Looks like you've set a goal to buy a home. Awesome. Buying a home is a big deal. A Multiply plan can help you make it happen quicker and easier.
Great question, glad you asked. Here's all the thorny issues that your plan can help you with.
It's good to know in advance what you're going to be able to afford. Your plan can calculate how much you'll be able to borrow, plus how much you'll be able to save, and give you an estimate for what you can afford.
Your plan will give you a precise countdown for your homebuying goal, based on what you're saving each month. It's not set in stone, though. Want to set your sights on a lower property value? Decided to cut back on spending so you can save a little more? Watch that countdown fall.
Your plan gives you tailored recommendations for savings accounts, based on our comprehensive and up-to-the-minute knowledge of market. If you're stashing away five figures for a deposit, small differences in interest rate soon make a difference. Plus, we'll tell you about any extra cash that's up for grabs, such as the Lifetime ISA bonus.
How much are you currently saving each month? Is that the right amount? It's hard to know. Unless you've got a financial advice app sitting in your pocket, that is. We can tell you exactly how to allocate your money each month, including how much to put towards your home.
The secret to hitting long-term goals? Sticking with small weekly and monthly habits. Your Multiply plan will help you stay on track with saving up for your deposit. Keep your eyes on the prize and make it happen.
","url":"https://multiply.ghost.io/how-a-plan-can-help-you-buy-a-home/","uuid":"8eb59b79-4ca3-4cd4-81ce-1997bddbca69","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5e21bbb38cab8c00449bbd73"}},{"node":{"id":"Ghost__Post__5e1766145abbca003800a7af","title":"Top savings methods from around the world","slug":"top-savings-methods-from-around-the-world","featured":false,"feature_image":"https://images.unsplash.com/photo-1502920514313-52581002a659?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"How are you with savings? Are you the one in four UK adults that has none? Or maybe the one in ten that spend more than they earn on the regular.","custom_excerpt":"How are you with savings? Are you the one in four UK adults that has none? Or maybe the one in ten that spend more than they earn on the regular.","created_at_pretty":"09 January, 2020","published_at_pretty":"09 January, 2020","updated_at_pretty":"09 January, 2020","created_at":"2020-01-09T17:42:44.000+00:00","published_at":"2020-01-09T17:45:35.000+00:00","updated_at":"2020-01-09T17:53:34.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"How are you with savings? Are you the one in four UK adults that has none? Or\nmaybe the one in ten that spend more than they earn on the regular. We might be\ngood at a few things, like football, occasionally, but the rest of the world\nseems to have us beat for saving that hard-earned cash. Instead of being jealous\nof how those in other parts of the world save, we thought we’d try to learn from\nthem. After all, imitation is the greatest form of international flattery.\n\n\nCheck out how other countries hoard their yen, euros, and pesos for saving\ninspiration:\n\n\nChina: Strong savers\n\nTo put into context just how strong: China was top of the world-saving charts\nback in 2017 when its gross national savings (individual, government and\nbusiness savings) was a tidy 48.3% of its gross domestic product (GDP). China\nmay have slipped to 3rd place for 2019 (behind Singapore and Suriname) but they\nstill have strong saving habits.\n\n\nThe key? An ingrained habit of saving even more than the recommended amount.\nBack in 2014 China’s household savings rate was 37% of their disposable income,\nwhere most budgeting practices recommend 20% of income for savings.\n\n\nGermany: Cash over credit\n\nWhile a lot of countries are increasingly shunning physical cash in favour of\ncontactless transactions, Germany consistently bucks this trend. So much so that\nthey regularly use one of the world’s most valuable currency denominations, the\n500 euro note.\n\n\nUsing cash over card makes it much easier to keep track of your spending and has\na knock-on effect with savings.\n\n\nJapan: Cash waaay over credit\n\nThe Japanese revere cash even more than the Germans. And this extends to the\nphysicality of it as much as what it can buy you. All denominations, large and\nsmall, are treated with respect and kept clean and in top condition. Much of\nthis is tied to an overall culture of cleanliness but it has an important\nbearing on spending. If you treat moolah with respect you are a lot less likely\nto spend it unwisely.\n\n\nMexico: Spot me\n\nLike going to the gym, saving is one of those things that is hard to start and\neven harder to maintain. That’s where doing it with a group can help. The\nMexicans call it: “Tanda”, and it is a savings pool system. All participants pay\nan agreed-upon amount into the pool per month and the pooled cash is given to a\ndifferent participant each round.\n\n\nA big benefit of this over a savings account is that it keeps the money further\nout of reach. Plus, depending on how big the ‘Tanda’ is it can end in a pretty\nbig payday at the end of it.","html":"How are you with savings? Are you the one in four UK adults that has none? Or maybe the one in ten that spend more than they earn on the regular. We might be good at a few things, like football, occasionally, but the rest of the world seems to have us beat for saving that hard-earned cash. Instead of being jealous of how those in other parts of the world save, we thought we’d try to learn from them. After all, imitation is the greatest form of international flattery.
Check out how other countries hoard their yen, euros, and pesos for saving inspiration:
To put into context just how strong: China was top of the world-saving charts back in 2017 when its gross national savings (individual, government and business savings) was a tidy 48.3% of its gross domestic product (GDP). China may have slipped to 3rd place for 2019 (behind Singapore and Suriname) but they still have strong saving habits.
The key? An ingrained habit of saving even more than the recommended amount. Back in 2014 China’s household savings rate was 37% of their disposable income, where most budgeting practices recommend 20% of income for savings.
While a lot of countries are increasingly shunning physical cash in favour of contactless transactions, Germany consistently bucks this trend. So much so that they regularly use one of the world’s most valuable currency denominations, the 500 euro note.
Using cash over card makes it much easier to keep track of your spending and has a knock-on effect with savings.
The Japanese revere cash even more than the Germans. And this extends to the physicality of it as much as what it can buy you. All denominations, large and small, are treated with respect and kept clean and in top condition. Much of this is tied to an overall culture of cleanliness but it has an important bearing on spending. If you treat moolah with respect you are a lot less likely to spend it unwisely.
Like going to the gym, saving is one of those things that is hard to start and even harder to maintain. That’s where doing it with a group can help. The Mexicans call it: “Tanda”, and it is a savings pool system. All participants pay an agreed-upon amount into the pool per month and the pooled cash is given to a different participant each round.
A big benefit of this over a savings account is that it keeps the money further out of reach. Plus, depending on how big the ‘Tanda’ is it can end in a pretty big payday at the end of it.
","url":"https://multiply.ghost.io/top-savings-methods-from-around-the-world/","uuid":"9ceeb4e8-c3b5-428b-b838-505fbb89307d","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5e1766145abbca003800a7af"}},{"node":{"id":"Ghost__Post__5e1763db5abbca003800a79a","title":"Compound interest: is it worth my time?","slug":"compound-interest-is-it-worth-my-time","featured":false,"feature_image":"https://images.unsplash.com/photo-1543286386-713bdd548da4?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"For sure. Everyone knows that interest on debt is bad and interest on savings is good but compound interest could take your money to a whole different level.","custom_excerpt":"For sure. Everyone knows that interest on debt is bad and interest on savings is good but compound interest could take your money to a whole different level.","created_at_pretty":"09 January, 2020","published_at_pretty":"09 January, 2020","updated_at_pretty":"09 January, 2020","created_at":"2020-01-09T17:33:15.000+00:00","published_at":"2020-01-09T17:41:48.000+00:00","updated_at":"2020-01-09T17:41:48.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"For sure. Everyone knows that interest on debt is bad and interest on savings is\ngood but compound interest could take your money to a whole different level. So\nbuckle in and we’ll break down what it is and how it can take you and your money\nplaces.\n\n\nWhat is compound interest?\n\nGoogle it and the top result will tell you some stuff about the initial\nprinciple, accumulated interest, so on and so forth. To explain it with a bit\nless jargon, compound interest is your interest on savings earning more\ninterest. So the longer you save, the more your money builds up or...compounds.\n\n\nAn example to make things clearer\n\nBased on a simple amount to make the maths easier. If you saved £1,000 in an\naccount with a 10% interest rate, by the end of the year you’d have £1,100,\nincluding £100 of interest. If you saved the whole amount for another year your\ninterest would be £110 by the end of it. The following year? £121 and so on.\nThink of it like a money snowball rolling downhill. If you leave it as is, it’ll\ncontinue to grow with the momentum of time.\n\n\nThe snowball effect increases if the interest is pair more frequently. So if\nyour savings get paid interest twice or four times a year, the total amount of\ninterest across the whole year will be higher. Why? Because interest is being\npaid on the interest that builds in those smaller periods.\n\n\nWhy is it worth your time?\n\nTime is actually a key part of why compound interest is so powerful when it\ncomes to your money. The rolling effect of the interest means that the earlier\nyou start saving the bigger the money snowball gets. \n\n\nTo put it into real money context: if you started saving £100 a month at 30\nyears old and carried on until you were 60, with a 10% interest rate, you’d end\nup with a sum of £217,132.11. But if you started saving that same £100 a month\nat 20 years old instead, stopped when you were 30 and left the money in the\naccount until you turned 60, you’d have…. £367,090.06. All due to the rolling\neffect of compound interest. Time, patience and a whole lot of compound interest\ncan make saving for 10 years more profitable than saving for 30.\n\n\nGet it? Then what are ya waiting for? Get saving already.","html":"For sure. Everyone knows that interest on debt is bad and interest on savings is good but compound interest could take your money to a whole different level. So buckle in and we’ll break down what it is and how it can take you and your money places.
Google it and the top result will tell you some stuff about the initial principle, accumulated interest, so on and so forth. To explain it with a bit less jargon, compound interest is your interest on savings earning more interest. So the longer you save, the more your money builds up or...compounds.
Based on a simple amount to make the maths easier. If you saved £1,000 in an account with a 10% interest rate, by the end of the year you’d have £1,100, including £100 of interest. If you saved the whole amount for another year your interest would be £110 by the end of it. The following year? £121 and so on. Think of it like a money snowball rolling downhill. If you leave it as is, it’ll continue to grow with the momentum of time.
The snowball effect increases if the interest is pair more frequently. So if your savings get paid interest twice or four times a year, the total amount of interest across the whole year will be higher. Why? Because interest is being paid on the interest that builds in those smaller periods.
Time is actually a key part of why compound interest is so powerful when it comes to your money. The rolling effect of the interest means that the earlier you start saving the bigger the money snowball gets.
To put it into real money context: if you started saving £100 a month at 30 years old and carried on until you were 60, with a 10% interest rate, you’d end up with a sum of £217,132.11. But if you started saving that same £100 a month at 20 years old instead, stopped when you were 30 and left the money in the account until you turned 60, you’d have…. £367,090.06. All due to the rolling effect of compound interest. Time, patience and a whole lot of compound interest can make saving for 10 years more profitable than saving for 30.
Get it? Then what are ya waiting for? Get saving already.
","url":"https://multiply.ghost.io/compound-interest-is-it-worth-my-time/","uuid":"44ded413-3a56-41e5-bd52-c7baf66e0984","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5e1763db5abbca003800a79a"}},{"node":{"id":"Ghost__Post__5e14bff497e0d00038ef285f","title":"Which type of ISA is for me?","slug":"which-type-of-isa-is-for-me","featured":false,"feature_image":"https://multiply.ghost.io/content/images/2020/01/business-18107_1920.jpg","excerpt":"Different people do different things with their savings. Some people are investment wizards, others choose to stash it under their mattress.","custom_excerpt":"Different people do different things with their savings. Some people are investment wizards, others choose to stash it under their mattress.","created_at_pretty":"07 January, 2020","published_at_pretty":"07 January, 2020","updated_at_pretty":"10 January, 2020","created_at":"2020-01-07T17:29:24.000+00:00","published_at":"2020-01-07T17:35:40.000+00:00","updated_at":"2020-01-10T13:52:13.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"Different people do different things with their savings. Some people are\ninvestment wizards, others choose to stash it under their mattress. For those of\nus who are in between the two, or maybe just want to keep our cash split between\nthe memory foam and somewhere that works harder for our money, there’s the ISA.\n\n\nWhat is an ISA?\n\nSkip straight to the juice (the ISA types) if you already know what this is. For\nthose that don’t, the term ISA stands for ‘Individual savings account’. They let\nyou save tax-free into a cash savings or investment account to watch your money\ngrow.\n\n\nYou can get one from banks, building societies, insurers, asset managers and\nNational Savings and Investments (NS&I).\n\n\nWhat are the different types of ISA?\n\nMoney is the means that connects you to your big goals. Those aren’t any old\ngoals so you shouldn’t accept your hard-earned cash going into any old ISA.\nKnowing the different types means you’ll be able to get the most from your\nmoney.\n\n\nCash ISA\n\nPretty much the same as a regular savings account but there is a £20,000 limit\non the amount you can put into it each tax year and you don’t pay any tax on the\ninterest from your savings. There are typically three different types of cash\nISA that may suit your needs depending on how flexible you are with accessing\nyour money:\n\n\nFixed-rate ISA: As the name suggests you’ll agree to have an interest rate that\nis fixed for a period of time, but in exchange, your money will be locked away.\nThe longer the term, the higher rate of interest you’ll be rewarded with.\n\n\nInstant cash ISA: You can put into and take your cash out of this one whenever\nyou want (some accounts might put limits on this though). The flexibility means\nyou’ll get a variable interest rate on your savings that could be lower.\n\n\nRegular savings cash ISA: You get a fixed rate of interest with this one within\na set time but you’ll have to put in an agreed-upon amount every month. You can\nput in up to £1,666 every month without going over the £20,000 per year limit.\n\n\n\nStocks and shares ISA\n\nThis one is an investment account, where all capital gains and income are\nprotected from tax. For 2020 the limit is anything up to £20,000, but you would\nhave to deduct any amount that you might have paid into a cash ISA. You can\neither have your account managed for you or take the investment bull by the\nhorns and choose where you invest your money. The latter will possibly still\ninclude a fee to the provider. \n\n\nYour investment experience, how much you can afford to lose and your attitude\ntowards risk should be carefully considered before you pick your investments as\nthere’s a chance you’ll get back less than you put in.\n\n\nInnovative finance ISA\n\nThis option is sometimes called ‘IfISA’ and includes peer-to-peer loans. What’s\nthat? Well, it matches investors (that’s you) with borrowers who don’t or can’t\nget a bank loan. Usually, this is businesses, individuals or property investors.\nThe borrower offers a rate of interest on repayments and in general the higher\nthe interest rate the bigger the investment risk.\n\n\nLifetime ISA\n\nOne for the big long-term goals. It’s government-backed and aimed at first-time\nhomebuyers or those saving for retirement. You can choose between cash or stocks\nand shares options for this one and put aside up to £4,000 a year which counts\ntowards your £20,000 ISA allowance. \n\n\nThe government pays a 25% bonus on top of anything you save into it, up to\n£1,000 a year. The government top-up is paid into your Lifetime ISA account each\nmonth.\n\n\nUsing it for retirement? You can pay into it until you’re 50 and withdraw it\nwhen you hit 60.","html":"Different people do different things with their savings. Some people are investment wizards, others choose to stash it under their mattress. For those of us who are in between the two, or maybe just want to keep our cash split between the memory foam and somewhere that works harder for our money, there’s the ISA.
Skip straight to the juice (the ISA types) if you already know what this is. For those that don’t, the term ISA stands for ‘Individual savings account’. They let you save tax-free into a cash savings or investment account to watch your money grow.
You can get one from banks, building societies, insurers, asset managers and National Savings and Investments (NS&I).
Money is the means that connects you to your big goals. Those aren’t any old goals so you shouldn’t accept your hard-earned cash going into any old ISA. Knowing the different types means you’ll be able to get the most from your money.
Pretty much the same as a regular savings account but there is a £20,000 limit on the amount you can put into it each tax year and you don’t pay any tax on the interest from your savings. There are typically three different types of cash ISA that may suit your needs depending on how flexible you are with accessing your money:
Fixed-rate ISA: As the name suggests you’ll agree to have an interest rate that is fixed for a period of time, but in exchange, your money will be locked away. The longer the term, the higher rate of interest you’ll be rewarded with.
Instant cash ISA: You can put into and take your cash out of this one whenever you want (some accounts might put limits on this though). The flexibility means you’ll get a variable interest rate on your savings that could be lower.
Regular savings cash ISA: You get a fixed rate of interest with this one within a set time but you’ll have to put in an agreed-upon amount every month. You can put in up to £1,666 every month without going over the £20,000 per year limit.
This one is an investment account, where all capital gains and income are protected from tax. For 2020 the limit is anything up to £20,000, but you would have to deduct any amount that you might have paid into a cash ISA. You can either have your account managed for you or take the investment bull by the horns and choose where you invest your money. The latter will possibly still include a fee to the provider.
Your investment experience, how much you can afford to lose and your attitude towards risk should be carefully considered before you pick your investments as there’s a chance you’ll get back less than you put in.
This option is sometimes called ‘IfISA’ and includes peer-to-peer loans. What’s that? Well, it matches investors (that’s you) with borrowers who don’t or can’t get a bank loan. Usually, this is businesses, individuals or property investors. The borrower offers a rate of interest on repayments and in general the higher the interest rate the bigger the investment risk.
One for the big long-term goals. It’s government-backed and aimed at first-time homebuyers or those saving for retirement. You can choose between cash or stocks and shares options for this one and put aside up to £4,000 a year which counts towards your £20,000 ISA allowance.
The government pays a 25% bonus on top of anything you save into it, up to £1,000 a year. The government top-up is paid into your Lifetime ISA account each month.
Using it for retirement? You can pay into it until you’re 50 and withdraw it when you hit 60.
","url":"https://multiply.ghost.io/which-type-of-isa-is-for-me/","uuid":"4e61fee4-c7c1-4054-b3f1-c40cd00dae94","page":null,"codeinjection_foot":null,"codeinjection_head":"\n","codeinjection_styles":null,"comment_id":"5e14bff497e0d00038ef285f"}},{"node":{"id":"Ghost__Post__5e14b7a697e0d00038ef2847","title":"Packaged bank account guide","slug":"packaged-bank-account-guide","featured":false,"feature_image":"https://images.unsplash.com/photo-1517561706694-342a492f7785?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Like pineapple on pizza, you’ll either love or hate packaged bank accounts. They’re regular current accounts that come with a whole host of extras.","custom_excerpt":"Like pineapple on pizza, you’ll either love or hate packaged bank accounts. They’re regular current accounts that come with a whole host of extras.","created_at_pretty":"07 January, 2020","published_at_pretty":"07 January, 2020","updated_at_pretty":"07 January, 2020","created_at":"2020-01-07T16:53:58.000+00:00","published_at":"2020-01-07T17:14:59.000+00:00","updated_at":"2020-01-07T17:42:14.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"Like pineapple on pizza, you’ll either love or hate packaged bank accounts.\nThey’re regular current accounts that come with a whole host of extras. They\nusually have a monthly fee, but the savviest bank account hunter can usually\nturn that monthly Direct Debit into a big ol’ saving. How? Play the benefits of\nthe account, like breakdown cover and travel insurance, just right. Keep the\nbelow in mind if you’re looking to save with the perfect package:\n\n\nDouble-check it’s good value\n\nThink of that monthly fee as a lump sum. Multiply it by 12 to get the annual\ncost and then work out if you can nab those add-ons for cheaper else. Bear in\nmind that the insurance policies included in these packages like are usually\nhigh-end, so keep an eye out for standard cover that still does everything you\nwant it to.\n\n\nDoes the total save you more money than going to different suppliers? Go for it.\nIf not, opt for a fee-free bank account and get what you need elsewhere.\n\n\nGo joint account profit\n\nWith a joint account, you pay one monthly fee but both account holders get all\nthe benefits. That means you can double up on the value. Just be aware that\ncombining finances means your partner’s credit score could affect yours and vice\nversa.\n\n\nDoes it cover everything?\n\nThis is more a general insurance point: make sure the policy you’re getting\ncovers you for what you need. If you hit the ski slopes every year but winter\nsports isn’t covered, the expensive addition may wipe out your saving. Be sure\nto shop around for a package that is right for your needs.\n\n\nSwitch up your rewards\n\nHappy with your existing cover or just plain don’t need those insurance extras?\nGo for an account that more than makes up for it with other rewards. Some offer\nhigh-interest rates on small amounts of cash, switching bonuses of £100 or more,\nand 0% overdrafts. Check out the bank accounts guide\n[https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/] on Money\nSaving Expert for the full breakdown.\n\n\nDoing a bit of research into your current or future packaged bank account can\ntake a little bit of effort but can result in a big saving in the long run.","html":"Like pineapple on pizza, you’ll either love or hate packaged bank accounts. They’re regular current accounts that come with a whole host of extras. They usually have a monthly fee, but the savviest bank account hunter can usually turn that monthly Direct Debit into a big ol’ saving. How? Play the benefits of the account, like breakdown cover and travel insurance, just right. Keep the below in mind if you’re looking to save with the perfect package:
Think of that monthly fee as a lump sum. Multiply it by 12 to get the annual cost and then work out if you can nab those add-ons for cheaper else. Bear in mind that the insurance policies included in these packages like are usually high-end, so keep an eye out for standard cover that still does everything you want it to.
Does the total save you more money than going to different suppliers? Go for it. If not, opt for a fee-free bank account and get what you need elsewhere.
With a joint account, you pay one monthly fee but both account holders get all the benefits. That means you can double up on the value. Just be aware that combining finances means your partner’s credit score could affect yours and vice versa.
This is more a general insurance point: make sure the policy you’re getting covers you for what you need. If you hit the ski slopes every year but winter sports isn’t covered, the expensive addition may wipe out your saving. Be sure to shop around for a package that is right for your needs.
Happy with your existing cover or just plain don’t need those insurance extras? Go for an account that more than makes up for it with other rewards. Some offer high-interest rates on small amounts of cash, switching bonuses of £100 or more, and 0% overdrafts. Check out the bank accounts guide on Money Saving Expert for the full breakdown.
Doing a bit of research into your current or future packaged bank account can take a little bit of effort but can result in a big saving in the long run.
","url":"https://multiply.ghost.io/packaged-bank-account-guide/","uuid":"1c352856-3857-465b-b8b5-ec85cc747171","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5e14b7a697e0d00038ef2847"}},{"node":{"id":"Ghost__Post__5e1356156abc3f003828c751","title":"2020: The year to turn your pennies into £670 pounds","slug":"2020-the-year-to-turn-your-pennies-into-670-pounds","featured":false,"feature_image":"https://images.unsplash.com/photo-1567427013953-88102117053a?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"It may sound like a magic trick or the sales pitch for a pyramid scheme but in reality, it is one of the most popular savings methods knocking around.","custom_excerpt":"It may sound like a magic trick or the sales pitch for a pyramid scheme but in reality, it is one of the most popular savings methods knocking around.","created_at_pretty":"06 January, 2020","published_at_pretty":"06 January, 2020","updated_at_pretty":"07 January, 2020","created_at":"2020-01-06T15:45:25.000+00:00","published_at":"2020-01-06T15:56:07.000+00:00","updated_at":"2020-01-07T17:21:53.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jason David","slug":"jason","bio":null,"profile_image":"https://multiply.ghost.io/content/images/2019/12/AT5_1445-1.jpg","twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"It may sound like a magic trick or the sales pitch for a pyramid scheme but in\nreality, it is one of the most popular savings methods knocking around. Are you\nsomeone that struggles to save pennies or pounds? We feel you. The 1p Savings\nChallenge does too and counters the whole ‘I’ve got nada to spare’ by just\ngetting you to save small amounts that increase daily. \n\n\nHow does it work?\nSimply. Each day you save what you saved the day before, plus a penny more.\nStarting with 1p, then 2p, then 3p and so on right up until the end of December\nwhen you’ll save £3.66 (the leap year means you’ll have one extra day to save).\n\n\nIt starts from January 1st, but no worries if you’ve jumped on board a bit\nlater. Add the missed amount to the pot or start your first day a bit later.\nLater is better than never.\n\n\nHow can I take part?\nThere are a few ways to get going on the 1p Savings Challenge, depending on how\nyou like to save:\n\n\nOld school coins in a jar: The easiest/traditional way is to put your loose\nchange in a piggy bank or sealed jar. The only downfall to this option is as the\namount climbs towards the end of the year you’ll need more and more change if\nyou’re keeping an eye on it by increasing numerical order.\n\n\nNew school automatic withdrawal from your bank: There are banks like Monzo that\nlet you automatically transfer increasing amounts of money using the free web\nservice IFTTT (If This Then That). A bit of software that connects apps to\ntrigger pre-programmed functions (like auto-calculating how many pennies you\nneed to save for the challenge). Check out how you can do it through Monzo\n[https://monzo.com/blog/2019/04/10/1p-savings-challenge-monzo].\n\n\nThe other school of manual transfers: With online banking, you could log in and\ntransfer the growing daily amount to a savings account. Although this might take\nquite a bit of commitment to keep going for a whole year…\n\n\nWorried you’ll forget a day or won’t know how much you’re supposed to be saving?\nMoney Saving Expert has a snazzy little bingo-esque cheat sheet\n[https://www.moneysavingexpert.com/content/dam/mse/downloads/forum-1pchallenge-v1.pdf?] \nthat lets you tick off the correct amount by day as you go.\n\n\nMake the challenge work for you\nOof. January is a toughie. All those pressies to others (and yourself) can leave\nthe first month of the year looking like a daunting prospect for putting any\ncash aside. It’s also usually best to pay off any debts before you start saving.\nIf in doubt, check our app to see if we recommend you to repay debts, build your\nemergency fund, or save. Good to go? Here are some ways you can tweak the\nchallenge:\n\n\nStart later in the year: As previously mentioned, even starting a little later\ncan build up a healthy pot by December.\n\n\nFlip it, reverse it: If you’re on solid financial footing at the beginning of\nthe year (we are jealous), start by saving £3.66 in January and work your way\nback. It’ll give you more breathing room in December when you’ll be saving\npennies.\n\n\nGo weekly or monthly: It is against the spirit of the challenge, but an\nalternative way to save the same amount is to work out what it would be for a\nweek on week or a monthly sum. Not quite as exciting as the daily challenge but\nsaving is saving...","html":"It may sound like a magic trick or the sales pitch for a pyramid scheme but in reality, it is one of the most popular savings methods knocking around. Are you someone that struggles to save pennies or pounds? We feel you. The 1p Savings Challenge does too and counters the whole ‘I’ve got nada to spare’ by just getting you to save small amounts that increase daily.
Simply. Each day you save what you saved the day before, plus a penny more. Starting with 1p, then 2p, then 3p and so on right up until the end of December when you’ll save £3.66 (the leap year means you’ll have one extra day to save).
It starts from January 1st, but no worries if you’ve jumped on board a bit later. Add the missed amount to the pot or start your first day a bit later. Later is better than never.
There are a few ways to get going on the 1p Savings Challenge, depending on how you like to save:
Old school coins in a jar: The easiest/traditional way is to put your loose change in a piggy bank or sealed jar. The only downfall to this option is as the amount climbs towards the end of the year you’ll need more and more change if you’re keeping an eye on it by increasing numerical order.
New school automatic withdrawal from your bank: There are banks like Monzo that let you automatically transfer increasing amounts of money using the free web service IFTTT (If This Then That). A bit of software that connects apps to trigger pre-programmed functions (like auto-calculating how many pennies you need to save for the challenge). Check out how you can do it through Monzo.
The other school of manual transfers: With online banking, you could log in and transfer the growing daily amount to a savings account. Although this might take quite a bit of commitment to keep going for a whole year…
Worried you’ll forget a day or won’t know how much you’re supposed to be saving? Money Saving Expert has a snazzy little bingo-esque cheat sheet that lets you tick off the correct amount by day as you go.
Oof. January is a toughie. All those pressies to others (and yourself) can leave the first month of the year looking like a daunting prospect for putting any cash aside. It’s also usually best to pay off any debts before you start saving. If in doubt, check our app to see if we recommend you to repay debts, build your emergency fund, or save. Good to go? Here are some ways you can tweak the challenge:
Start later in the year: As previously mentioned, even starting a little later can build up a healthy pot by December.
Flip it, reverse it: If you’re on solid financial footing at the beginning of the year (we are jealous), start by saving £3.66 in January and work your way back. It’ll give you more breathing room in December when you’ll be saving pennies.
Go weekly or monthly: It is against the spirit of the challenge, but an alternative way to save the same amount is to work out what it would be for a week on week or a monthly sum. Not quite as exciting as the daily challenge but saving is saving...
Sound like a lot, eh? Well, it is. But ‘a lot’ doesn’t tell you exactly what kind of lifestyle you’d be able to afford with that sum of money. Fortunately, Moira O’Neill, Interactive Investor’s Head of Personal Finance investigated it. Prompted by her nine-year-old daughter, someone who potentially has more saving foresight than those of us who are older and supposedly wiser.
With the average UK wage at £27,000, saving that amount seems like a tall (and expensive) order. But would it even be enough? Well, it depends on what you want from your retirement. Below are four retirement options along with what you’ll need to save for each one.
The breakdown is based on a modest 3% withdrawal rate. That's conservative enough that you won’t run out of money in your lifetime, even if you need an income for up to 50 years. The assumption is also that your retirement fund is kept in a balanced portfolio of equities, fixed interest, and cash.
In 2018, insurer Royal London worked out the amount you’d need to put aside to have a “comfortable” retirement income of two-thirds of the average £27,000 a year earnings (£18,000 per year). This is based on someone having paid off their mortgage and buying an annuity when they retired.
Lump sum needed: £260,000
The full state pension will give you £8,767 in retirement and requires 35 years’ worth of national insurance contributions. It is meant to be enough to live on but will likely only be able to support a very frugal lifestyle.
It is an important option to consider because the future of state pensions is unclear and may be means-tested by the time Millenials get to pension age. This would provide a like-for-like yearly amount in the absence of any state pension.
Lump sum needed: £292,233
The Joseph Rowntree Foundation is an independent social change organisation that’s working to solve UK poverty and has recognised that you need more than just food, clothes and shelter in retirement. This “minimum” only covers needs, not wants. Factoring in the luxuries that most people see as necessary to “participate in society” you’d need £18,800 per year. The amount you’d need to maintain this level of income (state pension excluded) scales up considerably.
Lump sum needed: £626,666
The big one. The criteria for ‘comfortable’ has been calculated by Loughborough University and is defined as being able to be spontaneous with your money and have two foreign holidays a year. A single person would need an income of £33,000 per year to afford a comfortable retirement.
Lump sum needed: £1.1 million
Want to travel in your retirement? Then a million may be £100,000 short of what you need to save. There’s a half a million gap between minimum and comfortable though, so room to manoeuvre.
Whichever option you aim for it is good to have a plan of action for exactly how much you want in later life and how to get there. Want a hand working out how much you need to save now for the income you want in retirement? We’ve got a pension calculator for that. Try it now and get planning.
","url":"https://multiply.ghost.io/1-million-might-not-be-enough-to-retire-on/","uuid":"4c61e13a-5395-4f88-80da-455fe153374e","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5df3c8792e4a100038d3dd07"}},{"node":{"id":"Ghost__Post__5dc4490e8bb4f50038afe8a0","title":"Money Diaries: the home-buying success story","slug":"money-diaries-the-home-buying-success-story","featured":false,"feature_image":"https://images.unsplash.com/photo-1502672260266-1c1ef2d93688?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Find out how one Multiplier did it","custom_excerpt":"Find out how one Multiplier did it","created_at_pretty":"07 November, 2019","published_at_pretty":"15 November, 2019","updated_at_pretty":"29 November, 2019","created_at":"2019-11-07T16:40:46.000+00:00","published_at":"2019-11-15T16:29:06.000+00:00","updated_at":"2019-11-29T14:39:42.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"Multiplier Annie bought a new-build flat in London last year (before she was a\nMultiplier). This is a success story...eventually. But it was far from\nplain-sailing, taking over 4 months from offer to completion and with several\nrookie mistakes along the way.\n\nOctober 2017: Let’s do this\n\nMy partner and I had been talking casually about buying a place together “at\nsome point”. It felt quite far off. Then one day, we compared savings account\nbalances and realised that between us we were actually a lot closer to getting a\ndeposit together than we had assumed.\n\nWe started saving more, cutting back on non-essential spending and putting away\nas much as possible each month. We both had cash ISAs and decided not to open a\nLifetime or Help to Buy ISA, as we expected to be buying within a year.\n\nNovember 2017: Payday\n\nI took on an extra freelance project in my own time to boost my income. I was\ndue a pay review so I haggled and got myself a raise which (although I was\nclueless at the time) later proved critical to getting a mortgage.\n\nFebruary 2018: Gonna need a bigger loan\n\nThis was a time before I worked for a financial advice company, so I didn’t\nrealise mortgage providers would only lend you up to 4.5 times your household\nincome. I always thought that saving for the deposit was the hard part, and the\nrest would be easy. Nope.\n\nWe looked at some mortgage calculators and saw that the amount we could borrow,\nplus our deposit, did not equal a two-bed flat with outside space within walking\ndistance of work. Boo. \n\nFriends of ours had recently bought a place using the Help to Buy equity loan,\nand although I was cautious about it, we did a lot of research and realised it\nwas the difference between being able to buy and - well, not.\n\nMarch 2018: Meeting The One\n\nI’d done a bit of research online about banks that were good for self-employed\npeople, and (after a long phone call) had a Decision in Principle from a\nchallenger bank.\n\nOne limitation of the Help to Buy equity loan is that the property has to be a\nnew build. We both like living centrally and being able to walk to work, and\nbecause new builds are generally in large developments on the outskirts of\nLondon there were only a handful of Help to Buy flats that fitted our criteria.\nWe booked a couple of viewings. \n\nAfter our first viewing, we were due to meet some friends at a pub nearby. We\nwalked down the road, discussing the flat we’d just seen and trying not to get\noverexcited. The realisation was mounting that straight out of the gate we’d\nseen our ideal property. It ticked all our boxes.\n\nApril 2018: Applications, applications, applications\n\nAfter a bit of haggling back and forth, the seller accepted our offer: £5,000\nbelow asking price.\n\nWe’d taken a conveyancing recommendation from a solicitor friend, so that part\nwas straightforward. We started the mortgage application, and everything was\nlooking good.\n\nWe submitted our application for the Help to Buy equity loan. We thought this\nwould be simple. We were wrong. The forms were really confusing and our\napplication was rejected several times for seemingly random reasons. It was\ntorturous and took weeks. \n\nMay 2018: Disaster strikes\n\nThe bank valued the property and raised concerns about the plot next door: a\ncommercial space with an A1 licence. They rejected our mortgage application.\n\nThe estate agent rang to say that the seller was getting impatient with us and\nhad put the flat back on the market. He had two potential buyers coming to view\nit the following day. It felt like we were at the end of the road.\n\nJune 2018: A new mortgage\n\nAs a last-ditch attempt we decided to call an adviser. I have vivid memories of\nbeing on the phone to him while on a surfing holiday, trying to hear his\nexplanations of our options over the sound of the wind as we sat on a beach in\nthe middle of nowhere.\n\nEventually, we were offered a £242,000 at 1.98%, half of what the rate would\nhave been on the mortgage that we’d previously been rejected for. We got the\ngood news while we were on a hike on the final day of the holiday. We could\nhardly believe it.\n\nWe then finally heard back from Help to Buy that our application for the equity\nloan was also approved. Over three months after we’d made the offer our flat\nstill felt a long way away, but at least now it seemed possible that it would\none day be ours.\n\nJuly 2018: It’s finally happening\n\nThe paperwork was ready and we exchanged contracts, setting a completion date of\n23rd July. You pay 10% of the deposit money at this point. For security, I had\nto call the solicitor to confirm the bank details and then go into the branch to\nmake the transfer, which I’d never done before.\n\nCompletion date arrived and the big moment was just...an email from our\nsolicitor to confirm the money had been sent to the seller and the flat was now\nours. It felt surreal, until we collected the keys after work and strolled up to\nour new home to eat pizza and drink prosecco sitting on the floor.\n\nAugust 2018: A final twist\n\nWe moved in the following weekend. We’d let ourselves into the flat the week\nbefore no problem, but on moving day, with all of our worldly possessions piled\nup in the street, the front door refused to budge.\n\nIt was a Saturday. The seller was out of the country. The solicitor wasn’t\npicking up. The estate agent didn’t want to know. So we called an emergency\nlocksmith.\n\nIt was a chaotic start, but we’ve been living there for over a year now and it’s\ngreat. We’ve had barbecues, parties, and games nights. We’ve had family to stay,\nfriends crash on the sofa, and quiet Sunday afternoons to ourselves. It was\nworth every minute of stress and I wouldn’t have it any other way.\n\nKey stats\n\nProperty: 2 bed flat in zone 2, London\nPurchase price: £490,000\nStamp duty: £9,500\n\n\nDeposit: £52,000\nMortgage: £242,000 at 1.98%\nHelp to Buy equity loan: £296,000","html":"Multiplier Annie bought a new-build flat in London last year (before she was a Multiplier). This is a success story...eventually. But it was far from plain-sailing, taking over 4 months from offer to completion and with several rookie mistakes along the way.
October 2017: Let’s do this
My partner and I had been talking casually about buying a place together “at some point”. It felt quite far off. Then one day, we compared savings account balances and realised that between us we were actually a lot closer to getting a deposit together than we had assumed.
We started saving more, cutting back on non-essential spending and putting away as much as possible each month. We both had cash ISAs and decided not to open a Lifetime or Help to Buy ISA, as we expected to be buying within a year.
November 2017: Payday
I took on an extra freelance project in my own time to boost my income. I was due a pay review so I haggled and got myself a raise which (although I was clueless at the time) later proved critical to getting a mortgage.
February 2018: Gonna need a bigger loan
This was a time before I worked for a financial advice company, so I didn’t realise mortgage providers would only lend you up to 4.5 times your household income. I always thought that saving for the deposit was the hard part, and the rest would be easy. Nope.
We looked at some mortgage calculators and saw that the amount we could borrow, plus our deposit, did not equal a two-bed flat with outside space within walking distance of work. Boo.
Friends of ours had recently bought a place using the Help to Buy equity loan, and although I was cautious about it, we did a lot of research and realised it was the difference between being able to buy and - well, not.
March 2018: Meeting The One
I’d done a bit of research online about banks that were good for self-employed people, and (after a long phone call) had a Decision in Principle from a challenger bank.
One limitation of the Help to Buy equity loan is that the property has to be a new build. We both like living centrally and being able to walk to work, and because new builds are generally in large developments on the outskirts of London there were only a handful of Help to Buy flats that fitted our criteria. We booked a couple of viewings.
After our first viewing, we were due to meet some friends at a pub nearby. We walked down the road, discussing the flat we’d just seen and trying not to get overexcited. The realisation was mounting that straight out of the gate we’d seen our ideal property. It ticked all our boxes.
April 2018: Applications, applications, applications
After a bit of haggling back and forth, the seller accepted our offer: £5,000 below asking price.
We’d taken a conveyancing recommendation from a solicitor friend, so that part was straightforward. We started the mortgage application, and everything was looking good.
We submitted our application for the Help to Buy equity loan. We thought this would be simple. We were wrong. The forms were really confusing and our application was rejected several times for seemingly random reasons. It was torturous and took weeks.
May 2018: Disaster strikes
The bank valued the property and raised concerns about the plot next door: a commercial space with an A1 licence. They rejected our mortgage application.
The estate agent rang to say that the seller was getting impatient with us and had put the flat back on the market. He had two potential buyers coming to view it the following day. It felt like we were at the end of the road.
June 2018: A new mortgage
As a last-ditch attempt we decided to call an adviser. I have vivid memories of being on the phone to him while on a surfing holiday, trying to hear his explanations of our options over the sound of the wind as we sat on a beach in the middle of nowhere.
Eventually, we were offered a £242,000 at 1.98%, half of what the rate would have been on the mortgage that we’d previously been rejected for. We got the good news while we were on a hike on the final day of the holiday. We could hardly believe it.
We then finally heard back from Help to Buy that our application for the equity loan was also approved. Over three months after we’d made the offer our flat still felt a long way away, but at least now it seemed possible that it would one day be ours.
July 2018: It’s finally happening
The paperwork was ready and we exchanged contracts, setting a completion date of 23rd July. You pay 10% of the deposit money at this point. For security, I had to call the solicitor to confirm the bank details and then go into the branch to make the transfer, which I’d never done before.
Completion date arrived and the big moment was just...an email from our solicitor to confirm the money had been sent to the seller and the flat was now ours. It felt surreal, until we collected the keys after work and strolled up to our new home to eat pizza and drink prosecco sitting on the floor.
August 2018: A final twist
We moved in the following weekend. We’d let ourselves into the flat the week before no problem, but on moving day, with all of our worldly possessions piled up in the street, the front door refused to budge.
It was a Saturday. The seller was out of the country. The solicitor wasn’t picking up. The estate agent didn’t want to know. So we called an emergency locksmith.
It was a chaotic start, but we’ve been living there for over a year now and it’s great. We’ve had barbecues, parties, and games nights. We’ve had family to stay, friends crash on the sofa, and quiet Sunday afternoons to ourselves. It was worth every minute of stress and I wouldn’t have it any other way.
Key stats
Property: 2 bed flat in zone 2, London
Purchase price: £490,000
Stamp duty: £9,500
Deposit: £52,000
Mortgage: £242,000 at 1.98%
Help to Buy equity loan: £296,000
Everything is more expensive in 2019: homes, travel, Freddos. As costs soar for what we want and need, so does the overall cost of raising a mini-you. The Money Charity rounds up statistics for how we use money in the UK and their latest estimate is that it costs an average of £22.92 a day to raise a child to the age of 21.
The biggest costs, particularly in those early days, are childcare and babysitting. A few years back the Guardian estimated that these outlays account for more than £70,000. Education costs come in at £74,000, including related expenses like school lunches, textbooks, and school trips. This costing is for a child going to a state school, with the education bill rising considerably if private schools get involved.
These amounts might seem overwhelming but they’ll be more manageable if you’re prepared for what’s to come. Let’s take a closer look at the costs.
Eat, sleep, gurgle, repeat. Babies don’t do much in their first few years but they’ll still need a fair bit to keep them going.
First month: Research says that you’re likely to spend more than £500. On average that’s:
First year: Research by insurer LV puts the average cost of having a baby at £11,498 for the remaining 11 months. The impact is further compounded by the hit you take to your income if you or your partner take maternity leave.
Years 2-4: Childcare is still the main squeeze in these years; most parents spend £63,224 on average in total.
Years 5-17: The older years will bring a host of other costs as your young one develops their own unique personality and a range of hobbies to go with it. Childcare is less expensive once they’re older though, with the average yearly spend dipping to £8,640.
Years 18-21: The calm goes before the higher education storm, with post-18 education costs priced at an average of £17,815 a year.
The at-a-glance breakdown of where it all goes:
Education: £74,466
Childcare and babysitting: £70,466
Food: £19,004
Holidays: £16,882
Other: £14,195
Clothing: £10,942
Hobbies and toys: £9,307
Leisure and recreation: £7,464
Pocket money: £4,614
Furniture: £3,408
Personal: £1,130
Average annual cost from 2016:
First year: £11,498
1 - 4: £15,806
5 - 17: £8,640
18 -21: £17,815
Some comfort for future parents is that the cost of clothing (sixth highest cost) has fallen since 2003, with supermarket chains like Aldi launching budget ranges. It’s also worth remembering that these prices are averages, and many savvy parents are able to save money, particularly in the early years.
","url":"https://multiply.ghost.io/how-much-it-costs-to-have-a-kid/","uuid":"820c8eeb-03e0-4a40-a52e-188088ea9b7c","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5dc96bb6db77ca0038eacc5a"}},{"node":{"id":"Ghost__Post__5dc4482f8bb4f50038afe892","title":"Home-buying horror stories","slug":"home-buying-horror-stories","featured":false,"feature_image":"https://images.unsplash.com/photo-1564689891201-f5345f791112?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"\"I wish I’d known about that\"","custom_excerpt":"\"I wish I’d known about that\"","created_at_pretty":"07 November, 2019","published_at_pretty":"15 November, 2019","updated_at_pretty":"29 November, 2019","created_at":"2019-11-07T16:37:03.000+00:00","published_at":"2019-11-15T16:26:38.000+00:00","updated_at":"2019-11-29T14:46:40.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"‘I wish I’d known about that’. The mantra of the first-time buyer that has a\nhorror story to tell. Don’t fancy joining them? Brush up on some tales of woe,\nso you only have tales of ‘woo’. We’ve collated the best worst home-buying\nstories so you can profit from the mistakes of others.\n\nTo new build, or not to new build: That is the question. Because they both have\ntheir pros and cons. A family from Devon mainly felt the latter as their move\ndate was constantly pushed back due to the house not being built yet\n[https://www.devonlive.com/news/new-build-horror-home-stories-2177182].\nJohnathan and Jillian Widlake nabbed one for what they thought was a bargain\nprice of £300,000.\n\nAfter some initial delays, they were promised they’d be moved in for August.\nThis slipped to October when the roof was finally put on. Their home builder,\nWain Homes, set the moving cut-off point to December 7th, which was still not\ngreat as Jillian had given notice at her job and enrolled her son in a school\nlocal to their new house, and they were at risk of their mortgage offer running\nout.\n\nRegardless, the move slipped again by a day, only after they’d contracted movers\nin to bring all of their belongings. The final stretch to before moving in\ninvolved them having to pay the movers to stay in South Molton overnight.\n\nEven once they were successfully moved in the problems didn’t stop there.\nIncorrect pointing, leaky windows, blocked drains, warped floors, and a leaky\ngarage plagued their first 10 months there. To the point where Jillian put the\nhouse up for sale in frustration at £50,000 less than they bought it for.\n\nThe reluctant mover: When it comes to seeing your way around a house, it is best\nto be shown round by estate agents...or at least someone who’s ready to move out\nand move on. One potential homebuyer had a tour of a flat from a tenant who was\nclearly still attached to the place.\n\nHis highlights? How the pipes under the kitchen sink just snapped off in your\nhand. Also, the large patch of damp on the bathroom ceiling that kept coming\nback no matter what he did to get rid of it. - Via Rightmove\n[https://www.rightmove.co.uk/news/articles/property-news/funny-property-stories/]\n\nStairway to nowhere: Some people have the patience for a doer-upper but it’s\nalways a good idea to check how much doing up you’ll be getting yourself into.\nDon’t be like the people who bought a quaint old cottage in a remote Devon\nvillage.\n\nIt needed a lot of work but they found out exactly how much when they began\npulling up the tatty ancient stair carpet only to have the stairs collapse. The\ncarpet being the only thing that held them together. - Via Rightmove\n[https://www.rightmove.co.uk/news/articles/property-news/funny-property-stories/]\n\nKnow thy neighbour: You’re all moved in, everything has gone fine. But it is\nprobably still worth keeping your eye on the ball to get in good with your\nneighbours. You know the drill: drop them a courtesy invite to the housewarming,\ntake in their parcels, maybe meet up for a coffee.\n\nThe opposite end of this spectrum is the new homeowner that didn’t know her\nneighbours very well and thought nothing of it when a removals van pulled up\noutside a house that had been on the market for a while. The movers were\nfriendly and hard-working, with one of them even breaking off from his own work\nto help with her shopping.\n\nShe gave them tea with biscuits as a thank you, as the owners they were working\nfor weren’t home. Two days later, they returned to find their home was\ncompletely empty. Red-faced the new homeowner helped the police with a\ndescription of the tea buddies/criminals but her robbed neighbours never spoke\nto her again. Via Rightmove\n[https://www.rightmove.co.uk/news/articles/property-news/funny-property-stories/]\n\nKnow anymore from relatives, friends, or enemies? We’d love to hear them\n[support@multiply.ai] and share them to make other Multipliers as prepared as\npossible for their home-buying journey.","html":"‘I wish I’d known about that’. The mantra of the first-time buyer that has a horror story to tell. Don’t fancy joining them? Brush up on some tales of woe, so you only have tales of ‘woo’. We’ve collated the best worst home-buying stories so you can profit from the mistakes of others.
To new build, or not to new build: That is the question. Because they both have their pros and cons. A family from Devon mainly felt the latter as their move date was constantly pushed back due to the house not being built yet. Johnathan and Jillian Widlake nabbed one for what they thought was a bargain price of £300,000.
After some initial delays, they were promised they’d be moved in for August. This slipped to October when the roof was finally put on. Their home builder, Wain Homes, set the moving cut-off point to December 7th, which was still not great as Jillian had given notice at her job and enrolled her son in a school local to their new house, and they were at risk of their mortgage offer running out.
Regardless, the move slipped again by a day, only after they’d contracted movers in to bring all of their belongings. The final stretch to before moving in involved them having to pay the movers to stay in South Molton overnight.
Even once they were successfully moved in the problems didn’t stop there. Incorrect pointing, leaky windows, blocked drains, warped floors, and a leaky garage plagued their first 10 months there. To the point where Jillian put the house up for sale in frustration at £50,000 less than they bought it for.
The reluctant mover: When it comes to seeing your way around a house, it is best to be shown round by estate agents...or at least someone who’s ready to move out and move on. One potential homebuyer had a tour of a flat from a tenant who was clearly still attached to the place.
His highlights? How the pipes under the kitchen sink just snapped off in your hand. Also, the large patch of damp on the bathroom ceiling that kept coming back no matter what he did to get rid of it. - Via Rightmove
Stairway to nowhere: Some people have the patience for a doer-upper but it’s always a good idea to check how much doing up you’ll be getting yourself into. Don’t be like the people who bought a quaint old cottage in a remote Devon village.
It needed a lot of work but they found out exactly how much when they began pulling up the tatty ancient stair carpet only to have the stairs collapse. The carpet being the only thing that held them together. - Via Rightmove
Know thy neighbour: You’re all moved in, everything has gone fine. But it is probably still worth keeping your eye on the ball to get in good with your neighbours. You know the drill: drop them a courtesy invite to the housewarming, take in their parcels, maybe meet up for a coffee.
The opposite end of this spectrum is the new homeowner that didn’t know her neighbours very well and thought nothing of it when a removals van pulled up outside a house that had been on the market for a while. The movers were friendly and hard-working, with one of them even breaking off from his own work to help with her shopping.
She gave them tea with biscuits as a thank you, as the owners they were working for weren’t home. Two days later, they returned to find their home was completely empty. Red-faced the new homeowner helped the police with a description of the tea buddies/criminals but her robbed neighbours never spoke to her again. Via Rightmove
Know anymore from relatives, friends, or enemies? We’d love to hear them and share them to make other Multipliers as prepared as possible for their home-buying journey.
","url":"https://multiply.ghost.io/home-buying-horror-stories/","uuid":"ee8dd902-0769-44d2-b547-fe9b0aac9592","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5dc4482f8bb4f50038afe892"}},{"node":{"id":"Ghost__Post__5dc54f73db77ca0038eaca96","title":"Find out which \"money mindset\" you have","slug":"find-out-which-money-mindset-you-have","featured":false,"feature_image":"https://images.unsplash.com/photo-1434030216411-0b793f4b4173?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"This could explain everything...","custom_excerpt":"This could explain everything...","created_at_pretty":"08 November, 2019","published_at_pretty":"15 November, 2019","updated_at_pretty":"13 December, 2019","created_at":"2019-11-08T11:20:19.000+00:00","published_at":"2019-11-15T16:26:08.000+00:00","updated_at":"2019-12-13T17:32:50.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"Your relationship with money is a complex thing. Your beliefs about money are\noften subconscious and are formed in childhood. But they're important to\nconsider, as they drive the way we behave in adulthood.\n\nAccording to research professor Brad Klontz\n[https://newprairiepress.org/jft/vol2/iss1/1/], there are four basic attitudes\ntowards money: money avoidance, money worship, money status and money vigilance. \n\nMost people identify with one of these attitudes in particular, but you might\nhave some level of affinity with all of them.\n\nMoney vigilance\nPeople who are money vigilant tend to be savers, forever stashing money away for\na rainy day. Money vigilant people can sometimes be overly cautious, and\nexperience guilt and anxiety over spending money. They’re likely to be\nfinancially secure, but might find it hard to enjoy their money.\n\nMoney status\nMoney status means your self-worth is directly linked to your net worth. Money\nstatus people care most about the stuff that money can buy, and the way it looks\nto other people. This can mean they can sometimes make financial decisions based\non what looks good, rather than taking care of their genuine wants and needs.\n\nMoney worship\nMoney worshippers believe that money can solve all their problems. They think\nthat if they only had a bit more cash, life would be perfect. People with this\nattitude are always chasing the next big thing. They can find it hard to be\nsatisfied with what they have, and often end up in debt.\n\nMoney avoidance\nMoney avoidant people have a deep-seated belief that money is bad, or that they\ndon’t deserve to have any. Money is a source of fear, and sometimes even\ndisgust, for money avoidant people. They’re often over-spenders and prefer to\navoid checking their bank balance.\n\nDo you recognise yourself in any of these four attitudes? Whatever your\ntendencies, you can stay on track and build good money habits by following your\nfinancial plan.","html":"Your relationship with money is a complex thing. Your beliefs about money are often subconscious and are formed in childhood. But they're important to consider, as they drive the way we behave in adulthood.
According to research professor Brad Klontz, there are four basic attitudes towards money: money avoidance, money worship, money status and money vigilance.
Most people identify with one of these attitudes in particular, but you might have some level of affinity with all of them.
People who are money vigilant tend to be savers, forever stashing money away for a rainy day. Money vigilant people can sometimes be overly cautious, and experience guilt and anxiety over spending money. They’re likely to be financially secure, but might find it hard to enjoy their money.
Money status means your self-worth is directly linked to your net worth. Money status people care most about the stuff that money can buy, and the way it looks to other people. This can mean they can sometimes make financial decisions based on what looks good, rather than taking care of their genuine wants and needs.
Money worshippers believe that money can solve all their problems. They think that if they only had a bit more cash, life would be perfect. People with this attitude are always chasing the next big thing. They can find it hard to be satisfied with what they have, and often end up in debt.
Money avoidant people have a deep-seated belief that money is bad, or that they don’t deserve to have any. Money is a source of fear, and sometimes even disgust, for money avoidant people. They’re often over-spenders and prefer to avoid checking their bank balance.
Do you recognise yourself in any of these four attitudes? Whatever your tendencies, you can stay on track and build good money habits by following your financial plan.
","url":"https://multiply.ghost.io/find-out-which-money-mindset-you-have/","uuid":"cc1ae9af-c852-4f11-9d2b-691b746cf03f","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5dc54f73db77ca0038eaca96"}},{"node":{"id":"Ghost__Post__5dc450858bb4f50038afe8e8","title":"Homes you could buy outright for £25k","slug":"what-home-could-i-buy-for-25k","featured":false,"feature_image":"https://images.unsplash.com/photo-1523351964962-1ee5847816c3?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Forget the mortgage, these properties are the price of the average deposit","custom_excerpt":"Forget the mortgage, these properties are the price of the average deposit","created_at_pretty":"07 November, 2019","published_at_pretty":"15 November, 2019","updated_at_pretty":"29 November, 2019","created_at":"2019-11-07T17:12:37.000+00:00","published_at":"2019-11-15T16:24:30.000+00:00","updated_at":"2019-11-29T15:12:40.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#feed","slug":"hash-feed","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"Getting and keeping up with a mortgage is hard. Usually, it means one less\nholiday here, fewer meals out there. But the reward is well worth the sacrifice.\nHave you ever wondered if there’s a different way? No, we aren’t talking about\nthe National Lottery. We’re talking about using your deposit to buy a place\noutright. Ignore interest rates. Dodge credit scores. Skip repayments.\n\nHere’s what you could buy for less than £25,000, the average first-time buyer\ndeposit.\n\nLocation, location, location\nWe all know those big cities and leafy ‘burbs are expensive, but venture to\nalternative pastures and there are some rough diamonds to be found. Last year a\n3-bed house in Lincolnshire was put up for auction with a guide price of\n£15,000, some work required. Similarly, a one-bed terrace in County Durham,\nwhich needs some renovations, was listed for £25,000. \n\nIf you’re willing to put some love\n[https://www.homify.co.uk/ideabooks/2094795/your-complete-beginner-s-guide-to-renovating-a-house] \ninto a place that needs work, you can make the price fit a modest budget.\n\nSome assembly required\nPrefabrication (flatpack houses built from scratch on-site) used to be a dirty\nword, but now it’s just a bit of a mouthful. As the quality of prefabs improves\n- even IKEA is getting in on the act\n[https://www.dezeen.com/2019/06/26/ikea-build-low-cost-housing-uk/] - so does\ndemand for them. Some at the lower-end will leave you with some serious change\nin your wallet. Like this cabin\n[https://www.tuin.co.uk/lauren-clockhouse-log-cabin-9.3x4m.html?gclid=EAIaIQobChMIqq2Qt5yh5QIVxeF3Ch2q0wpiEAYYBCABEgL3s_D_BwE] \nin the woods, or wherever you want it.\n\nSailor’s life for you?\nIt could be, if you don’t do seasickness. Many have taken to rivers and canals\nto save a bundle on the cost of buying a home. No wonder, with a section on a\nlarge boat costing as little £5,000\n[https://www.gumtree.com/p/boats-kayaks-jet-skis/-amazing-spaces-houseboat-section./1353680276] \nand a whole one as cheap as £18,000\n[https://www.gumtree.com/p/boats-kayaks-jet-skis/spacious-comfortable-characterful-static-houseboat/1349964234]\n.\n\nThe alternatives\nGo mobile: Most motorhomes\n[https://www.marquisleisure.co.uk/motorhomes/stock/used/max-price/25000] include\nall the standard mod cons, but with the added benefit of being able to move\npretty easily if you don’t like your neighbours.\n\nBuild your own: If bricks and mortar sound overrated, it might be time to turn\nto an earthbag home [https://home.howstuffworks.com/earthbag-home.htm]. They are\nconstructed of rice or feed bags that have been filled with dirt and soil and\nare stacked together like bricks to form a home.\n\nFancy tent: Yurts [https://www.yurtsforlife.com/14ft-kyrgyz-yurt/] have been a\nmainstay for festival-goers looking to upgrade from an Argos pop-tent for years.\nBut there’s no reason they couldn’t be used as homes, with sturdy exteriors and\namazing indoor décor.\n\nWherever and whatever your future home is, we know it’ll be great. Because it’ll\nbe all yours. Keep track of your property goal and look out for opportunities to\nsave for your home quicker.","html":"Getting and keeping up with a mortgage is hard. Usually, it means one less holiday here, fewer meals out there. But the reward is well worth the sacrifice. Have you ever wondered if there’s a different way? No, we aren’t talking about the National Lottery. We’re talking about using your deposit to buy a place outright. Ignore interest rates. Dodge credit scores. Skip repayments.
Here’s what you could buy for less than £25,000, the average first-time buyer deposit.
We all know those big cities and leafy ‘burbs are expensive, but venture to alternative pastures and there are some rough diamonds to be found. Last year a 3-bed house in Lincolnshire was put up for auction with a guide price of £15,000, some work required. Similarly, a one-bed terrace in County Durham, which needs some renovations, was listed for £25,000.
If you’re willing to put some love into a place that needs work, you can make the price fit a modest budget.
Prefabrication (flatpack houses built from scratch on-site) used to be a dirty word, but now it’s just a bit of a mouthful. As the quality of prefabs improves - even IKEA is getting in on the act - so does demand for them. Some at the lower-end will leave you with some serious change in your wallet. Like this cabin in the woods, or wherever you want it.
It could be, if you don’t do seasickness. Many have taken to rivers and canals to save a bundle on the cost of buying a home. No wonder, with a section on a large boat costing as little £5,000 and a whole one as cheap as £18,000.
Go mobile: Most motorhomes include all the standard mod cons, but with the added benefit of being able to move pretty easily if you don’t like your neighbours.
Build your own: If bricks and mortar sound overrated, it might be time to turn to an earthbag home. They are constructed of rice or feed bags that have been filled with dirt and soil and are stacked together like bricks to form a home.
Fancy tent: Yurts have been a mainstay for festival-goers looking to upgrade from an Argos pop-tent for years. But there’s no reason they couldn’t be used as homes, with sturdy exteriors and amazing indoor décor.
Wherever and whatever your future home is, we know it’ll be great. Because it’ll be all yours. Keep track of your property goal and look out for opportunities to save for your home quicker.
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