Cash

Well, the holiday period is over for most and it’s back to school. While thinking about what topics are seasonal, Christmas came to mind. My initial reaction was it’s far too early to start thinking about that, but after spending a little time researching it, I decided my views were different to others. In fact it has been reported that Selfridges opened its Christmas Store in Oxford Street on Monday the 29th July. I was quite shocked, but apparently it was only 2 days earlier than last year. *1

After one major chain went under it was remarked that the only time it made a profit was at Christmas. The reason for the store going under was that it didn’t do so that year. Whether this is true or not I am sure that most, if not all of us, would agree that we spend more at Christmas than at any other time of the year. I have to say I am always amazed at the madness in the shops.

But is the high street shop also a thing of the past?
According to another source, 87% of retail goods (not including food) are now bought online, with us using laptops in the evening, smartphones and tablets during the day. *2

Having said that it has been reported that last Black Friday Argos had over a million customers visit the store. Even so 71% of customers visited via a mobile device. *3

So what would my advice be?

Well, before all the hype of Christmas begins, plan whom you are going to buy for and set yourself a budget. Make use of things like Black Friday, which has come over from the states and is always the Friday that follows Thanksgiving, when many great offers can be found.

Over the years as a Financial Adviser I have noticed that the clients who budget and know how much they are spending seem to have a lot more to show for their money. If you do want some help with this you may find that Cashflow Planning can really help.

If you haven’t heard about Cashflow Planning please utilise our free without obligation consultation. We can run through this with you and show you the virtues. Contact us now to book your session.

*1Independent, 29th July 2019
*2 Ecommerce News, 7th September 2018
*3 Telegraph, 12th September 2019

Although this is a subject I have written about before, as Brexit still enters many of our conversations I thought an update would be good. Like many I can remember thinking at the beginning of this year that finally by the end of March we will all know what’s happening. I don’t think that there were many people who believed that in August we would still be in the dark.

But what impact is this having?
It has been reported that a leading estate agent which sells and manages commercial and residential property around the world, stated that “fewer houses were sold in the UK in the first half of 2019 than at any point since the first half of 2009”. *1

But I don’t think it’s right to blame Brexit totally for this as there were major changes regarding ‘Buy to let’ properties just prior to the famous ‘Leave’ vote. I think this is a major contributing factor.

Rental amounts are also reported to have taken a hit. The biggest falls in rent have been in south-east England, where average rent has dropped from £879 to £854 over the past year. It has been reported that comments have been made, “With rents generally falling, and average wage growth above inflation, this is positive news for renters concerned about affordability,” *2

So what about the stock market?

Well, when I last recapped back in December 2018 the FTSE 100 was at 6,721.54 *3, and opened today at 7250.90 (14/08/2019), this is still down from 21 May 2018, when it reached over 7800.

The news of the pound isn’t so good as this month it did go down to a ten year low, which isn’t good for holiday makers in the middle of the prime season.

As the political situation is still largely unresolved, I have to say that I do hope that by the end of October we will have some certainty.

If you would like to discuss the above we do offer a free, without obligation consultation to discuss our advice process with you. This is so important if you are worried about the impact that the current climate may have on your savings, it’s always a good idea to air your concerns.

*1 Guardian newspaper 8th August 2019
*2 Guardian newspaper 11th April 2019
*3 Opened 11th December 2018 at 6,721.54