Guide: How to manage the harmful effects of inflation on your wealth

For the last year, inflation has been high. If you’re worried about the effects of the rising cost of living, this guide could help you.

Figures from the Office for National Statistics show, in the 12 months to April 2023, the rate of inflation was 8.7%. This is far above the Bank of England’s target of 2%, and for much of the last year, the rate has been in double digits.

The guide explains why needing to spend more to maintain your lifestyle could affect your long-term plans and how inflation could reduce the value of your assets in real terms.

You can also discover some of the steps you could take to “beat” inflation, including:

  1. Making the most of suitable allowances
  2. Shopping around for the best interest rate
  3. Considering if investing is right for you
  4. Reviewing your budget
  5. Focusing on your long-term plan.

Should you lock in your savings interest rate now?

Over the last 18 months, interest rates have increased and the rate your savings could earn has slowly been rising. However, with some experts predicting they will begin to fall towards the end of the year, should you lock in an interest rate now?

Double-digit inflation figures have led to the Bank of England increasing interest rates

The Bank of England (BoE) has gradually increased its base interest rate since the end of 2021. In November 2021, the base rate was just 0.1%. This meant the cost of borrowing was low, but savers suffered.

After a series of increases, the base rate stood at 4.5% as of May 2023. For savers, this is good news as it provides an opportunity for their savings to work harder.

The steps taken by the BoE are in response to high levels of inflation.

Corporation Tax hike: Here are the essentials business owners need to know

The rate of Corporation Tax your business pays may have changed for the 2023/24 tax year. It could affect your profit margins and long-term plans, so it’s crucial you understand what the new rates could mean for your business.

After a series of announcements and U-turns in 2022, you may not be fully aware of the changes to Corporation Tax.

Last year, former chancellor Kwasi Kwarteng said he was reversing a planned Corporation Tax hike, and would, instead, be slashing the rate. Like many changes announced in the mini-Budget, this was quickly backtracked. With Rishi Sunak as prime minister, the previously announced rise in Corporation Tax went ahead at the start of the 2023/24 tax year.

So, what do the changes mean for businesses?

Corporation Tax rises to 25% for some businesses

While Corporation Tax has increased for the 2023/24 tax year, it isn’t something that will affect all businesses.

5 essential money lessons that could improve your child’s financial independence

Between 12 and 16 June, Young Enterprise runs a national campaign across primary and secondary schools with the aim to give children the skills and knowledge necessary to understand finances to thrive in later life.

Taking place every year since 2009, My Money Week has already taught hundreds of thousands of young people how to budget, save wisely, and manage credit card debt.

My Money Week is the perfect time to teach your children about money and improve their financial literacy.

So, please continue reading to discover five helpful lessons that could improve your children’s financial independence and ensure they’re prepared for anything life throws their way.

1. How to manage their money online

These days, most banking is done digitally, so there’s a good chance that the current generation will primarily manage their finances online.

5 inaccurate expert predictions that prove why you shouldn’t try to time the market

When you look at investment performance with the benefit of hindsight, you may think you could predict how markets will move. Yet, markets are unpredictable and expert forecasts prove how difficult timing the market is.

Every investor has heard the advice “buy low, sell high”. So, it can be tempting to try and guess how investments will perform in the short term to make the most of your money. But history shows us that trying to time the market is impossible.

Even experts who have far more resources at their disposal sometimes get it wrong, so trying to predict the market and economy could mean you miss out. Here are five examples of when expert predictions completely missed their mark.

1. 1929: The market has reached a “permanently high plateau”

Irving Fisher is considered one of America’s greatest mathematical economists.

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