Want to Save Money But Don’t Know Where to Start?

Every day seems to bring more bad financial news at the moment, and even if you don’t understand completely the implications of it, we all know it’s not good. If ever there was a time to examine your finances and where your money is going, then this is it.

Saving money however is not always that easy. There always seems to be one reason or another cropping up meaning we can’t add to our savings accounts. It’s your mum’s birthday, the kids need new shoes, you’re going on holiday or whatever it is, there is always something. It can easily feel like your finances are out of your control.

There is no need to feel like this! If everything is a bit overwhelming and you are looking for some clarity, then keep a financial diary for a month or two. Write down everything you spend, in cash and on cards, even direct debits. A picture will quickly emerge of your spending patterns and bad habits.

We all have weaknesses and it’s usually the little things that add up rather than bigger expenses. Look at what you spend your cash on, and if there are ways to avoid parting with this money. We all have busy lives, but this trick is simple and doesn’t take much time. You’ll find that you save money just by keeping the diary as writing everything down will make you more reluctant to spend.

Whether you eat out once or twice too often a week, indulge in expensive clothes, taxis or holidays, there are always areas that you can work on with your spending. Old habits are hard to break, but think about what you’re buying and find a cheaper alternative. You’ll be so grateful in the long term .

Retail Sales Across the UK Fall in August

According to the British Retail Consortium retail sales across the UK dropped throughout August. As heightened inflation and poor consumer confidence continue to negatively affect spending, a marked decrease was seen on the high street. The group however did dismiss the riots as being a major cause in the drop, saying the disruption was not widespread or long enough to have any significant affect on the sales figures. Data releases on Monday did suggest that the riots did affect footfall on high street throughout the UK, which inevitably would affect sales.

The British Retail Consortium has said that like-for like sales dropped by 0.6% in August this year compared with 2010. This figure does not include sales figures for new stores. Total sales for August 2010 saw a 2.8% increase. This year however the figures were only up by 1.5%.

Other data published yesterday again showed sluggish activity in the services sector in the UK, which saw the largest monthly decrease for over ten years. Food and drink sales increased during the month, whereas clothes remained the same. All other goods, including furniture and footwear, saw falls in sales.

It would seem that high inflation, knocked consumer confidence and the squeeze of personal finances across the country are taking their toll. Many of us are dipping into our savings accounts in order to maintain the lifestyle we have grown accustomed to but perhaps can no longer afford. Others are taking out loans and putting more and more expenses on credit cards.

We put advice articles up on our website every day, with tips on how to save money as well as explaining financial products that could help your situation and make things a bit easier. Click here to read some.



Consumers are Happier!

Good news! Consumer confidence was up in January - and by nearly three times more than in January 2008.

January 2008 was a time of deep doom and gloom about the economy, yet no-one expected that the recession would continue as long as it did...

So, are more people out and about shopping and being happy consumers? Well, not quite - but the outlook seems to have improved. Now that the country has officially exited the downturn (though at 0.1% it was hardly earth-shattering) it looks as though overall there is a more positive outlook.

Meanwhile, the currency exchange market is eagerly waiting for the BoE's latest decision on the asset-buying programme ---- will it continue? Or is it time to slow it down - one might think consumers would probably say we're ready to stand alone!

Bank of England to Turn on the Printing Press

The Bank of England is due to introduce quantitative easing in order to try and prevent deflation in the UK. Quantitative easing is a method not used in around 30 years, and in a nutshell involves 'printing money' - by buying government and corporate bonds, the cash and credit flow to the economy increases, which in turn encourages spending and lending.

The move is due to be given the go-ahead by the government and could be put into action imminently. There are many who oppose the measure, and say that it could cause hyperinflation which historically caused some bigger disasters - even currently, places like Zimbabwe are suffering the effects of longterm inflation. There is also the risk to the currency - the pound has fallen further on the news, and surely a new influx of currency would only serve to depreciate the value of the pound? There are many who may be loathe to buy currency that is going to give no rewards.

Is the bank being reckless or is this really the best thing for the country?