FINANCIAL ADVICE
have to make the decision to save every month but set up a regular payment that means I don’t have to think about it again. My parents used to sit me down to write a budget planner: what I earn, what I HAVE to spend, and what else I spend on top. I hadn’t done this for a while, feeling pretty smug about how financially savvy I was. Martin Bellingham – Metfriendly’s Membership Support Director – challenged me to use Metfriendly’s budget planner before writing this article. If I am honest, I am horrified at how much money I spend every month on, er, nothing. Not really nothing, of course, but things that I have nothing to show for the spend or that I only got fleeting pleasure from. As a consequence, I have cut down on my takeaway coffees and visits to TK Maxx and have increased my payments into both of my Pots and my children’s Junior ISAs. Have a go with the budget planner yourself, but be prepared to be surprised:
www.resources.metfriendly.org.uk/ download-your-free-budget-planner. Make sure you focus on identifying what expenses you REALLY need to pay first and so you have a clear view of what is left. Many UK taxpayers are on the wrong
tax code so make sure you understand your payslip at:
www.resources.metfriendly.org.uk/all- you-need-to-know-about-the-police- payslip or attend one of our webinars to get a better understanding. As well as understanding the pay slip, know where you are on the police pay scales – Metfriendly’s guide to police pay is available here at:
www.resources.metfriendly.org.uk/your- guide-to-police-pay-scales and will help to give you a better understanding of your future income levels whilst also detailing some of the additional allowances available. Many in the police family miss benefits
that they are entitled to – it’s worth checking regularly – see:
www.gov.uk/benefits-calculators for some relevant links. Once you have established clarity over
your income and spending you then will have a better view of your current financial circumstances (BB4). While my parents’ advice WAS (and still is) good, life is different to how it was for them. Pay, tax, benefits – even eating at work – are all much more
49 | POLICE | OCTOBER | 2023
complicated than they used to be, and not understanding them can cost money. Even supermarket meal deals, which seem to be a great way of saving money, are REALLY expensive ways of buying a sandwich, snack and drink; and while getting a free coffee for every 10 you buy sounds great, I worked out that getting my two free coffees a month meant I was spending over £60pm at Caffe Nero. That is now £25pm each extra into my kids’ Junior ISAs and still one bought coffee a week for me. The Rainy Day Pot helps you deal with the smaller stuff that life throws at you;
“The Rainy Day Pot helps you deal with the smaller stuff that life throws at you; insurance helps with the big stuff.”
insurance helps with the big stuff. It can be tempting to reduce protection when money is tight, whether it is reducing car insurance to third party only, cancelling life insurance or critical illness policies, it is not a decision to be taken lightly. Although this will save a few pounds each month it can often lead to severe financial hardship should “the worst happen” (BB5) and you are no longer covered. Losing a source of income or having to pay significant costs to replace lost/damaged items can really make a big impact on a family’s finances. For your Dream Pot, consider savings
that reward long-term planning, like the plans that we offer that pay annual and final bonuses, and make sure you are using whatever the Government gives you – i.e. the tax free ISA and, if you are under aged 40, look at the Lifetime ISA. We are very proud to be the only police- focussed financial company to offer the Lifetime ISA (LISA). If you are lucky enough to be under 40, the Government will chip in 25% of anything you put in, up to £4000 pa. If you take your money out for anything other than what the Government designed the plan for (first house purchase up to £450k or anything after you are aged 60) you will lose the Government top-up, but if can leave it in, it not only gives you free government money, but earns bonuses too. I know many of you
reading this will be interested but may not
have funds available to take advantage of this – all I can say is we know many of our members have had conversations with parents/grandparents who love the idea of helping the next generation as well as getting all that free money from the Government. As I said at the beginning of this, I
am proud of all Metfriendly does for police family finances. We are still very connected to the vision of our founders 130 years ago to make sure that we, as a member-owned organisation, continue to support financial understanding in police families.
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