Blog

Keys to Financial Freedom: Introducing the side hustle

2020-02-28T00:00:00+00:00

In the eternal quest to increase income, fulfil our financial desires and achieve financial stability, it seems everyone has gone crazy over the side-hustle. With the average side hustle raking in £6600 on average extra after tax, and 1 in 4 people in the United Kingdom with a side hustle, it’s no wonder that maximising revenue streams is on the tip of everyone’s tongue.

For many of us that are freelance workers, modern workers, part-timers or on zero hours, side hustles can give us a bit more stability in turbulent times. Having an extra source of income when bouncing from job to job can come in handy when there are bills to pay and you’re short on cash from your last project or piece of work. Saving up for a mortgage, paying off credit-card debt, or even starting an investment portfolio - whatever goal you have, a side hustle can help you make significant headway with making your dreams a reality.

The question is then, how does one get involved with side-hustling? And more importantly, how do you monetise your side hustle to be worth doing at all?

Don’t worry - Portify has you covered. Here are our top tips on how to monetise a side hustle in 2020.

Top Tip number 1: Figure out what skills you have

The first step to building a profitable side hustle is to start with what you know. What are you really good at? If you’re a writer, explore the possibility of freelance work through sites like LinkedIn and Upwork. If you’re a strong photographer, consider either lending out your camera, or starting off building a clientele through friends and family. If you have really strong ecommerce skills, get rid of a bunch of your old clothes through ebay and etsy. Start with what you know. It lowers the initial investment costs as you’re doing something you already have some skill in.

Top tip number 2: Use the snowball method and gain momentum

Now, it’s really tempting to go big and cast your net far and wide. Contrary to popular belief, we’d advise you to start off small and snowball your way to clients. The focus should be on building meaningful and consistent relationships, building a great customer or consumer experience, and get organic traffic with one thing at a time. Doing too much too soon will result in the entire foundation crumbling. Identify a few clients or customers - this can include your friends and family (at first!) That makes it easier and more manageable — plus you have plenty of data points to help you scale. Secure a few projects and clients before you go big. For example, if your side hustle is selling old clothes and belongings, don’t sell everything you have at once. Pick a few specific items. Test it and see if you can make a sale. Then see if you can make a couple. And then you can add to your inventory if this is successful — or, pick another product.

Top tip number 3: Be consistent

There’s no getting away from consistency folks! Whatever you focus your energy on tends to do better and prosper. Although you may be pressed for time, you still need to figure out a way to make your schedule work. It may be dedicating an hour or two per week to exploring your side hustle. For example, if you are a freelance copywriter working a full-time job, you may want to dedicate a few hours either before or after work, or on the weekend, to stay on top of your writing gigs.

You can stay on top of how much you are earning from your side hustle by downloading Portify and making use of our cash flow features here. The road to financial freedom begins now.

That’s not all from us! We’ll be picking up this topic in more depth in the coming weeks - we want to make sure you have all the tools at your disposal to maximise your income. Until next time!

Join our facebook community for updates, inspiration and to connect with others on their journey to financial freedom.

Revealed: 10 UK Banks set to hike up the overdraft fees in 2020

2020-02-19T00:00:00+00:00

In our last article on overdrafts, we touched on the general changes being made as a result of the FCA rehaul of the overdraft market. The Chief Executive of the FCA, Andrew Bailey, was appalled that the market was ‘causing significant consumer harm’, and passed new regulations outlawing daily and monthly fees for overdrafts. In 2017 alone, banks made over £2.4billion from overdraft fees with 30% coming from unarranged overdrafts alone. However, the UK banking industry responded with new overdraft rules. The banks responded with new near identical responses and hikes to their overdraft fees that raised even more concerns for the FCA. We’ve compiled the overdraft changes and the new corresponding interest rates for proposed to go into effect in April for 10 UK banks.

10 top UK banks and their overdraft interest rates as of April 2020:

We’ve had a look at some of the top current banks available to you in the UK. Here’s a comprehensive list of what the changes will look like for each standard current account.

Barclays: Annual interest rate of 35% on any arranged overdraft, with a £15 interest free buffer.
NatWest/ RBS: Annual interest rate of 39.9% interest rate with a £25 interest free buffer.
Starling: Annual interest rate of 15% - 33% depending on customer’s credit score.
Santander: Annual interest rate of 39.9% interest rate.
Nationwide (flexdirect account): Annual interest rate of 39.9% interest rate.
First Direct/M&S Bank: Annual interest rate of 39.9% with £250 interest free buffer.
Metro Bank: Annual interest rate of 34%.
Monzo: Annual Interest rate of 19% - 39% depending on customer’s credit score.
TSB Classic: Annual interest rate of 39.9%.
HSBC: Annual interest rate of 39.9% interest rate with a £25 interest free buffer.

So what does the overdraft fee changes mean for me?

Reduction in cost for small arranged overdrafts:

Those of us who use an arranged overdraft of £50 over seven days will see their overdraft fee drop from an average of £1.99 to 18p, with five of the ten accounts reviewed now charging less under the new changes coming into effect.

Greater penalty for regular use of larger arranged overdraft:

Unfortunately, for those of us that tend to dip into a larger arranged overdraft, the average fee for an arranged overdraft of £500 over 30 days increases - from an average base of £8.96 to £10.29.

Savings for accidental overdrawn accounts:

The average fee for an unarranged overdraft of £50 over seven days across the banks reviewed is £26.87. However, under the new changes in place, this reduces to an average of 20p. Those who may dip into a slightly larger unarranged overdraft also experience a reduction - dipping £500 across 30 days reduces from an average of £54.91 to £8.06.

How can I deal with my overdraft in light of these changes?

Fear not! We’ve already got you covered - we’ve written a whole blog post on managing your overdraft effectively. Check out the post here to get your finances in line.

We’re also able to predict how likely you are to go into debt at a given time with our in-app features. Download Portify here to access this indicator.

Supermarket savings on your weekly essentials

2020-02-13T00:00:00+00:00

Financial freedom is a direct result of practising healthy financial habits - saving a few pounds at the supermarket could mean the difference between staying on course and going into your overdraft. And, with the average UK buyer increasing their spend in supermarkets every January, we want to make sure that you don’t fall victim to common pitfalls when handling your spend.

Why do we spend so much in supermarkets?

Impulse Buying:

Many of us spend money unnecessarily because we are wooed by items we had no intention of buying when we entered the supermarket. Worse still is impulse buying when hungry - you’re not only more likely to buy calorie-dense ‘junk’ food, but much more likely to spend more too.

Branding Trap:

A lot of us get caught up in the lure of big brands. For some of your grocery essentials, you could be spending up to £10 more unnecessarily.

Lack of Comparison:

Getting the biggest bang for your buck may be down to weighing your supermarket options together. Fortunately, there’s plenty of resources on the internet to help you figure out where to get your groceries from pretty cheaply. A study conducted by Which revealed that Sainsbury’s was the cheapest supermarket in 2019.

How to reduce your supermarket spend:

Write a list:

Seems pretty obvious, but writing a list can be the difference between impulse over spending and sticking to a tight budget. It means you enter the store with intentionality to purchase what you need - nothing more, nothing less.

Be aware of shelf life:

If the majority of your groceries are perishables, this may cause you to purchase more than you need when your foods expire even if you haven’t used all of it up yet. You can either opt for frozen or chilled goods which have a longer expiry date, or you could opt to freeze some of your leftover goods for use at a later date.

Choose your luxuries carefully:

Who doesn’t love the more luxurious things in life? As much as this is the case, it’s still pretty important to make sure that you’re not unnecessarily forking out big bucks for items that you can buy at up to half the price. Opt for supermarket-brand necessities when you can - we promise, it tastes just as good!

Coupons and loyalty card programmes:

Coupons always mean big savings! Coupons can be found online, in your local newspapers and occasionally in newsletters sent over to your home. Be proactive in acquiring these to decrease your overall expenditure. Have a look into loyalty ca

Bring your own bags:

It may not feel like a big step, but having to pay an extra 5p - which may be set to rise to 9p - adds up in the grand scheme of things. Be intentional about stacking shopping bags and reuse them. You can keep them in your car, or you can leave them at the side of your home entrance to make sure you don’t forget them on the go.

And there you have it! Some of our top tips to make sure you make the most out of your groceries and minimise your expenses. It’s your turn to see how much you can save on your shopping next week!

Extra resources:

For more general help on budgeting, check out our article here. To see how much you currently spend on groceries, download Portify here.

Dealing with Debt: Overcoming a Court County Judgement (CCJ)

2020-02-05T00:00:00+00:00

You may have come across a County Court Judgement in passing, or you may currently have one taken out against you. Whatever knowledge level you have when it comes to CCJ, we want to make sure you have the most up to date and relevant information when dealing with the order. Whether you are on the brink of a CCJ, recovering from one, or trying to avoid having one taken out against you in future, keep reading for our quick breakdown.

What is a CCJ?

A creditor may apply for a CCJ against you if they think you won’t repay money you owe them. A CCJ is a type of court order issued against you to formally instruct you to pay the money back, and will arrive in the post. It is added to a public database - specifically, the Register of Judgements, Orders and Fines - which informs lenders that you have been unable to repay a loan you have taken out.

A CCJ, if recorded, will remain on this register for six years - irrespective of whether you have paid off or settled your debt. Although your CCJ may be marked as ‘satisfied’ if you repay your debt prior to the end of this period, it still stays on your record.

How will a CCJ affect my credit score and profile?

A CCJ decreases your credit score: The average decrease in credit score is around 250 points.
A CCJ makes it harder to access credit: Lenders will use the information available from your credit profile to figure out if you are ‘creditworthy’, and having a CCJ can send a strong message to creditors that you won’t repay back your debt.
A CCJ makes may increase your credit interest rates : It is also likely that if you are offered credit, you’ll be charged a higher interest rate as a result.

What to do when you have a CCJ

Pay it off:

You must ensure monthly instalments are made to your creditor, agent or solicitor. Contact details are available on the CCJ document you originally received. It may be worth setting up a standing order if you have a regular source of income and can afford to pay back at the rates specified.

Apply to change payment terms:

If you find that you can’t stick to the payment schedule made by the court there are two possible avenues:

Redetermination:

This allows you to ask the court to review the payments you were told to make to the CCJ and change them if they were too high. However, you can only apply for a redetermination if your creditor refuses your initial offer and the court made a determination about the rate of payment. Your application also must be received no later than 16 days from the date of judgement on the CCJ judgement letter.

Variation:

You can apply for this at any time for a small fee, if your circumstances change and you aren’t able to meet the initial payment agreement. You’ll need to fill in the form N245 Application for suspension and provide details of your income, living costs and debt

Apply to have the CCJ cancelled or ‘set aside’ if it should not have happened: You need evidence that you weren’t aware of the CCJ, or you’d already paid off your debt.

How to rebuild your credit score after CCJ

Check out our other blogs: We’ve written extensively on ways you can increase your credit score. Have a look at our blog posthere.
Meet the repayments for your CCJ and all other credit agreements: Making regular payments and eventually paying off your CCJ in a relatively short amount of time looks better to credit lenders than an unsatisfied CCJ.
Seek professional free guidance: Free guidance can be sought from the Citizen’s Advice Bureau, which can be found here.

Join Portify to manage your finances and access interest-free financing here.

Dabbling in Debt: Managing your overdraft in 2020

2020-01-27T00:00:00+00:00

You may be well acquainted with banking lingo and the reality of borrowing from your current account provider, but in light of recent changes to overdrafts in the UK, it’s worth revisiting a few bits and pieces of the foundational information before we dig into the big changes - as well as what this may mean for your everyday banking.

What is an overdraft?

An overdraft is a type of debt. This usually takes the form of an arranged borrowing of money through your bank, attached to your current account. You may either request for one, or it may be an automatic offer with your agreement when you open a bank account. Albeit a type of debt, overdrafts can help you avoid extra fees when you’re unable to make payments for bills - especially when you don’t have enough money in your current accounts to pay this off. There are two main types of overdraft:

Authorised overdrafts: You agree a borrowing limit with your bank and you can spend money up to that limit through all the normal payment methods.
Unauthorised overdrafts: Known as unplanned or unarranged overdrafts - this occurs when you spend more than you have in your bank account without agreeing it in advance, and often incurs a fee.

Overdrafts in the UK: A quick glance at the statistics.

One in four Brits (25%) admit to going into overdraft over the past 12 months, according to a study of 2,000 Brits. The average amount that British citizens go into overdraft by per month is £721. And 12.9 million people overall have been overdrawn at least once in the past few months. 33 million people (which make up over half of the UKs banking population), rely on unplanned or planned overdrafts.

So what’s changing?

In efforts to tackle high levels of unauthorised overdraft charges, the Financial Conduct Authority has implemented new regulations:

From April 6th 2020, UK banks and building societies will no longer be able to charge daily or monthly fees for overdrafts.
Flat rate overdraft fees are being introduced by banks in the range of 19 - 40% due to the changes implemented by the FCA.
Overdraft advertisements will need to come with interest rate clearly displayed.

What does this mean?

Interest on overdraft will be charged as a single annual rate (APR).
The interest rate on unarranged overdrafts will no longer be higher than arranged overdrafts.
You will now know just how much an arranged or unarranged overdraft will cost you in the long run.

How can I manage my overdraft in light of these changes?

Spend less each month: It’s a no brainer, but the best way to manage your overdraft is to stay out of it. Make sure your expenditures are accounted for and reduce where necessary. Our last blog post goes through the pros and cons of popular budgeting frameworks. You can read it here and decide for yourself what works for you.
Treat your overdraft like a bill and pay into it each month: Many of us have the wrong mindset towards our overdraft. Whilst in many ways, it can act like a safety net or buffer, treating it like so can severely hinder your progress getting out of debt and prevent you from prioritising it as a debt to pay off. In fact, many people treat arranged overdrafts like free money. If you treat your current overdraft like a bill that needs to be paid regularly, you’ll end up assigning a portion of your income to ensuring that your overdraft is dealt with.
Stay in the know with your bank: Many of us are guilty of ignoring our post from the bank, text message updates on fees, or even our emailed bank account statements. Make it a priority to check in with your current bank account provider to find out how these changes will impact your overdraft.

Get a feel for how likely you are to go into overdraft by checking out our cash-flow features in Portify now!

For further assistance and more information on overdrafts, check out the resources below!

Budgeting like a Boss: best ways to manage your budget

2020-01-21T00:00:00+00:00

Budgeting can often be harder than it sounds. With so many guides, templates and suggestions on how best to save your money, it can take a while before you figure out which one works best for you. Fear not! Team Portify are here to help you with the process! We’ve outlined three of the most popular budgeting plans below, with a short summary, worked examples, and important points to consider before adopting the approach. Also, bear in mind that an excel spreadsheet can be used to manage any of the following options - no need for fancy resources to get you started. Without further ado, let’s get right into it!

1) The Piggy-Backing technique

How does it work?

The Piggy-backing technique involves the setting up of multiple ‘piggy-banks’ which operate like savings pots. You will need to choose the categories for your little pots. From groceries, to rent, to vacations, you pick what are your most pressing and pertinent ‘piggies’. After choosing what those pots will be, you need to regularly deposit money from your income into these pots - in essence, you need to regularly ‘feed the piggies’!

Will it work for me?

There are some great benefits to the Piggy-backing technique. This budgeting plan helps you ensure you have enough for some of your essentials, such as paying your bills. However, you will need to balance your budget and figure out how much you actually spend for each ‘piggy’. It may be particularly difficult if your income is volatile and you do not earn roughly the same amount of money each month.You also need to pick the categories for each saving pot, which can become cumbersome and tiring to keep track of if you end up having quite a few. Some people set up standing orders from their main account into their savings pots to help with this.

Worked example:

Start with a monthly income of £2,000

– Savings pot 1: Housing - £750

– Savings pot 2: Groceries - £ 200 entertainment, phone, gym, vacation fund

– Savings pot 3: Transport - £150

– Savings pot 4: Entertainment - £150

– Savings pot 5: Savings/Retirement - £400

– Savings pot 6: Phone bill - £50

– Savings pot 7: Vacation - £300

Our Verdict:

Pros:

- Great way to easily see how much you spend for specific categories of spend.

- Sets up a transparent system of financial accountability.

- Ensures essentials are always taken care of.

Cons:

- Can be tricky to manage if you do not earn the same amount of money each month.

- Administratively intensive and can take up time if you have accounts with a non-traditional bank.

- Need to be on top of your finances to ensure your current account has sufficient funds.

- Savings pots may work better with long term savings.

2) 50/30/20 Budget

How does it work?

The 50/30/20 budget works by allocating fixed percentages of your income to specific categories of expenditure. You need to allocate 50% of your budget for your essentials, 30% for extras, and 20% for debt and savings. This helps you to reduce your needs to 50% of your income - essentially, anything that would dramatically affect your life if you were to go without it.

Will it work for me?

The great thing about the 50/30/20 budget is that it allows for income flexibility. If things change and your income either increases or decreases, you can apply the same principles. However, this budget plan may not work for someone with high amounts of debt, or someone who is actively towards financial independence - particularly if you need to allocate a higher rate towards your savings.

Worked example:

Start with an income £2,000

– 50% of £2000 = £1000 for housing expenses, transportation, food.

– 30% of £2000 = £600 for entertainment, phone, gym, vacation fund.

– 20% of 2000 = £400 for savings/retirement, extra debt payments.

Verdict:

Pros:

- Offers consistency for those who have income volatility.

- Ensures a proportionate amount of money is directed towards your savings.

- Ensures essentials are always taken care of.

Cons:

- Can be tricky to stick to those percentages for those who want to save more or have high debt repayments.

3) The Zero based budget (ZZB)

How does it work?

The zero-based budget essentially means that you must budget until all of your income is accounted for. This means you make use of every penny of your income and tend to each of your commitments well in advance - for instance, savings, debts, and spends until you reach zero.

Will it work for me?

For this plan, you will need a full understanding of your income and expenses. Guessing won’t cut it for the ZZB method. You’ll need to grab your paychecks, bank and credit card statements. You will also need to track and categorise your spending and expenses. Account for things like mortgage, rent, utilities, insurance, transport, debt payments, savings, investments.

Worked example:

Start with £2,000

– £700 for housing expenses

– £160 transportation

– £200 food

– £240 entertainment

– £300 debt

– £400 savings/retirement

= £0

Verdict

Pros:

- Great way to take full charge of your finances and expenditure.

- Ensures every single penny of your income is accounted for.

- Ensures essentials are always taken care of.

Cons:

- Can be tricky to manage if you come across any unforeseen circumstances.

- Requires strong discipline and high administrative skills to account for all expenditures.

Try out the budget you think works for you this month, and see how it works out practically! Don’t forget to join our community on facebook where we talk about all things finance and financial goals!

Portify can help you with tracking your expenditure with our cashflow tools in app. Download Portify here and start taking control of your finances today.

Saving in the New Year: Getting back on track after Christmas

2020-01-16T00:00:00+00:00

We all know December can be a pretty expensive time. Amidst the holiday season, buying gifts for family and for many, an early paycheck - things can spiral out of control pretty quickly.

The Bank of England estimates that the typical UK household overspends by up to £800 during December However, at Portify, we’re dedicated to ensuring you get a firm grip on your finances and we want to make sure you’re set up for success this 2020.

Here are some of our top tips to making sure that you get the best out of your finances long before they get the best of you:

1. Evaluate your current financial situation

It may go without saying, but it’s incredibly important to get an idea of exactly where you’re at right now. In order to get to where you want to go with your finances, much like planning a real cab journey, you need to input your current position.

Print out or print screen your bank transactions for December (ouch - we know it can be painful) and get a picture of how much you spend on each theme. For example, how much did you spend on entertainment, gifts, food and more in December? Then you can spend some time identifying where your greatest expenditures were. You can also check out the Portify cashflow features to manage this in App.

Did you overindulge on the turkey (we don’t blame you) or did you have a cracking time on fun activities with the family? Either way, diagnose the problem - then we can find a solution!

2. Create a practical, time-bound financial goal

Now you have a better idea of where you are at, you can create a more realistic goal. For example, if you’re currently in your overdraft or behind on some loans, it makes sense to make that your number one financial priority ahead of everything else. Make your goal numerical and time bound for extra clarity and security. There are great goal tracking resources on the internet - as well as built in templates on Microsoft excel.

For example, if you are £500 in your overdraft, aim to erase your overdraft and get back to a specific balance of £500 in credit within a month. That way, it makes it easier for you to track your progress and assign actionable steps to reach your goal. Adjust based on your salary, financial situation and capacity to reach your goal.

3. Reserve a percentage of your income to reach your goal

You might be tempted to focus solely on paying back any debts straight away. However, it may lead to further issues down the line if you don’t consistently deal with your priorities. For example, you may be in credit-card debt due to expenditure during the holidays, but you may also need to pay your rent and your utilities bill.

One way to deal with this is to ensure you’ve taken care of essentials first, and assign a portion of your salary/ income in a percentage to paying off your credit-card debt.

4. Find creative ways to minimise your expenditure and avoid impulse spending

Don’t just minimise your expenditure - try to focus specifically on the areas of over-indulgence. We’ve warned you! A research study conducted by Whistle estimates that a whopping 60-70% of what we purchase in stores is unplanned. Don’t get caught out by the tantalising offers on shelves when you go shopping - you already got caught out in December! Plan and account for everything you intend to buy.

That means you might just have to put your UberEats account on lockdown for a month and opt to meal prep ahead of work, school or other commitments. If you spent a lot on clothes and accessories - it might just be your month to find out how many ways you can style those three coats you own differently each day.

Or, if you’re a chronic spender in the travel department, cracking out your good old bike or finding ways to walk not only decreases your expenditure but increases your physical activity. Win-win!

5. Seek professional help when you can

Only one third of the nine million Brits in significant post-December debt ask for professional help. Sometimes, it can get a bit overwhelming, or sometimes you need an external sounding board to help you with getting your finances in order. There are lots of free resources and debt advice providers, like the Money advice service. Click here to find out more information on how you can access these services.

Being intentional about getting your finances back on track after holiday expenditure is a great way to get closer to financial stability in 2020. Not only will these tips help you get back on track - they can also be more generally applied to your personal financial management to get yourself in order.

We know how important it is to make sure you get a picture of your finance - that’s why Portify’s cashflow tools are so integral to your success.

You can download Portify here to access these tools.

Remember: You aren’t alone. Join a community of users on their road to financial freedom here.

On the road to Financial Freedom: Catching up with Francesca

2020-01-09T00:00:00+00:00

Catching up with one of our Brand Ambassadors, Francesca Brooke-Fenton!

We caught up with one of our Brand Ambassadors, Francesca, currently working in marketing and promotion for various brands, as well as modelling with Fashion Fiesta. She’s been a Portify user for almost a year now, and Francesca is a very passionate advocate for mental health.

1) What are you working on right now?

“I have previously been involved with a charity called Bethany smile for children with terminal illnesses. I was also a model in Fashion Fiesta, an organisation which supports various charitable causes. This year, Fashion Fiesta took place on 28th November in support of Lee Fancourt Mental Health Fund and Teenage Cancer Trust.

I’ve recently self-referred myself to Live well Leeds which celebrates women feeling good together to start her road to recovery. I think it is important to normalise mental health issues. ‘It’s okay not to be okay’ she stresses and works tirelessly in fundraising efforts and activism to facilitate this.”

2) Why do you use Portify?

“The quizzes! I watch out for them every day! It’s a great way to build on my financial knowledge and I try to complete them as soon as they open.

I also use the cash flow features and Flex Finance to manage track my expenditure, and I find it useful to have the ability to manage my multiple income streams.”

3) What are you saving up for right now?

“I’ve just opened my Help to Buy account and have now started saving up for her mortgage deposit. I’m excited as I’ve wanted to start buying a home for a long time - and now I have!

Holiday! I’m planning to have a great 35th birthday in 2020, in none other than the famous Ibiza! I’ve always wanted to take her friends and family to another country, and has recently been able to start saving towards my landmark 35th birthday.”

4) If you had a million pounds, what would you spend it on?

“Sounds cheesy, but I want to buy a house for my mum. I’m a really family-orientated person. I want to make sure my mum is settled with full ownership of her house.

5) Where can we follow and support Francesca?

You can follow Francesca Instagram: @francescabrookefenton

You can add her on LinkedIn at: Francesca Brooke-Fenton

Join Portify to manage your finances and access interest-free financing here.

Making the Most of Christmas: Top Tips to Save Money During the Holidays

2019-12-15T00:00:00+00:00

Keeping your purse happy and healthy during the holiday season

The Holidays are fast approaching, and we at Portify are sure that many of you can’t wait to take some time to rest, recharge, spend some time with your loved ones - and dig in to some quality food!

Now the December holidays is a notorious time for spending. Presents, sales, reductions and more are the name of the game. However, at Portify, we want to make sure our community are ahead of the crowd when it comes to your Christmas bargains. Here are some of our top tips when it comes to saving as much money as possible during the Christmas season.

1) Be Honest About What You Can Afford

Many of us have grand plans for what we want to holiday season to look like, feel like and taste like. It’s great to have a big old vision for the time, but sometimes our vision outstrips our capacity to afford it. Sometimes, we need to sit down with ourselves and be frank about what we can afford without putting our finances at risk.

A great way to make sure you’ve got a handle on what is coming into your account is checking insights on the Portify app - we’ve got cashflow tools to help you manage exactly what comes in and when.

Write down what your current income is, and write up a list of all the things you want to purchase. If your second list total expenditure is higher than your income, it’s worth thinking more critically about what you can afford, realistically, to spend.

2) Prioritise Your Expenditure

Very much related to the prior point, it’s important to prioritise what needs to be taken care of in light of your current income and responsibilities.

Ensure you have taken care of necessities, such as bills, non-negotiable direct-debits and groceries before you spend on other holiday-related items. That way, you’ll reduce any stress that may come as a result of unpaid bills and unaccounted expenses.

3) Sell Your Old Belongings Ahead of Christmas Season

Secure some extra cash and make sure you sell your old belongings ahead of Christmas. Sometimes we have items floating around that we don’t really use, but may sell for a price which may increase your overall Christmas income. Take a look at what you haven’t used in a while and could do without, and sell on popular online market sites. It’s a great way to replenish your account after holiday spending too!

4) Buy Your Groceries At the Cheapest Supermarkets

Make sure you leverage your opportunity to save on necessities like groceries. Aldi, Lidl and Asda have consistently ranked as some of UK’s cheapest supermarkets. Purchasing your items at cheaper supermarkets will decrease the cost of total grocery expenditure, which is super useful at a time like Christmas when you may be cooking for either more people - or just cooking more food in general!

5) Start Saving and Buying Early to Afford Christmas Gifts

It may go without saying but don’t wait until the last minute to purchase Christmas gifts! It’s not necessary to buy presents all at once, or wait until the day before Christmas to purchase presents.

You can either begin to buy gifts well in advance, or spread gift purchase over the last few weeks of Christmas to give yourself time to scour sites like eBay and Amazon for cheaper deals.

Be smart and savvy this Christmas with our top tips. Enjoy the holidays and set yourself up for financial success at the same time!

Mind over Mortgage: Credit scores and Your Mortgage

2019-12-08T00:00:00+00:00

How your credit score affects getting your first mortgage.

On last week’s Portify blog post, we talked about the fundamentals on everything to do with mortgages. This week, we’ll be talking about how your credit score affects your mortgage rates, as well as practical steps you can take to build your credit score. Essentially, your A credit score is a tool used by lenders to help determine your eligibility for certain credit cards, loans and mortgages. A mathematical model to calculate a numerical score that represents your credit history and your profile as a borrower.

So what exactly does my credit score affect when it comes to mortgages?

Mortgages are based on risk-based pricing. Lenders can increase the cost of your mortgage for every risk associated with your credit profile. The higher your credit score is, the better your terms will be. Your credit score can affect the following:

Repayment rates:

When you take out a mortgage, a monthly repayment rate is the amount you pay towards your loan per month. Lenders want to know that you’re reliable and they’ll get their money back when they loan you money for the remainder of the cost of your property. If you have a lower credit score, your repayment rates may be higher to account for this.

Interest rate:

A mortgage interest rate is the annual cost of borrowing money from your lender. The average rate is based on the mortgage bond market, the loan to value ratio, and your credit score. The LTV is the difference between the value of the loan you take out and the value of the property as a whole, expressed as a percentage. Similarly to repayment rates, lenders may increase or decrease the interest you pay on your mortgage based on the likelihood of you defaulting on the loan.

Homeowners insurance:

Although not compulsory, credit scores can affect how much you’ll pay for private homeowners insurance. Generally, the better your credit score, the easier and cheaper it will be to secure homeowners insurance.

Interested in how this will translate to real-time payments? Check out the Loan payoff calculator here. by moneyunder30 to test out how different interest rates will affect your monthly repayments.

How can I build my credit score?

Make a commitment to review and build your credit history:

It’s much harder to get a mortgage with no credit history - interest rates may be higher or less competitive. You can check your credit score for free using Experian, and credit checks have no impact on your score.

Make payments on loans, credit cards and bills on time each month:

It may go without saying, but it’s important to keep in mind the importance of timely repayments of bills, loans and credit cards. This sends a strong statement to lenders and brokers about your trustworthiness.

Close unused accounts with large credit limits:

If you aren’t using an account that has a large credit limit, the amount could send a negative message to lenders about your creditworthiness. For more on credit scores, check out our blog here.

Lastly, sign-up to Portify to access our upcoming credit-building features - we’re currently working on a few changes to make sure you’re in tip-top shape for getting the keys to your new house. Sign up here.

Extra Resources:

Blog

Keys to Financial Freedom: Introducing the side hustle

Top Tip number 1: Figure out what skills you have

Top tip number 2: Use the snowball method and gain momentum

Top tip number 3: Be consistent

That’s not all from us! We’ll be picking up this topic in more depth in the coming weeks - we want to make sure you have all the tools at your disposal to maximise your income. Until next time!

Join our facebook community for updates, inspiration and to connect with others on their journey to financial freedom.

Follow us on social media here!

Revealed: 10 UK Banks set to hike up the overdraft fees in 2020

10 top UK banks and their overdraft interest rates as of April 2020:

So what does the overdraft fee changes mean for me?

Reduction in cost for small arranged overdrafts:

Greater penalty for regular use of larger arranged overdraft:

Savings for accidental overdrawn accounts:

How can I deal with my overdraft in light of these changes?

We’re also able to predict how likely you are to go into debt at a given time with our in-app features. Download Portify here to access this indicator.

Supermarket savings on your weekly essentials

Why do we spend so much in supermarkets?

Impulse Buying:

Branding Trap:

Lack of Comparison:

How to reduce your supermarket spend:

Write a list:

Be aware of shelf life:

Choose your luxuries carefully:

Coupons and loyalty card programmes:

Bring your own bags:

And there you have it! Some of our top tips to make sure you make the most out of your groceries and minimise your expenses. It’s your turn to see how much you can save on your shopping next week!

Extra resources:

Dealing with Debt: Overcoming a Court County Judgement (CCJ)

What is a CCJ?

How will a CCJ affect my credit score and profile?

What to do when you have a CCJ

Pay it off:

Apply to change payment terms:

Redetermination:

Variation:

Apply to have the CCJ cancelled or ‘set aside’ if it should not have happened: You need evidence that you weren’t aware of the CCJ, or you’d already paid off your debt.

How to rebuild your credit score after CCJ

Don’t forget to join our community on facebook, where we share the latest tips, releases and new financial quiz every week! Join here!

Join Portify to manage your finances and access interest-free financing here.

Dabbling in Debt: Managing your overdraft in 2020

What is an overdraft?

Overdrafts in the UK: A quick glance at the statistics.

So what’s changing?

What does this mean?

How can I manage my overdraft in light of these changes?

Get a feel for how likely you are to go into overdraft by checking out our cash-flow features in Portify now!

For further assistance and more information on overdrafts, check out the resources below!

Budgeting like a Boss: best ways to manage your budget

1) The Piggy-Backing technique

How does it work?

Will it work for me?

Worked example:

Start with a monthly income of £2,000

– Savings pot 1: Housing - £750

– Savings pot 2: Groceries - £ 200 entertainment, phone, gym, vacation fund

– Savings pot 3: Transport - £150

– Savings pot 4: Entertainment - £150

– Savings pot 5: Savings/Retirement - £400

– Savings pot 6: Phone bill - £50

– Savings pot 7: Vacation - £300

Our Verdict:

Pros:

- Great way to easily see how much you spend for specific categories of spend.

- Sets up a transparent system of financial accountability.

- Ensures essentials are always taken care of.

Cons:

- Can be tricky to manage if you do not earn the same amount of money each month.

- Administratively intensive and can take up time if you have accounts with a non-traditional bank.

- Need to be on top of your finances to ensure your current account has sufficient funds.

- Savings pots may work better with long term savings.

2) 50/30/20 Budget

How does it work?

Will it work for me?

Worked example:

Start with an income £2,000

– 50% of £2000 = £1000 for housing expenses, transportation, food.

– 30% of £2000 = £600 for entertainment, phone, gym, vacation fund.

– 20% of 2000 = £400 for savings/retirement, extra debt payments.