Personal Finance
Little means large when it comes to building up happiness
THE key to happiness, according to a new survey, is not the amount you earn but how much you have left once your bills are paid. And that means simple steps to free up more cash could significantly improve your sense of wellbeing.
The latest Cash Happy report from financial services provider SunLife says there is a direct link between what people have left over to spend and their emotional state.
By that measure, Scots should be the happiest people of all. Although the average monthly income of £2,100 is not the UK’s highest, lower bills mean those living north of the Border have more disposable income, with an average of £521 left at the end of the month, compared to an overall figure of £441.
This is in line with research on UK life satisfaction by the Office for National Statistics. People in the Highlands came out best, with 43 per cent rating themselves at nine or 10 out of 10.
Ian Atkinson, SunLife’s marketing manager, said: “You don’t need to be a millionaire for money to buy you happiness. Just by cutting out a takeaway coffee you can save around £2 a day, so becoming one of the most cash happy in the country could be much easier than we might think.”
your costs by this small daily amount could free up over £700 a year to spend on things that really matter to you.
Meanwhile, Glasgow-based financial capability organisation Epic 360 says a smoker cutting out just two cigarettes a day will save almost £350. Planning food shopping to eliminate waste could put £470 a year back in your pocket, while not leaving electrical items on standby could save £380.
Making other small changes could be equally worthwhile. Gocompare.com says more than four out of 10 adults haven’t swapped provider for any of the 10 commonest financial products in the past year, potentially wasting billions of pounds.
Tom Lewis, spokesman for the switching website, said: “According to independent research, just over half of customers using Gocompare.com could save up to £232 on their car insurReducing ance, up to £62 on their home contents and buildings insurance, and £207 on their energy bill.”
He added: “The only reward for remaining loyal to a bank or insurer is a higher price than you would pay as a new customer. So shop around for the best deals, and if your existing provider does not measure up, switch.”
The same goes for debt repayments. If you have an outstanding balance on a credit card, look into moving it. Halifax currently has some of the most competitive balance transfer deals.
One card charges no interest for 24 months with no transfer fee, and another, with a 2.49 per cent fee, charges nothing for 40 months.
MBNA, Virgin Money and Sainsbury’s Bank also have cards that charge no interest for 40 months but with slightly higher fees.
If you are paying hefty overdraft charges, consider paying off what you owe with a low-cost personal loan. Annual percentage rates to borrow £3,000 over three years start at under 6 per cent with Zopa and Lending Works.
Glaswegians are among those most likely to shy away from taking control of their finances. In a survey by online accountancy firm Heavenly, 39 per cent ranked themselves as average to awful at money management, compared to
‘‘ Cutting out a takeaway coffee can save £2 a day. A smoker cutting out two cigarettes a day will save almost £350
33 per cent of those living in Edinburgh and 30 per cent across the UK as a whole.
However, switching utility and financial providers needn’t be complicated or time-consuming. In many cases, it can be achieved at the click of a few buttons on a comparison site.
For more information on choosing the right products to meet your needs, visit the independent website Moneyadviceservice.org. uk.
Anyone living in Glasgow who would like to improve their skills can contact Epic 360 for free one-to-one sessions on analysing spending, budgeting, financial products, preparing for changes in income and planning ahead.
And when it comes to enjoying the money you have freed up, Mr Atkinson said: “The best use of this spare cash is to spend it on experiences, because it’s these that make us happiest, not material goods.”
This week the Money and Mental Health Policy Institute launched an initiative based on the links between mental health and debt.
Its director Polly Mackenzie said: “Increased spending is a symptom of a number of mental health problems, but that doesn’t mean that those living with them should be written off to a life of financial difficulty.”
Its research found 93 per cent of people with mental health problems