Episode 7 Right on the Money


Episode 7

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But now on BBC One it's time for Right on the Money

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Whether you're a spender or a saver,

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

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

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people right across the UK.

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Whatever help you need with your finances, we are Right On The Money.

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Hello and welcome to Right On The Money,

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the series that's all about giving you simple advice to get as much

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cash back into your pocket as you possibly can.

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And we'll have plenty of great ideas to help you pick up a bargain,

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so here's a taste of what's coming up on today's show.

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As our money expert tries to help one mum

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struggling to make ends meet,

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she's in for a shock over just how much she's overspending.

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I have a trick up my sleeve, Lizzie.

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I'm going to make the invisible money suddenly appear to be visible.

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And we meet the teenage business hotshots

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well on their way to striking it rich.

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I own two shops and I also retail a couple of other shops, as well.

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Now, finding things to keep young children occupied

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can be pretty hard going on the purse strings.

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But for one busy mum, it's double the trouble.

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36-year-old Lizzie from Kent certainly has her hands full.

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When she's not looking after three-year-old twins Daisy and Zachary,

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she's working as a secondary school teacher.

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Yeah!

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And as if that wasn't enough,

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she's trying to get a business off the ground as a freelance copy editor.

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I'm a real doer.

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I'm not great at having nothing to do,

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so the lifestyle does kind of suit me.

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Fortunately for Lizzie, her mum, Jan,

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is on hand three days a week to help out.

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Mummy hold it? Wow!

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I think it's important for Lizzie to work so much because,

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partly that's what we instilled in her when she was younger.

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I think she's very intelligent and I think she would be very bored if she

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was at home all the time.

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And you just put it on there, when you've ripped it.

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I want to be a good role model, but I also like challenging myself,

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and also, I am just trying desperately to make ends meet.

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That's right. Because, despite working flat-out,

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single mum Lizzie is struggling to stay afloat.

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It's really hard.

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Like, I really want to earn money so that we can have a nice life so that

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I don't get to the end of the month and have no money for a food shop.

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I'm trying to get us to a point where we are financially stable.

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Although it's not quite working at the moment.

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It's already in your mouth, isn't it?

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With two overdrafts, childcare costs and a contactless card habit,

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she's more than ?7,500 in the red.

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Time for some top-dollar advice.

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We've sent in Financial Times money editor Claer Barrett

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to give Lizzie a spending overhaul.

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Hello, kids!

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So, Lizzie, you've got two jobs, you've got two small people,

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but there's only of you. Yeah. How does that work?

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Quite a lot of planning.

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Quite a lot of organisation.

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And I have to, I mean, I have to have really strict routines

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with the kids cos quite often I have to work in the evenings.

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Lizzie uses a child-minder two and a half days a week

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while she's devoting time to her new job.

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But, despite all the juggling to make things work,

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it's never quite enough and, lately,

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Lizzie has seen her overdraft increase at an alarming rate.

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So I have two overdrafts.

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One is my main current account that is ?5,000.

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And the second is with a second current account.

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And that overdraft is for ?1,200.

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So when I get paid, I'm ?3,500 overdrawn and then, swiftly,

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I'm back up to being ?5,000.

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So, you're in a permanent state of being overdrawn?

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Yeah.

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And Lizzie is not alone.

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Using your overdraft should only be a temporary safety net.

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A survey showed over a third of us use it every month and 1% of

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people like Lizzie never get out of their overdraft.

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It makes me worry, obviously.

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I lie awake at night worrying about it.

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Yeah. I feel almost a bit powerless.

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Because they're so out of control.

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Mum Jan has been trying to help ease the pressure

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by looking after her grandchildren.

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Lizzie is a bit of a live-for-the-moment type of girl, really.

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Or she was when she was younger.

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With twins, you can't quite live for the moment, can you?

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Live in the moment, perhaps. Yeah.

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She steadied down a little bit.

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She did for a little while, and then dizzy Lizzie, so...!

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Dizzy Lizzie?

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SHE LAUGHS

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I don't think she'll thank you for that.

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No, she won't, no.

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But seeing as Gran has spilled the beans, we'll go with it.

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She starts off by showing Lizzie how to save cash on expensive day trips

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out with the twins by checking out what's available nearby.

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Claer has made it her mission to help Dizzy Lizzie

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blossom into a super savvy mum.

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They've come to a local soft play centre.

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The kids absolutely love it here.

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So, per month, how much are you spending taking them out?

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Probably about, if we include petrol, about ?200.

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It's a lot of money if you are on a budget.

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I've been looking into how we can still have some fun days out but

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just spend less money on doing it.

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What I found is that there are a lot of local businesses in your area

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that do special offers. Yeah. Like this one,

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they do a special offer on Tuesdays and Thursdays.

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It's half price for children.

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Brilliant. Which basically means, between certain times,

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you can bring them here.

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It's, like, bring one twin and get the other one free. Excellent.

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And the great thing about this place

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is that they don't charge the adults.

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Oh, that's good. Which is very good.

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By looking out for special offers and avoiding peak times,

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the kids can still let off steam without breaking the bank of mum.

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It's child's play. Literally!

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So, basically, for ?5,

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you can get them both in and you so that's more than half of the price

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of the other place that you were going to.

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But Claer reckons that Lizzie and the kids can have lots of family fun

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without spending ANY money.

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My top tip there is, I managed to find, when my children were younger,

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I taught them how to play cards.

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We'd have card nights with a green tablecloth on the table. Yeah.

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Things like that when they got a bit older.

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So there are always creative ways that you can entertain them.

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We do do a lot of arts and crafts.

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Mum does the arts and crafts,

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because I hate seeing them mess up my kitchen!

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OK, well, learn to let go! Yeah.

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About the mess. Let go of being worried about the mess.

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Worry about the money.

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Yes. Shall we go and find out where the twins have got to?

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Yes, I think we'd better. Brilliant, OK.

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Time to move to the library to tackle more of Lizzie's spending habits.

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Now, Lizzie, looking through your bank statements,

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I can see that there are a lot of little payments for ?1.99 here,

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?2.50 there, which are all going on Internet shopping,

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digital downloads.

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What kind of things are you buying?

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Quite often I will buy them either episodes of a TV programme

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to keep them entertained.

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Sometimes, there's, like, a desperation.

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So I will see if I can placate them with a film on the television.

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And it's not just the films that Lizzie spends her money on.

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Claer's noticed that she forks out

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up to ?50 a month on new toys for the twins.

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That's a lot of plastic to trip over, Lizzie.

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So, one of the reasons I've brought you here to this library

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is because they have

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an absolutely enormous selection of DVDs which are really cheap -

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a little over ?1 a week. Amazing.

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Which is good. But this library is a really special one, because,

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as well as lending out DVDs and books,

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it also lends out lots of toys.

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Amazing.

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And, better than that, guess how much you have to pay to lend out

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the toys? I don't know.

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?1 a week or something?

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No, lower. 50p?

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Lower. It's free. It's free! It's free!

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That's really good. It's just like borrowing a book, isn't it?

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You come and borrow a toy. Yes. Yeah!

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It's a really good idea. I wish more places did it.

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If Lizzie borrows toys and films from the library

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even half of the time, she'd save a stonking ?533 a year.

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Give yourself a Blue Peter badge, Claer!

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Oops, sorry, wrong show!

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And now it's the turn of library assistant Deb to tell Lizzie and Jan

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about something else that might appeal to the twins.

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We've got loads of events running at the library.

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We've got baby bounce and rhyme.

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Tea-time story time, pop in and play,

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toddler shake and boogie and we have a Lego club as well. Oh, wow!

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How old are these guys? They'll be three in April.

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Oh, right, so toddler shake and boogie is probably the one for you.

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Can grandparents come, too?

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Yeah. We have loads of grandparents.

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So, it looks like we're just in time to shake our boogie!

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Amazing! Can't wait.

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Yay! Come on!

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Many libraries offer a great range of free activities for children.

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So check out your council's website to see what's on offer in your area.

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Wake up, crocodile!

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# Snap, little crocodile, snap, snap, snap

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If the twins continue to shake and boogie

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regularly with their new mates,

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as well as making use of the library's other free activities,

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Lizzie could save ?1,200 a year.

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Wow!

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# Shall we go and wake them with a merry tune? #

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All this money-saving malarkey has tired out Daisy and Zachary.

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But Claer is full of beans.

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And, back home, she's determined to sort out one of Lizzie's trickiest

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financial issues - her habit of paying by contactless card.

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So, tell me about...

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..how attached you are to this form of spending.

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Very attached. And, partly,

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it's a convenience thing because going to the cashpoint

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with the twins is virtually impossible.

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I can see that!

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So it's really convenient, but also,

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it definitely doesn't feel like real money I'm spending,

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which I know is really silly.

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I don't think it's silly at all.

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I'm with you. And I quite regularly look at my bank statement

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and I'm, like, "What was THAT that I spent the contactless on?"

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and I can't even remember because it is so quick when you do it. It is.

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Like invisible money.

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Yeah. I have a trick up my sleeve, Lizzie.

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I'm going to make the invisible money suddenly appear to be visible.

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This is...how much...

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THEY LAUGH

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..you are spending on your contactless card

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on average every month.

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These types of payments are booming.

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?4 billion was spent in the UK

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in March this year on contactless cards alone.

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And I'm glad to say it wasn't all Lizzie! Promise!

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Looks a bit more real, now, doesn't it? Yeah. It absolutely does.

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It's actually ?214.

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Wow. It's a really, really easy way of spending a lot of money.

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Not feeling like you're spending money. Yeah.

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And losing control.

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If Claer can make Lizzie really think about what she's doing when

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she flashes her contactless card,

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she believes Lizzie won't get so worried

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and will regain the financial control she wants.

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And she's come up with one simple trick to help her do just that.

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With the bank that you're currently with,

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you can actually personalise your debit card, your contactless card.

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Right. And I thought what we could do is we could get your card remade

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with a really, really nice picture of you and the children on it,

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because you're doing this for them.

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Yeah. And for you.

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And for your happiness. And what they want is a happy mummy.

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Yeah. They don't need a toy.

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They don't want you to be worrying about your overdraft at night.

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Wise words, Claer.

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And there are plenty more ways for Lizzie to cut her spending.

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In part two, Claer reveals the staggering amount of money

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she could save on her mortgage.

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The theoretical calculation could save you...

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..in interest payments...

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..around that figure. Wow.

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And lovely Lizzie will be joining us later

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to chat about the whole experience.

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Personal finance expert Simon Read is here along with Janette and Brian

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who will be telling us how they manage the holiday for free.

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First off, Simon, we're in Southport.

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Lots of fun things to do for the family but it can be

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a bit of a struggle for parents to keep the cost down, can't it?

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Of course it's expensive.

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You want to have great fun, you're going to spend money.

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But you should think about ways of cutting the cost.

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That means planning ahead. Now, you come to a place like this,

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there's lots of great things to do. It's free entry.

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So that's one way to not spend on massive entry charges.

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Another way is to look for vouchers or for two-for-one offers.

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They're available all year round.

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You can get family entries to some places.

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Some even have annual passes

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which means if you go regularly, eventually,

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by the third trip, it's a free day out.

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Holidays and breaks are an expense for everyone,

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no matter where you're going.

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But, Brian and Janette,

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you've managed to find a way to do it for free.

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Share that with us.

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So, we do house-sitting.

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So, we look after people's homes and pets

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while they go off on their holidays,

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so that it means that we don't have to pay for our accommodation.

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We've just come back from two weeks in Dubai,

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where we had a stressful house-sit, looking after two guinea pigs!

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Can you imagine? In Dubai?! Yeah, it was beautiful.

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Fabulous. Yeah, absolutely beautiful.

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Gorgeous accommodation and very easy, like I say,

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looking after the guinea pigs

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and then the rest of the time is your own.

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This sounds too good to be true.

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When did it all start and how did you get involved?

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Did you just say, "You know what? I'm tired of paying for holidays."

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Originally, when Brian retired five years ago,

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he saw an article in a magazine

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about somebody else that had done house-sitting.

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"We'll try it for 12 months, and see what happens."

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And five years later, we're still doing it.

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Presumably it's not 100% free.

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You get the accommodation free

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but you have to pay your own flight, surely? Yes, we do.

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In fact, we calculated, over the last five years,

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we think we've saved in the region of ?21,000 on accommodation costs.

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How much effort have you had to put in

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to get the best out of these three experiences?

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It's sort of idiot-proof.

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Just a normal website. All your details on there.

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They do ask for a police check to be done.

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You set up your own profile.

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There is a fee. You've got to pay a yearly fee.

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The website we're on charges less than ?100 a year.

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Obviously, which is every year

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but that's two nights in a medium-sized hotel.

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So what would your top tips be

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for someone who is thinking of doing this?

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Um, obviously, do a bit of research, have a look at the website.

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Your profile needs to be good.

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Get some character references.

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If you've looked after pets for neighbours,

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you can use them as a character reference.

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And always, always try and at least Skype or a telephone call.

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Don't go to somebody

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if they're not willing to communicate with you before you go.

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And it is worth checking your insurance

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before doing anything like this to see what cover you have.

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And you can buy actual policies quite cheaply,

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which give you liability cover.

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It's the pets, without the expense, isn't it?

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Yes. In theory, you could do with this all year around, presumably.

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Yes, you could. Yes, some people do.

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House sitters do. They just go from one to another,

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and don't own a house. Rent out your own home

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or don't own a house at all?

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And then just travel all year. That sounds fantastic.

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That's what we're doing next year. We're renting our house out.

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At the moment, we've got two house sits booked - China, and then,

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Christmas and New Year, we're in Australia in Adelaide.

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And then, hopefully, we'll pick up some in between

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and it all just helps keep the cost down.

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Jeanette and Brian, thank you very much.

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Suitably jealous. Good luck to you.

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Now, contrary to what you hear,

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not all youngsters spend their time frittering away their parents' cash.

0:16:410:16:44

Some of them are more interested in making their first million before

0:16:440:16:47

they're old enough to cast their first vote.

0:16:470:16:49

These three teenagers all have something in common.

0:16:510:16:54

They're all entrepreneurs

0:16:540:16:56

running successful and growing business empires.

0:16:560:16:59

Now, we first met Harvey on Right On The Money two years ago

0:16:590:17:02

when the then 13-year-old made this confident prediction to Dom.

0:17:020:17:07

At what age are you hoping to be a millionaire?

0:17:070:17:09

15 or 16.

0:17:090:17:10

OK, well, good luck with that one.

0:17:100:17:13

And it seems that Harvey didn't need any luck.

0:17:130:17:15

Because, at 15, he's done just that.

0:17:150:17:18

So, how did he do it?

0:17:180:17:20

Back in 2015, Harvey was washing his dad's car, when he had a brainwave.

0:17:200:17:25

It was just after paper tax discs had been abolished and he noticed

0:17:250:17:29

his dad's was no longer valid.

0:17:290:17:31

So I asked him about it and he explained why,

0:17:310:17:35

that it was like, it was out of date and why he hadn't removed it.

0:17:350:17:39

So I thought, like, can't we just reinvent it?

0:17:390:17:43

The idea is, you have a tax disc

0:17:430:17:45

which was very similar to the old tax disc

0:17:450:17:48

but, this way, you can just look at your car and see quite clearly when

0:17:480:17:52

your tax and MOT is due.

0:17:520:17:53

And there's a ready market of people who need a gentle reminder

0:17:540:17:58

that their tax is up for renewal.

0:17:580:18:00

Over half a million vehicles aren't taxed correctly

0:18:000:18:03

and some are fined up to ?800.

0:18:030:18:06

Harvey's dad, Howard, helped out with start-up funding.

0:18:060:18:09

I actually thought, "What a stupid idea".

0:18:100:18:13

I thought, it will never work.

0:18:130:18:15

But, actually, if we give him a little bit of money to start up,

0:18:150:18:18

it'll be a good lesson in business, that it's not easy going.

0:18:180:18:22

How wrong was I?

0:18:240:18:25

In the first year, Harvey sold 20,000 reminder discs, costing ?4 each.

0:18:270:18:32

And, today, business is still booming.

0:18:320:18:34

Do the sums, Harvey.

0:18:340:18:36

Last year, we turned over ?80,000.

0:18:360:18:40

And this year, we've tripled our turnover.

0:18:400:18:42

For many of us, that would be enough.

0:18:430:18:45

But Harvey had spotted another potential money-spinner -

0:18:450:18:49

buying a field.

0:18:490:18:51

I wanted to invest it

0:18:510:18:52

so that I could make more money instead of wasting it.

0:18:520:18:55

The field is three acres and it's next to a river.

0:18:550:18:58

It cost me ?40,000 and it was intended for glamping.

0:18:580:19:02

Once again, Harvey struck gold.

0:19:040:19:06

A developer knocked on the door

0:19:070:19:09

and offered us ?2.1 million for the field.

0:19:090:19:12

I was very pleased and excited.

0:19:120:19:14

He was showing me all the cars he'd like to buy and,

0:19:140:19:17

after about two days, he'd come back down to earth and realised that cars

0:19:170:19:21

aren't the way forward.

0:19:210:19:23

So his prediction came true.

0:19:230:19:25

But, despite everything, for this amazing young entrepreneur,

0:19:250:19:29

life goes on as normal.

0:19:290:19:30

I was thinking of joining the police force,

0:19:300:19:33

which my family think I should do as well.

0:19:330:19:36

But before he starts pounding the beat,

0:19:360:19:38

Harvey has a business to run.

0:19:380:19:41

Right, I'll go and post these.

0:19:410:19:42

OK.

0:19:420:19:44

That's all the orders for today. I can go back and relax now.

0:19:470:19:50

My advice for a kid who wants to be an entrepreneur is

0:19:510:19:55

don't let anyone tell you you can't do it.

0:19:550:19:58

Ask for advice from people.

0:19:580:19:59

So, you know, it's worth talking to your mates,

0:19:590:20:02

see what they think of the idea.

0:20:020:20:03

Think about who you want to sell this product or service to

0:20:030:20:07

and then go and ask them about it.

0:20:070:20:09

So, basically, do a bit of market research.

0:20:090:20:11

So ask people for advice but don't let people hold you back.

0:20:110:20:14

If you think it's a really good idea then push it as far as you can and,

0:20:140:20:18

if it doesn't work, don't be mad at yourself.

0:20:180:20:21

Just be like, "Right, what's my next idea?"

0:20:210:20:23

Great advice, Steph.

0:20:240:20:26

And another youngster with that entrepreneurial spirit

0:20:260:20:29

is 14-year-old Angel from Liverpool,

0:20:290:20:31

who is busy kitting out her stall with some new stock.

0:20:310:20:35

She started her animal accessory label at the ripe old age of ten

0:20:350:20:39

and it's gone from strength to strength.

0:20:390:20:42

At first, I was just selling them from at home,

0:20:420:20:44

to people like my neighbours and stuff like that.

0:20:440:20:47

But then I did, like, progress quite a lot.

0:20:470:20:50

So I have, like, different ranges.

0:20:500:20:51

I've got dog coats and accessories and stuff like that,

0:20:510:20:55

then I also make dog beds as well.

0:20:550:20:57

And, like, this one's handmade.

0:20:570:20:59

These ones are, like, some of my favourite ones.

0:20:590:21:01

These are the Harris Tweed ones that I've handmade.

0:21:010:21:04

As you can see, they're really well made.

0:21:040:21:05

They've got, like, buttons, on them, as well.

0:21:050:21:08

Then I've also got, like, raincoat ones.

0:21:080:21:10

This one is also for a cat.

0:21:100:21:13

So how did Angel become such an expert with a needle and thread?

0:21:130:21:17

My mum taught me a few bits.

0:21:170:21:20

And I learned quite a lot off YouTube.

0:21:200:21:22

And so I kept on practising until I got really good.

0:21:220:21:25

Great stuff! And who's your furry friend?

0:21:250:21:28

This is Princess. She's three years old.

0:21:280:21:32

Sit.

0:21:320:21:33

Good girl! She tends to have, like, quite a large wardrobe.

0:21:330:21:37

She's got more clothes than me.

0:21:370:21:40

And, of course, Princess is a great model

0:21:400:21:43

for Angel's newest doggie fashion range.

0:21:430:21:45

Good girl!

0:21:450:21:47

Well, Princess certainly looks impressed!

0:21:470:21:49

Angel wants to become a vet, so the money she earns now

0:21:520:21:55

is going towards that dream.

0:21:550:21:57

I own two shops.

0:21:590:22:01

And then I also retail out of a couple of other shops, as well.

0:22:010:22:06

I'm hoping that it can be worldwide.

0:22:060:22:09

And that I've also raised enough money so I can go to university.

0:22:090:22:12

It's, like, yeah, we're trying to expand as much as we can.

0:22:120:22:15

And she's learnt a lot along the way.

0:22:160:22:19

Even though I'm only 14, I do know quite a lot about business.

0:22:190:22:22

And so, any spare time I get, like, it's like I usually spend, like,

0:22:220:22:26

researching and finding different ways I can grow my business

0:22:260:22:30

and make it bigger and better.

0:22:300:22:32

In Milton Keynes, an important board meeting is taking place,

0:22:320:22:36

headed up by creative director, 13-year-old Henry.

0:22:360:22:41

So, my business, it's kind of a children's lifestyle/travel company.

0:22:410:22:46

We sell things from wash bags to nappy pouches

0:22:460:22:51

to changing bags, backpacks.

0:22:510:22:54

So just kind of all accessories for travel

0:22:540:22:56

and for going on adventures and having fun.

0:22:560:23:00

Henry has always had a brain for business.

0:23:000:23:02

At the tender age of four, he started selling manure.

0:23:020:23:05

And when he was ten he wrote his first children's book.

0:23:050:23:08

I've always loved writing.

0:23:100:23:12

And I've always loved animals.

0:23:120:23:14

I wanted to put all my favourite things together.

0:23:140:23:17

The book was a roaring success and the spin-off accessory business

0:23:180:23:23

using the characters he created has taken Henry into the big time.

0:23:230:23:26

So, my role in the business is the ideas behind it,

0:23:270:23:31

but it's kind of important that I have a team

0:23:310:23:33

or else the whole business

0:23:330:23:35

would just be ideas and we'd get nothing done.

0:23:350:23:37

And one of the key members of Henry's team is his mum, Becky.

0:23:390:23:42

So, Henry comes up with a million ideas.

0:23:430:23:47

Usually over a milkshake.

0:23:470:23:48

My role is taking those ideas,

0:23:480:23:50

I think, saying, "Actually, we'll scrap those

0:23:500:23:53

"because they're crazy and these ones, let's go for it,"

0:23:530:23:57

and then turning them into reality.

0:23:570:24:01

At work, they're colleagues but at home,

0:24:010:24:03

it's Becky who still calls the shots.

0:24:030:24:06

Thanks, everyone.

0:24:060:24:07

She still tells me to go and clean my room.

0:24:070:24:10

I still have to do my homework.

0:24:100:24:11

I still have a bedtime.

0:24:110:24:13

Like, it's no any different to any other parent relationship out there.

0:24:130:24:19

And of course, Henry has to balance business, school,

0:24:190:24:22

work and his other hobbies.

0:24:220:24:24

So, when I'm not doing the business,

0:24:240:24:27

I love to go and play with Martha outside.

0:24:270:24:30

I also love to sing.

0:24:300:24:32

I'm obsessed with musical theatre.

0:24:320:24:35

So, yeah, I get up to a whole range of things.

0:24:350:24:38

Martha is my dog.

0:24:380:24:39

She's the first thing I bought with the profits I made.

0:24:390:24:44

So, what's next for Henry?

0:24:440:24:45

Mum Becky has her own prediction.

0:24:450:24:48

So, Henry, when he's older, he wants to write a musical.

0:24:480:24:52

I think he will end up doing something musically-stagey...ish.

0:24:520:24:58

And Henry has one bit of advice

0:24:580:25:00

for all those budding entrepreneurs out there.

0:25:000:25:03

You're always going to have these times when you're feeling so bad.

0:25:030:25:08

And times when you're feeling so good.

0:25:080:25:10

But don't stop until you achieve your goal.

0:25:100:25:13

Parents should definitely take it seriously

0:25:130:25:15

if their kids are entrepreneurial.

0:25:150:25:17

And I think if parents are encouraging people like that,

0:25:170:25:19

it's only going to make them better at everything in life,

0:25:190:25:22

because it teaches them so many great life skills.

0:25:220:25:24

Not just about being a businessperson

0:25:240:25:27

but how to deal with rejection,

0:25:270:25:29

how to deal with challenges, but also how to interact with people,

0:25:290:25:33

how to communicate, how to market.

0:25:330:25:35

And all of that is crucial in your life.

0:25:350:25:37

Our young entrepreneurs clearly have plenty of time

0:25:410:25:44

to enjoy fun things, too.

0:25:440:25:46

And that's exactly what people here in Southport are doing.

0:25:460:25:49

So I want to chat with them about how much they spend on their days out.

0:25:490:25:52

There's a nice big family here.

0:25:550:25:57

How much do you think you will have spent today?

0:25:570:26:00

Roughly about ?60-?70.

0:26:000:26:02

A day out, these days, for a family, it's pretty pricey, isn't it?

0:26:020:26:06

We've got more to spend, on our tea.

0:26:060:26:08

Yeah, so, the day hasn't finished yet. No. Have you had a good day?

0:26:080:26:12

We've had a lovely day. Yeah, we've had a brilliant day, thank you.

0:26:120:26:14

How do you keep the costs down?

0:26:140:26:16

Bring food, picnic. Good, good. So, a picnic...

0:26:160:26:19

In the arcades, two penny machines, things like that.

0:26:190:26:22

Yeah.

0:26:220:26:24

Sounds like you've got a savvy mum and dad, haven't you?

0:26:240:26:27

I know you're trying to run, but I can run faster! Can't!

0:26:270:26:32

OK. Well, I used to be able to.

0:26:320:26:34

We're just looking at how much it costs to do fun days out these days.

0:26:340:26:38

We've been to the botanic gardens and we've been around the front,

0:26:380:26:40

so we really haven't spent that much, so, honestly,

0:26:400:26:43

you don't have to spend much to have a good day out, I wouldn't say.

0:26:430:26:46

Now, this takes me back. Have you had a good day? Has it been busy?

0:26:460:26:50

It's been nice. Had lots of families coming through?

0:26:500:26:52

Yeah, lots of children.

0:26:520:26:53

They all want everything. They do want everything, don't they?

0:26:530:26:57

It's expensive for children, as well, and families.

0:26:570:26:59

Well, I'm going to leave now,

0:26:590:27:01

because I've got my eye on a couple of those ice creams.

0:27:010:27:04

You can have one, if you want. Do you want one? Cut the cameras!

0:27:040:27:07

THEY LAUGH

0:27:070:27:08

While Denise enjoys her ice cream,

0:27:120:27:13

I'm hanging out with two people who have turned their favoured leisure

0:27:130:27:17

activities into cash in the bank.

0:27:170:27:19

Welcome to Mohammed and Ashley.

0:27:190:27:22

Mohammed, you're 17, still a teenager.

0:27:220:27:26

But you're already making money doing something that you love doing.

0:27:260:27:28

Tell us about it. When I was 12, I set up my own company.

0:27:280:27:31

It was a website development agency which developed website and software

0:27:310:27:35

for businesses that needed to advertise their services.

0:27:350:27:38

When I was four, I had to beg my parents to get a computer.

0:27:380:27:42

I knew computers was just my thing, it was my passion.

0:27:420:27:44

And you are totally self-taught.

0:27:440:27:46

I'm self-taught - everything that I've learned,

0:27:460:27:48

I've just read books and used YouTube.

0:27:480:27:50

Ashley, you're going to like this bit now, because bear in mind,

0:27:500:27:53

Mohammed, he's 17, still at school... Yeah.

0:27:530:27:55

But some big technology company, presumably in California, yeah...?

0:27:550:27:59

Yeah. ..made you an offer, to buy his technology and his algorithm.

0:27:590:28:02

Give us a figure. What did they offer you?

0:28:020:28:04

It was in the region of more than ?5 million.

0:28:040:28:06

My goodness!

0:28:060:28:07

Please tell me you said yes.

0:28:090:28:11

Unfortunately not yet, but there has been...

0:28:110:28:14

We are still talking, and in a few months' time along the road,

0:28:140:28:17

it will be final. Oh, my goodness.

0:28:170:28:19

When that offer came through, what did your mum and dad say to you?

0:28:190:28:22

Well, they were shocked in a sense,

0:28:220:28:24

because obviously, millions to them isn't some kind of joke.

0:28:240:28:28

So it was quite a lot of money.

0:28:280:28:30

Ashley. Yes. I've got to come to you now.

0:28:300:28:32

Absolutely. You are involved in insurance.

0:28:320:28:34

Mm-hm. But you also like taking photographs, which earn you money.

0:28:340:28:39

Mm-hm. So explain what's happened to you.

0:28:390:28:42

OK, so the way that I earn a bit of extra money on the side on top of my

0:28:420:28:46

job is through selling my photographs.

0:28:460:28:49

So for example, if I go on holiday or just a day off,

0:28:490:28:52

I'll always take my camera with me.

0:28:520:28:55

And there are a couple of ways that I can turn that into money.

0:28:550:28:58

So the most obvious one is by,

0:28:580:29:00

for example, taking a beautiful landscape,

0:29:000:29:03

turning it into a print and selling it online.

0:29:030:29:05

But another way is through selling licenses to images.

0:29:050:29:09

When somebody buys a licence to my photo,

0:29:090:29:11

I'm giving them permission to use it in a capacity

0:29:110:29:14

that's been agreed by both parties.

0:29:140:29:17

And that means that you can generate income from your photos

0:29:170:29:20

long after you've taken them.

0:29:200:29:22

If you're wanting people to buy prints of your photos,

0:29:220:29:25

you can set up an online shop for free -

0:29:250:29:27

it's going to cost you nothing,

0:29:270:29:29

but whenever you upload a photo online,

0:29:290:29:31

make sure in the description you are saying, "This is available to buy for print,"

0:29:310:29:34

and link them to your shop. So that's the key.

0:29:340:29:37

Eight months ago, I launched a small insurance business.

0:29:370:29:39

I was able to use ?10,000 that I'd earned doing photography to get my

0:29:390:29:44

business off the ground. So I feel like it has served its purpose.

0:29:440:29:47

It's a sunny day in Southport.

0:29:470:29:48

What photograph would you take round here, and where would you put it?

0:29:480:29:51

I'd get a nice sunset of the promenade,

0:29:510:29:55

and I would share it everywhere I could, that's the key.

0:29:550:29:58

Put it on your blog, put it on Instagram, put it on Facebook,

0:29:580:30:02

put it on Twitter, get it as many places as possible,

0:30:020:30:04

in front of as many eyes as possible, and that increases

0:30:040:30:07

your chance of earning a bit of money on the side.

0:30:070:30:09

And that's with everything - I mean, if you don't...

0:30:090:30:12

It's all about word of mouth,

0:30:120:30:13

if you have a passion and you want to get out there,

0:30:130:30:15

you need to tell people about it.

0:30:150:30:17

Mohammed, Ashley, it's been an absolute pleasure

0:30:170:30:19

to meet both of you, and good luck for the future.

0:30:190:30:21

Thank you. Thank you.

0:30:210:30:22

Earlier on, we met busy mum Lizzie,

0:30:250:30:27

who was relying on a hefty overdraft to stay afloat.

0:30:270:30:30

So has money editor Claer Barrett managed to sort her finances out?

0:30:300:30:33

36-year-old Lizzie has her hands full with twins Daisy and Zachary.

0:30:360:30:41

As well as working part-time as a schoolteacher,

0:30:410:30:44

Lizzie is putting in extra hours

0:30:440:30:46

to build up her business as a copy editor.

0:30:460:30:50

I come home and I get to spend an hour,

0:30:500:30:51

an hour and a half with the kids before they go to bed.

0:30:510:30:54

And then I might have freelance copy editing work once they're in bed.

0:30:540:30:58

But so far, Lizzie's been unable to reap the rewards of her hard work.

0:30:580:31:03

As well as depending on mum Jan for childcare, she's relying on not one,

0:31:030:31:07

but two hefty overdrafts.

0:31:070:31:09

Wow!

0:31:090:31:11

I am trying to get us to a point where we are financially stable.

0:31:110:31:14

Although it's not quite working at the moment!

0:31:140:31:16

One thing at a time! Can you find us?

0:31:160:31:19

I'm going to look for you.

0:31:190:31:21

Sometimes, if she's really short, I will buy her weekly shop.

0:31:210:31:24

Sort of things like that. When the children need shoes,

0:31:250:31:28

she buys one pair, I buy the other.

0:31:280:31:30

Like, car seats, she bought one, I bought the other.

0:31:300:31:32

FT money editor Claer Barrett has already come up with some great ways

0:31:340:31:39

Lizzie can save money on one of her biggest outgoings -

0:31:390:31:42

looking after the twins.

0:31:420:31:44

?5 every week over the course of a year - ?250.

0:31:440:31:48

Now Claer's back,

0:31:480:31:49

with some more good news for Lizzie on those childcare costs.

0:31:490:31:53

So, Lizzie. As a single parent who also works,

0:31:550:31:58

obviously you are entitled to some help from the Government,

0:31:580:32:02

in the form of tax credits.

0:32:020:32:03

So I've been looking into how your benefits are calculated.

0:32:030:32:07

Now, the next milestone is when they turn three.

0:32:070:32:10

Because when they turn three,

0:32:100:32:12

you'll be entitled to quite a lot of free childcare.

0:32:120:32:16

Up to 30 hours per week, per child.

0:32:160:32:18

Yeah. Which is going to make a massive difference

0:32:180:32:22

to your individual situation.

0:32:220:32:24

From September, eligible parents in England

0:32:250:32:28

with children aged between three and four

0:32:280:32:31

could claim up to 30 hours of free childcare a week during term time.

0:32:310:32:35

This scheme means Lizzie could potentially save up to ?1,080

0:32:350:32:41

a month. The amount and hours of childcare help offered in Wales,

0:32:410:32:45

Scotland and Northern Ireland varies,

0:32:450:32:47

but there are similar schemes available to eligible parents.

0:32:470:32:51

Next up, Claer sends Lizzie for a pep talk

0:32:510:32:54

from entrepreneur Michelle Lamb.

0:32:540:32:56

She also started her successful events company from home.

0:32:560:32:59

Hello. Nice to meet you.

0:32:590:33:01

So I've got lots of questions for you...

0:33:010:33:02

Go for it. ..about getting more...

0:33:020:33:05

Well, building my copy-editing business.

0:33:050:33:08

The main thing that I'm wondering about

0:33:080:33:10

and I know absolutely nothing about is,

0:33:100:33:13

I'm literally just registered self-employed, as Lizzie Sarchet

0:33:130:33:17

but I don't know about building a brand.

0:33:170:33:19

Because I've just got a second customer

0:33:190:33:20

and they asked me what my company name was.

0:33:200:33:22

And I was a bit, like, "I don't have one."

0:33:220:33:25

I don't necessarily think that you have to have a brand name.

0:33:250:33:29

I would probably advise having a website, something really,

0:33:290:33:32

really simple with your contact details on it.

0:33:320:33:34

OK. How are you finding the work/life balance - being a mum,

0:33:340:33:38

working and building a business?

0:33:380:33:40

Er... Well, yeah, it's hard.

0:33:400:33:44

So quite a lot of it gets done in the evening

0:33:440:33:46

once the children have gone to bed.

0:33:460:33:48

That's how actually I operate my day, generally.

0:33:480:33:50

In this day and age, people are so open to flexible working hours.

0:33:500:33:54

You don't have to think, "Right, I need to work between nine and five."

0:33:540:33:57

And ultimately, you are creating a way

0:33:570:33:59

of having a better work/life balance - earning some money

0:33:590:34:02

as well as being able to spend time with your family. Yeah.

0:34:020:34:06

And it's clear that Lizzie's been inspired by the meeting.

0:34:060:34:09

The whole business world just seems really mysterious to me

0:34:100:34:13

and something I know nothing about,

0:34:130:34:15

and a bit scary, but having spoken to Michelle,

0:34:150:34:18

she's made me realise that actually it's not at all,

0:34:180:34:20

and that I just need to use the resources I have.

0:34:200:34:23

And talking about working hard, Claer's been a busy bee too.

0:34:240:34:28

Along with mortgage expert David Hollingsworth,

0:34:280:34:31

they've been looking at Lizzie's mortgage.

0:34:310:34:33

She is paying 3.44% interest,

0:34:330:34:36

and unless Lizzie takes action when the deal expires,

0:34:360:34:39

she'll be put on a standard variable rate.

0:34:390:34:42

Time to look for a new deal fast, Lizzie!

0:34:420:34:45

They give them a nice, friendly-sounding name,

0:34:450:34:48

the standard variable rate,

0:34:480:34:50

but what it really means is a massive increase in costs.

0:34:500:34:53

If you switch on to the standard variable rate,

0:34:530:34:55

you basically may as well just throw money away.

0:34:550:34:59

Right.

0:34:590:35:01

Really what you need to do is shop around.

0:35:010:35:03

See what your existing lender might offer you,

0:35:030:35:06

and then compare it with what you could get from elsewhere in the market.

0:35:060:35:10

Uh-huh.

0:35:100:35:12

If you are thinking of changing your mortgage arrangement,

0:35:120:35:15

check there are no penalty charges.

0:35:150:35:17

But if your special rate is coming to an end,

0:35:170:35:19

start looking around in advance

0:35:190:35:21

to avoid being plonked on a higher interest plan by your lender.

0:35:210:35:25

Well, I think in the past that has happened to me,

0:35:250:35:27

due to a lack of preparation!

0:35:270:35:29

But pay attention,

0:35:300:35:31

because here comes an absolute belting bit of advice.

0:35:310:35:35

So, me and Dave have noticed in your paperwork that you also have

0:35:350:35:39

the option to overpay your mortgage, by up to 10% each year.

0:35:390:35:42

Now, overpaying your mortgage you might think,

0:35:420:35:45

"Oh, where am I going to find the money from?"

0:35:450:35:47

But don't forget, in September,

0:35:470:35:50

you'll have a bit more money coming through

0:35:500:35:52

with the childcare costs going down.

0:35:520:35:53

Yeah. Just ?50 a month every month

0:35:530:35:56

for the remaining term of the mortgage, which is 29 years -

0:35:560:36:00

so this is a theoretical calculation -

0:36:000:36:03

could save you...

0:36:030:36:04

..in interest payments...

0:36:060:36:07

..around that figure. Wow. ?10,000.

0:36:080:36:11

Yeah. ?50 a month.

0:36:110:36:13

Amazing. And, what's more, you pay the mortgage back sooner.

0:36:130:36:17

Right. So if you were overpaying ?50 a month,

0:36:170:36:20

based on all of this paperwork,

0:36:200:36:22

you would actually repay your mortgage nearly four years sooner...

0:36:220:36:26

Right. ..than you would do otherwise.

0:36:260:36:28

So even little overpayments...

0:36:280:36:30

Yeah. ..can make a big difference in the future.

0:36:300:36:33

Told you that was a corker!

0:36:330:36:35

It's amazing to think that just ?50 extra a month could end up saving

0:36:350:36:39

Lizzie ten grand.

0:36:390:36:41

Back home, and Claer thinks she's found a solution to the problem

0:36:420:36:46

that's causing Lizzie countless sleepless nights -

0:36:460:36:49

her ?5,000 overdraft.

0:36:490:36:51

I can see psychologically that it's not a good state of mind

0:36:510:36:55

for you to be in, so...

0:36:550:36:57

Well, anyway, the good news is that I've come up with what could be a

0:36:570:37:01

solution for you. It's a bit of an unusual solution,

0:37:010:37:04

and it's probably something that you wouldn't have ever thought of yet.

0:37:040:37:08

And one answer could be to look into converting some of that overdraft

0:37:080:37:14

into a personal loan.

0:37:140:37:16

Right. "Right," she says!

0:37:160:37:18

You're giving me that schoolteacher look.

0:37:180:37:20

Somebody who's earning what you're earning and has got a good credit

0:37:200:37:23

rating, like you have,

0:37:230:37:25

should be able to get ?5,000 personal loan over five years,

0:37:250:37:31

at a much, much lower interest rate than an overdraft.

0:37:310:37:34

Right. So, in actual fact,

0:37:340:37:37

the amount of fees that you would be paying a year,

0:37:370:37:39

instead of being ?1,560, would be ?320 in interest...

0:37:390:37:45

That's so much better. ..because the interest is so much lower.

0:37:450:37:48

Yeah. And even better news - the monthly repayment of ?111.

0:37:480:37:53

Amazing.

0:37:530:37:54

That's a saving of ?1,620 a year.

0:37:540:37:58

Clearing your overdrafts with a personal loan

0:37:580:38:01

may not be right for everyone. And if you do take out a loan,

0:38:010:38:05

you should avoid just running up another overdraft.

0:38:050:38:07

If you are struggling, seek help from debt charities or organisations

0:38:070:38:11

like Citizens Advice.

0:38:110:38:13

It is in effect replacing a very expensive debt

0:38:130:38:16

with a cheaper form of debt. But it is still a debt.

0:38:160:38:20

I think that you can handle this,

0:38:200:38:21

because it will make your repayments lower.

0:38:210:38:23

It is the end of Claer's money-saving marathon.

0:38:250:38:27

So, how much difference has she made to Lizzie's finances?

0:38:270:38:31

As well as that ?1,620 in overdraft fees,

0:38:310:38:35

add ?1,200 on days out for the twins by using free activities.

0:38:350:38:39

And a further ?533, using her local toy library.

0:38:390:38:44

But the biggest and most amazing saving of all -

0:38:440:38:48

10,000 smackers on her mortgage!

0:38:480:38:50

Which makes a grand savings total of ?13,353.

0:38:500:38:56

Wow!

0:38:560:38:57

Claer has made a massive difference to Lizzie's budget and given her

0:38:570:39:01

lots of things to think about.

0:39:010:39:03

I definitely think I'm going to be changing some of my spending habits.

0:39:040:39:08

Claer's been so helpful,

0:39:080:39:09

and has made me feel like I can actually manage my money and

0:39:090:39:14

I can sort out the overdraft, so it's been brilliant.

0:39:140:39:18

LAUGHTER

0:39:180:39:22

And I'm delighted to say that Lizzie's here,

0:39:230:39:26

along with money man Simon Read.

0:39:260:39:28

Lizzie, I loved your film,

0:39:280:39:29

and I think you're a super mum doing a great job.

0:39:290:39:31

But it is difficult keeping those costs down.

0:39:310:39:34

Absolutely. I mean, with two children,

0:39:340:39:36

double the childcare, double the food, the clothes, the entertaining,

0:39:360:39:40

everything, is really, really expensive.

0:39:400:39:42

You've got double the trouble, double the work, half the sleep -

0:39:420:39:46

but of course double the pleasure. Yes. All right. Definitely.

0:39:460:39:49

I mean, you're a very smiley lady,

0:39:490:39:50

you're obviously very proud of your girl and boy, aren't you?

0:39:500:39:53

Yes, I am, they are lovely,

0:39:530:39:54

and I think that is part of the issue, though,

0:39:540:39:56

because I feel like I want to buy them things and what have you,

0:39:560:39:59

because I love them and I want to spoil them.

0:39:590:40:01

But sometimes that's not actually possible financially.

0:40:010:40:05

Your mortgage was obviously a very big issue for you, wasn't it?

0:40:050:40:07

The biggest thing that Claer helped me with the mortgage,

0:40:070:40:10

is that they told me how I can release some equity

0:40:100:40:12

when I get my new mortgage deal,

0:40:120:40:14

which means I will be able to do a loft conversion in my house

0:40:140:40:18

which means my children will get to have a bedroom each,

0:40:180:40:21

which is an absolute dream for me, that that's a possibility now.

0:40:210:40:24

Simon, it seems that when a mortgage company offer us a mortgage,

0:40:240:40:28

quite often we are so excited

0:40:280:40:29

or perhaps in a hurry, we just accept it.

0:40:290:40:32

That is not always the best advice, is it?

0:40:320:40:34

It's not the best advice at all.

0:40:340:40:35

People think the lenders

0:40:350:40:37

are doing them a favour by granting them a loan.

0:40:370:40:39

It's only a loan -

0:40:390:40:40

they should think of it the same as buying a can of beans these days,

0:40:400:40:43

there is competition out there,

0:40:430:40:44

and you wouldn't just buy the most expensive can of beans -

0:40:440:40:47

you would go and find the best one.

0:40:470:40:48

You should do exactly the same with a mortgage.

0:40:480:40:50

I mean, I'd suggest go to a mortgage broker,

0:40:500:40:52

who can tell you what's going on

0:40:520:40:54

and whether there are even better deals that you're not aware of.

0:40:540:40:57

Having those sleepless nights wondering what it might be like

0:40:570:41:01

in a month's time, or by next year, is tough.

0:41:010:41:04

Yeah, definitely. I'm so glad I came on the programme,

0:41:040:41:06

because I do now feel much more confident about my finances.

0:41:060:41:10

So it's been brilliant coming on.

0:41:100:41:12

Simon, you've helped a lot of the families in this series.

0:41:120:41:15

What's been most interesting for you about their story?

0:41:150:41:17

Um, do you know what, I think for me,

0:41:170:41:20

it's been the fact that all of them have

0:41:200:41:22

reached a realisation that by adopting a few simple changes

0:41:220:41:26

in the way they spend and the way they think about spending,

0:41:260:41:29

they can get control of their money rather than BEING controlled by it.

0:41:290:41:32

And all the families I've worked with have got to that point -

0:41:320:41:37

and it is like a light bulb, it's like a flash of light-

0:41:370:41:39

"Wow, actually this is quite easy." And it IS -

0:41:390:41:41

once you get into the right routines.

0:41:410:41:43

Thanks, Lizzie. Simon.

0:41:430:41:45

Now, if like Lizzie, you'd fancy one of our experts giving YOU a money

0:41:450:41:48

makeover, e-mail us at:

0:41:480:41:50

But if it is easy money-saving tips you're after,

0:41:520:41:54

here's a good place to start.

0:41:540:41:56

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

0:41:570:42:01

We've teamed up with the Money Advice Service to bring you easy

0:42:010:42:05

to use money-saving tools to plan your budget,

0:42:050:42:08

calculate the cost of your car or credit cards,

0:42:080:42:11

and give your money a complete health check.

0:42:110:42:14

Download them at:

0:42:140:42:15

And Simon's still here to answer some of the questions

0:42:230:42:25

we've had from people today.

0:42:250:42:26

Zoe has a question. She is on a zero hours contract and wants to know,

0:42:260:42:31

will she be able to get a mortgage? Well, she is not alone.

0:42:310:42:33

There are about a million people now in the country

0:42:330:42:36

on zero hours contracts.

0:42:360:42:37

And the mainstream lenders don't like them,

0:42:370:42:39

because they worry that the regular income is not guaranteed.

0:42:390:42:44

But there are specialist lenders,

0:42:440:42:45

and most of the smaller building societies,

0:42:450:42:47

which actually lend on affordability,

0:42:470:42:49

ie they will sit down with Zoe and other people

0:42:490:42:51

and talk about how much they are earning,

0:42:510:42:53

how much they would like to learn and work out whether they

0:42:530:42:55

can lend to them. And there should be deals out there.

0:42:550:42:57

If she struggles to find one, go to a mortgage broker,

0:42:570:43:00

because they will be able to tap into someone.

0:43:000:43:02

Now, Mark says, "I usually have holiday insurance

0:43:020:43:04

"through my bank account. Is that the best way?"

0:43:040:43:08

It's not always the best way.

0:43:080:43:09

I've been caught out when I've relied on the insurance

0:43:090:43:12

I get with my bank account,

0:43:120:43:13

and I haven't been able to claim because of the exclusions.

0:43:130:43:16

So you need to look carefully at what the policy covers,

0:43:160:43:18

and whether it is right for your trip.

0:43:180:43:19

If it's not, get a separate policy.

0:43:190:43:22

Now, I have travel insurance through my bank,

0:43:220:43:24

and being type one diabetic, I've told them that,

0:43:240:43:26

and they adjusted the policy and I have to pay a little bit towards it.

0:43:260:43:29

But any of these insurance companies,

0:43:290:43:31

they will bespoke the actual agreements with the person,

0:43:310:43:33

depending on what illnesses you have, won't they?

0:43:330:43:35

Yeah, exactly right. It's a question of checking beforehand,

0:43:350:43:38

looking at all the small print,

0:43:380:43:39

seeing what's included, what's excluded and what you actually need.

0:43:390:43:43

And only pay for what you need.

0:43:430:43:45

Thanks, Simon. And indeed thanks to all our guests today,

0:43:460:43:48

and not forgetting you at home too.

0:43:480:43:50

We hope you've picked up some top money-saving tips

0:43:500:43:53

to make sure you are Right On The Money.

0:43:530:43:55

See what I did there? Oh, Lewis!

0:43:550:43:57

Goodbye.

0:43:590:44:00

We know we're the last thing

0:44:320:44:33

between something disastrous...

0:44:330:44:35

..and something hopeful.

0:44:370:44:38

Just sometimes we make a difference.

0:44:380:44:41

That's why we come to work.

0:44:410:44:43

That's what this place is all about.

0:44:430:44:45

SIRENS WAIL

0:44:450:44:46

What's she saying? Let's get her on some O2

0:44:460:44:48

and get her off the street, OK?

0:44:480:44:50

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