GOOGLE is the go-to place for people who want answers to burning questions on almost any subject, including all-important financial questions. The 10 most Googled financial questions give an insight into people’s everyday concerns. Here they are, with some expert answers.
1. HOW TO MAKE MONEY?Anthony Wong, group marketing director at personal finance site MoneyGuru.com, says: “Earn a steady income and spend less than you earn then invest the surplus and profit from any compound interest.”
2. WHAT IS AN APR?APR stands for annual percentage rate and shows how much interest you pay when borrowing money. MoneyComms personal finance specialist Andrew Hagger says: “Personal loan APRs start at around 4 per cent, while major credit cards typically charge 18.9 per cent and store cards up to 29.9 per cent.”
3. HOW TO INVEST?Patrick Connolly, certified financial planner at Chase de Vere, says everyone should have money for a rainy day on easy access: “Once you have covered three to six months of living expenses start investing for the future.” Those willing to take on stock market risk could invest in a low-cost UK tracker such as HSBC All-Share Index or global exchange traded fund Vanguard FTSE All-World ETF.
4. WHAT MORTGAGE SUITS ME?Most mortgage lenders now use detailed affordability criteria, examining earnings and expenses to see how much you can afford to repay each month. London & Country mortgage broker David Hollingworth says: “Resist borrowing to the max and getting overstretched.”
5. SHOULD I PAY OFF MY CREDIT CARD OR SAVE?If you are paying an APR of 18.9 per cent but getting just 1 per cent on cash, the answer is clear, says Anthony Wong at MoneyGuru.com: “Clear your credit card debt and then look to save.”
6. HOW MUCH DO YOUTUBERS MAKE?Video blogging, or “Vlogging”, has made fashion and lifestyle blogger Zoella and others very wealthy, but few can expect such rewards. Wong says: “You can monetise your channel through Google advertisements if your videos are regularly racking up more than 1,000 viewers.”
7. HOW MUCH SHOULD I SPEND ON AN ENGAGEMENT RING?Three months’ salary is the historical rule but do not overdo it, as you will need money for later with the average wedding costing a staggering £27,161, according to Hitched magazine.
8. CAN I SPEND SCOTTISH MONEY IN ENGLAND?Scottish money issued by Bank of Scotland, Clydesdale Bank and Royal Bank of Scotland is legal currency, although English shops are not legally obliged to accept it.
9. DOES MY STUDENT LOAN AFFECT MY CREDIT RATING?Student loans taken out after 1997 do not affect your credit rating. Wong says: “The only way a credit card, loan or mortgage lender will know about your student loan debt is if they directly ask during your application.”
10. WHAT LOAN SHOULD I TAKE?Credit cards are great for everyday spending and you can borrow for free, if you pay off your debt in full every month. A personal loan is ideal for a one-off purchase such as a car or home improvements and gives you the discipline of regular monthly repayments for a set term.