0:00:02 > 0:00:04Whether you're a spender or a saver,
0:00:04 > 0:00:07we 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 > 0:00:25Hello, and welcome to Right On The Money,
0:00:25 > 0:00:28the show that's here to boost your piggy bank.
0:00:28 > 0:00:30And we're going to do it in the easiest way possible.
0:00:30 > 0:00:33Today, we are on the famous ferry across the Mersey
0:00:33 > 0:00:35to the glorious city of Liverpool,
0:00:35 > 0:00:39where we're going to find out if Scousers really are savvy with their money.
0:00:39 > 0:00:42Well, I'm sure they are. I'm married to one, did you know?
0:00:42 > 0:00:45- Lucky chap!- And here's what we've got coming up on the show today.
0:00:46 > 0:00:48We come to the rescue of an ex-serviceman,
0:00:48 > 0:00:51whose money worries are getting on top of him.
0:00:51 > 0:00:54But he is savvy when it comes to some things.
0:00:54 > 0:00:56How much does it cost, Sarah?
0:00:56 > 0:00:59Well, actually, it's a special Yorkshire version. It's entirely free!
0:00:59 > 0:01:01Oh, now we're talking!
0:01:01 > 0:01:04And we've got some exclusive research into why so many of us run out of
0:01:04 > 0:01:06money long before payday.
0:01:06 > 0:01:08I think come payday, relatively speaking,
0:01:08 > 0:01:11I do live like a king compared to later in the month.
0:01:11 > 0:01:17Certainly, a marked difference from the rest of the month!
0:01:17 > 0:01:20Now, Liverpool boomed in the 19th century when it became
0:01:20 > 0:01:24one of the busiest and greatest ports in the world.
0:01:24 > 0:01:28And more modern forms of trading are still at the very heart of things today
0:01:28 > 0:01:31with a city centre buzzing full of shoppers and tourists.
0:01:31 > 0:01:34And we'll be hearing from some of those shoppers later.
0:01:34 > 0:01:36But first, a couple of hours away in Nottinghamshire,
0:01:36 > 0:01:40we've been trying to help a couple who've been through some pretty tough times in the past few years.
0:01:42 > 0:01:48Dennis Scafe and his wife, Barbara, have been together since 1969.
0:01:48 > 0:01:50I just love him.
0:01:50 > 0:01:53He's a pain in the backside at times.
0:01:53 > 0:01:56But loved him from the day I met him,
0:01:56 > 0:01:58and 45 years later we're still here.
0:01:58 > 0:02:00She's my rock.
0:02:00 > 0:02:03She stood by me through thick and thin, and there has been a lot of thick.
0:02:04 > 0:02:10Dennis served in the Army in Northern Ireland and went on to become a police officer.
0:02:10 > 0:02:14But one night back in 1997 changed their lives forever.
0:02:14 > 0:02:18The couple were woken up by a car crashing into their neighbour's front garden.
0:02:18 > 0:02:23Dennis went to investigate, and found himself in a struggle with the car's driver.
0:02:23 > 0:02:26To cut a long story short, he ended up...
0:02:27 > 0:02:31..with me on the floor, face down with his arm around my neck.
0:02:32 > 0:02:36And my airway was completely blocked.
0:02:36 > 0:02:37I couldn't breathe.
0:02:37 > 0:02:43The next thing I knew, there was a third person and it turned out to be Barbara.
0:02:43 > 0:02:45So I thought, "Well, there's only one thing here."
0:02:45 > 0:02:48So, I grabbed his goolies.
0:02:48 > 0:02:50And he jumped up.
0:02:51 > 0:02:55Got off Dennis. If I hadn't done that, Dennis would have been dead by now.
0:02:55 > 0:02:57There's no doubt about that.
0:02:57 > 0:02:58And...
0:03:01 > 0:03:05It were a bit frightening at the time, but it's laughable after.
0:03:05 > 0:03:09So I'm known as Grabby Goolies Barbara!
0:03:09 > 0:03:11And I've got a certificate for it!
0:03:11 > 0:03:14Barbara may have won a bravery award,
0:03:14 > 0:03:19but nearly losing his life left Dennis with post-traumatic stress disorder.
0:03:19 > 0:03:22One minute I'll be hyper and peaking,
0:03:22 > 0:03:26and the next day I can be down in the dumps and just don't want to speak to anyone.
0:03:26 > 0:03:28But she's learned to live with it.
0:03:28 > 0:03:31And God bless her, she's always loved me.
0:03:31 > 0:03:35And she continues to live with me despite the problems,
0:03:35 > 0:03:38whereas a lot of soldiers have lost their wives because of PTSD.
0:03:38 > 0:03:40So it's great that we...
0:03:41 > 0:03:45- ..that she still supports me. - Daft bat!
0:03:45 > 0:03:50Dennis has set up a weekly breakfast club for other former forces personnel.
0:03:50 > 0:03:53And it's a great support for those who, like him,
0:03:53 > 0:03:55have been left with PTSD.
0:03:55 > 0:03:59But the couple are grappling with money problems, too.
0:03:59 > 0:04:03After a failed investment, Dennis was forced out of retirement.
0:04:03 > 0:04:07But because of his condition, he can't work the hours he needs.
0:04:07 > 0:04:10He and Barbara have now racked up credit card debt
0:04:10 > 0:04:12and still have a mortgage to pay.
0:04:12 > 0:04:16So we sent him personal finance expert Sarah Pennells to see
0:04:16 > 0:04:20if she can save them some cash and help take the pressure off Dennis.
0:04:20 > 0:04:24Tell me about your overall financial picture.
0:04:24 > 0:04:27- Credit cards.- Yeah, the credit card is the main beast.
0:04:27 > 0:04:30We're trying to recover that slowly but surely.
0:04:30 > 0:04:32But the credit card certainly is the one that
0:04:32 > 0:04:35kept us from bankruptcy, if you like.
0:04:36 > 0:04:39So that's the thing we want to clear now.
0:04:39 > 0:04:42Particularly now I'm 65 and Barbara's the same age.
0:04:45 > 0:04:48It's... It's the thing that worries me the most.
0:04:48 > 0:04:49Particularly with my condition.
0:04:49 > 0:04:53So the credit card debt is the thing that you sort of...
0:04:53 > 0:04:54Does that keep you awake at night?
0:04:54 > 0:04:56Yeah. It does. Yeah.
0:04:56 > 0:05:01Their £10,000 debt is a major burden for these two.
0:05:01 > 0:05:04And they're particularly hopeful that Sarah can help,
0:05:04 > 0:05:08because they've got big plans for what they'd like to do to the house.
0:05:08 > 0:05:10I'd like to extend me kitchen.
0:05:10 > 0:05:12OK. What would you...
0:05:12 > 0:05:14What would you like to do, and why would you like to do it?
0:05:14 > 0:05:18Dennis needs a bit of me time.
0:05:18 > 0:05:22When he's a bit low with his mental condition,
0:05:22 > 0:05:24he's better out the way of everybody.
0:05:24 > 0:05:30- I am.- So if there was somewhere for him to sit, where he was on his own.
0:05:30 > 0:05:34If Dennis and Barbara are to have any hope of extending their kitchen,
0:05:34 > 0:05:38the first thing they need to do is to get rid of the credit card debt
0:05:38 > 0:05:40they're so worried about.
0:05:40 > 0:05:44And Sarah has found a way to smash that to bits.
0:05:44 > 0:05:47By tapping into one of Dennis's favourite hobbies!
0:05:47 > 0:05:49Tae kwon do.
0:05:49 > 0:05:55He does twice it a week with grandson Jack after taking it up to help with his PTSD.
0:05:55 > 0:05:59Well, you know my mental health condition with post-traumatic stress disorder.
0:05:59 > 0:06:01This is great therapy for it.
0:06:01 > 0:06:03And I find this just great.
0:06:03 > 0:06:08Within three years I may, may be a black belt. But I'll also be 68!
0:06:11 > 0:06:15But this future black belt is currently being arm locked by the massive
0:06:15 > 0:06:18debt that's built up on his three credit cards.
0:06:18 > 0:06:23Luckily, Sarah can sort that out, with the help of Dennis's instructor,
0:06:23 > 0:06:26Master Blinstone.
0:06:26 > 0:06:30Dennis, we know you've got different credit cards at different interest rates.
0:06:30 > 0:06:33We're going to work out how we can deal with them, get you a better rate.
0:06:33 > 0:06:35The first one is a store card.
0:06:35 > 0:06:41No, you only owe £50 on that but it's a very hefty rate of 29.9%.
0:06:41 > 0:06:45So, I reckon pay that £50 off, knockout blow, get rid of it.
0:06:45 > 0:06:49To show you what we mean, will bring in the help here of Master Blinstone.
0:06:49 > 0:06:51Ma'am.
0:06:55 > 0:07:00Strewth! Financial advice doesn't come more hard-hitting than that!
0:07:00 > 0:07:01Good work, Sarah!
0:07:01 > 0:07:05Let's see what she makes of Dennis's next credit card.
0:07:05 > 0:07:08So, Dennis, the next card we're going to look at is your own card.
0:07:08 > 0:07:11Well, the interest rate on that is 0%,
0:07:11 > 0:07:14so I think the best thing to do is keep that one.
0:07:14 > 0:07:16I agree with that, Sarah, thank you.
0:07:16 > 0:07:18Dennis, the last card is actually Barbara's card.
0:07:18 > 0:07:21Now, the interest rate on that is quite high, isn't it?
0:07:21 > 0:07:23- 15.7%.- Yes, it is.
0:07:23 > 0:07:27Well, I've been doing a bit of looking around, and I reckon I can smash that rate.
0:07:27 > 0:07:30So, I think time for you, Robin, to step away.
0:07:31 > 0:07:34This is the Scafes' main credit card.
0:07:34 > 0:07:39Between them, they've used the cards to borrow approximately £10,000.
0:07:39 > 0:07:42But Sarah's found a deal that will allow them to transfer their
0:07:42 > 0:07:44outstanding balance onto a new card,
0:07:44 > 0:07:49one that would give them a 0% interest rate for the next 15 months.
0:07:49 > 0:07:53These kinds of balance transfers can be a really effective first step in
0:07:53 > 0:07:55tackling credit card debt.
0:07:55 > 0:07:57So if you've got repayments that are mounting up,
0:07:57 > 0:07:59it could be an option for you, too.
0:08:02 > 0:08:04Sarah reckons this could save Dennis
0:08:04 > 0:08:06and Barbara up to £1,000
0:08:06 > 0:08:08in interest over the 15 months.
0:08:08 > 0:08:10Talking to a Yorkshire lad!
0:08:10 > 0:08:13Thought that would go down well!
0:08:13 > 0:08:16Back home, Sarah has a heart-to-heart with Barbara,
0:08:16 > 0:08:23to understand why sorting out their finances and renovating their house is so important.
0:08:23 > 0:08:26Do you feel that the fact that you sort of both worry about
0:08:26 > 0:08:31this credit card debt, is that something that you think affects, you know, both of you?
0:08:31 > 0:08:34It affects both of us, but it affects Dennis more than me.
0:08:34 > 0:08:41Because he's got this PTSD and he can't cope with the worry and the stress.
0:08:41 > 0:08:46Now, I know how you'd like to do things to the house and to extend it,
0:08:46 > 0:08:50because of what Dennis has said about how he feels and how he wants to have this other room.
0:08:50 > 0:08:53Yeah, yeah. It'd be a good idea.
0:08:53 > 0:08:56He does need a bit of space on his own when he's really ill.
0:08:57 > 0:08:59To do it is the way we're thinking of doing it.
0:08:59 > 0:09:03Because we've only got one living room and... It's...
0:09:03 > 0:09:06..he can't have his peace and quiet when he's ill.
0:09:06 > 0:09:11Sounds like these home improvements might improve Dennis and Barbara's life, too!
0:09:11 > 0:09:17So, Sarah has asked builder Sean Wilson to come and draft a plan for the extension.
0:09:17 > 0:09:20Right, Sean and Sarah, this is the kitchen,
0:09:20 > 0:09:22which you can see is quite confined.
0:09:22 > 0:09:28One of the things I was going to suggest is to move this wall level with the garage.
0:09:28 > 0:09:31It'll give you a nice big open plan room.
0:09:31 > 0:09:35You'll have a perfect view across those open fields that you've got there.
0:09:35 > 0:09:36You've got a brilliant view.
0:09:36 > 0:09:40- I like the sound of that! - So, what do you think, Dennis, of what you've heard so far?
0:09:40 > 0:09:42Just the ideas that Sean's outlined for you?
0:09:42 > 0:09:46Well, I'm a Yorkshire lad, so I've got, like, short arms and long pockets!
0:09:46 > 0:09:49So, the cheaper the better.
0:09:49 > 0:09:53Time for the moment of truth. How much is this going to cost?
0:09:53 > 0:09:57Right, well, I've done some costings based on this idea.
0:09:57 > 0:09:59Just to give you...
0:09:59 > 0:10:02some idea of what the cost will be.
0:10:02 > 0:10:05And the whole cost of the whole extension.
0:10:05 > 0:10:09That's the price - will be £27,360.
0:10:09 > 0:10:12- OK.- What do you reckon to that, Dennis?
0:10:12 > 0:10:16Let me get my tablets and I'll answer that one.
0:10:16 > 0:10:19Oh, dear! But fear not, Dennis.
0:10:19 > 0:10:21Because Sean may be good at knocking down walls,
0:10:21 > 0:10:25but Sarah is exceptional at knocking down prices.
0:10:25 > 0:10:29So, Sean, is there any way that we can get the cost of this down a bit for Dennis?
0:10:29 > 0:10:35If you decide to have a large pair of sliding doors as opposed to the folding doors,
0:10:35 > 0:10:37then they would be half the cost.
0:10:37 > 0:10:41So you'd probably save £1,500 just on those doors themselves.
0:10:41 > 0:10:44- OK.- And then, obviously there's the lantern light as well.
0:10:44 > 0:10:47It'd save you guys at least £3,000.
0:10:47 > 0:10:51OK, what about other ways that Dennis could cut back?
0:10:51 > 0:10:53Any other savings that could be made?
0:10:53 > 0:10:56Yeah, there's lots of other ways to save on an extension.
0:10:56 > 0:10:59Dennis is quite good at do-it-yourself,
0:10:59 > 0:11:03so Dennis could do a lot of the work himself to bring down the cost. And he quite enjoys do-it-yourself.
0:11:03 > 0:11:07- I'm quite happy to do that. - If we just add these up, what do you think the cost might be then?
0:11:07 > 0:11:12I think, Dennis, you could be looking at well under £20,000.
0:11:12 > 0:11:15- Well under?- Well under £20,000.
0:11:15 > 0:11:19- That's more in line with what you were thinking.- Yes, yes, indeed.
0:11:19 > 0:11:23Gordon Bennett! Just by negotiating on the spot and taking on some of the work himself,
0:11:23 > 0:11:28Dennis could bring down the price by not far off £10,000.
0:11:28 > 0:11:31Time to start thinking about how to fund this project,
0:11:31 > 0:11:35and Sarah's already identified plenty of ways Dennis and Barbara could slash
0:11:35 > 0:11:38what they pay on their household bills,
0:11:38 > 0:11:40starting with their electricity.
0:11:40 > 0:11:43So, I've had a look at your bills earlier on.
0:11:43 > 0:11:46Tapped in the details
0:11:46 > 0:11:50and the cheapest deals that I can find you,
0:11:50 > 0:11:54and based on how much electricity you've used in the last 12 months,
0:11:54 > 0:11:58will save you about £198 a year.
0:11:58 > 0:12:00- Not to be sniffed at, is it? - Yeah. Not to be sniffed at, no.
0:12:00 > 0:12:03It's better in my pocket than theirs!
0:12:03 > 0:12:05That's the spirit, Dennis.
0:12:05 > 0:12:06And while we're on
0:12:06 > 0:12:08the subject of electricity,
0:12:08 > 0:12:13here's a mystery that so far our former copper hasn't been able to solve.
0:12:13 > 0:12:16He had solar panels installed five years ago,
0:12:16 > 0:12:20hoping it would reduce their electricity bill. But it hasn't.
0:12:21 > 0:12:24The electricity bills don't reflect any benefit
0:12:24 > 0:12:28in that we've only got a two-bedroom bungalow.
0:12:28 > 0:12:33And the electricity bills are just as much as if we hadn't got the solar panels.
0:12:33 > 0:12:36So, what I'm also going to do is to get somebody who is an expert to come and
0:12:36 > 0:12:40meet you and have a chat, and just find out whether this is all working
0:12:40 > 0:12:44as it should do, and whether you're getting the deal you think you signed up for.
0:12:44 > 0:12:48- That'd be brilliant, thank you very much.- Thank you very much.
0:12:48 > 0:12:51We'll find out later if there is any ray of sunshine over these solar
0:12:51 > 0:12:56panels. And Sarah's got a whole host of other savings for Dennis and
0:12:56 > 0:12:59Barbara, some of which may well work for you, too.
0:13:03 > 0:13:06And we'll hear from Dennis and Barbara a little later on.
0:13:06 > 0:13:09Now, money expert Andy Webb is with us.
0:13:09 > 0:13:13Andy, most people on this ferry are commuters. They're on their way to the daily grind.
0:13:13 > 0:13:16But that's a place you'd think you could be saving money.
0:13:16 > 0:13:18But it's actually the opposite, isn't it?
0:13:18 > 0:13:20- Why?- Yeah, we call it invisible spending,
0:13:20 > 0:13:24because there are just things that we, you know, don't even think about buying.
0:13:24 > 0:13:26- So, it's a coffee on the way to work.- Guilty!
0:13:26 > 0:13:30- Maybe it's a chocolate bar in the afternoon.- Not guilty!
0:13:30 > 0:13:33It doesn't think it's going to affect our bank balance
0:13:33 > 0:13:37because it's small amounts of money every day. So it becomes a habit.
0:13:37 > 0:13:40We're not saying rob ourselves - we like our coffee and chocolate bars.
0:13:40 > 0:13:42Yeah, everyone likes a little treat.
0:13:42 > 0:13:45Yeah, you don't want to cut these out completely.
0:13:45 > 0:13:47But they do really add up.
0:13:47 > 0:13:50Two quid here, a fiver there and before you know it,
0:13:50 > 0:13:55it's a huge amount of money which you spent on stuff which maybe you could kind of get cheaper elsewhere.
0:13:55 > 0:13:57So, if you save £5 a day,
0:13:57 > 0:14:00so maybe that's bringing your own packed lunch rather than buying it.
0:14:00 > 0:14:03Over the entire year, that's £1,300.
0:14:03 > 0:14:07It's a big amount of money you can cut just by thinking about it differently.
0:14:07 > 0:14:09So, early preparation will mean saving pounds, basically?
0:14:09 > 0:14:12- Yeah, absolutely.- OK. Shall we have a chat with some commuters?
0:14:12 > 0:14:14- Yeah, let's!- I'll lead.
0:14:15 > 0:14:20We want to know if this lot are guilty of overspending while they're at work.
0:14:20 > 0:14:24Can I ask how much you actually spend on your lunch per day?
0:14:24 > 0:14:26Um, about three to four pounds.
0:14:26 > 0:14:30Over the course of the year that can be nearly £700 or more.
0:14:30 > 0:14:33- Are you surprised by that figure? - Yes, I am, yeah.
0:14:33 > 0:14:36I would prefer to have something that I like for lunch,
0:14:36 > 0:14:41rather than worry excessively about saving pennies.
0:14:41 > 0:14:42I try not to think about it!
0:14:42 > 0:14:45Try not to think about how much I've spent.
0:14:45 > 0:14:48On average, at the moment, I think we're spending -
0:14:48 > 0:14:51and I say we, because my colleagues are the same -
0:14:51 > 0:14:55about £5, £5.50 a day on lunch.
0:14:55 > 0:15:00And then that's every day, so it's on top of your travel and everything else! So, it's not cheap.
0:15:01 > 0:15:02- Always buy lunch, yeah.- Yeah?
0:15:02 > 0:15:04So, how much you spend on it?
0:15:04 > 0:15:10It normally varies between about £2 and £4 or £5, top end.
0:15:10 > 0:15:12You can get lunch for £2?!
0:15:12 > 0:15:15- Yes.- You sound like a very shrewd man.
0:15:15 > 0:15:17- Is he quite sensible? - He's been well trained!
0:15:17 > 0:15:21If you're here in the captain's quarters all day long,
0:15:21 > 0:15:25it must be quite hard for you to spend money on a daily basis. Is it?
0:15:25 > 0:15:28I don't eat sweets, so I keep away from the sweeties.
0:15:28 > 0:15:30- Just drink me tea!- You seem quite savvy with your money.
0:15:30 > 0:15:34- He sounds very frugal.- Thank you. - You've got a big smile on your face.
0:15:34 > 0:15:38- You're happy, aren't you?- Yeah. - OK. Can I press your button, John?
0:15:38 > 0:15:41- That's the one.- Don't let him! - HORN BLARES
0:15:41 > 0:15:43I didn't know it was going to be that loud!
0:15:43 > 0:15:46Told you it was loud, Dom! Gordon Bennett!
0:15:46 > 0:15:49I tell you what came across to me chatting to some of the people on
0:15:49 > 0:15:53the ferry, there. Some people are wasting so much money on coffees
0:15:53 > 0:15:56and lunches and sometimes the extras they don't particularly need.
0:15:56 > 0:15:59Quite often, come payday, they're skint!
0:15:59 > 0:16:02In this research that we've done for the Money Advice Service,
0:16:02 > 0:16:05we found a third of our wages are spent within just seven days.
0:16:05 > 0:16:08- A week?!- Yeah, a third of their money is gone within a week.
0:16:08 > 0:16:10That's some quite staggering figures!
0:16:10 > 0:16:12Yes! One week and you're skint?
0:16:12 > 0:16:16Exactly! And Andy's been meeting up with the locals in Liverpool to find
0:16:16 > 0:16:18out what they think of that research.
0:16:20 > 0:16:23Now, anyone working looks forward to payday.
0:16:23 > 0:16:25But for many of the Liverpudlians I met,
0:16:25 > 0:16:28it's the moment they really let loose.
0:16:28 > 0:16:32Because I get paid every Friday, basically it goes on drink every Friday.
0:16:32 > 0:16:34Every weekend is a going out weekend!
0:16:34 > 0:16:36Come payday, relatively speaking,
0:16:36 > 0:16:38I do live like a king compared to later in the month.
0:16:38 > 0:16:41Certainly, it's a marked difference from the rest of the month.
0:16:42 > 0:16:45For most of the people I spoke to,
0:16:45 > 0:16:49paying out a third of their wages within the first week was the norm.
0:16:49 > 0:16:52And in the survey by the Money Advice Service for this show,
0:16:52 > 0:16:5615% of the people asked said it was a real struggle to make their wages
0:16:56 > 0:16:58stretch until the next payday.
0:16:58 > 0:17:01So, where is all our money going?
0:17:01 > 0:17:03Rent, bills, car.
0:17:04 > 0:17:06- Same for you?- Yeah, same for me, yeah.
0:17:06 > 0:17:08Sometimes, I just do like crazy stuff.
0:17:08 > 0:17:12Just like spend £50, £40 on takeaways or just like,
0:17:12 > 0:17:14buy a jacket that I know that...
0:17:14 > 0:17:16that it's just stupidly expensive that I would never wear.
0:17:16 > 0:17:22We have lots of habits and things that go on below the level of consciousness.
0:17:22 > 0:17:25So we're doing lots of things that result in spending
0:17:25 > 0:17:29money. That afterwards, "Oh, why did I do that?
0:17:29 > 0:17:31"How did I manage to spend all that?"
0:17:31 > 0:17:34And we genuinely don't know most of the time.
0:17:34 > 0:17:38Our downfall, actually, is that we go out and have a coffee.
0:17:38 > 0:17:40So, I'll buy one day, she'll buy another.
0:17:40 > 0:17:42We're talking about £5 for a cup of coffee.
0:17:42 > 0:17:47And we are conscious that that's a hell of a lot of money to spend.
0:17:47 > 0:17:52People will get a coffee when they go to work or when they go out shopping or something.
0:17:52 > 0:17:55And they'll do that and it's only a couple of quid so it
0:17:55 > 0:17:56doesn't seem like it matters.
0:17:58 > 0:18:02But then what will happen is that they'll do that every day five days a week, that's £10.
0:18:02 > 0:18:05And a month is £40, £50.
0:18:05 > 0:18:07Every year, that's £500, £600 net.
0:18:08 > 0:18:12In our survey, a fifth of people told us they go on a big old
0:18:12 > 0:18:15spending spree straight after payday.
0:18:15 > 0:18:20And the top three things they blow their cash on are clothes, takeaways,
0:18:20 > 0:18:21and nights out.
0:18:23 > 0:18:25But when the spending hangover kicks in,
0:18:25 > 0:18:28how do we get by for the rest of the month?
0:18:28 > 0:18:33Well, it seems that most of the Scousers I met are dab hands at making those pennies last.
0:18:34 > 0:18:37I'll budget going-out money within my weekly budget,
0:18:37 > 0:18:41so it's, like, I'll know I'll have maybe £30, £40 to spend on going out.
0:18:41 > 0:18:43Towards the end of the month, it's a lot more pressure.
0:18:43 > 0:18:45You're a bit more careful about what you do.
0:18:45 > 0:18:48I always, like, divide it by how many weeks are left.
0:18:48 > 0:18:51And then, like, live to that budget as much as I can.
0:18:51 > 0:18:54I work out what I've got left and divide that.
0:18:54 > 0:18:58- You've almost got, like, a daily or weekly budget to kind of get you through?- Yes.
0:18:58 > 0:19:02And you find that works perfectly well for you. So you get to the start of the next month...
0:19:02 > 0:19:04"Perfectly" is a bit of a... Ha-ha!
0:19:06 > 0:19:11I heard plenty of ideas on what to do if the cash does run out.
0:19:11 > 0:19:13You always struggle after Christmas, with things to pay off.
0:19:13 > 0:19:15And what do you do?
0:19:15 > 0:19:17Do you kind of have to borrow money for that?
0:19:17 > 0:19:22No. Just, like, don't go out and live off pasta and chopped tomatoes!
0:19:22 > 0:19:24- Does it work?- Sometimes.
0:19:24 > 0:19:27And then sometimes I might have to go to my savings.
0:19:27 > 0:19:28You change your diet and stuff.
0:19:28 > 0:19:32Get down to Super Noodles and baked beans and no more Nando's,
0:19:32 > 0:19:34no more Domino's, no more McDonald's.
0:19:34 > 0:19:38Counting down the days until payday. Sort of baked beans and porridge oats, really!
0:19:38 > 0:19:42- That sort of stuff.- I have an idea in my head of what I can spend, what I can't.
0:19:42 > 0:19:47Then again, I do juggle it between a credit card and what I've actually got in my account.
0:19:47 > 0:19:51Maybe I would not go out for meals as much or go to cheaper places to eat.
0:19:51 > 0:19:54Have you had any situations, though, where you've been really tight,
0:19:54 > 0:19:56you've had to try and get some extra cash?
0:19:56 > 0:19:59Oh, yeah, yeah. I have done that.
0:19:59 > 0:20:03In that case I would normally just go to my parents!
0:20:03 > 0:20:05In fact, when their wages run out,
0:20:05 > 0:20:1116% of the people in our survey admitted they asked family and friends to bail them out.
0:20:11 > 0:20:14Another 28% turned to credit or store cards.
0:20:15 > 0:20:19But 36% told us they just rein in what they spend.
0:20:21 > 0:20:24So here's my advice for how to make each month's paycheque last.
0:20:25 > 0:20:27So, we know that once you get paid,
0:20:27 > 0:20:29some of the first things to go are the bills,
0:20:29 > 0:20:31and they're the biggest things as well.
0:20:31 > 0:20:33You can make some massive savings.
0:20:33 > 0:20:37Don't put off switching your energy, don't put off your broadband,
0:20:37 > 0:20:39changing that or looking for a better mobile deal.
0:20:39 > 0:20:41We do go, "Oh, too much hassle!"
0:20:41 > 0:20:45But actually, they can be really easy and they can save you hundreds over a year.
0:20:45 > 0:20:48Another thing that's worth considering is when you go to the
0:20:48 > 0:20:51supermarket or the high street,
0:20:51 > 0:20:53you can make quite a few savings as well.
0:20:53 > 0:20:56Just by being a bit smarter shopping and thinking about prices.
0:20:56 > 0:20:59Don't just grab the thing you want. Look for the best value.
0:20:59 > 0:21:03And the final thing you can do is what I call those daily habits,
0:21:03 > 0:21:07those things that you probably aren't conscious of spending on, but they really add up.
0:21:07 > 0:21:09So it's grabbing a coffee or a chocolate bar.
0:21:09 > 0:21:13If you can just stop yourself from that unconscious spending,
0:21:13 > 0:21:16you'll find those savings can be quite, quite big.
0:21:16 > 0:21:19And they're a fantastic way to make sure you do have more money
0:21:19 > 0:21:21by the end of the month.
0:21:23 > 0:21:27Now, keeping food to a budget is no easy task for anybody.
0:21:27 > 0:21:29But here in Liverpool, they seem to have cracked it.
0:21:29 > 0:21:34Because they've got their very own dish called, you've guessed it, Scouse.
0:21:34 > 0:21:39And I'm in the famous Maggie May's cafe with owner Andy Lee and local historian Mike Kelly.
0:21:39 > 0:21:42I've got to say, it looks absolutely lovely.
0:21:42 > 0:21:45Tell me what's in it. I'm assuming, it's very cheap to make.
0:21:45 > 0:21:49It is. What's in it is there's beef, there's carrots,
0:21:49 > 0:21:53there's onions and there's swedes in there. It's a hearty meal.
0:21:53 > 0:21:56It'll keep you going all day long.
0:21:56 > 0:22:00And it's quite an inexpensive meal to prepare.
0:22:00 > 0:22:05It can feed a family of four to six, you know, easily under a tenner.
0:22:05 > 0:22:06It looks like the sort of good, hearty meal
0:22:06 > 0:22:10that probably would have been served pre-, post-Second World War time.
0:22:10 > 0:22:11Yeah, definitely.
0:22:11 > 0:22:12But what it was originally done,
0:22:12 > 0:22:15it was brought over by Scandinavian sailors years ago.
0:22:15 > 0:22:18And it was originally called lobscouse.
0:22:18 > 0:22:22And it was anglicised and shortened over time.
0:22:22 > 0:22:25We were called Scousers, and that's where we've originated from
0:22:25 > 0:22:28and that's where we've got our nickname from. Scousers.
0:22:28 > 0:22:29- It came after that dish?- Yeah.
0:22:29 > 0:22:32Before I come to you, can I just have a little try of that?
0:22:32 > 0:22:33You certainly can.
0:22:33 > 0:22:35- Get something down me Gregory! - Go on, fill your boots.
0:22:35 > 0:22:37You don't know what I'm talking about, do you?
0:22:37 > 0:22:40Down the Gregory Peck, down me neck.
0:22:40 > 0:22:41Right.
0:22:43 > 0:22:46That's a lovely bit of beef!
0:22:46 > 0:22:47Mike, do excuse me eating.
0:22:47 > 0:22:49Can you tell us a bit about the history of this?
0:22:49 > 0:22:53Well, going back to the days when we had families of eight and nine
0:22:53 > 0:22:57and ten, up to twelve children in a family.
0:22:57 > 0:22:59So, if a mother had a big pan,
0:22:59 > 0:23:02she could do a big pan of Scouse
0:23:02 > 0:23:06and she could leave it there simmering on the stove all day.
0:23:06 > 0:23:10And the longer she left it on the stove, it goes a little bit thicker
0:23:10 > 0:23:11and a little bit thicker.
0:23:11 > 0:23:13Stocks up.
0:23:13 > 0:23:17And the flavour - the flavour you get from it is just unbelievable.
0:23:17 > 0:23:20Just what you needed when you had big families.
0:23:20 > 0:23:21Low-maintenance.
0:23:21 > 0:23:24It almost cooks itself once you put it on the stove.
0:23:24 > 0:23:28It did. This is one of the reasons why the Liverpool people,
0:23:28 > 0:23:31through thick and thin, through the poverty, through the bad times,
0:23:31 > 0:23:35the lean times, always had that as a standby.
0:23:35 > 0:23:39Without that, I think half of us would have starved in Liverpool,
0:23:39 > 0:23:40to be quite honest!
0:23:40 > 0:23:42Now, Mike, Liverpool has got its Scouse.
0:23:42 > 0:23:46We've got our jellied eels and our pie and mash.
0:23:46 > 0:23:48There's variations all around the country, isn't there?
0:23:48 > 0:23:50Of course there is, yeah.
0:23:50 > 0:23:52You've got the haggis up in Scotland.
0:23:52 > 0:23:55That again was another working-class dish
0:23:55 > 0:24:00when people couldn't afford good food, because people were so poor.
0:24:00 > 0:24:04And most the stuff that was in haggis in those days was the offal.
0:24:04 > 0:24:08You know, the cheapest pieces you could get of meat.
0:24:08 > 0:24:11But now, it's a delicacy, as you know!
0:24:11 > 0:24:13What else have we got?
0:24:13 > 0:24:16There's a black pudding, just up the road in Bury.
0:24:16 > 0:24:19And I tell you what, you get black pudding from Bury. They're the best.
0:24:19 > 0:24:23If you want a really good meat pie, you go to Wigan.
0:24:23 > 0:24:25Because believe you me,
0:24:25 > 0:24:30until you've tasted a meat pie or a meat and potato pie,
0:24:30 > 0:24:32then you've never been to Wigan!
0:24:32 > 0:24:35Let's just see. So we've got pies from Wigan, black pudding from Bury,
0:24:35 > 0:24:37Scouse from Liverpool. No surprises there!
0:24:37 > 0:24:39Pie and mash in London, jellied eels in London.
0:24:39 > 0:24:43- We've got two.- That's right.- What we're talking about here is quality,
0:24:43 > 0:24:45cost, of course, that comes into it.
0:24:45 > 0:24:47- Always does.- And quantity.
0:24:47 > 0:24:50You're making a lot of good quality food at good value for money.
0:24:50 > 0:24:53Denise, you need to get down here and try some of this scran,
0:24:53 > 0:24:56because it's lovely and it is very cost-effective.
0:24:56 > 0:24:58It might even give jellied eels a run for their money!
0:24:58 > 0:25:01- Definitely.- Not definitely, maybe!
0:25:01 > 0:25:02All right!
0:25:02 > 0:25:05Thanks, Dom. Save me a bit for later.
0:25:05 > 0:25:07Now, there's been a huge surge
0:25:07 > 0:25:10in how much we buy using contactless cards.
0:25:10 > 0:25:13It really does seem we're moving closer to being
0:25:13 > 0:25:15a totally cashless society.
0:25:15 > 0:25:19But does this mean you'll actually end up spending more?
0:25:23 > 0:25:24I spend more on card,
0:25:24 > 0:25:27probably cos cash is a bit of a hassle to withdraw it.
0:25:27 > 0:25:28It's just more convenient.
0:25:28 > 0:25:31You can do, like, contactless.
0:25:31 > 0:25:35If you lose your purse or something, you can replace your cards.
0:25:35 > 0:25:38It's just generally easier than carrying cash all the time.
0:25:38 > 0:25:41I prefer cards more than cash.
0:25:41 > 0:25:42We always use cards, yeah.
0:25:42 > 0:25:44I prefer cash!
0:25:44 > 0:25:46I just use cash,
0:25:46 > 0:25:48cos it's just easier for little things like going to the shops.
0:25:50 > 0:25:53To buy, like, stuff from the newsagent's and things like that.
0:25:53 > 0:25:55I prefer to spend more on cash
0:25:55 > 0:25:58cos I can kind of keep track of what I'm doing a little bit more.
0:25:58 > 0:26:01Whereas on card, you seem to impulse buy a lot more.
0:26:02 > 0:26:03That's what I find.
0:26:03 > 0:26:08You've got more control with cash than you do with cards.
0:26:08 > 0:26:12- I don't like carrying money around. - I don't like carrying cash around, either.
0:26:12 > 0:26:19I just don't trust the cards and the computers.
0:26:19 > 0:26:21If you did carry cash, I think...
0:26:21 > 0:26:23- You'd spend less. - You'd spend less, definitely.
0:26:23 > 0:26:25- I feel safer with my card.- Yeah.
0:26:25 > 0:26:27I feel like when I spend on my card,
0:26:27 > 0:26:30it's almost like I'm one of the richest people ever.
0:26:30 > 0:26:32But with cash, it's a bit harder to let go.
0:26:35 > 0:26:38Well, I'm joined by business psychologist Gorkan
0:26:38 > 0:26:40and super spender Robyn,
0:26:40 > 0:26:44who we challenged to live without her plastic for a week.
0:26:44 > 0:26:46I can't wait to see how you get on!
0:26:46 > 0:26:47But first, Gorkan,
0:26:47 > 0:26:51nearly all the people we spoke to spent more using their card
0:26:51 > 0:26:53than they did using cash.
0:26:53 > 0:26:57What actually is going on in the mind of the consumer?
0:26:57 > 0:27:00The point is that our brain is actually really bad at calculating
0:27:00 > 0:27:04how bad we will feel in a distant point of time.
0:27:04 > 0:27:09So the motivation to shop in the present is much stronger,
0:27:09 > 0:27:11because we have these impulses.
0:27:11 > 0:27:14So we become much more like impulse buyers,
0:27:14 > 0:27:19and we're more likely to buy impulse products and even unhealthy food.
0:27:19 > 0:27:20Yeah, I can relate to that.
0:27:20 > 0:27:23So, Robyn, tell us a little bit about your spending habits.
0:27:23 > 0:27:25I'm quite an impulse spender,
0:27:25 > 0:27:29so I will spend money on things like make-up, clothing,
0:27:29 > 0:27:31going out for nice meals with my friends.
0:27:31 > 0:27:34I'm quite a bad spender, actually!
0:27:34 > 0:27:36You're not kidding there, Robyn!
0:27:36 > 0:27:40This young lady loves to go crazy with her plastic.
0:27:40 > 0:27:42So we set her challenge.
0:27:42 > 0:27:44Could she manage live without her cards
0:27:44 > 0:27:47and only use cash for an entire week?
0:27:48 > 0:27:50So, how did you get on without your cards?
0:27:50 > 0:27:51It was quite tricky.
0:27:51 > 0:27:53Very interesting to see how I normally spend my money.
0:27:53 > 0:27:56I found that when I have my cash in hand,
0:27:56 > 0:27:58I was hesitant to actually spend money.
0:27:58 > 0:28:01Compared to when I usually have my card,
0:28:01 > 0:28:03and I would just tap it on a £30 top.
0:28:03 > 0:28:06Well, we're going to have a quick look at your video spending diaries,
0:28:06 > 0:28:08see how you got on.
0:28:09 > 0:28:12So this morning I've withdrawn the money from the cash machine that
0:28:12 > 0:28:14I think I'm going to spend this week.
0:28:14 > 0:28:16I've already come across my first obstacle.
0:28:16 > 0:28:19I actually bought, well, went to buy some make-up,
0:28:19 > 0:28:21and put it back at the till because
0:28:21 > 0:28:24I looked at it in my cash and I thought, "Do I really need that?"
0:28:24 > 0:28:26It was quite a lot of money.
0:28:26 > 0:28:29Considering it's only day one, it's having quite a good effect on me.
0:28:29 > 0:28:33So I just had a situation where I had to pay on my card.
0:28:33 > 0:28:35I was at the petrol station
0:28:35 > 0:28:40and my petrol came to more than I had actual cash on me.
0:28:40 > 0:28:41So, I had to put that on my card.
0:28:41 > 0:28:44But it made me realise that I feel a little bit more comfortable in
0:28:44 > 0:28:48situations like that, not having a large amount of cash on me.
0:28:48 > 0:28:52So, Robyn, we're in a wonderful new shopping centre.
0:28:52 > 0:28:54And I just want to get my card out and spend money!
0:28:54 > 0:28:57I do, I do. I'm not going to deny it!
0:28:57 > 0:29:00But what has this sort of exercise taught you?
0:29:00 > 0:29:02It has definitely taught me to cut down on the little luxuries
0:29:02 > 0:29:06that I am treating myself to. So, yeah.
0:29:06 > 0:29:07Did you actually spend less, then?
0:29:07 > 0:29:09Yeah, I think I have done.
0:29:09 > 0:29:12Just purely for the fact that I put things back,
0:29:12 > 0:29:14through realising just how much I was spending.
0:29:14 > 0:29:19It's made me double think how I do actually spend my money normally.
0:29:19 > 0:29:23So, Gorkan, it seems to me that we need to retrain our brains
0:29:23 > 0:29:25every time we go and reach for our plastic.
0:29:25 > 0:29:28I think retraining our brains is going to be very difficult.
0:29:28 > 0:29:31I think we need different strategies.
0:29:31 > 0:29:34You could try to kind of become more conscious
0:29:34 > 0:29:36of each item that you spend on.
0:29:36 > 0:29:40That's one way of kind of trying to deal with that abstract thing
0:29:40 > 0:29:42that you have when you pay by card.
0:29:42 > 0:29:47But I think the simplest way of retraining our brains, in a way,
0:29:47 > 0:29:49is simply to carry that cash with you.
0:29:49 > 0:29:52- Yeah.- Or potentially have a shopping list with you.
0:29:52 > 0:29:55- A lot of food for thought there. Thank you both.- Thank you very much.
0:29:55 > 0:29:59It seems that Robyn has managed to save herself some serious money.
0:29:59 > 0:30:01But it's time to find out whether Sarah Pennells has managed to do
0:30:01 > 0:30:06the same, as she overhauls the finances of Dennis and Barbara.
0:30:06 > 0:30:09Dennis and Barbara Scafe have a dream -
0:30:09 > 0:30:13to save enough money and build an extension to their house.
0:30:13 > 0:30:16And there's a good reason why they need it.
0:30:16 > 0:30:20Dennis has had post-traumatic stress disorder since an incident
0:30:20 > 0:30:21when he was in the police.
0:30:21 > 0:30:25And the extra space is something he really needs.
0:30:26 > 0:30:29Dennis needs a bit of...
0:30:29 > 0:30:31- me-time...- Yeah.- Because when he...
0:30:31 > 0:30:35When he's a bit low with his mental condition,
0:30:35 > 0:30:38- he's better out the way of everybody.- I am.
0:30:38 > 0:30:43So if there was somewhere for him to sit, where he was on his own and
0:30:43 > 0:30:46he couldn't be, you know, tormented.
0:30:46 > 0:30:48Personal finance expert Sarah Pennells
0:30:48 > 0:30:52has already found ways to kick their credit card debts into touch,
0:30:52 > 0:30:55and started lowering their monthly bills.
0:30:55 > 0:30:57But then, she got an eyeful of these -
0:30:57 > 0:31:01the solar panels that Dennis had installed five years ago
0:31:01 > 0:31:03hoping to cut his bills.
0:31:03 > 0:31:06But, so far, they haven't saved him a bean!
0:31:06 > 0:31:09The electricity bills are just as much as if we hadn't got
0:31:09 > 0:31:11the solar panels there.
0:31:11 > 0:31:13To find out if there's anything wrong with their panels,
0:31:13 > 0:31:18"Our Pennells" calls in another expert - David Dean,
0:31:18 > 0:31:19from the National Energy Foundation.
0:31:19 > 0:31:22What have you found so far?
0:31:22 > 0:31:26Well, Barbara and Dennis have a very standard solar panel system.
0:31:26 > 0:31:28And looking at the figures,
0:31:28 > 0:31:32they seem to be generating a reasonable amount of electricity
0:31:32 > 0:31:36for their size and for where they are on the house's roof.
0:31:36 > 0:31:38So there isn't a great deal of problem there.
0:31:38 > 0:31:40Hmm, the plot thickens!
0:31:40 > 0:31:42If the panels are working fine,
0:31:42 > 0:31:45why aren't they saving Dennis and Barbara any money?
0:31:45 > 0:31:49Well, it turns out that they're not quite making the most of them,
0:31:49 > 0:31:53because the way they thought the system worked isn't quite right.
0:31:53 > 0:31:55The question is, will it store any power?
0:31:55 > 0:31:58- No, it won't, no. - Cos that's what we were told.
0:31:58 > 0:32:00Well, that's wrong.
0:32:00 > 0:32:05Solar panels systems don't have the capacity to store electricity
0:32:05 > 0:32:10for use at future time, so people really do need to
0:32:10 > 0:32:14get the best out of their solar panels by using their
0:32:14 > 0:32:17electricity household appliances during the day.
0:32:17 > 0:32:20For example, ovens, tumble dryers,
0:32:20 > 0:32:22and making best use of the electricity
0:32:22 > 0:32:24that the system generates.
0:32:24 > 0:32:26Mystery solved.
0:32:26 > 0:32:28Dennis had been left with the impression their energy
0:32:28 > 0:32:31was being stored, but that's not the case.
0:32:31 > 0:32:36So they haven't really adjusted how and when they use their electricity.
0:32:36 > 0:32:38If you've got solar panels like these,
0:32:38 > 0:32:40and you're hoping they'll cut a bit off your bills,
0:32:40 > 0:32:44you have to use your electrical appliances when the panels
0:32:44 > 0:32:46are actually generating power.
0:32:46 > 0:32:49In other words, during the day.
0:32:49 > 0:32:52There are good examples of people having systems like yours
0:32:52 > 0:32:55saving on their electricity bill,
0:32:55 > 0:32:57and I've certainly saved money on my electricity bill
0:32:57 > 0:32:59in the two years that I've had it.
0:32:59 > 0:33:04I would estimate that I've saved probably about £100 or £150 a year.
0:33:04 > 0:33:09If Barbara and Dennis start using their solar panels correctly,
0:33:09 > 0:33:12they, too, could save up to £150 a year.
0:33:12 > 0:33:14But with the cost
0:33:14 > 0:33:16of the extension nearing £20,000,
0:33:16 > 0:33:21Sarah needs to free up a stack more cash - and pronto!
0:33:21 > 0:33:22And she's come up with a simple way
0:33:22 > 0:33:26Dennis could make quite a wad of extra cash,
0:33:26 > 0:33:28all thanks to his pride and joy -
0:33:28 > 0:33:30this state-of-the-art caravan.
0:33:30 > 0:33:34- Microwave here.- Little kitchen, yeah.- Gas and electric hobs.
0:33:34 > 0:33:37It really has got everything, hasn't it? It's brilliant.
0:33:37 > 0:33:39- Yeah.- I can see why you love it so much.
0:33:39 > 0:33:40Nice little number indeed, Dennis.
0:33:40 > 0:33:43But all Sarah can see is pound signs.
0:33:43 > 0:33:47She knows Dennis only uses his caravan a few weekends a year.
0:33:47 > 0:33:51So she reckons he could be quids in if he occasionally rented it out.
0:33:51 > 0:33:55The way it would work is that you would drive the caravan
0:33:55 > 0:33:59to wherever the person wanted to be, whether that was a caravan site,
0:33:59 > 0:34:01or maybe they wanted to go to a music festival,
0:34:01 > 0:34:05and you'd charge them mileage for that journey
0:34:05 > 0:34:09and then they'd hire the caravan for a week, or weekend, whatever it was.
0:34:09 > 0:34:12I wouldn't be tempted at all, Sarah,
0:34:12 > 0:34:16because I also think there's insurance implications.
0:34:16 > 0:34:17Oh, dear!
0:34:17 > 0:34:19Dennis doesn't sound keen,
0:34:19 > 0:34:23but he could rake in around £500 a week if he rents out his caravan
0:34:23 > 0:34:24in peak season.
0:34:24 > 0:34:26As for the insurance?
0:34:26 > 0:34:30Well, we all know by now, Sarah doesn't miss a trick.
0:34:30 > 0:34:31I've looked into this
0:34:31 > 0:34:33and I've spoken to a couple of insurance brokers.
0:34:33 > 0:34:37You can buy an ordinary policy for all year round, and then,
0:34:37 > 0:34:41when you hire it out, basically you buy an add-on, just for those days,
0:34:41 > 0:34:45and that covers your caravan when somebody else is basically paying
0:34:45 > 0:34:46you to use it.
0:34:46 > 0:34:48Interesting.
0:34:48 > 0:34:51- I'd be interested to see the details of that on their website.- Yeah.
0:34:51 > 0:34:54Well, I'll see if I can find some paperwork for you.
0:34:54 > 0:34:57- Hmm, thank you. - More bedtime reading.- Yeah!
0:34:57 > 0:35:00You know, you might be winning him round, Sarah.
0:35:00 > 0:35:02And if Dennis does choose to rent out his caravan
0:35:02 > 0:35:04for just four weeks a year,
0:35:04 > 0:35:06that could be a very easy two grand!
0:35:06 > 0:35:08Kerching!
0:35:08 > 0:35:11But there's an extension to build here, so back at the house,
0:35:11 > 0:35:14Sarah is on a mission to save as much as she can.
0:35:14 > 0:35:17She's blitzing those household expenses
0:35:17 > 0:35:19that can all too quickly mount up,
0:35:19 > 0:35:23starting with their home phone and broadband package.
0:35:23 > 0:35:26Dennis and Barbara pay extra for an anytime calls option.
0:35:26 > 0:35:30But with a similar offer on their mobile phone contracts,
0:35:30 > 0:35:31they really needn't bother.
0:35:33 > 0:35:39You could actually save, well, £8 a month, 7.95,
0:35:39 > 0:35:42if you made calls on your mobile.
0:35:42 > 0:35:45That's over 90 quid a year, and there's more.
0:35:45 > 0:35:48Sarah tells Dennis to call up their broadband supplier
0:35:48 > 0:35:51and simply ask for a discount.
0:35:51 > 0:35:57And they said that, straightaway, they would give you £10 a month off,
0:35:57 > 0:35:59if you rang them back at the end of your contract,
0:35:59 > 0:36:02so that's another £120 that you'd save over a year.
0:36:02 > 0:36:04Everything adds up, doesn't it?
0:36:04 > 0:36:08You know what they say, "If you don't ask, you don't get."
0:36:08 > 0:36:10And that easy request
0:36:10 > 0:36:13has bagged these two another £120.
0:36:13 > 0:36:14There's even more to be saved
0:36:14 > 0:36:16if they cut back on another
0:36:16 > 0:36:19everyday expense - their shopping.
0:36:19 > 0:36:21Barbara spends £80 a week on food,
0:36:21 > 0:36:25compared to the national average of almost £60.
0:36:25 > 0:36:29If she reins that in, she could save another £1,000 a year.
0:36:30 > 0:36:32It's a fair few quid
0:36:32 > 0:36:35that Sarah's been able to free up for them so far.
0:36:35 > 0:36:38And Dennis would like to invest some of that money to make his home
0:36:38 > 0:36:40improvement pot grow more quickly.
0:36:40 > 0:36:43But his last investment went disastrously wrong
0:36:43 > 0:36:45and cost him 40 grand,
0:36:45 > 0:36:47so he's understandably cautious.
0:36:47 > 0:36:50Luckily, Sarah has one final tip
0:36:50 > 0:36:53on where he can get some proper guidance.
0:36:53 > 0:36:56Choosing where to invest your money can feel like quite a minefield
0:36:56 > 0:36:57for people, I think.
0:36:57 > 0:37:00Many financial advisers will now only give you advice
0:37:00 > 0:37:03if you have a minimum amount to invest, such as £50,000.
0:37:03 > 0:37:06- Mm-hm.- So I've been doing a bit of research.
0:37:06 > 0:37:09There are a couple of courses that might be quite useful,
0:37:09 > 0:37:15and one is an Open University course, which you can do online.
0:37:15 > 0:37:19And it has different sort of modules to talk about.
0:37:19 > 0:37:23Managing your money, and budgeting, and pensions.
0:37:23 > 0:37:27Sounds good. But I can tell that Dennis is just bursting to ask
0:37:27 > 0:37:29that all-important question.
0:37:29 > 0:37:31Well, how much do they cost, Sarah?
0:37:31 > 0:37:34Actually, it's a special Yorkshire version. It's entirely free.
0:37:34 > 0:37:36Ooh! Now we're talking.
0:37:36 > 0:37:39- Have I sold this...?- Yes, OK. - Have I sold this free course to you?
0:37:39 > 0:37:41If it's free... Keep using that word, Sarah.
0:37:41 > 0:37:42Yes, I love that four-letter word.
0:37:42 > 0:37:46If you fancy getting more clued up on the world of investing,
0:37:46 > 0:37:49that free course might help you, too.
0:37:49 > 0:37:52To find out more, go to the Open University website
0:37:52 > 0:37:54and look under "managing my money".
0:37:55 > 0:38:00In the meantime, let's see just how much Dennis and Barbara could pocket
0:38:00 > 0:38:02if they follow all of Sarah's advice.
0:38:02 > 0:38:06Put together, the savings from sorting their credit card debt,
0:38:06 > 0:38:08switching electricity provider,
0:38:08 > 0:38:11making better use of their solar panels,
0:38:11 > 0:38:15cutting back their shopping, plus renting out the family caravan,
0:38:15 > 0:38:18and reviewing their phone and broadband costs,
0:38:18 > 0:38:22and you get a total of £4,558.
0:38:22 > 0:38:25Add to that the ten grand Sarah negotiated
0:38:25 > 0:38:28off the cost of building their extension
0:38:28 > 0:38:32and they could be more than £14,500 better off!
0:38:32 > 0:38:35Had we not taken this route,
0:38:35 > 0:38:40we wouldn't ever have experienced what is available,
0:38:40 > 0:38:43and how to seek out the best deals.
0:38:43 > 0:38:45It's been an eye-opener.
0:38:45 > 0:38:47- It's been...enlightening. - Enlightening.
0:38:52 > 0:38:54I'm delighted that Dennis is here with us now,
0:38:54 > 0:38:57along with money-saving expert Andy Webb.
0:38:57 > 0:39:00Dennis, you've had a couple of tough years, we know that.
0:39:00 > 0:39:03How has taking part in this programme helped you?
0:39:03 > 0:39:05Sarah Pennells has been exceptional.
0:39:05 > 0:39:09She's really easy to communicate with
0:39:09 > 0:39:11and she gave us some fantastic advice.
0:39:11 > 0:39:14But the hardest bit is usually sticking at it,
0:39:14 > 0:39:16and how are you and Barbara coping with that?
0:39:16 > 0:39:20Well, as a Yorkshire lad, we've got short arms and long pockets,
0:39:20 > 0:39:23so it's not been too difficult for me, I'm glad to say.
0:39:23 > 0:39:25We will stick with it.
0:39:25 > 0:39:27Andy, for somebody like Dennis,
0:39:27 > 0:39:30there must be some good help out there, and free help, I'm hoping?
0:39:30 > 0:39:32Yeah, absolutely. I think that something that people do,
0:39:32 > 0:39:34when they've got worries is not doing anything about it.
0:39:34 > 0:39:36You know, they sort of put their head in the sand
0:39:36 > 0:39:39and it's, "I hope it'll fix itself," or just too scared to deal with it,
0:39:39 > 0:39:41and that's the worst thing you can do.
0:39:41 > 0:39:43The Money Advice Service website has got a tool
0:39:43 > 0:39:47where you can put your postcode in and find who there is going to be
0:39:47 > 0:39:48who can do that for you nearby.
0:39:48 > 0:39:50Once you start having that conversation,
0:39:50 > 0:39:52much like Sarah did with Dennis,
0:39:52 > 0:39:55then you can start solving problems and getting back on your feet.
0:39:55 > 0:39:59Dennis, I know you're very proud of the fact that you run a veterans' club, don't you?
0:39:59 > 0:40:01Yes, a veterans' breakfast club,
0:40:01 > 0:40:05and I'm quite proud of the fact that they can help a lot of the veterans
0:40:05 > 0:40:08who have got problems from various conflicts,
0:40:08 > 0:40:10whether it be the Falklands,
0:40:10 > 0:40:14Iraq, Afghanistan, Northern Ireland as...was where I served.
0:40:14 > 0:40:17There's quite a number who have got post-traumatic stress disorder
0:40:17 > 0:40:20and we're able to signpost them to the various organisations,
0:40:20 > 0:40:24including Combat Stress, from which I received treatment for PTSD.
0:40:24 > 0:40:25Moving forwards,
0:40:25 > 0:40:28how are you hoping things will change for you and Barbara?
0:40:28 > 0:40:34It will be so nice to have that disposable income back once again.
0:40:34 > 0:40:36We're not particularly poor people.
0:40:36 > 0:40:37There's a lot worse off than us.
0:40:37 > 0:40:40But I would just like to get back on a level plain again.
0:40:40 > 0:40:43Dennis, we'd both like to wish you all the best for the future.
0:40:43 > 0:40:46- Yeah, thank you for sharing your story.- Thank you, you're very kind.
0:40:46 > 0:40:48Now, if you'd like our experts around
0:40:48 > 0:40:50to help sort out your finances, contact us at...
0:40:53 > 0:40:55And here are some other ways you can end up
0:40:55 > 0:40:57with a bit more cash in your pocket.
0:40:59 > 0:41:03Our website has everything you need to sort out your spending.
0:41:03 > 0:41:06We've teamed up with the Money Advice Service
0:41:06 > 0:41:09to bring you easy-to-use money-saving tools
0:41:09 > 0:41:10to plan your budget,
0:41:10 > 0:41:13calculate the cost of your car or credit cards
0:41:13 > 0:41:16and give your money complete health check.
0:41:16 > 0:41:17Download them at...
0:41:21 > 0:41:24..where you can also take our interactive spending test,
0:41:24 > 0:41:27and you'll find plenty more tips and advice
0:41:27 > 0:41:29to keep your finances on track.
0:41:32 > 0:41:34Now, Andy's still with us, along with the Fab Four.
0:41:34 > 0:41:36I never realised they were 7" 6' tall, did you?
0:41:36 > 0:41:38No, I didn't, but they're looking fantastic.
0:41:38 > 0:41:40They're looking wonderful!
0:41:40 > 0:41:42Andy, we've got some questions from people we've met today.
0:41:42 > 0:41:45Yes, first question is - can money buy you love?
0:41:45 > 0:41:47I couldn't resist it!
0:41:47 > 0:41:52No, seriously, Leanne from Bootle says she's getting married in 2018
0:41:52 > 0:41:56and, along with her partner, they need some advice on how to pay for
0:41:56 > 0:41:57and save for their wedding.
0:41:57 > 0:42:00Yeah, I got married last year and it can be a fantastic day,
0:42:00 > 0:42:02but it doesn't necessarily come cheap.
0:42:02 > 0:42:05The most important thing to do is have a budget.
0:42:05 > 0:42:07Work out exactly what it is you can afford to spend,
0:42:07 > 0:42:10how much you think you're going to be able to save by, you know,
0:42:10 > 0:42:12the next couple of years, and then stick to that,
0:42:12 > 0:42:13do not be tempted to go over it.
0:42:13 > 0:42:17Doesn't matter whether it's a little bit here or there, stick to that money.
0:42:17 > 0:42:20- Or be like me and just don't get married! Save your money. - Oh, don't be boring!
0:42:20 > 0:42:23- You're happily married? - Yeah.- Six months in.
0:42:23 > 0:42:26- Did you stick to your own advice? - Yeah, I did. We did just about.
0:42:26 > 0:42:29Right, Mike from Allerton says,
0:42:29 > 0:42:32I need to access some of my pension fund
0:42:32 > 0:42:34and I've heard it might be available.
0:42:34 > 0:42:38To get a pension release, what are the things I need to be wary of?
0:42:38 > 0:42:40This can be quite tricky.
0:42:40 > 0:42:42If you're under 55 years old,
0:42:42 > 0:42:45it's very unlikely you can get your money early.
0:42:45 > 0:42:47So if anyone's saying they can do it for you,
0:42:47 > 0:42:50it's probably too good to be true, and I would be very, very careful.
0:42:50 > 0:42:55But if you're over 55, it can be possible to get maybe 25% as a cash sum,
0:42:55 > 0:42:58but with all of this, get regulated advice from a financial adviser.
0:42:58 > 0:43:01They'll take you through, because if you do take the money early,
0:43:01 > 0:43:03that's going to have an effect on your retirement.
0:43:03 > 0:43:07You'll have less to live on, so there's lots to think about. I'd say get some advice.
0:43:07 > 0:43:10- Advice is the key?- Yeah, and watch for scams, because there are scammers out there.
0:43:10 > 0:43:12Good advice, thank you.
0:43:12 > 0:43:14Sue from Wavertree says she's keen to move house,
0:43:14 > 0:43:17but her current house is in negative equity.
0:43:17 > 0:43:19What are her options?
0:43:19 > 0:43:21Negative equity's when the house value's current value
0:43:21 > 0:43:24is less than when they bought it in the mortgage that they got,
0:43:24 > 0:43:26so really they owe even more money, and it's very difficult.
0:43:26 > 0:43:29One option might be just to wait and hope that the price goes up again,
0:43:29 > 0:43:31so they don't lose out,
0:43:31 > 0:43:34or it can be try and pay off some of that money they owe in other ways.
0:43:34 > 0:43:36There's new rules where you can get £7,000 a year
0:43:36 > 0:43:39for renting out a spare room and things like that.
0:43:39 > 0:43:41Try and get as much money as they can to pay it off early.
0:43:41 > 0:43:44But, again, if they talk to someone, a financial adviser,
0:43:44 > 0:43:46there might be some special sort of ways to help them with that.
0:43:46 > 0:43:51- She's got to get more of that mortgage paid off and get equity, basically?- Yeah, she really does.
0:43:51 > 0:43:53- Otherwise, you're in a sticky situation.- Yeah.
0:43:53 > 0:43:54OK! Thanks, Andy.
0:43:54 > 0:43:56As always, great advice.
0:43:56 > 0:43:58And that's it from us in Liverpool.
0:43:58 > 0:44:01Thanks to all our guests, and for you at home for watching.
0:44:01 > 0:44:03- And until next time, from us, it's ta-ra!- Bye-bye!