Tag Archives: Money

How to Handle Financial Stress During Major Life Transitions

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Major life transitions often bring financial challenges that can feel overwhelming. Facing a divorce, career change, or relocation often strains our financial resources and emotional wellbeing simultaneously. The stress that comes with money worries during these periods can make clear thinking and decision-making even more difficult.

Financial pressure during transitions like divorce creates a unique kind of stress. Bills continue to arrive while income and living situations may change dramatically. Many people find themselves navigating unfamiliar territory, perhaps managing household finances independently for the first time or adjusting to a significantly different budget. This uncertainty about the future can trigger anxiety that affects sleep, relationships, and overall health.

Learning effective ways to manage this specific type of stress is important for moving forward successfully. With thoughtful planning and the right support, it’s possible to move forward through these challenging waters and establish financial stability again. The path forward involves practical steps combined with emotional resilience.

The Hidden Financial Impact of Divorce and Separation

Divorce and separation bring financial challenges beyond legal fees. UK statistics show divorce costs range from £2,500 for simple cases to £30,000 for complex situations. The typical uncontested divorce costs around £14,500 including legal fees and lifestyle adjustments. Early consultation with a family law firm in Nottingham helps individuals understand these costs and prepare necessary budget changes.

Housing costs create major pressure after separation. Many families must maintain two homes on income that previously supported one household. This often drains savings or creates new debt. Tracking new expenses and having open conversations about shared housing costs brings clarity. Tools for projecting future housing expenses help families get ready for these changes.

Legal expenses increase if disputes reach court, though even amicable agreements have costs. These combine with practical expenses like moving, childcare, or support sessions. Keeping detailed records of all expenses brings clarity and supports future planning.

The emotional impact of financial stress deserves attention. Anxiety and sleep problems are common. Work performance may suffer due to distraction. Noticing warning signs like avoiding financial decisions helps prevent further problems.

Financial Self-Care Strategies During Family Transitions

Building an emergency fund becomes important during major life changes. Financial specialists recommend saving three to six months of essential expenses in an accessible account. This fund provides breathing room when income becomes unpredictable during separation. Creating this financial buffer is essential, which is why practical budgeting takes priority during times of change. Track all expenses for at least one month to understand your spending patterns. Then create a realistic budget focusing on essential needs like housing, utilities, food, and childcare. Apps and spreadsheets can reveal spending habits and identify possible savings areas.

Setting clear financial boundaries with former partners prevents ongoing stress. Written agreements outlining shared obligations remove assumptions and reduce future conflicts. Using digital payment methods creates accessible records for both parties when questions arise.

Professional financial advice proves helpful during challenging transitions. While some people manage independently, others benefit from expert guidance about settlements, obligations, and planning options.

Protecting Children’s Financial Wellbeing Through Transitions

Children need age-appropriate explanations about financial changes. For younger children, simple reassurances about meeting their basic needs provide security. Older children might understand budget adjustments, but should never carry adult financial worries.

Maintaining stability in children’s essential expenses requires planning. When possible, prioritise keeping children in their schools and continuing important activities that provide emotional support. Small sacrifices in other budget areas often preserve this stability. Planning ahead helps manage financial stress from childcare costs.

Clear communication about shared financial responsibilities for children is essential. Detailed parenting plans should specify who pays for what, including everyday expenses, medical costs, and activities. Nottingham divorce lawyers can create legally binding agreements that protect children’s financial interests.

Planning for future educational expenses requires extra attention after family changes. Parents should document how these costs will be divided, whether for university or vocational training. Setting up dedicated savings accounts with contributions from both parents helps keep educational goals on track despite family transitions.

Checklist: Financial Documents to Gather Before Meeting with Advisors

Before consulting with Nottingham family solicitors, gather key documents to improve advice quality. Collect recent bank statements, tax returns from the past three years, and pension information. Include mortgage details, insurance policies, credit card statements, and existing court orders. Having these documents ready is part of the pre-divorce checklist recommended by financial experts.

Also collect property valuations and vehicle registration documents if these assets form part of a settlement. For business owners, organise company records alongside investment account statements. Include accurate details about debts and loans, as missing information complicates negotiations.

Rebuilding Financial Confidence After Major Life Changes

Establishing an independent financial identity marks an important step after separation. This includes opening individual bank accounts, building personal credit history, and setting new financial goals. For those who previously shared financial responsibilities, this independence feels both challenging and rewarding.

Credit scores need special attention during life changes. Request credit reports from all three major bureaus to understand your current position. Then build or repair credit through responsible credit card use, timely bill payments, and debt reduction.

Recovery Timeline and Warning Signs

Financial recovery after divorce follows familiar patterns that help set realistic expectations. Most people experience three phases: initial adjustment lasting approximately 6 to 12 months, stabilisation taking 1 to 2 years, and long-term rebuilding extending beyond 2 years. This outlook prevents discouragement when recovery takes time.

Warning signs of financial anxiety include ongoing money worries disrupting sleep, avoiding financial tasks, or using spending as a coping mechanism. If these signs appear, seek support quickly. Local Citizens Advice offices in Nottingham or government services like MoneyHelper offer confidential help for debt, budgeting, and benefits. Taking note of signs of financial anxiety is important for getting help.

Creating a future-focused financial plan with achievable milestones provides motivation. Start with small goals like building an emergency fund or reducing specific debts. As successes accumulate, confidence grows, making larger goals like homeownership or retirement planning feel achievable again.

Collaborative post with our brand partner.

The Rise of The Mid-Life Influencer

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Nina Ambrose, 54 @RantsAndBigPants charges £1,800 for an Instagram reel and story

It’s not just the young ones who are doing well on social media. While everyone on TikTok can seem young, midl-life influencers are making their mark and earning big. Kolsquare releases new report – From Mixtapes to TikTok, Why Gen X is the Dark Horse of Influencer Marketing
 
According to leading influencer marketing platform Kolsquare, Gen X (born between 1966 and 1980) is reshaping the social media landscape as the 45+ age group embraces platforms like TikTok, Instagram and Facebook with a growing number carving out second careers as mid-life influencers aka mid-fluencers.
 
On TikTok, the 45+ demographic is the platform’s fastest-growing audience segment, currently at 17.6% and growing (in the US they make up 27%). A third of all 45+ social media users follow influencers, and many are gaining huge audiences and attracting younger followers.
 
“We are seeing a growing number of 40 to 50-something influencers gaining huge traction,” says Katy Link, Head of Brand for Kolsquare. “There’s an army of mid-lifers who started their accounts as a side hustle and are seeing them burgeon and become profitable. There are also growing numbers of mid-lifers starting businesses and using social media to promote them.”
 
It’s not just women of a certain age who are conquering social media, male mid-lifers are talking about their passions too. Ben Hamilton Anderson (@the_gardenerben) has 40,400 followers on Instagram where he shares his passion for gardening. 78% of his audience are male and 31% are between 45 and 64.
 
Facebook loyalists
 
More than a third (33.4%) of Instagram’s global users are 45+ but Gen X are Facebook loyalists who want entertainment while seeking informative and creative content.
 

  • 61% of Gen X have been on Facebook for more than 10 years, although their engagement is declining (as is the case for all age groups) and there is a shift from sharing photos and updates towards passive scrolling. 20% of the platform’s global users are 45+.
  • 73% of 45+  Brits log into Facebook daily and only 5% say they’ve never had a Facebook account
  • 34% of 45+ Facebook users participate in groups and communities

Engagement on Facebook is declining and midlifers are moving to other platforms, globally  –

  • 31% of YouTube users are 45+
  • 17.6% of Instagram users are 45+
  • 26% of Facebook users are 45+
  • 17.6% of TikTok users are 45+ 

Reaching Gen X

Targeting Gen X with influencer marketing campaigns requires an understanding of who they are –  a generation raised with print and traditional TV who want high-quality information, i.e. substance over style.

“As a group, they want more than novelty, they are after content that adds value, whether that’s how to navigate their menopause, fitness tips, cooking, etc,” says Kolsquare’s Katy Link.

Big names like John Lewis, Fantasie and The White Stuff have started to invest heavily in Gen X-focused campaigns. 

Lingerie brand Fantasie is on a mission to change how brands portray Gen X women. They used Nina Ambrose (@rantsandbigpants – see case study below) whose March 2025 racked up an earned media value of £10,752. They also used Mega-influencer and feminist author Tova Leigh (@mythoughtsaboutstuff) who has 1.3m followers on Facebook. Most of her Fantasie posts earned more than 500 likes and one reel got 158,000 plays.

“Gen X has spending power,” says Katy. “Brands like Fantasie that are tapping into this and speaking authentically to mid-life women, are reaping the benefits.”

Social media habits

Gen X spends an hour less per day on social media than Millennials and Gen Z, although their time spent online is the same as other age groups. Their top three reasons for using social media are –

  1. To connect with friends
  2. Get up to speed on the news
  3. Fill spare time

The only difference between them and 25 – 44-year-olds is that they rank filling spare time ahead of keeping up with the news. 

Becoming an Author Takes a Huge Amount of Talent. We Deserve Better Than AI and Piracy.

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Last week, thanks to a fantastic article in The Atlantic, I found out that one of my books had been taken from a piracy site and used by Meta to train their AI. Seeing your book on a piracy site hurts a lot. It takes years to write a book. There is a huge amount of sacrifice. Of sleep, time spend with loves ones, and time spent with Netflix. Querying is hard and tough on your mental health. After all of that, your book can then die on submission. Then you have to write another book and start the whole thing from the beginning.

Where The Light is Hottest, Catherine Yardley, Balavage

Authors do not earn a lot of money. At last count the average was seven thousand pounds a year. If you worked out the hours we put in, it is below minimum wage. You have to really love it to be an author. The highs are liking nothing on earth and the lows are crushing.

@balavage It is hard being an author. I know this is a bit of a rant but please bare with me. Leave your comments below. #booktok#writertok#authortok#writingcommunity#authorscommunity#writing#publishing♬ original sound – Catherine Balavage Yardley

Being an author is as hard as any other career. Yes, it has a huge amount of benefits. Working from home, being creative and seeing your work out there in the world. But the work can be tedious. Reading the same book multiple times. Editing it so many times that you want to give up. Then you market it while writing your next one. It is the dream, it really is. Don’t get me wrong, but there is a lot of work involved. If you cannot afford books you can go to the library. Authors get paid when you borrow our books. There is also the Libby library app if you are not near a library. My two books, Where The Light is Hottest and Ember are both on kindle unlimited. I hate to be downer and I know how lucky I am. I feel privileged and happy every day, but please stop stealing our work. Especially if you are a trillion dollar company. We can only write if our books sell. Publishers will not give us contracts if they think we have no readers. Publishing is a business like no other. It is all about the bottom line. Thank you. Please share any comments below.

Cuts, charges and kids: 33 money events to watch in 2024

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    Sarah Coles, head of finance, Hargreaves Lansdown:

“2023 hasn’t been a golden year for our finances – with rising prices, mortgage rates and tax – and falling growth, house prices and morale. On paper, 2024 is looking more positive, with inflation, tax rates and childcare bills all set to drop. However, that’s not the full picture, because most tax thresholds have been frozen, and two of them are actually set to fall, so there’s a good chance a huge chunk of people will still be worse off by the time we struggle to the end of 2024.

1 January: new energy price cap
The energy price cap will rise £94 (5%) from £1,834 to £1,928, after conflict in the Middle East sent oil and gas prices higher. It’s worth bearing in mind that this isn’t a fixed cap on the most you can pay: it’s a cap on prices for the average user. If you burn through more energy, or live in a large or draughty house, you could see prices rise even further.

6 January: National insurance cut
Class 1 NICs, which are paid on earnings between £12,570 and £50,270, will be cut by 2 percentage points, from 12% to 10%, saving an average of £304 for basic rate taxpayers, £647 for higher rate taxpayers, and £707 for additional rate taxpayers. Sadly this isn’t the shot in the arm it appears, because frozen income tax and National Insurance thresholds will still mean we pay more tax in 2024.

31 January: Tax return deadline
March: Rail fares rise
Normally the government uses July's Retail Prices Index (RPI) measure of inflation to determine the increase in regulated fares the following year – although at times of very high inflation it can cap this. Last year the rise was effective from 5 March.

23 March: Temporary cut to fuel duty ends
The 5p fuel duty cut was announced in March 2022, then extended another 12 months in early 2023. Unless we hear otherwise before this date, this is when it ends. However, we’re likely to get a Spring Budget before this point, so there’s hope.

31 March: Energy price guarantee ends
The scheme, restricting average bills to no more than £3,000 for an average user, officially ends today – although the price cap is highly likely to have been below the guarantee since July 2023, so the guarantee hasn’t been called on since then.

April: 15 hours of free childcare for the under twos
Working parents will receive 15 free hours a week for children under the age of two, as the first step along the road to secure 30 hours of free childcare for all children from nine months to the start of school between now and September 2025.

1 April: New energy price cap comes into effect
This is predicted to fall slightly from the January level.

1 April: TV licence fee rises
The government is responsible for setting the level of the licence fee. In 2022, it announced that the fee would rise in line with inflation for four years from 2024. 

1 April: Car tax rises
This will rise in line with RPI.

1 April: Council tax rises
Council tax rises on 1 April, but we’ve not yet had confirmation of how much by.

1 April: National Living wage and minimum wage rise takes effect
On the 25th anniversary of the minimum wage, the National Living Wage will rise to £11.44 an hour – up almost 10% from £10.42, and the age threshold will fall from 23 to 21. 18-20-year-olds will also see pay rise to £8.60 per hour – up £1.11. The minimum hourly wage for apprentices will rise too. 

1 April: Water bill price changes come into effect
Several factors are used to determine changes in water bills, including the October inflation figure of 4.6%.

1 April: Air passenger duty rises
Rates will rise with RPI, so the cheapest tax on domestic flights will be £7 and on international flights it will be £13. The rate increases with the class of the flight and the distance, so an economy flight of more than 5,500 miles will be taxed at £92, a business class seat on the same flight £202, and a seat on a private jet flying the same route £607.

1 April: Prescription charge changes could kick in
NHS prescription charges in England rose 30p in April 2023. The previous year those charges had been frozen.

1 April: Fuel duty rise could be implemented
At the moment, the fuel duty rise is set to go ahead – rising with RPI. This is priced into the government’s calculations, but there’s a reasonable expectation the Chancellor will announce a fuel duty freeze closer to the time.

6 April: Dividend and capital gains tax changes
The threshold for dividend tax will be cut to £500 and the capital gains tax threshold to £3,000.

6 April: ISA changes
From this point, you will be able to pay into multiple ISAs of the same type in a tax year - and will be able to transfer slices of ISA money you paid in during the current tax year too (previously it was all or nothing).

It will be possible to hold long term asset funds and open ended property funds in an innovative finance ISA, although we don’t yet know whether any providers will make them available.

The minimum age to open a cash ISA will rise to 18, closing the loophole that allows 16 and 17-year-olds to have a JISA and a cash ISA allowance in the same tax year.

6 April:  Tax thresholds remain frozen
This stealth tax will have an enormous impact on our finances this year, and every year until 2028. The personal allowance will stick at £12,570, the higher rate threshold at £50,270, the inheritance tax nil rate band at £325,000, and the residence nil rate band £175,000. Plus, everything from ISA allowances to the annual gifting allowance, the high-income child benefit tax charge and the personal savings allowance remain the same.

The tax take will rise to its highest percentage of GDP since the Second World War, and it’s not just that we’ll all have to pay more tax, 4 million more people will be dragged into paying tax, 3 million more into paying higher rate tax and 400,000 more into paying additional rate tax.

6 April: National Insurance for self-employed people is cut
Class 2 National Insurance contributions will be axed altogether (saving an average of £186 a year). The main rate of National Insurance contributions for self-employed people will also be cut by one percentage point, from 9% to 8%. This applies to profits of between £12,570 and £50,270. This will cut tax an average of £117 in tax for basic rate taxpayers, £322 for those on the higher rate, and £358 for additional rate taxpayers. Of course, frozen tax thresholds will mean they’re still worse off.

8 April: State pensions rise with the triple lock
The state pension will rise 8.5% in line with the triple lock. For someone on the full new state pension this will see their pension grow from £203.85 to £221.20 a week, and for someone who hit state pension age before 2016 their full weekly basic state pension will rise from £156.20 to £169.50.

8 April: Benefits rise with inflation
Those receiving working age benefits will have them increased in line with September’s inflation rate, which this year was 6.7%. Pension credit, meanwhile, will rise 8.5% in line with the triple lock.

1 July: Energy price cap changes
This is currently expected to fall very slightly again from the April level.

31 July: Payment on account deadline
Self-employed people need to make advance payments towards their tax bill.

1 August: Freeze on alcohol duty ends
In the Autumn Statement, Jeremy Hunt said alcohol duty wouldn’t be increased before this date. So this is the first date a duty rise becomes possible.

In September: 15 hours of free childcare from nine months
The second stage in the roll out of free childcare will see 15 hours of free childcare extended to children from the age of nine months.

10 September: wage figures
These are used as part of the triple lock for next April’s state pension.

1 October energy price cap changes
This is expected to rise as we head into the winter, but forecasts this far ahead need to be taken with a pinch of salt.

16 October: inflation figures
These are used as part of the triple lock for next April’s state pension, and for uprating working age benefits.

31 October: Deadline to file paper self-assessment tax return for 2023-24
We’re overwhelmingly filing our self-assessment tax returns online but those who prefer to do it on paper will need their returns to arrive with HMRC by this date.

1 December energy price cap changes
So far, we haven’t had forecasts for this period, although prices are hoped to be less volatile later in 2024.

17 December: The last possible day to call the general election
This would be exactly five years after the last parliament met for the first time after the previous general election – which by law is the last possible date the election can be called. If it was left to the last possible date, the election itself would be on 28 January.

31 December: The £2 cap on single bus journeys ends
The £2 cap on single bus journeys in England is expected to come to an end. It saved people 30% on the average fare.”

    Brits need 78 sponsored posts on Instagram to make their average annual salary

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    With the ability to earn millions, even as a nano influencer, it’s no wonder that many people are now turning to Instagram for a potential side hustle.

    Interested in social media earnings, money.co.uk collected the average annual salary for each European country from Eurostat and used social salary calculator Lickd.co to find out how many sponsored posts* an average European worker would need a year to match their country’s average salary.

    The European workers that would take the longest to make their average salary through sponsored posts

    Money.co.uk can reveal that in the UK, aspiring influencers would need a minimum of 78 sponsored posts on Instagram to meet the average annual salary of £18,338.

    European Countries Average annual income

    (GBP – £)

    		 Required number of sponsored posts
    1. Switzerland 35,250 151
    2. Norway 34,380 147
    3. Iceland 34,096 146
    4. Luxembourg 32,320 138
    5. Denmark 26,221 112
    6. Austria 22,673 97
    = 7. Belgium 21,940 94
    = 7. Netherlands 21,921 94
    = 9. Finland 21,770 93
    = 9. Ireland 21,805 93
    11. Sweden 21,098 90

    *= symbol means joint in ranking

    Source: money.co.uk

    In first place is Switzerland. Residents would require a minimum of 151 sponsored posts on Instagram a year to earn their respective countries annual salary of £35,250 – the most of all countries analysed.

    Following in second place is Norway, where an estimated 147 sponsored posts a year would earn aspiring influencers the country’s average annual income of £34,380.

    Placing third is Iceland. Uploading a total of 146 sponsored posts per year on Instagram would earn the same as the average annual income of £34,096.

     

    Table 2: Workers in these countries could make their average salary the quickest through sponsored posts

    European Countries Average annual income

    (GBP – £)

    		 Required number of sponsored posts
    = 1. Albania 1,906 8
    = 1. Kosovo 1,759 8
    3. North Macedonia 2,330 10
    4. Turkey 2,581 11
    5. Serbia 2,799 12

    *= symbol means joint in ranking

    Source: money.co.uk

    Requiring the fewest sponsored posts in Europe are Albania and Kosovo in joint first place. The residents in these countries would only need eight sponsored Instagram posts a year to earn their respective countries’ annual salaries (£1,906 in Albania and £1,759 in Kosovo).

    James Andrews, personal finance expert at money.co.uk, commented on the findings:

    “Social media platforms such as Instagram have continued to grow as a potential earning source for those looking for more flexibility over their creativity. Since you don’t need millions of followers to start earning, this has definitely sparked some interest, encouraging people of all ages and hobbies to look to see if they could join in.”

    Money.co.uk’s tips on managing earnings and saving for the future:

      1. Maintain a steady income – Earnings as an influencer may not always be consistent. Ensure that you have a main stable income to support not only your daily expenses but also emergencies
      2. Tracking expenses – Keeping track of your daily expenses can help control your spending as well as cut down the need for any unnecessary outgoings. There are a number of apps available to download to assist your money tracking needs. Make sure to have a look around to find the best one that caters to you
      3. Budget for savings – Tracking your daily expenses can motivate you to organise your monthly income into a specific budget that works for you, encouraging a way to store any extra earnings into savings straight away
      4. Contribute to a pension pot – If you are thinking about saving for retirement, you will probably be enrolled in a workplace pension if you have a traditional job – which you can frequently top up, or ask to join if you’ve opted out or don’t meet the qualification criteria. But making the move to full time influencer or becoming self-employed will mean you need to take action yourself. Private pensions are simple to open and contribute to, but make sure you do your research or speak to a professional to help you get the most of the money you put away in the safest way possible.

    Methodology:

    1. Money.co.uk wanted to find out how many sponsored posts European workers would need on Instagram to earn the same amount as their country’s average annual income.
    2. To do so, Eurostat data was utilised to collect the average annual income for European countries, accumulating the most recent data from 2020. Data for Ireland, Italy, Montenegro, North Macedonia, Albania, Serbia and Turkey are from 2019, whereas Iceland, the United Kingdom and Kosovo are from 2018. The figures reflect the NET earnings across each European country.
    3. To input the average annual income into a social salary calculator Lickd.co, the currency was converted from EUR – €  to GBP – £ using XE.com.
    4. Once converted, the average salaries were then input into Lickd.co to give the estimated number of sponsored posts per year on Instagram to earn the same as each European country’s average annual salary**. The social salary calculator takes a general assumption of earning as a whole and is not specific to a particular location***.
    5. A final ranking for each country was determined based on the number of sponsored posts.
    6. Data and conversion rates were collected on 8th November 2021 and are correct as of then but subject to change.

    *Lickd.co’s estimated required sponsored posts are based on a minimum of 5,000 followers for users to be able to start earning around $350/£250 per sponsored post, where the estimated earning value can increase as the following grows.

    **Potential earnings from sponsored posts may also vary depending on the estimated values of the influencer’s brand sponsor deals.

    ***SevenSix’s influencer pricing report conducted in November and December 2020 illustrates a comprehensive study on influencer pricing standard as well as an insight into the industry based on survey responses from influencers, brands and agencies across the UK.

    Cutting The Cost of Your Home

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    Christmas is coming and that means many things but mostly it means our bank accounts are going to take a kicking. It is that expensive time of the year. What better way of ‘making’ money than saving money? A penny saved is a penny earned, as the old saying goes. Every saving helps so here are some ideas on how to save around the house.

    Turn your thermostat down. Even turning the thermostat down by one notch saves you lots of money AND it is good for the environment. Win-win.

    Change to LED lighting. LED lighting lasts longer than normal lighting. The bulbs last longer and it works out cheaper in the long run. We have some LED panels in our garage and I heartily recommend them. LED lighting is a greener and cheaper alternative to traditional lighting.

    Get a draught excluder, or use an old towel. Draught excluders keep the heat in and stop any draughts. Well, obviously, but I always do this. I actually just use an old towel in winter.

    Always make sure you are getting the best deal for your bills. There are plenty of sites that will help you switch to a cheaper deal for your bills.

    Sell any old stuff you no longer use. It is just taking up space in your home and you do not need it anyway. Declutter while making money with eBay, Depop, or Facebook marketplace. Alternatively, regift items that you received but never used. Much greener and cheaper.

    Lastly, remember to keep the Christmas paper and iron it out for next year.

    How are you keeping costs down?

    Collaborative post with our partner.

    Have You Considered Downsizing As Part Of Your Retirement Planning? Here’s Why Going Small Could Benefit You

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    For many people planning their retirement, downsizing is becoming a popular option for amassing retirement funds. However, having lived a life where bigger is often viewed as best, the idea of downsizing can seem slightly counter-intuitive. 

    This article aims to alleviate any concerns you might have about downsizing and highlight its social and financial benefits.

    What is Downsizing?

    The enduring goal throughout your life has likely been aiming for something bigger and better. After all, it is this principle that tends to give people status in Western society. 

    More essential than status is practicality. As you age, you tend to need more space for children, a bigger vehicle to transport the family, and more stuff for everyone to use. 

    However, your family might have left home when you reach middle-age, and your interests may have changed. Perhaps you’ve had your fill of the latest gadget and sporty cars. Maybe you’re finding your large family home is a little too spacious for just the two of you. It is at this point that downsizing becomes a viable lifestyle choice.

    Now is the time to consider focusing on more minor things rather than larger ones, and this is the principle behind downsizing. Downsizing offers you the opportunity to realise a lifestyle that you and your partner, reduces stress in your life, and is financially rewarding. 

    Therefore, downsizing is not so much about cutting costs but about adjusting your lifestyle. Re-evaluating your spending and the resources you need will allow you to match these to your streamlined lifestyle. 

    Benefits of Downsizing

    1. Assessing Your Lifestyle

    The initial benefit of downsizing is that you’ll conduct an inspection of your lifestyle and assess what things are crucial. It’s too easy to drift through life, simply enjoying the same creature comforts that everyone else craves, often striving to go bigger and better. Conducting a lifestyle assessment is enlightening and is the first benefit of downsizing.

    1. Financial Rewards of Downsizing 

    If you’ve owned your home for some time, it is likely to have increased in value by a considerable amount. Therefore trading in your property for something smaller could leave you with a significant amount of cash. 

    This boost of money can enable you to live mortgage-free, pay off other loans, or pay for some substantial capital purchases. 

    The same applies to cars and other large items. Downsizing to a smaller vehicle might not only allow you to get some capital return but could also save you a considerable amount of money on running costs each month. The accumulated money you release from your downsizing will not only give you financial benefits but will enable you to enjoy a more stress-free life. 

    1. Long-Term Benefits 

    Although society is enjoying modern advancements in medicine, healthcare, and lifespan, it’s still likely that you’ll suffer from an illness or restriction at some stage of your life. As you age, your health and home environment become much more of a priority. 

    Downsizing is a way of meeting these needs and providing you with long-term benefits. For instance, you might find downsizing from a three-story townhouse in the city centre to a bungalow in the suburbs more suitable as you get older. 

    Considerations When Downsizing 

    By now, you might think that downsizing is a good idea. However, there are several things to consider before making any hasty decision.

    • Practicality. Although your downsizing venture might be to boost your finances, you should also consider the practical aspects. Moving home is stressful at the best of times, and you should ask yourself if the hassle is worth it.
    • Adapting to a Smaller Space. Having lived in a large space for some time, you might find it challenging to adapt to a smaller space. You may have become too used to extra bedrooms, bathrooms, or TV rooms.
    • Emotional Ties. You are bound to have plenty of memories and emotions associated with your family home. Consider how you’ll feel about severing these emotional ties with your home.
    • New Area. If you are moving into a smaller home, chances are you’ll be moving to a new area. You’ll be leaving behind neighbours you may have known for many years. Will you be able to maintain these relationships?
    • Shedding Possessions. Moving to a smaller home means you’ll likely have to get rid of some of your possessions. Before downsizing, consider which of your prized possessions you can shed and those you can’t live without.
    • Paying a Premium. Bungalows are a popular choice for downsizing. However, these properties are rare, so you’ll likely have to pay a premium to secure a purchase. 

    Using Your Freed-Up Capital For Your Retirement

    Downsizing is a considerable undertaking, so you should ensure you put the money from it to good use. Of course, you might have downsized as a lifestyle choice, but many people also have financial goals for the process. Therefore, you should clearly understand what you will do with the money you release from downsizing.

    You’ll notice the most immediate impact of downsizing on the reduced cost of your lifestyle. You can release yourself from the burden of some debts or even clear your mortgage. Doing so will give you substantially more disposable income every month. 

    However, you mustn’t use all of this additional money for short-term spending. You should also consider the longer term and your retirement years. If you regularly check your pension, you’ll understand what you might need to do to improve your pension’s performance.

    An excellent option for boosting your retirement savings is to make top-up payments into your pension. Also, if you have any gaps in your National Insurance contributions, you might be able to use some of your spare money to fill these.

    Conclusion

    Downsizing is a natural process as you age and your lifestyle priorities shift. However, it often goes against everything you may have strived for previously. Before you make the leap and start shedding a large property for a smaller one, a more modest vehicle, and fewer possessions, consider the practical aspects of giving such things up. 

    The financial benefits of downsizing are probably the most significant. These include the opportunity to clear your mortgage, other debts or make substantial top-up payments to your pension pot. Regardless of the amount of money you free up from downsizing, being more comfortable in your retirement should be one of your primary considerations for doing so. 

    If you are thinking about your pension, consider using a regulated pensions specialist such as Portafina or, view the advice at Pension Wise.

    Brand post from our partner.

    Marriage rate at record low: 10 risks we take when we live together

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    • The marriage rate of opposite sex couples was the lowest on record in 2018, with 20.1 per 1,000 unmarried men and 18.6 per 1,000 unmarried women.
    • In the previous 10 years, marriage rates had fallen most among those under the age of 20: down 57% for men and 63% for women.
    • The average age to get married is rising – in opposite-sex couples, men married at an average age of 38.1, and women 35.8 years.
    • There were 234,795 marriages in 2018 – down 3.3% from 2017.
    • Since 1972, the annual number of opposite-sex marriages has fallen 46.5%.

    The Office for National Statistics has published marriage statistics for 2018 today.

    wedding planning, wedding, weddings,

    Sarah Coles, personal finance analyst, Hargreaves Lansdown

    “Marriages hit a record low in 2018, as more people decided it was better to live with their partner first for a few years than live with a bad decision forever. But as more couples move in together for longer without tying the knot, they need to understand the ways it can make them vulnerable.

    Separate ONS statistics show that among those under 30, more than two thirds of couples are living together without getting married, along with one in five couples in their 40s and one in ten people in their 60s.

    There are all sorts of reasons why people choose to marry or live together, and nobody would suggest marrying for money. However, if you are living together you need to understand the financial risks you face. You could be in for a horrible surprise if you split up, or fall foul of rules you never knew existed if your partner was to die.

    The good news is that you don’t have to rush into marriage to protect yourself, because there are steps you can take to cut your risks, whatever your marital status.

    10 risks of living together

    1. If one of you dies without a will, the other could get nothing. If the home is in their name, you could lose your home too, because everything passes to your partner’s children. If they have no children, everything in their name will pass to their parents instead.
    2.  If you have a pension which is meant to pay out to a spouse when you die, some pensions don’t allow this to be left to an unmarried partner. Some will allow you to complete a ‘nomination of beneficiaries’ form, to ask for anything to pass to your partner, but if you don’t complete the form there are no guarantees that this will happen.
    3. If you have children, the father isn’t on the birth certificate, and the mother dies, the father doesn’t automatically have a right to care for the child.
    4. If one of you dies and leaves everything to the other, in a marriage or civil partnership this would all be free of inheritance tax. If you’re not married and you breach the inheritance tax nil rate band, there could be tax to pay. In some cases, this could mean you can’t afford to stay in your home.
    5. There are no inheritable ISAs. If your spouse holds an ISA on death, you will get an additional ISA allowance – called an Additional Permitted Subscription, which essentially means ISA assets they leave you can all be wrapped up in an ISA again without affecting your allowances. If you’re not married, you don’t get this extra ISA allowance.
    6. If you split up and one of you owns the house in their name, the other may have no right to live in it or to a share of the property.
    7. On the flip side, if the property belongs to one of you entirely, but the other has contributed towards it in some way – including paying a share of the bills or helping with home improvements, they can claim an ‘interest’ in it, and go to a court for a share of the property. It means couples who move in together may have made a bigger commitment than they appreciate.
    8. If you split up, and one of you has sacrificed their career for caring responsibilities, they have no right to spousal maintenance. On average, women’s pay falls 7% for each child they have – so without maintenance to make up the difference, this could leave them thousands of pounds worse off each year.
    9. In the event of a split, if one of you has a sizeable pension and the other has nothing, there’s no compulsion to share.
    10. There are tax disadvantages. We all have a personal allowance that’s not subject to income tax, a personal savings allowance, a dividend allowance and a capital gains tax allowance. Married couples can share assets between them to take advantage of both people’s allowances, and the lower taxpayer can hold the balance. If unmarried couples try to do this, sharing the assets could trigger a tax bill.

    How to protect yourself

    Make a will

    The only way to ensure an unmarried partner inherits is to draw up a will so that your assets are left exactly as you want them. While it’s vital that everyone makes a will, the stakes for unmarried partners are even higher.

    Think carefully about how all assets are owned

    If one of you moved in with the other, and the home remains in their name, have you contributed financially? Financial contributions can be reflected by switching to own the property as tenants in common. This allows the financial contribution to be reflected accurately in the proportions of ownership. Also think before taking on any debt: if the loan is for the benefit of both of you, it should be in both names. And consider your savings, if you’re saving together, it should be in both names.

    Consider a co-habitation agreement

    This will lay out all kinds of things, from how you manage money between you to who owns what in the relationship. It can also iron out what will happen in the event that you split up.

    Ensure both parents have parental responsibility

    Fathers can protect themselves by being there when the birth is registered, and being on the birth certificate. If it’s too late for that, you can agree parental responsibility between you and complete the form . If you can’t agree, you may need to go to court.

    Take out life insurance

    Both of you should have enough insurance to ensure the children are provided for in the event you die. After a split, the resident parent should have cover and if one of you is paying child support, they should have cover that will replace it in the event of their death.

    Build a nest egg for your child

    One of the best ways to protect your child against whatever the future holds is for them to have savings and investments in their own name. The Junior ISA can be a really sensible option. Nobody can access the money until they are 18, and at that point it belongs entirely to the child. While the money is saved or invested it grows free of tax, and there’s no tax to pay when it’s withdrawn either.”

    • There were 6,925 marriages between same-sex couples, of which 57.2% were between female couples.
    • 803 same-sex couples converted their civil partnership into a marriage.
    • 21.1% of opposite-sex marriages in 2018 were religious ceremonies, the lowest on record.