Podcast Summary
LinkedIn is the go-to platform for hiring small business talent: 70% of LinkedIn users don't visit other job sites, making it the best place to find top talent even for those not actively searching for a new role. Meanwhile, being loyal to financial providers could cost you £3,000 a year, so it's crucial to shop around for the best deals on mortgages, bank accounts, and household bills.
When it comes to hiring for your small business, LinkedIn is the place to be. It's like looking for your car keys in a fish tank if you're not using LinkedIn to find professionals. Over 70% of LinkedIn users don't even visit other leading job sites, making it the best platform to find top talent, even those who aren't actively searching for a new role. Meanwhile, in the world of personal finance, being loyal to your mortgage, insurance, energy, and phone providers could be costing you dearly. According to recent findings, some British households could save up to £3,000 a year by switching providers, but the process can be time-consuming and requires a good understanding of the digital world. Regulators and politicians are starting to question the fairness of the current system, which rewards those who switch at the expense of loyal customers. So, while retailers may reward your loyalty, it's essential to shop around for the best deals on mortgages, bank accounts, and household bills to save money in the long run.
Save Money by Switching Bills: Haggle and Prioritize: Haggle with providers, prioritize bills, compare info, and stay informed for substantial savings.
Consumers can save significant amounts of money by taking simple actions, such as haggling with their insurance providers or encouraging elderly relatives to switch bills. However, the process of switching can be confusing and time-consuming, making it essential to prioritize which bills to tackle first. The new prime minister, Theresa May, has expressed concerns about the fairness of the switching economy, suggesting that regulators may need to intervene to protect consumers, particularly the elderly. Until then, consumers are encouraged to obtain and compare information from various sources to ensure they are getting the best deals. The upcoming requirement for insurance companies to provide renewal notices with clear information about price increases will also help consumers make more informed decisions. Overall, staying informed and proactive about bills can lead to substantial savings.
Shop around for better deals on insurance and expenses: Comparing offers from different companies can help consumers save money on insurance and other expenses. Research factors like transactional costs, tax benefits, and inflation before making a switch.
Consumers can save money on insurance and other expenses by shopping around and comparing offers from different companies. The speaker shares her personal experience of consistently reducing her household and car insurance premiums by negotiating better deals and accepting offers from competitors. She emphasizes the importance of having a better offer before making a switch, as bluffing may not be effective. The speaker also highlights the significance of researching and considering factors such as transactional costs, tax benefits, and inflation in the decision-making process. The example of buying a house in the 1970s with lower transactional costs and mortgage interest relief further illustrates the potential savings from careful planning and comparison shopping. Overall, the message is that being proactive and informed can lead to substantial financial savings.
Saving on estate agent fees no longer offsets rising property costs: Rising stamp duty and other property costs outweigh savings from not using an estate agent, making buying a property more expensive for first-time buyers
Selling a property without the help of an estate agent in the past could result in significant savings, but the costs associated with buying a property today have significantly increased. For instance, stamp duty, which was 143,000 the last time the property was sold, is now estimated to be around 172,000. Added to that, other costs such as energy performance certificates, removal fees, and selling fees have also risen significantly. Even using a small ad in a local paper to sell a property now costs around £1,000. The chancellor could help first-time buyers by implementing a system where they don't pay stamp duty upfront but instead pay it when they sell the property and have cash to allocate. Another suggestion is that the building society or bank owns 80-75% of a property worth less than £125,000, and the buyer doesn't pay stamp duty. These measures could make buying a property more affordable for young people in today's market. Overall, the personal finance market needs to adapt to the 21st-century jobs market and the changing needs of millennials.
Proposing portable products for young people's savings and homeownership: The new Chancellor should create portable pension and housing products for young people to better manage their financial future amidst career and living instability
The current system for young people in regards to savings and homeownership is not conducive to stability and portability due to the transient nature of employment and geographical mobility. The proposed solution is for the new Chancellor, Philip Hammond, and his team to develop portable products in both the pension and homeownership sectors. For pensions, this could be an independent, employer-contributed pension that is not tied to a specific employer. For housing, the idea is to expand the use of shared ownership schemes, allowing individuals to gradually increase their ownership while renting the rest from a single landlord, making it easier to scale up or down as life circumstances change. By making these products portable, young people can better manage their financial future despite the instability of their early careers and living situations.
Policymakers can help solve housing and pension issues for millennials with innovative financial products: Policymakers can create innovative financial solutions to help millennials overcome challenges with homeownership and pension savings
Instead of accepting that many young people may never own their own home and giving up on their savings abilities, policymakers should aim for more ambitious and radical solutions. The challenges with pensions and homeownership for millennials are significant, but not insurmountable. By thinking outside the box and creating innovative financial products, policymakers can help solve these issues for the new generation of workers. The Money Show encourages listeners, especially those in Generation Rent, to share their thoughts on housing woes, pension savings difficulties, and other money matters by emailing money@ft.com, tweeting @FTMoney, or commenting on articles at ft.com/money. For more insightful discussions on current issues, listeners can try FT news podcasts, available at effi.com/podcasts. Additionally, for those looking to upgrade their style without breaking the bank, Quince offers high-end products at affordable prices with safe, ethical, and responsible manufacturing. And for those in need of gifts for every occasion, Celebrations Passport from 1-800-Flowers provides free shipping on thousands of gifts and rewards for frequent purchasers.
