0:00:02 > 0:00:04Whether you're a spender or a saver,
0:00:04 > 0:00:07we could all do without 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.
0:00:23 > 0:00:25Hello, and welcome to Right On The Money,
0:00:25 > 0:00:27the show that aims to boost your coffers
0:00:27 > 0:00:29by making simple changes to the way you spend.
0:00:29 > 0:00:33Today, we're in historic Chester which was founded by the Romans
0:00:33 > 0:00:37as a military base from which their armies could conquer the North.
0:00:37 > 0:00:40And if it's one thing the Romans loved, Denise, it was money.
0:00:40 > 0:00:43And here's how today we're going to help you keep hold of yours.
0:00:45 > 0:00:48We help this former copper investigate the mysterious case
0:00:48 > 0:00:52of her disappearing bank balance and we get the chief suspects in
0:00:52 > 0:00:55for questioning - one daughter and one dog.
0:00:56 > 0:01:00And we will see just what our money makeovers have done
0:01:00 > 0:01:03as we catch up with some of the people whose finances
0:01:03 > 0:01:05we've transformed in the past.
0:01:05 > 0:01:08Without the show, I don't think I'd have been as happy as I am today.
0:01:08 > 0:01:09I love it, I love it!
0:01:12 > 0:01:14HE RINGS BELL
0:01:14 > 0:01:16Oh, yea!
0:01:16 > 0:01:19Good people of Chester!
0:01:19 > 0:01:22Dom and Denise plan to make sure
0:01:22 > 0:01:27that you are right on the money!
0:01:27 > 0:01:29We certainly are.
0:01:29 > 0:01:32Now, modern Chester is a pretty classy place.
0:01:32 > 0:01:35But it's also a regular shopping haunt for a former policewoman
0:01:35 > 0:01:38who desperately needs our help to sort her finances out.
0:01:39 > 0:01:42Carol Owen from North Wales is devoted mum
0:01:42 > 0:01:44to 15-year-old daughter Catherine.
0:01:44 > 0:01:46Not forgetting the other baby,
0:01:46 > 0:01:50three-year-old British bulldog, Stanley.
0:01:50 > 0:01:52Am I boring you, Stanley?
0:01:52 > 0:01:56At 54, Carol's been retired from the police for three years.
0:01:56 > 0:01:58I've worked full-time all my life,
0:01:58 > 0:02:00so this is the first opportunity I've had
0:02:00 > 0:02:03to be home when Catherine gets home from school
0:02:03 > 0:02:06and to have tea ready and to be around.
0:02:06 > 0:02:08I love it. Absolutely love it.
0:02:09 > 0:02:10With a decent pension pot,
0:02:10 > 0:02:14you'd think Carol shouldn't have too many money worries,
0:02:14 > 0:02:15but that's not the case.
0:02:15 > 0:02:19When I look at my statements at the end of the month
0:02:19 > 0:02:21and I find it ridiculous, really,
0:02:21 > 0:02:24that I've got a good amount of money coming in,
0:02:24 > 0:02:28but every single penny seems to go out, as well.
0:02:28 > 0:02:33So, where on earth is this former police officer's money disappearing?
0:02:33 > 0:02:35Let's look at the clues.
0:02:35 > 0:02:38Exhibit one, Carol's very cute,
0:02:38 > 0:02:41but very pampered British bulldog, Stanley.
0:02:41 > 0:02:44Stanley! The most expensive bulldog in the world.
0:02:44 > 0:02:46He snores, and he dribbles,
0:02:46 > 0:02:49he costs the Earth and we love him to bits.
0:02:49 > 0:02:52Exhibit two, Carol's daughter Catherine.
0:02:52 > 0:02:53The pair are super-close
0:02:53 > 0:02:56and Carol just loves to take her clothes shopping
0:02:56 > 0:02:58and give her lots of treats.
0:02:58 > 0:03:01But despite all this overwhelming evidence,
0:03:01 > 0:03:04this former copper still can't see where all her money's disappearing.
0:03:04 > 0:03:09I suspect that it might be paying over the odds on some things.
0:03:09 > 0:03:12I'm sure there must be savings somewhere. I can't figure it out.
0:03:12 > 0:03:14Carol's biggest fear is getting into debt
0:03:14 > 0:03:17and she's afraid of what could happen
0:03:17 > 0:03:19if we can't help her crack this case.
0:03:19 > 0:03:23I'm terrified that I'll lose the house.
0:03:23 > 0:03:27The house is my security, it's Catherine's security, it's our home.
0:03:27 > 0:03:31Sounds like Carol needs the services of our special savings branch.
0:03:31 > 0:03:35And here's our chief inspector, Sarah Pennells.
0:03:35 > 0:03:37- You must be Carol?- Yeah, hello.
0:03:37 > 0:03:40- I'm Sarah.- Nice to meet you. - Really nice to meet you.- Come in.
0:03:40 > 0:03:43Let the investigation began.
0:03:43 > 0:03:46You're saying that you don't like debt...
0:03:46 > 0:03:48- Mmm.- Just tell me more about that.
0:03:48 > 0:03:51When I got married, I never really thought much about finances,
0:03:51 > 0:03:52to be honest with you,
0:03:52 > 0:03:55because there was two of us bringing good money in.
0:03:55 > 0:03:59And then, when it all fell apart at the end, I had a real...
0:03:59 > 0:04:00really nasty shock...
0:04:01 > 0:04:03..as to how much we owed.
0:04:03 > 0:04:06- It caught me short.- But you weren't aware of it
0:04:06 > 0:04:09- or you just didn't realise...? - I didn't realise.
0:04:09 > 0:04:11But we lived to our means.
0:04:11 > 0:04:16We did. And beyond. And we'd have credit cards and one credit card...
0:04:16 > 0:04:19We'd get a credit card to pay off another credit card.
0:04:20 > 0:04:22My mum and dad will cringe when they hear this!
0:04:22 > 0:04:25THEY LAUGH They didn't know until now?
0:04:25 > 0:04:28They didn't know! But it goes against the grain.
0:04:28 > 0:04:31Carol's now divorced and out of debt.
0:04:31 > 0:04:33But she's still overspending.
0:04:33 > 0:04:36In fact, it's got so bad that she's got no money left
0:04:36 > 0:04:40to cover two very important costs coming up.
0:04:40 > 0:04:44Catherine's bedroom. It's the same furniture since she was five
0:04:44 > 0:04:47that she's still got now, and she's coming up to 16.
0:04:47 > 0:04:51So, that's the next project, that's really what we're looking at.
0:04:51 > 0:04:54And Catherine's prom dress is a prime example.
0:04:54 > 0:04:57That's something I haven't budgeted for.
0:04:57 > 0:05:00That's a lot of potential spending on the horizon.
0:05:00 > 0:05:04So, if Carol wants to avoid her worst fear, debt,
0:05:04 > 0:05:07then Sarah needs to get on the case fast.
0:05:07 > 0:05:11Time to turn her attention to the third member of the Owen household.
0:05:12 > 0:05:15He's an important part of your family, I'm guessing?
0:05:15 > 0:05:17He is. He absolutely is.
0:05:17 > 0:05:19He's a big part of our family, we wouldn't be without him.
0:05:19 > 0:05:22Tell me a bit more about Stanley.
0:05:22 > 0:05:25How long you've had him and what you spend on him.
0:05:25 > 0:05:29- His cost is bedding and everything like that, Christmas...- Toys?- Toys.
0:05:29 > 0:05:30Yeah. Treats, that kind of thing?
0:05:30 > 0:05:35Yeah. Food, he has a big 12 kilo...
0:05:35 > 0:05:40bag of dog food every month, which is £25.
0:05:40 > 0:05:44Pet insurance every month is about £67.
0:05:44 > 0:05:46It's quite a lot.
0:05:46 > 0:05:49It's quite a lot, bless him.
0:05:49 > 0:05:55The average cost of keeping a dog over a lifetime is £16,900,
0:05:55 > 0:05:59and a lot of that is swallowed up by vets' bills and pet insurance.
0:05:59 > 0:06:03But it's always worth shopping around for a cheaper policy.
0:06:03 > 0:06:05Time for Sarah to work her magic
0:06:05 > 0:06:08and she very quickly finds a brilliant deal
0:06:08 > 0:06:11that could give Stanley the same lifetime cover,
0:06:11 > 0:06:14but for £400 a year less.
0:06:14 > 0:06:18I think that's fantastic. I admit... For pet insurance I've just...
0:06:19 > 0:06:21..paid when it's come round for renewal.
0:06:21 > 0:06:24But I think that's really good, that's a big difference.
0:06:24 > 0:06:25As long as it does cover...
0:06:26 > 0:06:28..everything.
0:06:28 > 0:06:29Good work, Sarah.
0:06:29 > 0:06:31Stanley, you're well covered.
0:06:32 > 0:06:34With Stanley tucked up in his basket,
0:06:34 > 0:06:39Sarah is tagging along on one of her daughter's regular shopping trips
0:06:39 > 0:06:41and she's about to see how much Carol's splashing out
0:06:41 > 0:06:43on extra clothes and make-up for Catherine.
0:06:45 > 0:06:48Do you have a feeling of how much your mum spends on you?
0:06:48 > 0:06:50I'd say is definitely more than it was,
0:06:50 > 0:06:52and because it's coming up to my prom,
0:06:52 > 0:06:56she's going to be spending money all on that, as well.
0:06:56 > 0:06:59- So...- Well, we've had a look back over the last few months,
0:06:59 > 0:07:03and over a three-month period, it's about £800.
0:07:03 > 0:07:04SHE LAUGHS
0:07:04 > 0:07:07- Really?- How do you feel, hearing that figure?
0:07:07 > 0:07:09£800 over three months.
0:07:09 > 0:07:11I can't believe it. Really?
0:07:11 > 0:07:15That's over £3,000 a year, if you're spending at that rate.
0:07:16 > 0:07:19I know you're worth it, Catherine, but I'm sure we can cut back.
0:07:21 > 0:07:23Wow, I wouldn't have thought that much.
0:07:23 > 0:07:27The average cost of raising a child from 11 to 17 years old
0:07:27 > 0:07:31is a massive £55,000.
0:07:31 > 0:07:34But it seems like Carol has to cut back on her luxury spending
0:07:34 > 0:07:38on Catherine if she wants to get her finances in order.
0:07:38 > 0:07:40I think rather than saying,
0:07:40 > 0:07:42you know, don't spend any money on your daughter,
0:07:42 > 0:07:46maybe it's about giving Catherine the choice of, you know,
0:07:46 > 0:07:49do you want some of this money to go in your prom dress fund?
0:07:49 > 0:07:52- Or your bedroom fund?- Yeah. - Or do you want a treat?
0:07:52 > 0:07:55You know, you can't necessarily have them both.
0:07:55 > 0:07:58How would that feel? Would that feel really tough or would that feel OK?
0:07:58 > 0:07:59I'd say it would feel OK,
0:07:59 > 0:08:02cos at least we're doing something about it.
0:08:02 > 0:08:04And what about you? Would you feel,
0:08:04 > 0:08:07if there was something Catherine wanted...?
0:08:07 > 0:08:09It would probably be hard, but...
0:08:09 > 0:08:10I'm...
0:08:10 > 0:08:13I'm still a bit in shock. I can't believe it's that much money!
0:08:13 > 0:08:16- Do you want to sit down? - Yes, please!
0:08:16 > 0:08:17Well, on top of everything else...
0:08:17 > 0:08:20Oh, my goodness, we're just throwing money away.
0:08:20 > 0:08:22No wonder I'm struggling at the end of the month
0:08:22 > 0:08:24with nothing to show for it.
0:08:24 > 0:08:27I'm sure we can cut back, can't we? Good grief.
0:08:27 > 0:08:29Yes, good grief indeed.
0:08:29 > 0:08:31But at least Carol is slowly realising
0:08:31 > 0:08:35she's going to have to change her generous spending habits
0:08:35 > 0:08:37if she wants to remain debt-free.
0:08:37 > 0:08:42As that £3,000 spend on Catherine was just on luxury items,
0:08:42 > 0:08:47she could easily halve the amount, bagging Carol a £1,500 saving.
0:08:47 > 0:08:50That's enough for five of these prom dresses.
0:08:50 > 0:08:53Carol, your Cinderella can still go to the ball.
0:08:53 > 0:08:57Shopping trip over and Carol gets the sit-down she needed,
0:08:57 > 0:08:59giving Sarah a good chance to investigate
0:08:59 > 0:09:02another one of Carol's costly habits.
0:09:02 > 0:09:06How many coffees would you say you pay for
0:09:06 > 0:09:08in an average week or month?
0:09:08 > 0:09:10What would you say you'd buy?
0:09:10 > 0:09:12In a week I would say...
0:09:15 > 0:09:18So, you'll have a chocolate, I'll have a coffee.
0:09:18 > 0:09:21We're sort of talking about probably six or so,
0:09:21 > 0:09:23would you say, in an average week?
0:09:23 > 0:09:24- An average week.- OK.
0:09:24 > 0:09:27If it's £2, that's £12 a week.
0:09:27 > 0:09:31Yeah. And over a year, that adds up to over £600.
0:09:31 > 0:09:34- Wow.- If you're spending more on your coffees...
0:09:34 > 0:09:37That could be £700, £800.
0:09:37 > 0:09:40- That's quite a lot.- It's a lot when you say it like that.
0:09:40 > 0:09:43Doesn't seem a lot at the time, does it? We just go for a coffee.
0:09:43 > 0:09:44Has that surprised you,
0:09:44 > 0:09:46that it does add up to that much over a year?
0:09:46 > 0:09:50I suppose, in a way, when you say £600 or £700...
0:09:51 > 0:09:54..that's almost your bedroom, isn't it?
0:09:54 > 0:09:57Look, I'm going to hold my hands up, guys -
0:09:57 > 0:09:58coffee's my big vice, too.
0:09:58 > 0:10:01But if Carol cuts back on the bean,
0:10:01 > 0:10:03she could save £500.
0:10:05 > 0:10:08As they head home, Sarah finds another area
0:10:08 > 0:10:12where Carol could save some hard cash - her car finance deal.
0:10:14 > 0:10:19I paid £5,000 up front and then £210 a month for four years,
0:10:19 > 0:10:23and then £6,000 at the end.
0:10:23 > 0:10:26So, it's not cheap.
0:10:26 > 0:10:29And with this payment, you've got to make at the end,
0:10:29 > 0:10:32- do you have the money to make the payment?- No, I don't.
0:10:32 > 0:10:34Because you said that you have quite a fear of debt
0:10:34 > 0:10:38and so going overdrawn makes you feel physically sick.
0:10:38 > 0:10:41Does the car loan count as debt in the same way?
0:10:41 > 0:10:42Yeah, absolutely. Absolutely.
0:10:42 > 0:10:45That's a huge thing weighing around me at the moment.
0:10:45 > 0:10:47So, this is the culprit.
0:10:47 > 0:10:50This is the car, the expensive car.
0:10:51 > 0:10:53So, over four years,
0:10:53 > 0:10:57Carol will end up paying just over £22,000 for a car
0:10:57 > 0:11:01that, by then, may not even be worth half of that.
0:11:01 > 0:11:05For someone who's scared of debt, that's a puzzling choice.
0:11:05 > 0:11:07And you, too, might be in a similar situation,
0:11:07 > 0:11:13as 75% of all car sales are on some sort of finance deal.
0:11:13 > 0:11:16As far as Carol is concerned, she's stuck with the deal.
0:11:16 > 0:11:20But after combing the fine print, Sarah's found a way out.
0:11:20 > 0:11:23So, with the kind of agreement that you've got,
0:11:23 > 0:11:26you can actually stop making payments
0:11:26 > 0:11:28once you've paid half of the entire amount.
0:11:28 > 0:11:32You can just stop making the payments and there is no penalty.
0:11:32 > 0:11:34Obviously, you'd have to hand the car back...
0:11:34 > 0:11:36Oh, I didn't know that!
0:11:36 > 0:11:39So, by ditching the car now,
0:11:39 > 0:11:43Carol could save £11,000 over the next two years.
0:11:43 > 0:11:46And a quick visit to her local car dealer
0:11:46 > 0:11:48shows that for just a few grand
0:11:48 > 0:11:52and no finance, she could easily pick up a nice set of wheels.
0:11:52 > 0:11:54Very neat, isn't it? In good condition.
0:11:54 > 0:11:56It feels comfortable to sit in, does it?
0:11:56 > 0:11:58There's plenty of room inside, plenty of room in the back.
0:11:58 > 0:12:00It's a good-sized boot, isn't it?
0:12:01 > 0:12:04You could get your dog and shopping in there!
0:12:04 > 0:12:08So, Carol, what do you think now you've seen few of those cars?
0:12:08 > 0:12:10I'm amazed.
0:12:10 > 0:12:13I'm amazed. If I had done my homework earlier on I wouldn't...
0:12:14 > 0:12:15Love the car, though, I do...
0:12:17 > 0:12:19I don't think I'd have bought it.
0:12:19 > 0:12:23So, if I was Carol, I'd think about taking Sarah's advice -
0:12:23 > 0:12:27ditching her car and getting rid of her expensive finance deal.
0:12:28 > 0:12:30But will she go through with it?
0:12:30 > 0:12:32Well, you'll have to find out later
0:12:32 > 0:12:35when we also discover that Carol has a hidden
0:12:35 > 0:12:37and, potentially money-spinning, talent.
0:12:41 > 0:12:43And Carol will be talking to us
0:12:43 > 0:12:45about how she's got on a little bit later.
0:12:45 > 0:12:48But first up, personal finance expert Fergus Muirhead
0:12:48 > 0:12:50and Kalpana Fitzpatrick, who writes a blog
0:12:50 > 0:12:53teaching families how to save money, are with us.
0:12:53 > 0:12:55Kalpana, I'm going to come to you in a second.
0:12:55 > 0:12:57Fergus - Carol, she didn't have a clue
0:12:57 > 0:12:59about how much money she was spending, did she?
0:12:59 > 0:13:00Is that quite common with families?
0:13:00 > 0:13:02I think it's very common with families.
0:13:02 > 0:13:05Research from The Money Advice Service earlier on this year
0:13:05 > 0:13:08suggested that almost half of us don't understand how we spend money.
0:13:08 > 0:13:11In fact, we couldn't tell how much is in our bank account
0:13:11 > 0:13:13at any given time to within £50, and that's quite bad.
0:13:13 > 0:13:15Kalpana, it's not easy for parents
0:13:15 > 0:13:17to say "no" to their children, is it?
0:13:17 > 0:13:19You know, you want to provide for them,
0:13:19 > 0:13:22you like to buy them nice things, so what's the answer?
0:13:22 > 0:13:25There isn't an easy answer. It is incredibly difficult to say "no",
0:13:25 > 0:13:27and there's nothing worse
0:13:27 > 0:13:30than a toddler screaming the supermarket down.
0:13:30 > 0:13:34But, I think, what you need to do is be firm - "no" means "no".
0:13:34 > 0:13:36Don't give in to the tantrums, and also,
0:13:36 > 0:13:38if it's a treat, then let it be a treat.
0:13:38 > 0:13:40If you're buying it all the time, it's not a treat.
0:13:40 > 0:13:42Small children, it's probably easier,
0:13:42 > 0:13:44but what happens if you've got teenagers?
0:13:44 > 0:13:46How do you get that conversation going?
0:13:46 > 0:13:48It gets a lot harder the older they get
0:13:48 > 0:13:52and the things that they want obviously cost a lot more money.
0:13:52 > 0:13:54So, what I think parents can do
0:13:54 > 0:13:57is actually set the children some goals.
0:13:57 > 0:14:00Say, "If you want this then you'll probably have to save up for it."
0:14:00 > 0:14:03When I was young, and I come from a family with four children in,
0:14:03 > 0:14:06we were made to work for our pocket money. It wasn't just given to us.
0:14:06 > 0:14:09I remember having to sweep the stairs and then hoover them
0:14:09 > 0:14:12and my brothers and sisters had the same sort of thing.
0:14:12 > 0:14:13You guys have all got kids, I haven't,
0:14:13 > 0:14:15but how do you feel about pocket money?
0:14:15 > 0:14:18Do you just give it willy-nilly or do you make them earn it?
0:14:18 > 0:14:19We've got one son who's 22 now
0:14:19 > 0:14:22so his drain on us now is because he's at university.
0:14:22 > 0:14:25Every time he phones he says, "Can I ask you a favour, Dad?"
0:14:25 > 0:14:26"Can I ask you a favour?" means
0:14:26 > 0:14:28- "Can I have some money, please?"- Yeah.
0:14:28 > 0:14:30The UK is getting itself into a lot more debt,
0:14:30 > 0:14:32but there are plans afoot, aren't there,
0:14:32 > 0:14:36to teach kids a generation away from us now about the value of money?
0:14:36 > 0:14:39Yeah, and I think that's important because we've got to start early,
0:14:39 > 0:14:41we've got to start teaching the next generation
0:14:41 > 0:14:43about understanding money, about how it works.
0:14:43 > 0:14:46And the plans, in conjunction with The Money Advice Service,
0:14:46 > 0:14:48I think the plans are to take into school
0:14:48 > 0:14:50this idea of maths in context,
0:14:50 > 0:14:53giving practical examples of how maths can be useful
0:14:53 > 0:14:54and using maths teach young people
0:14:54 > 0:14:57how they can actually manage their money better.
0:14:57 > 0:14:59We've got huge problems with working out interest,
0:14:59 > 0:15:01APR on money that we borrow,
0:15:01 > 0:15:03so perhaps explaining what APR actually is, how it works,
0:15:03 > 0:15:06how you can calculate the amount of interest you pay if you
0:15:06 > 0:15:08borrow a certain amount of money
0:15:08 > 0:15:10over a certain amount of time and what will happen -
0:15:10 > 0:15:13what are the benefits of perhaps reducing the time span
0:15:13 > 0:15:15that you borrow money on at the same interest rate?
0:15:15 > 0:15:17How much more or less will it cost you if you borrow money over
0:15:17 > 0:15:21different periods of time? And maybe it will help them enjoy maths
0:15:21 > 0:15:24- a wee bit more, as well. - Thank you both.- Thank you.- Thanks.
0:15:24 > 0:15:27Now, Sarah Pennells has been busy helping Carol Owen
0:15:27 > 0:15:30tackle her spending habits in the hope that, in the future,
0:15:30 > 0:15:31she can stick to a budget.
0:15:31 > 0:15:34But how easy is it to stay on track?
0:15:34 > 0:15:35Well, to find out,
0:15:35 > 0:15:39we caught up with some of the people our team of experts visited
0:15:39 > 0:15:41on our last series of Right On The Money.
0:15:41 > 0:15:43And 12 months after our money makeovers,
0:15:43 > 0:15:47have our families managed to fall back into bad habits?
0:15:48 > 0:15:50Exactly a year ago,
0:15:50 > 0:15:54these people all asked for our help to tackle their money worries.
0:15:55 > 0:15:58First up was 75-year-old Joyce.
0:15:58 > 0:16:00We sent in financial expert Richard Fenton
0:16:00 > 0:16:03to find ways to make her state pension last longer.
0:16:04 > 0:16:06Hi, Joyce. Richard.
0:16:06 > 0:16:07- Pleased to meet you.- Come in.
0:16:07 > 0:16:09The widow was left completely baffled by the bills
0:16:09 > 0:16:11after husband Brian passed away.
0:16:13 > 0:16:15He used to pay everything that came in and went out.
0:16:15 > 0:16:18This folder had little notes in.
0:16:18 > 0:16:21"Joyce, don't worry about this, it's done by direct debit."
0:16:21 > 0:16:24This has been what I call my bible.
0:16:25 > 0:16:29But Richard soon spotted that some of Joyce's outgoings had crept up
0:16:29 > 0:16:31to more than she needed to pay.
0:16:31 > 0:16:36So the actual cost of your current insurance is £666.91.
0:16:38 > 0:16:40I can see you're a little bit shocked.
0:16:40 > 0:16:43I am, actually. I... Truly, truly...I am.
0:16:43 > 0:16:45But to Joyce's delight,
0:16:45 > 0:16:48Richard soon found her a much better deal.
0:16:48 > 0:16:50- That's it.- We're in the money!
0:16:51 > 0:16:55The car insurance was horrendous.
0:16:55 > 0:16:58It was more or less £700 a year
0:16:58 > 0:17:02where now I'm only paying £300 a year,
0:17:02 > 0:17:07and hoping, this year, that I can even go for an even lesser one.
0:17:07 > 0:17:11Joyce was desperate to save enough to visit her niece in Australia
0:17:11 > 0:17:12but in the meantime,
0:17:12 > 0:17:16a big wodge of her pension was going on costly calls
0:17:16 > 0:17:18just to keep in touch.
0:17:18 > 0:17:20Hello, good morning, sweetie.
0:17:20 > 0:17:24Richard showed her how apps like Skype let you chat
0:17:24 > 0:17:26without paying a penny...
0:17:26 > 0:17:30You'll be able to do this with family over in Australia any time.
0:17:30 > 0:17:34..which means Joyce can call down under whenever she likes
0:17:34 > 0:17:37without it affecting that holiday fund.
0:17:37 > 0:17:40- Hello, sweetie!- Joyce, hello.
0:17:40 > 0:17:42- Look at you!- I love it, I love it!
0:17:42 > 0:17:45Wish I'd known about it years ago, I really do.
0:17:45 > 0:17:48They're thousands of miles away across the ocean,
0:17:48 > 0:17:51and yet, they're here with you in the room.
0:17:51 > 0:17:54He's made a big difference for me, made a very big difference.
0:17:54 > 0:17:59With being on my own, my phone bills used to come in at £100-odd,
0:17:59 > 0:18:03which was ridiculous. Now they are coming in at ten, which...
0:18:03 > 0:18:05There's no comparison.
0:18:05 > 0:18:06Without the show,
0:18:07 > 0:18:11I wouldn't be... I don't think I'd be as happy as I am today.
0:18:13 > 0:18:15Our advice has also boosted the coffers
0:18:15 > 0:18:18of newlyweds Chris and Sarah Glover,
0:18:18 > 0:18:20who, when we met them last year,
0:18:20 > 0:18:25were feeling the effects of a once-in-a-lifetime spending spree.
0:18:25 > 0:18:27We've bought the house, the motorbike,
0:18:27 > 0:18:29been eating out, the washing machine,
0:18:29 > 0:18:31car loans, 13 grand each.
0:18:31 > 0:18:33Sofa, and various bits and bobs.
0:18:33 > 0:18:35If we see it, we buy it.
0:18:36 > 0:18:40It took a visit from who else but Sarah Pennells...
0:18:40 > 0:18:41Hello, hi, I'm Sarah.
0:18:41 > 0:18:43Hello, nice to meet you. Come on in.
0:18:43 > 0:18:47..for Sarah and Chris to face the true size of their credit card debt.
0:18:47 > 0:18:50Adding up your credit card debts and your loans,
0:18:50 > 0:18:53it's about £43,000 in all.
0:18:53 > 0:18:55Is that what you thought it was?
0:18:55 > 0:18:57No, that's a bit of a shock, actually.
0:18:57 > 0:19:01I actually thought it was 20,000, so I'm completely off the ball there.
0:19:01 > 0:19:03One year on, this young couple
0:19:03 > 0:19:07have made clearing their credit cards their financial priority.
0:19:08 > 0:19:11In order to make the debt a bit more real, to be honest,
0:19:11 > 0:19:14we created a whiteboard with everything on there
0:19:14 > 0:19:17just so we could highlight which parts we needed to hit first
0:19:17 > 0:19:19in order to reduce the debt.
0:19:19 > 0:19:20Every month when we overpay,
0:19:20 > 0:19:23we come in here and we just change the numbers
0:19:23 > 0:19:26to reflect the actual position. And it seems to work quite well.
0:19:28 > 0:19:31Drawing up a realistic budget and sticking to it
0:19:31 > 0:19:35is a million miles away from their spending habits of a year ago.
0:19:35 > 0:19:39But staying on track has meant they've had to do some cutting back.
0:19:39 > 0:19:42- Definitely don't go out during the week.- No, exactly.
0:19:42 > 0:19:45What we tend to do as well is batch prepare food for the week,
0:19:45 > 0:19:49so that way... Well, Sarah batch prepares food for the week.
0:19:49 > 0:19:51We stick to the meal plan, as well,
0:19:51 > 0:19:54because it's already done and it's already prepared.
0:19:54 > 0:19:55That's saved us a fortune.
0:19:57 > 0:19:59By spending less and paying back more,
0:19:59 > 0:20:02Sarah and Chris are moving closer to their goal of becoming debt-free.
0:20:02 > 0:20:04We've paid off one of the credit cards
0:20:04 > 0:20:07and we're just working directly through the list now.
0:20:07 > 0:20:10It's such a nice feeling to actually have a credit card closed
0:20:10 > 0:20:13and say, "Right, we're done with that now."
0:20:13 > 0:20:14Let's move onto the next one.
0:20:14 > 0:20:16Since we've been on Right On The Money,
0:20:16 > 0:20:20we've really stuck to everything that's been suggested
0:20:20 > 0:20:24- and we've saved around... - BOTH:- ..£5,000?
0:20:24 > 0:20:27That's a fantastic result for Sarah and Chris.
0:20:29 > 0:20:31But Tracey and Keith Hankinson
0:20:31 > 0:20:34have been able to save themselves even more.
0:20:34 > 0:20:35When we first met them,
0:20:35 > 0:20:39their money worries were growing almost as fast as their two boys.
0:20:39 > 0:20:42I think we're bad at saving our money.
0:20:42 > 0:20:44We kind of live for the day.
0:20:44 > 0:20:46If we had extra money,
0:20:46 > 0:20:49I'd like to do definitely something as a family together.
0:20:49 > 0:20:51Have a big holiday somewhere for once, like,
0:20:51 > 0:20:53before the kids are too big and going to leave us.
0:20:53 > 0:20:55I want them to have those memories, not just think,
0:20:55 > 0:20:57"Oh, we couldn't afford to do that."
0:20:57 > 0:21:01And it didn't take Fergus Muirhead long to work out
0:21:01 > 0:21:04where the Hankinsons were wasting their cash.
0:21:04 > 0:21:07He's like the supermarkets' ideal customer.
0:21:07 > 0:21:09Several packets of biscuits,
0:21:09 > 0:21:12there will probably be some cakes and scones and there.
0:21:12 > 0:21:16But the family were paying a high price for Keith's sweet tooth.
0:21:16 > 0:21:19I've got an average week's total here. What do you think it is?
0:21:19 > 0:21:21£263.
0:21:23 > 0:21:25But it wasn't just the biscuits
0:21:25 > 0:21:27that were blowing the total shopping budget,
0:21:27 > 0:21:29there were huge savings to be made
0:21:29 > 0:21:32by switching the insurance on Keith's van.
0:21:32 > 0:21:35The cheapest annual premium came out at £352,
0:21:35 > 0:21:37compared to £1,080.
0:21:37 > 0:21:40- That's a huge saving, isn't it? - Massive.- That's fantastic.
0:21:41 > 0:21:46After just one year of following Fergus's financial advice,
0:21:46 > 0:21:50the Hankinsons are wasting less and saving more.
0:21:50 > 0:21:53I think the shopping's made the biggest difference, definitely.
0:21:53 > 0:21:56It's very rare now that we have those additional shops.
0:21:56 > 0:21:59We tend to get such a big shop that it covers everything.
0:22:01 > 0:22:05And by shopping around for better prices from utility suppliers,
0:22:05 > 0:22:08there's more money in their pockets at the end of every month.
0:22:09 > 0:22:15We've got the total monthly saving so far, which is 577.
0:22:15 > 0:22:17And the yearly saving as well.
0:22:19 > 0:22:23And that whopping saving comes to nearly £7,000.
0:22:23 > 0:22:25All by making simple adjustments
0:22:25 > 0:22:28that might very easily work for you, too.
0:22:28 > 0:22:30When she wrote it down and showed me the other day
0:22:30 > 0:22:34how much it's actually been, I was shocked.
0:22:34 > 0:22:38Quite exciting. It's... Yeah, I feel like we've achieved something.
0:22:39 > 0:22:42Thanks to their Right On The Money makeover,
0:22:42 > 0:22:44Tracey and Keith now have some spare cash
0:22:44 > 0:22:48to put towards quality time with their family.
0:22:48 > 0:22:52We're planning a weekend away in London,
0:22:52 > 0:22:53we're going away to the Peak District,
0:22:53 > 0:22:56so we've got things in the pipeline.
0:22:56 > 0:22:59I think the experience will be everlasting for me.
0:22:59 > 0:23:02I think it was a big wake-up call
0:23:02 > 0:23:05when we realised how much money we could save
0:23:05 > 0:23:08and I think I will always do that now.
0:23:08 > 0:23:10I don't want to waste money any more.
0:23:15 > 0:23:17And the lovely Joyce is here with me.
0:23:17 > 0:23:19- Joyce, it's fantastic to see you again.- Nice to see you.
0:23:19 > 0:23:23Tell me, why do you think you got so much from the experience
0:23:23 > 0:23:25- of being on the show? - I've learned a lot from it.
0:23:25 > 0:23:30I have learned how to say, "No, I'll look for something else."
0:23:30 > 0:23:31They will come back to you and say,
0:23:31 > 0:23:34"Just give me a few minutes, I'll have a look for you."
0:23:34 > 0:23:37And they come back with an answer, "Well, we can do this for you."
0:23:37 > 0:23:39So never take the first advice.
0:23:39 > 0:23:41Always say, "I'll look somewhere else."
0:23:41 > 0:23:44So, it's important for you to take a bit of a breather...
0:23:44 > 0:23:46- Oh, yeah.- ..have a think whether you really do need it?
0:23:46 > 0:23:50- Oh, yeah, definitely.- Now, a lot of people are set in their ways,
0:23:50 > 0:23:53cos it's not easy to change, but what advice would you give them?
0:23:53 > 0:23:56Find your nieces or your nephews, if you've got them,
0:23:56 > 0:23:59and ask them to just work things out for you
0:23:59 > 0:24:02and I'd give anybody any advice -
0:24:02 > 0:24:05don't take yes for the first answer.
0:24:05 > 0:24:08Always say, "Well, I'll look round."
0:24:08 > 0:24:11Try it, just try it - it can't bite you!
0:24:12 > 0:24:14But you can get somewhere with it
0:24:14 > 0:24:16and you can save some money on it as well,
0:24:16 > 0:24:18because then you will be right on the money.
0:24:19 > 0:24:20Oh, you are good.
0:24:20 > 0:24:22Joyce, I could talk to you all day.
0:24:26 > 0:24:29Friends, Romans, countrymen!
0:24:29 > 0:24:31Lend us a fiver.
0:24:32 > 0:24:35You're not impressed, are you?
0:24:35 > 0:24:37Here's a tip for you - next time you're going on holiday,
0:24:37 > 0:24:39unplug all your electrical items.
0:24:39 > 0:24:42Don't leave them on standby, because, believe it or not,
0:24:42 > 0:24:46by doing that, you save yourself about £80 a year.
0:24:46 > 0:24:48Now, I'm not the only one with some good tips,
0:24:48 > 0:24:50because here's some of your own.
0:24:50 > 0:24:52Are your legs a bit cold in that skirt?
0:24:58 > 0:25:00You're asking the wrong person.
0:25:00 > 0:25:04- Best money-saving tip? We are pretty rubbish at that, aren't we?- Yeah.
0:25:04 > 0:25:08Don't buy bottled water, because it's free out of the tap.
0:25:08 > 0:25:10If you're a uni student, send your money to your parents
0:25:10 > 0:25:13- and get them to send it over to you every week.- That is a good tip.
0:25:13 > 0:25:15Don't go food shopping when you are hungry.
0:25:15 > 0:25:17That is always a good one.
0:25:17 > 0:25:20You have got to do your research. Like, er, yeah...
0:25:20 > 0:25:24I'll be on the internet first-thing - "best value for money?"
0:25:24 > 0:25:28It takes, like, two minutes to do, and people save £300, £400,
0:25:28 > 0:25:31£600 for the year that can go to anything.
0:25:31 > 0:25:33Spend what you've got, not what you haven't got,
0:25:33 > 0:25:36especially credit cards. They're a killer, unless you are rich
0:25:36 > 0:25:38and you can afford it, that's different, yeah.
0:25:38 > 0:25:42Start saving for retirement in your 20s.
0:25:42 > 0:25:43Because it adds up very quickly
0:25:43 > 0:25:46and you have to put a lot less towards it in your 20s
0:25:46 > 0:25:49than you do in your 30s, 40s and so on and so forth.
0:25:49 > 0:25:52I know it's a long time away, but I think that's probably the best bet.
0:25:56 > 0:25:57Earlier on, we met Carol,
0:25:57 > 0:26:02who was forking out a king's ransom on her pampered pooch Stanley,
0:26:02 > 0:26:04but Carol is not alone, because, believe it or not,
0:26:04 > 0:26:10us Brits spend a staggering £4 billion a year on our pets.
0:26:10 > 0:26:13Now, Layla is with us because her little pooch here, Buttons,
0:26:13 > 0:26:16actually gave you a money-making business idea, didn't it?
0:26:16 > 0:26:19I spotted a gap in the market for animal actors.
0:26:19 > 0:26:24- Yep.- So, Urban Paws is an animal casting agency for dogs.
0:26:24 > 0:26:26I have about 400 dogs on our books,
0:26:26 > 0:26:30obviously, with all differing levels of skills, really -
0:26:30 > 0:26:34the cute and fluffy handbag dogs to the stunt dogs to trick dogs.
0:26:34 > 0:26:37- You name it, we have it.- You charge for that - give me an idea...
0:26:37 > 0:26:39Little Buttons here is so well-behaved, we like that.
0:26:39 > 0:26:41How much did he earn you this year?
0:26:41 > 0:26:44He's a earned about £2,000 this year.
0:26:44 > 0:26:45- Two grand?!- Yeah.
0:26:45 > 0:26:48I'd have to sell a kidney for that. What's he done?
0:26:48 > 0:26:50His claim to fame, really, is just singing on command.
0:26:50 > 0:26:53Come on, Buttons, where's Tilly?
0:26:53 > 0:26:54Nugget! Rossi!
0:26:54 > 0:26:58- Come on, Buttons.- Rossi! Rossi! - BUTTONS WHINES
0:26:58 > 0:27:01- There's Tilly? - HE WHINES
0:27:01 > 0:27:03Good boy!
0:27:03 > 0:27:06- BUTTONS WHINES - Well done, Buttons!
0:27:06 > 0:27:09You came in on time. I've got to be honest, he's earned you two grand
0:27:09 > 0:27:11and I am going to be slightly rude here - here's not exactly
0:27:11 > 0:27:14- the supermodel of the canine world. - He is not,
0:27:14 > 0:27:18but when you're talking about the dogs that are literally trained
0:27:18 > 0:27:19to do whatever, any command,
0:27:19 > 0:27:23there is a potential to earn so much money for them.
0:27:23 > 0:27:27Earn fortunes? OK, I'm an animal lover myself, I love all animals,
0:27:27 > 0:27:28but I have actually got my pet here.
0:27:30 > 0:27:31- That's Maverick.- Oh, wow.
0:27:31 > 0:27:34He likes to sit on my head because he feels in control there.
0:27:34 > 0:27:37- Do you think he would make the grade?- Do you know what?
0:27:37 > 0:27:38Funny you say this -
0:27:38 > 0:27:42I am actually thinking of expanding to cater for all animals.
0:27:42 > 0:27:43OK, get Maverick on your book.
0:27:43 > 0:27:46If he can earn me two grand this year, I'll be very happy.
0:27:46 > 0:27:48- Does he talk?- Of course he talks!
0:27:48 > 0:27:51He sings, he whistles, he laughs, he giggles, he's very cheeky.
0:27:51 > 0:27:55- He's lovely.- Fantastic.- Pinches your food, drinks your wine, you name it.
0:27:55 > 0:27:57- Nice talking to you, Layla. - You too.
0:27:57 > 0:27:59I'm going to find some other pet owners now
0:27:59 > 0:28:02- and have a little chat with them. Cheerio, bye-bye.- Bye!
0:28:02 > 0:28:03Now, what are you like at spoiling?
0:28:03 > 0:28:06- Do you?- I don't think I spend that much.
0:28:06 > 0:28:08I probably buy things that she doesn't need.
0:28:08 > 0:28:10- Like?- At Christmas.
0:28:10 > 0:28:11What did you buy last Christmas?
0:28:11 > 0:28:14I think my mum went berserk compared to me.
0:28:14 > 0:28:17My mum bought her a few tug toys.
0:28:17 > 0:28:18- Right.- She bought her some biscuits.
0:28:18 > 0:28:20- Yep.- I bought her a big ball.
0:28:20 > 0:28:23My daughter bought her something that squeaked.
0:28:23 > 0:28:27- He goes to doggy day daycare three days a week...- Costing?
0:28:27 > 0:28:31..cos I work long days. That's £120 a month.
0:28:31 > 0:28:33If my maths is right, 12 x 12 is...
0:28:33 > 0:28:37That's £1,440 a year just on doggy daycare?
0:28:37 > 0:28:40Yeah. I suppose when I think about how much I spend on him a month,
0:28:40 > 0:28:42you are probably looking about...
0:28:42 > 0:28:45You're probably looking at about 220 quid a month.
0:28:45 > 0:28:49- We love our dogs, though, we are known for it, aren't we?- We are.
0:28:49 > 0:28:52Would you ever go without something for yourself
0:28:52 > 0:28:54so you could buy the dog something?
0:28:56 > 0:28:59If the dog needed it, without doubt. Yeah, I'm all he has got.
0:28:59 > 0:29:01He relies on me for everything.
0:29:01 > 0:29:03- Yeah?- Yeah, I would.
0:29:03 > 0:29:06- Is he insured?- He is not, but I have a savings account for him.
0:29:06 > 0:29:08- You have got a savings account just for him?- Yes.
0:29:08 > 0:29:11Instead of paying an insurance company for a policy
0:29:11 > 0:29:12- that you might not use?- Yes.
0:29:12 > 0:29:15That is very shrewd, I like the sound of that.
0:29:15 > 0:29:17How much a month do you put away for him?
0:29:17 > 0:29:20About 40 quid, same as I'd pay for insurance.
0:29:23 > 0:29:26Now, earlier on, we met former policewoman Carol,
0:29:26 > 0:29:28who was constantly running out of money.
0:29:28 > 0:29:33Let's see if we've been able to help her put a stop to that.
0:29:33 > 0:29:35Retired police officer Carol Owen
0:29:35 > 0:29:38should have enough cash for a comfortable lifestyle,
0:29:38 > 0:29:40but instead, every month without fail,
0:29:40 > 0:29:44she runs out of money and just can't understand why.
0:29:46 > 0:29:48When it gets to the end of the month,
0:29:48 > 0:29:51if I go in the red, I feel sick, but I just can't work it out.
0:29:53 > 0:29:55Luckily, personal finance expert Sarah Pennells
0:29:55 > 0:29:59has gone through this former cop's spending offences
0:29:59 > 0:30:01in forensic detail.
0:30:01 > 0:30:05So far, she's already managed to save her £2,400.
0:30:05 > 0:30:09That's by switching her beloved bulldog Stanley's pet insurance
0:30:09 > 0:30:13and by cutting back on treats for herself and daughter Catherine.
0:30:13 > 0:30:15£800 over three months.
0:30:15 > 0:30:18That's over £3,000 a year.
0:30:18 > 0:30:21Oh, my goodness, we are just throwing money away.
0:30:21 > 0:30:26But Carol's biggest financial worry was the expensive finance deal on her car.
0:30:27 > 0:30:30That is a huge thing weighing around me at the moment.
0:30:31 > 0:30:36Sarah recommended that Carol ditch her costly finance deal
0:30:36 > 0:30:40by giving her car back and avoiding £11,000 in repayments.
0:30:40 > 0:30:42Sarah is not convinced she'll go through with it.
0:30:42 > 0:30:47However, on her return, she is in for a surprise.
0:30:47 > 0:30:50- Hi!- Hi, Carol, I noticed you got a new car.
0:30:50 > 0:30:51My new car. Your face!
0:30:52 > 0:30:54I can't believe you sold the old one.
0:30:54 > 0:30:57- Show me what you have been spending the money on.- Come and have a look.
0:30:59 > 0:31:02Carol is tickled pink at what she thinks is a brilliant deal,
0:31:02 > 0:31:06but Sarah is not convinced that this particular case has been cracked yet.
0:31:06 > 0:31:08So how much did this car cost?
0:31:08 > 0:31:122,754, I think.
0:31:12 > 0:31:14Did you buy this outright?
0:31:14 > 0:31:16No, I didn't, it is on finance.
0:31:18 > 0:31:21I don't know about you, Sarah, but my alarm bells are going off.
0:31:21 > 0:31:25The interest rate on this deal is 21.9%.
0:31:25 > 0:31:30- Oh.- Now, that is credit card rates of interest.
0:31:30 > 0:31:33OK, so car finance is complicated,
0:31:33 > 0:31:37but it does seem like Carol has saddled herself with another deal
0:31:37 > 0:31:38she can't really afford.
0:31:38 > 0:31:43I think you can get a cheaper deal if you just take out a loan
0:31:43 > 0:31:46direct with a bank.
0:31:46 > 0:31:51I reckon that you can borrow the amount you need to buy the car
0:31:51 > 0:31:53for about 11% or 12% interest.
0:31:53 > 0:31:56- OK.- With any kind of finance deal like this,
0:31:56 > 0:31:59you get 14 days cooling off period,
0:31:59 > 0:32:03so you can cancel the deal without any penalty,
0:32:03 > 0:32:06but I would suggest you keep the car...
0:32:06 > 0:32:11- OK!- ..ditch the finance deal and take out a bank loan
0:32:11 > 0:32:13- at a cheaper interest rate.- OK.
0:32:13 > 0:32:16- Is that something you are happy to look at?- Yeah, absolutely.
0:32:16 > 0:32:18- Excellent.- Thank you again.- Phew!
0:32:18 > 0:32:21With just one day of the cooling off period left,
0:32:21 > 0:32:24Sarah has come to the rescue in the nick of time,
0:32:24 > 0:32:28saving Carol a further £300.
0:32:28 > 0:32:31Now Sarah has spotted a way for Carol
0:32:31 > 0:32:34to make some money by turning one of her hobbies
0:32:34 > 0:32:36into a nice little earner.
0:32:36 > 0:32:39So, Carol, a little bird tells me that you have got a hidden talent.
0:32:39 > 0:32:41Tell me about this.
0:32:41 > 0:32:44I'm the lead singer in a band, we're a covers band.
0:32:44 > 0:32:48- There's four of us.- I have arranged for you to rehearse
0:32:48 > 0:32:49- in a top local studio.- Wow!
0:32:49 > 0:32:53I've also lined up a top agent just to see whether they can give you
0:32:53 > 0:32:56some pointers and tips on how to make some more money.
0:32:57 > 0:33:00- Fantastic!- But there is a trade-off, there is always a catch.
0:33:01 > 0:33:05In return, I want you to leave me here so I can just do a bit of
0:33:05 > 0:33:07snooping around some more of your paperwork,
0:33:07 > 0:33:10just to see if there is any more savings I can make. Deal?
0:33:10 > 0:33:12Deal.
0:33:12 > 0:33:15As Carol heads off to the studio in her bargain motor,
0:33:15 > 0:33:18Sarah can get snooping.
0:33:18 > 0:33:21What do we have here? Hello, Stanley.
0:33:21 > 0:33:23Home insurance policy.
0:33:23 > 0:33:26I'll look at the price and see if I can make some savings.
0:33:26 > 0:33:27I reckon I can.
0:33:27 > 0:33:31Meanwhile, Carol is setting up for agent Chris Davies.
0:33:31 > 0:33:35The bands Chris manage can earn up to £60,000 a year,
0:33:35 > 0:33:37which is music to Carol's years.
0:33:38 > 0:33:43The reason that we are concentrating on the band now is that
0:33:43 > 0:33:47we are hoping that we're going to make some money from it.
0:33:47 > 0:33:49# I wish I knew you before... #
0:33:53 > 0:33:55But will Chris think they have got what it takes?
0:33:55 > 0:33:59I'd say you could be making upwards of £300-£400 a gig.
0:34:00 > 0:34:03That is, sort of, even before
0:34:03 > 0:34:05you would approach an agency.
0:34:06 > 0:34:09Looks like our secret-copper rocker Carol impressed.
0:34:09 > 0:34:11Time for the sums.
0:34:11 > 0:34:17If they did just two gigs a week, that could mean £7,200 a year.
0:34:17 > 0:34:19Meeting Chris has been brilliant,
0:34:19 > 0:34:22because he's going to be able to show us loads of ways to carry on
0:34:22 > 0:34:25from where we are and to, erm, start us off on the right track.
0:34:26 > 0:34:29But Carol's not the only one who's had a productive morning.
0:34:29 > 0:34:32Sarah's found some new money-saving leads.
0:34:34 > 0:34:37I think my snooping time's up, it looks like Carol's home.
0:34:38 > 0:34:39- Hello, Carol!- Hi.
0:34:39 > 0:34:42- I've been having great fun.- Found anything?
0:34:42 > 0:34:44I think I've found that I can make you some savings,
0:34:44 > 0:34:46so shall we come on through and have a chat?
0:34:46 > 0:34:50- Yeah.- I'll tell you about it.- Come on, Stanley.
0:34:50 > 0:34:53OK, what new evidence has Sarah found
0:34:53 > 0:34:55in this former police officer's house?
0:34:55 > 0:35:00Exhibit one, the gas bill, found in a dining-room drawer.
0:35:00 > 0:35:03It looks to me like you've been with the same supplier for some time
0:35:03 > 0:35:05and you're on their standard tariff.
0:35:05 > 0:35:07Yeah, I always thought that was the cheapest.
0:35:07 > 0:35:10It's actually the best one for the energy company
0:35:10 > 0:35:12because it's generally the most expensive,
0:35:12 > 0:35:16and it's the one that almost three quarters of people are on.
0:35:16 > 0:35:18Having had a look at your energy usage,
0:35:18 > 0:35:23I reckon that we can save almost a third on the cost
0:35:23 > 0:35:24of your energy bill if you switch.
0:35:24 > 0:35:27- A third?- A third on the cost of your energy bill.
0:35:27 > 0:35:29- Wow.- Yes, a third.
0:35:29 > 0:35:33Sarah does it again, another £300 saving.
0:35:33 > 0:35:37Next up, exhibit two, a forgotten direct debit found on the fridge.
0:35:38 > 0:35:40The other thing I noticed,
0:35:40 > 0:35:45that you're paying for a monthly credit-monitoring service.
0:35:45 > 0:35:49- Yes.- Can you just tell me why did you sign up for that?
0:35:49 > 0:35:51- Is that something you... - It was free!
0:35:51 > 0:35:55It was one of these 30-day free trial, erm,
0:35:55 > 0:35:59and then to be honest I'd forgotten about it completely.
0:35:59 > 0:36:01I think we can just cancel that straightaway,
0:36:01 > 0:36:04so that's another £200 saved.
0:36:04 > 0:36:08- Yeah.- Sarah's tactics have saved Carol a bundle of cash.
0:36:08 > 0:36:10Good work.
0:36:10 > 0:36:15But between us Brits waste more than £5 billion a year on long-forgotten
0:36:15 > 0:36:19direct debits, so you need to do some detective work
0:36:19 > 0:36:21on your own bank statements.
0:36:21 > 0:36:22With plenty of money saved,
0:36:22 > 0:36:26Sarah has one last surprise in store for animal-loving Carol.
0:36:26 > 0:36:31You might wonder why I've brought you to an animal rescue centre.
0:36:31 > 0:36:32Yeah!
0:36:33 > 0:36:37The reason is, when I was going through your finances I noticed that
0:36:37 > 0:36:41you give regularly to a couple of different animal charities.
0:36:41 > 0:36:42Yes, I've done it for years.
0:36:42 > 0:36:46So what I've done, I've organised for a volunteer induction course for you today.
0:36:46 > 0:36:47Wow, brilliant.
0:36:47 > 0:36:50And give to charity in that way instead.
0:36:50 > 0:36:52Fantastic, I'd love to.
0:36:56 > 0:36:59So what I need you to do is take all the bedding out...
0:36:59 > 0:37:01- Yeah.- And then we'll give it all a good spray around.
0:37:01 > 0:37:03- Am I doing this right?- Yeah.
0:37:06 > 0:37:09- Here's Jimmy.- Oh, Jimmy, Jimmy, Jimmy.- As you can see...
0:37:09 > 0:37:12What a brilliant name. I think that's fantastic.
0:37:12 > 0:37:14As you can see, he's really affectionate.
0:37:14 > 0:37:16Carol's in her element here.
0:37:16 > 0:37:19She's time rich and cash poor, so for her,
0:37:19 > 0:37:24swapping her charity donations for volunteering means that everyone's
0:37:24 > 0:37:25a winner.
0:37:25 > 0:37:29Carol, how have you been doing on your induction course?
0:37:29 > 0:37:32- How's she been getting on? - Brilliantly.
0:37:32 > 0:37:37- I've enjoyed it.- Definitely want to take you on as a volunteer. - I'm definitely going to take it up.
0:37:37 > 0:37:40And you seem to have a new friend.
0:37:40 > 0:37:43- I have!- Who's this? Someone seems very keen on you.- This is Russell.
0:37:43 > 0:37:47- Russell's rather cute. He is, and he's good with dogs.- Right, OK.
0:37:47 > 0:37:50Oh, Carol, what are you like?
0:37:50 > 0:37:52You're not going to be keen on this next bit, Sarah.
0:37:52 > 0:37:55And, you know what, think I might take him home!
0:37:58 > 0:37:59Carol, that was...
0:37:59 > 0:38:02Thanks for saving me all that money, I've bought a cat!
0:38:02 > 0:38:05The plan was not to save you money elsewhere so you spend it on a cat.
0:38:05 > 0:38:07- I know, I know.- But are you seriously... I mean, are you
0:38:07 > 0:38:10seriously thinking that you might adopt Russell?
0:38:10 > 0:38:11I am serious. Yeah.
0:38:11 > 0:38:15We've been thinking about it for a long time and...
0:38:15 > 0:38:18Yes, I know, it's just that I want to come home!
0:38:18 > 0:38:21Look out, Stanley, you'd better make the most of the peace and quiet
0:38:21 > 0:38:22while you can.
0:38:22 > 0:38:25Carol has enjoyed her experience so much that she's going to
0:38:25 > 0:38:27volunteer once a week,
0:38:27 > 0:38:31but with Russell the cat now added to her household costs,
0:38:31 > 0:38:33it's just as well Sarah has managed to make
0:38:33 > 0:38:36these other spectacular savings.
0:38:36 > 0:38:39She's slashed £400 off Stanley's pet insurance,
0:38:39 > 0:38:42halved what Carol spends on treats for Catherine,
0:38:42 > 0:38:45netted another £500 by cutting down on coffees,
0:38:45 > 0:38:49saved £8,000 by securing a better car deal,
0:38:49 > 0:38:54Carol's singing gigs could earn her £7,200 a year,
0:38:54 > 0:38:57£300 by switching energy provider
0:38:57 > 0:39:00and another £200 dumping that direct debit.
0:39:00 > 0:39:04That's a stonking saving of £18,100.
0:39:05 > 0:39:07But have all those savings
0:39:07 > 0:39:10made a difference to Carol and Catherine's life?
0:39:10 > 0:39:12What advice am I going to stick to?
0:39:12 > 0:39:14All of it. Absolutely all of it.
0:39:14 > 0:39:19Everything Sarah said, just I can't fault the advice at all.
0:39:19 > 0:39:22Knowing that every month we're going to be in the black,
0:39:22 > 0:39:26we're not going to be overdrawn, we're going to have money to spend,
0:39:26 > 0:39:28we're going to have money to save, it's life-changing.
0:39:28 > 0:39:30It really is.
0:39:39 > 0:39:41And Carol and Catherine are with us.
0:39:41 > 0:39:45Carol, first up, how's Stanley getting on with Russell?
0:39:45 > 0:39:48They're getting on like a house on fire, love each other, yeah.
0:39:48 > 0:39:51Six months ago your personal finances were in a bit of a mess.
0:39:51 > 0:39:54Yeah, they were. How are you feeling now?
0:39:54 > 0:39:56Erm, a weight is lifted off my shoulders.
0:39:56 > 0:40:00I feel much better, much happier, much more secure for the future,
0:40:00 > 0:40:01for both of us.
0:40:01 > 0:40:03I know that what we've got, we can live on.
0:40:03 > 0:40:07Our lifestyle hasn't changed, to be honest with you,
0:40:07 > 0:40:11it hasn't changed at all, and yet every month we're saving money.
0:40:11 > 0:40:13- Strange!- It wasn't that hard, was it?
0:40:13 > 0:40:15It wasn't that hard, no, it wasn't.
0:40:15 > 0:40:18- And has your philosophy on spending actually changed?- Yes, it has.
0:40:18 > 0:40:21- Absolutely, totally, it's changed. - Catherine, I know that
0:40:21 > 0:40:24mother-daughter relationship is such a strong bond.
0:40:24 > 0:40:27The little bit of pressure, like my daughter always says,
0:40:27 > 0:40:30"Mum, can you buy me this, can you buy me that?"
0:40:30 > 0:40:32Do you think you've learned something about, you know,
0:40:32 > 0:40:35just stop asking Mum for little items?
0:40:35 > 0:40:39- Yeah, I feel...- To try and assist her a little bit.
0:40:39 > 0:40:42Yeah, I feel like instead of getting her to buy me things, just
0:40:42 > 0:40:45spending time at home watching the telly and just being together,
0:40:45 > 0:40:48- would be fine.- Are you managing to curb the big spends?
0:40:48 > 0:40:51Yeah, I look in the shop prices and then I'll look online to see if
0:40:51 > 0:40:55there's anything cheaper, so that's helped and I do save money that way.
0:40:55 > 0:40:56Catherine, I've got to come to you,
0:40:56 > 0:40:59because I was chatting to you a couple of minutes ago and
0:40:59 > 0:41:01you're disappointed that Mum swapped her car.
0:41:01 > 0:41:03- You loved that little Mini! - I did!
0:41:03 > 0:41:07And now you're in a sensible family car you're devastated, aren't you?
0:41:07 > 0:41:12Erm, it's very embarrassing!
0:41:12 > 0:41:13Thanks!
0:41:13 > 0:41:16Teenagers are more fussy about cars than parents, aren't they?
0:41:16 > 0:41:19They are, but you know, I'm saving enough every month now,
0:41:20 > 0:41:23I will soon have paid my new car off.
0:41:23 > 0:41:27- Yay!- That's brilliant. - Thank you, Sarah. Again!
0:41:27 > 0:41:30Didn't hear a "yay" from Catherine!
0:41:30 > 0:41:32- That is incredible.- Yeah, it is.
0:41:32 > 0:41:35Catherine, have you seen a big change in your mum?
0:41:35 > 0:41:38- Have you noticed her, say, worrying less?- Yes, very much.
0:41:38 > 0:41:40I feel that she's much happier
0:41:40 > 0:41:44and I just feel there is a very big change in her.
0:41:44 > 0:41:46The big question is,
0:41:46 > 0:41:48can you stick to the saving habits long-term?
0:41:48 > 0:41:51Absolutely. It's a lifestyle change and a lifetime change.
0:41:51 > 0:41:55- Yes. Yeah, we will.- Good on you both.- Yeah. Keep it up.
0:41:55 > 0:41:58If you'd like one of our experts to come round and sort out your finances,
0:41:58 > 0:42:04as they did for Carol and Catherine here, e-mail us at...
0:42:04 > 0:42:06Or, if you're after more ways you can save money right now,
0:42:06 > 0:42:08here's what to do.
0:42:10 > 0:42:14Our website has everything you need to sort out your spending.
0:42:14 > 0:42:18We've teamed up with The Money Advice Service to bring you
0:42:18 > 0:42:21easy-to-use money-saving tools to plan your budget,
0:42:21 > 0:42:25calculate the cost of your car or credit cards and give your money
0:42:25 > 0:42:27a complete health check.
0:42:27 > 0:42:28Download them at...
0:42:32 > 0:42:35..where you can also take our interactive spending test.
0:42:35 > 0:42:39You'll find more tips and advice to keep your finances on track.
0:42:44 > 0:42:48Personal-finance expert Fergus Muirhead is back with us to answer some questions
0:42:48 > 0:42:49from the people we've met today.
0:42:49 > 0:42:51Question from Becky,
0:42:51 > 0:42:54who is looking to buy a new house but is worried about all the hidden costs.
0:42:54 > 0:42:58What kind of things should she be budgeting for?
0:42:58 > 0:43:01There's some research by a bank that I read the other day that said
0:43:01 > 0:43:03that we spend six months looking at some of these big purchases
0:43:03 > 0:43:08like houses and then we spend 15 minutes looking at how we're going to finance these purchases.
0:43:08 > 0:43:10So, 15 minutes looking at how we're going to pay back the
0:43:10 > 0:43:12most amount of money we're ever going to borrow.
0:43:12 > 0:43:14You need to sit down and do your sums,
0:43:14 > 0:43:17because it's not just about your monthly mortgage repayments,
0:43:17 > 0:43:20it's not just about the deposit you're going to have to pay,
0:43:20 > 0:43:23you've got to remember that you're going to have to pay solicitors,
0:43:23 > 0:43:24you'll have to pay surveyors,
0:43:24 > 0:43:26you might want to get the house redecorated,
0:43:26 > 0:43:28you'll have to pay removers when you move in,
0:43:28 > 0:43:31so always add 15% or 20% onto the money you think you'll spend.
0:43:31 > 0:43:34At least, because it's going to cost a lot more than you think
0:43:34 > 0:43:36- it will cost you.- Katrina says,
0:43:36 > 0:43:39"I've ordered and paid for some goods but the shop's gone bust.
0:43:39 > 0:43:41"Can I get a refund?"
0:43:41 > 0:43:43If the shop's shut its doors and it's no longer trading
0:43:43 > 0:43:47and you're waiting on an order to be delivered from that shop,
0:43:47 > 0:43:49the chances are that you won't get it.
0:43:49 > 0:43:51You will go to the bottom of the queue of creditors,
0:43:51 > 0:43:54so the chances are slim that you'll get your money back if you're waiting
0:43:54 > 0:43:58on an order, unless you've used your credit card,
0:43:58 > 0:44:01and there's a golden nugget here which people don't know about.
0:44:01 > 0:44:05Section 75 of the Consumer Credit Act says that if you buy goods that cost
0:44:05 > 0:44:09more than £100 and less than £30,000 on your credit card then
0:44:09 > 0:44:14the credit-card company is equally liable if something goes wrong with that contract.
0:44:14 > 0:44:16So, rather than the retailer or the manufacturer,
0:44:16 > 0:44:18you can go to the credit-card company
0:44:18 > 0:44:19and say, "I'd like my money back."
0:44:19 > 0:44:23I've used it a few times myself and it does work, it does protect you. Thank you.
0:44:23 > 0:44:26In fact thanks to everybody who's joined us in Chester today.
0:44:26 > 0:44:28And not forgetting you at home, too.
0:44:28 > 0:44:32That's all from us today, so until the next time, goodbye. Cheerio.