Do you know how much you are paying for your ISA investments?

(SPONSORED POST)

We (rplan) did some research and found that 89% of people had no idea how much they were paying for their ISA investments (and that's excluding the 30% who thought it was free.) 
In reality, you are most likely paying two sets of charges: when you buy the investment (the initial charge), and then on an ongoing basis (usually calculated annually.)
Why is this important? The charges can have quite an impact on your investment. 

ISA charges can seriously affect your investment

For instance, the initial charge can be up to 5% of your investment; the ongoing charge is usually around 1.5% for funds, and less for passive funds or ETFs. Over 10 years, these charges add up.
We found that the difference between the most expensive and a cheaper option could be up to £6,300 if you invest the full ISA amount each year. That's a big difference.
This is why we created a tool to see how much you could save on your investments by switching service provider. 

The tool is available here - it is free and easy to use. 

Simply enter how much you have invested currently and your current provider, and see how much you could save.
The charges you pay go to the fund manager (you are paying them for performance) and to the service provider (you are paying them for service.) Your service provider could be a financial adviser (IFA or bank), a broker, or an online service. In the case of a financial adviser, you are paying for the quality and frequency of the advice; in the case of a broker or online service, for their tools and customer service.
The key to understanding whether you are getting good value for money is understanding how much you are paying. Armed with that knowledge, you can then decide whether you are truly spending with power; and the savings could be significant.


Blog post by rplan.co.uk

The psychology of shopping: how men and women shop

(SPONSORED POST)

Did you know that every time you step into a shop, there are a million and one things that are designed to make you part with your cash? 

Have you ever popped to the shops to buy milk and come home with a bag full of shopping?

 It's annoying how they place the milk at the back of the shop, isn't it!

An international bestselling book 'Why We Buy - The Science of Shopping' gives an insight into some of the ways retailers use psychology to make people buy more, and it seems that men and women are targeted in very different ways.

Its author, Paco Underhill, has spent years observing shoppers in retail environments. If you want to shop smarter, you might be interested by some of the book's insights.

First of all, not everybody who walks into a shop knows whether they will buy anything. 60 to 70% of purchases in supermarkets are 'unplanned'. A store's success depends on how many shoppers it can convert into buyers.

Frugal tip: Don't go shopping unless you need something

Merchandise, where products are placed on the shelf (eye line products sell the most) the smells and lights, the blast of warm air as you enter the shop, the layout of the aisles: it can all determine whether you buy - and lead you towards a product you never even knew you wanted.

Targeting Women

Mr Underhill says shopping environments are geared towards women, as women generally choose most of the purchases, including mundane things like groceries.

Family-friendly shops have wide aisles for prams and push-chairs, some provide crèches or children's play areas and special parking spaces for mums. These shops want to attract the 'decision makers'.

Cosmetics and toiletries are generally a woman's domain and women like to take their time to read the packaging before they buy. In one study, 63% of women who bought something in a chemist read the packaging. So you'll find that the cosmetics aisle is usually secluded and private to give them time - so they'll buy more! In department stores, greater pressure tactics are used - most of the beauty products don't have price tags, and women feel embarrassed to ask the lady behind the counter how much something costs, and end up buying it anyway.

Frugal tip: Don't be embarrassed to ask how much an unlabelled item costs before you buy it.

Targeting men

According to Mr Underhill, 65% of men they observed who tried on an item of clothing bought it, whereas only 25% of women did so. Women enjoy the experience of trying different clothes on, whereas men seem to find it stressful. Retailers try to make the men's changing rooms easy to find - as they're likely to get a higher conversion rate.

Frugal tip: Men - if you try on an item of clothing - you're statistically more likely to buy it.

86% of women look at price tags, whereas only 72% of men do. While Mr Underhill believes that men ignore price tags to 'prove their virility' - what it really means is that retailers find it easier to upgrade men to more expensive products, whereas women are more cautious.

Frugal tip: Look at the price tag before you buy and decide whether you really need it.

It's interesting to see how retailers use the psychology of shopping to make us spend more - they're well aware of how we will behave in certain conditions. Next time you're out shopping, think about whether the purchasing decision you make is one you came to by yourself, or whether someone pushed you along a little bit. You may be surprised!

This article was provided by Lucy Bower from thinkmoney.co.uk, where she's been writing frugal tips for almost a year now, and is thoroughly enjoying the frugal lifestyle because of it!

How much cleavage should you flash at work?

Sarah Brummitt, image consultant.

Thanks to Sarah Brummitt (right) for airing the important issue of cleavage in a corporate environment.
I must admit, I've long been bewildered by the trend for boob-flashing at work. 
And now it seems that more mammaries equals less salaries.
Sarah, an image consultant and training and development consultant, keeps us abreast of this issue:

Last year, a survey commissioned in the UK suggested that women who display too much cleavage at work could end up sabotaging their careers. More than 3,000 managers found that almost half of bosses would overlook a woman for promotions if she regularly exposed her cleavage.

Is this fair? Or is it sexist nonsense? Is cleavage cool or crass at work?

I'm not a prude - and as a small chested woman I can appreciate a fabulous bosom as much as the most hot-blooded male...but.......a glorious cleavage in the office is just not on. It's a distraction to both men AND women - but for different reasons.

1. Men see it as a clear 'come on' sign OR, they are so embarrassed they don't know where to look.

2. Women can either be continually distracted (I know I am because one of my colleagues insists on regularly exposing her cleavage and I can't help but keep looking.......). The altenative female response is to elicit some good, old-fashioned, bitchy jealousy and loathing.

As an Image Coach, I'm all about personal brand - helping professionals create a perception by colleagues which conveys the real essence of them; their reputation; their unique expertise. 

Who on earth wants to be known as the girl that always has her baps on show? 

It's not right and it's not fair, but the reality of still working in a predominantly male-orientated work environment means that to succeed in business we need to be viewed as credible, professional and authoritative.

A woman can't do that if her boobs are out.

So, ladies please - a glorious bosom is for a date, a cocktail party, a social event. It's not for the office. So button up, put them away and create a focal point somewhere else. May I suggest the face instead?

Thanks Sarah - check her out on www.sarahbrummitt.com. Thank goodness the good old polo neck is coming back into fashion.

And remember, psychological research confirms that the image you portray may be at odds with the one you intended. 

You may think that a flash of cleavage is cool, alluring even. 

They may think you look like a lap-dancer. 

Think about it next time you dress for the office and keep in mind that less is probably more.

GUEST POST FROM KATE NIGHTINGALE

Did you know women buy half their body weight in clothes every year? We're lucky enough to have a guest blog here from Kate Nightingale, Style Psychologist, with great tips on how to spend wisely when adding more weight to your wardrobe this summer! We've also added some extra cheap fashion tips at the end - for those on a strict budget.

Kate recommends:

Kate Nightingale, Style Psychologist

5 SUMMER STYLES FOR UNDER £200

You leave home in the morning and the sun is shining. You look up and feel the warmth of the sunshine on your face and almost instinctively start to smile. Yes, summer’s here!

You smile when seeing the sun but do you smile when dressing up in the morning? Do you think you need more money to achieve the right look? You really don’t need to spend a fortune. I've created 5 summer looks here all under £200, so you don’t have to feel guilty after spending your hard-earned money.

   WHITE TAILORED

This trend is all about crisp and sharp lines. The clothes are simple and elegant in white with ecru and cream. A cool look for hot city days, though I wouldn’t advice this trend for lawyers, accountants and finance specialist. White, in these professions, still seems to be reserved for informal occasions.

Make this trend work with a white suit that you look good in, accessorised with a simple white top and sandals.

Kate has chosen Mango white Nastacia suit – jacket £89.90 and trousers £49.90, white cotton vest by H&M £5.99 and simple beige sandals by H&M £24.99. 

The total for this look is £170.78.

     FLORALS

A fun trend for summer! There are plenty of flowers around at this time of year, why not get some florals into your wardrobe too? A truly perennial trend  that will come back every spring/summer season.

Here I've created an outfit that is simple, elegant and understated. You can wear floral trends on the beach easily, but this shows you how to make it work for the evening. 

Kate has put together Monsoon fusion kew embroidered dress £85, Zara patent sandal with jewel and bow £59.99 with a Monsoon brooch gold clutch £35 and chandelier earrings £12. 

The total for the outfit is £191.99.

        

COLOUR BLOCKING

A statement a trend for the woman who wants to be seen. The colours are bright and the combinations striking. An elegant and comfortable look for people working in fashion or media, though perhaps only the bravest city workers.

Kate has put together Zara double cloth pink skirt £25.99, red loose top £29.99, satin colour block sandal £39.99, patent red shoulder bag £39.99. 

The total for the look is £135.96.

NAUTICAL

A trend that adapts easily to any body shape and occasion. It’s ideal for weekends but equally suitable for a summer day in the city.The basic colours are white, navy and red. The dominant patterns are stripes.

This is a weekend look that's casual but still elegant.

Kate has put together Mango white jeans £24.90, Esprit navy striped jumper £14.99, Kurt Geiger red patent pumps £75 and Ted Baker Ikon red handbag £24.50. 

All together £139.39.

 SEVENTIES

A decade of hippies and disco freaks. It’s full of floral and ethnic patterns, maxi dresses, platform shoes and big accessories. The colours are quite natural, browns, oranges, reds, yellows and greens.  Make this look work by sticking with basic garments and investing in accessories. Or get the full look by investing in a pattered garment and adding lot of cheaper accessories.

Kate has combined H&M floral print maxi dress in dirty orange £29.99, Miss KG brown platform sandals £45 and some H&M accessories, ethnic bracelets £6.99, feather necklace £5.99 and faux crystal ring £3.99. 

Definitely the cheapest trend at only £91.96. 

Thank you to Kate,  whose passion is helping women to express themselves through their own personal style.

See her website www.katenightingale.com

SHECONOMICS TIP:

Don't be tempted to buy more clothes if you're already in debt or have a bulging wardrobe and a cash crisis. Here are some Sheconomical tips for the cash-strapped fashionista....

• Trousers getting worn out or too hort can be cut-down into summer shorts - wear  with opaque tights on less-than sunny days
• Whites, such as blouses and t-shirts, can be given a new lease of life by using a whitener in the wash (try Dylon Ultra Whitener)
• A cheap length of bright ethnic fabric works well as a sarong, shawl or wrap-round top
• Jaded or boring garments can be revived by dyeing them bright funky colours 

Just when you thought it was safe to go back to the office.....

the toddler gets chicken pox, the after-school club gets axed and your childminder emigrates to Siberia in search of an easier life.

Working mums have been a regular blog topic here on Sheconomics, and we've been lucky enough to have Becky from Babybudgeting give her view on family finance as well as the fabulous Jessica Chivers giving us a sneaky heads-up on her new book Mothers Work!


So I guess those two ladies, with their fingers on the pulse of the working mum, won't be surprised to hear that 'desperate need of money' drove 80% of mums surveyed by Philips AVENT back to the day job. 


That still leaves one in five mums returning for the sake of their sanity, rather than for the salary, which is something that Jessica's research had highlighted. In Mothers Work! Jessica talks about how mums cope with (apart from the guilt) the crippling costs of childcare and how some mums simply couldn't afford to go back to work. The Philips AVENT survey showed that almost half of them get round this by roping in the grandparents. A further 40% decided that the average £4,280 a year that childcare costs simply made it not even worth thinking about getting the business suit back on. That figure is a modest estimate, according to Jessica, who says the cost of employing a nanny can escalate to £22,220 p.a. outside London.


Jessica's view is that parents need to get creative about the way they organise childcare, and they need to become better negotiators. That includes pay rises, not being shy about promotion and asking for flexible working, an arrangement that appealed to 70% of the Philips AVENT respondents. 


Becky has lots of good advice on how to manage a budget that's been squeezed by the arrival of a baby and you can watch her discussing it here with money advisor Sue Hayward. 

The value of a mum in cash terms is £?

WE'RE VERY HAPPY TO HAVE A VISIT FROM BECKY FROM BABYBUDGETING.CO.UK WHO IS OUR GUEST BLOGGER TODAY.

HERE'S WHAT BECKY HAS TO SAY:

Hi I'm Becky and I blog over at Baby Budgeting (www.babybudgeting.co.uk) a 

website for families trying to be savvy with their finances. I am also the 

author of How to afford timeoff with your baby (Vermilion 09)I am a  stay at 

home mum and freelance writer and I do everything around the home. I should 

be a rich womn apparently!

Legal & General have just released some research which finds that the unpaid 

work a Mum does around the home would cost £30,032 to replace (and the 

equivalent for a Dad would cost £21,306).

Here are some more nuggets ( to be used when you need them!) from the 

“Value of a Mum” survey :

-       Despite many Mums working they still spend an extra nine hours a 

week with the children compared to Dads.

-       Mums are still feeling that the burden of looking after the home 

falls to them, with 45% wishing that their partners would do more to help 

with housework and childcare.

-       Even those mums who have part-time jobs don’t hugely reduce the 

amount of time dedicated to parenting – the value of part-time worker mums 

is £28,664 compared to the value of those who don’t work, £31,523

-       The day to day costs of looking after children have gone up 8.3% 

over the last two years, rising from £132 a week to £143 and a massive 31% 

since 1999 when the figure was £109.

Mums do really important unpaid work around the home and they are 

increasingly combining this with a full or part-time job, which means that 

their families are getting pretty good value for their efforts!

The research highlights just how easy it is to underestimate the value of 

the unpaid work parents do and the importance of planning for a future where 

one parent may be unable to work due to illness or bereavement.  It shows 

that 42% of mums and dads feel people should have financial protection in 

place in case anything were to happen to them, but in reality only a quarter 

(24%) of them actually do.

So where’s my 30k then?


Has anyone seen it...?



THANKS BECKY.
DON'T FORGET TO POP OVER TO HER SITE FOR LOTS OF FAMILY FINANCE TIPS

Working Mums...it’s not (necessarily) about the money

THIS WEEK WE'RE THRILLED TO HAVE A GUEST BLOG POST FROM JESSICA CHIVERS. JESSICA IS THE THINKING WOMAN'S COACH AND HER BOOK MOTHERS WORK! WILL SOON BE PUBLISHED BY HAY HOUSE, HELPING MUMS TO GET A GRIP ON GUILT AND MAKE A SMOOTH RETURN TO WORK.

“But you don’t need the money so why are you doing it?” is a common reaction to a mum bemoaning the difficulties of combining paid work, a caring role and household duties (the so called ‘triple bind’ of working motherhood). 

But that misses the point of why many women go to work, mother or not.

In a survey of 200 working mothers I discovered money really isn’t the be-all and end-all of working. 

But then I think we all knew that anyway. 

Given the option to escape a demanding preschooler,  service your brain cells, go to the toilet in peace and get apreciated for doing something well that you enjoy, surely you’d grab it with both hands?

Whilst many mothers want this, the financial cost of working can be prohibitive. The average annual cost of a nanny outside London is £22,220 gross. That’s about £93/day with four weeks holiday pay (NannyTax wage survey 2009). Not bad for the nanny. But fairly grim for the want-to-be-working mum. When writing my book, Mothers Work! I met several mums who’d love to go back to work, but can’t make it pay. Like the cook with three children under five, and the events manager who couldn’t finance the childcare for the long hours the job demands.

So what can we do about this? One: we need to get creative about the way we organise childcare. Two: we need to become better negotiators. That includes pay rises, pitching for promotions and asking for flexible working.

It’s been said that men will apply for a job if they can do 30% of it.  Whereas women who can do 70% of the job will um and ahhh over the 30% they can’t do.

As women,we need to claim back our confidence and ask for what we want. That might mean asking dare I say it (*mock shock horror, Edward Munch hands of face pose*) daddy to ask his employer about flexible working so he can do more of the childcare. Or having the brass neck cheek to demonstrate why a pay rise is in order in the middle of a recession. I could go on.

Think of the money gained if you could work one day a week at home (OK, it would actually be two evenings - there’s no way you’d get more than an hour’s work done with a toddler – the guilt would get you before he got bored of the telly). And think of the extra saved for a rainy day if fathers were ‘working from home’ on another day too.

For some there may be the option of roping in the friend or rellie who thinks being around children all day every day is such a good thing that they question why you’re working when you don’t need to....

Do what you need to do and ask for what you want!

THANKS JESSICA  - INSPIRING WORDS AS ALWAYS. FIND OUT MUCH MORE ABOUT JESSICA ON HER FABULOUS WEBSITE (PACKED WITH TIPS AND INSPIRATION)!

Guest blog from Allison Mitchell

THIS MONTH WE ARE THRILLED TO HAVE A GUEST BLOG FROM ALLISON MITCHELL.
Allison is the brain-child (like that Allison?) behind MANICMUMS.COM. 
She has applied her wealth of expertise about time-management in business to making home life more streamlined, efficient and... well, less manic. 
And since, as they say, time is money we thought we'd love to have some wise words from Allison here....

Put off Procrastination!

The cost of putting things off is always greater than the price of doing them. There, I’ve said it. 

At its most simple, the dish washed straight away is done quickly, the dish left overnight requires effort to tackle the crusty residue. 

But we’ve all done it, haven't we?  The report written in the dim glow of midnight oil, the jerry can walk of shame, when the car was running on vapor, wearing yesterday’s knickers when the cupboard was bare (or is that just me?)

Anyway, if your life swings along to the tune of, ‘The Sun’ll Come Out Tomorrow’  and you live in the knowledge that tomorrow is always a day away, you could well be living with the emotional costs of procrastination on your bottom line. But, it’s not all psychological, have you ever calculated the hard financials?

What about the cost of that parking fine?

‘Manana,’ the ticket whispered sweetly in your ear until the fee doubled.

And hey, why were you ticketed in the first place? Oh yes, you left for the interview at the last gasp and had to park on double yellows.

‘Tomorrow, tomorrow, I love you tomorrow,’ said the tax return, due January 31st, but oops, before you knew it, February arrived, along with the penalty notice.

I could go on, but you’ll think I’m a nag. Suffice it to say, if you're the kind of person who wouldn't leave a burning building until the flames were licking their bottom, then it may be worth considering what procrastination is really costing you. Please, please don’t say you’ll think about it later!!

==========================================================================

Thanks Allison, find out more about Allison's work here.

Bartering for Business

This month we're thrilled to bring you this guest blog from Sam Pearce (left) founder of Mum’s The Boss, an award-winning support network for mums in business.

If you are in business your aim should be to sell your product or service and to make money. But there are times in the lifecycle of a business when bartering can be of enormous help.  

The concept of money as a unit of purchasing power is something which has evolved over the years and is now accepted as the norm. However bartering still goes on in communities where cash is not available, such as prisons (where cigarettes form the basic unit of currency) or the school playground (where children regularly swap or trade the contents of their lunch box). Early civilizations relied on the exchange of goods and services to survive.

As a small business owner, cash flow can make or break a business. Bartering comes into its own whenever cash flow is tight, particularly when trying to get a new business off the ground and later when a business is going through a process of rapid growth.

The importance of a support network

Top of your to-do list, as a business owner, should be to build a support network. This can include family, friends, social networking sites, business forums, a business coach or mentor, mums in the school playground, face to face networking – it all counts. People often view ‘networking’ as a means of attracting clients and generating sales. But your support network can be just as crucial when it comes to sourcing suppliers, partners and other business owners to collaborate with.

Here are just a few examples of ways you can utilise your support network when cash is tight:

• How a new business can benefit: 

1.     Setting up a professional infrastructure. When you are a new business you want to hit the ground running – this might mean having a website, business cards, promotional materials, a logo, etc. The problem is, you probably don’t have the cash available to pay for all of this upfront, and you don’t quite have the skills to do it yourself. So now is a good time to barter some of your product or time to get a really professional image right from the start.  

2.     Building up a portfolio. When you are a new service provider you have the chicken and egg problem of needing clients but having no evidence to support what you do, save perhaps some qualifications. This may be the time to barter some of your product or time in return for testimonials, a design portfolio or ‘Clients’ listing. 

3.     Getting yourself seen. Advertising is a costly business, which is why business owners invest so much of their precious time networking. However, sometimes you just need to get your business in front of people. Can you barter some time or product to get some promotional material produced or for free advertising or advertorial content?

• How a growing business can benefit:

1.     Upgrading your infrastructure. If your business is growing quickly you may find yourself outgrowing your website, your premises or your brand. In order to capitalise on your success and your momentum it is often necessary to make large upward strides before you can afford to pay for them. Now may be the time to barter for a new website with added functionality or some help fine-tuning and developing your brand.

2.     Getting the support you need. Or it may be a case that you lack the confidence or knowledge to take your business to its full potential. This may be the time to barter for some coaching. Sometimes a small amount of fresh input at the right time can make all the difference. 

3.     Outsourcing, freeing you up to do what you do best. You’re in a time/money trap where you can’t yet afford to outsource, but you need more time to grow your business. If you can barter with a couple of suppliers to outsource your admin, book-keeping, PR, etc, it can free you up to get on with the important business of making more money so you can then start to pay these suppliers. 

• How to barter successfully

Our business would never have got off the starting blocks without bartering. We have bartered yearly memberships in return for a new website from a fledgling web designer and free advertising in magazines; offered free advertising on our website in return for sponsorship, discounted venue rates and a virtual tenancy with a business incubation unit; and received free business books in return for reviews;  the list goes on.   Successful bartering depends largely on the quality of the relationships you build. To barter effectively for your business you should:

·       Build genuine, strong relationships with people before you need their help

·       Be generous – if you’ve helped someone out they are much more likely to help you in return at a later date

·       Be honest about what you need and what you are prepared to offer in return

·       Highlight the benefits to both parties

·       Always keep your side of the bargain

·       Don’t be afraid to ask – but give people the option to say no and still remain friends!

Whether your business provides a product or a service, remember you always have your own personal unit of currency available at your disposal. As long as both parties are happy with the deal, the ‘monetary’ value of the exchange is irrelevant.  And don’t underestimate what you have to offer – just because it’s not ‘hard cash’ doesn’t mean it’s not exactly what someone else is looking for.

Mum’s The Boss provides online business resources on its  blog and runs face-to-face child-friendly networking groups across 6 counties. 

Thanks for some great advice Sam. 

Check out her fabulous website www.mumstheboss.co.uk