Richmond Way

It’s common to complain about the necessity of buying food and groceries, but according to reports, things are going to get tougher.

Food prices have already been rising through the year, not least due to increased demand from China and India.

However, severe weather conditions over the summer have badly affected food harvests across the world. Drought continues in Australia and southern Europe, and heavy flooding has affected the UK, western Europe, the farming belts of the USA, Canada, and Russia, as well as across China and the Indian subcontinent.

The problem is, any rise in food prices is likely to fuel inflation, which Central Banks around the world are required to cap to help economic conditions remain relatively stable over the long term.

And this comes at a time when stock markets are in turmoil, and Central Banks are keen to reduce interest rates to help bail out borrowers stuck with worthless bad credit IOU’s.

So while Central Banks have already tried to help the financial markets over August, they are unlikely to be able to do so much longer. In fact, they are likely to have to raise interest rates to help keep on top of inflation.

Well, that could all sound like gooble-de-gook and general jargon to most people, but the kicker is that rising food prices means less money available for buying other things. Um, such as Christmas presents.

And rising interest rates means higher mortgage payments, which means even less money to spend at Christmas.

So you see, something as simple as bad weather is compounding an already problematic situation with economies around the world.

The good news is that hopefully this is only going to be a short-term issue. We are in a La Nina year after all.

The bad news is that we could all be in for very tight wallets over the seasonal shopping period.

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Okay, I’ll finish with one more tonight…

Budgeting. Book keeping. Accounts. For a business, they are essential, but many householders overlook this issue too easily - until it bites them in the face and they have to count every penny today, because they forgot to count every pound yesterday.

Here’s the bottom line: you need to know what your take-home earnings are each month (gross profit). Then you need to calculate all of your essential outogings, such as rent/mortgage, groceries, insurances, taxes, bills, etc. That leaves you with a net profit.

Most people don’t realise just how big their outgoings can be. Think about it, that coffee from the coffee machine a few times each day, those sandwiches in your break time, that magazine purchase on the way back from work…you probably just spent between £5-£10 on that weekday alone. That’s £150-£300 each month. And I bet you would have forgotten to count all those purchases.

Not sure how to work out your actual outgoings?

THE TIP: Spend one month paying for absolutely everything you spend on a credit card, then pay that balance off in full at the end of the month.

There, you just got a fair idea of your actual outgoings.

Don’t sit on that information, so something with it, such as start keeping book keeping records and keep them updated every week. Track your expenditure on a month to month basis, and watch out for simple ways to cut unnecessary costs to free up cash for quality spending and saving.

And if you’re not sure what software to use for budget your own accounts? You can get a good list of free financial tools from here and also here.

Bottom line is that it’s all in the details - details are everything. The more you have a handle on the details of your spend, the more you can ensure you don;t just waste money on silly purchases, and instead turn it around for spending on things that really matter, cutting your debts, and generally being more responsible with your personal finances.

Oh, and on that point, I never - ever - recommend anyone ever uses a credit card for credit. Consumer protection, yes. Convenience, yes. But always always always pay off the balance in full at the end of every month via direct debit.

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Debt, financial planning, book-keeping, savings…these are the sort of things that make people yawn.

Some may think it’s with good reason, as these aren’t inherently interesting subjects.

That’s not the point, though. These are inherently important subjects.

Like paying the bills. It’s not an exciting subject. But if people made simple changes to their lifestyle they can really save money.

So here’s a fact that could save you money off your energy bill: as much as 40% of the electricity you pay for is wasted.

The big cause if electrical items and electronics on standby. The TV, the DVD, the video player, the Playstation, the PC, printer, scanner, even the cooker.

THE TIP: Switch off all electrical goods when you’re not using them. That doesn’t mean put them on stand-by - switch them off at the plug.

See? That wasn’t so boring.

And if you make the effort to take care of little things like the above, you make little savings that you can split between paying off your debts faster and treating yourself to a little something each month.

Just for switching plugs off?

Good night.

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(the insurance company, not alcoholics recovery group)

The AA Insurance company has been around since 1905. Back then it was just a group of motoring enthusiast that grouped together to help each other avoid speed traps (oh, yes, even back then the police were setting up speed traps). The resulting group, Automobile Association (AA), quickly expanded in numbers and in the activities it offered its members.

In the first half of the twentieth century, AA was all about the general driving experience and about safety. It helped erect the UK’s first effective danger and warning signs. It also implemented a two-way radio system which was used to launch a night time breakdown service throughout London.

In the second half of the century, the motoring club began to reach into other areas. After the collapse of several insurance companies, members were crying out for help. AA stepped into the insurance field to meet the members’ needs. The first AA car insurance was available in 1967. Since then, AA has expanded its insurance policies to include home, travel, and other specialty insurances. Today it ranks as the largest home and car insurance broker in the UK.

In the 1990’s, AA again expanded its services. It opened driving school franchises through out the country that offered fully qualified instructors. More recently, AA launched an online service for car buyers.

(Okay, that was one of my more boring posts, but I think it helps to know a little background on these companies).

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Motorbike insurance – What to Get and Why

Motorbike insurance is not only a smart decision to make, but it’s the law in most countries. How much coverage to get and what kind of coverage it should be often depends on the individual, the motorbike, and the finances that are involved?

Liability insurance is the minimum amount of coverage that is normally offered. Like its name implies, this type of policy covers those expenses – outside your own – that you may be obligated to pay. This usually includes any injuries that other people may have suffered (including your passengers) and any damage to another person’s property.

Some companies offer a policy that is one step up from just liability. This “fire and theft” policy will cover everything that liability does, but it will also give you coverage incase of an accidental fire or incase of theft of the motorbike.

Comprehensive motorbike insurance is the big daddy of policies. In addition to the coverage discussed above, there are many advantages to this policy. It will cover damage incurred to your motorbike by accidents other than vehicular (like when a tree falls in a storm), it will seek out benefits for the policy owner incase of a personal injury during an accident that is not the fault of the policy owner, it covers medical expenses that come from an accident, and it covers most items that might be stolen from the motorbike – like a helmet.

The thing to keep in mind is that the more you put into your policy, the more that policy is going to cost. In the end you have to compare the different premium amounts and if that difference is more than the value of the motorbike then it might be time to re-evaluate your insurance coverage.

Motorbike insurance policies, like all insurance polices, should be evaluated every year to make sure that you are getting all the coverage you need and that you are getting credit for all the discounts that you deserve.

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Getting Quotes For Motorbike Insurance

If you are a motorbike lover, make sure you invest in motorbike insurance that will cover yourself and your machine before hitting the road – figuratively speaking of course.

Don’t settle for just any motorbike insurance. Make a list of questions and needs that you have and then call several companies to compare their services. Visit with agents to see if they are people you can work with and feel comfortable trusting. Look online to find out the company’s history and see if there are negative comments and reports floating around. Most importantly, talk to your friends and family about their experiences with insurance companies.

There are some things that you need to make sure stay consistent when you are getting quotes:

Motorbike model: The year and make of your motorbike will be one of the largest factors in determining the cost of your insurance premium.

Amount of coverage: Insurance companies will only pay out market value incase of an accident, so make sure that you are only pricing coverage for that amount.

Deductibles: There are varying degrees for deductibles, so make sure you keep the number consistent when getting quotes from different companies.

Extras: If one quote includes roadside assistance, then make sure they all do. The little things can make a big difference in the final quote.

Discounts: Insurance companies typically give discounts to drivers for good driving records, taking special safety courses, or having multiple insurance policies from one company. Make sure you get all the same discounts when comparing rates.

Shopping for motorbike insurance can be almost as tricky as shopping for that first bike. To make sure that you compare oranges to oranges – the rates are on the exact same products – keep a list of the terms you have been getting quoted right at hand.

After you get all the numbers crunched, add in the personal factor. No matter how good the rate, motorbike insurance doesn’t do you any good if you can’t get the company to respond to your claim. When you find a company that you can trust, an agent that you feel comfortable with, and a rate that you can afford then your motorbike insurance will make your biking experience a dream and not a nightmare.

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I’m John Richmond, and I’ve worked in the financial services sector for over 18 years, working for companies such as Prudential, London & Manchester, and Standard Life. I started as a “financial advisor” which basically meant insurance salesman, and worked my way from sales into administration.

The biggest surprise for me is just how many simple mistakes commonly occur when people are organising their financial planning, from leaving a pension until they reach 40, to having a family but no life insurance. And then there are simple budgeting and debt issues…

I’m going to try out blogging here, covering both my own little guides to personal finance interspersed with some personal observations and experiences on life in general.

I have no idea how long I’ll stick at this, but it seems like a fun idea instead of working.

I’ve also decided to go with the red Fastway theme, as it’s nice and clean and simple to read.

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