Month: April 2021

UK Statistics Show More Britons are Now Placing Savings in Passive InvestmentsUK Statistics Show More Britons are Now Placing Savings in Passive Investments

The 2020 UK Savings Statistics revealed that an average UK citizen had saved £6,757, while Adult ISAs fell from a previous £6,466 in (2017-18) to £6,049 (2018-19). The findings also indicated that the average amount placed in investment programs rose from a previous £994 to a current figure of £1,020. Even if minimal, the latter info indicates that UK citizens are now making conscious efforts to improve their personal finance by placing their savings in passive investment programs.

Moreover, the report also showed that the number of Adult ISAs had increased to more than 11 million (2018-19), when compared to the previous 10 million plus in 2017-2018. The UK’s Individual Savings Account (ISA) program for one allows citizens to hold cash, shares, and a mixture of securities by way of unit trusts; whilst earning extra by way of tax-free dividends, capital gains and interest income.

Even more encouraging is that the number of Junior ISAs is also rising, as statistical data indicate that nearly 50,000 additional accounts were opened in 2018-19. Apparently, there is an increased number of British parents who are also investing for the future of their children.

UK Citizens are Overcoming Their Lack of Confidence in Investing Their Money

Financial service providers believe that one of the things that is holding back other Britons from investing their saved money is their level of financial literacy. According to a 2017 survey study commissioned by Bank of Leumi, nine (9) out of ten (10) UK think that they are undereducated when it comes to personal finance, more so when it comes to investing.

Due to this knowledge gap, fintech innovators have made their services more transparent and easier to understand. That way, more consumers will have greater confidence in placing their money in passive investments once they have a better understanding of their options.

One such UK fintech firm that has taken this initiative is True Potential Investor a digital wealth management company based in Newcastle City upon Tyne.

In 2014, the firm collaborated with the Open University to establish the True Potential Center for the Public Understanding of Finance. The goal is to provide public education about savings and investments to help UK adults map out financial plans for a better future. The center’s free personal finance courses have since become very popular among adult Britons looking to improve their financial literacy.

A Quick Glimpse at True Potential Investor

Using a True Potential Investor review published in the Ask Traders website as reference, we learned that this digital investment management company was founded in 2007 by a group of professionals with extensive experience in providing investment management services and developing financial services technology. The company has made it their mission to help UK citizens grow their savings. Doing so will empower the latter to easily meet goals of saving enough funds that will enable them to settle in comfortable retirement in the future.

True Potential Investor (TPI) provides a user-friendly robo-advisor platform with mobile app support. Unlike other providers of fully-automated services, those looking to invest their money with TPI can try out the digital investment services even for a minimum amount of £1. Once an account is set up online, a TPI member can choose any of three types of savings account, namely:

• Stock & Shares Individual Savings Account (ISA),
• General Investment Account (GIA)
• Personal Pension Account.

Based on a TPI member’s investment risk preference, they will further select one of five options deemed as the suitable portfolio management approach for their savings account. The five portfolio options are labeled according to the type of risk involved, namely: Balanced, Cautious, Defensive, Growth and Aggressive.

Simple Ways to Pay Credit Card Debt that WorksSimple Ways to Pay Credit Card Debt that Works

If you are having a hard time paying for your due to outstanding balances from your credit card, then now may be the time to rethink of your finances. It is essential to come up with a plan on how to zero it out and start fresh. Luckily, there are strategies and tips that can help you out. It may not work for everyone but it’s enough to give ideas on how to carry out your plan.

Focus on One Debt at a Time

Do you have balance from several credit cards? If yes, then be sure to pay the least minimum among each credit card. Then after, concentrate on paying the total balance on one card. There are actually a couple of ways on how you can do this:

1. Review the interest rate of your statement of account. By doing so, you’ll figure out which charge among your credit card has the highest interest. Once you do, focus on clearing that out and then move on to the lowest ones.
2. Pay the credit card that has the smallest balance then take the cash you’re paying for it and use it in paying the one with the next smallest balance.

Pay above the Minimum

As you are reading your card statement, you’ll see there how much is the minimum you should be paying on your credit card. If you opt to pay only for the minimum balance, it is going to take longer in paying off the bill entirely. Unlike if you make a bit of sacrifice in paying more than the minimum required, you’d be paying less in overall interest.

Your credit card company has to chart this to your statement so by that, you could see how it is applied to your bill.

Be Clear on Your Priorities

You have to start categorizing your spending on a monthly basis. To give you an example, figure out how much you are spending on your groceries, housing, leisure, transport and so on. Your credit card statement can be an invaluable tool as well since many issuers are categorizing the spending on the statement.

Once done, figure out areas where you could cut back. After that, take the money you have allocated and use it as additional payment on your outstanding balance.

Patience and Discipline

Indeed, it is difficult to get out of debt. But with a bit of determination and patience and application of some of these tips, you can succeed.