0:00:02 > 0:00:04'Whether you're a spender or a saver,
0:00:04 > 0:00:07'we can all do with knowing how to make the most of our cash.'
0:00:09 > 0:00:12'So we've found simple advice for you to do just that
0:00:12 > 0:00:15'and taking it to towns and cities right across Britain.'
0:00:17 > 0:00:20'Whatever help you need with your finances,
0:00:20 > 0:00:21'we are Right on the Money.'
0:00:22 > 0:00:25Hello and welcome to Right on the Money -
0:00:25 > 0:00:28the series that puts more cash back where it belongs.
0:00:28 > 0:00:31- Where would that be, Denise? - In your pocket.
0:00:31 > 0:00:33And today, we're in my old stomping ground,
0:00:33 > 0:00:36Birmingham, and I'll be giving Dom a little bit of a personal tour
0:00:36 > 0:00:39and passing on some super savvy advice.
0:00:39 > 0:00:41You know what they say - time is money.
0:00:41 > 0:00:43So, we better be getting on with it.
0:00:43 > 0:00:46And coming up on today's programme...
0:00:46 > 0:00:49'We try and help one couple save enough cash
0:00:49 > 0:00:51'to see them through their retirement.
0:00:51 > 0:00:54'But persuading them to give up those creature comforts is
0:00:54 > 0:00:56'easier said than done.'
0:00:56 > 0:00:58I want to keep doing it.
0:00:58 > 0:01:00I mean, there's no point if you're cutting back
0:01:00 > 0:01:04to such an extent that you can't go out and enjoy yourself.
0:01:04 > 0:01:07'Plus, how you can turn those car-boot sale buys
0:01:07 > 0:01:10'into a tidy profit by reselling them online.'
0:01:10 > 0:01:14If you spend time sourcing the right items and make them look good
0:01:14 > 0:01:16and list them, well, there's money to be made
0:01:16 > 0:01:18from other people's rubbish.
0:01:21 > 0:01:23In my short time here, I've discovered that Birmingham
0:01:23 > 0:01:26has got one of the youngest populations in Europe.
0:01:26 > 0:01:28Which is probably why it's full of vibrant restaurants,
0:01:28 > 0:01:30bars and great shops.
0:01:30 > 0:01:32All the sort of things that will appeal to the next family
0:01:32 > 0:01:35that need our help because they do like the odd treat.
0:01:35 > 0:01:37- Ha, or ten!- Yeah.
0:01:37 > 0:01:40'Aubrey and Jane Perch from Stockport
0:01:40 > 0:01:42'just love their creature comforts.'
0:01:42 > 0:01:44I just like to spend money, basically.
0:01:44 > 0:01:46I just like stuff.
0:01:46 > 0:01:49I love buying tops, for instance, and I buy a lot of them.
0:01:52 > 0:01:54My lifestyle now, really, is
0:01:54 > 0:01:58I play golf when I can and we eat very well
0:01:58 > 0:02:01but I just go on the basic idea - if you've got enough beans,
0:02:01 > 0:02:03yeah, go ahead and buy it.
0:02:03 > 0:02:05I just don't like spending money that I haven't got.
0:02:05 > 0:02:06And I'm the opposite.
0:02:08 > 0:02:09I enjoy spending money.
0:02:11 > 0:02:14'And Jane's love of spending means her wardrobes are bursting
0:02:14 > 0:02:16'with hundreds of items of clothing.
0:02:16 > 0:02:19'And while Aubrey does like to treat himself to posh nosh,
0:02:19 > 0:02:22'Jane enjoys dining out with her friends.
0:02:27 > 0:02:30'These two just like living the high life. They always have.
0:02:30 > 0:02:34'They first met on a skiing holiday in the Italian Alps.'
0:02:34 > 0:02:36We bumped into each other a few times on the slopes
0:02:36 > 0:02:40and then eventually just went out for a date and that was it.
0:02:40 > 0:02:43- Here we are...- Here we are now. - ..26 years later.
0:02:45 > 0:02:47'Jane and Aubrey have two sons -
0:02:47 > 0:02:51'Christopher and Andrew - who, despite being 24 and 21,
0:02:51 > 0:02:55'still rely on the bank of Mum and Dad and, in the case of Christopher,
0:02:55 > 0:02:58'still live at home.'
0:02:58 > 0:03:00Paying your way through paying rent and bills in a house
0:03:00 > 0:03:03is quite difficult. So, every now and then...
0:03:03 > 0:03:06- Yeah.- ..I've got a fall back. - Agreed.
0:03:06 > 0:03:07We've always been there for them.
0:03:07 > 0:03:10Financially helped them out when they've had to be.
0:03:10 > 0:03:12To be fair, if it was a friend who was struggling,
0:03:12 > 0:03:15I'd probably do a similar thing. So, if it's your children,
0:03:15 > 0:03:17there's no question. You step in and do it,
0:03:17 > 0:03:18whatever help they need.
0:03:18 > 0:03:21I would rather it was me who had no money than they have no money,
0:03:21 > 0:03:22if you get my drift.
0:03:22 > 0:03:24'We get your drift, Aubrey,
0:03:24 > 0:03:27'because you're amongst the 75% of UK parents
0:03:27 > 0:03:31'who have at least one child over 18 still living with them.
0:03:31 > 0:03:34'Despite this though, they've always managed to afford to help
0:03:34 > 0:03:37'their children and maintain a comfortable lifestyle,
0:03:37 > 0:03:39'but that's all about change.
0:03:39 > 0:03:42'Aubrey is already retired and in a week's time,
0:03:42 > 0:03:44'Jane's going to join him.
0:03:44 > 0:03:48'She's leaving her part-time job, which means a big drop in income.'
0:03:48 > 0:03:53My State Pension doesn't kick again until 2019 when I'll be 65.
0:03:53 > 0:03:56We're now at quite a crossroads.
0:03:56 > 0:04:01Until I finish work and I start getting my pensions,
0:04:01 > 0:04:04we're not quite sure how the future's going to be.
0:04:05 > 0:04:08'With no State Pension for another three years
0:04:08 > 0:04:10'and a mortgage still to pay off,
0:04:10 > 0:04:14'these big spenders need to reduce their monthly outgoings.
0:04:14 > 0:04:16'But with some huge changes ahead,
0:04:16 > 0:04:18'can they live without those little luxuries?'
0:04:18 > 0:04:22I don't think it's worth, in life,
0:04:22 > 0:04:26giving up everything just because you can't afford it.
0:04:28 > 0:04:31'Seems like Jane and Aubrey need a firm hand.
0:04:31 > 0:04:34'So, who better to pay them a visit than personal finance expert
0:04:34 > 0:04:36'Sarah Pennells?'
0:04:36 > 0:04:38- Hello.- Hi.- I'm Sarah.
0:04:38 > 0:04:39Hi, Sarah, Aubrey.
0:04:40 > 0:04:44'She's determined to help them find a way to fund their retirement,
0:04:44 > 0:04:47'but Jane is one of the 500,000 women affected by
0:04:47 > 0:04:50'the Government's decision to increase the State Pension age
0:04:50 > 0:04:55'for women and that's something she hasn't budgeted for.'
0:04:55 > 0:04:58I was expecting to get it earlier, I think.
0:04:58 > 0:05:01Most people of my age presumed they were going to get
0:05:01 > 0:05:03their State Pension at 60.
0:05:03 > 0:05:06It would have been quite a nice buffer.
0:05:06 > 0:05:09And, unfortunately, they changed, moved the goalposts,
0:05:09 > 0:05:13and just as I was coming up to that point, they moved it to 65.
0:05:13 > 0:05:16It was a huge disappointment, though. Huge.
0:05:16 > 0:05:18So, between now and then,
0:05:18 > 0:05:23how much less will you be having to live on as a family
0:05:23 > 0:05:25compared to when you were working?
0:05:26 > 0:05:30I think we realised... The difference is about £400 a month.
0:05:31 > 0:05:34'Now, don't worry about having to wait for your pension, Jane,
0:05:34 > 0:05:37'because if anyone can help, our Sarah can.
0:05:37 > 0:05:40'Sarah clearly needs to tackle the family's overspending
0:05:40 > 0:05:43'on clothes and expensive treats.
0:05:43 > 0:05:45'But she's easing them into saving money
0:05:45 > 0:05:47'by tackling their household bills -
0:05:47 > 0:05:50'starting off with their TV, phone and broadband package.
0:05:50 > 0:05:54'And even here, it's clear that the Perches like to overindulge.'
0:05:55 > 0:05:59You've actually got over 200 channels as part of this package.
0:05:59 > 0:06:03It's about as big as you can get, in terms of TV packages.
0:06:03 > 0:06:04It's about £125 a month, I think.
0:06:04 > 0:06:07It's the XL package we have.
0:06:07 > 0:06:10Do you watch a lot of TV? Do you watch...?
0:06:10 > 0:06:12Are you scuttling between 200 channels?
0:06:12 > 0:06:13I do watch quite a lot of TV,
0:06:13 > 0:06:16but it's generally mainly the terrestrial channels.
0:06:16 > 0:06:18Have you never watched this before?
0:06:18 > 0:06:21So, you tend to watch between the five channels?
0:06:21 > 0:06:22Yes.
0:06:23 > 0:06:26That's all my mum watches is Channel Five, terrible films.
0:06:26 > 0:06:29- And Murder, She Wrote. - Strictly Come Dancing.
0:06:29 > 0:06:30And Columbo.
0:06:30 > 0:06:34'Which raises the question of why they're wasting so much money on all
0:06:34 > 0:06:36'those channels when their viewing habits
0:06:36 > 0:06:39'haven't actually changed since the 1990s.
0:06:39 > 0:06:42'Well, Sarah's found them a brilliant deal
0:06:42 > 0:06:44'which will save them £40 a month,
0:06:44 > 0:06:47or a whopping £480 a year.
0:06:47 > 0:06:51'And the good news is - they can still watch Columbo!
0:06:51 > 0:06:54'Sarah's also discovered that the Perches are spending a small fortune
0:06:54 > 0:06:57'calling mobile phones from their landline.'
0:06:57 > 0:07:01Do you ring your friends or family on mobile from your landline?
0:07:01 > 0:07:03I do ring Aubrey, yes.
0:07:03 > 0:07:05I just don't think about it.
0:07:05 > 0:07:07I just pick up the landline.
0:07:07 > 0:07:12'All those phone calls are costing them an eye-watering £300 a year.
0:07:12 > 0:07:16'Jane would be much better off calling Aubrey using her mobile
0:07:16 > 0:07:19'because she rarely gets near to using up the minutes
0:07:19 > 0:07:21'on her monthly tariff.'
0:07:21 > 0:07:24That's £25 a month that could be in your pocket
0:07:24 > 0:07:29- if you just stopped calling mobiles from your landline.- Yeah.
0:07:29 > 0:07:31So what are you going to do? Start calling...
0:07:34 > 0:07:36'That's another easy saving
0:07:36 > 0:07:38'of £300 a year.
0:07:38 > 0:07:41'Result! And there are plenty more monthly bills
0:07:41 > 0:07:42'for Sarah still to tackle.'
0:07:42 > 0:07:45So, you might wonder why I've insisted that we come up here
0:07:45 > 0:07:49into your bathroom. Well, it's because one of your monthly costs
0:07:49 > 0:07:53that seems quite high to me is your water bill.
0:07:53 > 0:07:55So, how much are you paying a month for your water?
0:07:58 > 0:08:00I don't know! I'm sorry.
0:08:02 > 0:08:03I don't know.
0:08:03 > 0:08:07- You're actually paying about £85 a month.- Uh-huh.
0:08:07 > 0:08:09It's almost £1,000 a year.
0:08:09 > 0:08:11£960, or so.
0:08:11 > 0:08:12And that's quite high.
0:08:12 > 0:08:14How much water do you use?
0:08:14 > 0:08:18Two baths a day and...
0:08:18 > 0:08:20- Well, more than... - Three or four showers a day.
0:08:20 > 0:08:22Three or four showers a day as well, yeah.
0:08:22 > 0:08:24So, you're very clean, aren't you?
0:08:24 > 0:08:26You're a squeaky-clean family, aren't you?
0:08:26 > 0:08:29- With a shower in the morning and a bath in the evening!- Oh, yes.
0:08:30 > 0:08:32'A bath and a shower a day.
0:08:32 > 0:08:35'Now, look, I'm no soap dodger, but this lot are in danger
0:08:35 > 0:08:38'of disappearing down the plughole.'
0:08:38 > 0:08:41You might be able to save some money by switching to a water meter.
0:08:41 > 0:08:46And if you then cut down on the water you use as well,
0:08:46 > 0:08:48you could possibly save a bit more.
0:08:48 > 0:08:50'But this family uses so much water that surely you won't
0:08:50 > 0:08:54'be able to save them any cash. Sarah?'
0:08:54 > 0:08:56- Well, do you want the good news? - Go ahead.
0:08:56 > 0:09:01Based on your current very, very clean lifestyle,
0:09:01 > 0:09:05we can actually save you about £200 a year.
0:09:07 > 0:09:08'That's another £200
0:09:08 > 0:09:11'towards the retirement coffers.
0:09:11 > 0:09:13'Sarah's really on a roll.
0:09:13 > 0:09:16'She wants to find out how much 24-year-old son Chris
0:09:16 > 0:09:18'contributes to the family household.'
0:09:19 > 0:09:23This room, the room we're in now, this is sort of your lounge, is it?
0:09:23 > 0:09:25Yeah. My man cave, essentially.
0:09:25 > 0:09:28- Yeah.- And what do you pay your parents?
0:09:28 > 0:09:32Do you pay them any kind of rent or any money towards bills or food?
0:09:32 > 0:09:36The only rent I really pay directly is about £50.
0:09:36 > 0:09:38- So, £50 a month? - Yeah.
0:09:38 > 0:09:40£12.50 a week.
0:09:40 > 0:09:41Yeah, it's not a lot. Yeah.
0:09:44 > 0:09:46'According to the housing charity, Shelter,
0:09:46 > 0:09:50'a quarter of all 20 to 34-year-olds in work
0:09:50 > 0:09:52'still live with their parents.
0:09:52 > 0:09:55'Like Chris, many simply can't afford to move out.
0:09:55 > 0:09:59'But, very often, their parents are the ones left out of pocket.'
0:09:59 > 0:10:02I'm going to be a bit nosy about your finances now.
0:10:02 > 0:10:05- That's OK.- Have you, sort of, tried to give your parents more?
0:10:05 > 0:10:07Is it that they don't want the money, or that you've not
0:10:07 > 0:10:10thought about giving it to them?
0:10:10 > 0:10:12They never ask me directly just for money back
0:10:12 > 0:10:14or any more money than £50.
0:10:14 > 0:10:18I would really like to be able to pay them back more every month.
0:10:18 > 0:10:22Yeah, I'd be OK with giving them £100.
0:10:22 > 0:10:25'Wow, you got off lightly, Chris.
0:10:25 > 0:10:28'But offering to pay more every month is certainly a result.
0:10:28 > 0:10:31'But getting Mum and Dad to actually take the cash is another story.
0:10:31 > 0:10:34'So Sarah gathers the family for a heart-to-heart.
0:10:34 > 0:10:36There are going to be families up and down the country
0:10:36 > 0:10:38who are in the situation you're in.
0:10:38 > 0:10:42How do you feel about the kind of financial contribution
0:10:42 > 0:10:44that Chris makes?
0:10:44 > 0:10:46Well, I think it's reasonably fair.
0:10:46 > 0:10:50We don't cause the household a lot of expense, anyway, do you?
0:10:50 > 0:10:56- No, not really.- So, Chris has said he pays £50 a month.
0:10:56 > 0:10:58- Yes.- It's £12.50 a week.
0:10:58 > 0:11:00I'll be moving in with you!
0:11:00 > 0:11:03- Brilliant! - 'By the way, Sarah, I was first.
0:11:03 > 0:11:05'Let's get to the point.'
0:11:05 > 0:11:08And have you ever had a conversation about him paying more,
0:11:08 > 0:11:11or would you rather he doesn't pay more?
0:11:11 > 0:11:14Rather he doesn't pay me, to be honest.
0:11:14 > 0:11:17- And why is that?- Well, because I think the money he earns,
0:11:17 > 0:11:20he should have as much to himself as he can have, really.
0:11:20 > 0:11:22I think, if we needed to,
0:11:22 > 0:11:25we could ask Chris to pay more and I'm sure he'd say yes.
0:11:25 > 0:11:26But we'd rather not.
0:11:28 > 0:11:30'That extra £50 a month from Chris
0:11:30 > 0:11:33'could really boost Aubrey and Jane's retirement fund.
0:11:33 > 0:11:38'However, this looks like one battle Sarah is destined to lose.'
0:11:38 > 0:11:40I think it's really hard for parents who've got
0:11:40 > 0:11:44grown-up children living at home to have that conversation
0:11:44 > 0:11:47about whether they pay anything and how much they pay.
0:11:47 > 0:11:50But I do think this family's beginning to realise
0:11:50 > 0:11:52that they do need to make some changes.
0:11:52 > 0:11:57And if Aubrey and Jane aren't prepared for Chris to pay them more,
0:11:57 > 0:12:01they'll have to bring in that extra money from somewhere.
0:12:01 > 0:12:04'And that will be Sarah's next big challenge.
0:12:04 > 0:12:06'But she's not doing badly so far.
0:12:06 > 0:12:09'If the Perches take on board Sarah's advice,
0:12:09 > 0:12:11'they would save £980
0:12:11 > 0:12:13'on their household bills.
0:12:13 > 0:12:15'That part was easy.
0:12:15 > 0:12:18'But Sarah's biggest task will be convincing the family to cut back on
0:12:18 > 0:12:23'their love of fancy food, eating out and buying all that clobber.'
0:12:23 > 0:12:25Good grief!
0:12:25 > 0:12:26How many tops have you got?
0:12:26 > 0:12:28I've no idea. I've never had a count.
0:12:33 > 0:12:35Well, we'll find out whether Sarah here has managed
0:12:35 > 0:12:38to work her magic on the Perch family finances
0:12:38 > 0:12:40a little bit later on.
0:12:40 > 0:12:42Now, in that film, we mentioned that a quarter of adults
0:12:42 > 0:12:46aged between 20 and 34 are still living at home with Mum and Dad.
0:12:46 > 0:12:48Just like Jenny here. Jenny, thanks for joining us.
0:12:48 > 0:12:51- No problem.- We're going to come to you in just a second.
0:12:51 > 0:12:53Sarah, that a large number, isn't it?
0:12:53 > 0:12:54Why is it such a big issue?
0:12:54 > 0:12:58Well, figures show that if you'd been born in 1960,
0:12:58 > 0:13:01by the time you were 30, you'd have about a 50% chance
0:13:01 > 0:13:03of owning your own home.
0:13:03 > 0:13:07If you were born in 1990, that would have gone down to about 25%.
0:13:07 > 0:13:10The average deposit at the moment is about £33,000
0:13:10 > 0:13:14for a first-time buyer. Well, that's almost double what it was
0:13:14 > 0:13:15less than ten years ago.
0:13:15 > 0:13:17It's a huge amount of money for people to find.
0:13:17 > 0:13:21But how is that impacting the parents and their finances?
0:13:21 > 0:13:24I think there are two issues and it depends on whether you're a parent
0:13:24 > 0:13:27who's still working or whether you've already retired.
0:13:27 > 0:13:29If you're still working, for a lot of parents,
0:13:29 > 0:13:31once they get to, say, their mid-50s,
0:13:31 > 0:13:34that's when they think their children will have left home,
0:13:34 > 0:13:36they can really concentrate on their own finances.
0:13:36 > 0:13:38Well, if their child comes back to live with them,
0:13:38 > 0:13:41that's going to put a spanner in the works, as it were.
0:13:41 > 0:13:43If they've retired, I think it's more serious
0:13:43 > 0:13:44because they're on a fixed income.
0:13:44 > 0:13:47They won't have budgeted for that extra cost, the food, the energy,
0:13:47 > 0:13:49all those extra bills.
0:13:49 > 0:13:51And I think that's where it can cause a real problem.
0:13:51 > 0:13:54Now, Jenny, you're still guilty of living with Mum and Dad, aren't you?
0:13:54 > 0:13:57- Yeah.- I want to find out, one - has it helped your finances?
0:13:57 > 0:13:58Why are you still living at home?
0:13:58 > 0:14:01And also, tell me about the blog you write.
0:14:01 > 0:14:05So, I moved in with my parents in September 2014.
0:14:05 > 0:14:07And I moved in to save money,
0:14:07 > 0:14:09like most people in their 20s do.
0:14:09 > 0:14:11There's absolutely tonnes of us.
0:14:11 > 0:14:13And we've got quite a bad reputation, I think,
0:14:13 > 0:14:16us boomerang generation, 20-somethings.
0:14:16 > 0:14:20So I thought this would be a chance to get our side of the story
0:14:20 > 0:14:23- and put the record straight. - And how are those savings going?
0:14:23 > 0:14:26It's going really well. I've got around £13,000, £14,000 now
0:14:26 > 0:14:28towards my deposit on a house.
0:14:28 > 0:14:30- Gordon Bennett! - That's not bad going.
0:14:30 > 0:14:31But you saw Chris in the film.
0:14:31 > 0:14:35Please tell me that you're paying more than £12.50 a week?
0:14:35 > 0:14:37Yeah, I'm paying £200 a month.
0:14:37 > 0:14:40- That's not too bad.- As soon as I moved in, my mum was like,
0:14:40 > 0:14:43"You're paying us 200 a month. If you don't pay me, you're out."
0:14:43 > 0:14:45So they're happy with that money.
0:14:45 > 0:14:49Good for your mum. Because, Sarah, in that film, we saw you.
0:14:49 > 0:14:52You tried very hard and you failed
0:14:52 > 0:14:54to convince Aubrey to charge his son more.
0:14:54 > 0:14:56What would your advice be to other parents?
0:14:56 > 0:14:59Well, I think, first of all, you've got to think about the financial
0:14:59 > 0:15:02implications of having your adult child moving back in with you.
0:15:02 > 0:15:04And be up front, be honest about it.
0:15:04 > 0:15:06Work out what you need and what do you think is fair.
0:15:06 > 0:15:09For some parents, they may not need a huge amount,
0:15:09 > 0:15:12but if you're on a fixed income then I think you should be
0:15:12 > 0:15:14quite realistic about what you charge them.
0:15:14 > 0:15:17And also, just work out some ground rules.
0:15:17 > 0:15:20You know, the person moving back into your home isn't the child
0:15:20 > 0:15:22that lived there when they were a teenager.
0:15:22 > 0:15:24But equally, they do need to have some rules
0:15:24 > 0:15:27so you can to have it sustainable on the longer term,
0:15:27 > 0:15:29and you don't all resent each other after a few weeks.
0:15:29 > 0:15:32Denise, can I ask, do you charge your children rent?
0:15:32 > 0:15:33Mine are still a little bit too young.
0:15:33 > 0:15:37But fast forward, when they are of an age where they can contribute,
0:15:37 > 0:15:40I think I would really expect that if they were living at home.
0:15:40 > 0:15:43I think your job is to parent, to educate,
0:15:43 > 0:15:45and contributing to the household finances,
0:15:45 > 0:15:47I think is a good thing for them.
0:15:47 > 0:15:50- I'm with you.- Even if you don't particularly want the money,
0:15:50 > 0:15:53like in Aubrey's case, still charge your son a reasonable amount
0:15:53 > 0:15:55and stick it in a pension fund for them, or a savings account.
0:15:55 > 0:15:57So you're giving it back to him,
0:15:57 > 0:15:59but taking it from him in the first place to teach them that value.
0:15:59 > 0:16:02- Oh, you are tough, aren't you, Dom? - Not half.
0:16:02 > 0:16:04Thanks, Sarah, thanks, Jenny.
0:16:04 > 0:16:05Now, we've all heard the saying,
0:16:05 > 0:16:08"One man's junk is another man's treasure."
0:16:08 > 0:16:11And that's very true of this next bunch, who are using modern
0:16:11 > 0:16:14technology to cash in on the old-fashioned car-boot sale.
0:16:16 > 0:16:19They were all the rage in the late '80s,
0:16:19 > 0:16:23and now car-boot sales are firmly back in fashion.
0:16:23 > 0:16:26Often mammoth weekend events with hundreds of stalls,
0:16:26 > 0:16:30there are few better places to hunt for hidden treasures.
0:16:30 > 0:16:33And the main appeal is that, for a few pounds,
0:16:33 > 0:16:37there's the tantalising thrill of finding a diamond in the rough.
0:16:37 > 0:16:40You can pick up some great bargains,
0:16:40 > 0:16:41absolute great bargains.
0:16:41 > 0:16:44I picked up a beautiful bowl about two months ago -
0:16:44 > 0:16:48it was an 1877 Coalbrookdale bowl for £2.
0:16:48 > 0:16:50It's been valued at 300-400.
0:16:50 > 0:16:53I enjoy coming to car-boot sales because I like meeting people
0:16:53 > 0:16:55and having a laugh and just getting out the house, really.
0:16:55 > 0:16:58People seem to think that it's everybody's sort of...
0:16:59 > 0:17:01..rubbish, but it's not.
0:17:01 > 0:17:04The treasures you can find are fantastic.
0:17:06 > 0:17:11An estimated £1.5 billion a year is spent at car-boot sales...
0:17:13 > 0:17:18..with the typical seller taking home £80 for every sale they attend.
0:17:18 > 0:17:21But these days, most of us sell our unwanted clutter through
0:17:21 > 0:17:24online auction sites.
0:17:24 > 0:17:27However, you can make a very tidy profit by combining the two,
0:17:27 > 0:17:32and selling on your car-boot sale bargains over the internet.
0:17:32 > 0:17:34To see how much cash you can make,
0:17:34 > 0:17:39we've enlisted the help of car boot fanatics, Nick, Caroline and Ken.
0:17:39 > 0:17:42All three turned their hobby into a full-time career.
0:17:43 > 0:17:47Nick Hills from Hertfordshire quit his job as a police officer
0:17:47 > 0:17:51to launch an online shop selling clothes, toys and games.
0:17:51 > 0:17:53Board games is a big thing for me.
0:17:53 > 0:17:56Whatever I can find that I know's got a margin.
0:17:56 > 0:17:59One of the best profit margins we ever made
0:17:59 > 0:18:03was a limited-edition Mariah Carey CD from the mid '90s.
0:18:03 > 0:18:07We put it on auction at, like, a couple of pounds,
0:18:07 > 0:18:09and when it finished it had got to well over 100.
0:18:10 > 0:18:15Caroline Matthews from Devon caught the online selling bug after
0:18:15 > 0:18:19the birth of her son and now sells vintage clothes and retro items.
0:18:19 > 0:18:23Anything I think I can buy and make a profit on is what I look for at
0:18:23 > 0:18:28car-boot sales. Last year I bought a job lot of video VHS cassettes
0:18:28 > 0:18:31for 99p, 300 of them,
0:18:31 > 0:18:33and I'm currently up to about £250.
0:18:35 > 0:18:37And Ken Chapman from Lancashire
0:18:37 > 0:18:41has been selling collectables and antiques since 2011.
0:18:41 > 0:18:44You never know what you're going to find. I bought a man's
0:18:44 > 0:18:48lifetime collection of playing cards and it filled my car up.
0:18:48 > 0:18:51I paid £50 for the job-lot at the auction -
0:18:51 > 0:18:54I've had about £3,500 back so far,
0:18:54 > 0:18:56and I've got another £2,000 worth still listed.
0:18:58 > 0:19:01Each of our volunteers have £50 to spend
0:19:01 > 0:19:03and a huge car-boot sale to browse.
0:19:03 > 0:19:07And it's not long before Nick spots a potential money-spinner.
0:19:08 > 0:19:10How much are these?
0:19:10 > 0:19:12Five each, 20 for all four.
0:19:12 > 0:19:14Would you take ten for the four?
0:19:14 > 0:19:17The lowest I would go is 15 for the four.
0:19:17 > 0:19:18OK.
0:19:19 > 0:19:22- How much do you want for these? - A pound.
0:19:22 > 0:19:23Cheers.
0:19:23 > 0:19:27Two of our buyers are straight out of the starting blocks,
0:19:27 > 0:19:30but Caroline is being careful with her cash,
0:19:30 > 0:19:32and being happy to haggle is a must.
0:19:32 > 0:19:35How much for the dress, please?
0:19:35 > 0:19:37Two? You'd take two?
0:19:37 > 0:19:39- How much are these?- Seven quid each.
0:19:39 > 0:19:40Seven quid each.
0:19:40 > 0:19:42Would you do 12 on them?
0:19:42 > 0:19:46- Yeah.- I know I can make money on those at £6 each.
0:19:46 > 0:19:47Cheers, that's great, that.
0:19:47 > 0:19:51From jam pots to toys and designer jackets...
0:19:51 > 0:19:52How much is your jacket, please?
0:19:52 > 0:19:5450p an item.
0:19:54 > 0:19:58..with bargain-hunters out in force, there's stiff competition
0:19:58 > 0:20:01to bag the items with the best reselling potential.
0:20:01 > 0:20:02Thank you very much.
0:20:02 > 0:20:04Fantastic, cheers.
0:20:04 > 0:20:05Cheers, thanks a lot.
0:20:09 > 0:20:12Once back home, our savvy sellers waste no time
0:20:12 > 0:20:16in getting their bargains online. And they're willing to share
0:20:16 > 0:20:19their secrets on how you can turn your car-boot purchase
0:20:19 > 0:20:21into a good earner.
0:20:21 > 0:20:24I've washed it, I've ironed it, I've put it onto the mannequin,
0:20:24 > 0:20:27and I'll be able to present it in the best possible light to sell it.
0:20:29 > 0:20:33It's really important to get as many quality pictures as you can, so the
0:20:33 > 0:20:37buyer can see exactly what they're getting and the condition of it.
0:20:37 > 0:20:39I've got to list them well with good descriptions -
0:20:39 > 0:20:40hopefully, they'll sell.
0:20:44 > 0:20:46We've given them three weeks
0:20:46 > 0:20:49to see if they can turn their purchases into profit.
0:20:50 > 0:20:54And there's good news if you fancy trying this at home.
0:20:54 > 0:20:58In the last budget it was announced that, from April 2017,
0:20:58 > 0:21:03individuals selling on auction sites can earn up to £1,000 tax-free.
0:21:03 > 0:21:07Meanwhile, with their three weeks up, let's see how much Nick,
0:21:07 > 0:21:10Caroline and Ken were able to make from selling
0:21:10 > 0:21:12their car-boot-sale bargains online.
0:21:14 > 0:21:16After deducting postage and selling fees,
0:21:16 > 0:21:20Nick made a total profit of £43.53.
0:21:20 > 0:21:23While Caroline's clothing sales earned her
0:21:23 > 0:21:27a very fashionable profit of £75.47.
0:21:27 > 0:21:29But less successful this time was Ken -
0:21:29 > 0:21:33who ended up with an £8.34 loss,
0:21:33 > 0:21:36which means it's Caroline who ends up on top.
0:21:36 > 0:21:40I'm really pleased to have won. It's great to have beaten both the boys
0:21:40 > 0:21:43and it just goes to show that if you spend time sourcing the right items
0:21:43 > 0:21:45and make them look good and list them well,
0:21:45 > 0:21:49there's money to be made from other people's rubbish.
0:21:52 > 0:21:55Now, I've been to the odd car-boot sale in my time, but I love
0:21:55 > 0:21:58finding bargains in shopping centres like this.
0:21:58 > 0:22:01Now, Paul, you're a consumer psychologist.
0:22:01 > 0:22:04Tell me, why is it that every time I come to places like this,
0:22:04 > 0:22:07I always end up with more than I bargained for?
0:22:07 > 0:22:11Malls are designed, really, as a sort of shopping machine, almost.
0:22:11 > 0:22:14They're designed to get you to make as many purchases as possible.
0:22:14 > 0:22:15You could come in the morning,
0:22:15 > 0:22:19you could spend half the day looking round the shops, then go for a meal,
0:22:19 > 0:22:22then go to the cinema - it's a whole day's experience.
0:22:22 > 0:22:25So they're specifically designed to make you part with your cash?
0:22:25 > 0:22:28Absolutely. If we look at one end, we've got a Debenhams store,
0:22:28 > 0:22:31at the other end, we've got a Selfridge's store.
0:22:31 > 0:22:32These are both destination stores.
0:22:32 > 0:22:35Someone will go into one of those stores then wander through
0:22:35 > 0:22:37the rest of the mall to the other destination store.
0:22:37 > 0:22:40When they're doing that they'll pass all these other shops which,
0:22:40 > 0:22:43you'll probably notice, none of them have got any doors on,
0:22:43 > 0:22:46cos that makes it nice and easy to just wander in and out,
0:22:46 > 0:22:48so you get more impulse buys out of people.
0:22:49 > 0:22:50With that in mind,
0:22:50 > 0:22:53I wanted to know how many of the shoppers today
0:22:53 > 0:22:56have been able to stick to what they came in to buy.
0:22:56 > 0:22:58Can you think of anything that you didn't intend to pick up?
0:22:58 > 0:23:00Stuff for myself, clothes for myself.
0:23:00 > 0:23:03What drew you to purchasing those things?
0:23:03 > 0:23:04- Greed.- I love it.
0:23:04 > 0:23:07If you're passing through, you're walking down this way,
0:23:07 > 0:23:09you might be tempted to buy something?
0:23:09 > 0:23:11- Yes.- Even if you don't need it?
0:23:11 > 0:23:13Yes.
0:23:13 > 0:23:16So you would say you're total impulse buyers.
0:23:16 > 0:23:20Oh, yeah, definitely, definitely impulse buyers.
0:23:20 > 0:23:24When I'm with my mum, I'll shop in the more expensive shops.
0:23:24 > 0:23:27When I'm on my own, I don't mind going in Primark.
0:23:27 > 0:23:29So you like to find a bargain, as well, then?
0:23:29 > 0:23:31Yeah, but when I'm with my mum, there's no need.
0:23:31 > 0:23:34If this is on telly, I didn't buy anything!
0:23:34 > 0:23:35- Honestly?- Honestly.
0:23:38 > 0:23:40You know that buzz you get when you buy something
0:23:40 > 0:23:42you really, really want?
0:23:42 > 0:23:45Well, it soon disappears if something goes wrong with it.
0:23:45 > 0:23:48And it seems our days of seething in silence are long gone because in a
0:23:48 > 0:23:52recent survey, complaints about poor products and bad service
0:23:52 > 0:23:54have gone up by 30%.
0:23:54 > 0:23:55And I'll tell you something -
0:23:55 > 0:23:57you wouldn't want to argue with this lot.
0:24:01 > 0:24:04I love to complain. Who doesn't love to complain?
0:24:04 > 0:24:05I can vouch for that.
0:24:05 > 0:24:08No, I don't... There's not really much point in complaining
0:24:08 > 0:24:11if you can do something about it and just move forward.
0:24:11 > 0:24:13People waste too much time complaining.
0:24:13 > 0:24:16If I'm not happy with a service, I'm the first to complain.
0:24:16 > 0:24:20But, on the flipside, as well, because I have worked in
0:24:20 > 0:24:24that kind of industry for a long time, if I get good service,
0:24:24 > 0:24:27I'm the kind of person that will phone up a company
0:24:27 > 0:24:29and say that I had really good service.
0:24:29 > 0:24:34I'm not shy. I will kind of tell people if something is wrong.
0:24:34 > 0:24:35I wouldn't cause a scene, though.
0:24:35 > 0:24:36I'd just kind of be like,
0:24:36 > 0:24:39"Look, something's not right, can we get it sorted out?"
0:24:39 > 0:24:42I think you had mouldy cheese one time at a restaurant...
0:24:42 > 0:24:44- We just don't go back. - ..and it tasted rank.
0:24:44 > 0:24:46Yeah, we just don't go back. But we never complain.
0:24:46 > 0:24:47If it's something I'd bought,
0:24:47 > 0:24:49though, then I'd complain and take it back.
0:24:49 > 0:24:53I love to complain also, and especially companies cos I find,
0:24:53 > 0:24:58if you make a complaint, they're pretty fond of acting on it.
0:24:58 > 0:25:01Say you've had some food and it wasn't up to the standards
0:25:01 > 0:25:03of how much it was, I'm going to say,
0:25:03 > 0:25:05"I haven't enjoyed this, it's not right."
0:25:05 > 0:25:09It was a parking zone run by the council outside a shop
0:25:09 > 0:25:12and I complained and they gave me a voucher back
0:25:12 > 0:25:15for the value of the fine. So it pays to complain.
0:25:15 > 0:25:18Yeah, I mean, how are they supposed to improve if you don't complain?
0:25:18 > 0:25:20That's the whole point, right?
0:25:22 > 0:25:26I'm here with Alex Hill in his rather unusual des res.
0:25:26 > 0:25:28And it is unusual, Alex, isn't it?
0:25:28 > 0:25:30It's all right, it's no different to anyone else's house.
0:25:30 > 0:25:33Oh, come on, it's a van.
0:25:33 > 0:25:36It's a big house, it's bigger than my usual London flat.
0:25:36 > 0:25:38This is actually your home, isn't it?
0:25:38 > 0:25:40Tell me how it all came about.
0:25:40 > 0:25:44Well, I was coming up to the end of my rental contract in London and I
0:25:44 > 0:25:46couldn't find a new flat for the minute,
0:25:46 > 0:25:48and I just bought the van instead.
0:25:48 > 0:25:51I met someone earlier who'd moved back home with her parents
0:25:51 > 0:25:54to save money. Surely that was an option for you, though, wasn't it?
0:25:54 > 0:25:57Unfortunately not - my parents live in the South of France,
0:25:57 > 0:25:59- so that would have been quite a big commute.- OK.
0:25:59 > 0:26:01You must be saving an absolute fortune.
0:26:01 > 0:26:04List all the things you're not having to pay for.
0:26:04 > 0:26:08Rent, water, electricity, heating, TV licence.
0:26:08 > 0:26:09Haircuts.
0:26:09 > 0:26:11Pfft. Should I get hair like yours, Dom?
0:26:11 > 0:26:14I tell you what, you'd save some money.
0:26:14 > 0:26:17All right, how much do you think you're saving on a monthly basis
0:26:17 > 0:26:19by living in here?
0:26:19 > 0:26:20£1,000 a month.
0:26:20 > 0:26:2212 grand a year - it's a lot of money.
0:26:22 > 0:26:24- It's a lot of money. - That's quite a saving.
0:26:24 > 0:26:27What's it actually aimed at? What are you going to do with the money?
0:26:27 > 0:26:30Well, I'm putting the van off the road next month,
0:26:30 > 0:26:32and spending six months cycling round Europe.
0:26:32 > 0:26:34So really this is just funding your lifestyle?
0:26:34 > 0:26:37- Yeah, basically.- There's got to be some downsides to this.
0:26:37 > 0:26:40How do you shower and how do you have a comfort break?
0:26:40 > 0:26:42Well, showering is very easy.
0:26:42 > 0:26:45One of my main things is I have to have a shower at least once a day,
0:26:45 > 0:26:48cos I like my showers. So shower at work five days a week,
0:26:48 > 0:26:53shower at climbing gyms, shower at swimming pools.
0:26:53 > 0:26:56Basically, do exercise and then go for a shower.
0:26:56 > 0:26:58And then, even on the way up here, M40 services.
0:26:58 > 0:27:00Where do you park your house?
0:27:00 > 0:27:03Just in residential streets, it's really not that difficult.
0:27:03 > 0:27:05Like every street, especially between boroughs -
0:27:05 > 0:27:07always got free parking.
0:27:07 > 0:27:08No complaints from the neighbours?
0:27:08 > 0:27:09Not yet.
0:27:09 > 0:27:12And what do people at work say, like your boss and your colleagues?
0:27:12 > 0:27:14They must find this a bit unusual.
0:27:14 > 0:27:16Yeah, I have had some interesting comments,
0:27:16 > 0:27:18but generally pretty positive.
0:27:18 > 0:27:20- The boss OK about it? - Yeah, he loves it.
0:27:20 > 0:27:22What advice would you give to anybody who's watching you
0:27:22 > 0:27:25and thinking, "Wow, I love that, I'm going to go for it?"
0:27:25 > 0:27:28Well, if you're young, adventurous and fancy a bit of a story,
0:27:28 > 0:27:32then it's great. If you're looking just to save money,
0:27:32 > 0:27:33it's probably not the best option.
0:27:33 > 0:27:35And I would imagine on top of that,
0:27:35 > 0:27:37a bit cold in the winter, bit lonely?
0:27:37 > 0:27:40- Pretty much, yeah.- Good luck to you, Alex, that's all I can say.
0:27:40 > 0:27:43Alex, thanks ever so much for your time. Now, I've got to get back
0:27:43 > 0:27:45and meet Denise. Is there any chance of a lift in your house?
0:27:45 > 0:27:47Yeah, of course, Dom, no problem.
0:27:51 > 0:27:54And while we head off, let's catch up with the Perch family,
0:27:54 > 0:27:57and find out if they've saved enough money to fund their retirement.
0:27:57 > 0:27:58Right, chocks away.
0:28:02 > 0:28:06The Perches from Stockport have grafted all their lives
0:28:06 > 0:28:08and have always used their cash to treat themselves
0:28:08 > 0:28:10and their family and friends.
0:28:10 > 0:28:13Aubrey has a passion for golf and fine foods,
0:28:13 > 0:28:16while Jane likes to indulge in eating out
0:28:16 > 0:28:19and buying herself loads of cheap and cheerful tops.
0:28:20 > 0:28:22He doesn't always notice the brand-new ones.
0:28:22 > 0:28:25I will quite often, if I go to Sainsbury's,
0:28:25 > 0:28:30find a top, and I put it in with... I buy it with my food shopping,
0:28:30 > 0:28:31and you never know.
0:28:32 > 0:28:34You never know, indeed.
0:28:34 > 0:28:38So far, Aubrey's pension and Jane's wages have enabled this family
0:28:38 > 0:28:41to afford their nice lifestyle and also help out their children.
0:28:41 > 0:28:44But their monthly income is about to change.
0:28:44 > 0:28:48Today is Jane's last day of work at the local school.
0:28:48 > 0:28:52- Aww.- Thank you very much, Jane, for everything you've done.
0:28:52 > 0:28:55And I wish you a long and happy retirement.
0:28:55 > 0:28:58Retiring is an emotional moment for Jane,
0:28:58 > 0:29:00but it's also a tricky time for the family.
0:29:00 > 0:29:04She's realised too late that her state pension payments
0:29:04 > 0:29:06won't start for another three years.
0:29:06 > 0:29:11That means that the family's income will drop by £400 a month.
0:29:11 > 0:29:13We're now at quite a crossroads.
0:29:13 > 0:29:18Until I finish work and I start getting my pensions,
0:29:18 > 0:29:21we're not quite sure how the future's going to be.
0:29:21 > 0:29:24Oh, you've even bought me a cake.
0:29:24 > 0:29:27Oh, look.
0:29:27 > 0:29:29Personal finance expert Sarah Pennells
0:29:29 > 0:29:31has already been busy,
0:29:31 > 0:29:35finding ways that Jane and Aubrey could save a total of £980 a year
0:29:35 > 0:29:37on their household bills.
0:29:37 > 0:29:39Sarah's now returned for another visit.
0:29:39 > 0:29:41With son Chris out at work today,
0:29:41 > 0:29:44she will tackle this family's extravagant spending.
0:29:44 > 0:29:47For starters, they stock up on too much food.
0:29:47 > 0:29:50Why have a freezer, when three would do?
0:29:50 > 0:29:52We've a freezer in the kitchen.
0:29:52 > 0:29:57We've got a tall freezer and then we've got a small chest freezer.
0:29:57 > 0:29:59If you buy meat, it tends to be a bit on bulk.
0:29:59 > 0:30:02- Yeah.- So we need space for that.
0:30:02 > 0:30:05Are you buying a cow at a time or something?
0:30:05 > 0:30:07Because if you've got a tall freezer, and another one,
0:30:07 > 0:30:11and one in your kitchen, that is buying in bulk, isn't it?
0:30:11 > 0:30:14We do have good stocks, I have to say.
0:30:14 > 0:30:16Yes, maybe we over-stock.
0:30:16 > 0:30:19The chest freezer is really handy because you just throw things in it.
0:30:19 > 0:30:21And you never find them again.
0:30:21 > 0:30:23- Exactly, yes.- Crikey.
0:30:23 > 0:30:25Three people live in the house.
0:30:25 > 0:30:27If they wanted, they could have a freezer each.
0:30:27 > 0:30:29What on earth do they keep in them?
0:30:30 > 0:30:34I feel like I'm in a freezer showroom. This is extraordinary.
0:30:34 > 0:30:36You've got a real collection here, haven't you?
0:30:36 > 0:30:39All our beef, mince, chicken, fish,
0:30:39 > 0:30:41and then pork and sausages.
0:30:41 > 0:30:43We do spend quite a bit on our fish.
0:30:43 > 0:30:46You'd be good in a siege, wouldn't you?
0:30:46 > 0:30:47- You'd be going for weeks.- Yeah!
0:30:47 > 0:30:50And not only are Aubrey and Jane over-buying food,
0:30:50 > 0:30:52they're running up a massive energy bill, too.
0:30:54 > 0:30:58This must be the equivalent of an American gas-guzzler or something.
0:30:59 > 0:31:01I don't know, but I have a feeling
0:31:01 > 0:31:05that might be just slurping away energy all the time.
0:31:05 > 0:31:07Do you actually need this one?
0:31:08 > 0:31:09- Probably not.- No.
0:31:10 > 0:31:12That's very good news.
0:31:12 > 0:31:15We've calculated that unplugging just this one beast,
0:31:15 > 0:31:17will save the Perches
0:31:17 > 0:31:19£40 a year in electricity.
0:31:19 > 0:31:23But Sarah still needs to tackle their massive food bill.
0:31:23 > 0:31:26This family likes to treat themselves to their favourite meals.
0:31:27 > 0:31:32The Perches spend a mouthwatering £320 a month on posh nosh.
0:31:33 > 0:31:37But Sarah has found a tasty way to save money here, too.
0:31:39 > 0:31:42Right, Jane and Aubrey, you didn't realise it was breakfast time again,
0:31:42 > 0:31:46- did you?- No, we didn't. - A bit of a taste test.
0:31:46 > 0:31:50By opting for cheaper brands, this couple could save hundreds.
0:31:50 > 0:31:53Sarah has lined up two cereal bowls - one containing
0:31:53 > 0:31:57Jane's favourite cereal, the other a much cheaper brand.
0:31:57 > 0:31:59Will they be able to tell them apart?
0:32:00 > 0:32:03There we are, right, so let's have a go.
0:32:03 > 0:32:04Dig in.
0:32:06 > 0:32:09Now, obviously, Jane's a real connoisseur. But we don't want you
0:32:09 > 0:32:12to feel left out, Aubrey, so we'll let you have a bit as well.
0:32:12 > 0:32:14What do you reckon? Which one do you prefer?
0:32:14 > 0:32:16This one.
0:32:16 > 0:32:18- What about you? - Just about that one.
0:32:18 > 0:32:20This one's just a little bit sweeter,
0:32:20 > 0:32:22but that's perfectly, perfectly good.
0:32:22 > 0:32:24Well, you guessed right - the one that you picked
0:32:24 > 0:32:26is the more expensive brand.
0:32:26 > 0:32:28It is the one that you prefer.
0:32:28 > 0:32:30But I don't know if you know the price difference.
0:32:30 > 0:32:35This one here, for a box, costs £2.85.
0:32:35 > 0:32:38The cheaper alternative costs 89p.
0:32:38 > 0:32:41No! 89p?!
0:32:41 > 0:32:42So now do you prefer this one?
0:32:42 > 0:32:44- Yes!- Yes, indeed.
0:32:44 > 0:32:48At more than triple the price, I think Sarah's proved her point.
0:32:48 > 0:32:50Next up, carrot soup.
0:32:50 > 0:32:52Get your laughing gear round that, Aubrey.
0:32:53 > 0:32:55So which one do you prefer out of these two, then?
0:32:56 > 0:33:00- That one.- So you're both quite sure, this one?
0:33:00 > 0:33:03Not a lot in it, but, yeah, that one.
0:33:03 > 0:33:05That would be my choice, yeah, definitely.
0:33:05 > 0:33:08This one's actually from the cheaper supermarket.
0:33:08 > 0:33:13If I tell you what the price difference is - this one is £1.89.
0:33:13 > 0:33:14This one is 85p.
0:33:16 > 0:33:18At more than double the cost,
0:33:18 > 0:33:21I reckon the Perches will be going for the less pricey one from now on.
0:33:23 > 0:33:26And the ham, and again, here, you preferred the cheaper ham.
0:33:26 > 0:33:28The more expensive ham, £2.99.
0:33:28 > 0:33:30The cheaper ham, half price -
0:33:30 > 0:33:32£1.45.
0:33:32 > 0:33:35- Goodness.- Tastes better and you get some change in your pocket, as well.
0:33:35 > 0:33:36Yeah.
0:33:36 > 0:33:38Absolutely amazing, isn't it?
0:33:38 > 0:33:43If the Perches steer their trolley away from expensive products
0:33:43 > 0:33:46and start exploring the lower-cost brands and stores,
0:33:46 > 0:33:49they could save up to £2,000 a year.
0:33:51 > 0:33:55And now Sarah's spotted a way for the Perches to make some money,
0:33:55 > 0:33:59and all it needs is for Aubrey to turn one of his hobbies
0:33:59 > 0:34:01into a nice little earner.
0:34:01 > 0:34:04I do most around here. Things like, if something needs
0:34:04 > 0:34:07cleaning or taking down or whatever, like,
0:34:07 > 0:34:10say, a lawnmower or something like that, I'll come in here,
0:34:10 > 0:34:12stick it on the bench, strip it down, clean it,
0:34:12 > 0:34:14then put it back together again.
0:34:14 > 0:34:17And I sort of enjoy... We call it bumbling.
0:34:17 > 0:34:19But your bumbling sounds quite efficient,
0:34:19 > 0:34:22and like it might actually be something you could capitalise on.
0:34:22 > 0:34:25Yeah, it's something I've certainly thought about.
0:34:25 > 0:34:29I reckon our Aubrey can make a very handy handyman.
0:34:29 > 0:34:32So with some business cards freshly printed,
0:34:32 > 0:34:35he and Sarah take to the high street to start drumming up trade.
0:34:35 > 0:34:39Aubrey's not alone in wanting to keep busy after retirement -
0:34:39 > 0:34:43almost 1,000,000 people in Britain now work past the age of 65.
0:34:45 > 0:34:48I'm starting a firm, a handyman business,
0:34:48 > 0:34:50and I want to put the cards in certain shops. I just wonder if
0:34:50 > 0:34:53you'd be kind enough to let me put it one in your window.
0:34:53 > 0:34:55Yeah, sure.
0:34:55 > 0:34:59If Aubrey earns just £10 for every job he does,
0:34:59 > 0:35:03even two jobs a week could top up the household income
0:35:03 > 0:35:06by a tidy sum of £80 a month.
0:35:06 > 0:35:09That's £960 a year.
0:35:09 > 0:35:11Now for the serious bit.
0:35:11 > 0:35:14Taking out public liability insurance is recommended,
0:35:14 > 0:35:18and you might need to declare the income to the taxman.
0:35:18 > 0:35:21Do you think that this idea could actually be
0:35:21 > 0:35:23quite a nice little earner for you in your retirement?
0:35:23 > 0:35:27Yeah, I think it could certainly supply the amount of work
0:35:27 > 0:35:29I'd wish to get involved in with it.
0:35:29 > 0:35:31And if it moves on from there, well, so be it.
0:35:31 > 0:35:34If it doesn't, and it supplies me with what I want,
0:35:34 > 0:35:35that's absolutely perfect.
0:35:35 > 0:35:38You'll have your own empire before too long.
0:35:38 > 0:35:41But while Aubrey is busy trying to make money,
0:35:41 > 0:35:45up the road, Jane is busy spending it, at this restaurant.
0:35:45 > 0:35:47Time for a Pennells intervention.
0:35:48 > 0:35:51- Hello, Jane.- Hello, Sarah.
0:35:51 > 0:35:53You told me about these regular lunches with your friends.
0:35:53 > 0:35:56Do you mind if I ask how much do you spend, roughly,
0:35:56 > 0:35:59when you meet for lunch?
0:35:59 > 0:36:02About 15... It depends if we're having a drink or not,
0:36:02 > 0:36:05but generally about 15-20.
0:36:05 > 0:36:09With their family income down by £400 a month now Jane is retired,
0:36:09 > 0:36:12can she still afford to eat out this much?
0:36:13 > 0:36:16Is this something that you would think about giving up on
0:36:16 > 0:36:17or cutting down on?
0:36:17 > 0:36:22I think I want to keep doing it, cos there's no point,
0:36:22 > 0:36:25if you're cutting back to such an extent that you can't go out
0:36:25 > 0:36:27and enjoy yourself and meet up with your friends.
0:36:27 > 0:36:29That's the point of life, really, isn't it?
0:36:29 > 0:36:31So, no, probably wouldn't.
0:36:31 > 0:36:33Well, there's a vote of confidence for you, cos Jane obviously thinks
0:36:33 > 0:36:36you're worth spending money on, so that's good.
0:36:36 > 0:36:39Fair enough. Sarah's not going to get between this woman and her
0:36:39 > 0:36:44ladies' lunches. But there is one area where Jane may be prepared
0:36:44 > 0:36:49to negotiate some cuts - her constant spending on new tops.
0:36:49 > 0:36:52So, Jane, show me what's in this wardrobe.
0:36:52 > 0:36:54It's a lot of tops.
0:36:55 > 0:36:57Good grief.
0:36:58 > 0:37:00A lot of colour-coordinated tops.
0:37:00 > 0:37:02I have to, otherwise I'd never find them all.
0:37:02 > 0:37:03How many tops have you got?
0:37:03 > 0:37:05I've no idea, I've never had a count.
0:37:05 > 0:37:07So these are all the tops you have?
0:37:07 > 0:37:09No. I do have more.
0:37:09 > 0:37:12Show me. Show me where your other tops are.
0:37:12 > 0:37:15Blue and green. Different colours.
0:37:15 > 0:37:16These are the pink.
0:37:16 > 0:37:18These are the yellows and peaches.
0:37:18 > 0:37:21In each drawer, you've probably got 30 tops.
0:37:21 > 0:37:22That's an impressive collection.
0:37:22 > 0:37:24I do wear them all.
0:37:24 > 0:37:26Some of these may be as cheap as chips,
0:37:26 > 0:37:30but it all adds up to thousands of pounds spent on Jane's tops.
0:37:30 > 0:37:33But she's not the only one who loves clothes shopping.
0:37:33 > 0:37:37In Britain, we buy four times as much clobber as we did in 1980.
0:37:39 > 0:37:42I do know that I do need to cut down.
0:37:42 > 0:37:44Do you know how much you might be able to save
0:37:44 > 0:37:47and still feel reasonably OK about it?
0:37:47 > 0:37:50Well, I'm cutting down anyway at the moment,
0:37:50 > 0:37:54but I would probably say a good £50 a month, I could...
0:37:54 > 0:37:56- As much as that?- Yes.- Wow.
0:37:56 > 0:38:00That's brilliant. So you could still buy some new clothes,
0:38:00 > 0:38:02but you'd save £50 a month.
0:38:02 > 0:38:03- Yes, yes.- £600 a year.
0:38:03 > 0:38:06That's not bad going. It might raise more money than you think.
0:38:06 > 0:38:07Very good work, Sarah.
0:38:07 > 0:38:11If Jane can stick to her plan and reduce the urge to shop,
0:38:11 > 0:38:14the £600 a year saved will be a good contribution to
0:38:14 > 0:38:18their retirement pot. So, with Sarah's work done and dusted,
0:38:18 > 0:38:20have we saved the Perches enough money
0:38:20 > 0:38:24to secure them a comfortable retirement?
0:38:24 > 0:38:27Cutting back on their food and clothes spend and switching to
0:38:27 > 0:38:30a new TV and telephone package, plus installing a water meter
0:38:30 > 0:38:34and unplugging their big freezer could save them a small fortune.
0:38:34 > 0:38:37And if Aubrey's handyman business takes off,
0:38:37 > 0:38:42they stand to save a grand total of £4,580,
0:38:42 > 0:38:48which is just a whisker away from the £4,800 a year income the couple
0:38:48 > 0:38:50have lost by Jane retiring.
0:38:50 > 0:38:54Without too much effort, we've cut down our costs,
0:38:54 > 0:38:56and it's made a difference.
0:38:56 > 0:38:57And it will make a difference now, for good,
0:38:57 > 0:39:00because we're thinking along those lines all the time.
0:39:00 > 0:39:02Knowing we've saved some of the money, and we can see it
0:39:02 > 0:39:05at the end of every month, just makes us more relaxed.
0:39:05 > 0:39:07We can enjoy our retirement more,
0:39:07 > 0:39:10knowing that we're doing everything we can to help the situation.
0:39:10 > 0:39:13And that money can be spent on us.
0:39:18 > 0:39:21And the lovely Jane and Aubrey are here, along with Sarah.
0:39:21 > 0:39:24Now, it's been a few weeks since we've seen you,
0:39:24 > 0:39:26and you've been very good, I hope.
0:39:26 > 0:39:28- Still smiling.- Still smiling.
0:39:28 > 0:39:31The question is, have you managed to save some cash?
0:39:31 > 0:39:36Yeah, we have. It's amazing how much you can save from just reassessing
0:39:36 > 0:39:40your contracts, reassessing how you shop,
0:39:40 > 0:39:43just reassessing your whole lifestyle, really,
0:39:43 > 0:39:47and also Aubrey's stopped me going out to the shops completely.
0:39:47 > 0:39:49Oh, you're a brave man, Aubrey, aren't you?
0:39:49 > 0:39:52Brave indeed. How's your little business venture going?
0:39:52 > 0:39:55Yeah, OK. I've had some good feedback,
0:39:55 > 0:39:57and I'm hoping that's going to bring some customers in,
0:39:57 > 0:39:59and just let it snowball from there.
0:39:59 > 0:40:02So a lot of women have found themselves in a similar situation
0:40:02 > 0:40:05to Jane, with the rise in the age of the state pension.
0:40:05 > 0:40:07What advice would you give them?
0:40:07 > 0:40:09I think it's really difficult cos there are only two options -
0:40:09 > 0:40:11one is to try and spend less, which, obviously,
0:40:11 > 0:40:13Jane and Aubrey are managing.
0:40:13 > 0:40:15The other is to try and increase your income.
0:40:15 > 0:40:19But, for a lot of women, they didn't actually have much notice
0:40:19 > 0:40:21about their state pension age rise and, actually,
0:40:21 > 0:40:23getting a job may be quite difficult.
0:40:23 > 0:40:27So if you can make those cutbacks, no matter how small, it will help.
0:40:27 > 0:40:28How are you keeping yourself busy?
0:40:28 > 0:40:31Well, it's only been a couple of weeks, so...
0:40:33 > 0:40:35- ..I've been very busy.- Doing what?
0:40:35 > 0:40:38Well, doing all the things that you say, "When I retire,
0:40:38 > 0:40:41"I am going to do this, that and the other."
0:40:41 > 0:40:42And I've been doing those.
0:40:42 > 0:40:44- Is the list long?- Reasonably long.
0:40:44 > 0:40:48- Good for you.- I've been, like, clearing out wardrobes and...
0:40:48 > 0:40:50Stopping buying the tops.
0:40:50 > 0:40:53I'm not replacing the tops, yes.
0:40:53 > 0:40:54Music to my ears, I have to say.
0:40:54 > 0:40:56I thought you'd like it.
0:40:56 > 0:40:57Even though you must be tempted -
0:40:57 > 0:41:00you're in Birmingham, there's some glorious shops.
0:41:00 > 0:41:01What do you think?
0:41:01 > 0:41:04I can't believe how fabulous the shops are around here.
0:41:04 > 0:41:07So I would have gone in, but Sarah's here to stop me.
0:41:07 > 0:41:09- I'm watching you.- Yes.
0:41:09 > 0:41:12Now, Aubrey, I've got to ask, have you put Chris' rent up yet?
0:41:13 > 0:41:16Well, we were thinking of putting his rent up,
0:41:16 > 0:41:19but he's now decided he's going to go touring for about three months,
0:41:19 > 0:41:21so he's not even going to be there to pay the rent.
0:41:21 > 0:41:25Oh, no. You'll be £12 a week out of pocket, won't you?
0:41:25 > 0:41:26How are you going to cope?
0:41:26 > 0:41:29It's going to be a battle, but we'll get through.
0:41:29 > 0:41:31- You'll have to get a paper round. - Yes.
0:41:31 > 0:41:32Thanks a lot, guys.
0:41:32 > 0:41:35Now, if you'd like Sarah or any of our experts to help save you
0:41:35 > 0:41:37some money, drop us an e-mail at...
0:41:41 > 0:41:46And you can find more tips to sort out your finances on our website.
0:41:46 > 0:41:49We've teamed up with the Money Advice Service to bring you
0:41:49 > 0:41:52easy-to-use money-saving tools to plan your budgets,
0:41:52 > 0:41:56calculate the cost of your car or credit cards and give your money
0:41:56 > 0:41:58a complete health check.
0:41:58 > 0:41:59Download them at...
0:42:03 > 0:42:07..where you can also take our interactive spending test and you'll
0:42:07 > 0:42:10find plenty more tips and advice to keep your finances on track.
0:42:17 > 0:42:20Now, Sarah Pennells is still with us. I've got to say,
0:42:20 > 0:42:23I feel like I'm in the middle of a set of traffic lights here.
0:42:23 > 0:42:25Now, we've got some questions from people we met today
0:42:25 > 0:42:26which we'd like you to answer.
0:42:26 > 0:42:28First up, we've got Elizabeth from Solihull,
0:42:28 > 0:42:31and she's 62 and still working.
0:42:31 > 0:42:35She's been told she won't be able to retire until she's 65½.
0:42:35 > 0:42:37She wants to know, why is this,
0:42:37 > 0:42:40and are there any other benefits she can claim?
0:42:40 > 0:42:41Well, Elizabeth, like Jane,
0:42:41 > 0:42:43is one of the hundreds of thousands of women,
0:42:43 > 0:42:44as we were hearing earlier,
0:42:44 > 0:42:47who've been caught up in this rise in state pension age.
0:42:47 > 0:42:50The bad news is that the only benefits that she'd be able to claim
0:42:50 > 0:42:53are things like Jobseeker's Allowance,
0:42:53 > 0:42:55and after a certain period of time,
0:42:55 > 0:42:58if she's married, her husband's income will be taken
0:42:58 > 0:43:02into account and also if she has savings, so the benefits that people
0:43:02 > 0:43:04in her situation can claim are quite limited.
0:43:04 > 0:43:08Julie from Tamworth says her and her boyfriend are trying
0:43:08 > 0:43:10to save up for a house. They don't have great incomes,
0:43:10 > 0:43:11and they're finding it a struggle.
0:43:11 > 0:43:14Would having a joint account make it any easier?
0:43:14 > 0:43:16Before you answer that, Denise has got her own opinion, haven't you?
0:43:16 > 0:43:19Julie, stay independent.
0:43:19 > 0:43:22Now let's listen to what the expert's got to say. Sarah?
0:43:22 > 0:43:23I would say,
0:43:23 > 0:43:25whether or not they have a joint account at this stage,
0:43:25 > 0:43:27isn't going to make a massive amount of difference.
0:43:27 > 0:43:31Any mortgage lender would look at both their incomes when they came to
0:43:31 > 0:43:34apply for a mortgage. The two bits of advice I would give Julie is,
0:43:34 > 0:43:38first of all, to think about getting the government's Help To Buy ISA,
0:43:38 > 0:43:41because then you get a government top-up if you save a certain amount,
0:43:41 > 0:43:45and secondly, a good six months before they want to apply for
0:43:45 > 0:43:48a mortgage, to check their credit record and their credit rating.
0:43:48 > 0:43:51If there are any nasties, things they didn't know about,
0:43:51 > 0:43:53or any mistakes, they've got time to put them right.
0:43:53 > 0:43:56Great advice, Sarah, thank you. Well, that's it from us. Just enough
0:43:56 > 0:43:59time to say thank you to Sarah and everybody else who joined us today.
0:43:59 > 0:44:02And not forgetting the good people of Birmingham -
0:44:02 > 0:44:03you didn't let me down.
0:44:03 > 0:44:05So until the next time, its goodbye from us.
0:44:05 > 0:44:06Goodbye.