ARE YOU READY?

30 DAYS

The Challenge began on 4th June, every day for 30 days participants received a new task to work towards financial fitness. Don't worry if you missed it - the tasks are below, it's never too late!

Coming next ....

Building Foundations

Each task takes you one step closer to financial freedom

Reach Your Goals

From a secure foundation you can work towards your goals

Congratulations

Keep up the good work

Pat yourself on the back - you've reached the final day of the challenge and, hopefully, your hard work will have started to pay off.

Today the challenge is to look forward. Financial security over the longer term is achieved by being debt free and building up an emergency fund before you look to spend on the fun stuff. If you haven't got savings of around 3-6 months worth of income (your monthly take home pay multiplied by 3 as a minimum, ideally multiplied by 6) then putting in place a savings strategy (once your debt is cleared) to achieve this is key.

Your emergency fund will protect you if you loose your job, if you're ill, if the boiler breaks or your car breaks down. Always top it back up as soon as possible if you have to dip into it if an emergency does occur. If you would like to embark on a Wealth Therapy journey or, if you have any questions or feedback on the challenge please do get in touch. It's always good to hear from you.

Resist Impulse Buys

If you're going to buy then do it well......

Research before you shop. Before you buy anything always ask yourself - do you really need it? If it's an impulse buy you're considering, then give yourself a 'cooling off period' to think about it before you buy (two weeks works well as sometimes the impulse subsides). If it is something you need then shop around - use sites like Google Shopping or Hot Deals UK to find the cheapest supplier; See if you can get additional discounts (for example using a Bluelight Card or Student Discount card). Many of the large retailers have outlet shopping sites where you can get goods at considerable discounts.

Make do & Mend

Creative, individual, budget friendly

Rather than throwing away and replacing why not get creative? There are a whole host of ways to upcycle. Whether it's getting creative with Furniture, mending ceramics or upcycling clothing there are both locally run and on-line sessions to teach you a new craft. If you have scraps of fabric or old clothes that can't be repaired, why not upcycle it into something else? It can be spun into yarn for knitting or weaving projects, used for quilting; used to make rag rugs, decorative wreaths or bunting. The possibilities are endless!

This is one I'm keen to try as an example: Online SASHIKO - Japanese Mending Workshop Tickets, Multiple Dates | Eventbrite

Rethink your Gift Strategy

Gifts from the heart have greater impact

How often to you splash out on lavish cards and gifts for birthdays and special occasions? Why not get creative and make something instead? If you're not the creative type then perhaps set a challenge with friends - set a spend limit for birthdays and other special occasions and rise to the challenge. Sites like World of Books, Second hand selling sites, Charity shops can be a treasure trove and you will be doing your bit for the planet at the same time.

Expand your horizons

Why not try something new?

Do you always meet friends at the pub or for food? Are you paying for expensive Gyms or classes? There are some things we love doing and don't want to give up, but others are just habits. Why not switch up the latter and find free things to do.

Spice things up by finding free activities on Eventbrite (there's a filter for the free stuff), Local Council websites; look in your local library or on community noticeboards for ideas; check out free lectures at Universities; Events at local Art Galleries or Museums or just go for a walk or try wild swimming. In some areas there are free outdoor cinema screenings or Music performances in the Summer - the possibilities are endless. If you tend to eat out why not pack a picnic and venture into the great outdoors?

Going Green

Even a windowsill can work as a micro-garden

Fruit and vegetables are essential for good health but they can bump up the cost of your food bill. If you have your own garden why not try growing your own? If you're a lazy gardener check out this idea The low-maintenance edible garden for lazy gardeners - BBC Food. June is the time to sow Kale and Beans, carrots and cabbages. Lettuces can be grown most of the year round, even in small spaces or indoors - save £££ on bagged salad. If you have limited space but get the gardening bug why not put your name down for an allotment? Most local councils have schemes.

On a water meter? Think about your usage.

If you aren't on a meter it is important to weigh up the pros and cons before you decide to convert. Ofwat have a useful publication on their website which will help you decide. It can be found by clicking here.

You can get water saving tips as well as a number of freebies to help cut your consumption here

Save as you Clean

Natural cleaning products save both money and the environment.

White Vinegar and baking soda will match the performance of some of the most expensive products on the supermarket shelves at a fraction of the cost. Don't worry about your home smelling of vinegar as this quickly disappears. There's a useful guide on the Treehugger website here.

If you buy products because they leave a lasting scent why not try a few drops of essential oil in a fragrance burner? Geranium oil is good for providing a calm, welcoming fragrance. Citronella will keep the bugs at bay, Lavender promotes a restful night, Clary Sage is good for focus. Experiment to find your favourite blend- remember, never leave burning candles unattended.

Spend nothing!

A whole day of holding back....

Choose one day this week to be a 'no spend day' this is when you are going to not spend a single penny from your budget (excluding any household bills). Focusing for a whole day on not spending helps to highlight those habits we do regularly but don't think about such as grabbing that cappuccino or going for a quick pint after work. Look at where you were tempted and ask yourself why - what is that treat giving you and what is it taking away from your overall budgeting goals. Is that morning double espresso derailing your holiday saving?

Always over budget?

The Jam Jar Strategy can help

When I lived on my own in my early 20's I literally took out cash and put it in jam jars labelled with my different goals 'Holiday Fund', 'Clothes & Shoes', 'Spending'. that sort of thing.

Now with so many places only taking contactless that isn't so easy. I always recommend having a 'bill account' separate to your spending money (Something like Santander Edge or Nat West who offer cash back on your household bills). I pay mine by direct debit each month and make sure there's enough transferred into my bill account to cover all my basic bills. I keep any variables such as food separate.

Lots of bank accounts like Chase and Monzo let you set up multiple pots. Say you don't want to spend more than £10 per day, just keep the rest in your savings account and set up a transfer for £10 each day from your savings account to your current account. Restricting your access to cash is the simplest way to make you think before you spend. Leave your Credit Card behind too.

Declutter and release £££

Are there things in your house / shed that you don't use?

Unless just looking at it makes you feel good, it's time for it to go. Use sites such as Vinted, eBay, Gumtree, Facebook Marketplace or local selling pages. Or why not do a car boot or table top sale.

Clearing the clutter is not just good for our mental health it can also add to our wallet. Don't be tempted to blow the cash you make on more stuff. Use it to pay off debt or, if you're debt free, add it to your rainy day fund so that you are protected if something unforseen comes up.

Switch and Save

Simple things like switching to energy efficient lightbulbs and turning off anything you're not using can help save both the planet and your hard earned cash.

Switching from halogen bulbs to LED could save you £3-£4 per bulb per year. It all adds up! Check out The Energy Saving Trust website here for more information on the most efficient lighting. They also have lots of tips for saving energy around the home.

Drilling down into the ingredient Costs.

Why not expand your recipe repetoire and get adventurous. Keep it simple to start with then build on your skills. Plan your shop for this week and keep up with your good habits but this time think about the cost per portion.

There are many so many recipe websites out there, lots of which have budget recipes. Perhaps one of the most popular for strict budgeters is Jack Munroe's site which has lots of cheap meal ideas that are costed out for you. Joe Wickes has a Budget meal plan which you can download here.

Cooking from scratch can be fun and things like home made hummus, falafels, curries, bolognaise or chilli all taste so much better than the ones you buy ready made. The BBC food site is another source of inspiration and supermarket websites often have budget recipe tips too.

What's the retirement plan?

How will you finance your retirement?

The average life expectancy in the UK for Males born in 2020 is 78.6 years and for females it is 82.6 though many live much longer. The State Pension age would be 68 someone born in 2020 (though this can change). . No matter how long you have, it's important to consider what standard of living you want in those years.

Some people are lucky enough to have substantial final salary pensions but, for the majority, your retirement savings are very much down to you. Personal Pensions can currently be taken from age 55 but this is changing in 2028 to 57. Saving more might allow you to take your foot off the pedal sooner. Even if you can't afford to save enough to do that, building up a pension pot will increase your financial freedom when you do retire.

Check what you are paying into your workplace pension and dig out any policies from old employers to see what they might give you. Unlike the state pension, a personal pension is not lost when you die, it can be an effective tax planning tool as it can pass on tax efficiently to your beneficiaries when you're gone.

Future Proofing

Make sure you know where you are heading

Once working you start to build entitlement to the State Pension. The full State Pension currently stands at £11,502.40 per year (around £221 per week) and you build up 1/35th of this for every year you pay National Insurance (NIC).

There may be times when your NIC's are paid for you - such as when you are in receipt of things like Child Benefit or Carers Allowance. It is worth checking your NIC record and your State Pension Forecast so that you understand where you currently stand.

It's a fairly simple job and should take no more than 10 minutes. You will need to confirm your identity so have your National Insurance Number and Passport to hand and then head over to the Gov.uk website here

Having a Plan is key

Knowing where you stand will make you feel more in control and less anxious over your finances.

Analysing your cash, particularly now you have trimmed down your bills will help you to see where you are spending. The Martin Lewis site has a handy tool that can be found here

Where do you shop?

It's time to compare your options....

Sometimes our choice of shops is dictated by location, other times we base it on things like liking the store layout or being familiar with where products are located. As this challenge is focusing on your money we are looking at cost.

If you have a recent supermarket receipt to hand it is worth working through this and comparing prices at whichever shops are available to you to see if you are getting the best deal. Look at all of the items you buy regularly - could you save money by switching stores?

Tools like Google Shopping can be handy as well as the supermarkets' own website.

It's worth checking out farm shops (and wholesale markets if you are a large household or can bulk buy produce with a group of friends or family). Buying locally and seasonally can reduce your bill further - check out our What's in Season section here. Defra produce a weekly list of what UK produce can be found at Wholesale markets and a current indication of prices which can be found here.

Plan your shop

Deciding what you need before you head to the shops can save you both time and money

It's all about forming good habits when it comes to food shopping. Utilising what's in the cupboards, fridge & freezer and planning out the week's meals before you head off will save you both time and money. If you have a freezer then batch cooking will mean you will have a supply of nutritious home cooked ready meals for those days when time is short. You could cook just one batch a week, making enough for four or five meals and then rotate your batch cook recipes to give you a constant supply and a wider choice over time.

Find out what's in store .....

Time to delve deep into your store cupboards and fridge to see what wonders you can uncover.

Tackle the food cupboards and tap into your creative side. Look at what food you have in the house - everything.

Start using up the things in your cupboard. Make a meal plan for the week ahead using the staples you have at home. Doing this can reduce your shopping bill substantially and will help prevent food waste.

Don't forget about the vegetable drawer - even very sad looking veg can be turned into a tasty minestrone soup. If there's something in there you know you will never use then check out Olio or pop along to your local foodbank and donate.

Home made food is better for you and for your wallet

Less additives, less cost.

Over the next few days we are going to be looking at food. The grocery shop, eating out, buying ready prepared food - they all take up a large chunk of our budget. We need to stay healthy and reduce our spend at the same time.

Today, focus on preparing your own food rather than buying pre-prepared. Also, check out the healthy eating advice on the NHS website here for new ideas and inspiration.

Fuel prices have increased transport costs

It's time to look at the way you travel

More people are now working from home but, for some, the daily commute is still very present. Either way, there may be more cost effective options to get around. Look for offers; perhaps consider season tickets; walk; examine cycle to work schemes. Today your task is to give thought to how you get around and the effect it has on your budget.

Subscribing to ITV+ for your Love Island Fix?

Review your packages

Guilty as charged! My daughter got me in to watching Love Island (not something I would usually admit to watching) so we subscribed to ITV+ to watch on catch up minus the ads. We all do it - perhaps there's a series everyones talking about that you want to watch so you subscribe to Netflix, Apple TV, Disney Plus or Prime. Todays challenge is all about looking at your streaming subscriptions and ditching any you no longer watch or listen to.

Broadband

Check your service and the cost to ensure you are on the best package

The first thing to ask yourself when reviewing any contract is 'What do I need?' Do you need the fastest possible speed because you use video conferencing or gaming or are you an occasional browser? Pay for what you need and compare providers to see which give you the best deal (comparison sites can help with this). If you're in contract make sure you are receiving the guaranteed minimum speed, if not you can exercise your right to switch regardless of the remaining term by speaking with your provider.

Shopping Around for Insurance

Make sure you are on the best deal

Most insurance quotes fluctuate daily. The rates you pay move in line with each individual insurance company's claims experience. If you're a 40 year old driver and company A has recently seen an increase in claims from 40 year old drivers then Company A may charge more in premiums than many of their competitors. This is one of the reasons it is important to compare at each renewal. Making sure you are organised and giving yourself plenty of time to research can save you money each year.

Are you on the best deal?

Could you save by switching contracts?

Todays challenge is all about looking at your mobile phone. Are you on the best deal? Is it time to switch? Do you pay for more data than you are using? There are lots of companies out there (Smarty, Asda, Lebara) who offer no tie in periods for SIM only deals meaning you are free to switch whenever a better deal comes up and they all let you take your number with you. If you are not tied in anymore, then why not see whether you can save money? If you are still in contract then set yourself a diary reminder for one month before the end of your contract to review your options.

Switching Accounts

Are you getting value for money from your bank?

Having a long standing history with your bank can boost your credit rating but there's nothing stopping you from switching if another bank has better rates and some even offer you cash to switch. Sites such as Martin Lewis' Money Saving Expert are useful places to check out the current offers, this link takes you directly yo the site Best bank accounts: Get £175 to switch, up to 7% interest or up to 1% cashback - MSE (moneysavingexpert.com)

Dealing with debt isn't easy

But there are things you can do that will help

Always make sure you pay at least the minimum payment and make sure your payments are on time. Use a tool like Credit Karma or Experian to check your credit score - a healthy score buys you the best deals.

Use these sites to check what deals you may be eligible for and think about switching to a 0% deal. The higher your interest rate the longer it will take you to pay back so it's important to keep the rate as low as possible.

Utility Bills

Check your deals and the amount you pay

Energy prices have come down compared to the peak and now is a good time to check if you are on the best deal. You can use comparison sites such as Uswitch, have your latest bill to hand. Martin Lewis has a useful article on whether to fix your tarrif.

Is it time to fix your energy or stay on the Price Cap? (moneysavingexpert.com)

Check your mortgage rate

Are you paying too much for your Mortgage?

When fixed rate mortgages end lenders can switch you to their follow on rate which is often higher than any new deals that are available. Still on a competetive rate? Find out when your deal expires and make a note in your diary to ensure you get the best deal when your current rate ends.

Can you afford to overpay? Most mortgages allow you to overpay by 10% of the outstanding balance each year - worth it if the rate you are on is higher than the rate you could get on savings (though don’t forget to leave yourself an emergency fund of around 3 months income)

Detoxing the Debits

Are you still paying for that Gym membership or Magazine Subscription you no longer need?

We all sign up for things from time to time and forget to cancel them when they no longer serve us. Check through your standing orders and direct debits - you may be able to cut your outgoings.

Be careful that you didn't sign up for a minimum term before you press delete as you may still be liable for the remainder of the contract.

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