Episode 2 Right on the Money

Whether you're a spender or a saver,

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

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

and taken it to people right across the UK.

Whatever help you need with your finances, we are right on the money.

Hello, and welcome to Right On The Money,

the show that goes all out to boost your piggy bank.

And the best part is,

we're going to show you how to do it in the easiest possible way.

Sounds good to me.

Let's get on with it. Here's what's coming up in today's show.

The full extent of one husband's impulse shopping habit is revealed

when he's confronted with bags of evidence.

Nickie, your face says it all.

Oh, my word!

And when it comes to contactless cards, we've gone barking mad.

Smudge is wearing the new contactless coat.

People don't tend to carry cash any more,

so it's a simple way to make a donation.

BEEPING

Now, the great thing about our show is that it's full of top tips and

expert advice.

Which is something our next family is definitely in need of.

43-year-old Nickie Herrick and her husband, 48-year-old Graham,

have been together for 20 years.

It was a mutual love of sports and fitness that initially drew them

together.

Met each other, started dating.

Went on a holiday.

Come back, got engaged.

Got married. Had children.

Yeah. It was just meant to be, I guess.

They live in Luton, together with their children, Bethany and Sophie.

Five years ago, former gymnastics coach Nickie's life changed

after she was diagnosed with a rare, debilitating, genetic condition.

I think it took a good nine months of testing

and it eventually came out that I have the Ehlers-Danlos syndrome,

and also gastroparesis,

which basically means paralysed stomach.

So, my food can't break down.

It has just been quite a rapid decline.

It now means that I'm just sort of left in a wheelchair.

I can still walk, but things really hurt and I get extremely tired.

People don't realise how much pain she's in because you look at her and

you think everything's OK

when underneath really it's not.

So, you know, she's really, really positive and keeps her chin up.

To help look after Nickie,

self-employed driving instructor Graham cut his working hours.

Therefore, the family's income has dropped.

I've spent so much time in hospital.

He's always been there.

He would come up at the drop of a hat, sort the kids out,

which you can't ask for better, really.

Family, to me, means sticking together.

Too right, Graham.

Nickie's mobility means it's not easy for her to get to the supermarket.

So, Graham has stepped in.

But he's no savvy shopper.

Um, I don't really even look at the cost of what the shop's come to.

The cost of things is a little bit of a mystery

because Nickie spent such a long time in hospital

that life has come up to the top of the priority list.

Well, Graham, Miss Marple is otherwise engaged.

But we've got someone better -

FT Money editor and all-round financial hero, Claer Barrett.

Hi. I'm Claer. Hi, Claer.

Come in. Thank you.

Hi. Morning.

Tell me about who manages the money

at home.

Nickie does tend to take control of the finances.

Graham, how much do you get involved?

Do you look at bills, look at your bank statements?

To be honest, I'm traditionally the world's worst for keeping on top of

things like that, but it's something really that...

It's hard to find the time to do.

..I don't really take much notice of.

Understandably, the family's focus has shifted away from their finances

over the past couple of years.

But now it's time to regain control of the coffers,

as they want to adapt their house.

Over the last few years,

I've become more and more dependent on a wheelchair.

Unfortunately, we only have one toilet.

Right. And that's...?

Upstairs. Upstairs.

Yes. So, even if we could extend in some way

so that I could have some downstairs living...

Well, let's try and make that happen.

Claer has got a moneymaking and money-saving plan for the Herricks

and cracks on with some saving suggestions.

First up, with four mobile phones on the go,

their monthly bills are pretty hefty.

And where better to start the journey to financial fitness than in

Graham's garage gym?

We've been looking at your bank statements to find out how much,

as a family, you're all individually spending

on your different phone contracts.

Feel the weight of that monthly bill, Graham.

Oh.

?101.99.

Yeah. That's how much all our phone bills come to.

All added together, per month.

Now, for some good news.

I've worked out that you could actually get a much better deal for

your mobile phone usage as a family

if, guess what, you get a family deal.

Ah! But how much will they save?

So, this is how much it could go down to.

Yes. This would be your new monthly bill

if you switched to a family contract.

?45. ?45.

So, we'd save like ?60 a month.

The deal Claer found them is SIM only,

which means the four of them get a SIM card,

but have to keep their existing handsets.

Let's hope that gets a good reception from the girls.

Wow! Have you got the phone number?

That's a lighter load to bear.

By switching to a family deal, they could save around ?60 a month,

or 683 smackers a year.

What a result!

But now we're going to move on, Graham, to your credit card.

OK. I think I'd better put these down.

LAUGHTER

No use running away, Graham.

Claer is determined that her training regime will make you financially fit.

Graham has racked up ?1,300 on his credit card.

But each month, he's only paying the minimum.

A big no-no in Claer's eyes.

Imagine, Graham, that you're 21 again.

I wish. OK.

So, hold that thought. You're feeling positive about being 21.

Imagine also that you've got a ?3,000 credit card bill.

Now, if you only paid off the minimum payment on that bill

per month,

how old do you think you would be before your balance was cleared?

Er, probably the age I am now.

You're exactly right.

It would take you until nearly the age of 50...

That was a good guess. ..to pay it off.

So, that's nearly 30 years.

The average British household owes around two and a half grand on their

credit cards. That's a whopping 67.6 billion across the country.

Claer's advice is to pay off your credit card every month

if you can to avoid those interest charges.

Claer reckons, if they used the ?62 saved on their mobile phone

bills to do this, then the credit card debt will soon vanish.

All of the charges and interest that you're paying

are fattening the pockets of the credit card companies.

So, we need to act.

So, what do you think of paying ?62 a month in order to clear that

balance? Does that sound achievable?

Yeah, that's definitely a good suggestion.

If he ups his repayments, Graham will be debt-free in just 21 months,

and could save ?416 overall

in interest charges.

Ker-ching.

Time to put the family's shopping habits under the spotlight.

Claer's noticed they spend a hefty amount in the supermarket.

While Graham's out,

Claer decides to lift the lid on where all that cash is going.

Graham confessed that whilst he goes out to the shops

and tops it up every week,

he doesn't actually know what's in the middle and the bottom.

So, I thought I'd sneak out here.

Go on, Claer. Get in there.

Dig deep. Sausages.

What's this?

OK. Another packet of frozen chicken breast fillets.

That's about the fourth one we found so far.

Wow! It just goes on and on.

I wonder if they know just how much money they've got tied up in this

chest freezer. I mean, this is hundreds of pounds.

That's a lot of frozen assets.

Earlier, Claer suggested a small experiment

to find out why the Herricks have got so much tucker

tucked away in the deep freeze.

So, we've sent Graham off to the shops.

It's going to be fun. You've given him a list,

and that list had five things on it. It did, yeah.

How many things do you think Graham will probably bring

back with him? Oh, gosh.

I would say possibly double it.

Behave yourself, Nickie.

You're way, way off.

Right. Oh, my God!

Nickie sent you out to the shops with a list

that had five things on it and you've come back with four bags.

Five things, not five bags.

What...? What caught your eye in the supermarket, other than all of it?

Well, our super snooper will soon find out.

Er...chocolate.

Chocolate.

Chocolate.

More chocolate.

Ooh, we've got some shampoo and conditioner.

Were these on offer? Is that why you bought them?

No, I just picked up shampoo and conditioner.

But you haven't got any hair, Graham. No, they're not for me.

They're not for me.

Oy, oy. Steady on, Claer. Graham looks just fine to me.

Chicken breasts. Always need chicken breasts.

Interesting.

There's at least 20 individual chicken breast portions

in your freezer.

You're buying lots and lots of food, but you don't know what you've got.

I've got to ask, how much did you spend? This come to ?124.

?124!

Nickie, your face says it all.

Oh, my word!

Too right.

Let's hear what Graham's got to say in his defence.

I think I just pick up stuff that takes my fancy.

Life is such a rush

that I don't spend the time looking at the labels

and the items and the deals.

I just want to get in the shop, get round it

and get out as soon as possible.

But Claer thinks that ordering their groceries online

is a simple way for them both to decide what they actually need

from the supermarket.

A bit of planning ahead is a pain but the ultimate reward is,

if you can really control the amount of money that you're spending,

then your dream of the home extension can only come nearer.

Claer reckons that by doing this

they could save a staggering

?2,340 a year.

Graham is a classic impulse spender,

but it seems that Nickie is prone to a spot of that, too.

I must admit I love spending on the girls.

Yeah. Just treating them.

Because they've had so much to deal

and they're so brilliant with everything.

What a nice mum!

But Claer's worked out that Nickie spent ?1,327 last year

buying designer clothes from websites

that specialise in flash sales and deal-of-the-day offers.

But Claer wants to delve deeper.

What the big brands do to make us spend money is making us think

like we're getting the deal of the century.

Even if the price is actually quite high,

the fact there's some money off makes us think, "This is OK.

"I'm getting a deal here."

It's understandable that Nickie wants the best for her girls.

But Claer suspects they would rather the money went into extending the house.

Something that would make their mum's life much easier.

They don't want to see you struggling at night

and not being able to have everything on the same floor.

I'm sure they would swap a million jumpers if they...

I'm sure they would. If you could get that. Definitely.

At the end of the day, they'll want their mum to be happy

more than they'll want, you know...

A sweater or a pair of jeans or something. Exactly. Yeah.

I think it's time to stop the sales.

Good.

Great work, Claer.

And another ?1,300 saved.

Now it's time to think about how Nickie can make some money.

She's become an expert in nail art

because her illness means that she no longer coaches gymnastics.

Claer thinks Nickie could turn her hobby into a handy money-spinner.

I hear you've got a bit of a talent for nail treatments.

Claer sent Nickie to her local college in Bedfordshire to meet

Alex, who runs courses for aspiring nail technicians.

It runs on a Wednesday evening for about 36 weeks.

That will give you all the skills you need to be able to set yourself

up as a self-employed nail technician.

Alex says a qualified nail technician could earn

around ?10 an hour working from home.

It's a relatively cheap set-up really to do nails.

You just need, you know, an area that's a good height for you

to work for your posture.

So, perhaps, a nail station, a stool and a chair.

That's all you need. Well, I've got one part.

I'm so excited. Thank you.

Nice one, Nickie. If you think this is the career for you, go on,

pick up the phone and give your local college a buzz.

They'll have all the details.

Just made me feel like, I don't want to get tearful, that I'm actually,

or can be worth something again.

I don't have to just sit in my house feeling down about things.

So, to feel that

I can be someone again is like a second coming.

Join us later when Claer dishes out some more money-saving tips.

How does that make you feel? That would be amazing.

Smashing!

And Nickie and Graham will be joining Dom

and I to talk about the whole experience.

First, let's speak to Andy Webb from the Money Advice Service

and consumer psychologist Dimitrios Tsivrikos.

Andy, I'm going to start with you.

The family's situation has been pretty dire

over the last couple of years.

As a result, their finances have suffered. What's the advice?

I mean, we all have stages in our life where life gets in the way.

When that happens, I think,

often the things that drop down the priority list are those kind of

financial issues. But that's not the thing we should be doing.

Take a couple of hours, and get all your credit card statements,

your bank statements, and list out everything you've been spending.

Just pick them out one by one

and try to find the ways where you can get a better deal

or you can cut back.

If you do it bit by bit, or one by one, as I say,

it's not going to be too overwhelming

and hopefully you'll get your finances back on track.

Nickie, she said she was an impulse spender, didn't she?

She did. She found it quite funny but... Self-confessed.

So, how do we stop them?

How do we curb that bargain-hunting spirit

that we find in so many people?

I think that we have two techniques. One of them is quite easy.

Go out with a full stomach. Don't go out shopping hungry.

Research has shown that people that go out hungry,

they spend 30% to 40% a lot more than otherwise.

The second thing is, actually, withdrawal costs.

I think, when we spend with Visas and a lot of other cards,

we don't really realise how much money we might be ending up spending.

So, set yourself a limit,

and actually withdraw the amount of cash that you will be spending.

The physicality of actually exchanging cash for goods

is so much more powerful... It hurts.

It does, it really does hurt.

I've decided to get you a little present, Dom.

Because... About time. ..I know you like to spend on coffees.

So, Tom...

Can you just come over and give Dom his little present, please?

Certainly. What's going on here?

Right. Right. Dom... Roll up your sleeve, please.

That's not a watch you've got there, is it?

Well, we've got a little watch for you.

Mm-hm. A little wearable device,

which will help curb that impulse to buy the coffees.

Can I ask why it hasn't got a watch face,

but got a picture of a lightning bolt on?

You don't need to worry about that. Tom... It's a bit of a clue.

Tom, explain how this watch works.

So, this isn't a watch, this is a bracelet

that gives you electric shocks.

Oh, charming. Thanks, Denise.

And we know... Yeah.

..how people are using cards, using mobile phone payments

and what we're doing here is we're connecting people's bank accounts

with devices such as this

so that we can bring that physical element of their spending back into

the real world.

So, you, as the consumer, can set your spending limits.

Then, when you go and use your card to make that purchase,

or your mobile phone payment,

that's when, if you go over that limit,

you'll get a little reminder.

Let's just test it to see if it works. How powerful's this going to be?

Don't worry about that. Have to wait and see.

Order a coffee, please, Dom.

Can I have a skinny latte, please, extra hot?

It does... Did it get you? It was like a needle prick, wasn't it?

I was expecting a little tingle, but it was one of those.

It's good, but it's a bit of a harsh way to curb your spending, isn't it?

I'd save money, but I'd end up spending a weekend in A, wouldn't I?

You may laugh, Lewis, but I think you should have a go at this, as well?

Come on, Tom. Stick it on Denise here.

Here we go. Right. Maximum power, please, if you don't mind.

Thanks. Thanks, friend. Lewis... Right.

Where's my coffee?

Oh, God!

Exactly. You see.

Thanks, Tom. I like that.

You are rotten.

I'll have one, please. Oh, gosh.

Thanks, guys.

Now, we love a good fact on this programme, so here's one for you.

It's been ten years since the first contactless payments were made

in the UK. Can you believe that? No, I can't.

And here's a couple of great statistics, too.

Us Brits now have more than 100 million tap-and-go cards.

Last year, we spent a whopping ?25 billion using them.

That's three times as much as the previous year.

So, is paying contactless making us more careless

with our hard-earned dosh?

In simpler times, we paid cash for our goods,

buying what we could afford with the money that was literally in our

pockets.

At the checking out point, the counter comes in for the first time,

as purchases are totalled up and paid for.

Cash was king.

How times have changed.

The growth of contactless in the UK has been amazing.

Right now, probably about a quarter of all card transactions are

contactless.

BEEPING

I absolutely love using contactless because it's guilt-free shopping.

No PIN, it's better security. You're not wasting paper. It's brilliant.

You're just waving your card in front of the machine.

It's magic money. It's like the never, never card.

This radical reshaping of the way we spend our money is eating into our

everyday lives.

In this South London cafe, cash is off the menu altogether.

So, in January of this year, 2017, we stopped accepting cash.

I'd gone to Sweden, to Stockholm, and just never took out any cash.

I was able to use my card anywhere, everywhere.

Little shops, big shops.

It just made it really easy.

Coming back home, I just felt that that was the future.

There seems to be no complaints from the customers either.

You can just tap and go and I'd be on my way.

It's a lot faster service. Saves mucking around with cash.

For Ross, being contactless means less time counting coins

and more time mastering the perfect macchiato.

You don't have to count cash. You don't have to wander around

to the bank. Ultimately just saving myself and everyone that works here

time that we can reinvest back into doing things

that we actually want to do.

But others are worried about the potential pitfalls of a cashless world.

Concerned that we don't always notice

what we've spent when we're using contactless.

In experiments where they ask people how much they've spent

when they've just been in a shop, if they've spent cash,

they're much more likely to know how much it was than if they spent money

on a contactless card.

Because just looking for the cash in your wallet, thinking,

"I need a five and 6p to make that up,"

it forces you to think about how much money it is.

If you do it on a card, you don't have to think about it.

So, how can you avoid the downsides of the contactless revolution?

If you find you are overspending a lot on contactless,

then I think it's a good idea to try to imagine that you're getting the

cash out of the cash machine - that exact amount -

and what that exact amount would look like

every time you're spending it,

and to deliberately take note of what that amount is.

Because, otherwise there's a danger of even stopping noticing

what's good value and what's not.

And, it seems, us Brits are reluctant to give up physical money.

A recent survey revealed that we're one of the least keen of all EU

countries on becoming completely cashless.

Personal finance expert Sarah Pennells isn't surprised.

I think in the UK we've got a bit of a love affair with cash.

Although a lot of us are using different ways of paying now -

contactless, paying with our mobile phone and so on -

I think there are some real advantages of cash that people love.

So, you know, you can see it, you know when you've run out of it.

You have a real sense that you are spending money.

However, there are practical ways to keep in control.

If you are going to use contactless,

first of all, I'd make sure you always ask for a receipt,

so at least you know exactly how much money you've spent.

And also if you're checking your bank balance online

or on your mobile, don't forget the contactless transactions

can sometimes take three, or even four days to show up.

Lastly, if you do find you're spending too much money

on contactless, then switch back. Use either real money, use cash,

or use your chip and PIN.

At the moment, vendors are not obliged to offer you a receipt.

So, if you want to remind yourself of how much you're spending,

just ask.

Every time I pay with contactless, I need the receipt.

It's like mentally you need some sort of proof

that you've spent the money.

I just keep a receipt and then I just check it at the end the week

and make sure everything's accounted for in the bank.

Yes, I'm fully aware how much I've spent.

I know to the penny whether I spent it on my card or whether I spent it

via cash. It shouldn't matter which way you're spending it.

You should be to keep a track of your monies.

And technology guru David Birch says contactless gives users more -

not less - information on their spending

because there's a digital record for every transaction.

You know, I would say to people, use the data.

Right? You're not using cash, you're using the card.

That's giving you information.

So, if you feel that you're overspending,

you should sit down and look at what you actually spent the money on.

You can't do that with cash, with contactless you can.

So, check your monthly statements and keep across where your money is

going.

Now everybody has contactless cards, and everybody uses them,

you could start to see contactless being built into other things.

Now the innovation can be unleashed.

Or put on the leash.

Hello. I like your jacket.

Even charities are getting in on the act.

Meet Smudge, one of a crack team of cashless canines.

Smudge is wearing the new contactless coat

and people can make a contactless donation

simply by tapping their cards onto his coat.

So, if you just hold your card there on the card reader...

..and you've made a ?2 donation.

People don't tend to carry cash any more,

so it's a simple way to make a donation.

What could be easier?

Thank you very much. Thank you. Bye.

And if you think a contactless dog is odd, hold on to your hats.

The future is invisible payments.

The payment experiences that consumers like the best

are the ones they don't have to deal with.

You order a taxi, you get in a taxi,

you go to where you're going, you get out and walk.

You don't even think about it. Then you sit down at the end of the month

and you can see all your taxi rides.

Payments will just vanish from day-to-day experience.

They'll all just happen in the background,

they'll be part of the warp and weft of life.

Like it or not,

sounds like we're all going to have to get used to change

but not in our pockets.

Now, some people are more savvy than others at keeping track of their

spending, but none more so than the blogger who's so thrifty,

she's known as Miss Thrifty.

She's here to tell us about her savvy ways,

along with Clare and Leanne,

who'll be doing a little bit of an experiment for us.

More about that a minute. I've got to ask you a question, Miss.

Do you think it makes a difference to your spending habits

if you're paying hard, physical cash,

or whether you're just using the contactless card?

Lots of people find that if they pay via contactless,

they end up spending more. Me, I'm the opposite.

I find that if I'm trying to keep track of what I'm spending every day

with cash then, by the end of the day, I've lost count,

I don't know where I am. Invariably, I end up at the till

and I don't have enough money for what I need.

So, I think it's a case of finding out what works best for you.

Over the past few days,

we've been asking Clare and Leanne to keep a diary of their spending.

One using a good old-fashioned pen and book and writing everything down

and the other one using a smart app.

I'm going to come to you first, Clare.

You had the old-fashioned way. A book and a pen.

Was there any shocks here, anything where, at the end of the day,

or the end of the week, you looked at it and thought, "Gordon Bennett,

"I didn't know I was spending that on that?"

I was kind of shocked by the amount I spent on food and drink.

I think it was about 50% of everything

that I'd spent the whole week.

I don't suppose it's until you actually take this much effort

that you actually realise those sorts of things. No, absolutely not.

Previously, I'd never asked for a receipt before.

I'd always just used contactless.

I wasn't really paying attention to what I was spending.

It made me feel like I was being watched a little bit.

You're watching yourself, aren't you? Exactly.

Leanne, you went sort of more 21st-century, didn't you?

You put an app on your smartphone.

Tell me how that works cos I've not used one yet.

So, I used just quite a basic app, that you literally just put in your

income and you put out all of your expenses on the app

and it categorises it, so into sort of eating out, clothes,

other shopping, and then you can write notes on it.

Clare, how much do you think you've saved by monitoring your spending

using the system?

I think probably around ?50. What about you, Leanne?

I think mine was probably quite similar, probably around ?40, ?50.

I'll tell you what, it does add up.

Thank you, ladies. Thanks, Dom.

Now, a recent survey showed that many people in relationships

don't talk to their partner about money and their spending habits.

In fact, one in six haven't got a clue how much their other halves earn.

So, is a financially open and honest relationship the key to a happy one?

Let's see what the punters in Stockport Market have to say?

Whisper in my ear and give me a ballpark figure

what you think he's earning.

Yeah? Go on. Whisper in this ear.

Right. Is it right?

Very, very impressive you two.

No secrets between you then in terms of, oh, no little stashes,

no secret money hiding anywhere?

No. No. Not that I'm going to say on camera.

Do you discuss your financial matters together?

Yeah. Yeah. It's important to be honest and straightforward.

You share an account, you're a team.

When you get married, you're a team and share an account.

You two, you discuss everything, all money matters.

Yes. Yes, I suppose we do, really.

I think it's best to be open and honest, cards on the table,

you know where you're up to with everything. We've got a family,

so it's important that you budget for everything.

Do you know what his spending habits are like?

Yes, because I'm always with him.

She doesn't trust you out alone, basically. That's what she's saying.

Can I just ask you, do you have joint bank accounts?

No. Separate.

Separate? Why is that?

What Viv's got is hers and what I've got is Viv's.

Now, earlier on, we met Nickie and Graham who were struggling to find

time to sort out their finances, since Nickie became seriously ill.

Let's see if personal finance editor Claer Barrett has managed to work

her money magic.

Nickie and Graham love nothing better than spending a spot of quality time

with daughters Bethany and Sophie.

No!

Our parents, they do a lot for us.

They're just, like, dropping us, Bethany to college,

dropping me to school, to a drama academy, to riding.

But Since Nickie became seriously ill four years ago,

keeping abreast of the family finances

has not been their top priority.

As much as they would love to adapt their home for Nickie,

who uses a wheelchair, their lack of cash has been a stumbling block.

There you go, catch! Eh!

Earlier, we sent personal finance expert Claer Barrett along to save

and make some money for this family.

But the couple were in for a shock when Claer revealed just how much

those impulse buys were costing.

Nickie, your face says it all.

Oh, my word!

So far, she's saved them thousands of pounds.

Now she's back, and Claer's determined that nothing goes

to waste on the road to financial stability.

So I couldn't help but notice when I came in that you've got a ginormous

camper van sitting on your drive outside.

Tell me about that. That's Harvey.

Harvey? Harvey, Harvey the RV as I like to call him.

He's my baby.

That's some baby, Nickie.

The Herricks adopted Harvey three years ago, but sadly,

he's spent most of that time parked on the drive

and not enjoying the open roads.

When we first got it,

we were literally going to jump in it every weekend

and go off somewhere.

Oh, didn't see you back there, Claer.

But didn't really happen like that.

In fact, we've only been away in it, like, a handful of times maybe.

I think I've got a plan where you can make some money out of him.

We'll pull in a little further up the road at a campsite I know,

and I will reveal all.

Brilliant.

Time to enjoy...mm...the traditional British summer.

So you've probably heard of websites that people can use in the so-called

sharing economy to rent out their spare rooms

or maybe even their house when they go on holiday.

Assets, essentially, that you've got, like Harvey,

that you're not using all the time.

So why not rent him out to other families

who want to take him on holiday?

I think that's a brilliant idea.

Millions of us love to get out and about in the UK,

whether it's staycations or heading to a festival.

So Claer thinks Harvey the RV could be a nice little earner.

In terms of the rewards that are on offer,

so for a van the size of Harvey,

you could potentially get up to ?500 a week.

OK. Really?

Yeah. Wow! ?500 a week?

I had no idea.

That's a really good idea. No idea.

So how would it work in terms of insurance?

So if you were doing it yourself and renting out Harvey to people,

then you would need to inform your insurer

and get specialist insurance.

But if you're doing it through one of these third-party websites,

it will be in the terms and conditions

but they often as part of their fee have insurance

which will cover everything. But you're absolutely right, Graham.

That is a fundamental thing that you need to check out

before you hand over the keys.

If Nickie and Graham rented out Harvey

for as little as two weeks every year,

they could earn an extra grand.

The other great thing about the sharing economy is that one of its

biggest fans is Her Majesty's government.

They've introduced a new sharing economy tax break,

so you can actually make your first ?1,000 of profit from renting out

your flat, your driveway, you're spare room,

or your camper van without having to pay any tax.

Great advice, Claer.

That's more dosh towards that much-needed extension.

And talking about the house,

it's time to tackle Graham and Nickie's mortgage.

So Claer, I know Graham loves his workouts,

but I think you should explain what you're doing here.

Well, my theory is you feel at home in an environment like a gym,

so it's a good place for us to tackle the issue of your home

and the debt that you've got mortgaged onto it.

Nickie and Graham bought their house ten years ago

using an interest-only mortgage.

Every month... Yep. ..you're just paying off this one brick

in interest, and every month,

it's being added back on.

So the size of your loan is never actually going down.

It's staying the same. All you're doing is paying off the interest.

Is that something that worries you?

So we've been worried about this for quite some time now, but obviously,

you know, with our circumstances as they were,

it's just another thing that we've neglected.

So the good news, Graham,

is I'm confident that with other savings I've identified for you

to make, you'll be able to cope

with a slightly higher mortgage repayment every month.

Graham is one of more than two million interest-only mortgage

customers in the UK.

If you're one, too, the advice is to switch to a repayment

or part-repayment mortgage if you can,

so you're not left with a massive financial headache

at the end of the loan period.

Graham, how does that make you feel?

That would be amazing to just smash down the whole loan like that.

So we need to replace some bicep curls with some phone picking up.

Yeah. You need to speak to your mortgage lender,

get a plan arranged.

You've convinced me to do it, absolutely, yeah. Great.

Sounds like a knockout idea to me.

Job done.

And now that Graham's financially fighting fit,

Claer's earned herself a nice cup of coffee with Nickie.

But the caffeine has spurred her on to make even more saving suggestions.

How often a week would you say

that you're treating yourself to a coffee out?

Is it... OK?

Almost everyday, and sometimes if I'm really bad,

it can be up to three times a day.

I know what you mean, Nickie.

I love a latte or five,

but constant trips to the coffee house soon add up.

In fact, it's costing Nickie over 50 quid a month!

Now, she could cut that to just a fiver if she made her own,

and Claer has got a couple of presents to get her started.

What a diamond!

It's a lot better than 50 quid a month on drive-thru coffees.

Exactly. And I think you'll find that this might even be nicer.

Cutting down on those posh coffees could boost the coffers

by ?540 a year! Ouch!

Have you got any of those cups spare, Claer?

It seems that no-one in the house escapes Claer's money-saving marathon.

Animal-loving Bethany is mad on horses,

and doting Mum and Dad shell out one and a half grand a year on riding

lessons. But Claer wants to rein that in.

So they've all trotted down to their local stables to meet owner Kimberly

to chat about volunteering.

What sort of stuff would you get up to on a day-to-day basis here?

When you come in, the first and most important thing we do is we groom

and we get the horses ready for lessons.

Making feeds, doing hay nets,

sweeping the yard, and sweeping the yard, and sweeping the yard again.

And having a good time.

All right, it sounds very good.

But Kimberly saved the best bits till last.

After every sixth time that you've come down and you've helped,

you'll get a free riding lesson.

That sounds a lot of fun.

It's more involved with the horses

and it sounds like something I'd like to do, yeah.

It's a win-win.

By volunteering,

Bethany gets to hang out with her favourite animals more often,

and Mum and Dad can say goodbye to spending ?28 a pop on lessons,

saving them

a total of ?1,456 a year.

Let's have a quick look around the yard, and then let's get you up

on a horse and see if you like one.

Thank you.

Many riding schools offer similar schemes.

You can find a list of approved ones

on the British Horse Society website.

Kick, full, there we go, yes!

Back at the house, it's time for a final reassuring pep talk

from Claer about how best to move forward and make that dream extension a reality.

It's absolutely normal to feel scared about these big decisions.

The key thing is to have the courage to pick up the phone and make those

calls, and you'll find out that it's probably not as scary

as you were thinking.

And it's just reaffirming your goals by making that

decision, saying, "I'm not going to spend the money on that,

"I'm going to save it instead."

You're moving a step nearer towards the bigger goal.

So let's talk turkey.

How much could the family save in a year?

?683 of the mobile bills,

?416 on Graham's credit card,

?2,340 on groceries,

?540 on posh coffees,

1,300 on online shopping,

and ?1,456 on horse riding lessons.

Making a grand total saving of ?6,744.

Plus, if they rent out Harvey the RV,

and Nickie starts a nail business,

the family's income will get a healthy boost, as well.

Actually tackling your money issues is not as daunting

as we had believed that it was.

For me to be able to get back to work is going to mean a lot to me.

I spent the last couple of years kind of festering,

so to get my brain active and up and out again,

it's just going to be amazing.

Well, Nickie and Graham are here, along with Harvey the RV.

You've learned a lot, haven't you, on this whole experience for you?

It's been eye-opening, honestly.

Was it just a case of you just needed someone to come in

and just sit you down and say, "Look, hang on a second,

"let's have a look at what you're doing here."

I think we're both intelligent people.

We know finances are so important,

but we'd got bogged down with medical issues

and things going on in our lives,

that really, we just ignored the important things.

I know that sorting out your finances hasn't been top priority,

but I think that's going to change after your visit from Claer.

The things that Claer has suggested has just been amazing.

So from here on out, I am on it like a car bonnet.

Talk about Claer's advice.

Now, Nickie, you're a little bit like me, you love a latte, don't you?

Um, guilty as charged.

Yes, and you're cutting it down now?

Um, I've calculated that I have saved this month ?33.50.

That's very good. Very good for me.

It's marked improvement on that one.

This is my new best friend, a little gift from Claer.

So, yeah, I think I'm doing really well on that one.

Nickie, while we're on the subject of saving money,

I know it's particularly important for you because you're trying

to save up enough to make some modifications to your house, aren't you?

Yeah, I think that's the goal

that we mustn't forget whilst we're on this, sort of, money subject.

There are times I just cannot physically get up to bed.

I mean, if things were different,

ideally I'd love to move to a bungalow.

That's the goal, yeah? Yeah, definitely.

But it is exciting times ahead for you guys if you stick to the advice

Claer has given you.

Yes, definitely given me a lift that I've need.

Because, you know, I used to be such a fit and active person.

Not quite as fit as you, but you know, almost.

And to be left...

..unfit and not being able to do as much as I want to,

it's given me a focus that I need.

Nickie, can I just say, I mean we were chatting earlier,

and I realised how bad your condition is,

you're in constant pain.

And you've got a smile on your face all the time, you're jolly,

and you are an inspiration, I think, to all of us.

You know, good luck to you, and thanks for coming on,

we really appreciate it. Thank you, both of you.

No, thank you. That means so much, thank you.

Yeah. Well, let us know if you'd be interested in having one of our

experts come round to sort out your finances.

You can e-mail us at...

Now we can't promise to get to everyone who gets in touch,

but if it's money-saving tips you're after, here's a good place to start.

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

We've teamed up with the Money Advice Service

to bring you easy to use money-saving tools

to plan your budget,

calculate the cost of your car or credit cards,

and give your money a complete health check.

Download them at...

Well, personal finance expert Andy Webb is with us to answer some

questions from the people we've met today.

Henry wants to know how he can save on running his car.

Oh, God, it all adds up, doesn't it?

Every time you move the car, it's going to cost you more money.

Biggest running cost you've got is your insurance, so don't auto-renew.

Shop around, and maybe try little things that might bring down the

price and maybe you can add someone to the insurance,

or even try different titles for your job.

That might reduce the price. Just make sure it's an accurate job.

And be honest. Be honest, you've got to be honest.

And, of course, petrol, that's ongoing cost all the time.

You know, see if you can find the cheapest pumps near you.

There are websites that will tell you the different prices

in your area. And I guess it's also how you drive.

So if you speed, if you have the air conditioning on,

if you have a roof rack, you know, they can all, you know, damage...

Well, not damage, it can make your fuel consumption go faster.

So better driving, less money spent on fuel.

Even don't have a full tank, have half a tank.

Yeah, save all that weight.

Clive says, "My builder has done a bodge job,

"and I can't get hold of him. What can I do?"

OK, he's tried to get in touch with him, he can't.

So the next step is see if this builder's part of any kind of trade

organisation. They might be able to help, get 'em involved.

If not, then you've got consumer ombudsman.

Again, maybe try and bring you guys together and get a solution.

If none of that is working, then you can go to the courts.

But that really should be, you know, the last thing you go for,

because there are costs involved, and you might not win the end.

And also Trading Standards, they're there to help you.

Report them, because they might know about it.

Yeah. Some great advice there, Andy, thank you.

And thanks to all our guests today and to you at home for watching.

We hope you've found all the advice you heard on the programme helpful,

but until next time, cheerio. Bye-bye.

PERCUSSIVE CLICKING

WHISTLE

6 Music... Recommends.

We pick...

..new music.

No-one... ..tells us... ..what to choose.

Whoo!