Episode 4 Right on the Money


Episode 4

Similar Content

Browse content similar to Episode 4. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Whether you're a spender or a saver,

0:00:020:00:04

we could all do with knowing how to make the most of our cash.

0:00:040:00:08

So we've found simple advice for you to do just that, and taken it

0:00:090:00:13

to towns and cities right across Britain.

0:00:130:00:15

Whatever help you need with your finances, we are Right On The Money.

0:00:170:00:21

Hello, and welcome to Right On The Money,

0:00:230:00:25

the series that's all about bolstering your bank account

0:00:250:00:28

without putting in too much effort.

0:00:280:00:30

Today, we are in Nottingham, home of Robin Hood

0:00:300:00:32

and his Merry Men who were dab hands at getting hold of money themselves.

0:00:320:00:36

But don't worry, we're not going to advise you to rob from the rich

0:00:360:00:39

to give to the poor.

0:00:390:00:40

But here's what you can expect on today's programme...

0:00:400:00:42

She can carry a tune, but are her finances hitting the wrong note?

0:00:440:00:48

We'll see if we can get this busy mum closer to buying her own home.

0:00:480:00:52

Because anything is possible when you believe it is.

0:00:520:00:56

And I believe that owning my own property is achievable.

0:00:560:01:01

And as we look at why loyalty doesn't pay,

0:01:010:01:04

the people of Nottingham

0:01:040:01:06

tell us exactly what they think about companies

0:01:060:01:09

who charge us too much.

0:01:090:01:10

We're supporting you, we're bringing money

0:01:100:01:12

into your business, stop treating us like idiots.

0:01:120:01:15

Now, Nottingham is also a city of invention.

0:01:180:01:20

Traffic lights, tarmac, HP sauce

0:01:200:01:23

and ibuprofen all came from here.

0:01:230:01:25

Now, every new idea could do with a bit of encouragement,

0:01:250:01:28

but coming up next is a mum who is a whizz at giving other

0:01:280:01:32

people motivation but could do with a bit of it herself

0:01:320:01:35

when it comes to securing her financial future.

0:01:350:01:39

This is Wonder Woman Yvonne,

0:01:390:01:41

a high-achieving entrepreneur, always on the go,

0:01:410:01:44

from the odd bit of hairdressing...

0:01:440:01:47

Your hair's really grown since the last time I saw you.

0:01:470:01:50

..to running a life coaching and motivational speaking business...

0:01:500:01:54

You've got a dream. Make it happen. It's up to you.

0:01:540:01:58

..and training a very successful gospel choir.

0:01:580:02:02

# That tonight's going to be a good night... #

0:02:020:02:05

Yvonne makes the most of every opportunity that comes her way, and

0:02:050:02:09

one reason why she's so driven is the tough life she had growing up.

0:02:090:02:14

I'm one of five siblings and my mother died when I was 11 years old.

0:02:140:02:18

When she died, everything fell apart.

0:02:180:02:21

And then I left home at 15. Then I lived

0:02:210:02:24

on the streets for a few days, so I've experienced homelessness.

0:02:240:02:29

Slowly, Yvonne got her life back on track and started a family.

0:02:290:02:33

She's determined to ensure her three kids don't miss out on the things

0:02:330:02:37

she didn't have, but while she's helped her sons buy their

0:02:370:02:41

first home, she's never got on the property ladder herself.

0:02:410:02:45

I'm a single parent. I'm a small-business owner.

0:02:450:02:49

How can I buy a house?

0:02:490:02:51

You know, I've had debt problems in the past as well,

0:02:510:02:55

so how can somebody like me

0:02:550:02:57

buy a house? And I just thought it wasn't something that I could do.

0:02:570:03:02

So, the moment has arrived for Yvonne

0:03:020:03:04

to get her own house in order.

0:03:040:03:06

And under the government's Right to Buy scheme, she'd love to

0:03:060:03:09

finally buy the council house she's rented for the past 15 years.

0:03:090:03:13

It's scary, don't get me wrong,

0:03:150:03:17

I've never done this before, but I'm ready to rock and roll.

0:03:170:03:21

Ready to give it my best.

0:03:210:03:23

Also ready to rock and roll

0:03:230:03:24

is personal finance expert Simon Read

0:03:240:03:27

who's on a mission to keep Yvonne's cash flow on the right track.

0:03:270:03:31

What do you need to do to be able to buy your own home?

0:03:320:03:36

Um, I think I need to really just be able to afford it.

0:03:360:03:40

THEY LAUGH

0:03:400:03:43

Yeah, and believe that I can.

0:03:430:03:44

Cos it was something that I didn't believe that I could ever do.

0:03:440:03:48

And you ended up homeless for a time as well?

0:03:480:03:50

-So having a home is really important to you.

-Definitely.

0:03:500:03:53

Definitely, definitely, definitely.

0:03:530:03:56

You know, it's the thought of losing my home is the worst thought ever.

0:03:560:04:03

-I think I probably fear that more than death.

-Well, Yvonne,

0:04:030:04:08

fortunately, this personal finance expert has a plan to

0:04:080:04:11

give your house deposit a good kick-start.

0:04:110:04:14

He's found a way you can make some easy money

0:04:140:04:18

literally on your own doorstep.

0:04:180:04:20

Yvonne's got not one, not two,

0:04:210:04:24

but three parking spaces she could potentially rent out.

0:04:240:04:28

And as she lives round the corner from Luton airport,

0:04:280:04:31

there should be no shortage of takers.

0:04:310:04:33

Ka-ching!

0:04:330:04:34

-Did you know you can make money out of car-parking spaces?

-No, I didn't.

0:04:360:04:40

-LAUGHS:

-Sounds odd, doesn't it?

-Yes, it does.

0:04:400:04:42

You know, if you have a free car-parking space, you can

0:04:420:04:45

-effectively rent it out.

-Really?

-Yeah.

0:04:450:04:47

-Now, you're quite near to an airport.

-I am. And a train station.

0:04:470:04:50

And a train station. We've talked to an online agency

0:04:500:04:52

which manages these things

0:04:520:04:54

and knows the prices and how much you could charge.

0:04:540:04:57

They reckon that you could get...

0:04:570:04:59

-Are you ready for this?

-I'm grounding myself.

0:04:590:05:02

For these two car parking spaces, you could earn...

0:05:020:05:05

-£2,000 a year.

-Really?

0:05:050:05:07

£2,000 a year for something you've already got, you don't

0:05:070:05:10

have to do anything else, you sign up with an agency,

0:05:100:05:12

-they sort it all out for you.

-That would be brilliant.

0:05:120:05:15

And do you know, there's lots of ways where you can make extra

0:05:150:05:17

money actually by doing very little?

0:05:170:05:19

Yeah. I like this idea. I really like it.

0:05:190:05:23

So, Yvonne could be set to

0:05:230:05:25

rake in an extra £2,000 a year

0:05:250:05:28

by renting out two parking spaces.

0:05:280:05:30

Because the council currently owns the house, if she wants to do

0:05:300:05:34

it straight away, she'd have to check with them first.

0:05:340:05:37

But if she achieves her goal of buying the property,

0:05:370:05:40

that extra cash could soon be in her pocket.

0:05:400:05:43

Let's see if we can get her even closer to affording that deposit.

0:05:450:05:50

Juggling her busy workload takes a lot of effort and coordination,

0:05:500:05:53

and to do that, Yvonne likes to get out of her house

0:05:530:05:56

and plough through it all in the local cafe.

0:05:560:05:59

Why go to a cafe, Yvonne?

0:06:010:06:02

It's a nice, peaceful place so I can get a lot done.

0:06:020:06:06

So when you go to work in a cafe, even though

0:06:060:06:08

you're paying nothing to sit in the cafe,

0:06:080:06:11

-you're paying for your refreshments, for any food you buy...

-Yes.

0:06:110:06:15

-So, that gets quite expensive, doesn't it?

-It can do.

0:06:150:06:18

-If you are spending £20 a week in a cafe every week...

-Yeah.

0:06:180:06:22

..that's £1,000 a year.

0:06:220:06:24

-Wow.

-It's a lot of money, isn't it?

0:06:240:06:26

-It is.

-A lot of money just for the convenience of sitting in a cafe.

0:06:260:06:29

-What I'm going to suggest to you is we find somewhere else...

-OK.

0:06:290:06:32

..where you can get a nice location.

0:06:320:06:35

-There's other things going on, but you don't have to pay anything.

-Ah.

0:06:350:06:38

OK. I'm up for that, that sounds good.

0:06:380:06:41

I didn't realise that it would be that big a spend.

0:06:410:06:47

Ah, but fear not.

0:06:470:06:50

Simon's got just the place to work without spending any money.

0:06:500:06:54

The local library.

0:06:540:06:55

And if you're worried that that might be a bit stuffy, well,

0:06:550:06:58

a chat with head librarian Alex

0:06:580:07:01

reveals just how much libraries have changed.

0:07:010:07:04

So, Alex, what can the library offer somebody like me

0:07:040:07:08

who need quiet-ish space and to do my normal daily work.

0:07:080:07:14

What we try to do is obviously make it a welcoming environment.

0:07:140:07:17

It's still free access for everybody,

0:07:170:07:18

so you aren't getting charged for anything.

0:07:180:07:20

My experience of libraries is like ,"Shh. Keep quiet."

0:07:200:07:24

We are trying to get rid of the shoosh code.

0:07:240:07:26

Obviously, we do know that some customers still want a quiet

0:07:260:07:29

area to study, to relax, and take time out,

0:07:290:07:32

so we do have a designated area for that,

0:07:320:07:34

but the majority of the library,

0:07:340:07:35

the first two floors are available to talk and things like that.

0:07:350:07:38

That's really, really good. It will be quite handy for somebody like me.

0:07:380:07:42

Hang on a second, with a motivational speaking business

0:07:420:07:45

and a gospel choir to orchestrate,

0:07:450:07:47

Yvonne's mobile phone hardly stops ringing.

0:07:470:07:50

Isn't that a no-no in a library?

0:07:500:07:52

What is the policy on phones ringing?

0:07:520:07:54

I'm quite happy for a phone to ring.

0:07:540:07:56

If you're in the quiet room or in a designated quiet study area,

0:07:560:07:59

we would ask you to take that call downstairs in the more social area.

0:07:590:08:03

You can even take your food and drink into these social areas.

0:08:030:08:06

So if Yvonne brought her own lunch,

0:08:060:08:08

she could slash her annual

0:08:080:08:11

spend by about £700.

0:08:110:08:13

On top of that, while she's here,

0:08:130:08:15

Yvonne spots another potential saving.

0:08:150:08:18

She regularly holds motivational seminars, so could the library's

0:08:180:08:22

conference rooms work out cheaper than the usual venue she rents?

0:08:220:08:26

How much is it for, say, two hours?

0:08:260:08:29

How much would it cost me to hire your facilities?

0:08:290:08:32

It's rented on an hourly basis, so a two-hour basis would be £25.

0:08:320:08:36

This is obviously cheaper the more hours you would have as well.

0:08:360:08:39

Wow. That's half of what Yvonne currently pays.

0:08:390:08:43

And as she's planning to expand her business, switching to the library

0:08:430:08:47

would save around £600 a year

0:08:470:08:48

if she held two seminars a month.

0:08:480:08:51

Simon catches up with Yvonne

0:08:540:08:55

in the library's theatre to find out what she thinks.

0:08:550:08:59

And it looks like the bright lights have gone to his head.

0:08:590:09:02

So here we are, ladies and gentlemen, boys and girls,

0:09:020:09:06

but most of all, Yvonne.

0:09:060:09:08

-You're still at the library...

-Yeah.

-..in this wonderful theatre space,

0:09:080:09:12

-what have you learned today?

-You get free Wi-Fi.

-Free Wi-Fi.

0:09:120:09:16

The rates are quite cheap as well in terms of

0:09:160:09:19

-if I wanted to have a conference.

-Yes, there's conference rooms.

0:09:190:09:21

There's conference rooms. There's this beautiful theatre.

0:09:210:09:24

-There are areas that I can speak in.

-Yeah.

-I can answer my phone.

-Yeah.

0:09:240:09:29

My phone can ring in the library.

0:09:290:09:31

So you can take business calls,

0:09:310:09:33

-deal with the pressing needs of the day.

-Definitely.

0:09:330:09:37

Libraries across the country have had to adapt and change

0:09:370:09:40

in the past few years,

0:09:400:09:42

so it's worth checking out what the ones in your area have got to offer.

0:09:420:09:46

It's pretty much a very cool place AND, the most important thing,

0:09:460:09:50

it's for half the cost.

0:09:500:09:52

So you can save an awful lot of money by coming here rather

0:09:520:09:55

-than going to the cafes.

-Yes.

0:09:550:09:57

-Definitely.

-So, the question is, Yvonne,

0:09:570:10:00

-will you do it?

-Yes, I will.

0:10:000:10:04

For Yvonne, using the local library as a workplace as well as a base

0:10:040:10:08

for her expanding business would give another £1,300

0:10:080:10:12

towards her deposit.

0:10:120:10:13

And there are more savings to be made even closer to home.

0:10:150:10:18

Because Yvonne is so busy building up her business

0:10:200:10:23

and running her gospel choir,

0:10:230:10:25

it doesn't leave much time for cooking elaborate family meals.

0:10:250:10:29

As a result, she often goes for convenience,

0:10:290:10:32

spending nearly £2,000 a year on takeaways.

0:10:320:10:36

But Yvonne and her daughter, Thea...

0:10:360:10:37

-Hello, ladies.

-Hi!

0:10:370:10:40

..are about to find out how easily

0:10:400:10:42

and cheaply anyone can knock up

0:10:420:10:45

a tasty and quick family meal at home.

0:10:450:10:48

Showing them the way is celebrity chef Aldo Zilli.

0:10:480:10:51

I'm here today to explain to you and show you some short cuts

0:10:510:10:56

-into making great food with very little money.

-OK.

0:10:560:11:01

-Are you up for that?

-I'm absolutely up for that.

0:11:010:11:04

As Yvonne rustles up a quick sauce, Aldo demonstrates

0:11:040:11:07

just how easy it is to make pasta from scratch in minutes.

0:11:070:11:12

I've got my eggs and my flour.

0:11:130:11:17

I've put olive oil in here

0:11:170:11:19

and a little bit of salt.

0:11:190:11:20

Seems a doddle so far.

0:11:200:11:22

And you keep your rolling pin in the freezer.

0:11:240:11:26

It's always good, so it doesn't stick anywhere.

0:11:260:11:29

Now, I'm no Cordon Bleu chef,

0:11:290:11:31

but that's definitely starting to look like pasta to me.

0:11:310:11:34

So there's the shape. Very rustically cut.

0:11:360:11:39

OK? Don't need to dry this at all.

0:11:400:11:42

As soon as you make it, you can cook it, basically.

0:11:420:11:44

How long does the pasta take to cook?

0:11:440:11:46

The pasta takes two minutes to cook. Once the water is boiling, OK?

0:11:460:11:50

you put the pasta in.

0:11:500:11:51

As soon as the water comes back to boil,

0:11:510:11:54

then your pasta's ready.

0:11:540:11:56

OK, so it's not long at all.

0:11:560:11:58

I'm going to pour all of this in there,

0:11:590:12:02

including a little bit of water and then you get your pan...

0:12:020:12:05

-Toss it, sorry.

-THEY LAUGH

0:12:070:12:09

And in just ten minutes, it's ready.

0:12:090:12:13

Voila!

0:12:130:12:14

-Voila!

-Voila!

0:12:140:12:16

Voila indeed!

0:12:160:12:18

Yvonne won't always have a celebrity chef on hand to help,

0:12:180:12:22

so the question is,

0:12:220:12:23

will she be convinced she can whip up tucker like this back at home?

0:12:230:12:27

So, Aldo, I'm stuffing my face here,

0:12:270:12:30

I'm enjoying this food so much.

0:12:300:12:32

But I want to know, you know, how much would this cost really,

0:12:320:12:36

you know, maybe to feed four people?

0:12:360:12:38

All of that would probably cost a pound a portion.

0:12:380:12:41

That's a bargain.

0:12:410:12:43

So, it seems those takeaways really could become a thing of the past.

0:12:430:12:47

The thing that's really blowing my mind is the fact it was like

0:12:470:12:50

so quick to make.

0:12:500:12:52

Now, we can run to the shop and buy pasta,

0:12:520:12:55

but it just seems a lot quicker to do it yourself, if you know how to.

0:12:550:12:58

Well, it's quicker than running to the shop, that's for sure.

0:12:580:13:00

If Yvonne halved her takeaway spending

0:13:000:13:03

from £150 to £75 a month, over a year,

0:13:030:13:07

that would be a saving of £900.

0:13:070:13:09

But Simon's only just warming up, and later in the programme,

0:13:110:13:15

he's going to tackle Yvonne's expensive champagne habit

0:13:150:13:18

with a test to tickle her taste buds.

0:13:180:13:21

Is it worth her forking out for the finer fizz?

0:13:210:13:24

-Are you sure, now?

-No, I'm not sure.

-HE LAUGHS

0:13:240:13:27

-So what I propose to do...

-BOTH:

-Is taste them all again!

0:13:270:13:30

THEY LAUGH

0:13:300:13:33

And we'll be chatting to Yvonne later in the programme.

0:13:340:13:37

But first off, Sarah Pennells is here along with Kelly Eroglu,

0:13:370:13:39

who, in a moment, well tell us how her family of four manages to

0:13:390:13:43

feast like kings but on a shoestring budget.

0:13:430:13:46

Now, Sarah, Yvonne, she certainly likes a treat or two, doesn't she?

0:13:460:13:49

Absolutely, and there's nothing wrong with treating yourself.

0:13:490:13:52

But is there a way of doing that on a budget, though?

0:13:520:13:54

Well, I think if you are treating yourself, you've got to work out

0:13:540:13:57

what your real priorities are.

0:13:570:13:59

What's the thing you really love and where can you compromise?

0:13:590:14:01

So it might mean getting different brands.

0:14:010:14:04

It might mean staying in more and cooking in your own kitchen

0:14:040:14:06

rather than going out for meals. Or it might just mean you spend

0:14:060:14:09

a bit more time being creative and doing hobbies

0:14:090:14:11

rather than maybe going to the cinema and things like that.

0:14:110:14:14

Yvonne, you know, she's got some real problems,

0:14:140:14:16

but she's saving for a house.

0:14:160:14:19

Does it help to actually have a goal in mind

0:14:190:14:21

when you're trying to save money?

0:14:210:14:23

I think it's a huge help to have a goal, whatever it is you're doing.

0:14:230:14:26

So, whether you are saving for a deposit for a house,

0:14:260:14:29

or trying to become debt-free, I think

0:14:290:14:31

it's really important to focus on what that means for you.

0:14:310:14:34

So, what will having a house mean for you?

0:14:340:14:36

How will it transform your life?

0:14:360:14:38

What will being debt-free mean to you?

0:14:380:14:40

The goal is the real motivator,

0:14:400:14:42

and that's the thing that will keep you on track.

0:14:420:14:44

Now, Kelly, you perform what I can only describe as a miracle,

0:14:440:14:48

because you manage to feed your family for the entire week for £20.

0:14:480:14:53

And you're going to really quite high-end supermarkets too.

0:14:530:14:56

Basically, it's all about time and being organised.

0:14:560:14:59

Going in to the supermarkets at the right time.

0:14:590:15:01

I tend to go to the reduced aisles. They have a specific reduced bench.

0:15:010:15:05

I'll always pick up the high-end meats, the steaks, the fish,

0:15:050:15:09

the salmon, so we always have a really good high quality meal.

0:15:090:15:12

If I didn't buy the reduced product,

0:15:120:15:14

it would cost me an absolute fortune

0:15:140:15:15

and I wouldn't be able to do it

0:15:150:15:17

because I don't have a luxury budget.

0:15:170:15:19

When is the best time to get all those bargains?

0:15:190:15:21

A really good rule of thumb is

0:15:210:15:22

if you go in and you speak to a friendly-looking member of staff,

0:15:220:15:25

they'll always tell you when the reduction times are.

0:15:250:15:28

Presumably, though, it's been reduced because it has a very

0:15:280:15:30

short shelf life, otherwise, why would they reduce it?

0:15:300:15:32

Basically, sell-by-date means when they are supposed to sell it by.

0:15:320:15:35

Use-by-date is the one you're supposed to watch.

0:15:350:15:38

If something doesn't smell right or doesn't look right, bin it.

0:15:380:15:41

-So what kind of savings are you making?

-Oh, my gosh.

0:15:410:15:43

Over the last four or five years,

0:15:430:15:45

I'd worked out around about £18,000.

0:15:450:15:47

-Wow.

-Which is a hell of a lot because

0:15:470:15:49

previously, for my two children and myself,

0:15:490:15:51

I would have spent something in the region of £90 or £120

0:15:510:15:54

a week, and the majority of that was convenience foods.

0:15:540:15:58

Give us some Kelly's tips.

0:15:580:15:59

Ooh, well, I've got a really good website.

0:15:590:16:02

If you go on there, I've got all my reduction times

0:16:020:16:04

in the different supermarkets

0:16:040:16:05

and hints and tips and different things on there to help you

0:16:050:16:08

-on that journey to saving money.

-Tell me now. I want to know now.

0:16:080:16:10

Oh, one of the main tips is to go in with an open mind.

0:16:100:16:13

So don't go in there thinking you want to make spaghetti bolognese

0:16:130:16:15

that night. Go in, see what they've got, and work with that.

0:16:150:16:18

Recently, I bought corn-fed organic chicken. It was £18.

0:16:180:16:22

Who would pay this? I just don't know. £2.20, I picked it up for.

0:16:220:16:26

Three meals out of that, so that was fantastic.

0:16:260:16:28

I paid £1.55 for two sea bass.

0:16:280:16:31

Had some left over rice from the weekend.

0:16:310:16:33

I jazzed it up a bit with a bit of chorizo,

0:16:330:16:34

some different herbs, some tomatoes,

0:16:340:16:36

popped it in, stuffed sea bass, less than a pound per person.

0:16:360:16:39

Are you taking all this in, Sarah?

0:16:390:16:41

Every single word. Really good tips.

0:16:410:16:42

Yeah? You're going to be following some of this,

0:16:420:16:44

-I think, aren't you?

-Absolutely.

0:16:440:16:46

I mean, I do think, before you go anywhere near a supermarket,

0:16:460:16:48

you should check your own cupboards. That's my first tip.

0:16:480:16:51

Because, otherwise, you end up buying stuff you already have.

0:16:510:16:53

And if you've got things like vegetables that are looking

0:16:530:16:56

a little bit tired, a bit more mature than maybe

0:16:560:16:58

they should be, chuck them in a stew or a soup.

0:16:580:17:00

Put it in the freezer if you can't eat it now.

0:17:000:17:02

That way, your money will go further.

0:17:020:17:04

Thank you very much, ladies.

0:17:040:17:05

Now, my old mum used to say that loyalty always pays.

0:17:050:17:09

But, unfortunately, when it comes to big companies,

0:17:090:17:11

too often that isn't the case. In fact, the opposite can be true.

0:17:110:17:15

It's something that drives personal finance expert Richard Fenton mad.

0:17:150:17:20

So, here's his guide to stop you losing out.

0:17:200:17:22

So this really has to be one of my absolute biggest bugbears.

0:17:250:17:29

The way that too often,

0:17:290:17:30

big companies take your loyalty for granted.

0:17:300:17:32

And for my money, it's especially the case with insurance companies.

0:17:320:17:36

They make it sound like they're doing you a favour when they write

0:17:360:17:39

to you offering to automatically renew your policy for another year.

0:17:390:17:43

But they're not.

0:17:430:17:44

So that renewal letter comes through the door.

0:17:470:17:49

So helpful, I'd forgotten the home insurance was about to run out.

0:17:490:17:52

So what do I do?

0:17:520:17:54

The sensible thing to do would be to look and see

0:17:540:17:56

if the cost of the policy has gone up.

0:17:560:17:58

And in most cases, it probably has.

0:17:580:18:00

Not that this increase has always been made clear.

0:18:020:18:04

They'll typically tell you the new rate, but not the old one.

0:18:040:18:08

And they'll say, "Don't worry. You don't need to do a thing."

0:18:080:18:11

Of course, they don't want you to do a thing

0:18:110:18:13

because if you check what you paid last year,

0:18:130:18:15

you'd see that your car or home premiums have most likely rocketed,

0:18:150:18:19

sometimes by as much as a quarter.

0:18:190:18:22

These kinds of auto-renewals

0:18:220:18:23

cost the average householder almost £200 a year,

0:18:230:18:27

and the real sting in the tail is that the company you've

0:18:270:18:30

stuck with may well be charging you up to four times as much

0:18:300:18:33

as a new customer would pay for the same policy.

0:18:330:18:36

And it's all down to marketing.

0:18:370:18:39

New customers get a better deal to entice them over. So shop around.

0:18:390:18:43

And then YOU become the new customer

0:18:430:18:45

and you're the one that's being enticed.

0:18:450:18:47

Car insurance is the classic example.

0:18:470:18:50

6 million cars have their cover renewed automatically

0:18:500:18:54

every year without their owners checking a single other quote to see

0:18:540:18:57

if they can find a better deal.

0:18:570:18:59

And that means motorists could be losing out

0:18:590:19:01

by as much as £1.2 billion a year.

0:19:010:19:05

But if you haggle, it's a whole different story, my friends.

0:19:060:19:11

Only the other day, I had one chap come to me

0:19:110:19:13

and he'd managed to save himself £100 on his breakdown cover

0:19:130:19:17

just through one simple call and a little bit of haggling.

0:19:170:19:21

The good news is that challenging rising renewal quotes

0:19:210:19:24

is about to get a whole lot easier as insurers are being told

0:19:240:19:27

they should now show the previous year's price alongside the new one,

0:19:270:19:32

giving customers the choice to cancel.

0:19:320:19:34

But that's not enough for Kalpana Fitzpatrick.

0:19:340:19:37

She writes an online blog about saving money.

0:19:370:19:40

And she believes that companies should be much

0:19:400:19:42

clearer on what we are signing up to right from the off.

0:19:420:19:46

-So how widespread is this?

-It's everywhere, basically.

0:19:480:19:51

It's your car insurance, if you're signing up for free trials,

0:19:510:19:54

it's gym membership.

0:19:540:19:56

Do you think companies are deliberately making it

0:19:560:19:58

difficult for people to realise what they're signing up to

0:19:580:20:01

and to ultimately get away from it in the end?

0:20:010:20:04

I think companies have a moral responsibility

0:20:040:20:06

to their consumers here.

0:20:060:20:07

If they are going to take a payment out,

0:20:070:20:09

they should give them some sort of notice.

0:20:090:20:11

But we have had cases where

0:20:110:20:13

this hasn't been happening, unfortunately.

0:20:130:20:15

And consumers are being caught out and it's putting them

0:20:150:20:18

out of pocket of hundreds of pounds here.

0:20:180:20:20

Especially when it's insurance policies.

0:20:200:20:21

So what advice would you give to consumers to avoid getting

0:20:210:20:24

trapped in these auto-renewals?

0:20:240:20:26

I think it is up to the consumer here to be proactive

0:20:260:20:28

and take responsibility.

0:20:280:20:31

Open up your e-mails, open up your mail and see what it's saying

0:20:310:20:34

because sometimes people don't realise that these

0:20:340:20:36

payments are coming out of their account. And as soon as you put your

0:20:360:20:39

bank details in, that's when you're in that danger zone, I'd say.

0:20:390:20:42

That's when the alarm bells start ringing.

0:20:420:20:44

Absolutely, absolutely, yes.

0:20:440:20:45

Once the money comes out, it's really hard to get it back.

0:20:450:20:48

So what have we all learnt?

0:20:480:20:50

Don't rely on companies to manage your finances for you.

0:20:500:20:53

Do your research. Check your e-mails. Haggle.

0:20:530:20:58

And take responsibility for your own renewals.

0:20:580:21:00

I'm with James Daley

0:21:030:21:04

who campaigns on behalf of the consumer for shorter

0:21:040:21:07

and fairer Ts and Cs.

0:21:070:21:09

James, there are stories in the paper, particularly the

0:21:090:21:12

older generation now who are letting these auto-renewals just

0:21:120:21:15

go on and on and on and they're actually wasting

0:21:150:21:17

hundreds of pounds a year.

0:21:170:21:18

Well, yes, and unsurprisingly, that's caught the attention of

0:21:180:21:21

the regulator who's starting to take the view

0:21:210:21:23

that it could be exploitation and

0:21:230:21:25

insurers are really under pressure to be a bit fairer with

0:21:250:21:27

customers, and at the very least, write to them

0:21:270:21:29

and get in touch with them if they've been with them for years

0:21:290:21:32

and say, "Hey, you've been with us five years, ten years,

0:21:320:21:34

"you could be paying way too much for your insurance."

0:21:340:21:37

And that's what you've got to be really careful of.

0:21:370:21:39

The only way to make sure you're getting a good deal is to

0:21:390:21:41

shop around every year, which is a pain, I know, but you have to do it.

0:21:410:21:44

Now, as far as the terms and conditions are concerned,

0:21:440:21:47

the stuff that we all hate, you've been looking at them

0:21:470:21:49

and there are some real humdingers out there, isn't there?

0:21:490:21:52

Oh, I mean, it's an absolute minefield.

0:21:520:21:54

Some of them are longer than George Orwell's Animal Farm,

0:21:540:21:56

longer than The Lion, The Witch And The Wardrobe.

0:21:560:21:58

We're talking 40,000 words for an insurance policy document and,

0:21:580:22:02

of course, they're not even a fraction

0:22:020:22:04

as interesting as those novels.

0:22:040:22:05

I've brought one long for you today, James,

0:22:050:22:07

this is just ten pages of 114-page contract from a UK bank.

0:22:070:22:13

Mind your feet. I'll tell you what, it's very lengthy, isn't it?

0:22:160:22:20

Well, I know that one. It's actually over 70,000 words long.

0:22:200:22:23

It's just unacceptable. There's no excuse for it.

0:22:230:22:25

What we want are shorter documents, written in a language that

0:22:250:22:29

everybody can understand, and we don't think that's too much to ask.

0:22:290:22:32

I totally agree. OK, James, give our viewers some hints and tips.

0:22:320:22:36

Well, if you're buying anything, but especially insurance or

0:22:360:22:38

banking products, make sure you read any summary documents that they

0:22:380:22:42

give you, but don't worry about these 40,000, 70,000-word Ts and Cs.

0:22:420:22:46

The legislation, the rules and regulations

0:22:460:22:49

make it really clear that anything onerous has to be

0:22:490:22:52

made really clear to you before you enter into that agreement with them.

0:22:520:22:55

So take some comfort from that,

0:22:550:22:57

don't get bogged down in reading all this legal and financial jargon,

0:22:570:23:01

but do keep your eyes open whenever you are buying anything

0:23:010:23:03

because there's often some sneaky things hiding in there to trick you.

0:23:030:23:06

I agree. James, I'm going to go and have a chat with some people

0:23:060:23:09

in Nottingham. In the meantime, I'm going to give you

0:23:090:23:11

a free cardiovascular workout.

0:23:110:23:13

-You couldn't roll that up for me, could you?

-Right, thank you.

0:23:130:23:15

Cheers, buddy. Thanks a lot.

0:23:150:23:18

I want to find out, when it comes to contracts,

0:23:180:23:20

do the shoppers of Nottingham

0:23:200:23:22

actually know what they're signing up to?

0:23:220:23:25

When you signed up for your phone contracts,

0:23:250:23:27

-did either of you read the Ts and Cs?

-No, I didn't, no.

-No.

0:23:270:23:31

-Why not?

-It's just long, innit?

-Innit! It takes too long.

-It is!

0:23:310:23:35

-Well, they are, innit?

-Yeah.

-Yeah.

0:23:350:23:38

Did you read the small print?

0:23:380:23:39

-No.

-You didn't read the Ts and Cs at all?

-Not at all, no.

0:23:390:23:42

-Tell me why not.

-It's just too long, isn't it?

0:23:420:23:44

It takes time and you just want to sign it and get it done.

0:23:440:23:47

People rarely have time to go through the entire document.

0:23:470:23:51

I don't.

0:23:510:23:52

-I only go to it when I need to make a claim or anything like that.

-Yeah.

0:23:520:23:56

What about auto-renewal?

0:23:560:23:58

Would you know what I'm talking about when I say that?

0:23:580:24:00

-That's what I do, actually.

-You are on auto-renew?

-Yeah.

0:24:000:24:04

Every year, I don't have to worry about it. They just take it out.

0:24:040:24:06

Do you know, Colin,

0:24:060:24:08

you really need to get one of our money makeover experts round to sort

0:24:080:24:11

you out because we could probably save you an absolute fortune.

0:24:110:24:14

Do you ever do auto-renew?

0:24:140:24:16

-No.

-Why is that?

0:24:170:24:19

12 months seems like a nice period to review it

0:24:190:24:21

and look at it and see if I can save any money.

0:24:210:24:22

I'm hoping you're going to give me the right answer now.

0:24:220:24:25

When you pay for your policy,

0:24:250:24:26

do you pay for it in one lump sum or do you pay monthly?

0:24:260:24:29

-No, no, monthly.

-Oh, no! That was the wrong answer, Colin.

0:24:290:24:32

HE LAUGHS Can I be rude and shake you?

0:24:320:24:35

You've got to start shopping around.

0:24:350:24:37

Do you do auto-renewal with your car insurance?

0:24:370:24:41

Um, no. But I have been with the same company for about five years.

0:24:410:24:45

And whenever they send me the renewal,

0:24:450:24:47

I ring them up and tell I'm going to cancel, cancel, cancel.

0:24:470:24:51

They tell me how important I am and then they lower the price.

0:24:510:24:54

It would be advisable for you to phone around,

0:24:540:24:56

even have a little bargain with the company,

0:24:560:24:58

see if you can get that down,

0:24:580:24:59

and if you can afford it, pay it in one lump some.

0:24:590:25:02

Don't start paying these silly interest charges that they

0:25:020:25:04

-put on top.

-I didn't know that.

0:25:040:25:05

And if you had a message for all the financial institutions,

0:25:050:25:08

the banks, the gyms, everybody about these lengthy

0:25:080:25:11

Ts and Cs, what would it be?

0:25:110:25:13

We're supporting you, we're bringing

0:25:130:25:14

money into your business, stop treating us like idiots.

0:25:140:25:17

-Couldn't have said it better myself.

-Thank you.

-And there you have it.

0:25:170:25:21

Not one person I've met today likes long and wordy Ts and Cs.

0:25:210:25:25

So, come on, keep them simple.

0:25:250:25:27

Now, do you dream of taking early retirement? I know I certainly do.

0:25:300:25:34

Well, sadly for many, it seems that dream will never come true.

0:25:340:25:38

A recent report suggested that today's youngsters may have

0:25:380:25:41

to work into their 80s before they can afford to retire.

0:25:410:25:45

But it seems some of you are desperate to give up work

0:25:450:25:48

long before then.

0:25:480:25:50

-50. I think 50 is a good age to retire.

-Yeah.

0:25:530:25:57

I don't know, you'd be bored, though. He would be bored.

0:25:570:26:00

He's saying 50 now, but he's a workaholic. He'd be bored.

0:26:000:26:03

I'm a single mum,

0:26:030:26:05

and have been for the last 13 years,

0:26:050:26:06

so obviously I've got to think about when I'm old and grey.

0:26:060:26:10

Hopefully, he might keep me, but I can't guarantee on him.

0:26:100:26:14

So I've had to start putting money away.

0:26:140:26:17

A pension? I couldn't tell you. I don't have a clue about a pension.

0:26:170:26:21

Because I'm actually totally anti-pensions.

0:26:210:26:24

I do try and plan for the future,

0:26:240:26:26

but I wouldn't say pensions is something on my mind just yet, no.

0:26:260:26:30

Myself? Set up a few more online businesses

0:26:300:26:32

and just carry on doing that.

0:26:320:26:34

I don't think the state pension is enough anyway,

0:26:340:26:36

so I think people do have to save up themselves, really.

0:26:360:26:39

Now, if you want to buy something special, you usually

0:26:430:26:46

either save up for it or maybe pay for it using a credit card or loan.

0:26:460:26:49

However, a growing number of people are asking others

0:26:490:26:52

to pay for the things that they want.

0:26:520:26:55

Joining me now are Olivia and Kasha who do just that.

0:26:550:26:58

Now, Olivia, you run a website that helps people organise

0:26:580:27:02

-something known as crowdfunding.

-Yes.

0:27:020:27:04

Crowdfunding is quite a new term.

0:27:040:27:06

We've probably started to hear it in the last sort of two or three,

0:27:060:27:09

four years. But actually it's not new.

0:27:090:27:11

If you think about being in the church on a Sunday morning

0:27:110:27:14

when the vicar comes round and everybody puts a few

0:27:140:27:17

quid into a plate to fix the church roof, you are crowdfunding.

0:27:170:27:21

There are websites that allow you to crowd fund for a creative project.

0:27:210:27:24

If you're a band, and you want to release an album and you

0:27:240:27:26

can't get onto a label, you can ask the wider community to support you.

0:27:260:27:30

If you want to start a business, people can crowdfund that

0:27:300:27:33

and they may get some kind of return.

0:27:330:27:34

They may get a bit of equity in that business.

0:27:340:27:37

And we heard a student from Ghana who wanted to study in the UK

0:27:370:27:41

crowdfunding his tuition, his fees here in the UK.

0:27:410:27:45

So you do hear those stories.

0:27:450:27:46

And our website, Patchwork, is used for any occasion.

0:27:460:27:50

For weddings or birthdays, Christmas

0:27:500:27:52

to collectively buy a gift for somebody that they want

0:27:520:27:55

rather than surprising them with 25 things that they don't.

0:27:550:27:58

And, Kasha, what's your experience and how did you get involved?

0:27:580:28:01

For my son's third birthday, we wanted to take him

0:28:010:28:05

to the theatre to see The Lion King, so all the grandparents

0:28:050:28:09

and aunts and uncles and friends who wanted to contribute did.

0:28:090:28:14

He was at an age where friends still wanted to buy him

0:28:140:28:17

something even though he wasn't having a birthday party,

0:28:170:28:20

so it worked really well and we had a really wonderful day out.

0:28:200:28:23

I don't know if I'm a little bit old-fashioned,

0:28:230:28:25

but I'd feel a little bit embarrassed. Some people

0:28:250:28:27

might feel just uncomfortable about the whole situation, set up.

0:28:270:28:31

Yeah, I know and I wouldn't have been so presumptuous as to send

0:28:310:28:35

an invite to a wide group of friends, so I kept it

0:28:350:28:39

within a very select group of people,

0:28:390:28:42

so it worked for that purpose.

0:28:420:28:44

Just chatting to you both, it actually sounds like a really

0:28:440:28:47

practical and sensible way to go about doing things, doesn't it?

0:28:470:28:51

Yeah, well, I think we're living in quite tough times as well,

0:28:510:28:55

and the economy not being great, people are sort of struggling.

0:28:550:28:58

So it makes sense to spend the money that we do have collectively

0:28:580:29:01

funding things that people really want and need

0:29:010:29:03

and not buying each other a load of stuff that ends up in landfill

0:29:030:29:06

just because we feel compelled to do it because it's someone's

0:29:060:29:09

birthday or because it's Christmas or because it's their wedding.

0:29:090:29:12

-Interesting stuff. Thanks, ladies.

-Thank you.

0:29:120:29:15

Now, earlier on, we met Yvonne who loves to spend on expensive

0:29:150:29:18

treats but needs to cut back if she wants to achieve her property dream.

0:29:180:29:22

Let's see if we've managed to help her out.

0:29:220:29:25

Over the past few years,

0:29:270:29:28

devoted mum Yvonne Sinclair has been busy with her hairdressing,

0:29:280:29:32

running motivational courses and leading a gospel choir.

0:29:320:29:37

Through sheer hard work, she's managed to put her sons on the

0:29:370:29:40

property ladder, but that's been at the expense of buying her own home.

0:29:400:29:46

I am a single parent, I'm a small-business owner,

0:29:460:29:49

how can I buy a house?

0:29:490:29:52

You know, I've had debt problems in the past as well,

0:29:520:29:56

so how can somebody like me buy a house?

0:29:560:29:58

And I just thought it wasn't something that I could do.

0:29:580:30:02

Personal finance expert Simon Read has already come up with some

0:30:020:30:06

great ways she can save up for a deposit.

0:30:060:30:09

For these two car-parking spaces, you could earn...

0:30:100:30:12

-£2,000 a year.

-Really?

0:30:120:30:15

Now Simon's back

0:30:150:30:17

and he wants to reduce Yvonne's spending on luxury items to

0:30:170:30:21

really boost her chances of putting away enough money for a deposit.

0:30:210:30:25

Yvonne's cut back on what used to be an almost addictive

0:30:250:30:29

spending on shoes, but she's still got around 100 pairs hidden away,

0:30:290:30:33

and Simon thinks, on this one, she can turn

0:30:330:30:36

a negative into a positive.

0:30:360:30:38

So you've got all these shoes.

0:30:380:30:40

-You keep them well...

-Yes.

-..because you care about them.

0:30:400:30:43

-Is there an opportunity to sell some of them?

-Yes.

-Do you sell them?

-No.

0:30:430:30:48

THEY LAUGH

0:30:480:30:50

I give them away. Yeah. I could sell them.

0:30:500:30:52

Could you think about that maybe?

0:30:520:30:54

You know, through an online auction site or something like that?

0:30:540:30:57

That is a really good idea, actually.

0:30:570:30:59

Rather than giving them away.

0:30:590:31:00

If you could sell 80 pairs of shoes, even if

0:31:000:31:03

you only got a tenner per pair, how much money is that?

0:31:030:31:06

-Can you do mental arithmetic?

-No.

0:31:060:31:09

-That would be £800.

-£800, yeah.

-£800.

0:31:090:31:11

-Just from clearing out your wardrobe.

-Hm. And clothes.

0:31:110:31:15

-I think it's something to think about.

-It is.

0:31:150:31:17

-It's something to think about.

-It is, it is, absolutely, actually.

0:31:170:31:20

Now I'm gutted that I just threw some out.

0:31:200:31:22

I literally just threw a bag of shoes out.

0:31:220:31:25

But there's one pair of boots

0:31:250:31:26

that Yvonne won't even dream of chucking away.

0:31:260:31:28

These shoes, boots, are very significant to me.

0:31:300:31:35

And I actually found these boots a couple of years ago

0:31:350:31:38

when I was sorting some of my old shoes out to get rid of them.

0:31:380:31:41

And I bought these shoes when I was 15 years old and I had left home.

0:31:410:31:47

Some may say I ran away from home, but I left home.

0:31:470:31:49

-This was really the start of your journey?

-Yeah.

0:31:490:31:52

After becoming homeless as a teenager,

0:31:520:31:55

Yvonne vowed that one day she'd enjoy the finer things in life.

0:31:550:31:59

And now every week, she treats the family to

0:32:000:32:03

a bottle of bubbly as a motivation for working their socks off.

0:32:030:32:07

If it's been a good week,

0:32:070:32:09

she buys premium champagne at almost £35 a pop.

0:32:090:32:13

Otherwise, she buys prosecco.

0:32:130:32:15

But the big question is, can she tell the difference?

0:32:150:32:18

To find out, Simon sets up a taste test challenge,

0:32:180:32:22

joined by Yvonne's two sons, Nathan and Leon.

0:32:220:32:25

What we are going to ask you to do is try

0:32:250:32:28

and work out which is the cheap one, which is

0:32:280:32:30

the cheap £4 cava, which is the expensive £33 champagne.

0:32:300:32:34

We've also thrown into the mix a £13 prosecco

0:32:340:32:36

and a £12 champagne.

0:32:360:32:38

-So, Yvonne, I'd like you to go first.

-OK.

0:32:380:32:41

If you guys don't mind leaving the room,

0:32:410:32:43

we'll call you back in when we're ready.

0:32:430:32:44

-And we'll have a bit of fun with this.

-OK.

0:32:440:32:47

Yvonne gets tasting,

0:32:470:32:48

and it looks like she has a clear idea of which is the fanciest fizz.

0:32:480:32:52

-Then that way, that means that's that...

-Yes.

-That's that.

0:32:530:32:57

-And that's that.

-Are you sure now?

0:32:570:32:59

-No, I'm not sure.

-HE LAUGHS

0:32:590:33:01

-So what I propose to do...

-BOTH:

-Is taste them all again!

0:33:010:33:04

THEY LAUGH

0:33:040:33:05

After some more, hm, essential tasting,

0:33:050:33:08

-Yvonne sticks to her decision.

-That's that...

0:33:080:33:10

But before the results are revealed...

0:33:100:33:12

-That is definitely champagne.

-Ooh.

0:33:120:33:14

..her sons have a go. Why not, lads?

0:33:140:33:17

Eurgh.

0:33:170:33:18

I believe that that one actually tastes

0:33:180:33:20

like the most expensive champagne.

0:33:200:33:22

-Yes.

-It brought back a bit of a memory from when I was 18.

-Yes.

0:33:220:33:25

-When I had champagne and I didn't last the night.

-Yes.

0:33:250:33:28

-It was because of that.

-And that reminds you of that night?

0:33:280:33:30

Yes, it does.

0:33:300:33:32

But will the mood fall flat when Simon reveals which fizz is which?

0:33:320:33:36

And can any of them tell the difference between the best

0:33:360:33:39

and the bargain booze?

0:33:390:33:41

Nathan, you didn't get any right.

0:33:410:33:43

Didn't think so.

0:33:430:33:44

HE LAUGHS

0:33:440:33:47

I will tell you, Nathan, the wine which you said was rank

0:33:470:33:51

-and awful...

-Yeah.

-..was the £33 champagne.

0:33:510:33:56

The wine which you said, "Oh, this is champagne.

0:33:560:34:00

"I remember it from my 18th birthday party.

0:34:000:34:02

-"This brings back great memories..."

-Did you say that, Nathan?

0:34:020:34:06

..was the £4 cava.

0:34:060:34:08

THEY LAUGH

0:34:080:34:11

-Leon.

-Hello.

-You got one right.

0:34:110:34:15

So I'd say to you as well, stick with the prosecco that you know.

0:34:150:34:17

I definitely will.

0:34:170:34:18

And now it's the turn of discerning mum Yvonne.

0:34:180:34:21

Now, Yvonne, which did you think was the most expensive champagne?

0:34:210:34:26

-It was the lighter-coloured one.

-You thought it was the prosecco.

0:34:260:34:30

The prosecco was the one that you thought was your favourite.

0:34:300:34:33

So maybe there's a lesson there.

0:34:330:34:35

If you switch to this brand, rather than that one,

0:34:350:34:37

-you're saving £20 a bottle.

-Well.

0:34:370:34:39

And by the sound of it, you can enjoy it just as much. Yeah.

0:34:390:34:42

Stick to the prosecco, Mum,

0:34:420:34:43

it's going to be better for everyone.

0:34:430:34:45

If you were to switch your habit from buying the expensive champagne

0:34:450:34:48

to the cheaper prosecco every week,

0:34:480:34:51

do you know how much you'd save in a year?

0:34:510:34:52

-How much would I save in a year?

-About £1,000.

-Really?

0:34:520:34:55

Yes, really, Yvonne.

0:34:550:34:58

By switching to prosecco, which you seem to actually prefer,

0:34:580:35:01

you'll still get the bubbles

0:35:010:35:03

but save £1,000 a year.

0:35:030:35:05

I'll drink to that!

0:35:050:35:06

-That's delicious.

-No!

0:35:060:35:09

THEY LAUGH

0:35:090:35:12

But Simon wants to keep those savings rolling in.

0:35:120:35:14

So he hitches a ride with Yvonne in her car.

0:35:140:35:17

Because she clocks up lots of miles every year, Yvonne needs

0:35:170:35:21

a reliable motor, and up to now, she's been leasing her wheels.

0:35:210:35:26

But her contract is coming up for renewal and

0:35:260:35:28

if she wants to keep the car she's got, it will cost her £323 a month.

0:35:280:35:34

And I guess it's... You've got a nice car, that's the going price.

0:35:350:35:38

-I reckon we can save you money, though.

-Do you?

0:35:380:35:42

I think we can go to a dealer, get you a deal, so it will be cheaper

0:35:420:35:46

in that, and a different car that you're going to fall in love with.

0:35:460:35:50

-But can Yvonne give up her beloved Beemer?

-Hey, Paul. Nice to see you.

0:35:500:35:54

Hopefully, dealer Paul will be able to show her a new

0:35:540:35:57

set of wheels at a cheaper price.

0:35:570:35:59

I'm looking for something around the same price range as I'm paying now.

0:35:590:36:04

Something sturdy, a bit racy,

0:36:040:36:07

-something that will look nice as well.

-Fantastic.

0:36:070:36:11

-You've got something in mind?

-Definitely.

0:36:110:36:12

I'm going to leave you in Paul's hands, but remember,

0:36:120:36:15

don't just get dazzled by the car.

0:36:150:36:16

Think about the cost and the price and how much you're going to pay.

0:36:160:36:19

-OK, definitely.

-And negotiate hard.

-Oh, definitely.

-Good luck.

0:36:190:36:23

-Come this way.

-OK, thank you.

0:36:230:36:25

And it took all of 1.2 seconds for Yvonne to fall in love.

0:36:250:36:30

Yeah, I really like this.

0:36:300:36:31

I like the look and the fact that it is convertible.

0:36:310:36:34

And she hits the road for a test drive.

0:36:340:36:36

SHE LAUGHS

0:36:380:36:40

If Yvonne was to swap her current car for this new one,

0:36:420:36:45

she would save herself £58 a month, which means a

0:36:450:36:49

£2,784 saving over the four-year

0:36:490:36:52

lease term. You see?

0:36:520:36:54

It really pays off to shop around.

0:36:540:36:57

Well, I think you need to go away and think about these figures.

0:36:570:37:00

-To my mind, it sounds like a great deal but...

-Yeah.

0:37:000:37:03

I mean, I'd always look through the figures

0:37:030:37:05

and read the fine print first.

0:37:050:37:08

But it does, um...

0:37:080:37:09

-On paper, it's a good deal, I think.

-Yeah.

0:37:100:37:13

You'd be right to check because,

0:37:130:37:15

while leasing a car makes sense for Yvonne, it isn't always going

0:37:150:37:18

to work out the most cost-effective way of getting a car.

0:37:180:37:21

So check those terms and conditions before you commit.

0:37:210:37:25

Well, Simon's saved Yvonne loads of cash so far, and she's hoping

0:37:250:37:30

to put it towards a deposit so she can buy the council house she rents.

0:37:300:37:34

But Yvonne is self-employed

0:37:340:37:36

and she's afraid she might not be given a mortgage.

0:37:360:37:39

So as a parting gift,

0:37:390:37:41

Simon's invited along mortgage adviser David Hollingworth.

0:37:410:37:45

If I was to say about chances, what do you think, knowing everything you

0:37:460:37:51

know about me now, what do you think my chances are of buying a property?

0:37:510:37:55

Well, I think it's get that track record of your income,

0:37:550:37:58

that will give you the real pathway to success in buying this house.

0:37:580:38:03

That's great news.

0:38:030:38:05

David thinks that being self-employed won't stop Yvonne's

0:38:050:38:08

dreams of buying her house.

0:38:080:38:10

But there's a deposit to stump up first.

0:38:100:38:13

Let's see how much Yvonne could squirrel away

0:38:130:38:15

if she follows all of Simon's advice.

0:38:150:38:18

Renting out her car parking spaces,

0:38:180:38:20

swapping the local cafe

0:38:200:38:21

for the local library

0:38:210:38:23

and transferring her motivational speech business there, plus

0:38:230:38:27

swapping champagne for prosecco and

0:38:270:38:29

halving her takeaway spending

0:38:290:38:31

would free up a total of £5,200.

0:38:310:38:35

And if she signs up for a new car lease,

0:38:350:38:37

that would be an extra £2,784 over the next four years.

0:38:370:38:43

That should make the bank manager happy.

0:38:430:38:45

As well as our Yvonne, of course.

0:38:450:38:48

Simon has given me a lot of encouragement,

0:38:480:38:51

and I think for me, that's a key thing.

0:38:510:38:53

I'm a single parent, so being able to afford a mortgage on my own

0:38:530:38:58

is really, really important, and he's given me some good tips.

0:38:580:39:01

So I will be using them to increase my income

0:39:010:39:03

and also increase my savings as well.

0:39:030:39:06

And Yvonne is here along with Sarah Pennels.

0:39:100:39:13

Now, Yvonne, it's great to see you.

0:39:130:39:15

I know you're a lady that likes the finer things in life, so how are

0:39:150:39:17

you feeling now that Simon's been to look at your finances?

0:39:170:39:21

Yeah, I'm feeling great.

0:39:210:39:22

He gave me some really good tips, so I'm utilising those

0:39:220:39:25

and things are beginning to change already.

0:39:250:39:28

So, yeah, I'm really happy with that.

0:39:280:39:29

Sarah, cutting back on those little luxuries, things which,

0:39:290:39:32

you know, a lot of people have got into bad habits with,

0:39:320:39:35

can be quite a tough thing for some people to do, can't it?

0:39:350:39:38

I think the key word there is habit cos it doesn't matter

0:39:380:39:41

what it is that you consider as a luxury,

0:39:410:39:43

once you've got used to that, it is something that you just think,

0:39:430:39:46

"Well, this is what I do.

0:39:460:39:47

"Once a week, I'll maybe have a drink with friends," whatever it is.

0:39:470:39:51

And as you say, breaking any kind of habit can be difficult,

0:39:510:39:54

but if you've got a really good motivation to do it,

0:39:540:39:57

then that habit actually can be changed.

0:39:570:39:59

Yvonne, talk to me about that champagne tasting experience,

0:39:590:40:02

because I think a lot of people will be surprised by the results.

0:40:020:40:05

Oh, definitely.

0:40:050:40:07

The perception is that champagne is of higher quality,

0:40:070:40:10

tastes better, but actually when it came down to the tasting,

0:40:100:40:14

the prosecco won by leaps and bounds.

0:40:140:40:17

So for me, it's prosecco all the way now.

0:40:170:40:20

-So, yeah, I'll save myself a penny or two.

-We like the sound of that.

0:40:200:40:23

-Still having as much fun and saving money at the same time.

-Absolutely.

0:40:230:40:27

Yvonne, you are on the right path now.

0:40:270:40:30

Well, for me, the experience was, "You can do it."

0:40:300:40:34

And it's given me now a lot of inspiration cos

0:40:340:40:37

I didn't believe that I could because of my age

0:40:370:40:40

and because I'm self-employed, but Simon coming has given me

0:40:400:40:43

an assurance that it's possible.

0:40:430:40:45

I've always wanted to own my own property,

0:40:450:40:48

but I had limiting beliefs about myself.

0:40:480:40:50

But, you know, as I tell people about their goals and their dreams,

0:40:500:40:53

I thought, "Well, how can I be telling other people

0:40:530:40:56

"and not actually utilising what I'm telling them for myself?"

0:40:560:40:59

And I believe that I can own my home, so it's going to happen.

0:40:590:41:03

And what do your sons, your big boys, think of you

0:41:030:41:07

and how you've changed your life?

0:41:070:41:10

To see that Mum's doing it, for them, it's such an achievement.

0:41:100:41:13

They're just proud of me

0:41:130:41:15

and I'm really, really... I'm getting really emotional.

0:41:150:41:17

-Your welling up, aren't you?

-Yeah, I am.

0:41:170:41:20

You know, I'm proud of them and they're proud of me,

0:41:200:41:23

and it's just how we are. We ride and die together.

0:41:230:41:26

You know, that's how we are as a family so...

0:41:260:41:28

That's just great. Well done, Yvonne.

0:41:280:41:31

Now, if like Yvonne, you'd like a little nudge in sorting

0:41:310:41:34

out your finances, then e-mail us at...

0:41:340:41:36

And we can't promise our experts

0:41:390:41:41

will be able to come and help everyone,

0:41:410:41:42

but on our website, we do have lots of tips and budgeting advice.

0:41:420:41:46

Our website has everything you need to sort out your spending.

0:41:480:41:53

We've teamed up with the Money Advice Service

0:41:530:41:55

to bring you easy-to-use money-saving tools

0:41:550:41:58

to plan your budget,

0:41:580:41:59

calculate the cost of your car or credit cards

0:41:590:42:02

and give your money a complete health check.

0:42:020:42:05

Download them at...

0:42:050:42:06

..where you can also take our interactive spending test.

0:42:100:42:13

And you'll find plenty more tips

0:42:130:42:15

and advice to keep your finances on track.

0:42:150:42:17

Well, Sarah's still with us

0:42:210:42:22

and we've got some questions for you from people we've met today.

0:42:220:42:25

Yeah, and first up, it's Eric

0:42:250:42:27

and he says he's been recently refused a car loan and wants

0:42:270:42:30

to know whether his partner's bad credit history could be to blame.

0:42:300:42:33

Well, first of all, all adults in the UK have a credit file.

0:42:330:42:37

Now, these credit files only get linked

0:42:370:42:39

if you have joint credit with somebody else.

0:42:390:42:42

So if Eric has got a joint mortgage or joint bank account

0:42:420:42:46

with his partner, then it will have an effect on his credit rating,

0:42:460:42:49

even if he applies for something like a car loan just in his name.

0:42:490:42:52

Many people think it only affects you

0:42:520:42:54

if you apply for credit with somebody who's got that bad rating.

0:42:540:42:57

So I think he should check his credit file,

0:42:570:42:59

see what's on there. If his partner has got a bad rating, then

0:42:590:43:03

that will affect him and it could affect him for some time to come.

0:43:030:43:06

-Could be expensive, couldn't it?

-Certainly could.

0:43:060:43:08

Now, Janine says, "I've bought an expensive vacuum cleaner

0:43:080:43:10

"from a shop that's now gone out of business.

0:43:100:43:13

"It's stopped working. Can I get a refund?"

0:43:130:43:16

In this case, if the shop's actually gone bust and has completely

0:43:160:43:19

stopped trading, then they don't have any liability any more.

0:43:190:43:22

I would suggest, if it's still within the warranty period,

0:43:220:43:25

to go back to the manufacturer, and actually, even if

0:43:250:43:27

it's outside the warranty, because in a situation like this,

0:43:270:43:30

some manufacturers will go the extra mile.

0:43:300:43:32

OK, thank you. And Ada. She's going on holiday to Spain.

0:43:320:43:36

Take me with you, Ada!

0:43:360:43:37

And she wants to know how she can avoid racking up

0:43:370:43:40

big mobile phone bills.

0:43:400:43:42

Well, there is good news

0:43:420:43:44

if you're going on holiday anywhere in the European Union

0:43:440:43:46

because there are strict limits on how much the mobile phone

0:43:460:43:49

providers can charge. And those came down just a few months ago.

0:43:490:43:52

And also there's a cap of 50 euros, which is about £35, on the

0:43:520:43:56

maximum amount that you can be charged while you're on holiday.

0:43:560:43:59

Now, there is a bit of a catch

0:43:590:44:00

which is that you can opt out of this cap,

0:44:000:44:03

so make sure that you don't do that before you go away.

0:44:030:44:06

You can also buy extra data bundles which are often quite

0:44:060:44:09

good value if you know roughly how much you might

0:44:090:44:11

use your phone for either browsing or making calls while you're away.

0:44:110:44:15

I think, generally speaking, some good advice is

0:44:150:44:18

don't download films and anything that is really data hungry.

0:44:180:44:21

Just check your e-mails and keep it to a minimum.

0:44:210:44:23

That's right, if you're on holiday,

0:44:230:44:25

use your phone for making calls and texts.

0:44:250:44:27

If you want to go and see a film, go to the cinema.

0:44:270:44:29

Tonnes of great advice there, Sarah.

0:44:290:44:30

Well, that's about it from us in Nottingham,

0:44:300:44:32

so thanks to all our guests and to you at home.

0:44:320:44:35

And we'll be back with more money-saving advice next time.

0:44:350:44:37

-Bye-bye.

-Cheerio.

0:44:370:44:39

Download Subtitles

SRT

ASS