once a month if possible. And go to free museums, make lunch at home, go for walks and the park, or have an indoor movie night where you can either view films with a company you subscribed to, such as Amazon prime or see films for free on YouTube. If you have leftover food, you can make a food makeover with ingredients you already have at home.
Volunteering could land volunteers a free ticket

If people volunteer to work at festivals, this can be quite cost-effective, but in return, you must work hard. Festivals are always looking to hire volunteers to assist with tasks such as wristbands at the entrance, selling programmes or cleaning rubbish.

You would get free access to the festival in return for your time. And sometimes, you could receive complimentary travel, accommodation, and food.
Take food from home to a festival

Food is one of the most significant expenses acquired during a festival. Take some light snacks and sandwiches to cut down the costs. Food stalls may also offer discounted food prices as closing time approaches, so keep an eye out for this.
Be mindful of overspending on expensive festival programmes

The festival programme can seem appealing but is generally expensive and unnecessary; however, with organised planning, you could save a few extra pounds by ditching the festival programme. Print out a copy of the line-up and a map from the festival website before making your way to the festival.
Take essentials

Take essentials such as a basic first aid kit, tissues, wipes, and painkillers so that if the unexpected hits, such as a minor injury or headache, you have it covered and will not have to fork out on extra expenses during the festival

Saving money for a music festival both before attending a festival and on the day of the festival are essential steps to take to increase the chances of attending a festival and being able to make the most out of the experience without having to stress that you have spent money that should have gone on bills and other essentials on your festival outing.

Attending a music festival is an experience worth experiencing at least once in life, and with proper preparation, this goal can be achieved, just like many other saving goals. Music, for most people, is a form of escape from the struggles of everyday life and a music event is another form of escapism and an opportunity to meet people along the way.

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Savings

State Pension age hiking - Is it worth relying on state pensions?

Intellisaving — Thu, 09 Feb 2023 08:56:43 +0000

State Pension age hiking - Is it worth relying on state pensions?

Intellisaving Thu, 02/09/2023 - 08:56

Date

9th February 2023

State Pension age hiking - Is it worth relying on state pensions?

“For many, retirement is a time for personal growth, which becomes the path to greater freedom.” –Robert Delamontague

State pensions are regular payments paid weekly from the government when someone reaches the State Pension age. The amount of state pension you receive and the qualifying number of years you need to have of national insurance payments will depend on the year you were born. Moreover, the qualifying amount you receive will depend on factors such as how much you contributed in national insurance payments, including contributions you made whilst in employment and contributions credited when you were unable to work.

The current State pension age in the UK is 66 for both men and women. It will increase to 67 by 2028 and 68 between 2044 and 2046.

However, speculation has arisen about the state pension increasing to 68 earlier than anticipated, though this has not been confirmed.

Female workers have voiced their concerns about the rise in state pension age as they cautioned about the physical strain of working till later in life and the impact this will have on millions of people who have to work until 68.

Reports were denounced by campaigners on retirement age possibly rising to 68 as soon as 2035, stating that it is “completely wrong“ for the government to impose this on people, for them to “work until they drop”, according to the Independent.

There are many pensions for people to choose from state to private pensions, although there is usually an eligibility criterion that people must meet to receive one of these pensions. Individuals typically consider their pension options whilst in employment, as employers and recruitment agencies usually recommend pensions to employees so that they can start making contributions and preparing for retirement in advance to increase their chances of getting a decent retirement fund.

How much State pension will I receive?

The quantity of state pension you receive will differ according to your circumstances and when you became eligible for the state pension.

New State Pension

The new full state pension is £185.15 per week. There are circumstances where you may receive a higher amount, such as exceeding a specific amount of Additional State Pension or delaying receiving your state pension.

Eligibility for New State Pension

The new state pension is for men born on or after 6th April 1951 or women born on or after 6th April 1953.

National insurance record

There is usually a requirement for persons to have a minimum of 10 qualifying years on their national Insurance record to receive any state pension. However, it is not required to be ten years in a row.

One or more of the below points must apply to you:

You paid National Insurance contributions whilst in employment
You received National Insurance credits, for instance, if you were not working, sick or a parent or carer
You paid voluntary National Insurance contributions

Even if you lived or worked aboard, you may still be entitled to the new state pension.

If you paid married women’s or widow's reduced rate contributions, you might also be eligible

Basic State Pension

The basic state payment is £141.85 a week for 2022-23. This applies to anyone who reached state pension age before 6th April 2016.

The basic state pension will increase by 10.1% in 2023-24 to £156.20 weekly. However, a substantial amount of people receive more than the basic state pension because they have also stocked up on additional state pension, which is centred around earnings made during your working life.

Eligibility for basic State Pension

To qualify for the basic State Pension, you will generally need 30 qualifying years of National Insurance contributions or credits to get the basic State Pension.

If your qualifying year's amount to less than 30 years, your basic State pension will be lower than £141.85 per week. However, you may be able to increase your eligibility amount by paying voluntary national insurance contributions.

How could you boost your basic state pension?

There are cases where you will not be eligible for the entire sum of money, which is currently £141.85 per week.

It is recommended that you seek financial advice while planning your retirement income.

Delay your state pension

If a state pension is deferred, your payments can increase once you claim. Deferring your pension for five weeks simultaneously boosts your pension by 1%.

The extra state pension can be paid to you in a payment form of your choosing, either through increased weekly payments or a one-off payment if you delay your payments for 12 months.

There are also other ways of increasing your pension.

If you have a spouse or are in a civil partnership, you could be eligible to improve your basic pension to a maximum of £85 a week if you are getting below this rate. You could also meet the criteria for an Additional State Pension, or pension credit may be a viable option if you have a low salary.

Is it worth relying on a state pension?

The conditions and types of pensions change, especially regarding the state pension; therefore, it is best not to rely solely on a state pension. The best thing to do is to have a second income stream for your pension fund, such as a savings account like Lifetime ISA, which can be used to save for retirement and accessed once you reach the age of 60.

In addition, looking into other pensions, you might be eligible for is also a good step forward, as you might find another pension that is as good a fit.

Times is of the essence, which means that although retirement could be far away it is still best to set up a retirement plan as early as possible though which route you choose to follow when it comes to your retirement fund is entirely your choice; however, it is worth having a plan B in case plan A does not go according to plan.

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Savings

5 habits of a successful Saver

Intellisaving — Thu, 02 Feb 2023 08:56:56 +0000

5 habits of a successful Saver

Intellisaving Thu, 02/02/2023 - 08:56

Date

2nd February 2023

5 habits of a successful Saver

“We should remember that good fortune often happens when opportunity meets with preparation.” - Thomas A. Edilson

The road to achieving something in life is never easy; however, with persistence and hard work, most aspirations can be achieved, including being a successful saver. The UK’s relationship with saving improved during the lockdowns but then retook a turn for the worse when the cost-of-living crisis worsened, and prices skyrocketed. Currently, the inflation rate is 11.1% which is a 40-year high and is 11.1%. However, the Bank of England anticipates that the inflation rate will decrease drastically in mid-2023. The BoE has this perspective because of the monthly cap on energy bills for both households and businesses that the government introduced, which means that the energy cost will not increase as quickly as it has.

Another reason they expect inflation to fall is that the cost of imported supplies will not increase as rapidly because some of the challenges businesses have faced have begun to ease. The final reason is that they expect a reduced need for goods and services in the UK, which would mean that the cost of many things would not increase as fast as they have.

However, regardless of the current financial situation, it is crucial to be able to save what you can because if you lose a vital source of income or your income can not keep up with the speed of inflation, you will have savings to turn to in cases of emergencies as some salaries are failing to keep up with inflation rates.

Set up a budget

The first step in managing your finances is a budget; although it can be a little time-consuming, it is a worthwhile investment of your time to get a better picture of your finances.

Setting up a budget can decrease the likelihood of ending up in debt and increase the chances of being more prepared for unexpected expenses, improving the probability of a good credit score and being approved for a mortgage or loan. You will also be able to see where you can save money and be more likely to save for holidays and a mortgage on a home.

What will be needed?

Before starting a budget plan, you will need to calculate the amount you spend on household bills, other living costs, financial products such as insurance, bank charges or interest, and any money spent on family and friends such as lending money or purchase of gifts or travelling to events such as hen trips, forms of transport such as car expenses such as fuel tests, leisure, including gym membership, hobbies, cinema and other entertainment. The current financial climate where the cost of living is causing many people to be at their wit’s end.
Set money aside for savings

Once you have set up your budget, make room for saving by setting up automatic direct transfers from your current account to your savings account every month. Even if you would like to save for a specific goal, it is still worth having an emergency saving pot, especially in the current financial climate where the cost of living is causing many people to be at their wit’s end.
Saving Strategy
- Trust your gut feeling when it comes to investments
  
  Sometimes the gut feeling you have can tell you things that may help you avoid getting into a financial conundrum; for instance, if you want to make a risky investment but something is holding you back, that may be your gut telling you that it is not the right time to invest or not the correct type of investment for you to devote some of your money.
  
  If you are thinking of ignoring your gut feeling, research the investment you would be investing in, such as the credibility of the investment, success rate, other people’s experiences, and whether their business is registered and still active. And think about how you heard about this investment. Is it from a reliable source?
- Trust your gut feeling when it comes to avoiding taking out extra debt
  
  If you are thinking of taking out a mortgage or accumulating another type of debt, but you get a bad feeling, this could be your intuition telling you not to add to your debt load at this time.
  
  However, if you’re still in doubt about what to do, look at your finances, such as a budget or financial plan that will give you a clearer picture of your finances and whether you have room to add another debt.
- Trust your intuition when it comes to joint saving accounts or other forms of saving
  
  If you are considering embarking on a joint venture such as a joint saving account or joint mortgage, it is a good idea to weigh the advantages and disadvantages before taking the plunge because if your partner falls through with payments, you will also be held accountable as your name would be part of this financial agreement. Even if you split up or divorce, it remains your responsibility to hold the fort if your partner does not keep up with payments and vice versa. Therefore, if you get a knot in your stomach from taking such a risk, then avoiding this sort of joint venture is best.
  
  Or if you are thinking of helping out a friend or family by becoming a co-signer, it is crucial to consider the risks as this is a risky responsibility to account for if the borrower cannot make the repayments on loan such as a mortgage, as you may have to step in and make the payments yourself.
- Be in control - of your spending and don't fantasise about your budget
  
  Make sure you have a budget plan in place so that you do not dream of a budget that may not reflect your actual finances.
- Build your emergency fund through a low-spend week or month
  
  Build up your emergency fund by doing a low-spend week or month; spending a minimum amount means spending only on essentials which does not include takeaways, coffees, or drinks with friends. A month like January, when people usually feel the financial blues after Christmas and are not as likely to go out, is a good month to pick.
- Avoid splurging out on significant expenses or lots of little expenses
  
  The temptation to overspend is something that remains even during unstable economic times; it can be tempting to spend on things that are not needed, especially if feeling stressed. But it is crucial to shift the focus elsewhere to other healthier habits, such as learning budget-friendly recipes or learning a new skill for free on YouTube.
Research - best options to save on
- Read articles on reputable sources such as Intellisaving
  
  Conduct your research by reading articles on saving and budgeting; for instance, Intellisaving has several articles covering these areas, such as ‘How to manage a household on a budget?’ and ‘Is saving really outdated’.
- Research on Google
  
  There are many reputable websites with tips and information on finance areas.
- Check the government site for schemes or discounts
  
  Check the government site for what you may be eligible for in the form of schemes or discounts to see if you could have extra money coming in. If you are eligible for a scheme set up by the government, you can use the extra money towards your savings.
  
  For instance, the government has schemes such as giving workers on low salaries who receive universal credit or working tax credit a savings bonus. They pay a 50% bonus over what is saved, up to a threshold of £1,200 over four years. If you are unemployed, redundant, or not working because of illness or on a low salary, which includes being self-employed, you could qualify for the help to save scheme.
  
  The government also chips in for Lifetime ISA (LISA) is available to anyone aged between 18 and 39; a maximum of £4,000 a year can be saved into this account, either through a lump sum or deposit in cash. The government pays a 25% dividend in addition to what you pay. For instance, if you save £1,000, this will add up to £1,250, or if you save the entire £4,000 amount, you will have £5,000.
  
  If you are a first-time buyer, you may use the money and bonus towards a deposit for any residential property amounting to a maximum of £45,000 once the LISA reaches 12 months. This type of account has dual use as it can be used for retirement though it is essential to be wary as saving into a pension has more chance of being more profitable.
Revise - saving strategy from time to time

A saving strategy should be revised from time to time as a saving method that worked well in the past may not be the best saving strategy to continue using in the future.
- Save first, spend later
  
  The save first, spend later strategy is often recommended as you pay yourself first through manual or automatic transfers from your current account to your saving account, which usually increases the chances of saving as whatever is left over after saving is then used towards essentials and other expenses.
- Common budgeting rule when wanting to save
  
  A common budgeting rule often recommended is the 50/30/20 rule; this method may be efficient for some people who want to save.
  
  50% of your income should be your most needed expenses, such as household bills/mortgage payments/childcare and other unavoidable and regular expenses.
  
  30% for wants, such as clothes and holidays or any other desirable expense you have.
  
  20% for savings. This technique may be widely known but may not be the most efficient for everyone. So, you need to evaluate your personal circumstances and devise the best budgeting strategy, and as mentioned before, it is always good to have a realistic budgeting strategy than a fantasy one.
- Multiple account budget
  
  You can also budget for saving by setting up multiple bank accounts; this is easier to do with online banks and assigning them tasks that share similarities with the 50/30/20 rule. One account can be for essentials such as housing costs, another for savings and another for things you want to buy or do. By setting up regular transfers from the main current account to other accounts, you will be able to save and budget without having to stress the process too much.

The journey to being a successful saver may not be straightforward as it can seem daunting for several reasons such as not knowing how to start saving or finding it difficult to be consistent with saving but know that you are not alone. Everyone had to start from somewhere to get to a point where they became a successful saver.

Furthermore, once the act of saving is grasped, it becomes a worthwhile investment of time and money. This is because savings have helped many people get through difficult times and helped them reach their most dear aspirations.

Moreover, as mentioned earlier, plenty of information is available from reliable sources such as Intellisaving, which is jam-packed with helpful information and recommendations. Intellisaving has an article for all sorts of circumstances, from articles for single parents to those entering retirement.

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Savings

What is Islamic Finance and Sharia-Compliant Savings Accounts?

Intellisaving — Fri, 27 Jan 2023 10:35:31 +0000

What is Islamic Finance and Sharia-Compliant Savings Accounts?

Intellisaving Fri, 01/27/2023 - 10:35

Date

27th January 2023

What is Islamic Finance and Sharia-Compliant Savings Accounts?

“We need to give each other the space to grow, to be ourselves, to exercise our diversity. We need to give each other space so that we may both give and receive such beautiful things as ideas, openness, dignity, joy, healing, and inclusion.” - Max De Pree

Islamic Finance is a method of managing money which follows the ethical standards of Islam. Islamic services range from saving and current accounts, to buying a home and investing and borrowing.

The Moral standards followed by most Muslims in their everyday life are sometimes referred to as ‘Shariah which is why Islamic services may be described as either ‘Islamic finance or Shari’ah Compliant.

History of Islamic banking:

There are roughly 520 banks and 1,700 reciprocal funds globally adhering to Islamic standards. Islamic banking practices are thought to go back to the Medieval era when business professionals in the Middle East began interacting with European counterparts. Islamic Banking started with the same financial standards as European financial services.

However, this began to change when trading systems advanced and European countries began launching local branches of their banks in the Middle East, European banks implemented some of the local customs of the regions where their banks were located which had mainly no-interest financial services and operated on profit and loss sharing strategy. Implementing these customs, was beneficial for European banks to provide financial services to Muslim business experts.

Islamic Banking remerged at the beginning of the 1960s in the modern era, and since 1975 there has been an establishment of a substantial number of interest-free banks.

However, most of these establishments were established in Muslim countries, and Islamic banks opened in Western Europe in the early 1980s. Moreover, national interest banking services were developed in Iran and Sudan by their governments.

Where and when was the first Islamic Bank in the Modern Word opened?

Mit-Ghamr Savings Bank was founded in 1963 in Egypt and is often described as the first Islamic bank of the Modern Era. Mit-Ghamr loaned money to companies and used the profit-sharing technique. Mit-Ghamr closed 5 years after opening in 1967, because of political circumstances, however, while it was operating, the bank was very cautious about approving loan applications with just 40% of business loan applications accepted.

Who is a Sharia-compliant account suitable for?

A sharia-compliant savings account is suitable if:

You would like a savings account that follows Islamic principles
Want savings to grow a savings pot that does not grow through interest but through Sharia-complaint profits
Are opposed to your bank lending money to businesses that offer goods or services – such as alcohol and tobacco, that would not be in favour of Islamic policies or your individual beliefs

How do Sharia- Compliant savings accounts function?

Every Islamic-compliant savings account foundation is based on the tenets of Sharia, or Islamic law. Interest is not permissible in Islam, therefore Islamic banks run without the use of interest.

However, the bank will invest the funds you place into your account, but interest is replaced by money earned through money made by investments. Islamic banks will not invest in any products or services considered harmful under Shari’ah law.

Moreover, a part of the profit the bank receives from their investments is returned to the saver, so savers will notice that savings will increase even without interest being applied to their account.

Islamic banks have a committee of Muslim advisors who are responsible for making sure investments are compliant with Sharia principles.

Sharia accounts do not pay interest in current accounts this is used as an interest-free loan and is referred to as ‘qard’.

Islamic banks do not offer overdrafts, because this is also deemed harmful and not Sharia-Compliant.

What is an Expected profit rate?

Islamic banks do not pay a yearly equivalent rate of interest on savings, instead, they have an ‘Expected Profit Rate’ (EPR), this means that the amount savers earn on their savings accounts is dependent on the revenue their bank makes. EPR is a replacement for interest and is used to estimate the likely sum of money you are likely to earn during your investment, though the way this is calculated is different to interest rates to abide by Sharia rules.

How does Sharia-compliant savings differ from other saving accounts?

The belief behind Islamic finance is that money should hold no insignificant value, other than being used to exchange products and services which have value. As part of this belief making more money out of the money you already have should be avoided for instance by paying or receiving interest.

Islamic finance also underlines the importance of not causing harm, therefore Islamic services do not invest in gambling, tobacco or alcohol.

Islamic Finance also believes in partnership when viable, and that revenue and profits must be distributed. For instance, among an individual and business, or two businesses. Islamic Finance products and services are accessible to everyone.

What are the names of the Islamic banks operating in the UK?

Banks with a UK licence:

Al Rayan Bank

Al Rayan bank is a retail bank which has five 5 high-street branches, 10 offices and more than 85,000 clients. Al Rayan offers services such as savings, finance and current accounts. This bank has been situated since 2004.
Bank of London & The Middle East (BLME)

The Bank of London & The Middle East (BLME) is the biggest Islamic bank in Europe, this bank was established in 2006 and its services include corporate banking, treasury and wealth management, and customer saving accounts.
Gatehouse Bank

Gatehouse Bank was instituted in 2007, services include saving accounts, home finance, and buy-to-let products. Gatehouse is London based
QIB (UK)

QIB (UK) is a subsidiary of Qatar Islam bank and has investment amenities such as savings and current accounts. In addition, QIB (UK) also offers private equity and asset management. Customers usually have a high-level net worth.
Abu Dhabi Bank (ADIB)

ADIB operates in the UK, Egypt, Iran, Saudi Arabia and Qatar. Other than the UK there are no other ADIB branches in Europe. This bank manages current accounts, savings, property search and management and relationship management

Are Sharia-compliant savings only available to Muslims?

The answer is no, you do not need to be Muslim to open a Sharia account as this account like other saving accounts is available to every saver.

Are Sharia-Compliant accounts taxed?

Yes, Shira accounts are taxed for income tax, unless they have advantages to being an ISA. For instance, interest on Cash ISA is not taxed no matter the amount you deposit this does not acquire tax. But the maximum amount which can be deposited for the tax year 2022-2023 is still £20,000.

What does the Bank of England do to support these types of accounts?

The bank of England is responsible for the UK’s financial structure and making decisions on bank rates according to the condition of the economy and maintaining stability with the courses of action they implement. The BOE enable banks to have deposits with them so that banking services can continue to be offered to everyone as part of stabilising the economy.

However, the Bank of England realised that Islamic banks were being left out in the cold because the BOE paid interest on accounts. Therefore, the bank of England took action by introducing a new kind of account for Islamic banks in the UK that does not pay interest. Islamic banks can now access some of the same support other banks are given.

Are Sharia accounts protected by the FSCS?

The Financial Compensation scheme does cover Sharia accounts. Therefore, every Shari’ah-compliant bank that is approved in the UK is covered by the Financial Comprehension Scheme (FSCS) which protects up to a maximum of £85,000 of savings per individual, or (170.000 for joint accounts) in case a bank goes bankrupt or fails. Islamic banks follow the same protection policies as other providers in the UK.

Do Sharia accounts support ISA?

Yes, Sharia accounts support ISA. In fact, they offer a variety of ISAs for savers seeking a tax-free option for their savings. ISAs function similarly to a savings account and will have an expected profit rate to adhere to Shari’ah’s law, paid into the account tax-free.

In addition, Shari’ah-compliant stocks & shares ISAs are also accessible to consumers. The cash is invested into Shari’ah-approved ethical practices, rather than companies which have involvement or links to practices such as alcohol and weapons.

The Financial industry has had many developments such as open banking, Fintech and Islamic Finance. Islamic Finance is continuously expanding and even increased in 2020 during the Covid-19 pandemic, where Islamic holdings rose to over 10%. And in 2021 -2022 the expected growth was expected to expand further because of an increase in bond insurance and a consistent monetary recovery in financial markets, this was according to S&P Global Ratings.

The finance sector will continue to develop, and within the banking sector, Islamic Finance will continue to generate more interest from savers and potential savers.

Ultimately, implementing what people deem important as part of their banking services such as with Islamic finance is something that should continue to be at the forefront and developed further. It will be interesting to see how the world of Finance shapes up in future.

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Savings

How Mental health has deteriorated in the current financial situation

Intellisaving — Fri, 20 Jan 2023 10:35:54 +0000

How Mental health has deteriorated in the current financial situation

Intellisaving Fri, 01/20/2023 - 10:35

Date

20th January 2023

How Mental health has deteriorated in the current financial situation

“I am bent, but not broken. I am scarred, but not disfigured. I am sad, but not hopeless. I am tired, but not powerless. I am angry, but not bitter. I am depressed, but not giving up.” — Unknown

The cost-of-living crisis is wreaking havoc on individuals’ finances, causing mental health to deteriorate as people are concerned with how they will make ends meet and have no choice but to cut back on activities that positively impact them their mental health and therapy sessions. According to a BACP article, a survey carried out on 2,983 of their members revealed that 66% of therapists state that the cost of living significantly impacts mental health.

The findings of the survey also revealed that six in 10 (61%) therapists reported that their clients are concerned about whether they will be able to cover the costs of bills. The research also outlines some of the mental health problems which have been aggravated by the increased cost of living calamity, such as insomnia, in which 52% of therapists stated that clients were having sleepless nights because of financial woes.

The study also uncovered that 49% of clients say they are making cutbacks on activities that increase their mental well-being such as gym and sports club memberships. In addition, 60% of therapists have noted that clients are also cutting back costs on therapy sessions because of money concerns and 47% of therapists have revealed that clients are cutting back by cancelling or pausing sessions because of a continuous strain on their finances.

The money and mental health policy institute also surveyed nearly 300 members within the Research Community. In January 2022, the effect of increasing energy expenses was explored through a thorough assessment. Most partakers in the survey said that they made amendments to their daily living arrangements because of the rising energy expenses, and 81% said they trimmed down their energy usage.

A further survey was conducted in May with inflation continuing to rise and energy costs continuing to mount, the impact on people’s finances was further tightened and found that 46% of respondents had deducted the number of meals they ate a day. And 20% had failed to maintain payments for a bill.

Research has also shown that among those struggling the most the households with the lowest salaries are struggling to keep afloat the most because of the cost-of-living crisis, as 7.2 million are unable to afford even essentials and 4.7 million are unable to keep up with bills. Because of this 2.9 million households have found themselves at their wit’s end and turned to high-cost credit loans, including loan sharks, payday lenders, doorstep lenders, or pawn shops, half of which are in arrears.

In addition, 75% of households earning less than £26,570 are going without crucial necessities such as food and toiletries. Figures also showed that more than seven million households are going hungry by reducing meal sizes, skipping meals altogether, or not showering and using inadequate clothing.

Around 4.7 million are in arrears with a minimum of 1 household expense, which is a staggering increase compared to before the pandemic, which is almost three times higher now, plus the typical level of debt continues to be more than £1,600.

On the other hand, research conducted by the Office for National Statistics (ONS) explored the impact Covid-19 had on mental health, finances and everyday life, and found that people were still being negatively impacted by the COVID-19 pandemic in the run-up to April 2021, for instance, those who were self-employed were three times more likely to state that they had seen a deduction in salary and were also twice as more likely to rely on savings to pay for essentials compared to employees.

ONS also found that individuals within the lowest salary bracket, which is up to £10,000 per year, were more likely to state the challenging impacts this had on personal well-being compared to those in higher pay brackets, such as the pandemic amplifying their mental health (18%) and 32% reporting feelings of stress and anxiety.

In addition, individuals in the highest income brackets paid up to a maximum of £40,000 or more, were still more likely to report that the coronavirus pandemic had a damaging effect on their work, this group was also 6 times more likely to state that the pandemic had caused a deterioration in their professional relationships with colleagues, and those employed were two times more likely to find working remotely a challenge than individuals in the lower salary pay bracket.

The findings also unveiled that parents who were employed were less likely to be laid off since the start of 2021, which was not the case during the first phase of the lockdown, however, employed parents were more likely to reveal a reduced salary than those who were not parents, however despite the financial constraints parents sustained a verdict of feeling less lonely and reported better scores of feeling that they were conducting a worthwhile life.

Moreover, a consistent pattern emerged among those aged under 30 revealing that their wages had decreased in payment (15%) and those aged over 60 years (5%); nevertheless, there was a higher percentage of those under 30 years who stated they could save for the year ahead (50%) compared to older age groups (39%).

The perspectives on salaries and saving also seemed to vary; for instance, individuals with the youngest age group were not as financially robust as older groups, as 47% of those under 30 revealed they could pay for unforeseen expenses compared to 71% of those aged 60 and over, although more of the under 30s reported being able to save for the upcoming year.

The research conducted by ONS and other organisations such as BACP all found a significant link between mental health and financial constraints; people have been greatly impacted on an economic and emotional level. The fact that people must go without food, essentials and other activities that benefit their mental health because of financial limitations is deeply concerning as all these factors put a bigger strain on people’s well-being.

Although the government has introduced schemes such as an Energy support scheme for most households to help with rising energy costs, this is a temporary solution expected to be in effect until March 2023. The government also introduced the energy price guarantee which limits the amount suppliers can charge their suppliers until March 2023. However, despite the support available, many households still struggle to make ends meet.

The money and policy institute proposed that the government introduce measures such as making Universal Credit and other support schemes easier to access. And permitting recipients of benefits to seeking support from friends or family to manage their benefits.

They also propose that firms are more considerate when sending letters, emails and phone calls to those in debt by being more supportive. They also believe that regulators should be held responsible when taking the steps mentioned and impose severe penalties on companies that disregard vulnerable customers.

Tags

Savings

How to save money while renovating your home?

Intellisaving — Thu, 12 Jan 2023 13:03:31 +0000

How to save money while renovating your home?

Intellisaving Thu, 01/12/2023 - 13:03

Date

12th January 2023

How to save money while renovating your home?

“Renovating: a process in which we tear down the walls of our comfort and rebuild to become better, stronger, and more beautiful than we were before”- Unknown

The cost of living has come at a high cost from every angle including higher mortgage rates which have been impacted by soaring inflation and the Bank of England increasing the bank rate to try to slow down the inflation rate. The increases in interest rate from the Bank of England is impacting mortgages because borrowing has become more high-priced. For instance, those who have a floating mortgage with rates bound to the Bank rate are likely to notice monthly payment increases.

According to the banking and finance sector representative for UK Finance, the typical rise for those on tracker mortgages will be £73.49 monthly and for those on standard variable rate (SVR) mortgages, it will be £46.22 a month.

Moreover, mortgage holders looking for new fixed-rate agreements are still likely to pay 6% more now for two and five-year deals because of the mini-budget upheaval where fixed-rate deals rose in price.

Therefore, experts have advised mortgage holders not to fix their rates, because of the ongoing interest rate insecurity and the cost-of-living crisis being worsened by this and other contributors such as the mini-budget which went belly up.

In addition, the typical household cost surged by 9.6% in the past year and has reached a colossal figure of £24,000 more than in 2021. Because of this many people are preferring to refurbish their current home instead of relocating to another humble abode.

Nevertheless, revamping your homely nest can still cost an arm and a leg though there are ways to save a pretty penny with the tips and advice section we have put together below.

How to save money and do property renovation?

Set a budget

Setting up a budget is a useful way of keeping a lid on finances to stop them from getting out of control, as you will have a better idea of how much you can afford to put aside for renovations.

How to do this:

Write a list of what you want to renovate and once this is done ask for a written quote instead of an estimate.

What is the difference between a quotation and an estimate?
- A quotation is a fixed price agreed set by the tradesperson and agreed upon by the customer before going ahead with any work on a property
- An estimate on the other hand is an approximate value which could change by the time the work is completed
Compare tradespeople and get at least three different quotes

Comparing tradespeople, having at least three different quotes, and searching for reviews from other customers is important as well as a good way of increasing the likelihood that you would be getting good value for money.

Once you have picked a tradesperson, ask for a written agreement that has the agreed costs. If the tradesperson says more work will need to be done after the job has commenced, ask for a written estimate and an updated costed contract. It is crucial to do this before any additional work is agreed upon and started.
Do some of the work yourself if possible

Try to cut down construction costs by asking your contractor if the cost can be reduced if you prep the space for the builders in the morning, clean the waste left from construction, or do the demolition yourself.

Many people can do DIY interior painting, tile a backsplash and do other minimal duties. You can learn how to do DIY tasks that are more difficult in nature such as the installation of floors through online videos, home development stores and community colleges or adult schools

However, be mindful of which DIY tasks you put yourself forward to do as some jobs require a licensed contractor, for instance, complicated plumbing and electrical work because they could be hazardous, and you could injure yourself or cause damage to your property. Therefore, try not to overexert yourself beyond what is practical for you to do or you might have to pay someone to redo the work.
Search for bargains

Generally, contractors purchase materials for your revamp from their suppliers. However, if you don’t mind doing extra legwork, you could search for bargains and buy the material to save money.

Saving on the restoration of the materials can be done by keeping an eye out for sales, buying floor models of cabinets or appliances, and looking for minor scrapes such as discolouration or dents.
Obtain permits

If you are planning on going big with significant renovations such as home extensions or new construction, electrical, mechanical, and plumbing adjustments, you could need a permission form from the planning and building control departments within your local council.

Although obtaining a permit is not free, this could come at a higher price if you do not get a permit.

If you do not have the required permit, you may be obliged to demolish the work you did and pay penalties before redoing any work. Constructions or developments which have not been permitted may result in your house selling for less than your initial asking price, once you decide to set up roots elsewhere. The permit procedure can be managed by contractors, however doing this, yourself is likely to save you money.
Reuse materials

Hardware

Hardware such as ‘doorknobs, light fixtures, drawer handles, bathroom rods’ and other hardware types are usually reusable when not in more than one piece. Some of the hardware could be used towards future renovation projects.

Natural wood

Natural wood is both recyclable and relatively straightforward to reuse. Leftover wood can be used for other restoration ventures or can be used to make furniture and other small-scale constructs. For example, if you have a leftover wooden plank, this can be remoulded into a wooden bench or if split into smaller parts can be used for a pergola.

Don’t dismiss pieces of wood which seem insignificant as these could be used for decorative pieces such as small shelves, candle holders, picture frames and decorative wall panels.
Do your own painting

Repainting a home does not require you to be a professional at the craft, many people repaint their own homes to save money there are YouTube tutorials on how to paint a home such as a room. And you could also ask the staff at a DIY store for some tips on the best paint to buy and how to start.

One way of giving a new leash of life in your house is to paint the cabinets in your kitchen at a reduced cost.
Refinish floors

Refinishing your floor instead of replacing it is an efficient way to makeover your floor while saving money. Discussing this option with your chosen tradesperson or with another construction specialist to get some advice on refinishing your floor would be a great step.
Renovate your house gradually

There may be the temptation to tick every item off your reconstruction list, however, it is best to start gradually by starting with the most important and affordable tasks first. This also gives you more time to make a more thorough plan and secure the best deals as you focus on fewer renovation tasks at one time.
Amazon warehouse

Amazon warehouse sells previously opened products that may come at a bargain; however, it does come with some risk Amazon do categorize the condition of these products to make it easier for you to choose a product. Amazon warehouse is a good place to look for kitchen appliances and furniture.
Keep your distance from plumbing

Plumbing can come costly, for instance, if you move a sink or toilet which would require re-routing water lines through the property this would affect plumbing, on top of that there is also the extra cost of tearing parts of a hose to route pipes, so it is best to make the most of what is already available to you.
Download the saving app

Intellisaving is an innovative saving app designed with savers in mind, the platform facilitates the integration of multiple saving and ISA accounts. The features range from a personalised dashboard used to navigate users to different screens, a personalised portfolio for users to access a summary of their finances, a comparison feature to compare the best saving rates being offered by banks and building institutes and a watchlist to add saving products of interest during a comparison search on the app.
Have a saving account just for home renovations

The cost of living crisis has spiralled out of control due to substantial increases in costs however, if you can afford to do so have a saving account just for home renovations if you can afford to do so that way what you deposit into the account can be used towards the costs of the renovations once you have enough money for reconstruction, also having a saving account for this purpose also means that you are more likely to be able to afford to pay for any additional work that may be required.

The cost-of-living crisis could worsen in 2023 or it could start to show signs of recovery at some point in the year, if things get worse and the Bank of England continue to increase interest rates mortgage rates will continue to be higher than usual and people wanting to buy a home will be deterred further from buying a house in the unstable economic climate.

However, if things improve and mortgage rates stabilise more people will want to purchase homes.

Nevertheless, renovating rather than relocating is also something worth considering as there are many ways of saving money whilst redecorating and if you revamp your home and decide to sell it when the financial climate improves you may sell your house for more and at the same time will be able to enjoy some of the fruits of your homely makeover while you live in your current home.

In addition, those who rent can also do a home makeover such as painting and adding some new and recycled pieces, instead of purchasing a house during the financial crisis. And should speak to their local authority to find out what building works they can do as a tenant of a rented property.

Tags

Savings

What impact could Divorce/Legal separation have on your joint savings

Intellisaving — Thu, 15 Dec 2022 12:36:46 +0000

What impact could Divorce/Legal separation have on your joint savings

Intellisaving Thu, 12/15/2022 - 12:36

Date

8th December 2022

What impact could Divorce/Legal separation have on your joint savings

“Sometimes good things fall apart so better things can fall together” — Marilyn Monroe

Relationships can fall apart for several reasons, and during covid-19, many couples broke up because of constantly being under each other’s feet and realising they no longer had a lot in common or were no longer in love. According to a guardian article, breakups of romantic and non-romantic relationships increased during the pandemic, with more than 1 in 5 dissolving their relationship at home or work.

The research conducted by University College London’s Covid-19 Social Study, the UK’s most extensive survey of social bonds, found that 22 per cent of adults went through a dissolution of a relationship of some kind, with family, friends, colleagues, or neighbours. The college analysed how relationships and lifestyles adapted during the pandemic, and more recorded data of more than 70,000 people.

However, according to ‘Office for National Statistics (ONS), there were 103,592 divorces in 2020 in England and Wales, a drop of 4.55% compared to 2019; most were among heterosexual couples (98.9%).

In addition, it is also important to note that the Ministry of Justice had revealed beforehand that the COVID-19 pandemic had impacted family court proceedings, which included a short-term postponement of operations by some courts for some time, which may have affected the time and number of finalised divorces in 2020, though it is hard to know how much this may have had an impact.

When couples are in relationship bliss, they sometimes decide to share their finances, such asjoint savings and other finances, but if a relationship reaches its untimely end, it can be challenging to know how to divide the finances and other assets after separation.

How to understand your finances?

Put together all your financial documents and statements for mortgages, bank accounts, loans and investments. You must look at your documents to ensure you have a good idea of how your finances are shaping up. Start by listing a breakdown of your salary and outgoing and putting together a revised household budget.

Division of savings

If you have joint savings and are separating, you should agree on how mutual savings will be divided. In the eyes of the law, the policies on entitlement to funds in a joint account after separation depend on where in the UK you reside.

England and Wales

After two former partners decide to cut ties, the money in a joint account goes to the person who paid into the account. However, even if one partner has not contributed, a claim can still be made to have a part of it. Although, it will be hard to prove that they are entitled to the funds in the joint account if they have not made any contributions.

The partner who did not pay into the joint account would have to show that the purpose of the account was for both partners to have joint finances, which both partners could use. Married or people who are in a civil partnership have an equal right to cash in a joint account.

If, while you were on good terms with your partner, you opened a joint current account, loan, credit card or investment with your ex. It is recommended by banks that you contact your bank, credit card company or other suppliers to tell them what has unfolded. You could also ask them to freeze joint accounts to avoid your former partner mounting new debts or withdrawing without your knowledge. You must ensure that any combined bills can still be paid for using Direct Debit or standing order.

Division of other finances

Write a list of all the matters you share in common with your past love, such as:

Personal assets like furniture or jewellery
Cars
Funds deposited into bank accounts such as joint accounts
Savings and other investments

The list does not have to contain all your possessions. It might be worthwhile to include assets worth £500 or more or anything you want to keep a hold of to facilitate the process.

You should also include other vital details such as debt, bank overdraft, credit card debts or hire purchase arrangement (Citizen’s advice).

Even if your debts are shared, you are mutually accountable for the entire sum, not just your part. If your former other half fails to keep up with debts after you two are no longer an item, you will need to pay the debt yourself.

Irrespective of whether you and your ex-flame are still on talking terms, it is best to ensure you have a plan in place to pay off shared debts. If you are concerned that your ex may fall through with payments, you might have to consult a solicitor.

Second cards on credit and store card accounts

If you are a credit or store account holder and your ex has a card on their account, by law, you are seen as accountable for your spending and theirs.

Your options are to either:

Ask your ex-partner for the card back
Alternatively, contact the card company to block the card or eliminate your old flame from your account.

You may think that just your name is on the account, but it is best to ensure that the account is only in your name by checking with your lender that your partner is not on the list as an approved cardholder.

Intellisaving

Intellisaving is a money-saving app that integrates multiple savings and ISA accounts. Intellisaving has several innovative features that are suitable for different saver’s journeys, for instance, a dashboard that is used to navigate people to the other screens, such as the market page, which displays the different saving products which banks and other financial institutes have on offer so you can view the best interest rates on offer. The Dashboard also takes users to the watchlist feature, which is used to add saving products that pique an interest during the comparison search.

The article is also home to numerous money-saving tips such as ‘UK Electricity Prices Cap - a deep dive’ and ‘Saving Trends for 2022’.# Money Saving tips # Financial management # Money saving app Relationships do not always live up to people’s hopes and dreams; therefore, it might be a good idea to keep finances and assets separate from partners, as you never know what might be around the corner.

However, if you decide to combine your finances and belongings with your romantic companion, it is essential to be aware before making any alterations to finances or possessions of what happens if your relationship crumbles and you separate or divorce; that way, you know what you are getting yourself into.

On the other hand, if you have already taken the plunge, you can still work together with your ex-flame to iron out the details of how your mutual finances and other possessions should be divided. Hopefully, an amicable understanding can be reached to avoid adding more turmoil to an already stressful experience.

We hope this guide has been helpful and remember that sometimes things fall apart to make way for something better.

Tags

Savings

Back to School - plan by saving in advance without getting financially worried

Intellisaving — Thu, 01 Sep 2022 13:44:01 +0000

Back to School - plan by saving in advance without getting financially worried

Intellisaving Thu, 09/01/2022 - 14:44

Date

1st September 2022

Back to School - plan by saving in advance without getting financially worried

“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future”- Alexa Von Tobel

The start of the next school chapter can cause anxiety for some children, especially if a child is transferring to a new school or returning after a long summer holiday. This can also impact the family as they prepare for the new year. Family action suggests identifying emotions by getting kids to open up by discussing your own feelings and getting them to open up about their feelings as well and then coming up with creative strategies such as making a list of the positives of returning to school or treating the child to keep them motivated. However, this does not have to be costly; this can be through a family game night, there also suggestions online for free games to play.

Anxiety and lack of confidence can also affect adults in terms of managing their finances and can heighten with the cost of preparing the kids return to school. In fact, in the UK, 39% of adults (20.3 million) are not confident in managing their finances, and almost nine million have significant debt, but only a third receive help.

Moreover, the inflation rate has reached a staggering 10.1% in 40 years due to the surging food and fuel prices while households struggle to keep up float. The Office for national statistics revealed that the consumer prices index increased by 10.1% in the year to July this year, a rise from 9.4% in June and has reached double figures faster than the city had initially predicted. The last time the figure was this high was February 1982. Inflation has also infringed the 10% threshold for the fourth time in 70 years, with the other periods being 1951-52, 1973-77 and 1979-82.

The higher cost of living makes it harder for many families to afford essentials such as gas, rent, food and other resources such as school supplies.

Furthermore, the school holidays are ending, the kids are due to return to school soon, and the list of supplies is mounting because of a need for an array of new supplies such as stationery and uniform. For some parents, this can be a welcome return as they have a break from being stranded with the kids when the kids go back to school, but at the same time, it can be a stressful time because of getting everything ready for the return to school days and the cost of back-to-school supplies.

Therefore, it is crucial to find ways to cut back on costs by applying strategies for saving, such as doing a scavenger hunt around your humble abode to find previous years’ supplies to see what can be reused and what cannot.

Personal Experience during childhood:

During the summer holidays as a child, I used to ask my parents to take me to funfairs and cinema. My mum would buy some of my uniforms, such as trousers and skirts, in Asda because it was more pocket friendly and buy the rest of the uniforms, such as the dresses and jumpers, in a uniform shop. The uniform she bought would last throughout the year, as I was not one to ruin my uniform.

My favourite part of returning to school as a child was buying stationery such as pencil cases.

How to save on school essentials?

Open a savings account

Open a savings account for your children to save for what they may need for the new school year and continue to save for them throughout the year, as they may need additional money for school trips and more uniforms.
Do a budget plan

Do a budget plan that includes both a saving and spending strategy, and include a budget for any essentials you may need and how much you need to spend; and if you have more than one child, divide how much you will spend per child
Conduct a Scavenger hunt around the house

Conduct a scavenger around the house looking for previous year’s supplies which can be reused this year. Maybe involve the kids in this by turning it into a game; after all, you will cover more ground and keep them entertained for a while.
Make a list of what is needed

After you have completed your scavenger hunt, write a list of what the kids need and tick them off as you go along.
Arrange a school supply with friends

Once you have completed your list of essentials needed, see if you can start ticking some of those items off your list by arranging with your friends and neighbours to get together to swap Office and school supplies before going all out on a shopping spree. You or your friends could have an extra pencil case or a set of pencils or pens which you could swap with something else. Discuss a supply swap with your family and friends who have school-aged children, as they may be interested in participating with some supply goodies.
Check-in pound stores for some school supplies

If you really must splash out on supplies, head to local pound stores as they could have everything you are looking for at a reasonable price, from notebooks to pencil cases.
Search for bargains online

Shopping online can be convenient when you lack time to roam around the shops and can help you compare the best prices from the comfort of your home. As part of your research, keep an eye out for discount codes or online cashback offers; this could help you cut costs.
Check whether you are entitled to any support

There could be support available to you, such as grants; this can depend on your financial situation and where you live; your local council or school may be able to assist with the cost of school uniforms or PE kits. Additional information can be found at gov.uk/help-school-clothing-costs.

Hundreds and thousands of parents are in the same shoes, trying to figure out how to navigate between the higher cost of living and back-to-school resources, worrying about how they will be able to afford everything they and their children need.

However, the kids going back to school does not have to be a time of constant worrying; there are many creative ways and strategies, as shown in the tips section, to combat the financial pressures of the higher cost of living and additional expenses, such as back-to-school resources for the children, which could help with the extra cost of having children.

Tags

Savings

The wrong savings choices are as dangerous as ‘No savings’

Intellisaving — Thu, 18 Aug 2022 07:43:20 +0000

The wrong savings choices are as dangerous as ‘No savings’

Intellisaving Thu, 08/18/2022 - 08:43

Date

18th August 2022

The wrong savings choices are as dangerous as ‘No savings’

“Every decision brings with it some good, some bad, some lessons, and some luck. The only thing that’s for sure is that indecision steals many years from many people who wind up wishing they’d just had the courage to leap.” Doe Zantamata

Saving is essential because sometimes life throws unexpected curveballs such as redundancy, medical expenses for trials if all other treatment options fail, funeral costs if a loved one dies suddenly, and savings become more vital than ever if a crisis occurs. Saving is crucial for reaching lifetime goals such as purchasing a first car or a deposit on a first home. Therefore, we have put a short guide on different saving choices and the risks involved with making the wrong decision.

There are several ways people may choose to save or invest their money, as this article will go on to explain:

Lifetime Stocks and shares ISA

Lifetime stocks and shares ISA could be ideal for 18–39-year-olds, including a 25% bonus from the government. The highest amount that can be invested each year is £4,000. The maximum quantity you can receive from a bonus is £1,000 per year; you will also receive a bonus for any savings you make before you reach the age of 50. It is important to note that investments in the stock market should be viewed as long-term investments regardless of investment type or who manages the account. Many investment experts advise investing for at least five years. If you cannot commit because of the risks involved, such as losing part of your investment, then a saving account may be more suitable as the risks are reduced.

Property Crowdfunding

What is Property Crowdfunding?

Property crowdfunding is a property investment that gathers the funds of numerous investors and puts them together to buy property or lend to developers as loans or fund property developments. Generally, investors give a small contribution to the total cost.

Property crowdfunding can be advantageous for many reasons, as it’s a quick way of getting a substantial amount of money; this is also beneficial because investors can contribute smaller amounts while having access to deals, they would not usually have access to.

Investment ISAs

An individual savings account (investment ISA) is tax-efficient and allows savers to buy, sell and hold investments. Typically, when you invest, you must pay tax on income or capital gains you get from investments. However, with ISA, with regulated and accredited providers, you will not be taxed on capital gains and pay as long as you follow their regulations.

ISAs are tax-free, so any gains you get from investments do not need to be included in your tax return. Therefore, tracking capital gains with ISA is a thing of the past; furthermore, if all savings and investments are in ISAs, you will not have to fill in a tax return form.

Cash ISA are savings accounts that do not require you to pay tax on the interest you receive. The options available include fixed-rate and instant access. With a cash saving account, you will not need to deposit large amounts of money with cash ISAs.

Cash ISA continues to have a £20,000 limit for the tax year of 2021/22; this account will also give you tax-free interest on your savings. You can open one cash ISA per year; however, you can transfer to another Cash ISA or a stocks and shares ISA with a different provider during the tax year. Some cash ISAs are flexible as they will allow you to withdraw and replace money from ISA, which will not decrease your monthly allowance as long as you have done this within the same tax year. And will not have to affect your current ISA allowance. It is essential to consider that not all cash ISAs will allow you to have this type of flexibility with your account, so find out with your provider whether your ISA offers this flexibility. Lifetime Isa and Junior Isa do not have this benefit at present.

There are a few disadvantages to Cash ISA, such as the fact that you will not be able to update your annual limit unless you have a Flexible ISA, as a Flexible ISA will allow you to withdraw money and replace the funds without this having a negative effect on your allowance.

Saving accounts

Saving accounts are interest-bearing accounts that are available in banks or financial institutes. The interest rate on these accounts is usually appealing to savers. The benefits of a saving account are having the security and dependability of having money in a saving account. Saving accounts is one of the least risky and convenient ways to increase funds.

Saving accounts, however, have decreased in popularity for several reasons, such as historically low-interest rates and the fact that there are several new ways to invest, such as cryptocurrency. However, interest rates have increased in recent times as the base rate is currently 1.75%; therefore, this could be an ideal time to have a saving account or bond.

The importance of making the right decision

It is vital to make the right saving choices because if you make the right decisions regarding finances, your money could bring you through financial burdens that may occur. However, if the wrong financial decisions are made without thorough research, you could end up investing in something that could lose you your investment which could be pretty costly if an emergency happens, and you need the money you invested.

However, people have different appetites for risk; and some investments carry more risk than others whereas some people are willing to invest even though they know they may lose their investment, others are not so willing to make investments that involve a significant risk which is why it is crucial to make sure you have read all the terms and conditions and done your research to make a more informed financial decision.

Furthermore, making the wrong financial decision, such as choosing the wrong savings account, which also mean that your money is not generating as much interest as it could, and you might end up paying penalties for an account that is not entirely fitting your needs.

Jillian Michaels once said:

“Whenever you’re making an important decision, first ask if it gets you closer to your goals or farther away. If the answer is closer, pull the trigger. If it’s farther away, make a different choice. Conscious choice making is a critical step in making your dreams a reality.”

Making decisions can be challenging as a decision made today could either provide fruitful results, have no effect on your lifestyle or have a diverse impact on your situation. Nevertheless, if a leap is not taken, you could be left wondering in the future what might have happened if you had just taken that leap would you find yourself in a better position today, would you have realised any of your dreams, or would your circumstances be precisely as it is now? So, what decision will you be making next, and where might it take you?

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