The Money Spot™ - UK Personal Finance

In this inspiring podcast episode, we explore the remarkable story of Jon, a true financial maestro who has maintained an annual budget of under £7,000 since 2009. What makes his journey truly extraordinary is not just his modest income, but his ability to achieve financial independence. If Jon were to cease working today, his sustainable living wouldn't falter. So, how does he work this financial...

To include the State Pension or to ignore the State Pension, that is the question…when you’re retirement planning. If you’re a millennial (born between 1981 and 1996) or later, I’ve come to a bold conclusion: it’s best to assume you won’t receive a State Pension, when you’re planning how much to save for retirement. Let me explain why… While it's likely that some form of State Pension will persist...

Retirement is a dream shared by many of us, but achieving it requires careful planning and early action. In this article, we’ll delve into the world of retirement savings and reveal exactly how much you need to save each month to retire comfortably. So, if you're aiming for financial independence but are possibly thinking it’s a pipe dream, buckle up and discover the key to retiring early! A littl...

Have you heard about the FIRE movement? It's an acronym for Financial Independence Retire Early. While many people interpret it literally, there's more to this movement than meets the eye. In this episode, we delve into what FIRE truly means, dispel some common misconceptions, and explore the different aspects of achieving financial independence (or FI) and retiring early. Contrary to popular beli...

Investing 101 – HOW TO START INVESTING: where to put your money, how much to invest and what to invest it in? I receive a lot of questions about “how to start investing” and this month alone I’ve fielded quite a few, so, as a belated birthday present to myself I decided to get this all out into a simple blog. Any tax rates and thresholds mentioned in this post will be correct as at the time of wri...

Hi Heather, Here’s my questions. I'm a single first time buyer, I have just under £10k deposit and i can borrow up to £200K based on some mortgage brokers.. is there any way I can borrow more money to buy a bigger house? What are your thoughts on the "helping hand mortgage" by Nationwide. Are there any other schemes for first time buyers? Second question, my plan is to use the house hacking method...

Amrita owns a buy to let property and is a renter herself. She has been renting for over a year and wants to buy a home to live in. She wonders if she will have to be pay the extra 3 per cent stamp duty tax on the purchase of her new home. In addition, if she is subject to the extra 3% tax, she asks if she can she avoid it by buying her home through a limited company? That’s what we answer in this...

I always say that if you get nothing else right in your financial life, at least own where you live outright by the time you hit retirement and ideally much earlier. Well that’s not quite right, the other thing you need to make sure of, is that you qualify for the full UK state pension. Currently, when I am 68, for so long as I have 35 qualifying years, I will get £185/week in state pension until...

When you’re at one point in your life it’s often nearly impossible to imagine having much more than what you’ve got – or maybe that’s just my lack of imagination – anyhow, in this podcast I recount the steps we went through to move from our £385,000 beautiful terraced home to a £1.1m detached bungalow in the same neighbourhood. We did all this in 2020 but, even as recently as in 2017, when I walke...

If you’re looking for ideas on how you and your partner can split the household bills without arguing about it, I have a few ideas for you. Obviously what you ultimately go for depends on your own specific circumstances, e.g. whether you’re married or in a civil partnership or not in either, employment status, differences in income and personal beliefs, however, you can either: 1. Split bills fair...

If you’re over 55 and own your home outright or have significant equity, banks target you for equity release schemes. There are two types: lifetime mortgages and home reversion schemes. With a lifetime mortgage you generally get a loan based on the value of your house and your age – the higher your home’s value and the older you are the bigger the loan you can get. Then, rather than pay interest m...

Now, I disagree with Martin Lewis (the founder of moneysavingexpert.com) on many issues related to debt but on no issue are we more at logger heads than on student loans! Martin Lewis is of the view that UK student loans are not really loans but a form of tax, a graduate tax, in his view…his reasons for thinking this way are based on the way student loans are currently structured. I disagree becau...

There are a lot of apps out there right now purporting they’re the divine intervention you’ve been waiting for to turn your kids into personal finance ninjas…news flash: you can’t delegate teaching your kids about money to an app. The app may be able to relay some basic knowledge but ultimately the best builders of wealth need to only master one thing: their emotions. And, like as not, all the beh...

#38 What is the one financial goal you would like to achieve in 2021? - Reduced debt? - Increase pension contributions? - Increase pension contributions? - Save more for children? Extract from the "2021 Life and Career Planners", link below" Most people want to handle their money better but they don’t take any steps to improve their financial knowledge. Simple commitment you can make to handle you...

#37 In this final episode for 2020, find out a little more about me, Heather, the Host of The Money Spot Podcast through an interview that I had with Alex Sapala. For more on Alex Sapala click the link just below. Related resource: https://www.katsonga.com/wealthblog/the-real-heather-katsonga-woodward-interviewed-by-alex-sapala Ask me a question: https://www.katsonga.com/coach.html Choose a book:...

#36 In this episode find out what percentage of black people own their own homes and what their pension pots look like relative to other ethnic groups. Further, are the earnings of black people lower than earnings of other ethnic groups? Are black Brits enjoying the same rates of social mobility? What challenges do black Brits face in the job market? All this and more in today's episode. Related r...

#35 Do black children really have challenges that are unique to them? What are those challenges? Find out in this episode: black children are excluded from school at higher rates than other ethnic groups and the evidence suggests it's not because they are actually more naughty or more aggressive - in fact, some research suggests black children have a higher aptitude relative to other ethnic groups...

#34 D asks: Hi Heather, my name's D I wonder if you can maybe help advise me, I’m hoping to figure out a plan for myself and kids so that I feel secure and I’m financially independent. I wonder if maybe property is something you would suggest. I am in my 50’s, been with my husband since school and married for nearly 25years. We have adult kids who live with us and one is dependent with medical nee...

#33 Ronjoy asks: Dear Miss Katsonga, What is your opinion on Critical illness cover? What are the alternatives (for lump sum payout to cover mortgage or other debts) in case one partner is unable to work? Thanks! Ronjoy Related resource: https://www.katsonga.com/wealthblog/5-ways-to-remain-financially-afloat-during-unemployment Ask me a question: https://www.katsonga.com/coach.html Choose a book:...

#32 Fifi asks about how best to manage her money when her income from month to month fluctuates a lot with some months bringing in just enough for her to get by. She also wonders how best to manage her credit score and to boost her monthly income. Related resource: https://www.katsonga.com/wealthblog/how-do-i-manage-my-finances-when-my-self-employed-income-fluctuates-so-much Ask me a question: htt...

#31 Grace asks: Hi Heather My name’s Grace. I’m looking into saving money for my little one so that it can be invested in the same way as government-backed child trust funds. My older one has a child trust fund but I don’t know how to go about opening something similar for my younger child. As I understand it, banks don't offer government-backed child trust funds anymore. Related resource: https:/...

#30 David asks: Hi Heather I’m really enjoying your podcasts and have already given a 5 star rating. I am 57 and plan to retire at 60 so love your retirement items. When talking about 4% draw down for retirement income, it’s never clear if the figures are before or after tax. For example 4% of £1m is £40k, but after tax this could be nearer £30k. If you then get a state pension of say £9k, the fig...

#29 Jennifer asks: Hey Heather, my name's Jennifer, I want to start a side hustle but I don't know where to start or how to organise myself. No one that I know has a side hustle; they just do the 9 to 5 then chill...are side hustles just not a British thing? Please help me with some tips, I need some direction...thank you! Related resource and Sylwia's contact details: https://www.katsonga.com/wea...

#28 Mary asks: Hi Heather, it's Mary here. When is a good time to draw equity from my house: when I retire, which is in about 5 years, or before? Thanks for the help. Related resource: https://www.katsonga.com/wealthblog/qa-when-is-a-good-time-to-release-equity-from-your-house-for-retirement Ask me a question: https://www.katsonga.com/coach.html Choose a book: https://www.katsonga.com/mybooks.html...

#27 Nik asks: Hi Heather, just discovered your podcast and blog. Really inspiring. Could I ask a question? I have about £10k to invest and I’m considering three options. I’d really appreciate your help in deciding what to do. 1. Add to my passive investment portfolio which is spread across equities and bonds. It’s down about 8% since Feb. I’m not planning to access this for 7 to 10 years. I could...