0:00:03 > 0:00:05Whether you're a spender or a saver,
0:00:05 > 0:00:07we could all do with making the most of our cash.
0:00:07 > 0:00:12So we found simple advice for you to do just that,
0:00:12 > 0:00:15and taken it to people right across the UK.
0:00:15 > 0:00:19Whatever help you need with your finances, we are Right On The Money.
0:00:22 > 0:00:25Morning and welcome to Right On The Money.
0:00:25 > 0:00:28The show that sets out to boost your piggy bank by making a few simple changes.
0:00:28 > 0:00:32And today's show is packed with lots of easy-to-understand tips
0:00:32 > 0:00:34that could transform your finances.
0:00:34 > 0:00:36Here's what's coming up.
0:00:37 > 0:00:40We try and help a family desperate to extend their home.
0:00:40 > 0:00:41But there's a problem -
0:00:41 > 0:00:44the mountain of money they're spending on takeaways.
0:00:44 > 0:00:47You probably only family I know that actually have a burger mortgage.
0:00:47 > 0:00:51That's crazy. I didn't realise it was that much.
0:00:51 > 0:00:55And the new craze that's fuelling a nation of night-time spending.
0:00:55 > 0:00:57Welcome to the world of the vampire shopper.
0:00:57 > 0:01:01When I start shopping at night, I am quite vulnerable
0:01:01 > 0:01:03to just start clicking and just think
0:01:03 > 0:01:05"Oh, I'll buy that. That'll do."
0:01:05 > 0:01:07Seven, eight black skirts.
0:01:07 > 0:01:08I'm quite ashamed now.
0:01:11 > 0:01:15Now lots of people we meet want to save enough money to pay for something,
0:01:15 > 0:01:17like a wedding or a special family holiday.
0:01:17 > 0:01:18But today we meet a couple
0:01:18 > 0:01:22whose priority is to make someone else's life easier.
0:01:24 > 0:01:26Paul and Kim Welsh live in Leicestershire
0:01:26 > 0:01:27with their four children.
0:01:29 > 0:01:33I would describe Paul as the funny man.
0:01:33 > 0:01:34Always got a cheesy smile.
0:01:34 > 0:01:36And the kids have all got his smile.
0:01:36 > 0:01:38Well, what can I say about Kim?
0:01:38 > 0:01:42She's beautiful. She's nice, she's kind-hearted.
0:01:42 > 0:01:44I don't think... She moans a lot.
0:01:45 > 0:01:46But, I love her.
0:01:46 > 0:01:48Oh, I love you too.
0:01:48 > 0:01:52But both Paul and Kim also have extremely busy lives.
0:01:52 > 0:01:56He delivers takeaways and she manages the local convenience store.
0:01:56 > 0:01:57We do work hard.
0:01:57 > 0:02:00We both work full-time, we both do six days a week.
0:02:00 > 0:02:03Don't get to spend as much time as I want with the kids
0:02:03 > 0:02:06but we have bills to pay and mortgages to pay.
0:02:06 > 0:02:08Let's see who can get the highest?
0:02:08 > 0:02:10And, as if that wasn't enough,
0:02:10 > 0:02:14their hectic household could soon be getting even busier.
0:02:14 > 0:02:18Kim's younger brother, who has a rare macular degeneration syndrome,
0:02:18 > 0:02:19might have to move in.
0:02:19 > 0:02:23Alex is my 21-year-old brother, who's going blind.
0:02:23 > 0:02:25At any point now, he could lost his sight.
0:02:25 > 0:02:29Currently lives with my mum and Alex will need looking after.
0:02:29 > 0:02:34Kim and Paul's dream is to extend their house so Alex can move in too.
0:02:34 > 0:02:38What's very important for me is if and when I do lose my sight,
0:02:38 > 0:02:41then I know I've got somewhere to live.
0:02:41 > 0:02:44And if I need anyone, I know someone's there.
0:02:44 > 0:02:46So if we managed to save some money,
0:02:46 > 0:02:48the first thing is the extension, isn't it?
0:02:48 > 0:02:50Yeah, definitely. We want to sort the extension out
0:02:50 > 0:02:52and then we want to make the best of our house.
0:02:55 > 0:02:56So, that sounds like a plan.
0:02:56 > 0:02:58A nice bit of home improvement
0:02:58 > 0:03:01to make the house bigger and better for all.
0:03:01 > 0:03:02But there's a problem.
0:03:02 > 0:03:06Money. Well, to be more accurate, how Kim and Paul spend it.
0:03:06 > 0:03:10You're quite a big spender, so if I go out it's small amounts.
0:03:10 > 0:03:13You could spend ?100 in one shot.
0:03:13 > 0:03:16Whereas mine is little bits of money.
0:03:16 > 0:03:18I look at my bank account once a month
0:03:18 > 0:03:21and I'll tend to look back on what I spent for the month
0:03:21 > 0:03:24and then I'll be a bit like, why did we do that?
0:03:24 > 0:03:28Paul and Kim also like to nip off for the occasional mini-break which
0:03:28 > 0:03:31means there's not a lot left in the bank at the end of the month.
0:03:31 > 0:03:35We go about once a month if we can.
0:03:35 > 0:03:37Just trying to spend some quality time with each other.
0:03:37 > 0:03:41Because we both work hard and we think we deserve it.
0:03:41 > 0:03:45When you work six days a week, you ain't got no time for each other.
0:03:45 > 0:03:47So it is important for us to spend that time.
0:03:47 > 0:03:50We've made it our mission to help Paul and Kim to save for their
0:03:50 > 0:03:53extension, and still enjoy their life together.
0:03:53 > 0:03:56Can they make their money go further?
0:03:56 > 0:03:59So finance expert Sarah Pennells has come to pay them a visit.
0:04:01 > 0:04:03Hello. Hi, I'm Sarah. I'm Paul. Nice to meet you.
0:04:03 > 0:04:06Would you like to come in? Thank you very much.
0:04:06 > 0:04:08Now, Paul and Kim, as you may have heard,
0:04:08 > 0:04:10I'm just absolutely fascinated by your finances
0:04:10 > 0:04:12so I want you to tell me more.
0:04:12 > 0:04:17I do know that I spend a lot on convenience shops, um, takeaways, eating out.
0:04:17 > 0:04:21If we was to add it up, it'd probably more than I thought.
0:04:21 > 0:04:23It's a lot more than what you thought.
0:04:23 > 0:04:26I tend to just hand the card over and spend.
0:04:26 > 0:04:28Probably look the bills afterwards.
0:04:28 > 0:04:30So what are you having?
0:04:30 > 0:04:32I might have...
0:04:32 > 0:04:33With a full-on family life
0:04:33 > 0:04:37the Welshes sometimes fall back on the local takeaway.
0:04:37 > 0:04:38How can help you? Yes, please.
0:04:38 > 0:04:40Can I have an Istanbul special please?
0:04:40 > 0:04:42Of course, anything else you want? No, thank you.
0:04:42 > 0:04:46And delivery driver Paul has a very expensive hobby.
0:04:46 > 0:04:49Cars. They're his livelihood, but he owns four of them.
0:04:51 > 0:04:53Whereas I'm impulsive with my bank card in the shop,
0:04:53 > 0:04:55Paul's impulsive with cars.
0:04:55 > 0:04:58He gets an idea in his head that he needs a new car
0:04:58 > 0:05:00and I say get rid of what we've got.
0:05:00 > 0:05:02That doesn't happen.
0:05:02 > 0:05:05He comes back with the new car and that's why we've ended up with four.
0:05:06 > 0:05:10There's loads for Sarah to crack on with and with that house extension her goal,
0:05:10 > 0:05:12she's keen to begin.
0:05:13 > 0:05:15Let's see if we can come up with a way
0:05:15 > 0:05:17for you to still be able to do the things that you want to do
0:05:17 > 0:05:19but build up a pot of money
0:05:19 > 0:05:23so that you can build that annexe for your brother,
0:05:23 > 0:05:26that's obviously just really important to both of you.
0:05:26 > 0:05:28That would be great, wouldn't it? Yet, it would be good.
0:05:28 > 0:05:30That would satisfy everyone.
0:05:30 > 0:05:32No mystery about where we are here.
0:05:32 > 0:05:34No, this is one of our locals.
0:05:34 > 0:05:38Time for the money-saving menu and for starters she's got a quick hit.
0:05:38 > 0:05:42The huge amount of money this family spends on grub.
0:05:42 > 0:05:48Do you know how much you spend a week on going out and on takeaways?
0:05:48 > 0:05:51I'd say, probably,
0:05:51 > 0:05:53?60 to ?70, with drinks.
0:05:53 > 0:05:55Not even close, Paul.
0:05:55 > 0:05:57I think you'll be in for shock, guys.
0:05:57 > 0:06:01We've worked out that you spend
0:06:01 > 0:06:05a grand total of ?433 a month.
0:06:05 > 0:06:07Oh, my gosh. That's what this represents.
0:06:07 > 0:06:11That's almost ?110 every week.
0:06:11 > 0:06:13Nearly double Paul's guess.
0:06:13 > 0:06:17I'm a lazy cook. So if Paul's busy working at the weekend
0:06:17 > 0:06:20and I'm busy with the children, last-minute we'll be,
0:06:20 > 0:06:23"Let's grab something to eat, go home, and relax."
0:06:23 > 0:06:26Do you know what this adds up to?
0:06:26 > 0:06:29That's about ?5,200 a year.
0:06:29 > 0:06:34That is actually the same as you spend on your mortgage.
0:06:35 > 0:06:36Oh, my God.
0:06:36 > 0:06:40You are probably the only family I know who have a burger mortgage.
0:06:40 > 0:06:43That's crazy. I didn't realise it was that amount.
0:06:43 > 0:06:45That's a lot of money.
0:06:45 > 0:06:46But, hold your horses,
0:06:46 > 0:06:49that five grand only covers dining out and takeaways.
0:06:49 > 0:06:51What about down at the supermarket?
0:06:51 > 0:06:54Sarah's been totting that up as well.
0:06:54 > 0:06:55And that is the grand total...
0:06:56 > 0:07:02..of ?4,164 over a year.
0:07:02 > 0:07:04We actually spend less in the supermarket
0:07:04 > 0:07:07than we do on meals for one day of the week?
0:07:07 > 0:07:09Two days a week, one day.
0:07:09 > 0:07:13Wow. Between your takeaways, meals on the go,
0:07:13 > 0:07:16meals out and your supermarket shopping
0:07:16 > 0:07:20they add up to nearly ten grand over a year. On food?
0:07:20 > 0:07:23On food. That's just crazy, isn't it?
0:07:23 > 0:07:25That's a lot of money.
0:07:25 > 0:07:27Crazy indeed.
0:07:27 > 0:07:30Kim and Paul are clearly shocked by their annual takeaway tab,
0:07:30 > 0:07:34but don't worry, Sarah's not just about pointing out the problems,
0:07:34 > 0:07:36she's also got the solutions.
0:07:36 > 0:07:39So I think the key is to actually work out a budget
0:07:39 > 0:07:42of how much you want to spend when you're going out for meals,
0:07:42 > 0:07:45on takeaways, or things like that, and then stick to that budget.
0:07:45 > 0:07:49If necessary, take cash out at the beginning of the week and when the
0:07:49 > 0:07:51money's gone, you stop spending it.
0:07:51 > 0:07:54Yeah, that sounds a good idea because when I use my card,
0:07:54 > 0:07:56it doesn't feel like I'm spending.
0:07:56 > 0:07:59I think it's a lot more painful to hand over a crisp note
0:07:59 > 0:08:01than it is to wave a card around.
0:08:01 > 0:08:03It is, definitely.
0:08:03 > 0:08:05And Sarah's got one more money-saving morsel up her sleeve.
0:08:05 > 0:08:07When you're eating out,
0:08:07 > 0:08:11there are some mystery shopping sites that you can sign up for,
0:08:11 > 0:08:14that would pay you for doing a review if you eat out.
0:08:14 > 0:08:17Oh, that would be good one, wouldn't it?
0:08:18 > 0:08:21You're quite critical. Always.
0:08:21 > 0:08:25Websites are constantly advertising for volunteers
0:08:25 > 0:08:29to complete detailed reports on a restaurant, hotel, or pub.
0:08:29 > 0:08:34So now you do still get to eat out but you get paid for doing it,
0:08:34 > 0:08:36which sounds like a win-win to me.
0:08:36 > 0:08:38OK. You'll like that, won't you?
0:08:38 > 0:08:41You'll soon develop a taste for saving money, I'll tell you.
0:08:41 > 0:08:43I see what you've done there, Penells.
0:08:43 > 0:08:46If Kim and Paul halve their takeaway spending
0:08:46 > 0:08:51and shop savvy at the supermarket, they can save a pot of cash.
0:08:51 > 0:08:55With the couple beginning to realise how a few changes can reap rewards,
0:08:55 > 0:08:58it's time to tackle Paul's expensive hobby. Cars.
0:08:58 > 0:09:00You've got a lot of cars, haven't you?
0:09:00 > 0:09:03Four in all. Just a few, yeah.
0:09:03 > 0:09:07Paul had planned to strip this old motor for parts for his newer car,
0:09:07 > 0:09:10but, two years on, it's still sitting in the drive
0:09:10 > 0:09:13losing value with every day that goes by.
0:09:13 > 0:09:15Sarah thinks it's time to cut their losses.
0:09:15 > 0:09:20If you sell the car for scrap, you can probably get around 80 quid for.
0:09:20 > 0:09:22That's a good start. Not a fortune,
0:09:22 > 0:09:24but it's 80 quid that's in your pocket.
0:09:24 > 0:09:28Rather than... That can start our saving pot, can't it?
0:09:28 > 0:09:29Wise words, Kim.
0:09:29 > 0:09:31And even with this one motor gone,
0:09:31 > 0:09:34tinkerer Paul won't be short of work to do.
0:09:34 > 0:09:35He's got another project on the go.
0:09:36 > 0:09:39Bye, car. One down.
0:09:39 > 0:09:41Hello, ?80.
0:09:43 > 0:09:45With the first deposit in their savings pot,
0:09:45 > 0:09:48it's time for Sarah to save some more money.
0:09:48 > 0:09:51She's noticed they spend a hefty amount on clothes.
0:09:52 > 0:09:54If I was to go rifling through your children's wardrobes,
0:09:54 > 0:09:57would I find a few things with the labels on,
0:09:57 > 0:09:59or a few things that they don't need, maybe already got?
0:09:59 > 0:10:01Definitely. All our wardrobes.
0:10:01 > 0:10:03All of our wardrobes are full of stuff that we don't need.
0:10:03 > 0:10:08A-ha! Sounds a textbook case of impulse buying to me.
0:10:08 > 0:10:09I'm the bargain hunter,
0:10:09 > 0:10:11I look at the label and think,
0:10:11 > 0:10:15"Oh, that's supposed to be ?50-60 and it's on sale at ?20."
0:10:15 > 0:10:19I think, "That will do for a holiday, or for summer."
0:10:19 > 0:10:21Then buy it. Then Kim'll say,
0:10:21 > 0:10:23she ain't even wore it and now's she's grown out of it.
0:10:23 > 0:10:25What a waste.
0:10:25 > 0:10:27But Paul and Kim are not the only ones.
0:10:27 > 0:10:31Brits have a secret stash of unworn clothes
0:10:31 > 0:10:34worth over 10 billion pounds tucked away in their wardrobes.
0:10:34 > 0:10:38If you put the 600 million unworn garments next to each other,
0:10:38 > 0:10:41they would stretch 18,000 miles.
0:10:41 > 0:10:45That's equivalent of London to New York five times over.
0:10:45 > 0:10:49Those clothes may have looked like a bargain to you, Paul,
0:10:49 > 0:10:50but Sarah's not so sure.
0:10:50 > 0:10:54It's only a bargain if you actually use it and if you can afford it.
0:10:54 > 0:10:56And if this sort of everyday money that you're spending
0:10:56 > 0:10:59is stopping you from doing other things,
0:10:59 > 0:11:02maybe it's not the brilliant bargain you think it is.
0:11:02 > 0:11:04It's not, and we know that.
0:11:05 > 0:11:06But we still do it.
0:11:06 > 0:11:09So just how much cash are Paul and Kim spending
0:11:09 > 0:11:11on all this clobber?
0:11:11 > 0:11:15Well, in one month, you actually spent around ?390.
0:11:15 > 0:11:20And the average that you spend is about 347.
0:11:20 > 0:11:22And that's about ?4,000 a year.
0:11:22 > 0:11:24That's quite a lot.
0:11:24 > 0:11:27That's a very lot.
0:11:27 > 0:11:29You think you're getting bargains.
0:11:29 > 0:11:32Forget the price tag, it's what's the use to you?
0:11:32 > 0:11:34If it's ?20 of worth to you
0:11:34 > 0:11:38and you know you're going to use it, that's maybe one thing.
0:11:38 > 0:11:39But if it's ?20 you can't afford
0:11:39 > 0:11:43and it will sit at the back of the wardrobe gathering dust,
0:11:43 > 0:11:46that's not really a bargain. Yeah. True.
0:11:46 > 0:11:50If Paul started sharing the clothes-buying duties with Kim,
0:11:50 > 0:11:53she would have a chance of moderating his impulse buying.
0:11:53 > 0:11:56Sarah reckons they could save around ?2,500 a year.
0:11:58 > 0:12:01Does that sound like a plan? That sounds good to me.
0:12:01 > 0:12:02Yeah, good idea.
0:12:03 > 0:12:05Yes!
0:12:05 > 0:12:07Join us again when Kim and Paul realise
0:12:07 > 0:12:10how hard they going to have to work
0:12:10 > 0:12:12to pay for that dream extension for brother Alex.
0:12:12 > 0:12:14Better get saving, Mr Welsh.
0:12:14 > 0:12:16Better get working double time.
0:12:20 > 0:12:23And we'll be chatting to Kim and Paul a little later on.
0:12:23 > 0:12:27Joining us now is the Financial Times money editor Claer Barrett
0:12:27 > 0:12:30and professor of psychology Catriona Morrison.
0:12:30 > 0:12:34Claer, we'll start with you. Kim and Paul are also working very hard,
0:12:34 > 0:12:35to look after their family.
0:12:35 > 0:12:37They like to spend a lot of money on clothes
0:12:37 > 0:12:39and half of that stuff ends up in a bag
0:12:39 > 0:12:43in the bottom of the wardrobe with the labels on, not used.
0:12:43 > 0:12:45I'll be honest, I'm guilty of that myself.
0:12:45 > 0:12:46Why do people do that?
0:12:46 > 0:12:48Because we love shopping.
0:12:48 > 0:12:50It's the number one leisure activity in this country.
0:12:50 > 0:12:51Me, I love shopping.
0:12:51 > 0:12:53It's gives us a buzz to find something special.
0:12:53 > 0:12:55If you think there's a discount and money off,
0:12:55 > 0:12:57"Get in there! I've saved money."
0:12:57 > 0:12:58No, you've just spent money
0:12:58 > 0:13:01on something you've probably got at home in a drawer.
0:13:01 > 0:13:04So, Catriona, we've identified that that's what we do,
0:13:04 > 0:13:07it's comfort, it's habitual.
0:13:07 > 0:13:09How do we stop?
0:13:09 > 0:13:11Planning is the major thing, I think.
0:13:11 > 0:13:14Planning and considering what we're spending
0:13:14 > 0:13:15and what we actually need to spend.
0:13:15 > 0:13:18The moment that you buy something, if you impulse buy,
0:13:18 > 0:13:20it feels great when you buy it
0:13:20 > 0:13:23but you have to balance is that short-term
0:13:23 > 0:13:27rush of satisfaction versus the long-term,
0:13:27 > 0:13:29"Do I really want it? Do I need it?"
0:13:29 > 0:13:32Claer, we hear the term "money hacks".
0:13:32 > 0:13:33What does that actually mean?
0:13:33 > 0:13:36Well, it's an American term for, basically, a money-saving tip.
0:13:36 > 0:13:38Tip, hack, same difference.
0:13:38 > 0:13:40Do you want to hear my top ones? Tell me your best ones.
0:13:40 > 0:13:43Number one, set up a direct debit for your savings.
0:13:43 > 0:13:46It's really easy to do, payday, direct debit,
0:13:46 > 0:13:47money comes out you never notice it.
0:13:47 > 0:13:50And that money is then in your savings account, growing away.
0:13:50 > 0:13:53If you wait until the end of month thinking that will have enough money
0:13:53 > 0:13:55left for putting away, you'll never do it.
0:13:55 > 0:13:56Number two, do an audit of your house.
0:13:56 > 0:13:58See what you've got that you're not using,
0:13:58 > 0:14:00whether you could sell it online.
0:14:00 > 0:14:02You could really unlock some significant money.
0:14:02 > 0:14:05People will buy absolutely anything online.
0:14:05 > 0:14:07I had it tatty old book from the 1960s,
0:14:07 > 0:14:09which I thought was probably worthless.
0:14:09 > 0:14:12I'll look it up and see. It was worth ?8 and I managed to sell it.
0:14:12 > 0:14:14Something I was literally going to throw away
0:14:14 > 0:14:17because I thought it was too poor quality to give to a charity shop.
0:14:17 > 0:14:20So one woman's trash is another woman's treasure.
0:14:20 > 0:14:23Can I speak to you about selling online? You may.
0:14:23 > 0:14:25Because, in our last series,
0:14:25 > 0:14:28one of our experts suggested that you could sell the little
0:14:28 > 0:14:30cardboard rolls inside toilet rolls
0:14:30 > 0:14:33and, if you collect them up, there are people who want them.
0:14:33 > 0:14:34People want them for crafts.
0:14:34 > 0:14:37They might want them for hamsters or for their pet parrot to chew.
0:14:37 > 0:14:40That sort of thing. So I put it to the test.
0:14:40 > 0:14:43I saved up 100 toilet rolls.
0:14:43 > 0:14:45Did they sell? No.
0:14:46 > 0:14:50Don't laugh, don't mock me, because I've got two watchers,
0:14:50 > 0:14:51currently speaking, at the moment.
0:14:51 > 0:14:54I've got a funny feeling that this is going to snowball.
0:14:54 > 0:14:57This time next year, I could be a toilet roll millionaire.
0:14:57 > 0:14:59That sounds like a lot of effort to me.
0:14:59 > 0:15:01And, Claer, there must be easier ways to make a tenner.
0:15:01 > 0:15:04Yes. There are lots of things you can sell on eBay.
0:15:04 > 0:15:07You might think this product is broken.
0:15:07 > 0:15:09I'm going to have to put it in the bin.
0:15:09 > 0:15:11But think of its value in terms of spare parts.
0:15:11 > 0:15:16Make sure it's the brand that is listed and words like "vintage", "retro",
0:15:16 > 0:15:19they are magnets because they are the search terms that people look for.
0:15:19 > 0:15:22Think like a buyer, and then you'll be the best seller.
0:15:22 > 0:15:24Excellent advice, there, ladies.
0:15:24 > 0:15:26Thank you very much.
0:15:26 > 0:15:29It seems more and more of us are becoming creatures of the night.
0:15:29 > 0:15:31But rather than being a nightmare for retailers,
0:15:31 > 0:15:35this particular breed of shopper is something of a dream.
0:15:35 > 0:15:38And much more likely to bleed their own credit cards dry.
0:15:41 > 0:15:44It's finally come to that point in the evening
0:15:44 > 0:15:46when it's time to turn in.
0:15:46 > 0:15:48The milky drink is made,
0:15:48 > 0:15:50climb the wooden stairs to Bedfordshire
0:15:50 > 0:15:51and drift off to sleep.
0:15:54 > 0:15:55Well, that used to be the case.
0:15:58 > 0:16:01But, for many of us, it's time to shop.
0:16:01 > 0:16:02The last few years has seen a boom
0:16:02 > 0:16:04in what's known as the vampire economy.
0:16:07 > 0:16:11Karen from Manchester is one of a growing army of nocturnal shoppers.
0:16:11 > 0:16:13It's a time that she comes alive.
0:16:14 > 0:16:18I don't shop during the day, because I'm far too busy.
0:16:18 > 0:16:23I don't get time to relax, or even think about shopping,
0:16:23 > 0:16:25until at least 8:00, 8:30 in the evening.
0:16:27 > 0:16:29But Karen is so committed,
0:16:29 > 0:16:32she can hardly keep up with her night-time orders.
0:16:32 > 0:16:33I love opening packages.
0:16:33 > 0:16:37I think it's great. It's exciting to look and see what you've got.
0:16:37 > 0:16:38And remember, sometimes,
0:16:38 > 0:16:41because a lot of times I've forgotten what I ordered.
0:16:41 > 0:16:44I actually ordered this on Saturday night.
0:16:44 > 0:16:47I think it was about 11 o'clock at night.
0:16:48 > 0:16:50And, with this particular retailer,
0:16:50 > 0:16:52if you order before midnight it comes the next day.
0:16:52 > 0:16:54Which, again, is part of the thrill.
0:16:54 > 0:16:57Let's have look! Let's have a look!
0:16:57 > 0:17:00And that desire for instant gratification...
0:17:00 > 0:17:01That's my bikini top.
0:17:01 > 0:17:05..is exactly what's driving this after-dark shopping craze.
0:17:05 > 0:17:07And retailers are happy to oblige.
0:17:07 > 0:17:10Consumers want things, and they want them now.
0:17:10 > 0:17:12So, not only is it the impulse purchase
0:17:12 > 0:17:17but it is the desire to actually get the consumer material tomorrow.
0:17:17 > 0:17:20So we're seeing brands adapt to that.
0:17:21 > 0:17:24For Karen, her purchasing has gone through the roof.
0:17:24 > 0:17:27I do tend to go on a bit of a splurge.
0:17:27 > 0:17:31So I will look at a couple of retailers at a time.
0:17:31 > 0:17:36I'm swayed very easily by special offers, to be honest.
0:17:36 > 0:17:38My husband actually says that I'm a salesman's dream.
0:17:38 > 0:17:40I'm very gullible.
0:17:40 > 0:17:43Sometimes I do rein her in a little bit
0:17:43 > 0:17:47when I think she spends excessively and a lot of parcels arrive.
0:17:49 > 0:17:52Sometimes I think Karen can get carried away.
0:17:52 > 0:17:54I'm not comfortable with it.
0:17:56 > 0:17:59But Karen insists that her night-time shopping
0:17:59 > 0:18:02is just part of winding down and relaxing.
0:18:02 > 0:18:05It's my time to sit down with my laptop, or my iPad,...
0:18:07 > 0:18:11..have a flick through, see what's available, treat myself, in a way,
0:18:11 > 0:18:13because I deserve it.
0:18:15 > 0:18:17And, like many who feed the vampire economy,
0:18:17 > 0:18:20Karen is watching more than one screen at once.
0:18:21 > 0:18:25I would say that 90% of the time I am multitasking.
0:18:25 > 0:18:28I am shopping and watching the telly.
0:18:28 > 0:18:33When we shop as part of the vampire economy we very often multiscreen.
0:18:33 > 0:18:35You very often see the television on in the room
0:18:35 > 0:18:40and people will have their tablet, or laptop, and mobile phone.
0:18:40 > 0:18:42And, of course, whilst we believe
0:18:42 > 0:18:44that we've developed as human beings,
0:18:44 > 0:18:48we can't actually spread our attention equally
0:18:48 > 0:18:50over all those devices.
0:18:50 > 0:18:52And that would impact
0:18:52 > 0:18:55on the quality of our decision-making.
0:18:57 > 0:18:58And there's another thing.
0:18:58 > 0:19:00I think, when I start shopping at night,
0:19:00 > 0:19:06I am possibly weary and I am probably, yes,
0:19:06 > 0:19:09quite vulnerable to just start clicking and thinking,
0:19:09 > 0:19:12"I'll buy that, I'll buy that. That'll do."
0:19:12 > 0:19:14Rather than looking into it in more depth.
0:19:16 > 0:19:19When we shop in the evening, our guard is actually down
0:19:19 > 0:19:22and we may be asking different questions from our purchase.
0:19:22 > 0:19:24We might actually consider how something looks,
0:19:24 > 0:19:28rather than how it performs, or whether we can afford it.
0:19:28 > 0:19:31And no prizes for guessing the end result.
0:19:31 > 0:19:34That's a nice black skirt.
0:19:34 > 0:19:36I bought that one evening.
0:19:36 > 0:19:41But, I think I've got six, seven, eight black skirts.
0:19:41 > 0:19:43I'm quite ashamed now, actually.
0:19:43 > 0:19:49This is obviously why online shopping at night is so dangerous.
0:19:50 > 0:19:52Don't worry, Karen.
0:19:52 > 0:19:54It's not all down to you.
0:19:54 > 0:19:57Businesses spend a lot of time and effort trying to persuade us
0:19:57 > 0:19:59to part with our money after dark.
0:19:59 > 0:20:03Retailers are taking advantage of shopping behaviour
0:20:03 > 0:20:07by leveraging data that they have on the consumers
0:20:07 > 0:20:09and they are targeting with more relevant e-mails,
0:20:09 > 0:20:13with more relevant social media, even with mobile messaging,
0:20:13 > 0:20:17even when it's not traditionally a typical buying hour.
0:20:18 > 0:20:21And they're launching marketing campaigns
0:20:21 > 0:20:23to coincide with top-rated evening telly.
0:20:23 > 0:20:26You've got more and more of the retailers
0:20:26 > 0:20:28that are sending targeted,
0:20:28 > 0:20:32relevant information off of the heels of popular things
0:20:32 > 0:20:35like Strictly Come Dancing or Bake Off.
0:20:35 > 0:20:40You're seeing a rise in kitchenware purchases after an episode.
0:20:40 > 0:20:43I get bombarded all the time by different retailers,
0:20:43 > 0:20:46even if I've not shopped with them online.
0:20:46 > 0:20:52They get my e-mail address and then I'm targeted with enticements,
0:20:52 > 0:20:54inducements to start shopping with them.
0:20:56 > 0:20:57Instant delivery,
0:20:57 > 0:21:01loads of choice and special deals targeted directly at you
0:21:01 > 0:21:04all add up to a shopping experience that's difficult to resist.
0:21:04 > 0:21:08And there's one more thing that makes suckers of vampire shoppers.
0:21:08 > 0:21:13A partner who might usually advise us might actually be asleep.
0:21:13 > 0:21:16The children who we buy something for may not have an input.
0:21:16 > 0:21:20We may not have a friend, there, who I can ask, "Do I look big in this?"
0:21:20 > 0:21:23And who can kind of give us this advice?
0:21:24 > 0:21:27It's a very, very different way of making decisions.
0:21:28 > 0:21:29But, despite all this,
0:21:29 > 0:21:34Karen is determined to continue hunting out those after-dark offers.
0:21:34 > 0:21:38I have never tried not to be a vampire shopper
0:21:38 > 0:21:42but I would never intend to stop, I don't want to stop.
0:21:42 > 0:21:44But, if you do want to avoid waking up to a hefty hole
0:21:44 > 0:21:47in your bank balance, here's some advice.
0:21:47 > 0:21:51The one bit of advice that I would give to consumers
0:21:51 > 0:21:52is not checking out.
0:21:53 > 0:21:57You may well make your choice but then decide,
0:21:57 > 0:22:00I'm not going to check out until tomorrow morning.
0:22:00 > 0:22:05If you are habitually somebody who spends and overspends at that
0:22:05 > 0:22:09particular time, perhaps consciously do something different.
0:22:09 > 0:22:10Go for a walk.
0:22:11 > 0:22:12And if none of that works,
0:22:12 > 0:22:16there's one foolproof way of curbing your night-time shopping.
0:22:16 > 0:22:20Close your tablets, switch off the lights and just go to sleep.
0:22:20 > 0:22:21Night-night.
0:22:24 > 0:22:26And after all that spending in the dead of night,
0:22:26 > 0:22:30maybe we should all think about how we can use the daylight hours
0:22:30 > 0:22:31to make some extra cash.
0:22:31 > 0:22:34That's exactly what Diane and Francesca do.
0:22:34 > 0:22:37I'm going to start with you, Francesca.
0:22:37 > 0:22:40A lot of people feel that they are only earning enough to cover the
0:22:40 > 0:22:41bills in their regular job.
0:22:41 > 0:22:43So tell me about your extra line of work.
0:22:43 > 0:22:46So, the extra jobs that I do from home is I do dog boarding,
0:22:46 > 0:22:48where I take in dogs from people going on holiday,
0:22:48 > 0:22:49to earn extra cash.
0:22:49 > 0:22:52So you get the beauty of looking after people's dogs
0:22:52 > 0:22:53and you're getting paid for it? Yes.
0:22:53 > 0:22:55I love it. It's a really good way of earning money, I think,
0:22:55 > 0:22:57because it's so much fun.
0:22:57 > 0:22:59And then there's things like blogging, so I have a blog,
0:22:59 > 0:23:01From Pennies To Pounds.
0:23:01 > 0:23:04This month, I'm due to make about ?1,000 from that.
0:23:04 > 0:23:05On top of your extra job?
0:23:05 > 0:23:08Gordon Bennett, it's a lot of money, isn't it? It is. Yes, it's good.
0:23:08 > 0:23:12Diane, what about you? Tell me about some of the things that you've done.
0:23:12 > 0:23:15Mystery dining. Online surveys.
0:23:15 > 0:23:18Can I be nosy and ask roughly what you're earning out of it, Diane?
0:23:18 > 0:23:21Varies. Like last year might have been
0:23:21 > 0:23:24just about ?1,500 in vouchers and cash.
0:23:24 > 0:23:26Let's look on the flip side of it.
0:23:26 > 0:23:28You're earning about 1,500 quid in vouchers and money
0:23:28 > 0:23:31and everything else, but you're also eating out free.
0:23:31 > 0:23:33You're testing products which, most of the time, you get to keep.
0:23:33 > 0:23:36Yes. It's money for nothing, really, isn't it?
0:23:36 > 0:23:39Why did you get into it and what difference has made to your life?
0:23:39 > 0:23:43I got into it because I found myself in some debt, consumer debt.
0:23:43 > 0:23:46I realised that I really needed to make some extra money from home
0:23:46 > 0:23:48in order to pay it off.
0:23:48 > 0:23:51So I started to have a look around at what I could find
0:23:51 > 0:23:53and I found lots of blogs where people are making money
0:23:53 > 0:23:55so I started my own blog.
0:23:55 > 0:23:58So, by blogging, writing about how to save money,
0:23:58 > 0:23:59you can actually earn money?
0:23:59 > 0:24:01That's right. OK.
0:24:01 > 0:24:04So I paid off my debt last month, and it took about a year.
0:24:04 > 0:24:07Had it not been for all this extra income, you'd still be in debt?
0:24:07 > 0:24:09Yes, I'd say so, yes. So it's paid dividends for you?
0:24:09 > 0:24:11Definitely. Yes.
0:24:11 > 0:24:14A lot of people right now will be looking at this and thinking,
0:24:14 > 0:24:16"I want to do that, I want to look after dogs,
0:24:16 > 0:24:18"I want to go mystery dining."
0:24:18 > 0:24:21Where do they go to get the information from?
0:24:21 > 0:24:24What should they be careful of, as well?
0:24:24 > 0:24:29Go online and, in a search engine, put in customer survey sites.
0:24:29 > 0:24:33That'll bring up some sites, but be careful of scams.
0:24:33 > 0:24:34Research. Always do your research.
0:24:34 > 0:24:36So what you're saying is that,
0:24:36 > 0:24:40get some reviews on the company that you're about to get the work from.
0:24:40 > 0:24:43There's some really great ideas there.
0:24:43 > 0:24:44Thanks for your time.
0:24:44 > 0:24:45Good luck to you both. BOTH: Thank you.
0:24:47 > 0:24:50Here at Halifax Market I think we would all agree that those are great
0:24:50 > 0:24:53ideas for making a little extra cash,
0:24:53 > 0:24:56particularly as you never know when you might need it.
0:24:56 > 0:24:59Claer, I want to talk to you about savings, or the lack of them.
0:24:59 > 0:25:03Now reports suggest that half of working-class families and one third
0:25:03 > 0:25:08of middle-class households would have to borrow money to pay for a
0:25:08 > 0:25:10?500 bill. That's quite alarming.
0:25:10 > 0:25:14I do think it's alarming, but it doesn't surprise me, because,
0:25:14 > 0:25:18if you look at what's happening in the economy in the UK at the moment,
0:25:18 > 0:25:20wages are not going up.
0:25:20 > 0:25:22They're stubbornly stuck.
0:25:22 > 0:25:25But the cost of living, inflation, is rising.
0:25:25 > 0:25:30We are feeling the pinch and it's harder to make regular savings.
0:25:30 > 0:25:32Of course, then a big, unexpected bill comes around the corner
0:25:32 > 0:25:36and lo and behold, you don't have enough money to deal with that.
0:25:36 > 0:25:39So your only alternative is to get into debt.
0:25:39 > 0:25:42Now, debt is plentiful but it's expensive, often.
0:25:42 > 0:25:45If you don't have a good credit rating then you'll really,
0:25:45 > 0:25:48really be fleeced. What you need to do is look at the cost of that debt,
0:25:48 > 0:25:51whether it's a payday loan, whether it's an unauthorised overdraft,
0:25:51 > 0:25:54an authorised overdraft, which would be much cheaper,
0:25:54 > 0:25:57or even using a credit card to paper over the cracks.
0:25:57 > 0:26:00So long as you understand the cost and understand the repayments
0:26:00 > 0:26:03then that's the knowledge that you need to make the decision.
0:26:03 > 0:26:05OK, Claer, let's go speak to the people in Halifax.
0:26:05 > 0:26:06Sure.
0:26:10 > 0:26:14Would it surprise you to know that a lot of people in the UK don't have
0:26:14 > 0:26:16more than ?100 in their savings? Wouldn't surprise me, no.
0:26:16 > 0:26:18Things just cost too much nowadays, don't they?
0:26:18 > 0:26:20The cost of living, everything.
0:26:20 > 0:26:22It's hard to save.
0:26:22 > 0:26:26If a ?500 bill were to land on your doorstep today,
0:26:26 > 0:26:28would you be going into panic? Yes.
0:26:28 > 0:26:30Yes, definitely. Yeah.
0:26:30 > 0:26:32Do you ever look at the bank interest?
0:26:32 > 0:26:37No. No brass in. All I think is, "Have I got it with me?"
0:26:37 > 0:26:39He's got a few notes in there.
0:26:39 > 0:26:43So, how can you pay your bills if you haven't got a bank account?
0:26:43 > 0:26:46Just get me brass and pay it.
0:26:46 > 0:26:48In the bank? You go in with cash to and pay over the counter?
0:26:48 > 0:26:49Yeah, oh, yeah.
0:26:49 > 0:26:54Does it surprise you to hear that the average household probably
0:26:54 > 0:26:55doesn't even have ?100 savings?
0:26:57 > 0:26:59I'd be one, I'd be in that category.
0:26:59 > 0:27:03I live every day at a time and if I've got money
0:27:03 > 0:27:05at the end of the week, then we can have a treat.
0:27:05 > 0:27:09What would you do if you got an unexpected bill for, say, ?500?
0:27:09 > 0:27:11Panic. Yeah.
0:27:11 > 0:27:15I always make sure I've got a few hundred quid, if I need it.
0:27:15 > 0:27:18If the telly breaks down or the washer breaks down.
0:27:18 > 0:27:20I've always got money there to cover that.
0:27:20 > 0:27:23What advice would you give to the younger generation,
0:27:23 > 0:27:26who want things now, and they want to buy things on credit?
0:27:26 > 0:27:28You can't get through to them.
0:27:28 > 0:27:30You can't make them understand until it comes to them.
0:27:33 > 0:27:36Earlier on we met a couple from Leicestershire
0:27:36 > 0:27:38who just couldn't seem to stop overspending,
0:27:38 > 0:27:41despite desperately trying to save up enough money
0:27:41 > 0:27:43to care for a relative. Let's see how they got on.
0:27:46 > 0:27:48Paul and Kim Welsh have a dream -
0:27:48 > 0:27:51to save enough money to build an extension to their house,
0:27:51 > 0:27:53and there's a good reason why they need it.
0:27:56 > 0:28:00Kim's brother has an eye disease and could lose his sight,
0:28:00 > 0:28:03so being close to Kim and her family is something he really needs.
0:28:04 > 0:28:06Currently we've got a garage.
0:28:06 > 0:28:07We would knock the garage down
0:28:07 > 0:28:09and we would build a self-contained house.
0:28:09 > 0:28:13So Uncle Alex would move in and be independent but then also have the
0:28:13 > 0:28:16support of us if he needed.
0:28:16 > 0:28:20Money expert Sarah Pennells has already found ways to rein in their
0:28:20 > 0:28:23spending by curbing their food and clothes shopping.
0:28:23 > 0:28:25You are probably the only family I know
0:28:25 > 0:28:28who actually have a burger mortgage. That's crazy.
0:28:28 > 0:28:30Take cash out at the beginning of the week.
0:28:30 > 0:28:32And when the money's gone, you stop spending it.
0:28:33 > 0:28:38Spurred on by the ?7,300 savings Sarah's made them so far,
0:28:38 > 0:28:41they've invited over builder Andrew Turner
0:28:41 > 0:28:44to find out exactly how much the extension will cost.
0:28:44 > 0:28:46Looking at two bedrooms, kitchen, bathroom,
0:28:46 > 0:28:49so my idea is two bedrooms at the back.
0:28:49 > 0:28:51Then you've got your hallway and kitchen and living room.
0:28:51 > 0:28:53Four metres by seven metres.
0:28:56 > 0:28:59So after a few measurements, what's the damage?
0:29:00 > 0:29:06A rough estimate, you are between ?40-45,000.
0:29:06 > 0:29:07OK.
0:29:08 > 0:29:11That's a bit more than we was sort of expecting, wasn't it?
0:29:11 > 0:29:13A bit, yeah.
0:29:13 > 0:29:14Hmmm. Food for thought.
0:29:14 > 0:29:16Definitely.
0:29:16 > 0:29:20Better get saving, Mr Welsh. I'd better get working double-time.
0:29:21 > 0:29:24Now that Paul and Kim have a better idea of the
0:29:24 > 0:29:26amount they need to raise,
0:29:26 > 0:29:29Sarah's back to help advise on how they can do it,
0:29:29 > 0:29:32and joining her is mortgage broker David Hollingsworth.
0:29:32 > 0:29:35He starts off by reviewing their current mortgage payments,
0:29:35 > 0:29:37which have just increased.
0:29:37 > 0:29:40Presumably it's one of your biggest outgoings.
0:29:40 > 0:29:42How much are you paying there?
0:29:43 > 0:29:45?430, I think, now.
0:29:45 > 0:29:50Last year when I was on my deal, it was more like ?330, ?340.
0:29:50 > 0:29:51So it's nearly ?100.
0:29:51 > 0:29:56That's a big jump. The reason that's happened is your original deal will
0:29:56 > 0:29:59have come to an end, you've reverted onto the lender's
0:29:59 > 0:30:01standard variable rate as they call it.
0:30:01 > 0:30:04What it means is a more expensive mortgage.
0:30:04 > 0:30:07So you really need to start shopping around.
0:30:07 > 0:30:10Paul and Kim have been caught out when their current deal expired
0:30:10 > 0:30:13and are now paying over the odds for their mortgage.
0:30:13 > 0:30:17It's easy to ignore our mortgage once it's set up, but if you do,
0:30:17 > 0:30:20you could be throwing money away on an expensive rate when there are
0:30:20 > 0:30:22better options available.
0:30:22 > 0:30:26And David has just found a brand-new deal for Paul and Kim.
0:30:26 > 0:30:32So, all in all, then, how much do you think Kim and Paul could save,
0:30:32 > 0:30:34if they were to switch today?
0:30:34 > 0:30:37I think that could be taking your, annual outgoings,
0:30:37 > 0:30:40of what is about ?5,000 a year at the moment,
0:30:40 > 0:30:44I think we could be shaving a good ?1,200 or more from that.
0:30:44 > 0:30:46That's a lot of money, isn't it?
0:30:46 > 0:30:48Too right. By switching,
0:30:48 > 0:30:50Paul and Kim could be stashing away
0:30:50 > 0:30:53?1,200 a year, making the extension a step closer.
0:30:53 > 0:30:56?100 a month for us is a lot.
0:30:56 > 0:30:58And if we put it in a separate pot,
0:30:58 > 0:31:01and I can see at building up and we know what the end result is, then,
0:31:01 > 0:31:02that will make a huge difference.
0:31:02 > 0:31:05There's still some more that we can do. There's still some more savings,
0:31:05 > 0:31:07but I think we're on the way now, aren't we?
0:31:07 > 0:31:08Yeah, definitely. It's exciting.
0:31:10 > 0:31:13Although Paul and Kim want to avoid borrowing more money on their
0:31:13 > 0:31:14mortgage if they can help it,
0:31:14 > 0:31:18Sarah has a great tip for them if they decide to borrow a little to
0:31:18 > 0:31:19help finance the extension.
0:31:19 > 0:31:22And it's all to do with making them
0:31:22 > 0:31:24an attractive proposition to lenders.
0:31:24 > 0:31:27You said you were a bit worried about
0:31:27 > 0:31:29your credit rating not being brilliant.
0:31:29 > 0:31:31It's not very high, maybe that's because
0:31:31 > 0:31:33I've not done much with my credit
0:31:33 > 0:31:35and then also with Paul, I've looked at Paul's
0:31:35 > 0:31:37and you've not got any history, have you?
0:31:37 > 0:31:40So it is one of these odd things in terms of,
0:31:40 > 0:31:42if you haven't had credit cards,
0:31:42 > 0:31:46if you've just lived on your savings and the money in the bank account,
0:31:46 > 0:31:48oddly, David, you're not always
0:31:48 > 0:31:50looked on in the best light by the lenders.
0:31:50 > 0:31:54Lenders are looking to get a feel for what you look like,
0:31:54 > 0:31:58what your credit profile looks like and, if they can't see anything,
0:31:58 > 0:32:00that gives them a bit of a problem,
0:32:00 > 0:32:03so if you have credit cards that have been conducted well,
0:32:03 > 0:32:05that might help you a little bit.
0:32:07 > 0:32:09Top-dollar advice, David.
0:32:09 > 0:32:11And Kim and Paul owe you a debt of gratitude.
0:32:12 > 0:32:15Time for Sarah to take this couple on another leg of
0:32:15 > 0:32:18her money-saving journey. She's worked out that Kim and Paul
0:32:18 > 0:32:22are spending a small fortune each month on mini breaks.
0:32:22 > 0:32:26So, at the moment you do spend a fair bit on your weekends away.
0:32:26 > 0:32:27What would you spend?
0:32:27 > 0:32:30Anything from about ?200 to probably about ?500,
0:32:30 > 0:32:32and that's probably once a month.
0:32:32 > 0:32:33Wow, that's nice.
0:32:33 > 0:32:34Let me get my bags.
0:32:34 > 0:32:37And how do you choose where you end up? And how much you pay?
0:32:37 > 0:32:39Just look on the internet, basically.
0:32:39 > 0:32:41Look for the best deal out there.
0:32:41 > 0:32:42In the past year,
0:32:42 > 0:32:46this travel-mad couple racked up many miles on their short breaks,
0:32:46 > 0:32:49which put a great big dent in their annual budget.
0:32:49 > 0:32:56So you said that you spend anything between ?200 and ?500 a month on
0:32:56 > 0:32:58going away. Yeah.
0:32:59 > 0:33:04And that's between ?2,400 and ?6,000 a year.
0:33:05 > 0:33:08Wow, that's a lot. That's like a family holiday.
0:33:08 > 0:33:09That is two family holidays.
0:33:09 > 0:33:12Does it feel like it's that much?
0:33:12 > 0:33:14You book in advance, and it's paid for.
0:33:14 > 0:33:16So you book it one month, say,
0:33:16 > 0:33:18then you're spending the money the next month
0:33:18 > 0:33:19when you actually go away,
0:33:19 > 0:33:23so you're never actually adding up the whole cost of each break. OK.
0:33:25 > 0:33:28Managing your budget means making choices.
0:33:28 > 0:33:31Either cutting back or looking for cheaper alternatives.
0:33:31 > 0:33:34Sarah's keen for Kim and Paul to think of other options
0:33:34 > 0:33:36when it comes to planning their me time.
0:33:37 > 0:33:42Something like this, this crazy golf, it's just ?4 for a session,
0:33:42 > 0:33:44so it's really cheap, really good value.
0:33:44 > 0:33:48And there are loads of other things that you can do as well,
0:33:48 > 0:33:50salsa dance classes, whatever takes your fancy.
0:33:50 > 0:33:52Kim's not got no rhythm, so...
0:33:52 > 0:33:55Paul's got the rhythm. He can dance.
0:33:55 > 0:33:56I'm not a very good dancer.
0:33:56 > 0:33:57Watch it, Paul!
0:33:57 > 0:33:59Well, there you go, you can learn together.
0:33:59 > 0:34:01You can learn a new skill.
0:34:01 > 0:34:03I think the three key things are, firstly,
0:34:03 > 0:34:07to look for cheap or free things you can do on your doorstep.
0:34:07 > 0:34:09Secondly, if you are going to go away,
0:34:09 > 0:34:13go away once every other month if you can, rather than once a month,
0:34:13 > 0:34:16and thirdly, look at the overall cost so that
0:34:16 > 0:34:19then you know exactly what you're spending and what that means for
0:34:19 > 0:34:21your spending the rest of the year.
0:34:21 > 0:34:23There is just one other tip, as well,
0:34:23 > 0:34:26which means that you can still go away, which is house-sitting.
0:34:26 > 0:34:29House-sitting? What's that about?
0:34:29 > 0:34:32So, when someone goes away on holiday, you move in,
0:34:32 > 0:34:35water their plants, look after the house, make sure it looks lived in,
0:34:35 > 0:34:39but what you get is a really low cost or free,
0:34:39 > 0:34:43depending where it is, break. Yeah, that does sound good.
0:34:43 > 0:34:44Be interesting, wouldn't it?
0:34:44 > 0:34:45Definitely.
0:34:46 > 0:34:51Wow. If they swapped hotel stays for house-sits and took advantage of
0:34:51 > 0:34:54free opportunities on their doorstep,
0:34:54 > 0:34:55they could save
0:34:55 > 0:34:574,800 smackers a year.
0:34:57 > 0:35:02With another big saving delivered, Sarah's visit is about to end.
0:35:02 > 0:35:05But, before she goes, Pennells has one last bit of advice.
0:35:06 > 0:35:10We're talking about saving and how much we're going to help you to save
0:35:10 > 0:35:13but there is one thing that I just want to talk to you about.
0:35:13 > 0:35:16It's actually not about saving money, it's about
0:35:16 > 0:35:17spending a bit of money.
0:35:17 > 0:35:20What?! Sarah wants to spend money?
0:35:20 > 0:35:21This must be important!
0:35:21 > 0:35:24I've noticed that you don't have home insurance
0:35:24 > 0:35:25or life insurance, do you?
0:35:25 > 0:35:27We don't, no.
0:35:27 > 0:35:28I've never thought about it.
0:35:28 > 0:35:30I don't feel like I'm going anywhere, yet.
0:35:30 > 0:35:33I feel young still. You are young.
0:35:33 > 0:35:36We've got to be serious. We've got four children.
0:35:36 > 0:35:38We need to be prepared, if the worst was to happen.
0:35:38 > 0:35:41I suppose you never know what's round the corner, do you?
0:35:41 > 0:35:44Unfortunately, you don't. Of course we all want to think that we're
0:35:44 > 0:35:47going to live forever, certainly for a long time,
0:35:47 > 0:35:49but you don't actually know what life's going to throw at you,
0:35:49 > 0:35:53so you need to have plans in place so that,
0:35:53 > 0:35:55if the worst were to happen,
0:35:55 > 0:35:57Kim or you wasn't left with a mortgage
0:35:57 > 0:36:00that you couldn't afford to pay... And a big massive debt.
0:36:00 > 0:36:03..once you have to look after children,
0:36:03 > 0:36:06so I'd really recommend that you talk to your broker,
0:36:06 > 0:36:10have a look at comparison sites and find life insurance
0:36:10 > 0:36:13and the same with home insurance.
0:36:13 > 0:36:17Unfortunately, houses do get damaged by fire and floods,
0:36:17 > 0:36:19nasty things happen.
0:36:19 > 0:36:20And, in the worst cases,
0:36:20 > 0:36:24it could actually mean you would have to start from scratch.
0:36:24 > 0:36:28That is a sobering piece of advice which will set Paul and Kim up with
0:36:28 > 0:36:30a more secure financial future,
0:36:30 > 0:36:33particularly if they are going to be looking after brother Alex.
0:36:33 > 0:36:38A reputable comparison site or insurance broker is a good place to
0:36:38 > 0:36:40start, where you will be able to see the cover and the price
0:36:40 > 0:36:43that works best for you.
0:36:43 > 0:36:46It is something that we need to sort out ASAP, really. Yeah.
0:36:46 > 0:36:48Time for Sarah to go.
0:36:48 > 0:36:51From now on, Paul and Kim will be on their own,
0:36:51 > 0:36:55but if they follow our advice they could save
0:36:55 > 0:36:59a whopping ?4,800 a year on food, ?2,500 on clothes,
0:36:59 > 0:37:05?1,200 on their mortgage and another ?4,800 on short breaks,
0:37:05 > 0:37:10making a grand total of ?13,300.
0:37:10 > 0:37:14That extension and a secure home for their kids' future is now
0:37:14 > 0:37:16one big step closer.
0:37:16 > 0:37:21Well, meeting Sarah and the whole thing has shown us a way to start
0:37:21 > 0:37:24focusing to save some money, basically.
0:37:25 > 0:37:27Like I've said to Kim plenty of times,
0:37:27 > 0:37:30if we save hard, we can do things.
0:37:30 > 0:37:32It's all about saving.
0:37:32 > 0:37:35Yeah, I think it's made us realise that it's got to stop being a
0:37:35 > 0:37:38far off dream. We don't know what's going to happen with Alex.
0:37:38 > 0:37:41We don't know how long he's got his eyesight for at the minute,
0:37:41 > 0:37:43and the quicker that building's up,
0:37:43 > 0:37:46the quicker we are all secure and happy and he's safe.
0:37:46 > 0:37:47Yeah, definitely.
0:37:53 > 0:37:56And Kim and Paul are here along with personal finance expert
0:37:56 > 0:38:00Claer Barrett. First off, you two, you both work very hard,
0:38:00 > 0:38:03six days a week, both of you,
0:38:03 > 0:38:07and so, no-one could begrudge you spending a little on yourselves.
0:38:07 > 0:38:09And on the kids. And on takeaways.
0:38:09 > 0:38:13And on food. But there's a point where you have to say, "Whoa."
0:38:13 > 0:38:16And I think this is it. Definitely. It's our wake-up call.
0:38:16 > 0:38:20We did work hard, so we thought it was OK to do what we were doing,
0:38:20 > 0:38:22but probably not very practical. Think about the future.
0:38:22 > 0:38:25What's the biggest lesson you think you've learned?
0:38:25 > 0:38:28It would have to be the burger mortgage.
0:38:28 > 0:38:33The amount we spend on takeaways, meals out, rubbish.
0:38:33 > 0:38:36To see that in black and... Well, in burgers...
0:38:36 > 0:38:38It was a real eye-opener for me.
0:38:38 > 0:38:41In the film, obviously we spoke about Kim and Paul's mortgage and
0:38:41 > 0:38:44you obviously weren't on the best one out there for you at the moment.
0:38:44 > 0:38:45What would be your advice?
0:38:45 > 0:38:48I know that you've been hunting around to find the best rates.
0:38:48 > 0:38:50That's step one. Very good.
0:38:50 > 0:38:54But, when you actually find the rate and you actually want to apply for
0:38:54 > 0:38:57that deal, don't forget, it won't be an instant process.
0:38:57 > 0:39:00It could take as long as two or three months for you to get that
0:39:00 > 0:39:03remortgage deal and, in the meantime,
0:39:03 > 0:39:04get your finances in order.
0:39:04 > 0:39:07There are really tough rules now about affordability.
0:39:07 > 0:39:10The lender has to be satisfied that the money they are lending you is
0:39:10 > 0:39:13something that you're going to be able to afford to pay back,
0:39:13 > 0:39:16so they will want to scrutinise your bank statements.
0:39:16 > 0:39:19They will want to see income and expenditure
0:39:19 > 0:39:22being spent in a managed, even and orderly manner.
0:39:22 > 0:39:24They won't want to see any big spikes going up or down,
0:39:24 > 0:39:27because that could mean, in the future you might not have enough
0:39:27 > 0:39:29money left at the end of the month to pay back
0:39:29 > 0:39:31the bigger loan that you want to take on.
0:39:31 > 0:39:34To be honest, Clare I find it a little bit confusing
0:39:34 > 0:39:37and maybe contradictory that we talk about
0:39:37 > 0:39:40make sure you use your cash, make sure you only
0:39:40 > 0:39:42access what's in your pocket,
0:39:42 > 0:39:46but here we are encouraging Paul to have a credit card.
0:39:46 > 0:39:49Your problem is that you have what's known in the industry
0:39:49 > 0:39:51as a thin credit file.
0:39:51 > 0:39:53Normally, being thin is a good thing but having a thin credit file is,
0:39:53 > 0:39:56unfortunately, a bad thing because it means that there's not enough
0:39:56 > 0:40:00information for the people who are giving credit to assess whether
0:40:00 > 0:40:01you'd be a good risk or a bad risk,
0:40:01 > 0:40:03so they have to err on the side of caution
0:40:03 > 0:40:05and charge you a lot of money.
0:40:05 > 0:40:06So if you can get a credit card and borrow
0:40:06 > 0:40:08a bit of money every month and
0:40:08 > 0:40:09pay it back at the end of the month,
0:40:09 > 0:40:12then you're showing them that you are a responsible borrower...
0:40:12 > 0:40:14Now, you two love a bargain, don't you?
0:40:14 > 0:40:16I do. Yes, you love a bargain.
0:40:16 > 0:40:19But bargains aren't always what they seem, are they?
0:40:19 > 0:40:23Absolutely. That 70% off you see on a website,
0:40:23 > 0:40:26maybe when you're doing your vampire shopping in the middle of the night,
0:40:26 > 0:40:28and, you think, "Ooh!" You focus on the discount.
0:40:28 > 0:40:31Now, I know that Kim and Paul like to go and stay in hotels.
0:40:31 > 0:40:35When I go on online hotel booking sites I am shocked, frankly,
0:40:35 > 0:40:38by the level of sales pressure that they put on you by saying,
0:40:38 > 0:40:40"47 other people are looking at this room.
0:40:40 > 0:40:41"There are only three rooms left.
0:40:41 > 0:40:43"You'd better book, you'd better book."
0:40:43 > 0:40:45I find it really difficult to resist.
0:40:45 > 0:40:48Kim, that's the sort of thing I believe you probably get swayed by,
0:40:48 > 0:40:50isn't it? That really clever marketing,
0:40:50 > 0:40:52telling you how the rooms are going quickly and
0:40:52 > 0:40:54how many people are looking at it.
0:40:54 > 0:40:56Yes. Definitely. Sat at home on my own of an evening, Paul's at work
0:40:56 > 0:40:58and I think, "Oh, that's great.
0:40:58 > 0:41:00"Quick, there's only one room left, I need to book it,
0:41:00 > 0:41:03"I don't need to discuss it." But we've decided now that,
0:41:03 > 0:41:06before I do anything or buy anything, and the same with Paul,
0:41:06 > 0:41:08we'll have that conversation. We said in the film that
0:41:08 > 0:41:11we need to communicate more about our spending habits.
0:41:11 > 0:41:13With all the good advice you've been given,
0:41:13 > 0:41:16do you feel more confident about getting Alex in that extension?
0:41:17 > 0:41:18Yeah. Yeah, definitely.
0:41:18 > 0:41:21We have talked endlessly since filming.
0:41:21 > 0:41:24We've decided it's got to happen this year and we're putting plans in
0:41:24 > 0:41:28place for it to happen, so watch this space.
0:41:28 > 0:41:29Well done, both of you. Keep up the good work.
0:41:29 > 0:41:31And keep saving.
0:41:31 > 0:41:32It's all about saving.
0:41:32 > 0:41:35And if you've got something you're saving up for and you'd like help
0:41:35 > 0:41:37from one of our money-saving experts, e-mail us...
0:41:40 > 0:41:42But if you are after some simple budgeting tips,
0:41:42 > 0:41:44here's a good place to start.
0:41:46 > 0:41:50Our website has everything you need to sort out your spending.
0:41:50 > 0:41:53We've teamed up with the Money Advice Service to bring you
0:41:53 > 0:41:56easy-to-use money-saving tools to plan your budget,
0:41:56 > 0:41:59calculate the cost of your car or credit cards,
0:41:59 > 0:42:02and give your money a complete health check.
0:42:02 > 0:42:04Download them at...
0:42:11 > 0:42:14And Claer is still with us to answer some of your questions.
0:42:14 > 0:42:17Lauren wants to know, what's the best plan for saving for the future?
0:42:17 > 0:42:20Is it a pension or is it property?
0:42:20 > 0:42:22Well, actually, it's both.
0:42:22 > 0:42:25Lots of young people especially think they have to save up to get on
0:42:25 > 0:42:28the property ladder and that they shouldn't worry about a pension,
0:42:28 > 0:42:31they should defer that until they get older, put everything into the
0:42:31 > 0:42:34plan for the house, but that's actually the wrong thing to do,
0:42:34 > 0:42:37because it's the pension contributions that you make
0:42:37 > 0:42:40when you're really young that have got the most time to grow
0:42:40 > 0:42:44and compound away and become even more valuable when you're old,
0:42:44 > 0:42:48so you definitely shouldn't put off starting a pension because you're
0:42:48 > 0:42:51saving to get onto the property ladder, even if you can only
0:42:51 > 0:42:53pay in a small amount, it will really reap the rewards over time.
0:42:53 > 0:42:58Danielle says, I've been with my bank for 15 years and I feel loyal
0:42:58 > 0:43:01to them. Is it bad to stick with the same bank for so long?
0:43:01 > 0:43:02Well, many people do.
0:43:02 > 0:43:06In fact, one survey says that people are more likely to get divorced from
0:43:06 > 0:43:10their partner than they are to split up with their bank, but,
0:43:10 > 0:43:12like any relationship, it's all about give and take.
0:43:12 > 0:43:14What's your bank giving you?
0:43:14 > 0:43:16Are they giving you a decent rate of interest?
0:43:16 > 0:43:18What are they taking from you?
0:43:18 > 0:43:21Are they charging you a high fee, for example, for your overdraft?
0:43:21 > 0:43:24These of all the things that you've got to look into if you are
0:43:24 > 0:43:26considering changing your bank account.
0:43:26 > 0:43:28Also, you might want to make some extra money.
0:43:28 > 0:43:32Many accounts will offer you ?100 or more if you switch
0:43:32 > 0:43:36within a certain time frame to them and others have got other deals,
0:43:36 > 0:43:40like a great mobile banking app that can help you track your spending.
0:43:40 > 0:43:41So these are all things to consider.
0:43:41 > 0:43:43Thanks a lot, Claer, some great advice, there.
0:43:43 > 0:43:45And thank you to all our guests today as well.
0:43:45 > 0:43:47And not forgetting you at home, too.
0:43:47 > 0:43:50We hope you've picked up some more money-saving nuggets to help your
0:43:50 > 0:43:52cash go further. Until the next time...
0:43:52 > 0:43:54Cheerio. Bye-bye.
0:44:25 > 0:44:28Join us live, and follow the world's wildest animals...
0:44:30 > 0:44:33..across the most challenging of terrains...