It has been a year of financial highs and lows for The Mail on Sunday Wealth & Personal Finance team. Here we share our triumphs and failures – and our resolutions for a joyous 2023.
OUR SUCCESSES IN 2022
Jeff Prestridge: Nurturing my self-invested personal pension
I have a small pension that I manage myself in the hope of improving my finances when I eventually retire (note the use of ‘eventually’).
Despite all the stock market trauma over the past few years, my portfolio has held up remarkably well. A result primarily of not being too greedy.
CHOP, CHOP – NOT SHOP SHOP IN 2023
Jeff: More walking and cycling
I’m determined to reduce my dependency on public transport in 2023.
Although I have little choice but to trust railway company GWR to get me to and from work (I live in Berkshire), I’m determined not to use the Tube or buses once in London.
Cutting costs: Toby Walne aims to save £400 a month on fuel by chopping logs for his fire
Instead, I’ll either walk to work from London Paddington and to attend business meetings – or jump on a Santander bike. Although annual membership costs £120, every ride costs nothing provided it is under an hour.
A great money saver and a super way of seeing a City that never disappoints.
Rachel: Be more charitable
Throughout the year, everyone from the council to my energy supplier has been upping my direct debits. Everyone bar charities.
I have numerous direct debits to charities that I have set up over the years. None rises with inflation. That means they are worth half what they were when I set them up.
For example, several years ago, the Journalists’ Charity, which helps those in need, encouraged supporters to set up a £3 monthly payment. This, they said, would have the financial impact on the donor of adding an extra pint to a round of drinks every month.
Today I still have £3 leaving my account every month – but the idea of being able to buy a pint in London for that sum is laughable. It’s time to up my payments, since I’m able to. Of course, all my charitable giving is topped up with gift aid.
Sarah: Reduce my spending
I’ve started one of my New Year’s resolutions early. I’ve just cancelled all non-essential subscriptions such as Amazon Prime and Netflix and moved to the cheapest gym membership tariff.
I am also planning to pay in advance for things I would usually spread out over the year, such as home and car insurance, breakdown cover and my TV licence. In many instances I will save money by paying upfront. Given that I hit a significant birthday last year – it starts with a five – I’m more aware than ever of hurtling towards retirement.
So I’m going to focus all my attention on working out where I want to be financially in ten or 20 years’ time, and how to get there. I was a Brownie when I was young, but I’m aiming to be more like a Boy Scout and ‘be prepared’.
Toby: Wielding the axe
My resolution is to start wielding an axe – literally. Cutting wood outside in the garden of my rural home will not only provide much-needed exercise, but provide the family with free chopped logs for a warming fire. It could save us £400 a month by using less energy to fuel the central heating.
Critics claim I will be destroying the planet with my woodburner, but the fuel comes from fallen trees and as a result I will only use my oil-fired central heating system occasionally. If I roll up my sleeves, there should be enough dead wood for 2023 – and I will season some for 2024 as well.
My self-invested personal pension is full of steady-eddie investments that will never shoot the lights out, but they take market setbacks in their stride: the likes of investment trusts F&C (boring but dependable), Personal Assets and Capital Gearing (both more boring than F&C).
Add in a bit of gold, natural resources, Asian and global income – and the result is a pension pot heading in the right direction. Slowly, not rocket-like.
Rachel Rickard Straus: Making my phone more secure
If there is one thing I have learnt from investigating scams, it is that anyone can fall victim. That’s why in September, I changed my phone’s settings so that when a notification pops up on the screen, it does not give away what it is about or who it is from until the phone is unlocked.
Previously, messages would pop up with the first few words visible. I had always thought this was harmless – and often quite useful.
But what I didn’t realise is that it also meant that if my bank sent me a text message with a security code, the code could be read without unlocking the phone.
Therefore, if a scammer got hold of my phone, they too could see these messages. As scams grow more sophisticated, we need to use every line of defence available.
Sarah Bridge: Sorting out my pensions
Getting to grips with my pile of pensions has made me feel good. I have worked for various companies over the years. As a result, I have an array of eight pensions.
My sister Rachel suggested I speak to a local adviser, BP Sanders & Co, based in Berkhamsted, Hertfordshire. I scooped up all my paperwork and went in search of clarity.
I was advised to leave two as they were because of being final salary schemes guaranteeing me an income in retirement.
The remainder I consolidated into a Fidelity pension. It means I can now check on its value whenever I want, as well as continue to add to it.
Toby Walne: Drinking coffee on the cheap
I never would have thought that buying a fancy new coffee machine would turn into a financial win. The Gaggia Classic Pro cost me around £400, but it is now more than paying for itself.
As a caffeine addict, I used to think nothing of spending £3 on a coffee on my way to work. Not any more. Thanks to my Italian espresso maker, I can make a fresh cup for 50p – and now take a flask wherever I go.
AND OUR FAILURES
Jeff: Claiming refunds for a broken train system
Claiming refunds for delayed or cancelled train journeys should be easier than it is. Until recently, I often thought it was more trouble than it was worth, but the strikes and the increase in delays and cancellations have changed my mindset.
If a train is more than 15 minutes late, I will make a delay repay claim straightaway.
The recompense may be minimal, but in the past month alone, I’ve received refunds ranging from £3.03 to £24.22. If only I had been as diligent in the previous 11 months.
Don’t let the trains get away with poor service.
Rachel: Dealing with the taxman
Revenue & Customs, you have beaten me. I am owed a refund of tax and have tried three times this year to sort it out. Each time, I’ve been left on hold for so long that I’ve given up. I’m determined to sort it out before the end of the year.
Sarah: shopping on impulse
The cost-of-living crisis has focused my mind on spending, but my bank statements show it is all over the place.
I’m guilty of never planning ahead when it comes to buying food, so I shop on impulse – sometimes going to the same supermarket three times a day.
I buy clothes and family presents at the last minute rather than snapping up bargains in advance – or taking the time to shop around for the best prices. Frequent trips to lovely local pubs don’t help either. I need to plan ahead more in 2023.
Toby: Failing to fix a poorly car
Ignoring the rattle from my wife’s ageing BMW 3 Series car cost me £4,000.
The timing chain snapped and destroyed much of the diesel engine, so it needed a rebuild at a local garage.
Had I sorted the problem the moment the engine started to sound strange, the repair bill would have been £300.
So in future, car maintenance is a priority.
