US economy declines for first time since 2020 as UK business failures hi...

US economy declines for first time since 2020 as UK business failures hit 60-year high

 

The world’s largest economy contracted by an annualised rate of 1.4% in the first three months of this year. The sharp drop follows growth of over 6% in the final quarter of 2021.

 

America is experiencing the highest inflation for 40 years, reduced government spending and supply chain disruption from lockdowns energy in China.

 

Despite this, analysts are not predicting a full-blown recession. 

 

Watch video version

 

Business insolvencies in England and Wales jump to 60 year high.

 

Rapid increase in voluntary liquidation is driven by inflation and supply chain difficulties. Rising costs for necessities such as oils and home energy are sucking cash out of consumer pockets, which means less money to spend on eating out and small luxuries.

 

World Bank warns of human food catastrophe and war causes shortages and soaring prices.

 

Food prices are now at the highest rate since UN Food Index tracking records began 60 years ago after jumping 13% in March.

 

Food commodity prices were already at a 10 year high before the war in Ukraine.

 

Even in a wealthy country like the UK, the numbers of people using food banks is rising sharply according to anecdotal evidence.

 

The office for National statistics reported that nearly one in five people are now borrowing more than they did a year ago and 43% say they will not be able to save money in the next 12 months.

 

This means higher personal debts and lower savings for millions of people.

 

UK inflation is now running at 7% per annum, up from less than 1% in February 2020.

 

What does inflation mean to you?

 

The costs of goods and services has risen by 49.4% since 2010, which means you need £14,936 to have the same buying power as £10,000 in 2010.

 

Your £10,000 in 2010 would needed to have grown by 3.4% per year just to keep pace with inflation, according to figures based on the Retail Prices Index (RPI). Source: Hargreaves Lansdown.

 

If your money was on deposit in the bank over this period the chances are your money has not kept pace with inflation and will only buy you half the amount you could have bought in 2010.

 

If you have invested your money in a well performing managed fund or in a decent property your money will most like have kept pace or outstripped inflation giving you a real rate of return.

 

Stock Markets jittery

 

Stock markets in Europe and Asia fell sharply this week at n fears of Chinese lockdowns but later recovered.

 

Strict lockdowns in China are affecting millions of people, which is slowing down manufacturing of goods needed by western economies.  

 

House prices still rising in the UK

 

A shortage of family homes continues to drive up demand despite recent interest rate rises.

 

3 quick tips to GET CONTROL of your finances in times of rising prices.

 

1. Get control of your outgoings and expenditure.

 

Knowing what money is coming in and where it’s going to keys to get in control of your finances. In my S.M.A.R.T Money training I show you how to immediately get control of your finances.

 

2. Get control of debt.

 

Mental health and finances are closely linked according to the Mental Health Policy Institute.

Pay down the debts with the highest interest rate.

Never ignore debts and I was asked for help or advice. In the UK there are organisations offering free advice, like Citizens Advice, the National Debt Line and the Samaritans.

 

3. Get control of spending.

 

Make small cuts in many different areas.

Rather than try to cut out one big item, tried to make savings in multiple areas. 

Earn more than you spend

Look for opportunities to earn more money. For instance, a part-time job or a side-line business.

Also check out my ‘5 Inflation-Busting Tips’  for money saving ideas to help you through this. -https://youtu.be/2jZCO4V7uX0

Make the most of your money and resources and learn how to get control and manage your finances.

Consider investing in real assets which tend to hold their value and act as a hedge during times of high inflation.

Assets like property, stock and shares and gold have long been held as a long-term inflation hedge.

Remember, you are not alone. Get help, take advice, and use debt counselling services like Citizens Advice if you are having trouble.

Can you take proactive steps to increase your wealth?

Do people get rich during recessions and depressions?

The answer is yes!

To help you get through this and come out stronger at the other end I am offering subscribers a free MONEY MASTERCLASS.

Join me for an intimate Money Masterclass this Wednesday

The NEW WAY to build your wealth, IMMEDIATELY GET CONTROL of your money and learn how you can become FINANCIALLY FREE in 28 days using my S.M.A.R.T MONEY FORMULA!

With inflation at a 30-year high there has never been a better time to join me for this brand new Money Masterclass!

I am inviting a small group of people only to join me this WEDNESDAY 7PM for an intimate S.M.A.R.T Money Masterclass!

>>> REGISTER HERE - https://contexttraining.aweb.page/p/101d6194-4fe4-4036-8cc8-615ecc35f857

Secure your seat now!

Food Shortages on the way – time to act!

Food Shortages on the way – time to act!

Food shortages and even rationing could be on the way as the Russia Ukraine war continues.

Sanctions against Russia are forcing up the price of everything from oil and gas to wheat and Fertiliser chemicals. This is adding to existing problems of inflation caused by ‘government money creation’, soaring shipping costs and supply chain issues in China.

Farmers are warning of coming food shortages, as items like cooking oil disappear from supermarket shelves.

“Over 36 countries depend on Russia or Ukraine for half their wheat imports”

Antonio Guterres, UN Secretary General

The UN Secretary General warned of rising poverty and added:

·        Wheat up 30%

·        Oil up 60%

·        Natural Gas up 50%

·        Fertiliser up 100%

The National Farmers Union (NFU) reports:

“Ukraine is a major supplier of wheat, barley, maize and oilseeds (particularly sunflower oil and meal) to the global market meeting the needs of an estimated 400 million people worldwide. The interruption of that supply with the closure of the Black Sea ports is being hardest felt in North African and the Middle East countries most reliant on Ukrainian wheat.

“The World Food Programme estimates that its operational costs of feeding food insecure people will increase by €26 million per month compared to current levels, €64 million per month compared to pre-pandemic levels.”

The NFU warns of “an acceleration in the rise of commodity prices”.

“Global commodity prices were already rising steeply as the world economy emerged from the pandemic – over the last 18 months wheat prices have risen nearly 110%, maize and vegetable oil prices are up 140%, and soybean prices are up 90%. The conflict in Ukraine has accelerated the rise in commodity prices, with wheat prices increasing 70% since the invasion.” Source: NFU

Signs of poverty are already being seen in the UK, a wealthy country.

$50 billion was wiped off the value of Netflix as its share price dropped 35% following reports that the company lost 200,000 subscribers in the first quarter of 2022.

Economy is in winter season right now but…winters don’t last forever!

·        Bulk buy non-perishable consumer goods and food as a hedge against inflation

·        Buckle down, tighten your belts and get through this, you will survive!

·        Consider spreading the cost on direct debit to cushion the blow.

·        Build your credit lines and watch your credit rating like a hawk.

·        Earn more cash by doing part-time jobs or a side-line business.

Watch my ‘5 Inflation-Busting Tips’  for money saving ideas to help you through this. -https://youtu.be/2jZCO4V7uX0

Make the most of your money and resources and learn how to get control and manage your finances.

Consider investing in real assets which tend to hold their value and act as a hedge during times of high inflation.

Assets like property, stock and shares and gold have long been held as a long-term inflation hedge.

Remember, you are not alone. Get help, take advice, and use debt counselling services like Citizens Advice if you are having trouble.

Can you take proactive steps to increase your wealth?

Do people get rich during recessions and depressions?

The answer is yes!

To help you get through this and come out stronger at the other end I am offering subscribers a free MONEY MASTERCLASS.

Join me for an intimate Money Masterclass this Wednesday

The NEW WAY to build your wealth, IMMEDIATELY GET CONTROL of your money and learn how you can become FINANCIALLY FREE in 28 days using my S.M.A.R.T MONEY FORMULA!

With inflation at a 30-year high there has never been a better time to join me for this brand new Money Masterclass!

I am inviting a small group of people only to join me this WEDNESDAY 7PM for an intimate S.M.A.R.T Money Masterclass!

>>> REGISTER HERE - https://contexttraining.aweb.page/p/101d6194-4fe4-4036-8cc8-615ecc35f857

Secure your seat now!

>>> REGISTER HERE - https://contexttraining.aweb.page/p/101d6194-4fe4-4036-8cc8-615ecc35f857

Join me LIVE…

Here’s a reminder of what we’ll cover in the training:

1. HOW TO GET CONTROL OF YOUR FINANCES
2. HOW TO BE FINANCIALLY FREE IN 28 DAYS
3. HOW TO ACCUMULATE WEALTH

>>> REGISTER HERE

With so much uncertainty in the world, with businesses, jobs and the economy being turned on its head, there's never been a better time to take ownership for what you can control!

Book your place now NOW.

I look forward to seeing you there!

P.S. There are limited places available. We’ve had a HUGE response already! Do not miss out - REGISTER YOUR SEAT NOW REGISTER HERE  - and join me to discover how to build wealth, IMMEDIATELY GET CONTROL of your money and learn how you can become FINANCIALLY FREE in 28 days using my S.M.A.R.T MONEY FORMULA!

#inflation #creditcard #debt #savemoney #money #wealth #freetraining #wealthaccelerator #gasprices #oil #oilprices #ukrainewar #russia

Elon Musk Bids To Buy Twitter for $40 billion

Elon Musk Bids To Buy Twitter for $40 billion

The controversial Tesla boss has offered $54 a share valuing Twitter at $40 billion.

Musk, who refused a seat on the board after becoming Twitter’s largest shareholder earlier this month, said he is the right person to “unlock” the social media platform’s “extraordinary potential”.

As the share price jumped 5%, he warned that he would have to “reconsider” his stake in the company if his bid was refused.

The billionaire has taken Tesla from start-up to the world’s most valuable car maker.

See video version - https://youtu.be/NcZztHe9qzs

Trouble ahead as consumer prices reach highest level since 1992

“Over 36 countries depend on Russia or Ukraine for half their wheat imports”

Antonio Guterres, UN Secretary General

In a broadcast this week, the UN Secretary General warned of rising poverty and added:

·        Wheat up 30%

·        Oil up 60%

·        Natural Gas up 50%

·        Fertiliser up 100%

These essential commodities affect all our daily lives and have risen in price far above the published inflation rate.

Official CPI inflation in the UK is now at 7% pa and, with commodity prices soaring, could reach double digits before the year end.

Prices are going up at the fastest rate for 30 years when the UK was in recession and the property market was stagnant.

Pay rises are falling behind against the cost of living, which means people have less money to spend on luxuries after paying for essentials.

Businesses are facing the dark prospect of higher costs and lower income.

Savers are seeing the value of their capital eroded by inflation – every £100 will buy £93 next year if the rate stays the same.

Economy is in winter season right now but…winters don’t last forever!

·        Buckle down, tighten your belts and get through this, you will survive!

·        Consider spreading the cost on direct debit to cushion the blow.

·        Build your credit lines and watch your credit rating like a hawk.

·        Earn more cash by doing part-time jobs or a side-line business.

·        Bulk buy non-perishable consumer goods and food as a hedge against inflation.

Watch my ‘5 Inflation-Busting Tips’  for money saving ideas to help you through this. -https://youtu.be/2jZCO4V7uX0

Make the most of your money and resources and learn how to get control and manage your finances.

Consider investing in real assets which tend to hold their value and act as a hedge during times of high inflation.

Assets like property, stock and shares and gold have long been held as a long-term inflation hedge.

Remember, you are not alone. Get help, take advice, and use debt counselling services like Citizens Advice if you are having trouble.

Can you take proactive steps to increase your wealth?

Do people get rich during recessions and depressions?

The answer is yes!

To help you get through this and come out stronger at the other end I am offering subscribers a Free Wealth Discovery Accelerator Call.  -  https://calendly.com/charleskelly/wealth-accelerator-discovery-call

I will personally speak to you to help you accelerate your wealth building journey. Click HERE to schedule a call with me. 

#inflation #creditcard #debt #savemoney #money #wealth #freetraining #wealthaccelerator #gasprices #oil #oilprices #ukrainewar #russia

UK house prises continue to rise due to a shortage of family homes, the ...

UK house prises continue to rise due to a shortage of family homes, the Halifax reports

Despite the worst recession since the second world war, the price of the average home in the UK has rocketed by £43,577 since the start of the first lockdown two years ago, the Halifax has said.

The UK’s biggest mortgage lender, part of Lloyds Banking Group, said the 18.2% rise increased the cost of an average home to £282,753.

Buyers seeking more space saw a 21% rise in the price of detached homes compared with a 11% rise in flat prices over the same period.

Higher mortgage rates will start to reduce buyer affordability and the amount people can borrow, which may dampen prices.

Increased living costs will inevitably affect how much first-time buyers can save, borrow and spend on a property.

As we enter the traditional springtime buyer activity season, estate agents are already reporting continued demand and a shortage of larger family houses, which means sellers can obtained higher prices.

Funeral plan provider goes bust – what do you now if you have a prepaid plan?

Following the recent utility providers bankruptcies, another inflation-led disaster is brewing in the funeral industry. Safe Hands, a UK ‘prepaid funeral plan’ provider, has collapsed into administration, leaving thousands of customers worried about what to do now, plus many others concerned that other companies will follow suit amid soaring costs and inflation.

The latest scandal follows Financial Conduct Authority (FCA) belated announcement that it will start regulating firms that provide and arrange prepaid funeral plans from 29 July this year – shutting the door after the horse has bolted.

After this date, should a funeral plan provider fail to meet the FCA requirements, they will not be allowed to sell plans or carry out funerals. Ironically, this could have the effect of pushing more firms into bankruptcy.

Prepaid funeral plans are constantly advertised on daytime TV encouraging people to pay in advance for a future funeral.

But if the firms get their sums wrong or the cost of providing the funeral rises sharply, as it is right now, they could fail to meet their obligations.

For this reason, it is safer to stick with nationally known reputable companies that you are confident will be around for many years to come.

Insurance vs Prepaid Funeral Plans

The other way of providing for future funeral costs is the traditional method of taking out insurance which pays out on your death. Whilst the sum is guaranteed by regulated insurers, the amount you have insured your life for may or may not be sufficient to cover the cost of a funeral at least you know that it will be paid out.

Personally, I have far more confidence in insurance companies, like Legal and General and Sun Life, that have been around in some cases for over a hundred years than a funeral plan provider.

Insurance companies are heavily regulated and employ actuaries to calculated liabilities years into the future. They also have reserves which can see them through the bad times like world wars, recessions and depressions.

Funerals can easily cost in excess of £5,000 excluding the burial plot, but the price of everything has soared in the last year due to inflation and material shortages.   

Safe Hands, Dignity Funerals Limited will provide existing customers with funeral care arrangements until 20 April 2022, and customers should contact the customer services team on 0800 640 9928. There is no confirmed plan in place after 20 April.

Customers can make claims as creditors in the administration process, as the company does not have sufficient funds to be to issue any refunds or meet its obligations, and existing contracts are considered as “cancelled” – just like that. Safe Hands customers will be contacted by post with details of how to make a claim.

Customers are unlikely to get much out of the administrators after they have paid debts and collected their hefty fees, however, you paid for any part of your funeral plan by credit card, you may be able to claim under Section 75 of the Consumer Credit Act 1974.

Customers should cancel their direct debits/standing orders with immediate effect and try to retrieve recent payments under the DDM guarantee. Watch out for the vulture scam callers.

Should you be called by someone claiming to be from Safe Hands Plans, FRP Advisory or any other company claiming to be involved in the administration, hang up and call the freephone helpline of the administrators (Monday to Friday 9am-5pm) on 0800 640 9928 or email safehands@frpadvisory.com.

Worryingly, six funeral plan providers have not even applied for authorisation

See the FCA website to find a published list detailing which firms have yet to apply for authorisation, as well as those who are transferring their books to other providers.

There are six companies who have not yet applied for authorisation are:

·        Fox Milton and Co Ltd trading as Unique Funeral Plans

·        The Independent Funeral Partnership – this is part of Memoria Ltd, which has submitted an application. Memoria Ltd trades as Low-Cost Funeral Limited and Affordable Funerals. The Independent Funeral Partnership is in the process of potentially acquiring another provider that has already submitted its application to the FCA.

The FCA is encouraging anyone thinking of buying a prepaid funeral plan to avoid doing so from one of these four companies, until they have clarified whether they intend to apply for FCA authorisation:

·        Iberian Funeral Plans

·        Not For Profit Funeral Plans

·        PS Cremations Funeral Planning Limited

·        Sovereign Lifecare

If you already have a funeral plan with one of these providers, you should get in touch with them as soon as possible to find out your options.

There are 15 firms transferring plans to other providers and each of these will be contacting their existing customers in due course.  Check if your funeral plan is with one of these companies, and get in touch with your current provider for more information.

There are a further two firms who have withdrawn their applications. However, both Eternal Peace Funeral Plans Ltd and Aura Life Limited have confirmed they plan to resubmit their applications to the FCA.

If your provider does not get authorised by the FCA you have no protection from the FSCS should your funeral plan provider go into administration before 29 July, or if it has its FCA application refused.

The FCA is working with funeral plan providers to ensure customers’ plans are transferred to another provider before 29 July, if the company isn’t likely to receive authorisation.

In the meantime, customers will have greater protection when taking out a prepaid funeral plan on or after 29 July this year.

At very least, make sure the provider is registered with the Funeral Planning Authority, which provides a form of non-compulsory self-regulation, which means providers that sign up have to adhere to “certain rules” and a “code of practice”.

Source: Clair Casalis, MSE.

Other Financial News

NI tax rises kick in, most employers and employees will pay an extra 1.25p in the pound, but lower paid will pay less due to recent threshold changes in Rishi Sunak’s budget.

Economic winter

The economy is in winter, but winters are tough but they never last forever. Like the farmer who prepares for the next season’s work, now is the time get ready and come out even stronger when the recession ends.

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

To help you get through this and come out stronger at the other end I am offering subscribers a Free Wealth Discovery Accelerator Call. 

I will personally speak to you to help you accelerate your wealth building journey. Click HERE to schedule a call with me. 

 

#money #business #stockmarket #property #foodprices #freetraining #financialfreedom #inflation #moneytraining #makemoney #savemoney #limitingbeliefs #economy

Gas utility bills could soar 700% higher this year - quick message on in...

Gas utility bills could be 700% higher this year - quick message on inflation

Prices of everything is going through the roof and people are worried as millions feel the pinch. But worrying will only make things unless you take action.

Gas prices will down to a sensible level

Economy is in winter season right now but…

Winters don’t last forever!

Buckle down, tighten your belts and get through this, you will survive!

Consider spreading the cost on direct debit to cushion the blow.

Build your credit lines and watch your credit rating like a hawk.

Watch my ‘5 Inflation-Busting Tips’  for money saving ideas to help you through this. -https://youtu.be/2jZCO4V7uX0

Make the most of your money and resources and learn how to get control and manage your finances.

Remember, you are not alone. Get help, take advice, and use debt counselling services like Citizens Advice if you are having trouble.

Can you take proactive steps to increase your wealth?

Do people get rich during recessions and depressions?

The answer is yes!

To help you get through this and come out stronger at the other end I am offering subscribers a Free Wealth Discovery Accelerator Call.  -  https://calendly.com/charleskelly/wealth-accelerator-discovery-call

I will personally speak to you to help you accelerate your wealth building journey. Click HERE to schedule a call with me.