0:00:01 > 0:00:01But now on BBC One it's time for Right on the Money
0:00:03 > 0:00:06Whether you're a spender or a saver,
0:00:06 > 0:00:09we could all do with knowing how to make the most of our cash.
0:00:09 > 0:00:14So, we've found simple advice for you to do just that and taken it to
0:00:14 > 0:00:17people right across the UK.
0:00:17 > 0:00:21Whatever help you need with your finances, we are Right On The Money.
0:00:24 > 0:00:26Hello and welcome to Right On The Money,
0:00:26 > 0:00:29the series that's all about giving you simple advice to get as much
0:00:29 > 0:00:32cash back into your pocket as you possibly can.
0:00:32 > 0:00:35And we'll have plenty of great ideas to help you pick up a bargain,
0:00:35 > 0:00:38so here's a taste of what's coming up on today's show.
0:00:40 > 0:00:42As our money expert tries to help one mum
0:00:42 > 0:00:44struggling to make ends meet,
0:00:44 > 0:00:48she's in for a shock over just how much she's overspending.
0:00:48 > 0:00:50I have a trick up my sleeve, Lizzie.
0:00:50 > 0:00:54I'm going to make the invisible money suddenly appear to be visible.
0:00:55 > 0:00:58And we meet the teenage business hotshots
0:00:58 > 0:01:01well on their way to striking it rich.
0:01:01 > 0:01:05I own two shops and I also retail a couple of other shops, as well.
0:01:09 > 0:01:12Now, finding things to keep young children occupied
0:01:12 > 0:01:14can be pretty hard going on the purse strings.
0:01:14 > 0:01:16But for one busy mum, it's double the trouble.
0:01:19 > 0:01:2336-year-old Lizzie from Kent certainly has her hands full.
0:01:23 > 0:01:27When she's not looking after three-year-old twins Daisy and Zachary,
0:01:27 > 0:01:30she's working as a secondary school teacher.
0:01:30 > 0:01:31Yeah!
0:01:32 > 0:01:34And as if that wasn't enough,
0:01:34 > 0:01:39she's trying to get a business off the ground as a freelance copy editor.
0:01:39 > 0:01:40I'm a real doer.
0:01:40 > 0:01:42I'm not great at having nothing to do,
0:01:42 > 0:01:44so the lifestyle does kind of suit me.
0:01:46 > 0:01:48Fortunately for Lizzie, her mum, Jan,
0:01:48 > 0:01:51is on hand three days a week to help out.
0:01:51 > 0:01:54Mummy hold it? Wow!
0:01:54 > 0:01:58I think it's important for Lizzie to work so much because,
0:01:58 > 0:02:01partly that's what we instilled in her when she was younger.
0:02:01 > 0:02:04I think she's very intelligent and I think she would be very bored if she
0:02:04 > 0:02:06was at home all the time.
0:02:06 > 0:02:08And you just put it on there, when you've ripped it.
0:02:08 > 0:02:12I want to be a good role model, but I also like challenging myself,
0:02:12 > 0:02:16and also, I am just trying desperately to make ends meet.
0:02:17 > 0:02:21That's right. Because, despite working flat-out,
0:02:21 > 0:02:24single mum Lizzie is struggling to stay afloat.
0:02:24 > 0:02:25It's really hard.
0:02:25 > 0:02:29Like, I really want to earn money so that we can have a nice life so that
0:02:29 > 0:02:32I don't get to the end of the month and have no money for a food shop.
0:02:32 > 0:02:35I'm trying to get us to a point where we are financially stable.
0:02:35 > 0:02:38Although it's not quite working at the moment.
0:02:38 > 0:02:40It's already in your mouth, isn't it?
0:02:41 > 0:02:46With two overdrafts, childcare costs and a contactless card habit,
0:02:46 > 0:02:48she's more than ?7,500 in the red.
0:02:51 > 0:02:53Time for some top-dollar advice.
0:02:53 > 0:02:57We've sent in Financial Times money editor Claer Barrett
0:02:57 > 0:02:59to give Lizzie a spending overhaul.
0:02:59 > 0:03:00Hello, kids!
0:03:03 > 0:03:08So, Lizzie, you've got two jobs, you've got two small people,
0:03:08 > 0:03:11but there's only of you. Yeah. How does that work?
0:03:12 > 0:03:13Quite a lot of planning.
0:03:13 > 0:03:15Quite a lot of organisation.
0:03:15 > 0:03:18And I have to, I mean, I have to have really strict routines
0:03:18 > 0:03:21with the kids cos quite often I have to work in the evenings.
0:03:23 > 0:03:26Lizzie uses a child-minder two and a half days a week
0:03:26 > 0:03:29while she's devoting time to her new job.
0:03:29 > 0:03:32But, despite all the juggling to make things work,
0:03:32 > 0:03:34it's never quite enough and, lately,
0:03:34 > 0:03:38Lizzie has seen her overdraft increase at an alarming rate.
0:03:38 > 0:03:40So I have two overdrafts.
0:03:40 > 0:03:44One is my main current account that is ?5,000.
0:03:44 > 0:03:47And the second is with a second current account.
0:03:47 > 0:03:50And that overdraft is for ?1,200.
0:03:50 > 0:03:55So when I get paid, I'm ?3,500 overdrawn and then, swiftly,
0:03:55 > 0:03:57I'm back up to being ?5,000.
0:03:57 > 0:04:00So, you're in a permanent state of being overdrawn?
0:04:00 > 0:04:01Yeah.
0:04:03 > 0:04:05And Lizzie is not alone.
0:04:05 > 0:04:08Using your overdraft should only be a temporary safety net.
0:04:08 > 0:04:13A survey showed over a third of us use it every month and 1% of
0:04:13 > 0:04:16people like Lizzie never get out of their overdraft.
0:04:16 > 0:04:18It makes me worry, obviously.
0:04:18 > 0:04:21I lie awake at night worrying about it.
0:04:21 > 0:04:25Yeah. I feel almost a bit powerless.
0:04:25 > 0:04:26Because they're so out of control.
0:04:27 > 0:04:30Mum Jan has been trying to help ease the pressure
0:04:30 > 0:04:32by looking after her grandchildren.
0:04:34 > 0:04:38Lizzie is a bit of a live-for-the-moment type of girl, really.
0:04:38 > 0:04:39Or she was when she was younger.
0:04:41 > 0:04:44With twins, you can't quite live for the moment, can you?
0:04:44 > 0:04:46Live in the moment, perhaps. Yeah.
0:04:46 > 0:04:48She steadied down a little bit.
0:04:48 > 0:04:51She did for a little while, and then dizzy Lizzie, so...!
0:04:52 > 0:04:53Dizzy Lizzie?
0:04:53 > 0:04:55SHE LAUGHS
0:04:55 > 0:04:57I don't think she'll thank you for that.
0:04:57 > 0:04:58No, she won't, no.
0:04:58 > 0:05:02But seeing as Gran has spilled the beans, we'll go with it.
0:05:02 > 0:05:06She starts off by showing Lizzie how to save cash on expensive day trips
0:05:06 > 0:05:10out with the twins by checking out what's available nearby.
0:05:10 > 0:05:13Claer has made it her mission to help Dizzy Lizzie
0:05:13 > 0:05:15blossom into a super savvy mum.
0:05:15 > 0:05:17They've come to a local soft play centre.
0:05:18 > 0:05:21The kids absolutely love it here.
0:05:22 > 0:05:27So, per month, how much are you spending taking them out?
0:05:28 > 0:05:32Probably about, if we include petrol, about ?200.
0:05:32 > 0:05:35It's a lot of money if you are on a budget.
0:05:35 > 0:05:38I've been looking into how we can still have some fun days out but
0:05:38 > 0:05:40just spend less money on doing it.
0:05:40 > 0:05:44What I found is that there are a lot of local businesses in your area
0:05:44 > 0:05:47that do special offers. Yeah. Like this one,
0:05:47 > 0:05:51they do a special offer on Tuesdays and Thursdays.
0:05:51 > 0:05:53It's half price for children.
0:05:53 > 0:05:55Brilliant. Which basically means, between certain times,
0:05:55 > 0:05:57you can bring them here.
0:05:57 > 0:05:59It's, like, bring one twin and get the other one free. Excellent.
0:05:59 > 0:06:01And the great thing about this place
0:06:01 > 0:06:03is that they don't charge the adults.
0:06:03 > 0:06:06Oh, that's good. Which is very good.
0:06:06 > 0:06:10By looking out for special offers and avoiding peak times,
0:06:10 > 0:06:13the kids can still let off steam without breaking the bank of mum.
0:06:13 > 0:06:16It's child's play. Literally!
0:06:16 > 0:06:18So, basically, for ?5,
0:06:18 > 0:06:23you can get them both in and you so that's more than half of the price
0:06:23 > 0:06:26of the other place that you were going to.
0:06:27 > 0:06:30But Claer reckons that Lizzie and the kids can have lots of family fun
0:06:30 > 0:06:32without spending ANY money.
0:06:33 > 0:06:38My top tip there is, I managed to find, when my children were younger,
0:06:38 > 0:06:40I taught them how to play cards.
0:06:40 > 0:06:43We'd have card nights with a green tablecloth on the table. Yeah.
0:06:43 > 0:06:45Things like that when they got a bit older.
0:06:45 > 0:06:49So there are always creative ways that you can entertain them.
0:06:49 > 0:06:52We do do a lot of arts and crafts.
0:06:52 > 0:06:53Mum does the arts and crafts,
0:06:53 > 0:06:55because I hate seeing them mess up my kitchen!
0:06:57 > 0:07:01OK, well, learn to let go! Yeah.
0:07:01 > 0:07:03About the mess. Let go of being worried about the mess.
0:07:03 > 0:07:04Worry about the money.
0:07:04 > 0:07:08Yes. Shall we go and find out where the twins have got to?
0:07:08 > 0:07:10Yes, I think we'd better. Brilliant, OK.
0:07:12 > 0:07:17Time to move to the library to tackle more of Lizzie's spending habits.
0:07:17 > 0:07:21Now, Lizzie, looking through your bank statements,
0:07:21 > 0:07:27I can see that there are a lot of little payments for ?1.99 here,
0:07:27 > 0:07:33?2.50 there, which are all going on Internet shopping,
0:07:33 > 0:07:35digital downloads.
0:07:35 > 0:07:37What kind of things are you buying?
0:07:37 > 0:07:41Quite often I will buy them either episodes of a TV programme
0:07:41 > 0:07:43to keep them entertained.
0:07:43 > 0:07:45Sometimes, there's, like, a desperation.
0:07:45 > 0:07:49So I will see if I can placate them with a film on the television.
0:07:51 > 0:07:54And it's not just the films that Lizzie spends her money on.
0:07:54 > 0:07:56Claer's noticed that she forks out
0:07:56 > 0:07:59up to ?50 a month on new toys for the twins.
0:07:59 > 0:08:01That's a lot of plastic to trip over, Lizzie.
0:08:01 > 0:08:06So, one of the reasons I've brought you here to this library
0:08:06 > 0:08:08is because they have
0:08:08 > 0:08:13an absolutely enormous selection of DVDs which are really cheap -
0:08:13 > 0:08:16a little over ?1 a week. Amazing.
0:08:16 > 0:08:20Which is good. But this library is a really special one, because,
0:08:20 > 0:08:24as well as lending out DVDs and books,
0:08:24 > 0:08:26it also lends out lots of toys.
0:08:26 > 0:08:28Amazing.
0:08:28 > 0:08:32And, better than that, guess how much you have to pay to lend out
0:08:32 > 0:08:34the toys? I don't know.
0:08:34 > 0:08:35?1 a week or something?
0:08:35 > 0:08:38No, lower. 50p?
0:08:38 > 0:08:41Lower. It's free. It's free! It's free!
0:08:41 > 0:08:44That's really good. It's just like borrowing a book, isn't it?
0:08:44 > 0:08:46You come and borrow a toy. Yes. Yeah!
0:08:46 > 0:08:49It's a really good idea. I wish more places did it.
0:08:50 > 0:08:53If Lizzie borrows toys and films from the library
0:08:53 > 0:08:59even half of the time, she'd save a stonking ?533 a year.
0:08:59 > 0:09:01Give yourself a Blue Peter badge, Claer!
0:09:01 > 0:09:03Oops, sorry, wrong show!
0:09:03 > 0:09:06And now it's the turn of library assistant Deb to tell Lizzie and Jan
0:09:06 > 0:09:09about something else that might appeal to the twins.
0:09:09 > 0:09:12We've got loads of events running at the library.
0:09:12 > 0:09:13We've got baby bounce and rhyme.
0:09:13 > 0:09:15Tea-time story time, pop in and play,
0:09:15 > 0:09:18toddler shake and boogie and we have a Lego club as well. Oh, wow!
0:09:18 > 0:09:20How old are these guys? They'll be three in April.
0:09:20 > 0:09:25Oh, right, so toddler shake and boogie is probably the one for you.
0:09:25 > 0:09:27Can grandparents come, too?
0:09:27 > 0:09:29Yeah. We have loads of grandparents.
0:09:29 > 0:09:33So, it looks like we're just in time to shake our boogie!
0:09:33 > 0:09:34Amazing! Can't wait.
0:09:35 > 0:09:37Yay! Come on!
0:09:37 > 0:09:41Many libraries offer a great range of free activities for children.
0:09:41 > 0:09:46So check out your council's website to see what's on offer in your area.
0:09:46 > 0:09:48Wake up, crocodile!
0:09:48 > 0:09:53# Snap, little crocodile, snap, snap, snap
0:09:54 > 0:09:56If the twins continue to shake and boogie
0:09:56 > 0:09:58regularly with their new mates,
0:09:58 > 0:10:01as well as making use of the library's other free activities,
0:10:01 > 0:10:04Lizzie could save ?1,200 a year.
0:10:04 > 0:10:05Wow!
0:10:05 > 0:10:11# Shall we go and wake them with a merry tune? #
0:10:11 > 0:10:15All this money-saving malarkey has tired out Daisy and Zachary.
0:10:15 > 0:10:17But Claer is full of beans.
0:10:17 > 0:10:21And, back home, she's determined to sort out one of Lizzie's trickiest
0:10:21 > 0:10:26financial issues - her habit of paying by contactless card.
0:10:26 > 0:10:27So, tell me about...
0:10:29 > 0:10:32..how attached you are to this form of spending.
0:10:32 > 0:10:34Very attached. And, partly,
0:10:34 > 0:10:37it's a convenience thing because going to the cashpoint
0:10:37 > 0:10:40with the twins is virtually impossible.
0:10:40 > 0:10:41I can see that!
0:10:41 > 0:10:45So it's really convenient, but also,
0:10:45 > 0:10:48it definitely doesn't feel like real money I'm spending,
0:10:48 > 0:10:49which I know is really silly.
0:10:49 > 0:10:51I don't think it's silly at all.
0:10:51 > 0:10:54I'm with you. And I quite regularly look at my bank statement
0:10:54 > 0:10:59and I'm, like, "What was THAT that I spent the contactless on?"
0:10:59 > 0:11:03and I can't even remember because it is so quick when you do it. It is.
0:11:03 > 0:11:04Like invisible money.
0:11:04 > 0:11:08Yeah. I have a trick up my sleeve, Lizzie.
0:11:08 > 0:11:12I'm going to make the invisible money suddenly appear to be visible.
0:11:12 > 0:11:15This is...how much...
0:11:15 > 0:11:17THEY LAUGH
0:11:17 > 0:11:20..you are spending on your contactless card
0:11:20 > 0:11:22on average every month.
0:11:27 > 0:11:29These types of payments are booming.
0:11:29 > 0:11:32?4 billion was spent in the UK
0:11:32 > 0:11:35in March this year on contactless cards alone.
0:11:35 > 0:11:39And I'm glad to say it wasn't all Lizzie! Promise!
0:11:41 > 0:11:44Looks a bit more real, now, doesn't it? Yeah. It absolutely does.
0:11:44 > 0:11:47It's actually ?214.
0:11:47 > 0:11:52Wow. It's a really, really easy way of spending a lot of money.
0:11:52 > 0:11:55Not feeling like you're spending money. Yeah.
0:11:55 > 0:11:56And losing control.
0:11:57 > 0:12:01If Claer can make Lizzie really think about what she's doing when
0:12:01 > 0:12:03she flashes her contactless card,
0:12:03 > 0:12:05she believes Lizzie won't get so worried
0:12:05 > 0:12:08and will regain the financial control she wants.
0:12:08 > 0:12:12And she's come up with one simple trick to help her do just that.
0:12:12 > 0:12:15With the bank that you're currently with,
0:12:15 > 0:12:19you can actually personalise your debit card, your contactless card.
0:12:19 > 0:12:22Right. And I thought what we could do is we could get your card remade
0:12:22 > 0:12:25with a really, really nice picture of you and the children on it,
0:12:25 > 0:12:27because you're doing this for them.
0:12:27 > 0:12:29Yeah. And for you.
0:12:29 > 0:12:33And for your happiness. And what they want is a happy mummy.
0:12:33 > 0:12:36Yeah. They don't need a toy.
0:12:36 > 0:12:39They don't want you to be worrying about your overdraft at night.
0:12:40 > 0:12:42Wise words, Claer.
0:12:42 > 0:12:46And there are plenty more ways for Lizzie to cut her spending.
0:12:46 > 0:12:50In part two, Claer reveals the staggering amount of money
0:12:50 > 0:12:52she could save on her mortgage.
0:12:52 > 0:12:54The theoretical calculation could save you...
0:12:56 > 0:12:57..in interest payments...
0:12:59 > 0:13:00..around that figure. Wow.
0:13:06 > 0:13:08And lovely Lizzie will be joining us later
0:13:08 > 0:13:10to chat about the whole experience.
0:13:10 > 0:13:13Personal finance expert Simon Read is here along with Janette and Brian
0:13:13 > 0:13:16who will be telling us how they manage the holiday for free.
0:13:16 > 0:13:18First off, Simon, we're in Southport.
0:13:18 > 0:13:20Lots of fun things to do for the family but it can be
0:13:20 > 0:13:23a bit of a struggle for parents to keep the cost down, can't it?
0:13:23 > 0:13:24Of course it's expensive.
0:13:24 > 0:13:27You want to have great fun, you're going to spend money.
0:13:27 > 0:13:30But you should think about ways of cutting the cost.
0:13:30 > 0:13:32That means planning ahead. Now, you come to a place like this,
0:13:32 > 0:13:35there's lots of great things to do. It's free entry.
0:13:35 > 0:13:38So that's one way to not spend on massive entry charges.
0:13:38 > 0:13:41Another way is to look for vouchers or for two-for-one offers.
0:13:41 > 0:13:43They're available all year round.
0:13:43 > 0:13:46You can get family entries to some places.
0:13:46 > 0:13:47Some even have annual passes
0:13:47 > 0:13:50which means if you go regularly, eventually,
0:13:50 > 0:13:52by the third trip, it's a free day out.
0:13:52 > 0:13:55Holidays and breaks are an expense for everyone,
0:13:55 > 0:13:57no matter where you're going.
0:13:57 > 0:13:58But, Brian and Janette,
0:13:58 > 0:14:01you've managed to find a way to do it for free.
0:14:01 > 0:14:03Share that with us.
0:14:03 > 0:14:05So, we do house-sitting.
0:14:05 > 0:14:07So, we look after people's homes and pets
0:14:07 > 0:14:09while they go off on their holidays,
0:14:09 > 0:14:12so that it means that we don't have to pay for our accommodation.
0:14:12 > 0:14:14We've just come back from two weeks in Dubai,
0:14:14 > 0:14:18where we had a stressful house-sit, looking after two guinea pigs!
0:14:18 > 0:14:20Can you imagine? In Dubai?! Yeah, it was beautiful.
0:14:20 > 0:14:22Fabulous. Yeah, absolutely beautiful.
0:14:22 > 0:14:25Gorgeous accommodation and very easy, like I say,
0:14:25 > 0:14:27looking after the guinea pigs
0:14:27 > 0:14:28and then the rest of the time is your own.
0:14:28 > 0:14:31This sounds too good to be true.
0:14:31 > 0:14:33When did it all start and how did you get involved?
0:14:33 > 0:14:37Did you just say, "You know what? I'm tired of paying for holidays."
0:14:37 > 0:14:39Originally, when Brian retired five years ago,
0:14:39 > 0:14:41he saw an article in a magazine
0:14:41 > 0:14:43about somebody else that had done house-sitting.
0:14:43 > 0:14:46"We'll try it for 12 months, and see what happens."
0:14:46 > 0:14:49And five years later, we're still doing it.
0:14:49 > 0:14:52Presumably it's not 100% free.
0:14:52 > 0:14:53You get the accommodation free
0:14:53 > 0:14:56but you have to pay your own flight, surely? Yes, we do.
0:14:56 > 0:14:59In fact, we calculated, over the last five years,
0:14:59 > 0:15:03we think we've saved in the region of ?21,000 on accommodation costs.
0:15:03 > 0:15:05How much effort have you had to put in
0:15:05 > 0:15:08to get the best out of these three experiences?
0:15:08 > 0:15:09It's sort of idiot-proof.
0:15:09 > 0:15:12Just a normal website. All your details on there.
0:15:12 > 0:15:16They do ask for a police check to be done.
0:15:16 > 0:15:17You set up your own profile.
0:15:17 > 0:15:19There is a fee. You've got to pay a yearly fee.
0:15:19 > 0:15:24The website we're on charges less than ?100 a year.
0:15:24 > 0:15:25Obviously, which is every year
0:15:25 > 0:15:28but that's two nights in a medium-sized hotel.
0:15:28 > 0:15:29So what would your top tips be
0:15:29 > 0:15:31for someone who is thinking of doing this?
0:15:33 > 0:15:35Um, obviously, do a bit of research, have a look at the website.
0:15:37 > 0:15:39Your profile needs to be good.
0:15:40 > 0:15:42Get some character references.
0:15:42 > 0:15:45If you've looked after pets for neighbours,
0:15:45 > 0:15:48you can use them as a character reference.
0:15:48 > 0:15:54And always, always try and at least Skype or a telephone call.
0:15:54 > 0:15:55Don't go to somebody
0:15:55 > 0:15:59if they're not willing to communicate with you before you go.
0:15:59 > 0:16:00And it is worth checking your insurance
0:16:00 > 0:16:03before doing anything like this to see what cover you have.
0:16:03 > 0:16:06And you can buy actual policies quite cheaply,
0:16:06 > 0:16:08which give you liability cover.
0:16:08 > 0:16:10It's the pets, without the expense, isn't it?
0:16:10 > 0:16:12Yes. In theory, you could do with this all year around, presumably.
0:16:12 > 0:16:14Yes, you could. Yes, some people do.
0:16:14 > 0:16:16House sitters do. They just go from one to another,
0:16:16 > 0:16:18and don't own a house. Rent out your own home
0:16:18 > 0:16:20or don't own a house at all?
0:16:20 > 0:16:22And then just travel all year. That sounds fantastic.
0:16:22 > 0:16:25That's what we're doing next year. We're renting our house out.
0:16:25 > 0:16:29At the moment, we've got two house sits booked - China, and then,
0:16:29 > 0:16:31Christmas and New Year, we're in Australia in Adelaide.
0:16:31 > 0:16:34And then, hopefully, we'll pick up some in between
0:16:34 > 0:16:35and it all just helps keep the cost down.
0:16:35 > 0:16:37Jeanette and Brian, thank you very much.
0:16:37 > 0:16:40Suitably jealous. Good luck to you.
0:16:40 > 0:16:41Now, contrary to what you hear,
0:16:41 > 0:16:44not all youngsters spend their time frittering away their parents' cash.
0:16:44 > 0:16:47Some of them are more interested in making their first million before
0:16:47 > 0:16:49they're old enough to cast their first vote.
0:16:51 > 0:16:54These three teenagers all have something in common.
0:16:54 > 0:16:56They're all entrepreneurs
0:16:56 > 0:16:59running successful and growing business empires.
0:16:59 > 0:17:02Now, we first met Harvey on Right On The Money two years ago
0:17:02 > 0:17:07when the then 13-year-old made this confident prediction to Dom.
0:17:07 > 0:17:09At what age are you hoping to be a millionaire?
0:17:09 > 0:17:1015 or 16.
0:17:10 > 0:17:13OK, well, good luck with that one.
0:17:13 > 0:17:15And it seems that Harvey didn't need any luck.
0:17:15 > 0:17:18Because, at 15, he's done just that.
0:17:18 > 0:17:20So, how did he do it?
0:17:20 > 0:17:25Back in 2015, Harvey was washing his dad's car, when he had a brainwave.
0:17:25 > 0:17:29It was just after paper tax discs had been abolished and he noticed
0:17:29 > 0:17:31his dad's was no longer valid.
0:17:31 > 0:17:35So I asked him about it and he explained why,
0:17:35 > 0:17:39that it was like, it was out of date and why he hadn't removed it.
0:17:39 > 0:17:43So I thought, like, can't we just reinvent it?
0:17:43 > 0:17:45The idea is, you have a tax disc
0:17:45 > 0:17:48which was very similar to the old tax disc
0:17:48 > 0:17:52but, this way, you can just look at your car and see quite clearly when
0:17:52 > 0:17:53your tax and MOT is due.
0:17:54 > 0:17:58And there's a ready market of people who need a gentle reminder
0:17:58 > 0:18:00that their tax is up for renewal.
0:18:00 > 0:18:03Over half a million vehicles aren't taxed correctly
0:18:03 > 0:18:06and some are fined up to ?800.
0:18:06 > 0:18:09Harvey's dad, Howard, helped out with start-up funding.
0:18:10 > 0:18:13I actually thought, "What a stupid idea".
0:18:13 > 0:18:15I thought, it will never work.
0:18:15 > 0:18:18But, actually, if we give him a little bit of money to start up,
0:18:18 > 0:18:22it'll be a good lesson in business, that it's not easy going.
0:18:24 > 0:18:25How wrong was I?
0:18:27 > 0:18:32In the first year, Harvey sold 20,000 reminder discs, costing ?4 each.
0:18:32 > 0:18:34And, today, business is still booming.
0:18:34 > 0:18:36Do the sums, Harvey.
0:18:36 > 0:18:40Last year, we turned over ?80,000.
0:18:40 > 0:18:42And this year, we've tripled our turnover.
0:18:43 > 0:18:45For many of us, that would be enough.
0:18:45 > 0:18:49But Harvey had spotted another potential money-spinner -
0:18:49 > 0:18:51buying a field.
0:18:51 > 0:18:52I wanted to invest it
0:18:52 > 0:18:55so that I could make more money instead of wasting it.
0:18:55 > 0:18:58The field is three acres and it's next to a river.
0:18:58 > 0:19:02It cost me ?40,000 and it was intended for glamping.
0:19:04 > 0:19:06Once again, Harvey struck gold.
0:19:07 > 0:19:09A developer knocked on the door
0:19:09 > 0:19:12and offered us ?2.1 million for the field.
0:19:12 > 0:19:14I was very pleased and excited.
0:19:14 > 0:19:17He was showing me all the cars he'd like to buy and,
0:19:17 > 0:19:21after about two days, he'd come back down to earth and realised that cars
0:19:21 > 0:19:23aren't the way forward.
0:19:23 > 0:19:25So his prediction came true.
0:19:25 > 0:19:29But, despite everything, for this amazing young entrepreneur,
0:19:29 > 0:19:30life goes on as normal.
0:19:30 > 0:19:33I was thinking of joining the police force,
0:19:33 > 0:19:36which my family think I should do as well.
0:19:36 > 0:19:38But before he starts pounding the beat,
0:19:38 > 0:19:41Harvey has a business to run.
0:19:41 > 0:19:42Right, I'll go and post these.
0:19:42 > 0:19:44OK.
0:19:47 > 0:19:50That's all the orders for today. I can go back and relax now.
0:19:51 > 0:19:55My advice for a kid who wants to be an entrepreneur is
0:19:55 > 0:19:58don't let anyone tell you you can't do it.
0:19:58 > 0:19:59Ask for advice from people.
0:19:59 > 0:20:02So, you know, it's worth talking to your mates,
0:20:02 > 0:20:03see what they think of the idea.
0:20:03 > 0:20:07Think about who you want to sell this product or service to
0:20:07 > 0:20:09and then go and ask them about it.
0:20:09 > 0:20:11So, basically, do a bit of market research.
0:20:11 > 0:20:14So ask people for advice but don't let people hold you back.
0:20:14 > 0:20:18If you think it's a really good idea then push it as far as you can and,
0:20:18 > 0:20:21if it doesn't work, don't be mad at yourself.
0:20:21 > 0:20:23Just be like, "Right, what's my next idea?"
0:20:24 > 0:20:26Great advice, Steph.
0:20:26 > 0:20:29And another youngster with that entrepreneurial spirit
0:20:29 > 0:20:31is 14-year-old Angel from Liverpool,
0:20:31 > 0:20:35who is busy kitting out her stall with some new stock.
0:20:35 > 0:20:39She started her animal accessory label at the ripe old age of ten
0:20:39 > 0:20:42and it's gone from strength to strength.
0:20:42 > 0:20:44At first, I was just selling them from at home,
0:20:44 > 0:20:47to people like my neighbours and stuff like that.
0:20:47 > 0:20:50But then I did, like, progress quite a lot.
0:20:50 > 0:20:51So I have, like, different ranges.
0:20:51 > 0:20:55I've got dog coats and accessories and stuff like that,
0:20:55 > 0:20:57then I also make dog beds as well.
0:20:57 > 0:20:59And, like, this one's handmade.
0:20:59 > 0:21:01These ones are, like, some of my favourite ones.
0:21:01 > 0:21:04These are the Harris Tweed ones that I've handmade.
0:21:04 > 0:21:05As you can see, they're really well made.
0:21:05 > 0:21:08They've got, like, buttons, on them, as well.
0:21:08 > 0:21:10Then I've also got, like, raincoat ones.
0:21:10 > 0:21:13This one is also for a cat.
0:21:13 > 0:21:17So how did Angel become such an expert with a needle and thread?
0:21:17 > 0:21:20My mum taught me a few bits.
0:21:20 > 0:21:22And I learned quite a lot off YouTube.
0:21:22 > 0:21:25And so I kept on practising until I got really good.
0:21:25 > 0:21:28Great stuff! And who's your furry friend?
0:21:28 > 0:21:32This is Princess. She's three years old.
0:21:32 > 0:21:33Sit.
0:21:33 > 0:21:37Good girl! She tends to have, like, quite a large wardrobe.
0:21:37 > 0:21:40She's got more clothes than me.
0:21:40 > 0:21:43And, of course, Princess is a great model
0:21:43 > 0:21:45for Angel's newest doggie fashion range.
0:21:45 > 0:21:47Good girl!
0:21:47 > 0:21:49Well, Princess certainly looks impressed!
0:21:52 > 0:21:55Angel wants to become a vet, so the money she earns now
0:21:55 > 0:21:57is going towards that dream.
0:21:59 > 0:22:01I own two shops.
0:22:01 > 0:22:06And then I also retail out of a couple of other shops, as well.
0:22:06 > 0:22:09I'm hoping that it can be worldwide.
0:22:09 > 0:22:12And that I've also raised enough money so I can go to university.
0:22:12 > 0:22:15It's, like, yeah, we're trying to expand as much as we can.
0:22:16 > 0:22:19And she's learnt a lot along the way.
0:22:19 > 0:22:22Even though I'm only 14, I do know quite a lot about business.
0:22:22 > 0:22:26And so, any spare time I get, like, it's like I usually spend, like,
0:22:26 > 0:22:30researching and finding different ways I can grow my business
0:22:30 > 0:22:32and make it bigger and better.
0:22:32 > 0:22:36In Milton Keynes, an important board meeting is taking place,
0:22:36 > 0:22:41headed up by creative director, 13-year-old Henry.
0:22:41 > 0:22:46So, my business, it's kind of a children's lifestyle/travel company.
0:22:46 > 0:22:51We sell things from wash bags to nappy pouches
0:22:51 > 0:22:54to changing bags, backpacks.
0:22:54 > 0:22:56So just kind of all accessories for travel
0:22:56 > 0:23:00and for going on adventures and having fun.
0:23:00 > 0:23:02Henry has always had a brain for business.
0:23:02 > 0:23:05At the tender age of four, he started selling manure.
0:23:05 > 0:23:08And when he was ten he wrote his first children's book.
0:23:10 > 0:23:12I've always loved writing.
0:23:12 > 0:23:14And I've always loved animals.
0:23:14 > 0:23:17I wanted to put all my favourite things together.
0:23:18 > 0:23:23The book was a roaring success and the spin-off accessory business
0:23:23 > 0:23:26using the characters he created has taken Henry into the big time.
0:23:27 > 0:23:31So, my role in the business is the ideas behind it,
0:23:31 > 0:23:33but it's kind of important that I have a team
0:23:33 > 0:23:35or else the whole business
0:23:35 > 0:23:37would just be ideas and we'd get nothing done.
0:23:39 > 0:23:42And one of the key members of Henry's team is his mum, Becky.
0:23:43 > 0:23:47So, Henry comes up with a million ideas.
0:23:47 > 0:23:48Usually over a milkshake.
0:23:48 > 0:23:50My role is taking those ideas,
0:23:50 > 0:23:53I think, saying, "Actually, we'll scrap those
0:23:53 > 0:23:57"because they're crazy and these ones, let's go for it,"
0:23:57 > 0:24:01and then turning them into reality.
0:24:01 > 0:24:03At work, they're colleagues but at home,
0:24:03 > 0:24:06it's Becky who still calls the shots.
0:24:06 > 0:24:07Thanks, everyone.
0:24:07 > 0:24:10She still tells me to go and clean my room.
0:24:10 > 0:24:11I still have to do my homework.
0:24:11 > 0:24:13I still have a bedtime.
0:24:13 > 0:24:19Like, it's no any different to any other parent relationship out there.
0:24:19 > 0:24:22And of course, Henry has to balance business, school,
0:24:22 > 0:24:24work and his other hobbies.
0:24:24 > 0:24:27So, when I'm not doing the business,
0:24:27 > 0:24:30I love to go and play with Martha outside.
0:24:30 > 0:24:32I also love to sing.
0:24:32 > 0:24:35I'm obsessed with musical theatre.
0:24:35 > 0:24:38So, yeah, I get up to a whole range of things.
0:24:38 > 0:24:39Martha is my dog.
0:24:39 > 0:24:44She's the first thing I bought with the profits I made.
0:24:44 > 0:24:45So, what's next for Henry?
0:24:45 > 0:24:48Mum Becky has her own prediction.
0:24:48 > 0:24:52So, Henry, when he's older, he wants to write a musical.
0:24:52 > 0:24:58I think he will end up doing something musically-stagey...ish.
0:24:58 > 0:25:00And Henry has one bit of advice
0:25:00 > 0:25:03for all those budding entrepreneurs out there.
0:25:03 > 0:25:08You're always going to have these times when you're feeling so bad.
0:25:08 > 0:25:10And times when you're feeling so good.
0:25:10 > 0:25:13But don't stop until you achieve your goal.
0:25:13 > 0:25:15Parents should definitely take it seriously
0:25:15 > 0:25:17if their kids are entrepreneurial.
0:25:17 > 0:25:19And I think if parents are encouraging people like that,
0:25:19 > 0:25:22it's only going to make them better at everything in life,
0:25:22 > 0:25:24because it teaches them so many great life skills.
0:25:24 > 0:25:27Not just about being a businessperson
0:25:27 > 0:25:29but how to deal with rejection,
0:25:29 > 0:25:33how to deal with challenges, but also how to interact with people,
0:25:33 > 0:25:35how to communicate, how to market.
0:25:35 > 0:25:37And all of that is crucial in your life.
0:25:41 > 0:25:44Our young entrepreneurs clearly have plenty of time
0:25:44 > 0:25:46to enjoy fun things, too.
0:25:46 > 0:25:49And that's exactly what people here in Southport are doing.
0:25:49 > 0:25:52So I want to chat with them about how much they spend on their days out.
0:25:55 > 0:25:57There's a nice big family here.
0:25:57 > 0:26:00How much do you think you will have spent today?
0:26:00 > 0:26:02Roughly about ?60-?70.
0:26:02 > 0:26:06A day out, these days, for a family, it's pretty pricey, isn't it?
0:26:06 > 0:26:08We've got more to spend, on our tea.
0:26:08 > 0:26:12Yeah, so, the day hasn't finished yet. No. Have you had a good day?
0:26:12 > 0:26:14We've had a lovely day. Yeah, we've had a brilliant day, thank you.
0:26:14 > 0:26:16How do you keep the costs down?
0:26:16 > 0:26:19Bring food, picnic. Good, good. So, a picnic...
0:26:19 > 0:26:22In the arcades, two penny machines, things like that.
0:26:22 > 0:26:24Yeah.
0:26:24 > 0:26:27Sounds like you've got a savvy mum and dad, haven't you?
0:26:27 > 0:26:32I know you're trying to run, but I can run faster! Can't!
0:26:32 > 0:26:34OK. Well, I used to be able to.
0:26:34 > 0:26:38We're just looking at how much it costs to do fun days out these days.
0:26:38 > 0:26:40We've been to the botanic gardens and we've been around the front,
0:26:40 > 0:26:43so we really haven't spent that much, so, honestly,
0:26:43 > 0:26:46you don't have to spend much to have a good day out, I wouldn't say.
0:26:46 > 0:26:50Now, this takes me back. Have you had a good day? Has it been busy?
0:26:50 > 0:26:52It's been nice. Had lots of families coming through?
0:26:52 > 0:26:53Yeah, lots of children.
0:26:53 > 0:26:57They all want everything. They do want everything, don't they?
0:26:57 > 0:26:59It's expensive for children, as well, and families.
0:26:59 > 0:27:01Well, I'm going to leave now,
0:27:01 > 0:27:04because I've got my eye on a couple of those ice creams.
0:27:04 > 0:27:07You can have one, if you want. Do you want one? Cut the cameras!
0:27:07 > 0:27:08THEY LAUGH
0:27:12 > 0:27:13While Denise enjoys her ice cream,
0:27:13 > 0:27:17I'm hanging out with two people who have turned their favoured leisure
0:27:17 > 0:27:19activities into cash in the bank.
0:27:19 > 0:27:22Welcome to Mohammed and Ashley.
0:27:22 > 0:27:26Mohammed, you're 17, still a teenager.
0:27:26 > 0:27:28But you're already making money doing something that you love doing.
0:27:28 > 0:27:31Tell us about it. When I was 12, I set up my own company.
0:27:31 > 0:27:35It was a website development agency which developed website and software
0:27:35 > 0:27:38for businesses that needed to advertise their services.
0:27:38 > 0:27:42When I was four, I had to beg my parents to get a computer.
0:27:42 > 0:27:44I knew computers was just my thing, it was my passion.
0:27:44 > 0:27:46And you are totally self-taught.
0:27:46 > 0:27:48I'm self-taught - everything that I've learned,
0:27:48 > 0:27:50I've just read books and used YouTube.
0:27:50 > 0:27:53Ashley, you're going to like this bit now, because bear in mind,
0:27:53 > 0:27:55Mohammed, he's 17, still at school... Yeah.
0:27:55 > 0:27:59But some big technology company, presumably in California, yeah...?
0:27:59 > 0:28:02Yeah. ..made you an offer, to buy his technology and his algorithm.
0:28:02 > 0:28:04Give us a figure. What did they offer you?
0:28:04 > 0:28:06It was in the region of more than ?5 million.
0:28:06 > 0:28:07My goodness!
0:28:09 > 0:28:11Please tell me you said yes.
0:28:11 > 0:28:14Unfortunately not yet, but there has been...
0:28:14 > 0:28:17We are still talking, and in a few months' time along the road,
0:28:17 > 0:28:19it will be final. Oh, my goodness.
0:28:19 > 0:28:22When that offer came through, what did your mum and dad say to you?
0:28:22 > 0:28:24Well, they were shocked in a sense,
0:28:24 > 0:28:28because obviously, millions to them isn't some kind of joke.
0:28:28 > 0:28:30So it was quite a lot of money.
0:28:30 > 0:28:32Ashley. Yes. I've got to come to you now.
0:28:32 > 0:28:34Absolutely. You are involved in insurance.
0:28:34 > 0:28:39Mm-hm. But you also like taking photographs, which earn you money.
0:28:39 > 0:28:42Mm-hm. So explain what's happened to you.
0:28:42 > 0:28:46OK, so the way that I earn a bit of extra money on the side on top of my
0:28:46 > 0:28:49job is through selling my photographs.
0:28:49 > 0:28:52So for example, if I go on holiday or just a day off,
0:28:52 > 0:28:55I'll always take my camera with me.
0:28:55 > 0:28:58And there are a couple of ways that I can turn that into money.
0:28:58 > 0:29:00So the most obvious one is by,
0:29:00 > 0:29:03for example, taking a beautiful landscape,
0:29:03 > 0:29:05turning it into a print and selling it online.
0:29:05 > 0:29:09But another way is through selling licenses to images.
0:29:09 > 0:29:11When somebody buys a licence to my photo,
0:29:11 > 0:29:14I'm giving them permission to use it in a capacity
0:29:14 > 0:29:17that's been agreed by both parties.
0:29:17 > 0:29:20And that means that you can generate income from your photos
0:29:20 > 0:29:22long after you've taken them.
0:29:22 > 0:29:25If you're wanting people to buy prints of your photos,
0:29:25 > 0:29:27you can set up an online shop for free -
0:29:27 > 0:29:29it's going to cost you nothing,
0:29:29 > 0:29:31but whenever you upload a photo online,
0:29:31 > 0:29:34make sure in the description you are saying, "This is available to buy for print,"
0:29:34 > 0:29:37and link them to your shop. So that's the key.
0:29:37 > 0:29:39Eight months ago, I launched a small insurance business.
0:29:39 > 0:29:44I was able to use ?10,000 that I'd earned doing photography to get my
0:29:44 > 0:29:47business off the ground. So I feel like it has served its purpose.
0:29:47 > 0:29:48It's a sunny day in Southport.
0:29:48 > 0:29:51What photograph would you take round here, and where would you put it?
0:29:51 > 0:29:55I'd get a nice sunset of the promenade,
0:29:55 > 0:29:58and I would share it everywhere I could, that's the key.
0:29:58 > 0:30:02Put it on your blog, put it on Instagram, put it on Facebook,
0:30:02 > 0:30:04put it on Twitter, get it as many places as possible,
0:30:04 > 0:30:07in front of as many eyes as possible, and that increases
0:30:07 > 0:30:09your chance of earning a bit of money on the side.
0:30:09 > 0:30:12And that's with everything - I mean, if you don't...
0:30:12 > 0:30:13It's all about word of mouth,
0:30:13 > 0:30:15if you have a passion and you want to get out there,
0:30:15 > 0:30:17you need to tell people about it.
0:30:17 > 0:30:19Mohammed, Ashley, it's been an absolute pleasure
0:30:19 > 0:30:21to meet both of you, and good luck for the future.
0:30:21 > 0:30:22Thank you. Thank you.
0:30:25 > 0:30:27Earlier on, we met busy mum Lizzie,
0:30:27 > 0:30:30who was relying on a hefty overdraft to stay afloat.
0:30:30 > 0:30:33So has money editor Claer Barrett managed to sort her finances out?
0:30:36 > 0:30:4136-year-old Lizzie has her hands full with twins Daisy and Zachary.
0:30:41 > 0:30:44As well as working part-time as a schoolteacher,
0:30:44 > 0:30:46Lizzie is putting in extra hours
0:30:46 > 0:30:50to build up her business as a copy editor.
0:30:50 > 0:30:51I come home and I get to spend an hour,
0:30:51 > 0:30:54an hour and a half with the kids before they go to bed.
0:30:54 > 0:30:58And then I might have freelance copy editing work once they're in bed.
0:30:58 > 0:31:03But so far, Lizzie's been unable to reap the rewards of her hard work.
0:31:03 > 0:31:07As well as depending on mum Jan for childcare, she's relying on not one,
0:31:07 > 0:31:09but two hefty overdrafts.
0:31:09 > 0:31:11Wow!
0:31:11 > 0:31:14I am trying to get us to a point where we are financially stable.
0:31:14 > 0:31:16Although it's not quite working at the moment!
0:31:16 > 0:31:19One thing at a time! Can you find us?
0:31:19 > 0:31:21I'm going to look for you.
0:31:21 > 0:31:24Sometimes, if she's really short, I will buy her weekly shop.
0:31:25 > 0:31:28Sort of things like that. When the children need shoes,
0:31:28 > 0:31:30she buys one pair, I buy the other.
0:31:30 > 0:31:32Like, car seats, she bought one, I bought the other.
0:31:34 > 0:31:39FT money editor Claer Barrett has already come up with some great ways
0:31:39 > 0:31:42Lizzie can save money on one of her biggest outgoings -
0:31:42 > 0:31:44looking after the twins.
0:31:44 > 0:31:48?5 every week over the course of a year - ?250.
0:31:48 > 0:31:49Now Claer's back,
0:31:49 > 0:31:53with some more good news for Lizzie on those childcare costs.
0:31:55 > 0:31:58So, Lizzie. As a single parent who also works,
0:31:58 > 0:32:02obviously you are entitled to some help from the Government,
0:32:02 > 0:32:03in the form of tax credits.
0:32:03 > 0:32:07So I've been looking into how your benefits are calculated.
0:32:07 > 0:32:10Now, the next milestone is when they turn three.
0:32:10 > 0:32:12Because when they turn three,
0:32:12 > 0:32:16you'll be entitled to quite a lot of free childcare.
0:32:16 > 0:32:18Up to 30 hours per week, per child.
0:32:18 > 0:32:22Yeah. Which is going to make a massive difference
0:32:22 > 0:32:24to your individual situation.
0:32:25 > 0:32:28From September, eligible parents in England
0:32:28 > 0:32:31with children aged between three and four
0:32:31 > 0:32:35could claim up to 30 hours of free childcare a week during term time.
0:32:35 > 0:32:41This scheme means Lizzie could potentially save up to ?1,080
0:32:41 > 0:32:45a month. The amount and hours of childcare help offered in Wales,
0:32:45 > 0:32:47Scotland and Northern Ireland varies,
0:32:47 > 0:32:51but there are similar schemes available to eligible parents.
0:32:51 > 0:32:54Next up, Claer sends Lizzie for a pep talk
0:32:54 > 0:32:56from entrepreneur Michelle Lamb.
0:32:56 > 0:32:59She also started her successful events company from home.
0:32:59 > 0:33:01Hello. Nice to meet you.
0:33:01 > 0:33:02So I've got lots of questions for you...
0:33:02 > 0:33:05Go for it. ..about getting more...
0:33:05 > 0:33:08Well, building my copy-editing business.
0:33:08 > 0:33:10The main thing that I'm wondering about
0:33:10 > 0:33:13and I know absolutely nothing about is,
0:33:13 > 0:33:17I'm literally just registered self-employed, as Lizzie Sarchet
0:33:17 > 0:33:19but I don't know about building a brand.
0:33:19 > 0:33:20Because I've just got a second customer
0:33:20 > 0:33:22and they asked me what my company name was.
0:33:22 > 0:33:25And I was a bit, like, "I don't have one."
0:33:25 > 0:33:29I don't necessarily think that you have to have a brand name.
0:33:29 > 0:33:32I would probably advise having a website, something really,
0:33:32 > 0:33:34really simple with your contact details on it.
0:33:34 > 0:33:38OK. How are you finding the work/life balance - being a mum,
0:33:38 > 0:33:40working and building a business?
0:33:40 > 0:33:44Er... Well, yeah, it's hard.
0:33:44 > 0:33:46So quite a lot of it gets done in the evening
0:33:46 > 0:33:48once the children have gone to bed.
0:33:48 > 0:33:50That's how actually I operate my day, generally.
0:33:50 > 0:33:54In this day and age, people are so open to flexible working hours.
0:33:54 > 0:33:57You don't have to think, "Right, I need to work between nine and five."
0:33:57 > 0:33:59And ultimately, you are creating a way
0:33:59 > 0:34:02of having a better work/life balance - earning some money
0:34:02 > 0:34:06as well as being able to spend time with your family. Yeah.
0:34:06 > 0:34:09And it's clear that Lizzie's been inspired by the meeting.
0:34:10 > 0:34:13The whole business world just seems really mysterious to me
0:34:13 > 0:34:15and something I know nothing about,
0:34:15 > 0:34:18and a bit scary, but having spoken to Michelle,
0:34:18 > 0:34:20she's made me realise that actually it's not at all,
0:34:20 > 0:34:23and that I just need to use the resources I have.
0:34:24 > 0:34:28And talking about working hard, Claer's been a busy bee too.
0:34:28 > 0:34:31Along with mortgage expert David Hollingsworth,
0:34:31 > 0:34:33they've been looking at Lizzie's mortgage.
0:34:33 > 0:34:36She is paying 3.44% interest,
0:34:36 > 0:34:39and unless Lizzie takes action when the deal expires,
0:34:39 > 0:34:42she'll be put on a standard variable rate.
0:34:42 > 0:34:45Time to look for a new deal fast, Lizzie!
0:34:45 > 0:34:48They give them a nice, friendly-sounding name,
0:34:48 > 0:34:50the standard variable rate,
0:34:50 > 0:34:53but what it really means is a massive increase in costs.
0:34:53 > 0:34:55If you switch on to the standard variable rate,
0:34:55 > 0:34:59you basically may as well just throw money away.
0:34:59 > 0:35:01Right.
0:35:01 > 0:35:03Really what you need to do is shop around.
0:35:03 > 0:35:06See what your existing lender might offer you,
0:35:06 > 0:35:10and then compare it with what you could get from elsewhere in the market.
0:35:10 > 0:35:12Uh-huh.
0:35:12 > 0:35:15If you are thinking of changing your mortgage arrangement,
0:35:15 > 0:35:17check there are no penalty charges.
0:35:17 > 0:35:19But if your special rate is coming to an end,
0:35:19 > 0:35:21start looking around in advance
0:35:21 > 0:35:25to avoid being plonked on a higher interest plan by your lender.
0:35:25 > 0:35:27Well, I think in the past that has happened to me,
0:35:27 > 0:35:29due to a lack of preparation!
0:35:30 > 0:35:31But pay attention,
0:35:31 > 0:35:35because here comes an absolute belting bit of advice.
0:35:35 > 0:35:39So, me and Dave have noticed in your paperwork that you also have
0:35:39 > 0:35:42the option to overpay your mortgage, by up to 10% each year.
0:35:42 > 0:35:45Now, overpaying your mortgage you might think,
0:35:45 > 0:35:47"Oh, where am I going to find the money from?"
0:35:47 > 0:35:50But don't forget, in September,
0:35:50 > 0:35:52you'll have a bit more money coming through
0:35:52 > 0:35:53with the childcare costs going down.
0:35:53 > 0:35:56Yeah. Just ?50 a month every month
0:35:56 > 0:36:00for the remaining term of the mortgage, which is 29 years -
0:36:00 > 0:36:03so this is a theoretical calculation -
0:36:03 > 0:36:04could save you...
0:36:06 > 0:36:07..in interest payments...
0:36:08 > 0:36:11..around that figure. Wow. ?10,000.
0:36:11 > 0:36:13Yeah. ?50 a month.
0:36:13 > 0:36:17Amazing. And, what's more, you pay the mortgage back sooner.
0:36:17 > 0:36:20Right. So if you were overpaying ?50 a month,
0:36:20 > 0:36:22based on all of this paperwork,
0:36:22 > 0:36:26you would actually repay your mortgage nearly four years sooner...
0:36:26 > 0:36:28Right. ..than you would do otherwise.
0:36:28 > 0:36:30So even little overpayments...
0:36:30 > 0:36:33Yeah. ..can make a big difference in the future.
0:36:33 > 0:36:35Told you that was a corker!
0:36:35 > 0:36:39It's amazing to think that just ?50 extra a month could end up saving
0:36:39 > 0:36:41Lizzie ten grand.
0:36:42 > 0:36:46Back home, and Claer thinks she's found a solution to the problem
0:36:46 > 0:36:49that's causing Lizzie countless sleepless nights -
0:36:49 > 0:36:51her ?5,000 overdraft.
0:36:51 > 0:36:55I can see psychologically that it's not a good state of mind
0:36:55 > 0:36:57for you to be in, so...
0:36:57 > 0:37:01Well, anyway, the good news is that I've come up with what could be a
0:37:01 > 0:37:04solution for you. It's a bit of an unusual solution,
0:37:04 > 0:37:08and it's probably something that you wouldn't have ever thought of yet.
0:37:08 > 0:37:14And one answer could be to look into converting some of that overdraft
0:37:14 > 0:37:16into a personal loan.
0:37:16 > 0:37:18Right. "Right," she says!
0:37:18 > 0:37:20You're giving me that schoolteacher look.
0:37:20 > 0:37:23Somebody who's earning what you're earning and has got a good credit
0:37:23 > 0:37:25rating, like you have,
0:37:25 > 0:37:31should be able to get ?5,000 personal loan over five years,
0:37:31 > 0:37:34at a much, much lower interest rate than an overdraft.
0:37:34 > 0:37:37Right. So, in actual fact,
0:37:37 > 0:37:39the amount of fees that you would be paying a year,
0:37:39 > 0:37:45instead of being ?1,560, would be ?320 in interest...
0:37:45 > 0:37:48That's so much better. ..because the interest is so much lower.
0:37:48 > 0:37:53Yeah. And even better news - the monthly repayment of ?111.
0:37:53 > 0:37:54Amazing.
0:37:54 > 0:37:58That's a saving of ?1,620 a year.
0:37:58 > 0:38:01Clearing your overdrafts with a personal loan
0:38:01 > 0:38:05may not be right for everyone. And if you do take out a loan,
0:38:05 > 0:38:07you should avoid just running up another overdraft.
0:38:07 > 0:38:11If you are struggling, seek help from debt charities or organisations
0:38:11 > 0:38:13like Citizens Advice.
0:38:13 > 0:38:16It is in effect replacing a very expensive debt
0:38:16 > 0:38:20with a cheaper form of debt. But it is still a debt.
0:38:20 > 0:38:21I think that you can handle this,
0:38:21 > 0:38:23because it will make your repayments lower.
0:38:25 > 0:38:27It is the end of Claer's money-saving marathon.
0:38:27 > 0:38:31So, how much difference has she made to Lizzie's finances?
0:38:31 > 0:38:35As well as that ?1,620 in overdraft fees,
0:38:35 > 0:38:39add ?1,200 on days out for the twins by using free activities.
0:38:39 > 0:38:44And a further ?533, using her local toy library.
0:38:44 > 0:38:48But the biggest and most amazing saving of all -
0:38:48 > 0:38:5010,000 smackers on her mortgage!
0:38:50 > 0:38:56Which makes a grand savings total of ?13,353.
0:38:56 > 0:38:57Wow!
0:38:57 > 0:39:01Claer has made a massive difference to Lizzie's budget and given her
0:39:01 > 0:39:03lots of things to think about.
0:39:04 > 0:39:08I definitely think I'm going to be changing some of my spending habits.
0:39:08 > 0:39:09Claer's been so helpful,
0:39:09 > 0:39:14and has made me feel like I can actually manage my money and
0:39:14 > 0:39:18I can sort out the overdraft, so it's been brilliant.
0:39:18 > 0:39:22LAUGHTER
0:39:23 > 0:39:26And I'm delighted to say that Lizzie's here,
0:39:26 > 0:39:28along with money man Simon Read.
0:39:28 > 0:39:29Lizzie, I loved your film,
0:39:29 > 0:39:31and I think you're a super mum doing a great job.
0:39:31 > 0:39:34But it is difficult keeping those costs down.
0:39:34 > 0:39:36Absolutely. I mean, with two children,
0:39:36 > 0:39:40double the childcare, double the food, the clothes, the entertaining,
0:39:40 > 0:39:42everything, is really, really expensive.
0:39:42 > 0:39:46You've got double the trouble, double the work, half the sleep -
0:39:46 > 0:39:49but of course double the pleasure. Yes. All right. Definitely.
0:39:49 > 0:39:50I mean, you're a very smiley lady,
0:39:50 > 0:39:53you're obviously very proud of your girl and boy, aren't you?
0:39:53 > 0:39:54Yes, I am, they are lovely,
0:39:54 > 0:39:56and I think that is part of the issue, though,
0:39:56 > 0:39:59because I feel like I want to buy them things and what have you,
0:39:59 > 0:40:01because I love them and I want to spoil them.
0:40:01 > 0:40:05But sometimes that's not actually possible financially.
0:40:05 > 0:40:07Your mortgage was obviously a very big issue for you, wasn't it?
0:40:07 > 0:40:10The biggest thing that Claer helped me with the mortgage,
0:40:10 > 0:40:12is that they told me how I can release some equity
0:40:12 > 0:40:14when I get my new mortgage deal,
0:40:14 > 0:40:18which means I will be able to do a loft conversion in my house
0:40:18 > 0:40:21which means my children will get to have a bedroom each,
0:40:21 > 0:40:24which is an absolute dream for me, that that's a possibility now.
0:40:24 > 0:40:28Simon, it seems that when a mortgage company offer us a mortgage,
0:40:28 > 0:40:29quite often we are so excited
0:40:29 > 0:40:32or perhaps in a hurry, we just accept it.
0:40:32 > 0:40:34That is not always the best advice, is it?
0:40:34 > 0:40:35It's not the best advice at all.
0:40:35 > 0:40:37People think the lenders
0:40:37 > 0:40:39are doing them a favour by granting them a loan.
0:40:39 > 0:40:40It's only a loan -
0:40:40 > 0:40:43they should think of it the same as buying a can of beans these days,
0:40:43 > 0:40:44there is competition out there,
0:40:44 > 0:40:47and you wouldn't just buy the most expensive can of beans -
0:40:47 > 0:40:48you would go and find the best one.
0:40:48 > 0:40:50You should do exactly the same with a mortgage.
0:40:50 > 0:40:52I mean, I'd suggest go to a mortgage broker,
0:40:52 > 0:40:54who can tell you what's going on
0:40:54 > 0:40:57and whether there are even better deals that you're not aware of.
0:40:57 > 0:41:01Having those sleepless nights wondering what it might be like
0:41:01 > 0:41:04in a month's time, or by next year, is tough.
0:41:04 > 0:41:06Yeah, definitely. I'm so glad I came on the programme,
0:41:06 > 0:41:10because I do now feel much more confident about my finances.
0:41:10 > 0:41:12So it's been brilliant coming on.
0:41:12 > 0:41:15Simon, you've helped a lot of the families in this series.
0:41:15 > 0:41:17What's been most interesting for you about their story?
0:41:17 > 0:41:20Um, do you know what, I think for me,
0:41:20 > 0:41:22it's been the fact that all of them have
0:41:22 > 0:41:26reached a realisation that by adopting a few simple changes
0:41:26 > 0:41:29in the way they spend and the way they think about spending,
0:41:29 > 0:41:32they can get control of their money rather than BEING controlled by it.
0:41:32 > 0:41:37And all the families I've worked with have got to that point -
0:41:37 > 0:41:39and it is like a light bulb, it's like a flash of light-
0:41:39 > 0:41:41"Wow, actually this is quite easy." And it IS -
0:41:41 > 0:41:43once you get into the right routines.
0:41:43 > 0:41:45Thanks, Lizzie. Simon.
0:41:45 > 0:41:48Now, if like Lizzie, you'd fancy one of our experts giving YOU a money
0:41:48 > 0:41:50makeover, e-mail us at:
0:41:52 > 0:41:54But if it is easy money-saving tips you're after,
0:41:54 > 0:41:56here's a good place to start.
0:41:57 > 0:42:01Our website has everything you need to sort out your spending.
0:42:01 > 0:42:05We've teamed up with the Money Advice Service to bring you easy
0:42:05 > 0:42:08to use money-saving tools to plan your budget,
0:42:08 > 0:42:11calculate the cost of your car or credit cards,
0:42:11 > 0:42:14and give your money a complete health check.
0:42:14 > 0:42:15Download them at:
0:42:23 > 0:42:25And Simon's still here to answer some of the questions
0:42:25 > 0:42:26we've had from people today.
0:42:26 > 0:42:31Zoe has a question. She is on a zero hours contract and wants to know,
0:42:31 > 0:42:33will she be able to get a mortgage? Well, she is not alone.
0:42:33 > 0:42:36There are about a million people now in the country
0:42:36 > 0:42:37on zero hours contracts.
0:42:37 > 0:42:39And the mainstream lenders don't like them,
0:42:39 > 0:42:44because they worry that the regular income is not guaranteed.
0:42:44 > 0:42:45But there are specialist lenders,
0:42:45 > 0:42:47and most of the smaller building societies,
0:42:47 > 0:42:49which actually lend on affordability,
0:42:49 > 0:42:51ie they will sit down with Zoe and other people
0:42:51 > 0:42:53and talk about how much they are earning,
0:42:53 > 0:42:55how much they would like to learn and work out whether they
0:42:55 > 0:42:57can lend to them. And there should be deals out there.
0:42:57 > 0:43:00If she struggles to find one, go to a mortgage broker,
0:43:00 > 0:43:02because they will be able to tap into someone.
0:43:02 > 0:43:04Now, Mark says, "I usually have holiday insurance
0:43:04 > 0:43:08"through my bank account. Is that the best way?"
0:43:08 > 0:43:09It's not always the best way.
0:43:09 > 0:43:12I've been caught out when I've relied on the insurance
0:43:12 > 0:43:13I get with my bank account,
0:43:13 > 0:43:16and I haven't been able to claim because of the exclusions.
0:43:16 > 0:43:18So you need to look carefully at what the policy covers,
0:43:18 > 0:43:19and whether it is right for your trip.
0:43:19 > 0:43:22If it's not, get a separate policy.
0:43:22 > 0:43:24Now, I have travel insurance through my bank,
0:43:24 > 0:43:26and being type one diabetic, I've told them that,
0:43:26 > 0:43:29and they adjusted the policy and I have to pay a little bit towards it.
0:43:29 > 0:43:31But any of these insurance companies,
0:43:31 > 0:43:33they will bespoke the actual agreements with the person,
0:43:33 > 0:43:35depending on what illnesses you have, won't they?
0:43:35 > 0:43:38Yeah, exactly right. It's a question of checking beforehand,
0:43:38 > 0:43:39looking at all the small print,
0:43:39 > 0:43:43seeing what's included, what's excluded and what you actually need.
0:43:43 > 0:43:45And only pay for what you need.
0:43:46 > 0:43:48Thanks, Simon. And indeed thanks to all our guests today,
0:43:48 > 0:43:50and not forgetting you at home too.
0:43:50 > 0:43:53We hope you've picked up some top money-saving tips
0:43:53 > 0:43:55to make sure you are Right On The Money.
0:43:55 > 0:43:57See what I did there? Oh, Lewis!
0:43:59 > 0:44:00Goodbye.
0:44:32 > 0:44:33We know we're the last thing
0:44:33 > 0:44:35between something disastrous...
0:44:37 > 0:44:38..and something hopeful.
0:44:38 > 0:44:41Just sometimes we make a difference.
0:44:41 > 0:44:43That's why we come to work.
0:44:43 > 0:44:45That's what this place is all about.
0:44:45 > 0:44:46SIRENS WAIL
0:44:46 > 0:44:48What's she saying? Let's get her on some O2
0:44:48 > 0:44:50and get her off the street, OK?