When I tell people I write a personal finance blog, most think I’m going to preaching NOT to spend money.

Yes, I started Magical Penny to spread the message of saving for tomorrow rather than spending today, but that’s not to say I’m all about hoarding my pennies.

In fact, I’ve been spending quite a bit, especially over the last couple of years.

And so in this spirit I’m making the announcement that I’m heading to Bali, Indonesia!

More specifically I’m attending the first ever One Life Retreat after receiving an invitation from the organisers. It’s very different to anything I’ve done and not exactly cheap but I can’t wait.

This might seem a little indulgent (and it is) but I have to thank Tom and Nick, the organisers, for making it possible for me to go.

We only have ONE LIFE, and it’s easier to take advantage of opportunities when you have a plan for your pennies.

Personal finance is all about finding the balance between saving and spending; balancing our future self’s prosperity with our present self’s current experiences.

I can’t wait, and see you on the other side!

Magical Penny articles have been featured in the following carnivals:

• Financial Simplicity
• The Carnival of Financial Camaraderie

Check out the articles, there’s some great ones.

And Finally

My friend Mike has A Summer To Serve. Consider helping him out and following along for the adventure!

The world is in a state of constant flux. It’s perhaps most notable when it comes to the price of the things you need to buy every year.

Naturally, when looking to maximise the amount of money that stays in your wallet, it makes sense to look around for the best deal possible. Price comparison sites have made it easier than ever to gain an understanding of the cost of some of the more popular and pricy purchases we typically have to make like allowing you to compare car insurance and house insurance.

Price comparison websites, however, can only go so far. Take note of these strategies to shave even more off the cost of purchases you need to make:

Haggle

Asking for a discount can be embarrassing for some but if you don’t ask you might not get. Try starting off with a low offer, perhaps around 60% of what you are hoping to end up paying and see if there is any flexibility in the price.

Use your new knowledge 

Once you have a good price from one company (through a price comparison site or in person), use the price point as a benchmark and continue to shop around. Often companies are so keen for your business they will price-match or throw in something extra as an incentive to win you as a customer. Just make sure you get a reference number or an agreement in place so you can go back to the original company if shopping around does not work out.

Sell yourself

Are your circumstances different to the norm? When searching for insurance in particular it can be beneficial to think of how you can sell yourself as a customer – if you have an advance motoring certificate or several years of no-claims you can sometimes get better rates.

Know when to stop

Sometimes the extra effort isn’t worth the discount or price saving. Remember to value your time and sanity. That said, spending a few minutes searching for the best deal can work out to be a very profitable use of time when done wisely, and  can save you more of your hard-earned pennies, month in, month out.

Good luck.

Do you have any smart-spending or money saving tips? Share in the comments

I was recently asked which three financial tips would I like readers to take away from this site, Magical Penny.

The question was asked to me in an interview with Karen Bryan at Help Me To Save. 

Here’s what I came up with:

My three tips that form the core of Magical Penny philosophy are:

1) Start saving SOMETHING today.

Even if you don’t think you have any ‘spare’ money (no-one has ‘spare’ money), just put the smallest amount away somewhere and then try to keep up the momentum every time you get paid. After a few months of consistent saving you’ll feel like a saving ROCKSTAR and you can begin to increase the amount you save as you exercise those saving muscles.

2) Read more about investing.

The internet has opened up a world of information. You can go from totally uninformed, to well informed about any topic quicker than at any point in human history. You don’t have to be a computer or finance whiz to learn the basic mechanics of investing and start growing your pennies.

3) Investing in cheap ‘Index’ or ‘Tracker’ funds.

They are better over time than almost all other funds because they match how the whole market performs and have the lowest expenses.

For the full interview click through to Karen’s site.

 

UK Personal Finance Bloggers Unite

The interview is part of the preperation for the first Write on Finance Blog Up, which will be held in Leeds over the weekend 22-23 September 2012.

The event is an opportunity for UK personal finance & money saving bloggers/writers and people working in the finance industry to get together (aspiring bloggers/writers and overseas attendees are also very welcome). The focus of the event will be on learning from each other, networking and looking at ways to work together to mutual benefit.

You’ll also get to see me speak on a panel at the event…appealing, right?

If you blog about personal finance or work in the financial industry it would be great for you to join us.

Book your ticket here.

They say you have to spend money to make money.

But often ‘they’ are people who are trying to sell you something (!).

It’s certainly true that spending money is not an automatic method to riches – if it were then we would all be very wealthy. But spending money can give you access to new ways to increase your income, if you spend it wisely on the right things.

Millions of people know this to be true when they sign up to attend university, so it’s funny that it took me a while to realise that spending money on education and new experiences AFTER university, can have huge benefits.

The Saver Becomes the Spender, but with Unexpected Results

When I first graduated I was a really good saver.

• I rode my bike in the rain to save money
• I didn’t do much travel.
• I wrote about the perils of window shopping.
•  When I wanted a new phone I gave myself a 30 day challenge and decided not to buy the phone in the end.

In short, I saved.

It was really rewarding to me to watch my savings account grow and eventually I started investing my savings and watched those grow further.

I found saving so powerful and fulfilling that I even started  a blog about saving and investing (Hint: you’re reading it now).

But after saving for a few years, I reached a turning point and I ended up SPENDING LIKE CRAZY in 2011….18 flights in total, a new laptop, and even some 5 star hotel visits!

But, despite all the spending, my income and savings grew too, and I got to meet the most amazing people and became inspired to play a bigger game in life.

For me, it was money well-spent.

And I’ve experienced first-hand the ‘spend money to make money’ expression: Because I DID spend money which allowed me to make more money!

Of course I had to put in the work but I’ve become much less hesitant to spend money if I can see how I can grow as a person and learn how to earn more money in the future.

I have a long life ahead of me, hopefully, and spending money on education and building a network, should help me exponentially in the future.

Spending Money on Education and Inspiration

I got to meet many sources of inspiration on my recent trip to America, including Chris Guillebeau. Chris is a hugely accomplished writer and adventurer who’s travelled to almost every country in the world (soon to be all of them!).

Meeting Chris

Chris’ most recent book is called the $100 dollar startup, which details how thousands of people have started businesses with less than £70 in their pocket and become huge successes.

I’m a big believer in both Chris and his message – and have actually achieved the very thing he is writing about, now that I’m self-employed and making a 4 figure monthly income from my adventures on the internet (which I started with just a website that cost me £6 a month for hosting).

So if you want to read the book, you’re in luck.

It’s not out for a couple of weeks but you can get it shipped to anywhere in the world (including the UK). It’s currently available in a larger bundle of business products around £60. And I think you should definitely buy the lot if you want to grow your pennies!

Along with the real-life book posted to your house, you’ll get £600 worth of information products about business for around £60!

But only for the next 72 hours….

As above, in addition to the hardcover book shipped anywhere in the world, this special bundle of information products at 90% off the true value.

Below is the full low-down (prices are in dollars so just imagine 2/3rds of the price for a dollar to British pound conversion…it’s a bargain in any currency, but only for 3 days!)

Products in this Only72 Sale (18 total):

Chris Guillebeau’s The $100 Start-up Book (Hardcover w/ shipping included)

Better Blogging ($177 in value) 

• Corbett Barr – Creating, Marketing, and Designing A Blog That Matters ($40)
• Susannah Conway – Blogging From The Heart (eBook version) ($137)

Passion-based Business ($137)

• Jonathan Mead — Identifying Your Passion Module + Workbook ($97)
• Scott Dinsmore — Live Off Your Passion (lite) ($47)

Freelancing ($111)

• Ashley Ambirge — You Don’t Need A Job, You Need Guts ($40)
• Men With Pens — Freelancer Package: Unbelievable Characters, Guest Posting Guide, Beyond Brick & Mortar eBooks ($70)

Confidence & Courage ($129)

• Johnny B. Truant — Tao of Awesome ($79)
• Marianne Elliot — 30 Days of Courage (w/ Yoga Module) ($50)

Selling & Advertsing ($144)

• Pam Slim — Ethical Selling That Works ($97)
• David Risley — Double Your Ad Income ($47)

Technology & Systems ($171)

• Joshua Kaufman — The Personal MBA Guide to Small Business Infrastructure ($49)
• Free The Apps — How to Make iPhone Apps ($97)
• Brett Kelly — Evernote Essentials ($25)

Artists & Writes ($130)

• Alyson Stanfield — Turning Your Hobby into a Career (download & audio program) ($51)
• Chris Guillebeau — Unconventional Guide to Publishing ($79)

Click here to get all the above, but make sure you do it before by Thursday at 5pm UK time.

They say you have to spend money to make money.

In this case, I hope I HAVE persuaded you to buy this great set of products for a hugely discounted price, available for 3 days only.

I can genuinely say these writers and similar products have helped me grow my magical pennies, so I had to share this with you so you can do the same.

Adam

I was reading a blog of one of my friends the other day and in his latest post he had admitted to using a payday loan to pay a bill.

I was really surprised because he had a well-paid job and from the conversations I’d had with him, and from reading his blog, I knew he was a smart guy. We had even got to know each other in a personal finance forum that taught good money management techniques!

I was surprised, yes, but while payday loans often get a bad reputation, I had to admit they are a great solution for a certain person in a certain situation. If you find yourself in need of cash immediately you can take out the amount that you need, use it and pay it back with your next paycheque.

But it’s really important not to get caught in the trap of using this as a consistent way to make ends meet when you don’t have the cash you need.

Check Your Reasons for Getting the Loan

Here are a few rules to keep in mind as you consider the use of payday loans. For more information on payday loans and other financial products, check out Money Supermarket.

Payday loans are for emergencies. When everything in on the line and you know that there will be real consequences if you don’t have the cash, it is time to check out a payday lender. If you find yourself consistently requesting money and paying it back later, look at some other long-term options that could be more helpful including budgeting or a credit card. Considering other options available, this is a costly way to borrow money. The fees alone make this an emergency situation only option.

Don’t Overextend Yourself

You are in an emergency and you need cash, so how much should you borrow? You don’t want to overextend yourself financially. Take out only what you need and only what you are going to be able to pay back. It can be tempting to see this as a credit line that you can borrow against but remember that there are fees associated with the loan. Get only what you need to keep your costs down.

Pay the Money Back as Soon as Possible

Unlike a credit card, you don’t have much time to pay back the payday loan. In most situations, you have two weeks or less to get the money that you borrowed back as well as any fees that you owe. Don’t borrow with the expectation of taking your time to pay it off sometime in the future. If you are late, those fees are going to steadily increase and you may find yourself sinking financially.

Look Over the Paperwork

The concept seems simple: you need money. A payday loan company lends you money. You pay the money back. But is not that easy. There are fees for borrowing the money, requirements for when and how the money must be paid back, fees and consequences for paying late. Even if you are planning to pay the money back right away and you think you know how much the transaction is going to cost you, read the fine print and ask questions if there is something you don’t understand.

Shop Around

If you are in a panic for cash, you may just want to head to the closest payday lender and get some cash. Before you walk out the door or enter your information online, take some time to look at all of the companies available to lend money. Some may have lower fees and more flexible payment plans. Every company is different and you want to be sure that you are paying the least amount of money possible to borrow from a payday lender.

LIMITED TIME…FOR 3 days from TODAY, Monday 30th April, there’s an awesome deal going on on products that honestly have helped me, and can help you, make money with a small start-up for $100. Real deal, but only for 3 days.

Back in March I announced on Magical Penny I was striking out on my own.

Strangely enough,  I had not intended to become an entrepreneur.

Growing up I didn’t aspire to work for myself, and didn’t have any entrepreneurial role-models. But over the last two years, I began to realise that I had become an entrepreneur.

It’s what happens when you start working on projects you’re excited about and clients start paying you (fun, right?)

In some ways it feels surreal, but it also feels completely natural. After spending my life on a predictable path (School –> University –> Career), transitioning to self-employment feels incredibly freeing!

If you are thinking of transitioning to self-employment, here are some things I’ve found invaluable over the last few weeks:

Blessing my Opportunity Fund

If you are thinking about the self-employment path, you should definitely consider building up your  ‘Opportunity fund’ (and you should do it even if you don’t have entrepreneurial ambitions)

As I sit in my empty home, staring at an empty page, it’s comforting to know I’ve got savings to keep the lights on and food in my stomach as I work out my next move. I would hate to be worrying about money when I’m trying to be creative and open to new possibilities and adventures.

Knowing I can survive for several months, regardless of how things work out in this new life is a good feeling. So start saving those pennies.

Work on projects on the side

Truth be told, despite the awesomeness that is an opportunity fund,  I haven’t needed to dip too much into the fund because I’ve actually been making revenue since I became self-employed.

In fact, I made more than a day’s salary on my FIRST DAY of being self employed – very much a wonderful surprise!

But it wasn’t luck.

I already had platforms and projects I was involved with before I became self-employed, which has helped a lot.

To be candid, this site, Magical Penny has been one good source of revenue for me since I began working for myself. You may have noticed a few more adverts on here, for example.  I’m not counting on living on advertising revenue alone but having a source of income from day 1 is better than not.

Build an Amazing Network

Meeting incredibly accomplished, driven, talented, giving, new friends

My ‘opportunity fund’ was a real catalyst for change because it funded an amazing trip to South by South West.

Booking a fight was the first thing I did after my last day of traditional employment – allowing me to network and party with some of the top creative minds on the planet, in Austin, Texas.

Over the next week, I had the most amazing time and met some incredible people doing important, amazing, inspiring, impossible things.

The internet allows you to discover, collaborate and work with amazing people who you might not have had access to in the past. But meeting these same people in person allows you to build deeper relationships and simply have fun with people who understand the self-employed (internet) lifestyle.

We’re all in this crazy world together and the power of a solid network of talented individuals cannot be overstated.

Already the relationships I formed or strengthened have begun to pay off in my life and my fledgling business.

These people also inspire me as I sit at my desk with a blank page, about to begin writing the next chapter of my new life.

Remember you don’t have all the answers

If any of this has resonated with you, you might be inspired to become self employed yourself. Whilst I won’t cheerlead you into that decision (I’m far too early on this journey myself but if you want to be persuaded you could read this… ), I will say that it’s only natural to be a little apprehensive about not knowing all the answers.

I certainly don’t have everything figured out. But don’t let that worry stop you if transitioning to self-employment is a meaningful goal for you.

Regardless of your current situation, you can find a way to build an opportunity fund, work on meaningful projects, and develop your network by reaching out to people doing cool things.

Once you’re doing that, then all you have to do is start hustling and working to help other people.

Help enough people and you won’t need to worry about growing your very own magical pennies

That’s my plan, anyway.

What do you think?

Let me help you learn to save and start investing and I’ll send occasional emails to you to help you on your way.

Are you extending your home? Make sure you consider the implications for your home insurance policy

Whether you’re extending your home, or simply redecorating, it’s always good to make sure your home insurance policy is up to date.

Building an extension is a great way to gain extra space without the hassle of moving. But you need to be aware that some extensions might have an impact on your home insurance policy – so do check before you start work. And it’s important to keep your insurer informed while you’re doing the work too.

With the high costs of buying a house, it’s no surprise that more and more people choose to stay put and expand their existing home instead. They may convert their loft to give them an extra bedroom and bathroom, or add an extension to make more space for an addition to the family. Adding conservatories is also very popular as they can create a very light and open space.

Other extension plans may involve changing how the living space is used. For example, if you want to be able to work from home, you may decide to convert your garage into an office, or build a summerhouse at the bottom of your garden so that you’ve got a designated work space away from your living area.

 Whatever your expansion plans, it’s important to check where you stand with your home insurance. And if your existing insurance is getting close to its date of renewal, you can also get some home insurance quotes to find the best deal.

Make sure you use trusted tradesmen

It’s a good idea to do your homework when you are using tradesmen or craftspeople like builders, plasterers, electricians and carpenters. Choosing the right one can be the difference between a good and bad job. Make sure they are reputable and qualified to do their work.

The best way to do this is to check that they are registered with a recognised governing body. Also, ask around with your family and friends to see if they can recommend somebody you can trust and rely on. And be sure the tradesmen you use have their own insurance for any work they carry out – as most home insurance policies will not cover them or their work.

Whatever you’re doing to your home, you should always keep your insurance company informed and updated. And whether you’re doing work or not, you should always have the right home insurance policy in place.

Halifax offers both home and contents insurance together. Visit Halifax’s website to find a great deal today.

The sunny weather in the UK recently might have made you forget about heating bills for a while, but it’s something you need to always be conscious about as minimising your energy usage and finding the best deal can have a big impact on the amount of money you can save more exciting and meaningful things!

Source: Find Energy Savings

How do YOU save energy?

If you want to take charge of increasing energy prices before they take charge of you, you’ve come to the right place. Learning how to maintain control of your energy bills is easy to do with a little know-how and the will to start saving money.

Research Your Options

The first thing you should do is head to the Internet. While you can pick up the phone and call most energy companies to ask about prices, the best way to research is to go to their web sites to see what rate plans they offer. This will not only give you a visual of their pricing structures but also provide you the time to compare several different companies at once. While you’re on various web sites, also take the time to look at the company blogs and any customer comments that may appear.

Understand Your Needs Vs the Contract

One of the trade-offs that many energy consumers encounter when searching for better service is choosing between lower electricity prices or a more flexible contract. Once you decide which company is best for you, do some extra research (for example, by talking with a supervisor via telephone) to find out what your options are for terms of service. You may be able to negotiate a more flexible payment plan or length of contract if you reach out directly to the company.

Green Energy?

Next, you should consider what you want your ultimate energy goal to be. If you are into renewable power, you should definitely research some green energy companies. This is one of the largest growing sectors in the energy industry in the UK, thanks to the aggressive campaign to establish more offshore wind power. Green energy has several advantages, including the chance to have a minimal environmental impact and use some of the newest technology in the energy industry.

Renewable energy may or may not be cheaper than your current supplier, but it could provide you with better service, which is something that many subscribers value just as much as money. This is because many green energy suppliers work on a local level, meaning that they remain close to their customers and take into consideration what these consumers would like to see from their energy service.

Conserving Energy

Once you decide to switch to the company that offers the most financial advantages for you, you can take your energy savings even further by conserving energy at home. Inexpensive installations such as low-flow shower heads, programmable thermostats, and sturdier insulation will only cost you a few pounds but could help you save hundreds of pounds in energy per year.

You should also consider upgrading your household appliances, namely the refrigerator, dishwasher, washing machine, and clothes dryer. These machines are constantly being improved by manufacturers so that they give better performance and use less energy, so if you have had the same appliances for near a decade, an upgrade can actually end up saving you money in the long run.

As a financially savvy homeowner, the best approach to take to tackling your energy bill is a multi-pronged one.

Switching energy companies can help you save up to £400 each year, but the savings challenge doesn’t end there. Becoming more energy efficient at home can also help you keep more of your hard-earned money, so keep thinking of ways to save energy for a fuller pocket and a more stable bank account.

It’s Carnival Time!

Personal finance blogs have been such an inspiration for me over the years. They make the topic of finance less taboo and less mysterious.

This can also be inspiring and inspirational. Reading personal finance carnivals allows you to browse a selection of the best blogs and articles, curated by the host of the carnival: more quality articles in one place.

Magical Penny is honoured to have been included in a number of carnivals in recent weeks. Click through and enjoy:

• Household Budgeting Carnival
• Carnival of Financial Camaraderie
• Totally Money Carnival
• Carnival of Personal Finance #352