Where does one go for financial advice nowadays? More and more, it seems that decent impartial financial advice isn’t easy to come by – after all, as impartial as people claim to be, quite often you can’t confirm this yourself.

Because of this, the best way to get properly impartial advice is to make as many enquiries as possible yourself. Your bank might tell you that they have a great deal on a loan or a credit card, but you might find that by making enquiries elsewhere, you could get a far better rate or deal on what you want, which is where services like price comparison sites can really play to your advantage.

Just by tapping in a few details and hitting that button, you can view details on a huge number of deals on the product you’re looking for, ranked to be as close as possible to the parameters you set in the first place, and many of which you can apply for directly.

Of course, this is all well and good, but who do you turn to if you don’t know what you want? Well, the advice given to you by your bank can normally steer you in the right direction, just don’t assume that they will be able to offer you the best deal – often they will be able to, due to a special “existing customer rate” or similar (This is often true for loans, as your bank has a greater knowledge over your financial dealings), but quite often it can be worth shopping around – especially in the case of cash ISAs at the moment, where some banks are offering just .05% interest rates and standard savers often offering little over 3% – Which, when you consider that, according to moneysupermarket.com: “A higher rate taxpayer needs an account paying at least 6.17% in order to earn a positive return [on their savings], while someone in the basic taxband needs to be earning at least 4.62%” Means that at the moment, finding the best place for your money is even more important than ever.

There is a lot to be said for carefully considering your financial position, learning about the different options available and then choosing the one most appropriate to you. True enough, this may not be the quickest way, but do you really want to rush into what could be a very important financial decision? moneysupermarket.com can make this decision easier, offering not only detailed price comparison, but a wealth of other information that can help you decide on what product and what type of account is right for you.

The US unemployment rate has risen above 10% for the first time in 27 years, leaving the US in a state of despair.

President Barack Obama will hold a jobs summit on Thursday, focused on job creation.

Although he has included business leaders amongst the 130 experts attending the summit in Washington, Republicans in Congress will opposed to any major spending plans.

President George W Bush has already frustrated them by spending billions on bailing out the banks and car makers.

The “big government” image and creating big financial defecits to be paid for by future generations are unpopular in Washington.

Economy.com’s Mark Zandi believes deficits are a major worry, but we can’t afford to be concerned about it now.

“That’s a problem not for 2009, not for 2010. That’s a problem for 2011, 2012 and beyond,” he says.

“We have to make sure that we don’t go back into a recession, because if we go back into recession, the cost to taxpayers will be even greater.”

“The deficits will be measurably larger, so I think it’s important to spend more money now.”

According to Mr Zandi, government spending needs to be aimed at assisting local government offices, as with tax funding falling, many employees are at risk of losing their jobs.

President Obama is on the look out for new ways to combat unemployment.

Unemployment benefits usually run out after six months in the US, but have been extended because of the highest unemployment rates.

Mr Zandi believes continuing with providing benefits to the unemployed as essential to maintaining demand, as those with no money make no purchases.

That situation could develop into a ‘catch-22’, downward spiral, as consumers that don’t consume, results in businesses cutting their workforce, causing more unemployed with no money to spend.

Another area where Mr Zandi feels the government can make a unique contribution is providing credit to small and medium-sized businesses.

Banks are still cautious over lending after the credit crisis, but have always given capital to start-up companies to help them expand, and these new businesses usually provide America with the majority of new employment.

Mr Zandi believes that “it’s clear that even when the economy gets back on its feet, we’re going to have very high unemployment in many parts of the country for a long time to come.

“One reason is that the people out of work don’t have the skills and education necessary to be employed in the jobs of the future.”

The most important factor when choosing to manage your personal finances effectively is time. A greater time investment will almost always result in a greater financial return.

Therefore the sooner you start to manage your finances, the greater return and financial ease you will feel in the future. Many people fail to plan ahead, which results in struggling to juggle finances at a later point in life.

Money management should focus on four primary questions:

1.       What financial goals would you like to achieve?

2.       When can you expect to achieve them?

3.       What finances do you currently have?

4.       What level of risk would you make to achieve these targets?

Choosing somewhere to live is an essential in everybody’s lives, and therefore, buying a house will be the biggest financial purchase that people will make. The financial investment into a home will affect all your other finances.

Making big decisions on your lifestyle will affect your financial goals. If you consider a luxury holiday to be one of life’s essentials, you will have less money left over for savings and investments.

When do you want to retire? What expenses do you currently have? Deciding what your priorities are will help to determine what money you will have left.

It is worth assessing your current liabilities, as these expenditures and assets could be reduced or sold and free up money for the future.

Calculate how much spare money you have so that you can form an investment plan. Investments can vary dramatically. Some are high risk for higher reward or loss, and some are low risk for a steady growth on investment. It’s up to the individual to decide what level of risk you are prepared to make.

Once these considerations have been made and your plan is in places, it’s important to assess the decisions you’ve made and how they affect you on a day to day basis. You plan may be too restrictive, leaving you with not enough money to live on, or perhaps you could make greater short term sacrifices to benefit you in the long term.

A small amount of time spent on your current finances can be highly rewarding for your future.

Official statistics show that one of the main measures of inflation has reached its lowest point since September 2004, another sign of sterling weakening. The annual rate of 1.1% in September was lowered from 1.6% in August by the Consumer Prices Index (CPI).

A separate measure of inflation conducted by the Retail Prices Index (RPI) found that mortgage interest payments and housing costs also dropped, from -1.3% to -1.4%.

The pound also reached its lowest point in the past six months when it fell 0.5% against the Euro to 1.0628 Euros and to a five-month low of 1.5730 US Dollars.

Weak

Duncan Higgins, a senior analyst for Caxton FX, felt that “this is bad news for the pound.”

“The CPI figures will weigh heavily on the UK currency and will continue to discourage investment.”

A report conducted by the Centre for Economics and Business research predicted UK interest rates would not rise above 0.5% until 2011 and fail to meet the 2% mark until 2014; a further damnation to the outlook for the pound.

Meanwhile, the strength of the UK economy was dealt a further blow last week when it was revealed that industrial output dropped in August.

A prediction for the GDP had to be recalculated by the National Institute of Economic and Social Research after the UK economy failed to grow during the June/September quarter.

However, the economy is still very “frail” according to the British Chamber of Commerce (BCC), despite business confidence improving.

In an effort to sustain a stable broader economy and prices, the Bank of England is making efforts to retain 2% CPI inflation. Should the CPI inflation drop below 1%, the governor of the Bank of England must provide a written explanation to the Chancellor, Alistair Darling.

High energy prices a year ago, in comparison to lower energy prices this September are being blamed for the recent fall in inflation. The Office for National Statistics (ONS) reported that electricity, gas, and other fuel bills tumbled by 7.3%. Energy costs have started to level more recently, with little change from August to September.

Jonathan Loynes from Capital Economics predicted that we can expect to see CPI back at the 2% mark by the start of 2010, due to increased energy prices and VAT returning to 17.5%. He does believe that a “huge amount” of unused production capabilities would keep inflation down and “keep alive the threat of a period of outright deflation late next year or beyond.”

In contrast, Keith Wade of Schroders UK forecasted that it “probably will be the low point in inflation.”

The problems within the economy at the moment means that people are having to tighten their belts a little to make ends meet, but the credit crisis doesn’t mean that we should lose sight of our health.

Nutritionists say that just 80p a day can get you eating the recommended 5 portions of fruit and vegetables a day.

Charities such as the World Cancer Research Fund (WCRF) has expressed its concerns that money problems will see shoppers forgetting about healthy food items and go straight for the cheapest they can find.

The WCRF are asking that if shoppers want to save money, they buy goods that are in season, and they go for cheaper and frozen produce.

Healthy Food Prevents Cancer

The research company has previously found that eating a variety of fruit and vegetables decreases the risk of developing cancers along the digestive tract including in the mouth, pharynx, larynx and stomach by nearly 20% and cancer of the oesophagus by nearly 5%.

Also, tomatoes and other similar foods contain lycopene, which has been shown to decrease the risk of prostate cancer by 20%.

The general increase in food prices has led to pressure being put on family budgets because they think fruit and vegetables are too expensive in comparison to other more substantial food stuffs, and expire faster, which has led to a decrease in consumption of such foods.

Nathalie Winn has put together a daily menu that proves that it is possible to eat the recommended five-a-day for less than £1.

She says: “The fact is that fresh fruit and vegetables can sometimes be expensive, but if you shop carefully there is no reason why you cannot have plenty of fruits and vegetables even on a limited budget.

“The secret is not to restrict yourself to the fresh fruit section of the supermarket, because frozen vegetables and canned fruit also count towards your five portions a day and they often cost much less.”

What The Experts Think:

She also advises that to save money, look for fresh produce that is in season: “People should not be taken in by the latest fashionable ‘superfood’, because there is no evidence that these are any better for you than traditional fruit and veg,” she advises.

The president of the Faculty of Public Health, Professor Alan Maryon-Davies says that there is a public perception that a healthy diet is always expensive.

He says: “You can eat quite healthily relatively cheaply, especially if you go for the special offers.” However, he also adds that people are not always sure what counts towards their five-a-day and what doesn’t.

“Some people don’t realise that a glass of fruit juice is a portion, and some think that it just has to be fresh fruit and vegetables,” he added.

What Do You Think?

Do you have any tips for those wishing to save money on healthy food? Is it as easy as the experts make out to make ends meet and still eat healthily? Leave your comments here.

The last major electricity company, British Gas, has finally cut its electricity prices by 10%.

The cut comes into effect immediately, saving around 4.5 million customers who have standard tariffs and pre-pay meters, an average of £43 each year.

The majority of the biggest countries cut their prices by 10% in February, meaning that more than 7 million customers benefitted.

According to a consumer group however, prices should be cut even lower as wholesale energy costs have halved.

This cut still puts electricity at a higher cost than the beginning of last year, due to the company putting up their prices by 26% in total in 2008.

The managing director of British Gas has said: “The price of electricity on the wholesale markets has been falling and we’ve always said British Gas will do what we can to lower prices when we can.

“Today British Gas customers are paying less for their electricity than they were two years ago.”

Wholesale Peaks Months Ago

E.On, EDF Energy, Scottish Southern, Scottish Power and Npower all started providing their customers with cheaper prices back in March, making British Gas the last major company to change by a couple of months.

Regulator Ofgem said that wholesale prices for energy peaked back in December last year.

Energy expert for Consumer Focus, Robert Hammond, said: “We would have expected much bigger reductions considering that wholesale gas and electricity prices are half what they were at their peak last year.

“This again raises the question of whether wholesale price cuts are being fairly passed on to consumers.”

Some consumers are complaining that energy companies are too hasty to increase their prices, but reluctant to bring them back down again. However, Ofgem are saying that they will continue to monitor the situation, but that there is no evidence to prove that this is so.

Analysts believe that energy prices will be reduced further by British Gas later in the year.

Price Wars To Begin?

The director of the price comparison site Energyhelpline said: “British Gas now has the cheapest standard tariff for dual fuel customers.

“Other suppliers will hate this and we expect them to retaliate soon with price cuts of their own.”

However, it is also predicted that any cost cuts will be temporary as wholesale prices are expected to rise again next year.

“Prices for the period from winter 2010 onwards have either been stable or on the increase because of the unexpected economic recovery,” said Dr Lowrey of the Energy Information Centre.

“Suppliers have been given some headroom to reduce retail prices in the short term,” he added, saying that there was a good possibility that they would go up again in about 18 months time.

What Do You Think?

What are your thoughts and opinions on this? Have your say. Leave your comments here.

In times like the ones we are currently facing the cliché ‘every penny helps’ really becomes good advice to live by. But what little changes can you make to your lifestyle to ensure that those pennies soon turn into pounds?

Here are some tips to get you started adding to that piggy bank:

1) Don’t take credit or debit cards out with you unless it is absolutely unavoidable. Things always seem more expensive when you can see the money you’re parting with to get them, and therefore you will be more likely to analyse your spending and less likely to make that unnecessary purchase.

2) Lack of funds sounds like a perfect time to try giving up smoking. Try the maths, figure out roughly how much you spend on cigarettes each month, I bet you will be surprised it the outcome, then imagine what that money could be better spent on!

3) Most people these days pay their Council tax and water bills via direct debit. Council tax is usually taken out 10 months/year, and water 8 months. Try being disciplined with yourself and moving the money you would usually spend on these things into a savings account on the months you don’t have to pay them.

4) Got some old valuables lying around that you never use, never really wanted, but cost a pretty penny however many months or years ago? Try selling them on eBay or something. You may be surprised how much junk you have lying around and how much you can make from it!

5) Invest in a breadmaker. Not only is it slightly cheaper, but is also better for you as it avoids artificial additives. Initially it seems like a lot to be forking out for something you can much more easily get down the local shop, but it will quickly pay for itself and then some in the long run.

6) Take your own food with you into work for lunchtime, and stay in the office to eat it. This should stop you running to the local expensive sandwich shop every lunchtime, and, depending what you take with you, could save you many-a-penny in the long run.

7) Go food shopping once each week only (no nipping in after work for a couple of things), and make a list and STICK TO IT! Eat a good meal before you go to the supermarket, this will help you resist the temptation to impulse buy. You could also try shopping after 9pm when many supermarkets reduce their prices, but this could lead to lots of savings, or alternatively spending more on things you don’t really need because they were cheap!

8) Try getting plug timers and using things like your washing machine and dishwasher after 12.30 when the price is cheaper, you’ve be amazed at the difference it makes to your energy bill!

What Do You Think?

Do you recommend any more money-saving suggestions? Let us know, comment here.

Seven and a half million customers will apparently benefit from the 10% cut British Gas plan to cut its standard tariff by.

The plan will come into force on 19 February, saving the average household £84 per annum. However, the plan will not apply to those on fixed tariffs.

It has been said though that even if other companies follow suit, the move will be “too little too late.”

In 2008, British Gas, which also trades as Scottish Gas in Scotland, raised its prices by 35%, while other companies raised prices by 20% or more.

At the end of last year, the ‘big six’ companies were pushed to pass on lower wholesale prices to customers.

Phil Bentley, British Gas managing director said: “we are committed to providing the best possible prices for customers.
“This price cut will go some way to helping customers to manage their budgets, and we will continue to do what we can, when we can.”

Watchdog Consumer Focus says it thinks British Gas has done the right thing, adding that: “there are millions of dual fuel and electricity only customers that will not see a penny off their bill.
“We will now turn the heat up on the other five companies that are keeping prices sky high.”

Age Concern is worried that unless further cuts are made “many of the poorest pensioners will continue to struggle to pay their energy bills.
“Even with price decreases, millions of the poorest pensioners and families will still be living in fuel poverty and will continue to pay more for their energy than wealthier customers.” The charity’s director Gordon Lishman said.

The cost of wholesale gas is linked to the cost of oil, which has significantly fallen since its peak in summer 2008.

“Consumers would not have to rely on occasional grand gestures by energy companies if the market was more transparent and competitive in the link between wholesale and retail prices,” said Mr Mayo.

Tim Wolfenden, head of home services at price comparison site USwitch.com said British Gas were making a positive first step. He added that by just cutting gas prices and not lowering electricity prices suggested suppliers were feeling cautious, but that other companies were likely to cut their prices fairly soon too.

He said: “it’s going to give some customers a bit of respite at a time of year when they are going to be spending a significant amount on heating their homes.
“Energy price cuts are likely to be too little too late to help consumers with this winter’s fuel bills. More importantly, it is now looking highly unlikely that price cuts are going to wipe out last year’s painful hike in household energy bills,” he added.

He also urges people to look into deals that other companies have going to check there wasn’t a better plan out there for them, especially if they have never switched before.

It is expected that the Bank of England will cut their rates to their lowest on over fifty years.

Business leaders and economists alike have suggested an interest rate cut down to 2%, which has not been seen since 1951, in order to try to halt the current economic depression as much as possible.

It was just last month that the Bank announced that it would cut its interest rates by 1.5%, to 3%.

Minutes from last month’s meeting show that the Banks policy makers had discussed bigger cuts in borrowing costs, before settling on the dramatic reduction in interest rates.

Since then, there has been rapid deterioration in businesses since this meeting has raised fears that the economic crisis in Britain could be worse than originally feared.

Among our current economic problems includes the fact that  businesses are finding a continued restriction in bank loans, unemployment continues to rise, mortgage lending is still slowing, consumer confidence has fallen and shops are having to severely lower prices in order to attract Christmas shoppers.

Yesterday, a key measure in our services sector contracted in November at its fastest rate since at least 1996.

Also in November, the UK services purchasing managers’ index (PMI) dropped more than expected to a record low of 40.1, compared with 42.4 a month earlier. (Figures below 50 is a sign of their outlook worsening.)

Economists expect the Bank of England to respond decisively. George Buckley, chief UK economist at Deutche Bank has said: “They need to do something aggressive again, because of where the data’s been taking us.”

Judging by past actions, the Bank has shown itself to be capable of such decisive, drastic action when needed.

Governor Mervyn King told a parliamentary committee last week that: “We will take whatever action we feel is necessary on interest rates to steer the economy back into calmer waters. We may need to cut Bank Rate more than we would otherwise have done.”

Moneyfacts, a financial information service, has estimated that homeowners with a standard £150,000 repayment mortgage, could be saving anything between £19 - £75 per month, depending on how big the rate cuts actually are and if lenders will pass on the cuts in full.

John Charcol, mortgage advisors, has said that only 10 of 69 lenders have passes the last two mortgage rate cuts in full to their customers on standard variable rate mortgages.

Lloyds TSB, and therefore also Cheltenham & Gloucester, as the company also lends under this brand, have already promised to pass on reductions to borrowers on standard variable mortgages in full.

Customers on tracker deals however, may not see the full benefit of further Bank cuts in rates.

Some lenders have introduced a floor (also called a collar by some banks) which means that if interest rates fall below a certain point, the cuts will not be passed on to customers.

Mortgage rationing is set to become more of a problem in 2009 if the government don’t intervene, according to a lending group.

Director General of the Council of Mortgage Lenders (CML), Michael Coogan, has said there are now fewer lenders with less money. He also suggested that if lending levels in 2009 go in a similar way to 2008, they could be a challenge. And added that smaller companies may have to spend a third of their profits covering the bail-out of bigger banks.

Mr Coogan was speaking at the CML’s annual conference on Tuesday and painted a rather dull picture for people intending to get onto the property ladder in the near future. He said that: “Consumer borrowing will simply not return to the levels seen in 2007, even if funds increased and a wide variety of lenders were to become active in the mortgage market again.

“In fact, unless the government takes further targeted action to help market participants, we will see a worsening of the picture next year compared to this.

A good outcome next year in my view would be if we had lending at levels seen in 2008, but bearing in mind we will be in a recession…this would be a real challenge.”

Sir James Crosby also voiced similar views earlier this year, when in a recent report to the chancellor, he suggested that net new mortgage lending would pads the low of £15 billion in 1995 and fall below zero.

House prices in Britain have fallen by 10% to 15% this year so far. Mortgage approval is also down 74% compared to last year, and it is expected that there will be further falls in prices.

Mr Coogan also claimed that building societies would make a loss this year. Other small financial businesses are seeing their profits hindered by “unintended consequences” of moves to protect customers with failed banks.

Though the government may have made changes in order to avoid tax-payers having to cover compensation paid on those who have lost money with Icelandic banks, in actual fact, it will be financial institutions of all sizes that have to cover the cost via the annual financial services compensation scheme. This has cost some of the smaller institutions up to 30% of their annual profits.

Mr Coogan has however backed the mortgage lenders decision to delay the process of repossessions for borrowers in financial troubles. But he has also asked for more support from the government. He has proposed a “backstop scheme” in order to sell property to their lender which they could rent back. This would stop the need to go to court, as well as underpinning property prices, and allow people to stay in their own homes, therefore supporting the local community.

Prior to Thursday’s decision on interest rates, he also criticised the idea as “short-sighted and counterproductive”, claiming that this was pushing down interest rates offered to savers.

Jon Pain of the Financial Services Authority has warned lenders to keep to contractual rules when passing on cuts to customers, saying that any floor on tracker mortgages must be made clear in an initial mortgage contract.

At the same conference, Liberal Democrat Treasury spokesman, Vince Cable also said that there should be no return on reckless mortgage lending, claiming that: “the industry should now be exploring new products to restore faith in mortgage lending.”