Martin Lewis

Martin’s Blog…

Hi, welcome to my Blog, while the site’s articles have all the key MoneySaving info; this is my space to muse on a wider collection of topics; life, money, being in the media and more. Feel free to read or ignore!


Martin Lewis, Money Saving Expert.

Archive for February, 2007

A day in the life of…. well me… Martin Lewis


Tuesday February 27th, 2007

Thought it would be worth jotting down a typical day at the moment. Partly for me so I can remember, for posterity, what it was like.

Got up at 8.15. Read the papers (the site/me were on front page of Telegraph and in the Indie, so wanted to see what was said)

By 9am was on the computer checking and replying to e-mails, the Forum and the site in general

9.45 The GM-TV car picked me up to take me to the studio

9.50 Had a phone chat with Tax Tony about the MSE charity and other outstanding issues

10.05 Got a call from a couple of newspapers for quick comments

10.30 Arrived at LK today studio, went through a briefing with Camilla the producer about what I’d say about water bills and checked my props, said hello to Lorraine and Dr. Hilary

10.45 Had my make-up put on by David the make-up chap, who asked me about the cheapest wireless broadband which I explained as we did it (everyone at TV studios always does, they ask all the experts, it’s a perk of the job, I don’t mind it - it means my make-up is always done well)

11.05 On screen doing the interview with Lorraine

11.15 Waiting for the car to take me to the office, chatting with the LK Today models about money and such things

11.20 Car arrives. I call MSE Towers to see what’s going on and if I’m needed. It’s the day we finalise the weekly email so we’re always massively busy on Tuesdays. They tell me a journalist from the Mirror wants to interview me for a feature

11.25 Do the interview about bank charge reclaiming during the half hour trip back to MSE towers. After that I had ten minutes left, the driver had been listening, and wanted to talk about bank charges. He’d seen me on Channel 4 news debating with John Snow which he said was “two tigers ripping into each other”, and I must admit, I liked that! Judging by his accent, I think he’s probably originally from Nigeria and boy did he know his stuff, and I have to say his questions about bank charges were more incisive and technical than many of the journalists who’ve questioned me.

11.55 Arrive back. Check e-mails again - had 104 since I first checked this morning, try and go through them as talking with the team about the e-mail.

12.15 Sit down with MSE Dan to go through the email contents. It’s generally built up over the week, each time I think of or spot something, I email it to a special email address, and then whoever on the team is on ‘tip duty’ compiles it as one e-mail - as part of that they also lay it out, check links, accuracy check, add the chat tips. However, Tuesday is my first main review of the put together e-mail; so I go through it, alter what I’ve written, ask for info to be found, change the order, cross out things I’ve changed my mind on. The e-mail is all about shades of light and dark; I try to mix hardcore money stuff, with fun bargains, try to mix detailed articles with quick chat tips - the aim being that in the top five things, everyone will find something new and useful.

At the moment, I’m training MSE Dan so he can take the process further along without me needing to see it on busy days. It’s interesting for me to do this, as until now I’ve always done it instinctively, yet by needing to explain it, I’m starting to codify my editorial decisions. For example, he asks me “why are you putting the note about Lloyds TSB adding a £35 charge to the ‘ones not to miss section’ normally the ‘negative stories’ are kept for the less important ‘more moneysaving’ section.

It’s a very good question, and one that helps me explain how I order the tip. My answer is “the key to lloyds is essentially we’re saying ‘ditch and switch’ in order to avoid the £35 fee, therefore it actually saves people money so it needs to go higher up, if it was just ‘avoid Lloyds card’ then we’re not actually saving money, but so many people have the card – it’s a positive money saving piece.”

12.45 Back to the office to answer a few emails

13.15 Go grab a quick lunch from the MSE Tower’s office complex restaurant/bar, am starving and so get a quick pasta lunch which I eat while on my lap-top replying.

13.45 There’s a ‘chair massage’ in one side of the restaurant, Emma who does it, is a MoneySaver and she’s been nagging me for four months to come and have one. Today I actually can grab 15 minutes so I go and do so. Boy was it a good idea, my back was in knots and she sorted it – 15 mins well spent.

14.00 A chap from US public radio comes to interview me about bank charges

14.15 I have a phone call booked with the producer of the Wright Stuff, to discuss the expert slot I’m doing on Thursday.

14.30 I move back to the bar area so I can concentrate, write this blog then carry on with writing my column for this week’s Sunday Times

That’s where I’m up to… remaining on the agenda today, is an interview for the Big Issue, two more chats with newspaper journalists, a phone meeting with my agent, filming the podcast, three site articles to get done to where I want them to be, and anything else that pops up. I will probably leave MSE Towers around 8, go home, have dinner with the MSG, watch telly for an hour. Then back on the computer to wrap up the days emails and anything else that needs doing before tomorrow for another 90 minutes before bed.

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1,000,000 receiving the email…. now what?


Tuesday February 27th, 2007

On Saturday morning at 9.33am, the millionth person joined the site’s email list. It’s an incredible achievement and I’m slightly gobsmacked by it - it happened to also coincide with the site’s fourth birthday (read about how the site started). I can’t thank enough everyone who’s told people about the site.

I remember when we hit 100,000 (30 July 2004) that had always been my goal, but then I decided to think big and aim for a million. 1 million I always thought, meant the collective consumer impact of this site actually could start to challenge the resources and impact of corporate Britain. Well I think perhaps that was right, the campaigns for bank charges and council tax cashback both hit in their millions, 2.5 million people used the site in January and February is looking similar even though its a shorter month.

Yet, as I mentioned to the MSG on Saturday, I actually felt a little depressed, I’m now not sure what the target should be. I’m very numbers driven, as I’ve discussed in a past blog I am obsessed by looking at the email list graph. Now I don’t really know what to do. The next obvious target is 10,000,000 yet actually i believe that’s beyond the capacity of any website, as its simply too high a proportion of web adults. So what do I base it on next? Without a number to go for I’m slightly lost, stupid really as I should be over the moon, but slightly nerdy chap I am, I don’t know where to go next. Suggestions welcome

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First meeting of the MSE Charity Trustees


Tuesday February 27th, 2007

We’ve taken the first steps towards getting the MoneySavingExpert charity up and running. We had a rather long meeting about it (Tax Tony is a stickler for getting everything technically right) and we’re now at the stage where everything is ready, charitable status is being sought and we’re looking at how it will work.

The basic idea is that individuals or groups can apply for money three times a year in order to help themselves or the groups to help in education or information about money, debt or consuming. Now let me put that in practical terms.

* If you’re an individual you can get a grant to go on a recognised course which will help you learn about managing money, personal finance and more, provided you can’t afford to pay for it yourself.

* If you’re a group then grants are also available (we’re going through how to best organise that using the CVS scheme at the moment). Some examples, maybe a local debt-free group, or a training course for local schools, or teaching young army leavers how money works in the civvy world once they leave.

As for where the money comes from, well its all part of the site’s charities fund. Part of this is donated from the money the site makes, and the rest comes from the books like Thrifty ways, where I’ve donated the proceeds to the charity. My aim is to put £100,000 in the first year from the site and there will be the ability for site users to donate if they’d like to as well (as my father is to be employed to run it, I’m going to meet his salary, so that it doesn’t come out of the site’s donation, the charity fund or any users donations, but is ring-fenced from me personally).

For me the biggest money problem we have is financial and debt illiteracy, and the counter to this is consumer education and support. When we had the first meeting I realised how much there is to do, but we’re going to get there. And now we’re on the path. Soon the charity will be official and then donations can be taken. More updates as it develops.

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£10 fare and £10 tip. I don’t think so.


Tuesday February 20th, 2007

Yesterday was one of those ‘need to be in seven places at the same time’ days. For one trip I had a mini-cab booked to take me from one place to another. When I checked the fare at the end of the journey, he told me it would cost £10; all I had on me was a £20 note. He looked, told me he had no change, and indicated I get out! So I pointed out I’d given him £20, to which his response was “I don’t have change” and then indicated that therefore the journey was over; he was going to take the £10 and that was it.

I must admit I was flabbergasted, he didn’t try and suggest getting change, didn’t even apologise for the mess we were both in or try and discuss any way of giving me my money back, he just thought I’d relinquish and leave. Obviously I didn’t; I took my £20 back, got him to drive me to the nearest cash machine where I took out a tenner, handed it to him and left.

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Getting a penalty charge while filming about penalty charges


Friday February 16th, 2007

I’ve just been filming a segment of the programme on Bank Charges on reclaiming unlawful penalty charges for ITV1 Tonight next friday night. I was at the Oxo tower in london, which was being used as a back-drop for interviewing a Professor of Banking. When I walked out with the film crew, we got back to the van, which was parked in the pre-organised place, only to see slap bang on the windscreen a ‘penalty charge’ for £100. Oh the irony!

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Bravo HSBC! Top player for two products


Friday February 16th, 2007

It very rarely happens that one bank is top of the table for more than one product. Even more rarely that it’s one of the big high street banks. Yet bravo to HSBC - its got the top paying savings account (for those saving less than £5,000 who’ll rarely withdraw it see Top Savings Accounts) and its got the longest 0% balance transfer deal (see Best Balance Transfers).

This is good to see; HSBC is the UK bank with the biggest profits, in many ways this should mean it has the pockets available to draw in new customers with market leading offers, and it’s great to see it’s using it. Of course this doesn’t mean all its products are good, as I always say “just product by product never bank by bank, branding and loyalty has no place!”. Yet I hope this will be the first of many market leaders to come from HSBC. Bravo!

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Why I was worried about writing an article that can really help people


Tuesday February 13th, 2007

This week I wrote the Bank Charges reclaiming when you’re overdrawn article to run alongside the main bank charges article. The article is a text book solution of how to manipulate the financial system to enable you to reclaim charges even with an overdraft. The problem is the solution, followed without discipline, runs the risk of showing people who may already be in a dangerous situation how to borrow more money and cause themselves further problems.

While of course, the cheap personal loan or cheapest credit card for purchases articles also show people how to borrow, here I put in all the checks and balances; after all as I commonly say, debt isn’t bad, bad debt is bad - there’s nothing wrong with planned, budgeted borrowing that’s as cheap as possible.

Yet here the issue is heightened as in parts it relies on some deliberate financial manipulation. The aim is simple: reclaiming bank charges will often supply enough cash to pay off many people’s overdrafts, yet you run the risk of the account being closed and the debt called in, so there needs to be a way to avoid this, and of course that’s what the article does.

This is something I’ve often faced. This site aims to help a broad church save money. For some financial manipulation will produce benefits, but for others dangers. For many not in debt, finding the cheapest and best value 32″ LCD TV is massive MoneySaving, saving a fortune on what they would’ve spent, yet it runs alongside the debt free wannabe forum where such an expenditure is an anathema.

Overall my aim is to try and provide the information and mix it with some guidance and warnings where appropriate. I always remember getting an email that said “Martin I heard you on the radio saying never, ever, ever spend on a life of balance card, and I read the same in your article and got the card; but now I’ve spent on the card and my debts trapped in as you said it would be, what should I do?”

I won’t reveal the instant thought I had when reading it, and a huge sigh of disappointment that shouting “never, ever, ever, ever” isn’t a big enough warning. Yet ultimately I’m resigned to the fact that a few people won’t listen, they’ll read the article, take the bits they want, and ignore all the caveats and cautions and get it wrong; hopefully they’ll be the minority though.

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Interest rate increases mean the economy is strong not weak


Tuesday February 13th, 2007

The new inflation rate came out this morning, and it’s dropped slightly compared to last month. This reminded me of a common mistake that many people make when they hear interest rates are rising; it’s actually an indication that the economy is too strong. So I thought I’d see if I can manage to do what my A’ level economics teacher never quite managed with me - make interest rate moves understandable; of course to do so I’ve made it very, very basic, but hopefully it’ll help.

Increase Interest Rates

Saving is incentivised. As interest rates are higher, you’re more likely to save money. Saving money takes cash out of the economy as it’s no longer being spent.
Borrowing is discouraged. As interest rates are higher, borrowing is more expensive, so you’re less likely to borrow (including borrowing for a mortgage). When you borrow it means you’ve more money to spend, adding fuel to the economy, so less borrowing means less money is added to the economy.

This is why increasing interest rates is done to slow down the economy, as it means less cash is circulating.

Decrease Interest Rates

Saving is discouraged. As interest rates are lower, you’re less likely to save money. This means you’re more likely to spend cash, helping fuel the economy.
Borrowing is encouraged. As interest rates are lower, borrowing is cheaper, so you’re more likely to do it. When you borrow money, the likelihood is you’ll spend it, again adding fuel to the economy.

This is why interest rate cuts are used to try and stimulate the economy.

Hope this helps, if you’re new to all this, you may also like the How Interest Rates Work article

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Hello Cupcake!


Monday February 12th, 2007

I’ve just discovered one of the hidden (to me anyway) delights near where I live. Walking down Portobello road is the Humming Bird Bakery, a cupcake shop. The MSG took me there, and I was shocked to see a long queue trailing outside. Now I’m normally more of a chocolate than a cake man, so the appeal wasn’t huge; until I saw the massive selection and tried the ‘Red Velvet’ cupcake - apparently it’s famous. It’s made of red vanilla sponge with a hint of coco and then a cream cheese icing. The description doesn’t really conjure the taste well enough - frankly it was fabulous, and while at £1.75, not exactly bargain basement for a little sponge cake - the MSG wanted to treat me on a Sunday afternoon.

If you’re passing by that way (and it’s within your budget) well worth it.

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Can you save me money on drugs?


Tuesday February 6th, 2007

I’ve just been outside MSE Towers filming a quick news clip for an ITV regional programme. As we’re doing it, a man comes sauntering up the street, with a beeny cap on, and starts shouting “narrh, you ain’t filming me for Crimewatch again are ya?…” then he spots me and goes, “ah, I recognise ‘im, he’s the man off the telly who saves you money…. tell ya what mate can you tell me how to get the best deal for me drugs?”

Nuff said.

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How big is MoneySavingExpert.com?


Tuesday February 6th, 2007

I’m often asked how big this site is. And as January 07 was a new record month, I thought it’d be fun to let any other numbers nerds see the figures.

The Site Stats As On 1 Feb 2007

• MoneySavingExpert.com pages were viewed 48 million times during January
• It was visited 5.9 million times during January 07
2.48 million UK users visited the site at least once in January (ie unique users).
922,000 people have opted to receive the weekly email and this is growing by over 2000 a day on average
The Forum has 148,000 members (membership is free of course)who have started 322,000 threads and written 4,010,000 posts. That is equivalent to over 10,000 paperback books (and equivalent to 20 paperback books being written there every day).

And if you want to see the contrast… the Site Stats as at 1 September 2006

• MoneySavingExpert.com pages were viewed 30 million times during August
• It was visited 2.46 million times during August
1.14 million UK users visited the site at least once in August (ie unique users).
670,000 people have opted to receive the weekly email and this is growing by over 1000 a day on average
The Forum has 110,000 members (membership is free of course)who have started 227,000 threads and written 2,718,000 posts. That is equivalent to 6,800 paperback books

The site’s fourth birthday will be next month on the 22nd Feb. 2007; it was set up then for £100! (Read about how it started)

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Council Tax Cashback is bigger than Paris Hilton!


Thursday February 1st, 2007

According to Hitwise, the web data people, on the back of the Council Tax cashback system last week, more people searched for it on the web than Paris Hilton. Thank heavens we get that much traffic without me needing to take my clothes off - then again I have a feeling that would drive people away!

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This website is based on journalistic research. It does not constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research . See Full Terms & Conditions and Privacy Policy (last updated 19.12.06). © Martin Lewis and Martin S Lewis Ltd