How to survive the Credit Crunch??

If I had £1 for every time I either heard the words ‘Credit Crunch’, then this so-called recession would be the furthest thing from my mind (cos I’ll be sipping pinas coladas on my yacht somewhere in the Caribbean :)

On average, economic recessions occur once every 7-10 years. And yet, with this ability to predict when the brown stuff will hit the fan, shouldn’t we be less surprised when we find the world in economic turmoil?

Wasn’t the last time bad enough? Or do you simply choose not to remember the last time?

So without pointing fingers at Economists (What do they know?), Bankers (greedy bunch!), Presidents (yes, Dubya !), Prime Ministers (yes, Mr Brown !) or your cat (no kicking please !), let’s look at some tips on how we can lessen the burden of this recession, so that when the next one comes along, we are ready for it !!

(Or, I can just copy and paste this article 7-10 years from now :)  

United Kingdom

Do you like free cash?

The Problem:

Almost 35% of all UK employees are eligible for a tax refund (no jokes!!) & every one of these employees can claim their tax for the last five years (even Saffers who have left the UK!!)

So why doesn’t everyone claim this moola when they leave? Cos, they’re either don’t know about it or they’re just too damn lazy !! And what would this refund cost me? A massive………£0 :)

The Solution:

There are 3 ways in which you qualify for a tax refund:

1) Earnings – Where your annual earnings were less than the personal tax free allowance.

2) Employment - You haven’t been employed for the full tax year.

3) Tax Code - You’ve been taxed under the wrong tax code (Duh!!).

You can always apply for a free assessment……….What have you got to lose?

Notable link:

http://www.horizon-consultancy.com/claimyourukrefund.html

International

Sending money to Mama?

The Problem:

Every single day, millions of people send money overseas. Once they’ve decided on a vendor they rarely change even if the rate / speed / security of the transaction is not the best possible.

But how does a better exchange rate help me when I’m only sending £100 at a time? You might only save £1 on every £100 per transaction, but multiply this £1 with every transaction you’ve ever done…………..I think you get my point :)

The Solution:

Currency Traders are trade worldwide currencies on a daily basis. Where commercial banks might give you a weekly average exchange rate, currency traders give you the exchange rate on that particular day of trading. Their fees are also a LOT lower than banks !!

So, the question remains, When will you see the light and make the change?

Notable link: 

http://www.horizon-consultancy.com/sendyourforex.html

And a few more tips on how to save:

- Work out a proper budget (not on the back of a cigarette packet !!) as you need to look at everything you spend to get a true picture.

- Take a packed lunch to work, skip the Pret sandwiches & save about a fiver a day (If you also skip the daily Latte you’ll save £10 a week !!)

- Change credit cards, switch them to a ''balance transfer offer" that stays at a low interest rate until the debt is repaid.

- Ditch the rugby / football / cricket season ticket (I know this one will be the toughest!!) or at least split the cost with friends. After all, how many of those midweek fixtures will you actually attend?

- Cancel the Gym membership, as many leisure centres offer membership schemes, have personal training & are kitted out with the full range of equipment. (Or you can go for a run which will save you £50 per month)

- Invest in energy-efficient light bulbs as they last about 10 times longer than ordinary ones (not because they’re made by Duracell batteries), and cost about £3. (You’ll save about £7 on your annual electricity bill)

With all this money saving tips in mind, I think the most important thing to remember is to remain positive. Every economic recession is part of a cycle, and as with every cycle, it will turn and revert back to positive growth & optimism.

 As Oscar Wilde once said, ‘All of us are in the gutter, but some of us are looking at the stars’.