REVEALED: There is a way to save your money without losing out

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 3 February 2017

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

We haven’t left the world’s biggest trading block yet so measuring the success of Brexit is tricky. It hasn’t happened. There’s still no plan.

But what we do know is this.

The inequality gap between rich and poor in Britain is growing.

More than 14million have not been able to save a penny in the last 12 months.

And HALF of earners of £25,000 or less haven’t put cash aside for the rainy days ahead.

But why would you save when the interest rates available are lower than inflation? It means saving is a way of losing money.

Unlike Brexit, there is a plan and it’s possibly an investment plan. And what if there was a timeframe over which you definitely don't lose out?

Join Simon Lambert, Georgie Frost and Lee Boyce for a round-up of how to save and invest, why and where, the pitfalls and the safety nets.

Also on the show:

Simon goes botty potty after an a artificially intelligent computer programme (bot) has beaten a team of leading human poker players. The ramifications for financial tools is colossal.

Mini bonds look too good to be true. They probably are.

How does pay-as-you go car insurance work and why does car finance fill us with dread?

And finally,

Lee, our coin correspondent, visited the Royal Mint coin making factory and is won over by the clinking of new pound coins.

Enjoy.

Transcript

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0:00.0	This is Money, brought to you in partnership with NS&I, giving you 100% security backed by HM Treasury.
0:14.2	A very warm welcome to This is Money and Share Radio podcast in partnership with NS&I.
0:19.3	I'm Georgie Frost and joining me in the studio is editor Simon
0:22.1	Lambert and Consumer Affairs editor Lee Boyce to round up the week's top stories they've been covering
0:27.0	on their award-winning website. And it's wake up and smell the own brand basic coffee or not.
0:34.3	The Bank of England reckon UK GDP will grow more than expected, suggesting perhaps
0:38.7	the decision to leave the EU could affect the economy less severely than many economists thought.
0:44.2	But that's seemingly in contrast to warnings we got this week about the state of our own
0:48.7	personal finances. Britain's reportedly on track for a major slowdown in living standards
0:54.0	that will bring the biggest rich- rich poor divide since the 1980s.
0:58.1	We are set to face a big squeeze on living standards over the course of the rest of this Parliament.
1:03.8	And this major squeeze will particularly affect poorer households
1:07.0	as inflation reduces the value of their pay and also the value of their benefits.
1:12.4	So it's more that the poor are losing out, whereas the rich aren't doing that great, but that's
1:17.1	where the inequality is coming from this time, whereas in the late 1980s and early 1990s and
1:22.9	the Thatcher, the inequality was coming from the fact that the rich were doing very, very well,
1:27.4	and at that time, the poor were doing quite well, but just less well as the rich.
1:31.4	So what we predict will happen in the next few years will be kind of very poor income growth for everyone, but a very poor, if not falls in income for those at the bottom.
1:42.2	And these are based on the projections that the government
1:44.9	has done itself, the Office for Budget Responsibility. Pay will continue to kind of rise at the same
1:50.4	rate it is doing now. But unfortunately, inflation is going to rise quickly and possibly even faster
1:57.3	at some points over the next couple of years. And as a result, real pay, the kind of spending power that people have in their pocket is going to grow very slowly.
	...

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