0:00:02 > 0:00:04Whether you're a spender or a saver,
0:00:04 > 0:00:08we could all do with knowing how to make the most of our cash.
0:00:08 > 0:00:12So we've found simple advice for you to do just that
0:00:12 > 0:00:15and taken it to towns and cities right across Britain.
0:00:17 > 0:00:21Whatever help you need with your finances, we are Right On The Money.
0:00:22 > 0:00:24Hello and welcome to Right On The Money,
0:00:24 > 0:00:26the series that's here
0:00:26 > 0:00:28to find easy ways to put more cash in your pocket.
0:00:28 > 0:00:32And today, we are in the world's first modern industrial city -
0:00:32 > 0:00:36Manchester. We are going to make it our business to make you savvier.
0:00:36 > 0:00:38And here's what's coming up on the show.
0:00:40 > 0:00:43We go all out to help this hard-working trucker finally
0:00:43 > 0:00:46make sense of his finances.
0:00:46 > 0:00:49It's just gobbledygook. It's not English.
0:00:49 > 0:00:52No, it's just not understandable at all.
0:00:52 > 0:00:56Plus, find out how you could be quids in just by travelling
0:00:56 > 0:00:58to and from work.
0:00:58 > 0:01:01I make between £50 and £60 per month doing it while commuting,
0:01:01 > 0:01:03but really the sky is the limit.
0:01:06 > 0:01:09Cotton. This is what Manchester was built on.
0:01:09 > 0:01:12But last year, it was voted the most popular place in the UK to live.
0:01:12 > 0:01:14And the locals certainly agree with that,
0:01:14 > 0:01:16they're really proud to live here.
0:01:16 > 0:01:19But 20 miles further up the road, we've been trying to help
0:01:19 > 0:01:22a couple save enough cash to do up their house.
0:01:25 > 0:01:28Ted and Kristine Penlington, from Warrington,
0:01:28 > 0:01:31have been happily married for the past 33 years.
0:01:31 > 0:01:34And the secret of their wedding bliss is simple.
0:01:36 > 0:01:39It's because Ted is away from the house Monday to Friday
0:01:39 > 0:01:42working as a long-distance lorry driver.
0:01:43 > 0:01:46It's not that you're out of the way, you're out at work.
0:01:46 > 0:01:50- There you go.- And if you don't earn the money, I can't spend it, can I?
0:01:50 > 0:01:53I don't have a problem being away all week
0:01:53 > 0:01:57cos I know the boss, as I call her, she's safe enough.
0:01:57 > 0:01:59We have the two dogs looking after her.
0:01:59 > 0:02:02There you go. That's a good boy.
0:02:02 > 0:02:04While Ted is away,
0:02:04 > 0:02:07Kristine doesn't have the bungalow quite to herself.
0:02:07 > 0:02:10Two other residents still need lots of attention -
0:02:10 > 0:02:13her two pooches, Sultan and Bella.
0:02:13 > 0:02:17- The dogs are quite...- Mollycoddled is a way of putting it, I think.
0:02:17 > 0:02:20- Yeah.- The only thing I don't do is carry them about, I think.
0:02:20 > 0:02:24Well, we always make sure the dogs have got what I call the sweeties.
0:02:24 > 0:02:25We only give them dog treats,
0:02:25 > 0:02:27not make them jam butties or anything like that.
0:02:27 > 0:02:28Give them chocolate, no!
0:02:28 > 0:02:31No, we don't give them chocolate or anything.
0:02:31 > 0:02:35Ted's just turned 65 and would like to work a little less
0:02:35 > 0:02:37and spend some more time at home.
0:02:37 > 0:02:41So he's tried to cash in his various pensions, but has always
0:02:41 > 0:02:45given up halfway through as he's found the process too difficult.
0:02:46 > 0:02:49It's not hard to get your pensions, it's...
0:02:49 > 0:02:50near on impossible
0:02:50 > 0:02:56because nobody will give you the information you need to claim it.
0:02:56 > 0:03:00Recent research has shown that the majority of UK savers
0:03:00 > 0:03:02are just as confused as Ted is.
0:03:02 > 0:03:0957% said they didn't know when and how you could access your pension.
0:03:09 > 0:03:13Time to call in a woman who unravels pensions with the same enthusiasm
0:03:13 > 0:03:15others use to tackle a crossword,
0:03:15 > 0:03:18personal finance expert Sarah Pennells.
0:03:19 > 0:03:23- Hello. Is it Kristine?- It is, yes. - Hi, I'm Sarah.- Hi, Sarah.- Hello.
0:03:23 > 0:03:26And if she can't help these two sort out the retirement plans,
0:03:26 > 0:03:28no-one can.
0:03:30 > 0:03:35So, Kristine and Ted, you've got three private pensions.
0:03:35 > 0:03:39And have you taken any money out of any of them so far?
0:03:39 > 0:03:44I've been trying to get my private pensions for five, ten years?
0:03:44 > 0:03:46- Ten years, nearer on. - I sent the form off.
0:03:46 > 0:03:48And they sent me a letter saying,
0:03:48 > 0:03:52"We can sort this out for you, not a problem, we'll be in touch."
0:03:52 > 0:03:54- During all this, they sent you all the forms, didn't they?- Yeah.
0:03:54 > 0:03:57And you just don't understand what they're talking about.
0:03:57 > 0:03:59If there's one thing pension companies are brilliant at
0:03:59 > 0:04:01- it's not speaking English, so... - That's it.
0:04:01 > 0:04:03I'm not surprised you struggled with it.
0:04:03 > 0:04:05Oh, I didn't have a clue.
0:04:05 > 0:04:07I think that's hopefully something I can help you out with.
0:04:07 > 0:04:10And that can't come a moment too soon
0:04:10 > 0:04:13because these two have big plans for their home.
0:04:14 > 0:04:19We bought this house about three years ago. Well, the bungalow.
0:04:19 > 0:04:22And we want to extend it because it's not big enough
0:04:22 > 0:04:23for the dogs and us.
0:04:23 > 0:04:26- The big pup, he's grown a bit since we've been here.- Yes.
0:04:26 > 0:04:29And if he lies down on the floor, you just can't get round him.
0:04:29 > 0:04:33- We buy more dog food than what we do food.- Really?- Yeah.
0:04:33 > 0:04:36Hang on, so you spend more on food for the dogs than you
0:04:36 > 0:04:38- do for yourselves?- Yeah.- Wow.
0:04:40 > 0:04:42If they want to extend their house,
0:04:42 > 0:04:46Kristine and Ted may have to consider reducing their expenses,
0:04:46 > 0:04:49so to get a sense of just how much money they need,
0:04:49 > 0:04:51Sarah has a good look around.
0:04:51 > 0:04:55This is part of the reason why we need to extend,
0:04:55 > 0:04:57or the main reason, is the kitchen is so small.
0:04:57 > 0:05:00I mean, as you can see, I can't put anything in it.
0:05:00 > 0:05:03There's not enough room for anybody in it.
0:05:03 > 0:05:07Only basically two of us can sit in it. And we can't have the dogs in.
0:05:07 > 0:05:12We need it done now because a lot of the family come round at weekends,
0:05:12 > 0:05:15and you get the two dogs and everybody falling over each other.
0:05:15 > 0:05:16There's just nowhere to go.
0:05:16 > 0:05:19And in terms of the actual building work and the project,
0:05:19 > 0:05:20what would that cost?
0:05:20 > 0:05:24We've had an estimate given to us which will cost us about £20,000.
0:05:24 > 0:05:25OK.
0:05:25 > 0:05:28We will be doing lots of the work ourselves.
0:05:28 > 0:05:30That will save money that way.
0:05:30 > 0:05:33Well, hopefully, the pension will pay the biggest chunk of it,
0:05:33 > 0:05:35if nothing else, like.
0:05:35 > 0:05:38Sounds like cracking on with that extension really does
0:05:38 > 0:05:40depend on unlocking Ted's pension pot.
0:05:40 > 0:05:42But before Sarah tackles that one,
0:05:42 > 0:05:46she's going through the Penlingtons' weekly outgoings
0:05:46 > 0:05:48to see if there are any savings there to get them
0:05:48 > 0:05:52on the right financial path towards their building work.
0:05:52 > 0:05:54So, Kristine and Ted, you've been really organised.
0:05:54 > 0:05:58I've got your annual statement for your gas and electricity.
0:05:58 > 0:06:02- You're on the standard tariff with your energy supplier.- Yeah.
0:06:02 > 0:06:05Have you switched or have you thought about switching?
0:06:05 > 0:06:07We have thought about switching,
0:06:07 > 0:06:10but we didn't know whether it would make any difference.
0:06:10 > 0:06:14If you've never switched, you'll be on the standard tariff.
0:06:14 > 0:06:17But it's just not a good deal for customers.
0:06:17 > 0:06:22But having had a look at how much gas and electricity you use,
0:06:22 > 0:06:25at the moment, it's about £1,000 a year
0:06:25 > 0:06:28- for both gas and electricity, roughly.- Yeah.
0:06:28 > 0:06:33The most that you can save if you switch
0:06:33 > 0:06:36is about £286.29 a year.
0:06:36 > 0:06:38- Wow. Yeah.- Which is not to be sniffed at, really.
0:06:38 > 0:06:39No, it isn't, actually.
0:06:41 > 0:06:44In less than ten minutes and with just a few clicks,
0:06:44 > 0:06:46Sarah has put almost £300
0:06:46 > 0:06:49back in Ted and Kristine's bank.
0:06:49 > 0:06:52And if you still never switched supplier, well,
0:06:52 > 0:06:55the odds are you could probably get the same.
0:06:55 > 0:06:57Savings like those are why 3 million of us
0:06:57 > 0:07:01switched electricity supplier in 2015,
0:07:01 > 0:07:04an increase of more than 11%.
0:07:04 > 0:07:07And there's more switching magic from Sarah as she finds
0:07:07 > 0:07:10a much cheaper alternative to the Penlingtons' telephone
0:07:10 > 0:07:12and broadband package.
0:07:12 > 0:07:15There's a deal that I suggest you could go with
0:07:15 > 0:07:20that costs about £220 a year. It's 18.50 a month.
0:07:20 > 0:07:25So that's going to save you about £200.
0:07:25 > 0:07:26That's great.
0:07:26 > 0:07:29Wow, you're on fire today, Sarah.
0:07:29 > 0:07:31So there's another £200 in your pocket.
0:07:31 > 0:07:33In my pocket.
0:07:33 > 0:07:35No, in mine.
0:07:35 > 0:07:38It's a good start, but thousands of pounds are needed to begin
0:07:38 > 0:07:40the work on Ted and Kristine's house,
0:07:40 > 0:07:45so Sarah's on a mission to save the Penlingtons as much as she can...
0:07:45 > 0:07:47I've got a little surprise for you.
0:07:47 > 0:07:50I've got one more area where we can hopefully save you some money.
0:07:50 > 0:07:51- I love you.- Hopefully.
0:07:51 > 0:07:55..as she soon hones in on the vast amount of money trucker Ted
0:07:55 > 0:07:59spends in service stations up and down the country at meal times.
0:07:59 > 0:08:01So, Ted, tell me about when you do your job,
0:08:01 > 0:08:02when you're out on the road.
0:08:02 > 0:08:07- What do you spend? - I average roughly about £60 a week.
0:08:07 > 0:08:10The problem is you have to go to either the services
0:08:10 > 0:08:11or a truck stop.
0:08:11 > 0:08:14And depending where you go, it can cost you
0:08:14 > 0:08:18from £5, £7, £10 a go.
0:08:18 > 0:08:19Per meal.
0:08:19 > 0:08:22Gordon Bennett! That's more than three grand every year
0:08:22 > 0:08:24on lunches and motorway treats.
0:08:24 > 0:08:27But is there a way to save on that grub with the help
0:08:27 > 0:08:29of Kristine's cooking skills?
0:08:29 > 0:08:33All right, so, Ted, I've got a little demonstration for you.
0:08:33 > 0:08:36This is sort of showing you the kind of meals that you might
0:08:36 > 0:08:38buy in a day. Here we go.
0:08:38 > 0:08:43That's your £60 - £10 a meal, £10 a day, £60 in a week,
0:08:43 > 0:08:45- you reckon, on average. - On average, yeah.
0:08:45 > 0:08:47Now, what we've gone and done...
0:08:47 > 0:08:51We've done some shopping at the supermarket.
0:08:51 > 0:08:53Guess how much that cost me.
0:08:53 > 0:08:55- Not a clue.- £60.
0:08:55 > 0:08:58So we have got for £60...
0:08:58 > 0:09:01I think there's probably enough food there to keep you
0:09:01 > 0:09:03going for quite a few miles.
0:09:03 > 0:09:07Uh, yeah. That'll keep me going for a bit of time, that will, yeah.
0:09:07 > 0:09:11So the idea here, Ted, is that you plan ahead and that you know exactly
0:09:11 > 0:09:15what you're going to be taking out on the road with you every day.
0:09:15 > 0:09:18- Mm-hm.- And I reckon that with a bit of careful planning
0:09:18 > 0:09:20and a bit of canny shopping,
0:09:20 > 0:09:24you could probably get that £60 a week down to as little
0:09:24 > 0:09:26as £30 a week.
0:09:26 > 0:09:30Over a year, that could save Ted and Kristine
0:09:30 > 0:09:35a mouthwatering £1,500 and give him a taste of home into the bargain.
0:09:35 > 0:09:38But will truck-stop Ted go for it, though?
0:09:38 > 0:09:41- It does sound doable as long as... - You prepare it.
0:09:41 > 0:09:43Well, there is one more thing.
0:09:43 > 0:09:46I've got sort of my secret weapon, which is...
0:09:48 > 0:09:52..plastic boxes. These are going to become your new best friend.
0:09:52 > 0:09:54- So you're happy?- I'm happy.
0:09:54 > 0:09:56- I'm happy.- You're happy. - Cos he's saving money.
0:09:56 > 0:09:57And I'm happy. Cos your saving money.
0:09:57 > 0:10:00- The dogs, they're not happy, they lost the treats.- Brilliant.
0:10:00 > 0:10:02Yep, it's great.
0:10:02 > 0:10:05Now we don't all drive an articulated lorry up and down
0:10:05 > 0:10:10the country, but us Brits do waste a lot of money buying food on the go.
0:10:10 > 0:10:14But with a bit of meal planning, we could be quids in too.
0:10:14 > 0:10:19And with that £1,500, Sarah has so far managed to save Kristine
0:10:19 > 0:10:21and Ted almost two grand,
0:10:21 > 0:10:23which takes her to the big one -
0:10:23 > 0:10:27seeing what she can do to help unlock Ted's pension pot.
0:10:27 > 0:10:30But even for someone who loves this kind of stuff, that's
0:10:30 > 0:10:34an awful lot of pension information for Sarah to plough through.
0:10:34 > 0:10:37Ted, I mean, that's a lot of paperwork you've got there.
0:10:37 > 0:10:40- Have you actually been able to make sense out of it?- No.
0:10:40 > 0:10:44- None whatsoever.- What's the biggest problem? Is it...
0:10:44 > 0:10:48- Is it the language? Just explain what the biggest issue is.- It's...
0:10:48 > 0:10:53just gobbledygook. It's not English. It's just not understandable at all.
0:10:53 > 0:10:57- Shall I relieve you of the pension paperwork?- Yeah, please. Please.
0:10:57 > 0:11:01We find out later if Sarah can get Ted and Kristine any closer
0:11:01 > 0:11:02to that pension cash.
0:11:02 > 0:11:07And as she looks for other savings, she sets her sights on these two.
0:11:11 > 0:11:14And we'll be finding out whether Ted and Kristine have managed to
0:11:14 > 0:11:18wade their way through all that jargon later on in the programme.
0:11:18 > 0:11:20Now, our personal finance expert Simon Read
0:11:20 > 0:11:24is a man a little bit like myself who hates jargon with a passion.
0:11:24 > 0:11:27As do you, Steve Jenner, from the Plain English Campaign.
0:11:27 > 0:11:29They're going to be trying to help our volunteers Debbie
0:11:29 > 0:11:33and Ryan de-jargon some everyday documents that quite frankly
0:11:33 > 0:11:35- drive us all mad, don't they? - They do.
0:11:35 > 0:11:37And it's one of my bugbears.
0:11:37 > 0:11:40Just tell me why there is so much jargon in the financial industry?
0:11:40 > 0:11:42I think it's deliberate.
0:11:42 > 0:11:43I think the banks, the insurers,
0:11:43 > 0:11:47the credit card companies want to trick people into buying
0:11:47 > 0:11:49the wrong products, spending too much money on the wrong products,
0:11:49 > 0:11:52so they put confusing jargon in every single document
0:11:52 > 0:11:54so that people don't really know what they're doing.
0:11:54 > 0:11:57- It's time to change it. - Would you agree with that, Steve?
0:11:57 > 0:11:58I'd agree with that entirely.
0:11:58 > 0:12:01Here we are, in the Museum of Science and Industry.
0:12:01 > 0:12:03This is hard science all around us.
0:12:03 > 0:12:06There's nothing really scientific about the financial industry,
0:12:06 > 0:12:07it's all about prediction
0:12:07 > 0:12:09and almost guesstimates and guesswork.
0:12:09 > 0:12:12It seems to me as well there is an attempt to stop people
0:12:12 > 0:12:13actually reading through these things
0:12:13 > 0:12:16so they don't actually read what things mean.
0:12:16 > 0:12:18And because of that, you're basically saying to people,
0:12:18 > 0:12:20"I trust you, do whatever you want with me."
0:12:20 > 0:12:21And it's really dangerous.
0:12:21 > 0:12:25And, Debbie, you've been actually looking at some contracts for us.
0:12:25 > 0:12:27What have you found very confusing?
0:12:27 > 0:12:30I came across something called joint lives, last survivor.
0:12:30 > 0:12:32It sounds like an American movie, doesn't it?
0:12:32 > 0:12:35- Joint Lives, Last Survivor, The Sequel.- A horror movie.
0:12:35 > 0:12:36It's actually not.
0:12:36 > 0:12:38It's when two lives are insured,
0:12:38 > 0:12:41say a married couple or something like that, and the insurance
0:12:41 > 0:12:44company will pay out on the death of the second person.
0:12:44 > 0:12:47It's as simple as that. Why give it such a title? Which is scary.
0:12:47 > 0:12:49- I have no idea. - What have you come across, Ryan?
0:12:49 > 0:12:52I was looking at ISAs and I kept seeing the term compound interest.
0:12:52 > 0:12:54I know what it is. I know the theory behind it,
0:12:54 > 0:12:57I've studied it at school, but how does it actually work
0:12:57 > 0:13:00- in reality?- Good question. - It is a good question.
0:13:00 > 0:13:02Compound interest is confusing to all of us because we can't
0:13:02 > 0:13:05work out how much return on a savings we're actually going to get.
0:13:05 > 0:13:06In simple terms,
0:13:06 > 0:13:10if you had 10% interest on £100 every year,
0:13:10 > 0:13:14you'd think you're getting £10 interest, but the second year,
0:13:14 > 0:13:18you're getting 10% of the 10%, which means you're getting... Do you know?
0:13:18 > 0:13:20- I can't even work it out in my head. - THEY LAUGH
0:13:20 > 0:13:23- It's that complicated. - It's that confusing, isn't it?- Yes.
0:13:23 > 0:13:25And what else have you been looking at for us?
0:13:25 > 0:13:28Codicil, that was another one that I came across this morning.
0:13:28 > 0:13:31Well, strangely enough, I came across this when talking to
0:13:31 > 0:13:34a solicitor just a week or so ago in relation to a will.
0:13:34 > 0:13:37What it is, it's a document that can either replace a will or it
0:13:37 > 0:13:40can add to a will or amend a will depending on which part
0:13:40 > 0:13:41of the world you're in.
0:13:41 > 0:13:44I only found that out because the solicitor used this word to me.
0:13:44 > 0:13:45I hadn't got a clue what it meant.
0:13:45 > 0:13:48But because I'm a member of the Plain English Campaign, I'm quite
0:13:48 > 0:13:51used to saying, "Hang on, stop a minute, I don't know what you mean.
0:13:51 > 0:13:53"Please, explain what that means."
0:13:53 > 0:13:55- A lot of people just don't do that, do they?- That's absolutely right.
0:13:55 > 0:13:58- They just say, "Sign on the dotted line."- That's what happens.
0:13:58 > 0:14:01They're scared of being thought stupid or ignorant, aren't they?
0:14:01 > 0:14:04- Yeah.- When in fact, it's going to save them money,
0:14:04 > 0:14:06save them lots of worries later on
0:14:06 > 0:14:08by actually speaking up and saying, "I don't understand."
0:14:08 > 0:14:11I think we need to start fining the big financial institutions
0:14:11 > 0:14:13if they don't speak in plain English.
0:14:13 > 0:14:16And I think maybe we should get people power for all of us
0:14:16 > 0:14:18to say, "I don't understand this."
0:14:18 > 0:14:20Rather than just simply signing the forms saying,
0:14:20 > 0:14:23- "I'm up with it," say no. - Thanks a lot, guys.
0:14:23 > 0:14:25Hopefully, we'll understand jargon a little bit better.
0:14:25 > 0:14:29Now, here on Right On The Money, we're always looking for easy
0:14:29 > 0:14:32ways not just to save you money but to make it too.
0:14:32 > 0:14:34And today, we've got some corkers for you
0:14:34 > 0:14:36that really couldn't be any easier.
0:14:36 > 0:14:38They're the sort of thing you can do online,
0:14:38 > 0:14:41on your way to work or going about your daily business.
0:14:41 > 0:14:44And our technology expert David MacLaren
0:14:44 > 0:14:45has been checking them out.
0:14:48 > 0:14:513 million of us spend more than two hours travelling to
0:14:51 > 0:14:54and from work by road and rail every single day.
0:14:54 > 0:14:57No wonder we get fed up with the daily grind.
0:14:59 > 0:15:01Well, I'm about to find out if there's a way to ease the
0:15:01 > 0:15:06boredom of that journey to work and earn some extra money on the way.
0:15:06 > 0:15:09It sounds a bit too good to be true if you ask me,
0:15:09 > 0:15:10but I'm willing to give it a go.
0:15:14 > 0:15:18Today, I'm going to test out three ways you can make money on the move.
0:15:18 > 0:15:19First up, Nimber -
0:15:19 > 0:15:23a delivery service which pays you to be a courier by picking up
0:15:23 > 0:15:26and dropping off items on your normal routes to work.
0:15:30 > 0:15:33You simply log on and type in the start
0:15:33 > 0:15:34and end points of your journey.
0:15:34 > 0:15:36Then, a bit like a dating site,
0:15:36 > 0:15:39the system will match you with a delivery job along the way.
0:15:41 > 0:15:43I've arrived to pick up my first package,
0:15:43 > 0:15:48for which I'll be paid the princely sum of £25 to take it across London.
0:15:52 > 0:15:53Hello. What have we got here?
0:15:53 > 0:15:56- We've got some nice lemonades and iced teas.- Oh, fantastic.
0:15:56 > 0:15:57Thank you very much.
0:15:57 > 0:16:00Tell me, what do you get from using a service like Nimber?
0:16:00 > 0:16:03Well, we're utilising journeys that are already existing.
0:16:03 > 0:16:06Also, it's very quick and convenient to use.
0:16:06 > 0:16:07And the price is fair as well.
0:16:07 > 0:16:10Aren't you a bit concerned that I might just run off
0:16:10 > 0:16:12and drink all of this by myself?
0:16:12 > 0:16:15We're all insured up to £500 with every delivery,
0:16:15 > 0:16:17so we'll be confident that it arrives.
0:16:20 > 0:16:23Typically, how much you can earn depends on the size
0:16:23 > 0:16:27and weight of the item and the distance you have to travel.
0:16:27 > 0:16:29Right, I'm off on my first delivery.
0:16:29 > 0:16:33But before I get to my destination, I'm going to speak to David,
0:16:33 > 0:16:35who does these kind of deliveries all the time.
0:16:40 > 0:16:44- What are the craziest things that you've had to deliver?- Livestock.
0:16:44 > 0:16:46- When I say livestock, I mean... - I'm sorry?
0:16:46 > 0:16:49I mean cats. Kittens.
0:16:49 > 0:16:52- I've delivered three kittens and two puppies so far.- Right.
0:16:52 > 0:16:56And of course, these really are something that you can't find
0:16:56 > 0:16:58an easy service for normally.
0:16:58 > 0:17:01How many times a week, a month do you do this?
0:17:01 > 0:17:04It very much depends upon the schedule
0:17:04 > 0:17:09I've got from my full-time job, but typically, if the timings
0:17:09 > 0:17:14- and places are right, it can be three or four jobs per week.- Wow.
0:17:14 > 0:17:17Do you have a feel for how much you make
0:17:17 > 0:17:20maybe per week or per month, or whatever?
0:17:20 > 0:17:23It might be £100 in a week.
0:17:23 > 0:17:25Good stuff.
0:17:25 > 0:17:29Five miles later, I'm about to make £25
0:17:29 > 0:17:30just for delivering those drinks.
0:17:30 > 0:17:32Not bad for a morning commute.
0:17:34 > 0:17:35- Ah, Fred.- Hey.
0:17:35 > 0:17:37There we go. There you are, for you.
0:17:37 > 0:17:39I think I've successfully not broken any of them.
0:17:39 > 0:17:41Tell me, why do you use the Nimber service?
0:17:41 > 0:17:44For something like this which is maybe a bit big, bulky and fragile,
0:17:44 > 0:17:47it's better to get that rather than doing it through a standard courier.
0:17:47 > 0:17:49- Yeah.- And also it's got a personal touch to it as well.
0:17:49 > 0:17:52- Well, enjoy your lemonade.- OK, thank you.- Have yourself a good day.
0:17:52 > 0:17:54- Thank you very much. - Bye-bye.- Cheers.
0:17:57 > 0:18:00But that's just one way to make money on the move.
0:18:00 > 0:18:03For those who prefer a bit of mental stimulation in the morning,
0:18:03 > 0:18:06here's another way to cash in on your commute.
0:18:07 > 0:18:11So, here I am about to get on the X74 that goes from High Wycombe
0:18:11 > 0:18:12to Slough.
0:18:12 > 0:18:16Now, I bet you didn't know that you can make a bus journey
0:18:16 > 0:18:17pay for itself.
0:18:17 > 0:18:20Well, I'm about to meet someone who does exactly that,
0:18:20 > 0:18:23and they're going to show me how I can do it too.
0:18:25 > 0:18:27When she's not running her own money-saving blog,
0:18:27 > 0:18:31Emma Drew fills in online surveys for organisations like YouGov,
0:18:31 > 0:18:35MySurvey and OnePoll during her daily journey to work.
0:18:36 > 0:18:37Emma, lovely to meet you.
0:18:37 > 0:18:40Tell me, how long have you been doing these online surveys for?
0:18:40 > 0:18:42I've been doing them for about ten years now.
0:18:42 > 0:18:45Wow. And what sort of questions do they ask you?
0:18:45 > 0:18:49It could be anything from your age, your household income, what's
0:18:49 > 0:18:52your favourite colour, right down to your toilet roll preferences.
0:18:52 > 0:18:53HE CHUCKLES
0:18:53 > 0:18:57Brilliant. How much could you make, say, per month in doing this?
0:18:57 > 0:19:00I make between £50 and £60 per month doing it while commuting,
0:19:00 > 0:19:02but really, the sky is the limit.
0:19:04 > 0:19:08So to make extra cash by answering a few questions on your way to
0:19:08 > 0:19:11work, sign up with a reputable survey company,
0:19:11 > 0:19:14wait for the alerts to land in your inbox,
0:19:14 > 0:19:17zip through the questions and then claim your money.
0:19:17 > 0:19:19A note of caution, though.
0:19:19 > 0:19:22Don't ever pay to register with a survey company.
0:19:23 > 0:19:27Now, not everybody goes to work by car or by public transport,
0:19:27 > 0:19:32but even in that case, there's still a way to make money.
0:19:32 > 0:19:35But for this one, you'll have to put your running shoes on.
0:19:36 > 0:19:40Sign up to a rewards scheme like Bounts, Running Heroes or
0:19:40 > 0:19:45Sweatcoin, then connect to a fitness tracking app on your smartphone.
0:19:45 > 0:19:48Every time you run, walk, cycle or go to the gym,
0:19:48 > 0:19:52you'll earn points that can convert into vouchers for big name stores.
0:19:52 > 0:19:56Personal trainer Jodi has been doing just that for a year.
0:19:57 > 0:19:58Jodi.
0:19:58 > 0:20:01- Jodi, hi. I'm David.- How are you? Hi, David. Nice to meet you.
0:20:01 > 0:20:02What's in it for you?
0:20:02 > 0:20:04Well, at the end of the day,
0:20:04 > 0:20:07I'm earning money for doing what I love, going out and exercising.
0:20:07 > 0:20:09And in terms of points, what do they make?
0:20:09 > 0:20:12- Prizes.- Correct answer. I need to know more about the prizes.
0:20:12 > 0:20:14The prizes are fantastic.
0:20:14 > 0:20:15So it's cash rewards -
0:20:15 > 0:20:20£5, £10, £15 vouchers for hundreds of stores.
0:20:20 > 0:20:24- I've earned about £50, £60 worth of vouchers so far.- Wow.
0:20:24 > 0:20:26Any idea what you're going to spend them on?
0:20:26 > 0:20:29I'm going to keep saving up until Christmas and then use them
0:20:29 > 0:20:32- to put towards Christmas presents. - Amazing! What a great idea.
0:20:32 > 0:20:35- Right then, shall we go and build up some points?- Fabulous, let's go.
0:20:35 > 0:20:36You lead the way.
0:20:42 > 0:20:45Well, if it's easy cash you're after, how about earning
0:20:45 > 0:20:49extra money from things already at your disposal? Like Bobby has.
0:20:49 > 0:20:51But we'll talk to you in just a moment.
0:20:51 > 0:20:53But first, Alex Stephany,
0:20:53 > 0:20:56you've actually written a book about the sharing economy.
0:20:56 > 0:20:59Tell us a little bit about what it is and how it's grown.
0:20:59 > 0:21:00So, the sharing economy
0:21:00 > 0:21:04is this new online economy that's being created by people
0:21:04 > 0:21:06who are renting, sharing
0:21:06 > 0:21:09and selling their assets to one another.
0:21:09 > 0:21:12And really, what the sharing economy is doing is it's unlocking
0:21:12 > 0:21:15the value in those assets when they're not being used.
0:21:15 > 0:21:19So that might be a parking space when no car is parked there.
0:21:19 > 0:21:23It might be a car when it's parked, sat, doing nothing.
0:21:23 > 0:21:26It might be your home when you're on holiday and your home is empty.
0:21:26 > 0:21:30Bobby, this is obviously just exactly what you're doing.
0:21:30 > 0:21:32- You are renting car-park spaces. - I do, yeah.
0:21:32 > 0:21:34And how did you get involved in that?
0:21:34 > 0:21:36I had this parking space that was available
0:21:36 > 0:21:39and one of my friends actually gave me the idea, said,
0:21:39 > 0:21:42"Well, have you not heard that you can rent out your space?"
0:21:42 > 0:21:44And I thought, "That's not a bad idea, I'll give it a try."
0:21:44 > 0:21:47Hence where I started a session online
0:21:47 > 0:21:51and I found a number of companies that were offering the services.
0:21:51 > 0:21:53So it took literally five minutes,
0:21:53 > 0:21:56I signed up and I've been up for about three weeks now
0:21:56 > 0:22:00and I already made £100. So it's not bad money.
0:22:00 > 0:22:04Are there any costs involved to renting out your car parking space?
0:22:04 > 0:22:06No, there isn't besides the commission
0:22:06 > 0:22:08that the company would make.
0:22:08 > 0:22:10But that's only dependant on, obviously,
0:22:10 > 0:22:11if you have rented your space,
0:22:11 > 0:22:14and they will take a slight percentage from that.
0:22:14 > 0:22:17- So this is big business?- Absolutely. It's very big business.
0:22:17 > 0:22:20A very interesting phenomenon of the sharing economy websites
0:22:20 > 0:22:22is that they're really powered by trust.
0:22:22 > 0:22:24It's the trust between me and you,
0:22:24 > 0:22:27and I will rent you my assets and you will rent my assets.
0:22:27 > 0:22:28And even though we'll be complete strangers,
0:22:28 > 0:22:30that trust needs to exist.
0:22:30 > 0:22:34Alex, I actually hand over my parking ticket when I use them
0:22:34 > 0:22:36if there's still some money left on it, does that count?
0:22:36 > 0:22:39- Is that part of the sharing economy? - It is now.
0:22:39 > 0:22:42I think people are making money in all sorts of interesting
0:22:42 > 0:22:43and creative ways.
0:22:43 > 0:22:47Some people are in fact renting out their living rooms to become
0:22:47 > 0:22:48offices for other people.
0:22:48 > 0:22:51They'll be out at work and then someone else, a freelancer or small
0:22:51 > 0:22:56business, will set up shop and work from their home when they are away.
0:22:56 > 0:22:59People are also turning their kitchens into restaurants
0:22:59 > 0:23:02and cooking for other people. So guests will come round,
0:23:02 > 0:23:05they will effectively buy a ticket for dinner.
0:23:05 > 0:23:06Are there any potential pitfalls?
0:23:06 > 0:23:09Well, people need to really acquaint themselves with the particular
0:23:09 > 0:23:11service that they're going to be providing.
0:23:11 > 0:23:13Generally, the platforms,
0:23:13 > 0:23:16they will have the customer support that is required.
0:23:16 > 0:23:19A lot of them will have insurance policies that might protect
0:23:19 > 0:23:21not only the person renting out the assets,
0:23:21 > 0:23:23but the person renting those assets as well.
0:23:23 > 0:23:26With your new-found success, is there anything else you'd
0:23:26 > 0:23:29- consider doing in the sharing economy?- Yeah.
0:23:29 > 0:23:31I find that tools would be great.
0:23:31 > 0:23:33It would be a great way to share my tools around.
0:23:33 > 0:23:35Usually, I'll have them sitting in a garage for ages
0:23:35 > 0:23:39and just collecting dust, so why not help someone else?
0:23:39 > 0:23:40It can benefit them.
0:23:40 > 0:23:43And it might benefit me as well if I can make a bit more on the side.
0:23:43 > 0:23:45And in terms of tax implications,
0:23:45 > 0:23:49if you are earning this extra money, what would your advice be?
0:23:49 > 0:23:52My advice would be to get some proper financial
0:23:52 > 0:23:54advice from an accountant, generally,
0:23:54 > 0:23:59but with that waiver, I would say this is generally taxable income,
0:23:59 > 0:24:01and people need to be aware of that,
0:24:01 > 0:24:05but the Chancellor of the Exchequer did introduce two sharing
0:24:05 > 0:24:08economy tax breaks in the last budget which are worth checking out.
0:24:08 > 0:24:12Brilliant. It sound like there's lots of money to be made out there.
0:24:12 > 0:24:14And if you are worried about the tax implications,
0:24:14 > 0:24:18then do contact HMRC for more information.
0:24:18 > 0:24:20That's great advice, Denise.
0:24:20 > 0:24:23And it seems a bit of extra cash might be especially useful
0:24:23 > 0:24:26if you're married because a recent survey has revealed
0:24:26 > 0:24:29that to have a happy marriage,
0:24:29 > 0:24:33it's going to cost you in excess of £267,000.
0:24:33 > 0:24:36That's all the money you'll be spending on each other
0:24:36 > 0:24:38on things like holidays, gifts an pressies.
0:24:38 > 0:24:40But does everybody pay their way?
0:24:44 > 0:24:46- You treated me to go to Cuba, didn't you?- Yeah, Cuba.
0:24:46 > 0:24:50Um, and I'm not very good with presents, so I don't know.
0:24:50 > 0:24:52Probably some trainers or something.
0:24:52 > 0:24:54She probably spoils me more than I spoil her.
0:24:54 > 0:24:56Last year...
0:24:56 > 0:25:00you bought me a...Mini Cooper.
0:25:00 > 0:25:02What do I buy for you? Underpants.
0:25:02 > 0:25:05Might spend a couple thousand a year.
0:25:05 > 0:25:07But we do love a bargain. We like bargain underwear.
0:25:07 > 0:25:11We're really pleased cos we found bargain underwear today,
0:25:11 > 0:25:14a good reduction on the underpants today.
0:25:14 > 0:25:18Well, she likes champagne every weekend.
0:25:18 > 0:25:21- SHE GIGGLES - Well, we get it for £10 a bottle.
0:25:21 > 0:25:24- Don't tell them that! - Well, £10 a bottle is all right.
0:25:24 > 0:25:29Bargain hunting, that's all. I only buy it when I can buy a pack.
0:25:29 > 0:25:32We don't buy too much. We just go out for meals.
0:25:32 > 0:25:34We've got three kids together, so we don't get much time together.
0:25:34 > 0:25:37She doesn't buy me any lavish things.
0:25:37 > 0:25:38Rubbish! Rubbish.
0:25:41 > 0:25:43Now, one thing that would definitely cause you a problem
0:25:43 > 0:25:45in your relationship is
0:25:45 > 0:25:48when you keep tripping over your partner's junk.
0:25:48 > 0:25:51But fear not because that junk might actually be worth something.
0:25:51 > 0:25:54I'm here in a shop in Manchester that specialises
0:25:54 > 0:25:57in selling off unwanted items. And with me is owner, Paul.
0:25:57 > 0:25:59- Nice to meet you, Paul. - Nice to meet you, Dom.
0:25:59 > 0:26:01Antiques dealer Robert Redford. Is that really your name?
0:26:01 > 0:26:03It really is my name.
0:26:03 > 0:26:05I'll want to see your driving licence after the programme.
0:26:05 > 0:26:08- No problem.- And Vicki. Vicki, you make a few quid by selling off stuff
0:26:08 > 0:26:10- you no longer use, don't you?- Yeah.
0:26:10 > 0:26:12I moved into my house, and eight months into it,
0:26:12 > 0:26:14I noticed the shed was getting, you know, really full.
0:26:14 > 0:26:16And also with that, I was getting married,
0:26:16 > 0:26:18so trying to save for the honeymoon.
0:26:18 > 0:26:20So I thought, "Why not get rid of it?"
0:26:20 > 0:26:22So I started just selling bits online, and really quickly,
0:26:22 > 0:26:24I've just made loads of money.
0:26:24 > 0:26:26Give me an idea of the sort of things that sell quickly.
0:26:26 > 0:26:29Probably good bits of clothing that might still have the tags on
0:26:29 > 0:26:31or clearly it's only been worn once.
0:26:31 > 0:26:33You know, anything that's got a name to it.
0:26:33 > 0:26:36Even a high street name people like, you know.
0:26:36 > 0:26:37UGG boots sell quite quickly,
0:26:37 > 0:26:40so, you know, if I've used them for a couple of years
0:26:40 > 0:26:43but there's not really much damage, I've sold those for like 60 quid.
0:26:43 > 0:26:46And, Paul, gosh, your shop is absolutely amazing.
0:26:46 > 0:26:48Give us an idea of the sort of stuff you got here.
0:26:48 > 0:26:52Well, we tend to cater for everybody, really. All ages.
0:26:52 > 0:26:56Well, from Beano comics to vinyl, record players.
0:26:56 > 0:26:57They've come back into fashion,
0:26:57 > 0:27:00- the old Dansette record players from the- '60s. I remember those.
0:27:00 > 0:27:02Now, Rob, I've got come to you.
0:27:02 > 0:27:04How long have you been an antiques dealer?
0:27:04 > 0:27:07- 30 years.- Doesn't that officially make you an antique yourself?
0:27:07 > 0:27:10- Probably, yes.- It does with cars, doesn't it? They become classics.
0:27:10 > 0:27:12- You don't need to get personal. - THEY LAUGH
0:27:12 > 0:27:15- You obviously love the industry. - I do, yeah, cos it's interesting
0:27:15 > 0:27:17and you never know what you're going to come up with.
0:27:17 > 0:27:20And as Vicki has pointed out, you know, there's
0:27:20 > 0:27:23a market for everything that you can possibly come up with.
0:27:23 > 0:27:25Things like wristwatches.
0:27:25 > 0:27:29I mean, a good vintage wristwatch now will make a lot more money
0:27:29 > 0:27:32than a pocket watch made 300 years ago.
0:27:32 > 0:27:37Give me an idea of what really sells, what makes the good bucks.
0:27:37 > 0:27:40- Telephones, these.- Bakelites?
0:27:40 > 0:27:43Bakelite. One of them is £175.
0:27:43 > 0:27:44And actually, I get them converted -
0:27:44 > 0:27:48you can actually plug them in and use them as a normal phone at home.
0:27:48 > 0:27:50And that's the sort of thing... I've got to be honest,
0:27:50 > 0:27:52if I found that in my attic, straight in the bin.
0:27:52 > 0:27:53Well, yeah, most people do.
0:27:53 > 0:27:56Rob, I'm going to ask you to look into the crystal ball now
0:27:56 > 0:27:59and give all our viewers now an idea what to package away
0:27:59 > 0:28:03carefully in the shoebox in the attic that they can leave
0:28:03 > 0:28:05to their grandchildren that's going to be worth a fortune.
0:28:05 > 0:28:09Well, that's a difficult one, but for my own grandchildren,
0:28:09 > 0:28:12I think one of the things that may become iconic in the future
0:28:12 > 0:28:15and possibly make money as a result are trainers.
0:28:15 > 0:28:18You've got classic trainers or special edition trainers
0:28:18 > 0:28:21or trainers that cost a great deal of money.
0:28:21 > 0:28:23I think, in the future, they will be valuable.
0:28:23 > 0:28:25They've even have got a market online now.
0:28:25 > 0:28:27I mean, I know somebody in...
0:28:27 > 0:28:31not far from here who puts his old trainers on and sells them.
0:28:31 > 0:28:33I never thought people would buy old trainers.
0:28:33 > 0:28:36Vi, you're the new kid on the block, what would you predict is going to
0:28:36 > 0:28:39be a future classic, something valuable to store away?
0:28:39 > 0:28:42- Gadgets. So iPods, you know, iPads, things like that.- Yep.
0:28:42 > 0:28:45If you think the first couple that ever came out, they're now worth
0:28:45 > 0:28:47more than the ones you buy in the shops now.
0:28:47 > 0:28:49We're constantly wanting to renew
0:28:49 > 0:28:51and there might not even be anything wrong with the one
0:28:51 > 0:28:54you're going to get rid of, so I'd say keep it in a drawer and,
0:28:54 > 0:28:57hopefully in, what, five, ten years, it might even be worth something.
0:28:57 > 0:29:00- Yeah. Leave it to the grandkids, worth a fortune.- Why not?
0:29:00 > 0:29:03Full of good advice. THEY LAUGH
0:29:03 > 0:29:05Thanks a lot, guys. It's been lovely talking to all of you.
0:29:05 > 0:29:08Now, earlier on, we met trucker Ted and his wife, Kristine,
0:29:08 > 0:29:12who were desperately in need of some help freeing up their pension pot.
0:29:12 > 0:29:14Let's see if our advice can sort them out.
0:29:14 > 0:29:18And bear in mind, this is not just for them. It could be for you too.
0:29:19 > 0:29:22Ted and Kristine have big plans for their retirement.
0:29:22 > 0:29:25They want to put an extension on their bungalow,
0:29:25 > 0:29:29which currently is a bit of a squeeze with two massive dogs
0:29:29 > 0:29:31and visits from their extended family.
0:29:31 > 0:29:32Uh-oh!
0:29:32 > 0:29:34- ALL:- Uh-oh!
0:29:34 > 0:29:35Uh-oh indeed.
0:29:35 > 0:29:38Personal finance expert Sarah Pennells has been going
0:29:38 > 0:29:42great guns finding savings to help them on their way,
0:29:42 > 0:29:45so far freeing up £1,986
0:29:45 > 0:29:47for the couple's coffers.
0:29:47 > 0:29:50And they could boost that even more if they cut back on what
0:29:50 > 0:29:54they spend on pampered pooches Sultan and Bella.
0:29:54 > 0:29:57So, tell me about your two dogs.
0:29:57 > 0:30:00- They're really important to you, aren't they?- Yeah. They really are.
0:30:00 > 0:30:03- They're family, aren't they? The babies.- Yeah.
0:30:03 > 0:30:05You're not kidding me, Kristine.
0:30:05 > 0:30:08This couple are so in love with their dogs that they spend
0:30:08 > 0:30:10more money on food for their furry friends
0:30:10 > 0:30:12than they do on themselves.
0:30:12 > 0:30:14So, I have seen you giving Sultan and Bella
0:30:14 > 0:30:16a couple of treats this morning.
0:30:16 > 0:30:18Tell me a bit about what else you would spend on them.
0:30:18 > 0:30:20Treats, food, that kind of thing.
0:30:20 > 0:30:25I'd say, in a week, probably about £15 a week.
0:30:25 > 0:30:27What about their food?
0:30:27 > 0:30:30Their food, it depends where you buy it from.
0:30:30 > 0:30:36I mean, with the brand that they are on, it ranges from £45, £40.
0:30:36 > 0:30:38Which is what they have.
0:30:38 > 0:30:41- I'd say it lasts about a month. - OK.- It lasts about a month.
0:30:41 > 0:30:43So we're talking about £100-ish, or so.
0:30:43 > 0:30:46- Does that sound about right to you?- Yeah.
0:30:46 > 0:30:49Britain is famously a nation of animal lovers,
0:30:49 > 0:30:51so much so that, between us,
0:30:51 > 0:30:56we spend more than £4 billion a year on our beloved pets.
0:30:56 > 0:30:59But with building that extension at stake, Ted and Kristine need to
0:30:59 > 0:31:04think about splashing out slightly less on some of those treats.
0:31:04 > 0:31:08At the moment then, you reckon you spend about £60 on treats a month.
0:31:08 > 0:31:11And it's not about saying you can't spend your money on your own dogs'
0:31:11 > 0:31:15treats, but if you were to just cut that down by £10 a month,
0:31:15 > 0:31:18well, that is £120 at the end of the year.
0:31:18 > 0:31:22Yeah. It is a good idea. He likes giving them a lot of treats.
0:31:22 > 0:31:24But I'm in agreement with you, we should cut back on them.
0:31:24 > 0:31:27- I give them more than you do.- Yeah. - He's only got to look at me and
0:31:27 > 0:31:29- I'll give him... - We can cut back on them.
0:31:29 > 0:31:31Yeah, we could do. We could do.
0:31:31 > 0:31:34Don't give me those sad faces, Bella and Sultan.
0:31:34 > 0:31:38You won't escape Sarah's mission to save Mum and Dad money.
0:31:38 > 0:31:41Just think about all the space you'll have
0:31:41 > 0:31:44when the extension's done.
0:31:44 > 0:31:46Right, going home now.
0:31:47 > 0:31:50And here's another area where Sarah wants to see if she can save
0:31:50 > 0:31:54the Penlingtons some hard cash - driving.
0:31:54 > 0:31:58The couple are among the UK's 7.5 million two-car households,
0:31:58 > 0:32:02but with Ted spending most of the week in his truck,
0:32:02 > 0:32:03do they really need two cars?
0:32:05 > 0:32:08So, you've got two cars and one of them sits in the depot
0:32:08 > 0:32:11all week while you're out on the road.
0:32:11 > 0:32:15What do you pay in petrol or diesel for this car,
0:32:15 > 0:32:16say, every week?
0:32:16 > 0:32:20Well, at the minute, it'll do me this week now, and then next week,
0:32:20 > 0:32:23this weekend coming, I'll probably put £20 in it.
0:32:23 > 0:32:25And that'll last me a month.
0:32:25 > 0:32:28Wow.
0:32:28 > 0:32:30Factor in the cost of petrol, plus the road tax,
0:32:30 > 0:32:36MOT and servicing and Ted's car is costing him £1,200 a year,
0:32:36 > 0:32:39all for the convenience of doing less than 20 miles a week.
0:32:41 > 0:32:43But Ted leaves for work at funny hours,
0:32:43 > 0:32:46normally around 3.00 in the morning.
0:32:46 > 0:32:50So in his particular case, the car may well be the best option.
0:32:50 > 0:32:52The only option really for you, cos of the hours you work,
0:32:52 > 0:32:55would be a taxi because, obviously, public transport
0:32:55 > 0:32:56isn't going to be an option.
0:32:56 > 0:32:58No, it's not going to get me to work at 3.00.
0:32:58 > 0:33:00- HE CHUCKLES - And I've had a look
0:33:00 > 0:33:03at a couple of quotes from local taxi firms,
0:33:03 > 0:33:05and they reckon that they could
0:33:05 > 0:33:10quote you a sort of weekly charge of about £30.
0:33:10 > 0:33:15But that's going to be, obviously, about £1,500 over a year,
0:33:15 > 0:33:18which it sounds like it is actually not going to save you any money
0:33:18 > 0:33:22because you're spending less on your petrol
0:33:22 > 0:33:25and on your insurance and car tax.
0:33:27 > 0:33:30It sounds like selling Ted's car won't be the right thing to do
0:33:30 > 0:33:32just yet.
0:33:32 > 0:33:34But if Sarah manages to cash in that pension,
0:33:34 > 0:33:36it may well be a different kettle of fish.
0:33:36 > 0:33:42If in, say, a couple of years' time or so you're not working,
0:33:42 > 0:33:47you know, the other option might be to just hand the car back.
0:33:47 > 0:33:50If I'm not doing the hours and I'm not away as long,
0:33:50 > 0:33:53- we don't need the two cars.- Yeah.
0:33:53 > 0:33:56So as soon as Ted retires, if he sells the car,
0:33:56 > 0:33:57he can look forward
0:33:57 > 0:33:59to a yearly saving of £1,200.
0:34:02 > 0:34:04But all of that is going to depend on
0:34:04 > 0:34:07when he is able to cash in his pension, something that,
0:34:07 > 0:34:11like all too many people, he's found completely baffling.
0:34:11 > 0:34:13Up until now, that is.
0:34:13 > 0:34:15So, with Kristine off to the bingo...
0:34:15 > 0:34:18Is everyone ready for our bingo?
0:34:18 > 0:34:22..Sarah and Ted are about to focus on sorting that out.
0:34:22 > 0:34:25Ted has so far struggled sourcing the correct paperwork to
0:34:25 > 0:34:28claim his pension, but Sarah's a dab hand at this.
0:34:28 > 0:34:32And after a few clicks, she's found the forms on the internet
0:34:32 > 0:34:33and printed them off.
0:34:33 > 0:34:35And there's more good news to come.
0:34:35 > 0:34:40So I've got a form here that you can use to claim your state pension.
0:34:40 > 0:34:43Because you were 65... Was that earlier on this year?
0:34:43 > 0:34:46- February.- February. - Yeah, February this year.- OK.
0:34:46 > 0:34:49So basically, if you reach state pension age
0:34:49 > 0:34:53before the 6th of April this year, which obviously you did,
0:34:53 > 0:34:57then if you don't need to claim your state pension,
0:34:57 > 0:34:59or don't want to claim it,
0:34:59 > 0:35:02then you get an extra 10.4%
0:35:02 > 0:35:06- for every year that you put off claiming your pension.- Hm.
0:35:06 > 0:35:09Crikey! That's a top tip.
0:35:09 > 0:35:12For those who decide not to claim their state pension as soon as
0:35:12 > 0:35:14they turn 65...
0:35:14 > 0:35:176 and 5, 65.
0:35:17 > 0:35:20..the government has been adding an extra 10.4% for every year
0:35:20 > 0:35:22you wait. Bingo!
0:35:22 > 0:35:241-0 - 10.
0:35:24 > 0:35:27Now, the rules on this are changing
0:35:27 > 0:35:30and the sweetener to carry on working is only valid
0:35:30 > 0:35:35if you reached pension age before the 6th of April, like Ted.
0:35:35 > 0:35:39So for him, deferring his state pension for 12 months would
0:35:39 > 0:35:42give him an extra £645 a year.
0:35:44 > 0:35:48And if you do put off claiming it, it will be more useful for you
0:35:48 > 0:35:51- to get a bit extra every week for the rest of your life.- Hm.
0:35:53 > 0:35:57But deciding whether to claim that state pension or wait a bit
0:35:57 > 0:36:00isn't always the no-brainer it sounds, which is why Sarah
0:36:00 > 0:36:04has called in reinforcements to help Ted decide what to do.
0:36:06 > 0:36:11- Ted, Kristine, this is Alan. He's a pensions expert.- Hello, Ted.
0:36:11 > 0:36:13- Hello, Kristine.- Hello, Alan.
0:36:13 > 0:36:17'Sarah hopes that pension specialist Alan Higham can finally help Ted
0:36:17 > 0:36:18'get his head round it.
0:36:18 > 0:36:20'With the help of some fruit?'
0:36:22 > 0:36:26Well, your job income, is taxed, you pay income tax on it.
0:36:26 > 0:36:29When you get a state pension, you pay income tax on that.
0:36:29 > 0:36:33And your private pension. You've got your job, represented by the apples.
0:36:33 > 0:36:36You've got your money from the state pension via the oranges.
0:36:36 > 0:36:39And your private pension via the bananas.
0:36:39 > 0:36:42'Like almost 1,000,000 people over 65,
0:36:42 > 0:36:46'Ted's keen to continue working to bring in extra income.
0:36:46 > 0:36:50'But if he does that and claims the money from both his private
0:36:50 > 0:36:54'and state pensions, his total annual income will push him
0:36:54 > 0:36:55'into a higher tax bracket,
0:36:55 > 0:36:58'which isn't what he hoped for his savings.'
0:36:58 > 0:37:01All your life, you've wanted to be a high-rate taxpayer,
0:37:01 > 0:37:03but in retirement, you're doing it at just the wrong time
0:37:03 > 0:37:07cos you'll end up paying 40% on some of your pensioners tax.
0:37:07 > 0:37:11Yeah, that's what I was wary of, that I'd end up paying too much tax.
0:37:11 > 0:37:15And it works out then that my job is just not worth doing because
0:37:15 > 0:37:17I'll be spending it all in tax.
0:37:17 > 0:37:21'Alan reckons that waiting another year to claim his state
0:37:21 > 0:37:23'pension will work out as Ted's best option.'
0:37:25 > 0:37:28If you don't claim it, you've just effectively put it off.
0:37:28 > 0:37:31And whilst you're putting it off, it grows and gets bigger.
0:37:31 > 0:37:35For Ted, it will get bigger by just over 10% each year.
0:37:35 > 0:37:37That's not too bad if you leave that.
0:37:37 > 0:37:39That would be a good idea just to leave it.
0:37:39 > 0:37:41- Yeah, leave that alone.- Yeah.
0:37:41 > 0:37:44'In the meantime, now Sarah's helped him
0:37:44 > 0:37:49'understand what to do, Ted can claim his private pension and,
0:37:49 > 0:37:51'better still, get it in a lump sum.
0:37:51 > 0:37:55'Having it in one payment means that by the time he does start claiming
0:37:55 > 0:38:00'his state pension, his income won't slip into that higher tax bracket.
0:38:00 > 0:38:02'And best of all, it gives Ted
0:38:02 > 0:38:06'and Kristine the cash they need to get cracking on that extension.'
0:38:06 > 0:38:08So it's been worthwhile meeting Alan and having a chat?
0:38:08 > 0:38:11- Yes, definitely.- Definitely. - It's been a pleasure to meet you.
0:38:11 > 0:38:13- Great to see you.- Thank you.
0:38:13 > 0:38:16- Gold stars all around, Alan. Thank you very much.- Thanks, Sarah.
0:38:16 > 0:38:17Ted's chuffed to bits
0:38:17 > 0:38:20to have finally got his pension all figured out
0:38:20 > 0:38:24and that he won't lose more than he'd hoped to the taxman.
0:38:24 > 0:38:26And if you're in doubt about your pension,
0:38:26 > 0:38:30Citizens Advice offers free guidance and support.
0:38:30 > 0:38:32As for the Penlingtons, they could save a whole
0:38:32 > 0:38:35pile of cash by following the rest of Sarah's advice.
0:38:37 > 0:38:42£286 by switching their gas and electricity supplier.
0:38:42 > 0:38:45£200 by changing their broadband provider.
0:38:45 > 0:38:48£1,500 if Teddy gives up his motorway lunches.
0:38:48 > 0:38:50Oh, tough one.
0:38:50 > 0:38:53£120 by cutting back on Sultan and Bella's treats.
0:38:53 > 0:38:57That's a grand total of £2,106,
0:38:57 > 0:39:00which will go up another £1,200
0:39:00 > 0:39:03when Ted stops work and gives up his car.
0:39:03 > 0:39:05- Good luck.- Yeah, thanks. - Job well done, Sarah.
0:39:05 > 0:39:08- I'll speak to you again soon. Take care.- Yeah.- And you.
0:39:08 > 0:39:10- Bye.- Thanks, Sarah. - Thank you very much. Bye-bye now.
0:39:10 > 0:39:15- Amazing. Absolutely amazing. - I think it's marvellous.- It's...
0:39:16 > 0:39:18I feel like 10st lighter.
0:39:18 > 0:39:21I didn't have 10st to lose, but I do feel 10st lighter.
0:39:21 > 0:39:23- The extension, now it's a go. - It's going.
0:39:23 > 0:39:26- It's definitely going up. - Yeah, it's going up.
0:39:26 > 0:39:28And I can't shout about the kitchen being small.
0:39:28 > 0:39:31I'm the happiest man on the planet at this minute.
0:39:31 > 0:39:33I feel the happiest man on the planet.
0:39:37 > 0:39:39Now, trucker Ted is on the road,
0:39:39 > 0:39:42but Kristine is here with us along with Simon Read.
0:39:42 > 0:39:45Kristine, what's this whole experience been like
0:39:45 > 0:39:46for you and Ted?
0:39:46 > 0:39:50It been a relief to finally get everything sorted out
0:39:50 > 0:39:52and to get some money for what we wanted to do.
0:39:52 > 0:39:55So you've learned a lot from this whole experience?
0:39:55 > 0:39:56Definitely learned a lot.
0:39:56 > 0:40:00We needed someone to explain everything to us,
0:40:00 > 0:40:03and we finally got it through you.
0:40:03 > 0:40:06Ted was spending four times as much as you were on food
0:40:06 > 0:40:07when he was on the road.
0:40:07 > 0:40:10Has the Tupperware made a really big difference to you?
0:40:10 > 0:40:12It's made a great deal of difference.
0:40:12 > 0:40:16He's now eating proper meals like curries and pea soups,
0:40:16 > 0:40:19braised steak and onions,
0:40:19 > 0:40:23and stuff that he can eat and it doesn't have to be expensive.
0:40:23 > 0:40:26I mean, tackling personal finances for anybody is a bit daunting.
0:40:26 > 0:40:29We don't know where to start, what to do. Actually, we switch off.
0:40:29 > 0:40:31Most people do. Where do people start?
0:40:31 > 0:40:34Do you know what? They should start with ambitions.
0:40:34 > 0:40:36They should start with, "What do I want to do with this?"
0:40:36 > 0:40:39Because it's all about money and making the most of money,
0:40:39 > 0:40:40giving yourself choices.
0:40:40 > 0:40:43You know, some people live from day-to-day and then they say,
0:40:43 > 0:40:45"Well, I can't afford a holiday, a car, a home,"
0:40:45 > 0:40:48because they spent all their money. They haven't planned at all.
0:40:48 > 0:40:50- They made the wrong choices, to be honest.- Yeah.
0:40:50 > 0:40:53The fact is you can have the home, you can have the car,
0:40:53 > 0:40:56you can have the nicer time if you plan for it.
0:40:56 > 0:40:59And the longer you plan or it - it's important to start in your 20s
0:40:59 > 0:41:01when you're thinking about pension planning -
0:41:01 > 0:41:03the more likely you can achieve your dreams.
0:41:03 > 0:41:06It's just not a very sexy subject, though, is it, really?
0:41:06 > 0:41:08But do you know what, it is sexy when you think about those dreams.
0:41:08 > 0:41:11When you think about, "I want the holiday, I want the home,
0:41:11 > 0:41:13"I want the car, how can I achieve it?
0:41:13 > 0:41:15"Well, I save money here, there and everywhere
0:41:15 > 0:41:18"and then I can have what I want." That's what it's all about.
0:41:18 > 0:41:21Pension is just a savings scheme.
0:41:21 > 0:41:23So I suppose it's the moment of truth, Kristine.
0:41:23 > 0:41:26Are you anywhere near getting those home improvements done?
0:41:26 > 0:41:30At the moment, within the next fortnight, the extension starts.
0:41:30 > 0:41:33- Wow. Good news all around, I think, isn't it?- It's very good news.
0:41:33 > 0:41:35- Good luck with that.- Thank you.
0:41:35 > 0:41:38Well, if you'd be interested in having one of our experts
0:41:38 > 0:41:41come round to sort out your finances, then e-mail us at...
0:41:44 > 0:41:48Now, we can't promise to get to everybody who gets in touch,
0:41:48 > 0:41:50but if it is money-saving tips you're after,
0:41:50 > 0:41:51here's a good place to start.
0:41:54 > 0:41:58Our website has everything you need to sort out your spending.
0:41:58 > 0:42:00We've teamed up with the Money Advice Service
0:42:00 > 0:42:03to bring you easy-to-use moneysaving tools
0:42:03 > 0:42:06to plan your budget, calculate the cost of your car
0:42:06 > 0:42:11or credit cards and give your money a complete health check.
0:42:11 > 0:42:12Download them at...
0:42:16 > 0:42:19..where you can also take our interactive spending test.
0:42:19 > 0:42:20And you'll find plenty more tips
0:42:20 > 0:42:23and advice to keep your finances on track.
0:42:27 > 0:42:29Well, Simon's still with us and he's going to answer some
0:42:29 > 0:42:31questions from people we've met today.
0:42:31 > 0:42:35And first up, Simon, is Sandra from Bolton.
0:42:35 > 0:42:38She says, "My train to work is frequently delayed."
0:42:38 > 0:42:39I've been there.
0:42:39 > 0:42:43"Can I get a refund or money back, and how do I go about it?"
0:42:43 > 0:42:45OK, well, you know, if your train is delayed,
0:42:45 > 0:42:48you have the right to have money back. You know, the train
0:42:48 > 0:42:51operator hasn't delivered the service that it promised you.
0:42:51 > 0:42:52If it's delayed by half an hour,
0:42:52 > 0:42:55you should get up to half your money back. If it's delayed
0:42:55 > 0:42:57by more than an hour, you should get all your money back.
0:42:57 > 0:42:59And it's quite simple to apply for it.
0:42:59 > 0:43:02Now, you have to contact your own train operator.
0:43:02 > 0:43:05Just go to his website, find out what you need to do and do it
0:43:05 > 0:43:08quickly because you've got 28 days to get this money in as well.
0:43:08 > 0:43:10So you just need to do it as soon as it happens
0:43:10 > 0:43:12and you should get your money back pretty soon.
0:43:12 > 0:43:16John from Salford says he thinks he's in the wrong council tax band.
0:43:16 > 0:43:18What can he do to make sure he's in the correct one?
0:43:18 > 0:43:20OK, there could be lots of reasons
0:43:20 > 0:43:23why he's in the wrong council tax band.
0:43:23 > 0:43:25It may be that when the valuation was set,
0:43:25 > 0:43:27this was back in 1991, it was incorrect.
0:43:27 > 0:43:30It may be that the property he's in now has been changed since then.
0:43:30 > 0:43:32In which case, it could change bands.
0:43:32 > 0:43:34It's quite easy to check out
0:43:34 > 0:43:37whether you're in the right band by going to the valuation office.
0:43:37 > 0:43:39They have a website. They show you how to do it.
0:43:39 > 0:43:42You can apply, or appeal, the decision.
0:43:42 > 0:43:44There is a warning, though.
0:43:44 > 0:43:47Sometimes people are re-rated into a higher band.
0:43:47 > 0:43:49So you need to be sure about what you're doing
0:43:49 > 0:43:51because it could be a costly mistake if you go the wrong way!
0:43:51 > 0:43:53It could be a bit of a shock, couldn't it?
0:43:53 > 0:43:55- It's a gamble, isn't it? - Yeah.- Thanks, Simon.
0:43:55 > 0:43:59And thanks to all our guests today and the people of Manchester.
0:43:59 > 0:44:02- Join us next time for more moneysaving tips. Bye-bye.- Cheerio.