POP Money Club

What is APR and why is it different to the interest rate?

It's simply a way of showing that there are extra costs to borrowing. Fees are usually added to your loan and interest is payable on those fees too.

So if you add up all the interest you'll pay and factor it into to the amount you borrowed you'll come up with the APR. It includes the extra interest on fees but it's expressed as a percentage of the amount you actually borrowed.

That's why its a higher % than the headline interest rate.

Want to learn more about where your money's going? Join us in the facebook group and/or come along to our workshops in Leigh on Sea

If you were listening to BBC Essex this afternoon you will have heard from POP Money Club on the lunchtime feature 'Trading Places'. Don't forget, there are limited spaces in the Pop classroom, so workshops are ticketed events. Discount codes can be found in the group POP Money Club - The Clubhouse so you'll need to join the group to claim.

TAKE-AWAY OF THE DAY - IT'S IMPORTANT TO HAVE FUN!

Have you heard of the 50 / 30 / 20 rule? It's a great rule of thumb if you're just starting out with taking control of your finances, but it's not the law. There are times in life when your earnings aren't enough for your bills to only use 50% of your income. And there are other times when you might be able to save more than 20% of your income for the future.

So, use it as a target by all means, but don't let it put you off. Think of it as an long-term average to keep in mind and adapt it to short-term for your priorities.

If you've done all you can to increase your income and reduce wasted expenditure and you can still only save 5% - that's still going to make it a bit easier on your future self.

But beware reducing your fun budget to zero - if you don't leave room to enjoy your life in the present you will be demotivated and give up entirely. Think of it like going on a diet - if you tell yourself all you're allowed to eat is salad, how long before you cave in and eat a month of calories in a junk food binge?

Some expenses are unexpected and need you to dip into your emergency fund. But most big costs are something we can predict. Is there a way we can make them cost less in the long run by planning ahead in the short term?

Bite-sized lessons are online and in the group. But do you want to learn more? Tickets are available for January's money club in Leigh [🔗link in the comments] and don't forget to grab your discount code in POP Money Club - The Clubhouse

Today in POP Money Club - The Clubhouse we are talking about last week's Pop Quiz. What does inflation actually mean in real life and can we beat it?

Housing is usually our biggest cost. How much control do you have over this expense? Do you make sure to shop around for the best deal? Is it ever worth paying a penalty to leave your fixed rate early? What happens if your circumstances have changed come the end of your fixed rate deal?

It's mortgage week in the clubhouse, so pop in to POP Money Club - The Clubhouse to join the discussion!

Do you want 67% off your first time at a Pop Money Club session in Leigh? January's discount code is going to be shared exclusively with members of POP Money Club - The Clubhouse soon, so make sure you're in the group!

Check out today's post in POP Money Club - The Clubhouse to have a go at the Pop Quiz and join this week's discussion about how much bread you can get for your bread.