Do what you love and the money will follow

Tips LIFESTYLE | 03. June 2019

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy, and property business.

ABOUT ME

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice.

Do what you love and the money will follow

Tips LIFESTYLE | 03. June 2019

asdasdasd Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy, and property business.

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ABOUT ME

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice.

Latest podcasts.

What Does Leaving The EU on WTO Terms Actually Mean?

Listen to What Does Leaving The EU on WTO Terms Actually Mean?

Listen to this jargon-busting episode.

 

Word of the Day

WTO

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

The WTO has over 160 members representing 98 per cent of world trade. Over 20 countries are seeking to join the WTO.

Despite MPs voting against a no deal in March 2019, it still remains the legal default for Brexit until some kind of withdrawal agreement is passed by Parliament. A no deal Brexit would mean we leave the EU, as well as the single market and customs union, and begin trading with the EU on WTO terms.

Under WTO rules, countries set their own import rules, so a no deal Brexit means that the government could, in theory, allow goods and services from all countries across the world to be imported into the UK without tariffs or quotas.

But it doesn’t mean other countries would have to do the same, meaning that UK exports to those countries would, in many cases, face tariffs and restrictions.

In any case, the government have said that under a no deal Brexit scenario, tariffs would still apply to 13% of goods (by value) imported into the UK for up to 12 months. During that time it will undertake a review on a long-term approach to tariffs. 

Another way of thinking about free trade is that the UK would be able to decide for itself how trade with other countries would operate. In the longer-term a no deal Brexit would give the UK the greatest agency over its future trade deals, although the exact terms would have to be agreed in negotiation with each individual country. These deals would likely take years to negotiate. Source: https://fullfact.org.

 

 

Formation

1 January 1995; 24 years ago

Type

International trade organization

Purpose

Reduction of tariffs and other barriers to trade

Headquarters

Centre William Rappard, Geneva, Switzerland

 

 

 

Membership

164 member states

Official language

English, French, Spanish

Director-General

Roberto Azevêdo

Budget

197.2 million Swiss Francs (approx. 209 million US$) in 2018.

Staff

640

 

 

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook

 

The Power of Compound Interest

Listen to The Power of Compound Interest

Albert Einstein once said that compound interest was the most powerful force on earth.

What is compound interest?

In simple terms, compound interest is the effect of interest being earned, paid or on interest.

If you had £100 in the bank earning 7% interest per annum at the end of the year you would have £107. In year two, you are earning 7% on £105, not £100.

 

The Rule of 72

If you did not touch the interest or savings and the interest continued at 7% per annum how long would it be before your money doubled?

The answer is just over 10 years.

Look at it from another point of you, if you have a credit card debts rolling up at 20% per annum, how long would it be before your debt doubled in size? The answer is just over three years. However, let’s assume you are paying the minimum 2% off of your debt balance, and for the sake of this exercise we assume that effect is that you will be paying 18% on the debt. It would still only take four years before your debt has doubled in size. Furthermore, just paying the minimum payment on your balance would probably take decades before you could clear it.

I’ll give you a quick way to work out how long are some doubles based on an interest rate. It’s called the rule of 72.

If you divide the interest-rate that you are earning into 72 or take 72 and divide it by the interest-rate this will give you the approximate number of years will take to double.

In the above example, if you’re earning 7% per annum, seven into 72 is just over 10, therefore it will take just over 10 years before your money will double.

If I offered you the choice of either £1 million for one penny doubled every day for 28 days, which would you accept? The obvious answer is to take the £1 million, but you’d be wrong to take it, as one penny doubled and compounded over 28 days comes to £1,340,000. Amazing isn’t it. Day one, one penny, day two, two pennies and so on until day 27 it is £650000.

 

Word of the day

Compound interest and the Rule of 72.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook

 

Landlords Refuse Benefit Tenants Thanks to Universal Credit

Listen to Landlords Refuse Benefit Tenants Thanks to Universal Credit

Universal credit is responsible for tenants on benefits falling behind with rent, according to the Residential Landlords Association (RLA).

The RLA said 54% of landlords had reported tenants on the benefits go into arrears in the last year.

The BBC reports that Debt charity Turn2Us warned universal credit will lead to "more rent arrears, more evictions and more homelessness".

The Department for Work and Pensions (DWP) said landlords had reported seeing fewer claimants in arrears in the last year.

David Smith, policy director for the Residential Landlords Association (RLA), said it was taking too long for people struggling on universal credit to get the help they needed.

"The system only provides extra support once tenants are in rent arrears. Instead, more should be done to prevent tenants falling behind with their rent in the first place.

"Only then will landlords have the confidence they need that tenants being on universal credit does not pose a financial risk they are unable to shoulder."

Tenants have also experienced difficulty if finding landlords who will accept benefits claimants.

David Samson, welfare benefit specialist at Turn2Us, said the large number of people on universal credit in rent arrears was "a devastating example of the crippling issues with the benefit".

"The five week wait for universal credit married with the reality that it is just less generous than previous benefits will only conclude with more rent arrears, more evictions and more homelessness unless the government takes immediate action to fix some of the glaring problems."

Chris Town, a landlord in Yorkshire for 31 years, told the BBC that his tenants are "all worried about universal credit; they're terrified they're going to lose the benefit".

The experienced landlord said the introduction of the benefit since 2018 had caused many problems.

"You give people time to sort things out, but I'm waiting three months for arrears in some cases."

He added that there are problems getting access to information. "Up to now with housing benefit we've dealt with the local authority directly which means information was easy to access.

"Under universal credit it's not as accessible and you're not really sure what's going on."

Universal credit has replaced six benefits, including housing benefit, and merges them into one payment. It's gradually being rolled out around the country, but there are concerns that some claimants have seen their overall support cut.

RLA research revealed that 68% of landlords said there was a shortfall between the cost of rent and the amount paid in universal credit.

Are you a landlord with tenants on benefits or a tenant claiming Universal Credit? Money Tips would like to hear your views.

Word of the Day

Fiscal

A term used in public or government financial matters. Fiscal year, fiscal report.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

 

 

Student Loans Are an Investment in Yourself & Your Future Earnings Potential

Listen to Student Loans Are an Investment in Yourself & Your Future Earnings Potential

Invest in yourself and your education.

At this time of year, thousands of students in the UK are getting ready to start university in October. Many will be apprehensive about leaving home for the first time, as well as accumulating a large amount of debt at the end of the course.

The average student debt for tuition fees and expenses is now around £50,000, which can be daunting for any young person starting out in life.

It should really be remembered, however, that you are not paying for your tuition upfront and you do not start repaying the loan (by salary deduction) until you have reached a salary of £25,725 per annum.

Studying gives you many advantages in life and greatly enhances your earnings potential and career prospects.

  • Graduates are twice as likely to get a job as nongraduates.
  • The average starting salary for a graduate is now £34,000, £10,000 more than a non-graduate, and this gap will increase as the person lacking in education and skills falls behind.

I once heard a figure in America that every year spent in further higher education was worth £200,000 in additional lifetime earnings. Warren Buffett once asked students how much they would sell their lifetime earnings for right now, and predicted that they would sell for too little.

When you use debt to invest in yourself, you are investing in and leveraging your future earnings potential. Your earnings and career development will be boosted by any further education, whether it be academic or vocational.

When I was running a vocational college, I realised that there are thousands of degree and vocational or apprenticeship courses available in the UK at very reasonable, and sometimes zero, cost to the student. Despite being offered a free vocational course or an NVQ, some students still couldn’t be bothered to get out of bed in the morning and study. Then they complained that there was “no opportunity” in this country!

If you want to reduce your debt or self-pay, you can also do a degree at a private college for far less than a university, or save a fortune by studying at a local university rather than packing off to other side of the country.

Whatever you decide to do, there is probably no greater investment, than an investment in yourself, and you should never stop learning.

It’s never too late to study, whether this be for short-term courses to improve your skills, or going back to university, as I did, to finish a degree or take a masters.

Word of the Day

Dividend or Divi.

When you own a share in a business, the board of directors of the company can declare a dividend, or share of the profits, to the shareholders who are the owners of the company.

Used in another context, you could say that education will pay “dividends” in your life.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

 

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Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

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