Archives for March 2018

Factors contributing to UK manufacturing output at its highest for 10 years

On January 10 2018, the Office of National Statistics reported a boom in the manufacturing Industry, attaining its highest output since February 2008. Moreover, after recording a seventh consecutive month of growth in November 2017, it is enjoying its fastest rate of expansion within the same period under consideration.

According to EEF, UK manufacturing currently –

accounts for 45% of total exports
contributes 10% of GVA
employs 2.7 million people
provides 14% of business investment
represents 68% of business research and development (R&D)

That is not all, for if the comments by Lee Hopley, chief economist at manufacturers’ organisation EEF are anything to go by, further growth is expected. She said – “Manufacturers’ expectations for the year ahead point to output and export growth being maintained through this year on the back of continuing support from a burgeoning global economy. This, together with an ongoing commitment from government to deliver on its industrial strategy, will be crucial in helping to propel the sector forward.” Good times seem to be ahead.

However, what changed? What are the reason for the boom experienced by the manufacturing sector in the last 10 years?

Two factors have contributed to this; they have been the main drivers –

Global growth
Weaker Currency

Global Growth

The boom in global growth is helping to drag along the UK manufacturing sector. With the Financial crisis behind us, the three powerhouses of global growth – the USA, China and Europe – performing strongly at the same time, customers doing well and technology demands are ever increasing, export has increased.

That has led to car exports, for instance, rising rapidly and manufacturers in the flow control industry such as Hopkinsons have experienced strong growth. This is helped by the production of partly finished goods bought by other firms to piece together finished products.

The rise in new orders has led to more exportation in the manufacturing sector while also leading to job creation. The exportation particularly has resulted in a closing of the trade deficit between UK and the rest of the world.

Weaker Currency

From this seemingly position of weakness has come an advantage. Following the Brexit referendum, there has been a fall in the value of the sterling. This has made UK exports more competitive and as a result has driven up the demand from the UK. With the pound weaker, export has boomed as overseas countries find the currency value more favourable. Companies have seen rising export requests from the US, Europe and the Middle East.

Another way the fall of the value of the pound is that it ironically increases the value of foreign earnings. A fall in pound means an increase in value of other currencies, so all exports and foreign investments will yield more dividends and profit.

A weaker pound increases local demand for domestic products as well. With the cost of importations increased, consumers are more inclined to buy UK manufactured goods. This is also a boost for small manufacturers.

There is every reason for the wave of optimism spreading in the UK manufacturing sector. Output has been on a steady upward climb for 10 years and the forecasts and importantly, factors for the increase, only further spell success for the sector.

Financial Tips for Success in 2018

By Frugaling 1 Comment

financial success

I think it is safe to say that everyone dreams of having financial success. The problem is that most people deem it as “dreams” because they are not doing the necessary things in order for them to be successful.

So, if you’re part of the populace that wants to be financially successful in life, then you would want to read this article. Today, I am going to give some amazing financial tips for success in 2018.

1. Know Where Your Money is Headed

Are you the type of person who just spends their money without even thinking for a second where it actually goes?

There’s a staggering number of people who do not have an established budget and that unhealthy financial habit is keeping them from achieving financial success.

If you want to have a stable financial standing, you need to know where your money is headed. Create an established budget detailing where your money is going to be spent on.

You would want to include your utility bills, credit card payments, food, and all of the important expenses. Of course, you could set aside some for leisure and some for emergency expenses as well.

My point here is that you need to make an inventory of your spending.

2. Get Some Insurance

There are certain things in life that can be mitigated. Some of these “things” include your medical expenses, expenses when you become disabled and so on.

For you to cut your spending on these expenses, you need to get an insurance. The three main things that you need to get are Health, Disability, and Life insurances.

3. Use Your Credit Card Sparingly

A lot of people have credit cards nowadays and they use it for purchasing pretty much everything. Although convenient, people seem to forget that whenever they use their credit cards, they actually use money in return.

We all know that credit cards have a higher interest rate compared to your ordinary loan. To help you use your credit cards sparingly, why not use real cash instead?

You can use a cash advance instead of a credit card as it has more favorable rates and has easy repayment terms.

4. Save for a Retirement Plan

In the event that you get your first job, it is quite tempting to spend your salary on the things that you really want to buy.

Saving for a retirement plan is key if you want to have financial stability when you retire. It is, however, often overlooked by many young employees.

Ask if your company has a 401(k) retirement plan and be sure to avail it. If your company doesn’t have one, you can opt for an IRA.

5. Surround Yourself with Successful People

Our relationships have a huge impact on our lives in that they can affect the decisions that we make.

If you have unhealthy spending habits, you might have been spending your time with like-minded individuals.

Changing your bad habits can be hard, but it can be done. You just have to surround yourself with successful people.

Doing so will allow you to absorb their knowledge and wisdom and they will teach you how to become successful in life.

Of course, this would also mean that if you were having bad habits, that you have to eliminate them in order to be successful.

Conclusion

Having financial success and stability can be done. It is not a dream; it is something that you can accomplish. Surrounding yourself with successful people, creating a budget list, saving your money towards your retirement are just some amazing tips on how you can be financially successful in 2018.

How to Get the Best Credit Score Possible

By Frugaling Leave a Comment

While once bad credit was a problem that only affected a few, it’s now much more common. While people may know that bad credit affects their ability to own a home or buy a car, they may not know much more about it. By understanding what affects your credit and how to improve your credit score, you’ll be better prepared to repair your financial circumstances.

How to Repair Bad Credit

While some companies may try to promise a quick fix, there’s no shortcut to achieving a better credit score. It’s going to take hard work on your part and an ability to show that you take your financial responsibilities more seriously to get a better credit score. To begin, you should write out a monthly budget to determine where your money is going. This is especially important because you need to ensure you’re not spending more money than you’re making. This can lead to more borrowing and relying on credit to pay your bills is no way to rebuild to a good credit score.

Speaking of bills, it’s also vital to your financial reputation that everything gets paid on time. This is the most defining factor in establishing your credit score, either for better or for worse. To rebuild your credit, you must be able to show that you pay your bills on time and that you don’t fall behind. If you are behind, try to get caught up as soon as possible, even if that means making new payment arrangements.

Consider cautiously borrowing short-term easy installment loans with a solid plan to pay them back according to the agreed upon terms. If paid back in full in accordance with the loan agreement, the result will be a positive account on your credit report. As one can guess, this leads to a higher credit score.
The days of paying off the minimum on your credit card debts are long over, as well. It’s time to begin reducing your debts and that means paying off the principal balance. Reorganize your budget, so you can put extra money towards this debt each month until the entire balance has been paid off. Additionally, resist the temptation to use your credit cards, once they are paid off.

Getting Rid of Negative Information

We all make mistakes, but, when those mistakes affect our credit reports, they can follow us for years to come. Fortunately, the Fair Credit Reporting Act puts a limit on just how long a negative item can remain on your credit report. For most things, that time limit is seven years, but that time limit is affected by your creditors.

In cases of delinquent credit card payments and debts that have been reported to collection agencies, the creditor doesn’t have to immediately report the delinquency. In fact, they have up to seven years to report it, which means that debt may follow you around for a total of 14 years. Once the negative item appears on your credit report, it should only remain there for the seven years and, after that time has expired, it should automatically drop off.

In cases where you feel a mistake has been made, you will have to contact the credit bureau and file a report dispute. This type of dispute can be lodged to correct an erroneously reported debt or to argue that the item should have been removed. In the case of the latter, you’ll need proof of the date on which the debt was first reported, which will help you prove that the seven-year time limit has expired.

While there is no quick fix to bad credit, you can improve your score over time to get the best credit score possible for your circumstances. By not abusing credit and paying your debts in a timely manner, you’ll rebuild a good financial reputation. This will help you when you really need good credit to buy that dream home or get a new car.

4 Top Ways to Save Money As a Student

By Frugaling 1 Comment

save money student

Going to college is going to be a big change for you. As a young adult, you are now responsible for keeping a budget, and managing your life on your own! While this is exciting, this is also a lot of responsibility. And if there is one thing you should pay attention to, it is the amount of debt you are getting into in order to pay for college. The less debt you have when you graduate, the easier it will be for you to build a strong financial future. So how do you save money as a college student?

1. Paying less for college

The one big ticket item when you go to college is college itself. Tuition fees, books, extra credits, … the list goes on. You can save on tuition by applying for all the scholarships you find. Be thorough in your research, as spending a few days filling up application forms, even if that leads to say “only” $2,000 in scholarships, is a great return on investment. Think about how long it would take to earn that kind of money flipping burgers!

There are many more ways to save money on college expenses, from paying less for essays, or for books by buying second hand ones, going to a state college or a community college for a few years, then transfer to your college of choice with higher tuition only for a year or two.

Of course, where to attend school is perhaps the biggest decision affecting cost. You could choose to attend a community college, then transfer to your college of choice after two years to save a ton of money. Another option is to go to a college in your state to avoid costly out of state tuition fees. And finally, you could pursue your entire degree online to save far more than you would in traditional, in-person degree programs.

2. Spending less time in college

The sooner you graduate, the sooner you can get a real job and start earning real money. People are often conflicted about unpaid internships because they may add value to your job application, but the truth is, if you can get a normal paying job, the earlier the better. Every extra month you spend in college is a month you pay rent, food, transportation, and all the extra expenses associated with being a student.

To spend less time in college, you can take college credits in high school, take extra credit while you are in college, or favor employment and experience rather than an extra year in college. Say you can spend three years in college and expect a $30,000 starting salary, or spend four years in college and expect $40,000. You can chose to start at $30,000, and work hard to get a promotion the next year, and hopefully $40,000. Even if you don’t, you will still have spent one less year in college, and have less student debt.

3. Saving on daily life

Life as a college student doesn’t have to be that expensive. The saying “live like a student” exists for a reason! You are young, and living with roommates, not having a car, having a basic phone plan, etc. are not such big sacrifices when you think about the benefit of graduating with little or no debt.

Every time you are about to swipe your card, ask yourself: “Do I need that? Can I get it cheaper somewhere else? Can I do without it?”. Shop at thrift stores or at the end of the market for discounted vegetables, turn the thermostat down, spend less time in the shower, turn off the light when you leave a room. Little amounts do add up.

4. Making more money

There are tons of jobs you can get around your college schedule. You can work on campus for reduced tuition, which is usually a great return on investment, you can work a classic student job such as a hospitality job, or you can work in a field you want to be in later, to gain valuable experience.

Once again, every dollar you make before graduating will reduce your student debt and help you get a great start for your adult life.